Premiers and territorial leaders met in Halifax last week for their annual Council of the Federation (COF) meeting. Among the various issues and initiatives discussed, healthcare, the economy and the COF energy strategy were priority agenda items.

The provinces announced that they will now begin bulk-buying several generic drugs through a national competitive bidding process, initiated by fall 2012. The Premiers also discussed managing chronic disease and the impact of diabetes on the health system.

Premiers are also eager to work with the federal government to strengthen the economy, and have invited the Prime Minister to join the First Ministers' meeting scheduled for this fall. A working group of provincial and territorial Finance Ministers has also been appointed to assess the potential impacts of proposed changes to major fiscal transfers, particularly the Canada Health Transfer.

Premiers are seeking to renew and update the 2007 COF energy strategy. A working group, led by Alberta Premier Alison Redford, will focus on: sustainable energy development strategies that recognize regional strengths and priorities, and respects provincial, territorial and legislative jurisdiction over natural resources; an integrated approach to climate change; reducing greenhouse gas emissions; and, managing the transition to a lower carbon economy. Premier Christy Clark has indicated that BC will not participate in a national energy strategy until the province's five economic and environmental considerations for heavy oil pipeline projects are met.

Last week, Premier Christy Clark outlined five requirements that must be met for the province to consider the construction and operation of heavy oil pipelines within its borders:

1. Completion of the environmental review process;
2. World-leading marine oil spill prevention, response and recovery systems for BC's coastline;
3. World-leading practices for land oil spill prevention, response and recovery systems;
4. Ensuring Aboriginal and treaty rights are addressed; and,
5. Distribution of fiscal and economic benefits that reflects the degree and nature of risk of the pipelines

BC Finance Minister Hon. Kevin Falcon has released the 2011-2012 Public Accounts, which indicate that the province concluded the fiscal year with a smaller deficit (1.84 billion) than forecasted in the third quarter. As such, the government is on track to return to a balanced budget in 2013-2014.

In 2011, the provincial economy grew 2.9 per cent. This figure is higher than the national average (2.6 per cent) and third among provinces. Total revenue increased by $1.05 billion in 2011-2012.

This weekly report produced for the BC Chamber of Commerce by Fleishman-Hillard.  While every effort has been made to ensure the accuracy of the information included in this publication as of the date of issue, events and government policies are subject to frequent change.  Therefore, the BC Chamber of Commerce and Fleishman-Hillard cannot assume any responsibility for actions taken solely or principally on the basis on the information contained herein.