Constitutional Reform by Stealth

This paper explores the financing arrangement that will form the basis of the newly-announced Canada Health and Social Transfer (CHST).  The cash portion of this arrangement is declining rapidly and will disappear very early in the next century.  The precise dates vary depending upon the assumptions used in calculating the new financing formula.  The paper argues that the CHST should be designed as a cash-only transfer, fully indexed to GNP with provision for counter-cyclical adjustment of a portion of the transfer for welfare.  This is the only way to ensure the federal ability to enforce the conditions of the Canada Health Act and any conditions that may be negotiated for welfare and social services under the CHST.  The fact that the CHST will result in such a dramatic change in the federal role with no public consultation or discussion represents a clear example of social policy by stealth.  Moreover, the resulting fundamental reform in federal-provincial arrangements will effectively create constitutional change by stealth.

ISBN – 1-895796-37-7