Premiers have 'productive' talks with PM

Some premiers said a meeting with Prime Minister Stephen Harper Friday in Ottawa to discuss the economy was productive, but no concrete commitments were made.

"I know everyone tonight is looking for the miracle solution," said New Brunswick Premier Shawn Graham, who currently chairs the Council of the Federation, which represents all provinces. He called the meeting a "productive dialogue."

"We had a very good discussion. We went around the table, discussing, identifying the issues and some of the solutions and some of the things that we think we should be pursuing," Quebec Premier Jean Charest said. "So in that respect it's a positive discussion.

"I guess we'll have to wait and see."

The leaders gathered for a four-hour meeting over dinner at 24 Sussex Drive, the prime minister's residence. But it ended with no announcement or plans for a formal session on the economy.

B.C.'s Gordon Campbell said it was good opportunity to hear the premiers' economic suggestions.

"What happens between now and the next time we meet to drive this agenda forward" is the important part, he said.

Manitoba Premier Gary Doer said "we didn't expect a concrete announcement coming out of the meeting."

But Ontario Premier Dalton McGuinty suggested he was disappointed with the results.

"I came here in search of a partner…We are at our best when we work together," said McGuinty. "I did not find that partner here today."

McGuinty said Harper showed no interest in reforming Employment Insurance, nor in strategic partnerships with specific businesses.

Harper did not speak to reporters but issued a statement that said he was pleased with the  constructive discussions that took place and looks forward to working with all governments to ensure economic success for all Canadians.

It was the second time that Harper met with all the provincial leaders at the same time since his Conservative government was elected in 2006.

Harper had put Senate reform on the agenda, but Doer said they spent "five minutes" on the topic.

Newfoundland and Labrador Premier Danny Williams had been pessimistic about the evening discussion. Williams, who has had a highly combative relationship with the prime minister, had said his focus would be a deal to reimburse the $10 billion the province expects to lose in equalization payments over the next 13 or 14 years.

Before the meeting, he said a chat over dinner was no way to make real progress on serious issues.

"To have to come here to be told it's a certain time, it's going to be over supper, officials aren't allowed in, there's no preparation going on between the governments and the bureaucracies and we're gonna be out by the Friday night movie, how can you get anything done?" Williams said Friday morning in Ottawa.   

Graham told CBC News Friday morning that all the premiers are interested in moving as quickly as possible to offset any downturns in the economy.

Graham said he would be pressing the prime minister regarding corporate income tax rates and New Brunswick's efforts to position itself as an energy hub for the eastern seaboard.

Further aid for provinces unlikely

At a background briefing Thursday, finance department officials gave indications that further support for the provinces and territories was unlikely, saying the country's bank account is almost empty.

The meeting came a day after Harper stood next to Graham at a New Brunswick lumber mill to announce a $1-billion economic aid package to help battered industries such as forestry and manufacturing.

Harper said the government will establish a community development trust fund, which will be used to support worker retraining and skills development, and community transition.

Each province will get $10 million in base funding, while territories will each receive $3 million, Harper said. The remaining money in the trust will be divided among the provinces and territories on a per capita basis.

The premiers of Ontario and Quebec, along with union leaders, panned the plan, saying it did not go far enough and was tantamount to blackmailing parties into supporting the next federal budget.

McGuinty and Charest said the package was only a fraction of what their own governments have provided to the manufacturing sector alone in response to the crisis.