September 2, 2014 – BC Chamber Public Affairs Update

Internal trade between the provinces and territories was a major topic of discussion. Premier Christy Clark, Alberta Premier Dave Hancock and Saskatchewan Premier Brad Wall announced a plan to work together to bring down internal trade barriers through their New West Partnership. Western Premiers are hoping that the deal will act as a model for other regions of Canada. Wall highlighted a number of inefficiencies in the system, including the need for first-aid kit manufacturers to comply with 10 different sets of regulations in order to operate across the country. Further, he noted that that companies outside Ontario face a 10 per cent premium if they want to bid on procurement in that province.

The provinces and territories are seeking more federal funds to be dedicated toward health care and infrastructure. In regard to health care, they are calling on the federal government to set up an ‘aging innovation fund’ to help pay for increasing costs. They have highlighted what they view as a fiscal imbalance between Ottawa and the provinces. Although the federal government is contributing to health care funding, Premier Ghiz stated that this funding is not keeping pace with changing demographics and aging populations, which are having significant impacts on the provinces. Currently, the federal government provides the provinces an annual six per cent increase in health care funding, which is guaranteed until 2016-17. After that point, increases will be tied to growth in nominal gross domestic product, a measure of GDP plus inflation – guaranteed at a minimum of three per cent.

The Premiers concluded their annual meeting with an agreement to move forward on a national energy strategy. The provinces and territories have agreed to work together to produce a plan after years of talks, in which B.C. and Quebec were previously resistant. B.C. announced support for the initiative last fall; Quebec support stemmed largely from the election of a federalist government last April.

• implement a bid protest mechanism by November 2014; and
• review exceptions to determine if there are other possible improvements to liberalize trade, particularly in the area of occupational health and safety by March 31, 2015.

“While exceptions can be important in areas like occupational health and safety, it makes sense to review these from time to time to harmonize those that create unnecessary barriers to trade,” said Premier Christy Clark.  “For example, if we can all adopt the highest standard among our jurisdictions for things like first aid kits that will make trade across the region easier.”

The New West Partnership has undertaken significant work to make it easier for businesses to operate across the region by harmonizing trucking rules and regulations, creating a single window for business registration, and ensuring consistent rules across the three provinces.

Premiers noted the federal government’s interest in internal trade and expressed hope that the federal government will come to the table with as much ambition regarding federal barriers as premiers have in the New West.

This weekly report produced for the BC Chamber of Commerce by Fleishman-Hillard.  While every effort has been made to ensure the accuracy of the information included in this publication as of the date of issue, events and government policies are subject to frequent change.  Therefore, the BC Chamber of Commerce and Fleishman-Hillard cannot assume any responsibility for actions taken solely or principally on the basis on the information contained herein.