Thank you, Mr. Chair, for the opportunity to talk about the important issue before us today.
I would still like to explain to my colleagues that this is an emergency situation, but we also know how urgent it is to properly fund health care systems. The federal government has a role to play in this regard. The initial agreement, which dates back to the 1960s and 1970s, provided that the federal government would cover 50% of the costs of the health care systems of the provinces and Quebec. Currently, that contribution is about 22% to 24%. As we see, there is an imbalance.
I checked, and I remind my colleagues that the Government of Manitoba, which is currently in the midst of a crisis, says that the federal government pays about 20% of the costs of its health care system. Including indirect transfers for certain programs, I round that up to 22%.
The real problem is that, for years, the federal government has claimed to be a great defender of the health care system, while Quebec and the provinces are speaking out about a fundamental problem: Ottawa's funding no longer meets the system's real needs.
I would like to explain to my colleagues and the people listening to us that there was a major turning point under the Harper government in 2011. It decided to reduce health care transfers, particularly those made through the Canada health transfer, which used to automatically increase by 6% per year.
In 2011, the Conservative government decided that, starting in 2017, this formula would be replaced by an increase related to average growth in nominal gross domestic product over three years, with a guaranteed floor of 3%. In other words, the government was funding a fixed, predictable growth of 6%, but it has moved to a slower growth tied to the economy.
You understand that this is one of the things that has an impact on health care systems and makes it harder for Manitoba, the other Canadian provinces and Quebec, in particular, to deal with the various crises.
When Justin Trudeau's government came to power in 2015, it had a chance to go back to the old formula, but it chose to maintain the one that the Conservative government had put in place. We now see that the Conservatives and the Liberals have done the same thing when it comes to funding health transfers.
We have continued to speak out on this issue. The provinces told us that a direct cut was visible and concerned a single budget line. You don't have to be a public finance expert to understand that. The problem, yes, is the current crisis. However, we also have to be able to deal with it. The federal government has a role to play, but we are up against its inaction, or even its gradual and structural underfunding.
I stand in solidarity with all health care workers and those affected by the crisis. Transfers have been going down in recent years, but the real costs of the health care system are skyrocketing. There is the aging population, inflation, staff shortages, increasing wages, rising drug and medical technology prices, mental health issues, addictions, home care, overflowing emergency rooms and public health crises, including HIV.
The numbers speak for themselves. Health care spending in Canada was nearly $400 billion in 2025. That's a lot of money. Expenditure growth was about 6% in 2023, 6.1% in 2024 and 4.2% in 2025. All of this shows that the current federal formula limits the growth of health transfers to much lower levels, since it is linked to nominal gross domestic product.
That is why Quebec and all the provinces asked the Trudeau government, as part of a united front at the Council of the Federation, to permanently increase the federal contribution to 35% of health care system costs. Unfortunately, that request was denied. It represented an additional $28 billion per year, approximately, with no federal strings attached.
The deal that was proposed by the Liberal government at the time was more like $200 billion over 10 years. However, it did not reach the necessary percentage. The transfers represented about 20% to 22% of health care costs and were increased to 24% of health care costs, which is a far cry from the 35% Quebec and all the provinces are calling for. In other words, Ottawa has not fixed the problem. There is a fundamental imbalance, which has been criticized for years by Quebec and all the provinces, with real-life consequences across the country.
Let me explain this clearly to people, because I am convinced that Manitoba and other provinces would be in a better position to deal with the various crises, but these provinces are unfortunately underfunded relative to their important responsibility to provide health services.
I've talked to a lot of health care people and meet with them regularly. Hospitals are under pressure. There are waiting lists, there is a staff shortage and access to doctors is difficult. We're seeing more and more mental health problems, and it's even very hard to get an appointment with a psychologist. There are also addiction issues.
Community organizations are on the front lines, and they are doing an incredible job. I commend them and thank them from the bottom of my heart. However, these organizations are vulnerable. There are health crises, such as the one we recently experienced, and the situation gets harder and harder to manage.
What I want to mention to my colleagues is that, in provinces like Manitoba, the HIV crisis is an example of the impact of a constantly stressed network. The problem is not a lack of will, but a lack of capacity. Until the provinces receive a share of funding from the federal government that actually keeps pace with the growing needs, it will be harder and harder for them to deal with these crises.
The crux of the issue is quite simple. We know the situation. The federal government announces billions of dollars, keeps holding press conferences and strategizing, but still refuses to take on its share of the funding. This is not a luxury. It's about taking care of people, saving lives and making sure people are healthy.
If there is one priority, I think it is that. I see taking care of people as a responsibility. According to my political beliefs, we have to take care of vulnerable people and those experiencing health problems, whether temporary or permanent. I think a sustainable health care system requires better funding.
Again, this is not a dramatic cut that the government made overnight. It's been a gradual withdrawal, with the real-life result that health care systems across the country are increasingly fragile.
In conclusion, I understand that difficult choices have to be made and that resources are not unlimited. However, the federal budget contains the largest deficit in Canadian history. We're talking about $78 billion here. I can appreciate that it ended up being reduced to about $66 billion and change. However, there is no increase in health transfers. There is no extra help for workers in the sector to improve their working conditions and enable them to deal with crises like HIV.
I'll draw a parallel. I think a lot of people will understand this very well. The government found $82 billion over five years for national defence spending. They were able to find that money, but not the money to improve health care systems, to take care of people and to save lives. I thought it was important to point that out.
I find that the government is currently completely out of touch with the needs of the people. Health care is a priority, and I don't think we're on the right track to strengthen health care systems and take care of people.
Thank you, Mr. Chair.
