The Liberal Party was far happier, not to mention popular, under the leadership of Pierre Pettigrew. The former minister of international trade had seemingly united a deeply divided party following years of infighting, garnered a political peace with Brian Tobin, won the ensuing election campaign on his relatively left-wing platform, had taken Gary Filmon’s seat and had dispatched the Tories. All was well in the Liberal war room. But the campaign was over and the Liberals had to turn their attention back to governing. But what first? The party platform had included a variety of big ticket items, including ratifying Same-Sex Marriage, increased funding and reform to human resources and healthcare, a new National Childcare Benefit program, EI changes, free-trade deals, aggressive of softwood lumber, balance budget. Liberal Party President Stephen LeDrew conceded to reporters following the election that it would most likely take more than a single mandate to deliver on every single promise made in the party platform. Many within the Liberal caucus were privately worried that the Prime Minister’s vision was too vast, and instead should focus on the country’s finances. Officials within the Prime Minister’s Office were split into two differing camps, one arguing that the government focus on healthcare as it’s first major policy proposal, which would require a First Ministers’ Conference, and Same-Sex Marriage, which faced significant hurdles in both chambers of parliament and from within the Liberal Party itself, most notably former leadership candidate Tom Wappel. Once the Tories picked their new leader, there was a chance that the issue could reenergize the disheartened party ahead of 2004. As a compromise, it was decided that the government would focus on building on good will and the budget within their first year rather than tackle a major issue. After all, the federal government had to build, rebuild, and in some cases buy relationships with the provinces if they were to make any significant headway on healthcare.
The first year of the Pettigrew government went as many expected. There were the odd scandals, one or two resignations from cabinet, and accusations that the government was out of touch. But such problems plagued every government. Despite the slow growth in the economy, the Liberal’s budget offered increased spending, including transfer payments to the Atlantic provinces and spending on healthcare. Such moves were criticized by interim Tory leader Kim Campbell as being irresponsible and detrimental to the government’s pledge of balancing the budget. But while pundits and economists agreed that the budget did little in this regard, pundits noted that increased funding to the provinces would potentially warm relationships between Ottawa and her provincial counterparts. Despite the federal Liberal’s strong poll numbers and majority in the House of Commons, their provincial counterparts and potential allies had suffered countless defeats. Ujjal Dosanjh had fallen to Gordon Campbell out in British Columbia, King Ralph ruled in Alberta, Brian Pallister governed in Manitoba, Elwin Hermanson had taken the reigns in Saskatchewan, Mike Harris was still the top boss in Ontario, former Tory leader Jean Charest dominated Quebec, Bernard Lord had won a landslide victory in New Brunswick, John Hamm held a majority in Nova Scotia, Pat Binns was immensely popular in Prince Edward Island, and Loyola Sullivan had managed to win re-election in Newfoundland. Only in the Yukon was there a Liberal government, and it seemed on course to lose come 2002 to the right leaning Yukon Party. Some within the PMO suggested the Prime Minister wait to call his first First Ministers’ Conference until 2003 in the hopes that some of the provincial governments would change hands. Unfortunately, that was too close to the next election for the Prime Minister’s liking. He had already spent a year avoiding controversial decisions, and it would only be a matter of time before Canadians grew bored of a do-nothing government. Besides, offering more money for healthcare was popular across party lines. Phone calls were made to the capitals of each province and the three-day meeting of Canada’s Premier’s was scheduled for September 8, 2001 in Ottawa.
Many if not all of the Premiers were encouraged by the invitation and the focus on healthcare. Under the previous Rock government their calls for discussion were typically heard but not acted upon. Ontario Premier Mike Harris also drew the ire of the government when he ran ads denouncing Ottawa’s inadequate healthcare funding and the arrogance of the then-Prime Minister, whom he suggested had no plan or interest in dealing with the provincial governments. In 1999 the Rock government pledged $2.1 billion for healthcare over a period of four years, but the Ontario government threatened to withdraw its entire share before that period, stressing the importance of reform. However, with the election of Pierre Pettigrew, Harris took a more conciliatory, wait-and-see approach. At their meeting the Prime Minister broadly spoke of his vision for the country and its reliance on the relationship between the federal and provincial governments. The term “teamwork” became an almost catchphrase, to the point it received ridicule by the likes of This Hour Has 22 Minutes and a handful of journalists. Still, the approach seemed to work. After a forty-five-minute meeting alone with Pettigrew and Health Minister Jane Stewart, Manitoba Premier Brian Pallister suggested that the provinces and Ottawa would likely find common ground on a deal. Still, with the federal government still three years away from their balanced-budget targets, economists warned that the time was not right to increase healthcare funding, and if the government pushed ahead with such action it would mean cuts in other departments like defence or transport.
Unfortunately for the Prime Minister, Mike Harris was done holding his tongue. First the government conceded to Harris’ demand for independent experts audit proposed new federal and provincial healthcare report cards, rather than let Ottawa do it themselves. There was also the matter of the amount of funding that the Prime Minister was willing to commit. Rather than $2.5 billion, the provinces wanted a figure around several billion dollars. Ottawa countered that such funding would require a number of conditions, including new national standards for delivery of primary and home care, in addition to the original report card proposal. Ontario would accept national standards set by Ottawa, just so long as the model used was that implemented by the government of Canada’s largest province. Harris even suggested dropping the report card proposal altogether, arguing that such a committee of experts could be manhandled by the federal government. There was also the matter of Quebec. Long suspicious of the federal government, Quebec was more than willing to back an agreement that gave more power and oversight to the provinces rather than allow the federal government dictate terms. If Ontario and Quebec could agree on a counter approach, Pettigrew’s dream of having the federal government implement a new healthcare reforms would dry up. The Prime Minister attempted to pull the Atlantic provinces from Ontario and Quebec’s grip, going as far as meeting with each Premier individually. Eventually the Prime Minister was forced to deliver an ultimatum, namely that those who signed onto the agreement proposed by Ottawa, $3 billion in funding complete with federal oversight over standards and a report card would get cash, and those who walked away would face political disaster. Eventually a compromise was struck that incorporated some of the proposals pushed by both Ontario and Quebec, specifically in reducing the federal government’s role in regulating healthcare.
There was also the touchy matter of Kyoto. Most Premiers, in particular Ralph Klein and Loyola Sullivan, were either against Kyoto or wanted the government to delay ratifying the agreement in parliament. Citing that discussions on the deal had begun in the early-to-mid 90s, Prime Minister Pettigrew refused to postpone ratification. The First Ministers’ Conference was dealing with healthcare, not Kyoto. The environment would be discussed at some future date. Besides, polling suggested an overwhelming majority of Canadians supported ratification. Unless the agreement was altered with consideration for each province’s specifications. Some even floated the notion of rejecting the healthcare agreement in protest against the federal governments refusal to discuss the issue. But no one realistically expected the provincial premiers to turn down federal money under any circumstances. Kyoto would have to be discussed another day.
Although not without his bruises, most considered the conference a success for Pettigrew. Having only been Prime Minister for almost two years, he had managed to forge a concrete agreement with Premiers with double the political experience. Although, some government insiders privately credited the success to Health Minister Jane Stewart, who had notably accompanied the Prime Minister to most of his meetings at the conference, and had been described by some Premiers as the detail-oriented negotiator compared to Pettigrew’s broader arguments over his vision. Yet this success had even forced the Premier’s to consider Jean Charest’s proposal of forming a Council of the Federation, to create a unified block to discuss issues with the federal government, rather than be divided and conquered. Still, further healthcare reforms would be required, but the Prime Minister was already interested in the next big issue on his campaign platform; Same-Sex Marriage. The sooner a bill was implemented the quicker it would become less of an issue come the next election. Unfortunately for Pettigrew and the Liberals, events were transpiring which would dramatically alter their agenda, and that of the entire global community.