Premiers press for aid, reform

By PETER ZIMONJIC, NATIONAL BUREAU, The Winnipeg Sun

The chummy atmosphere that defined the previous first ministers meeting seems to have deteriorated as the premiers gird for battle with the federal government.

The provincial and territorial leaders arrived in Ottawa last night to give their final input to the federal government before it announces a $30-billion to $40-billion stimulus package in the Jan. 27 budget.

Each province is seeking financial aid for ailing industries, tax and employment insurance reforms, as well as infrastructure money to create jobs and boost the shrinking economy.

Outraged

Quebec Premier Jean Charest kicked off the meetings by telling reporters of his outrage at the federal government's decision to tinker with transfer payments.

"We've just gone through a 10-year period of debate on the fiscal imbalance ... and now they announce they're going to change it," quipped Charest. "This is exactly the wrong time for the federal government to do this."

Manitoba Premier Gary Doer wants smart tax cuts, interprovincial trade barriers eliminated, labour mobility guaranteed between provinces and reforms to retirement savings plans, pensions and the EI system.

"We don't want to lower taxes where we're already lower than the United States, but in areas where we're higher we think we should target it," said Doer. "Tax reductions shouldn't be PR exercises -- they should be targeted for areas that do make a difference."

Last night, the prime minister invited the premiers and aboriginal leaders to a working dinner.

Today, Harper and the premiers will begin with an economic briefing from Bank of Canada governor Mark Carney, followed by meetings with Finance Minister Jim Flaherty, Human Resources and Skills Development Minister Diane Finley, and Infrastructure Minister John Baird.