"Mr. Martin recently promised to `go to the wall' to protect medicare," said Dr. Armstrong. "I think he fell short of the mark." In the budget, tabled in the House of Commons on March 6, Mr. Martin established a cash floor for health and social programs but will continue to reduce cash transfers to provinces until 1999, when they will remain stable for three years.
"This can only result in further destabilization of the system, greater uncertainty and more pain," said Dr. Armstrong. "Less money from the federal government means less health care for Canadians." The CMA is also concerned that budget documents released to the public and media refer to an inflated $11-billion cash floor. This figure includes a personal income tax (PIT) points agreement offered to the provinces in which the federal government transfers tax points instead of cash for health, postsecondary education and Canada Assistance Plan programs. Only Quebec agreed to the PIT option when it was first offered in 1965 and the agreement is part of the $11-billion cash floor. However, Mr. Martin did not include additional tax points transfered to all provinces in 1977.
The CMA also claims the federal government is sending Canadians the message that health care is not as important to the federal fiscal agenda. "This is further underlined by Mr. Martin's failure to raise tobacco taxes in this budget, a measure that would have shown some concern for the health of the public, especially our youth," said Dr. Armstrong. "A golden opportunity to put health first has just gone up in smoke."
CMA News: April 1996