Thank you.
Part 6, division 3 proposes amendments to the Federal-Provincial Fiscal Arrangements Act in two areas. One, it proposes to renew the equalization and territorial formula financing program for the next five years. Second, it proposes to legislate a new reimbursement policy for deductions made from the Canada health transfer with respect to the extra billing and user-charge provisions of the Canada Health Act.
Following consultations with provincial and territorial governments, the government is proposing to renew the equalization and territorial formula financing for another five-year period, beginning April 1, 2019. Technical changes will be made to improve the accuracy and efficiency of the calculation of entitlements. The technical changes themselves will be implemented through regulatory amendments.
The government is also proposing to make transition payments to Yukon and the Northwest Territories over the renewal period to offset the projected negative impacts of the changes in territorial formula financing entitlements.
With respect to the reimbursement policy, this proposal recommends that the Federal-Provincial Fiscal Arrangements Act be amended to permit reimbursement of amounts that were previously deducted, as directed by the Minister of Health, when the provinces or territories can't transfer payment due to violations of the Canada Health Act provisions for extra billing and user fees. This legislative amendment will enable the Minister of Health to direct the reimbursement of such a deduction when a province or territory has taken corrective action to align their public health system with the principles of the Canada Health Act. It creates a fiscal incentive that recognizes jurisdictions that have taken the necessary steps to address issues of non-compliance.
My colleague and I will be pleased to answer any questions.