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Minister Morneau Announces Measures to Improve Territorial Formula Financing
As part of the renewed spirit of collaboration with provinces and territories, Finance Minister Bill Morneau today announced that the Government of Canada will introduce legislative amendments to improve the stability and predictability of federal Territorial Formula Financing payments and address the impact of a recent Statistics Canada data revision. This will provide an additional $67 million to the territories compared to the amounts calculated in December 2015.
The proposed changes will enable the Government to recalculate 2016–17 Territorial Formula Financing payments on the basis of the proposed legislative amendments, and help better support the territories in their financial planning by providing more predictability and stability.
"At the December meeting of Canada’s Finance Ministers, we promised to work with the territorial governments to identify options for addressing the impact of recent data revisions on territorial financial planning. Working with the three governments, and thanks to the tireless advocacy of the Members of Parliament for all three territories, I am pleased to bring forward a solution that will not only help mitigate the effects of this data revision in the immediate term; it will also improve and strengthen the program over the long term by making Territorial Formula Financing payments more stable and predictable going forward."
- Bill Morneau, Minister of Finance
"Today's proposed fix to the Territorial Formula Financing program will provide the North with more financial resources in the short term, and the fiscal stability and predictability we will need to grow and share in the prosperity that our great land and people hold."
- Michael McLeod, MP for the Northwest Territories
"This is an important step for Canada’s North and I appreciate the leadership shown by Minister Morneau in addressing this issue in a constructive and collaborative way. These positive changes demonstrate a commitment, not only to the future of Canada’s North, but also towards a principled and productive relationship with provincial and territorial governments."
-Hunter Tootoo, MP for Nunavut and Minister of Fisheries, Oceans and the Canadian Coast Guard
"I am proud to be a part of a Government that is dedicated to investing in Canada’s North as it grows and prospers while taking on more power and responsibility for its future."
- Larry Bagnell, MP for Yukon
- Territorial Formula Financing (TFF) provides the territorial governments with an unconditional annual grant to enable them to provide a range of public services comparable to those offered by provincial governments at comparable levels of taxation.
- The federal government will provide over $3.5 billion in funding to the territories in 2016–17 through TFF.
- TFF accounts for a significant share of territorial budgets: in 2015–16, it represented 70, 68 and 80 per cent of total territorial revenues for Yukon, the Northwest Territories and Nunavut respectively.
Annie Donolo Press Secretary Office of the Minister of Finance 613-369-5696
Jack Aubry Media Relations Department of Finance 613-369-4000
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