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Commission on the Reform of Ontario's Public Services

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460<br />

CHART 20.6 CHT Payments to Ontario under<br />

Different Growth Scenarios<br />

$ Milli<strong>on</strong>s<br />

25,000<br />

20,000<br />

15,000<br />

10,000<br />

5,000<br />

0<br />

2011–12 2013–14 2015–16 2017–18 2019–20 2021–22 2023–24<br />

Source: Ontario Ministry <strong>of</strong> Finance.<br />

Growth at 6%<br />

Growth at GDP<br />

Growth at 3%<br />

Negotiati<strong>on</strong>s for <strong>the</strong> Canada-European Uni<strong>on</strong> Free Trade Agreement (CETA)<br />

The outcome <strong>of</strong> <strong>the</strong> negotiati<strong>on</strong>s for a comprehensive free trade agreement with <strong>the</strong> European Uni<strong>on</strong> could have significant impact <strong>on</strong><br />

<strong>the</strong> cost <strong>of</strong> prescripti<strong>on</strong> drugs in Ontario. A key negotiating point, <strong>the</strong> extensi<strong>on</strong> <strong>of</strong> Canadian patent protecti<strong>on</strong>s for pharmaceutical drugs<br />

to European standards, could cost Ontario taxpayers up to $1.2 billi<strong>on</strong> annually ($551 milli<strong>on</strong> for <strong>the</strong> Ontario government and<br />

$672 milli<strong>on</strong> for <strong>the</strong> private sector), thus wiping out gains from recent drug reforms. The province should work with <strong>the</strong> federal<br />

government to ensure that a CETA does not undermine Ontario’s interest in expanding <strong>the</strong> use <strong>of</strong> generic drugs.<br />

Aside from <strong>the</strong> major transfers, 7 <strong>the</strong> federal government has made no commitment to renew<br />

any o<strong>the</strong>r expiring transfer. These transfers support health, labour-market training and<br />

infrastructure in additi<strong>on</strong> to o<strong>the</strong>r vital public services that could o<strong>the</strong>rwise be at risk.<br />

7 Major transfers include Equalizati<strong>on</strong>, Canada Health Transfer and Canada Social Transfer.

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