Canada’s federal system was designed to ensure a clear division of powers between the federal and provincial governments, as outlined in the Constitution. However, over the decades, the federal government has increasingly encroached on areas of provincial jurisdiction. The Trudeau government has exacerbated this dysfunctional situation by creating three new, unconstitutional social programs to subsidize daycare, dental care, and medications.
Canada’s federal system has devolved into “imperial federalism”—a top-down model where Ottawa routinely violates the constitutional division of powers, imposes costly national programs, and redistributes wealth between regions to buy political loyalty. This centralization of power undermines the autonomy of provinces and territories, breeds resentment, and fuels separatist movements, particularly in Quebec and Alberta.
A federation works best when governments respect their constitutional limits and focus on their core responsibilities. Provinces are better equipped to understand and address the specific needs of their populations, but federal interference stifles innovation and prevents them from doing so effectively. Meanwhile, Ottawa has been unable to fulfill its own responsibilities adequately. This has led to bickering over funding, bureaucratic inefficiencies, and a lack of accountability at all levels of government.
A People's Party government will:
Abolish all federal programs and regulations intruding on areas of provincial responsibility. This will allow provinces to adopt innovative policies tailored to their unique circumstances, free from federal interference, while emphasizing cooperation in shared jurisdictions.
Repeal the Canada Health Act and replace the Canada Health Transfer cash payments with a permanent transfer of tax points of equivalent value. Provinces will be fully responsible for health care funding and management, and fully accountable to their citizens for the results (see policy on Health Care).
Substantially reduce total equalization payments to benefit only the neediest provinces, while providing them with the right incentives to lessen their dependence on federal money. The new equalization formula should respect our Constitution and be fair for citizens of all provinces (see policy on Equalization).