SOMBA K'E/YELLOWKNIFE
Premier Bob McLeod says GNWT services could face cuts to pay for healthcare if a new deal with Ottawa can't be reached.

Bob McLeod: Premier says the territory may have to decide to make cuts to other programs to fund healthcare if a deal with Ottawa can't be reached.

"I guess a decision will have to be made whether we take money from other programs to pay for healthcare," McLeod said in an interview Dec. 21.

Under an agreement reached in 2004, the federal government had increased the Canada Health Transfer to the provinces and territories annually by six per cent. But beginning in April, that's set to drop to a minimum of three per cent, or in line with gross domestic product, whichever is higher.

The Conservative government announced the planned reduction in the rate of increases in 2011, and the Liberal government has kept that plan, though premiers wanted a better arrangement. The funding is based on population, something McLeod has said also should change.

Territorial and provincial leaders were in Ottawa on Dec. 19 to try and reach a better deal but left without success.

"We were hoping that we would have been able to get a deal, that there would have been enough feasibility so that we could all sign on," McLeod said. "I guess it was not meant to be. They saw it as a take it or leave it situation. It was very difficult to make a decision on the next 10 years of health spending in the time that we had."

McLeod said he would prefer a single national accord versus individual deals with provinces and territories.

"We've looked at it and we've done that in the past," he said. "Right now we believe we're better served by sticking with all the provinces and territories."

The day after McLeod spoke to News/North, New Brunswick became the first of three provinces to sign individual deals last month with Ottawa. New Brunswick was followed by Nova Scotia and Newfoundland and Labrador, breaking the united front. In a news release, the New Brunswick government stated provinces were concerned the federal offer of annual 3.5 per cent increases was inferior.

Despite that, McLeod's stance remains unchanged, stated cabinet spokesperson Andrew Livingstone in an e-mail on Jan. 3.

The premier has called for premiers to meet again to discuss the issue.

What does the territory want? McLeod didn't provide a specific figure.

"We want to see more funding," McLeod said. "We feel that our healthcare spending is unsustainable and that we need a health accord that would allow us to continue to improve our health services and healthcare delivery as well as deal with priorities such as home care and mental health as well."

According to Finance Canada, the territory will receive $45 million in Canada Health Transfer funds in the 2017-18 fiscal year, up $1 million from this fiscal year and $24 million in 2008-09.

Spending on the territory's Department of Health and Social Services has risen from $309.8 million in 2008-09 to $414 million in 2016-17. The department, as the name suggests, includes more services than just healthcare, though.