Education Welfare Dept: In 1995, Liberal Finance Minister Paul Martin confronted a crippling federal deficit. To fight it, he cut transfer payments to the provinces. The provinces howled, but then eventually realized that if Ottawa didn't send as much money, then it also didn't have as much say. From that time on, responsibility for health care, education, welfare, roads, housing – just about anything that matters in day-to-day life – has been mostly a provincial or municipal affair. People don't watch what goes on in Ottawa because the federal government doesn't do anything any more, according to Globe And Mail. When the financial crisis hit in autumn of 2008, it wasn't to Queen's Park or Edmonton that voters turned their eyes. The federal government still holds all the big fiscal levers. It takes most of your tax money, it looks after your pensions though the provinces have a say , it manages inflation and interest rates through the Bank of Canada . Ottawa and the provinces are about to enter protracted negotiations over health care and equalization because the federal government is still a major player in funding them. 1. Ottawa's irrelevant But: Actually, the federal government does plenty, and could do more. As
reported in the news.
@t health care education, globe and mail
26.3.11