Monthly Archives: November 2015

Is Canada finally getting a national pharmacare program?

Pharmacare health minister Jane philpott Trudeua

Health Minister Jane Philpott has been tasked by Prime Minister Trudeau with finding solutions to Canada’s prescription drug affordability problem.

Momentum has been building for a national pharmacare program since a June meeting of provincial health ministers.

Canada’s new Health Minister, Jane Philpott, says she plans to be in touch with her provincial counterparts to begin the preliminary work of establishing a new health accord which, according to some health experts, could include at least the broad outlines of a national pharmacare program. The 2004 Health Accord expired March 31st, 2014 after the Harper government refused to renegotiate it.

So what can Canadians expect from their new federal government when it comes to making prescription drugs more affordable?

In contrast to other policy areas, the Liberal election platform planks on pharmacare were strikingly vague.  According to the platform:

“We will improve access to necessary prescription medications. We will join provincial and territorial governments to negotiate better prices for prescription medications and to buy them in bulk – reducing the cost governments pay to purchase drugs.”

Not too many clues here as to where the new Trudeau government might end up on pharmacare. That said, Ontario’s Liberal government  has been a strong provincial advocate for an aggressive approach to drug coverage and was extremely critical of the Harper government’s hands-off approach to the issue. Given the close ties between the two Liberal governments, most observers expect the new federal government to be active in future national pharmacare talks.

That next health ministers meeting is expected to take place on January 21-22, 2016 in Vancouver and federal health Minster Philpott has said she will be attending. Continue reading

Bay Street and the Hydro One Sale

Of the many options available to the Ontario government to finance its $130 billion infrastructure plan, selling 60% of Hydro One is pretty much the worst.

Of the many options available to the Ontario government to finance its $130 billion infrastructure plan, selling 60% of Hydro One is pretty much the worst.

It is becoming increasingly clear that the Ontario government is making a serious mistake in its plan to sell off a majority interest in Hydro One. According to a report from Ontario’s new Financial Accountability Officer, the province will be in even worse financial shape after the planned sale of 60 per cent of Hydro One than it is now.

Even former TD Bank CEO Ed Clark, the driving force behind the sale, readily admits that there will be significant forgone revenue from the sale of Hydro One down the road. But he, like Ontario Premier Kathleen Wynne, dismisses this on the grounds that the  partial sale of Hydro One is needed to help pay for Ontario’s plan to spend $130.5 billion over 10 years on transit, bridges, highways and other infrastructure.

Unfortunately, while it is undoubtedly true that the planned investments in Ontario infrastructure are badly needed, it is also true that of the various options available to the province to pay for its ten-year, $130.5 billion infrastructure investment, selling 60% of Hydro One is pretty much the worst option.

So why is the Ontario government selling off one if its most valuable assets in what seems like a clear cut case of “short-term gain for long-term pain”?

The sell-off of Hydro One is yet another chapter in the ongoing saga of an Ontario government mesmerized by private sector promises that a healthy dose of private sector, market “discipline” will somehow translate into the public good.

The names are familiar: eHealth, Ornge, the Mississauga and Oakville private gas plants, and public-private hospitals and transit – to name just a few.

The problem? Each and everyone turned out to be a train wreck of truly monumental proportions.

And now Hydro One. Continue reading