‘e19(1) Government Canata Goweement MM Siero ‘Gmc Steavarconai ge SECRET 61550115E InfoXpress: 1753227 Fawr Michael Wernick Date: Subject Onet ‘Memorandum for the Prime Minister REPLY TO ONTARIO PREMIER, KATHLEEN WYNNE 7 oo” Patrick Tange Jan Burney Frangois Daigle va: Stephen Lucadlily Les Lin Water wen 20208 Your Signatur Riedel information 2 For Decision Material forthe P.M Pour Beeson Documents poor ie Pa s CONSULTATION, > yg E BCP OTHER / AUTRE ios 20 2 8 w © Leg. Couns. 1 Dem. Ref 3 FADP 5 ss REMARKS: REMARQUES: 3 pistRieur s 2 lon McCowan 8 1 David MeGovern 1 Les Linklater = © ohn Hannaford = © Matthew Mendelsohn = a DRAFTING OFFICER: REDACTEUR : Graham/Demers/Tanguy/pe Canada Ww 000076H GIEEONSS 191) July 7, 2016 1:59 PM Gagnon, Danielle Subject: RE: Notes sent to the PM on June 20, 2016 Attachments: Reply to Ontario Premier Kathleen Wynne.doc Voici une petite modification & la lettre de la Pm Wynne. From: Gagnon, Danielle Sent: June 20, 2016 4:07 PM To: ‘Subject: Notes sent to the PM on June 20, 2016 7 Notes 00077Dear Premies: ‘Thank you for your letter of May 30, 2016, offering your government's collaboration to improve the quality of life in Indigenous communities in Ontario. ‘The federal government shares with Ontario the commitment to renew the relationship with Indigenous Peoples by making progress on the issues most important to them. Our Government seeks t6 engage in partnership with Indigenous Peoples to break down the barriers that have kept individuals and communities from reaching their full potential and to create inclusive growth. In your letter, you identify a number of short-term and long-term needs to improve socio-economic conditions in Indigenous communities, in particular in Northern Ontario. 1 agree with you that these issues require strong leadership and collaboration from all levels of government to move forward. Many are the subject of existing collaboration and discussions between officials of the Ontario and federal governments. | fully support finding ways to deepen our partnership with the Ontario government and First Nations, using a coordinated approach to transforming conditions on Ontario reserves. ‘The priorities outlined in your letter share broad alignment with the unprecedented level of investment our Government has proposed to advance the process of ‘The Honourable Kathleen Wynne Premier of Ontario Room 281, Legislative Building Queen’s Park ‘Toronto, Ontario MTA 1A1 000078reconciliation to support Indigenous communities and the aspirations of Indigenous Peoples. Budget 2016 propoxes to invest $8.4 billion over five years to improve the socio-economic conditions of Indigenous Peoples and their communities and bring about transformational change. Our Government is committed to improving the quality of life of Indigenous communities with new investments in quality housing, improved access to early learning and child care, better health, and cultural and recreational infrastructure. Budget 2016 also responds to First Nations infrastructure needs with new investment to support water and ‘wastewater infrastructure, drinking water monitoring and testing, and new funding for the First Nations Infrastructure Fund to support complementary infrastructure such as roads and bridges, energy systems, broadband connectivity, disaster mitigation, and fire protection services. Our Government will also make new investments in child welfare, and to support shelters serving victims of family violence living in First Nations communities. While our Government has been working closely with yours on these issues, both through existing tables and on new initiatives, I share your sense of urgency to make real progress. I was pleased to discuss these matters with you.on June 108, 2016, where we agreed to task Michael Wernick and Steve Orsini to support a well- coordinated, whole-of government approach to finding concrete solutions. Federal ministers and officials are working to look at current and planned federal programs and investments to identify priority areas for collaborative action, Carolyn Bennett, Minister of Indigenous and Northern Affairs has agreed to work with her Ontario counterpart to provide leadership to advance joint action with Indigenous leaders and communities. Twould also like to take this opportunity to thank you for your support for the National Inquiry into Missing and Murdered Indigenous Women and Girls. I know that our Government can continue to count on your support in formally joining in the Inquiry. Iam forwarding, for their information, a copy of our exchange of correspondence to: Minister Bennett; Navdeep Singh Bains, Minister of Innovation, Science and Economic Development; Jody Wilson-Raybould, Minister of Justice and Attorney. General; Jane Philpott, Minister of Health; Mare Gameau, Minister of Transport; James Gordon Carr, Minister of Natural Resources; and Amarjeet Sohi, Minister of Infrastructure. Sincerely, 000078cms osutwton avi dwamaon, «CUR EMS Aaron Tete Cx AsaimeniTne PRIME MINISTER’S CORRESPONDENCE TRANSMITTAL FORM FORMULE D'ACHEMINEMENT DE LA CORRESPONDANCE DU PREMIER MINISTRE ‘Name of Correspondenl/Nom du correspondant: THE HONOURABLE KATHLEEN WYNNE ‘SubjecvObjet: “eS Accession Number/Numéro de référence: 61550115E Route to/Acheminer a: PCO/BCP - CLR O/{ PMo/ceM, Other/Autre: SecretariavSecrétariat CIMS Folder/Dossier de CIMS: 13 SZ 2. Personal & Political /Personnelle et politique oD a —FETR. | ress OfticesBureau des medias B a PCO/BCP-ECU/SCHD o 2 Oo a Action 0 Adviee/Avis 0 Notes Info Copies/ Copies pour information PCO/BCP-CLR 0 | PMo;ceM Other/Awtge: Press Secretary/Secrétaire des médias (Andrée-Lyne Hallé) ‘TO BE COMPLETED BY SECRETARIAT/RESERVE AU SECRETARIAT Refer for reply to/Pour réponse: Outside PCO/Extérieur du BCP. Within PCO/Au BCP. No Reply Required/Aucune réponse nécessaire (0 Other action taken or proposed/Autre mesure prise ou proposée ‘Comments/Commentaires: Date: Signature: ‘Asst. Secretary / Director/ Seerétaire adjoint / Directeur Date Received/Date regue: 2016-06-03, Letter Date /Lettre datée du: 2016-05-30 000080‘The Premier of Ontario La premiére mjnistre dg ‘Ontario torent SiO. eL Ss Legislative Bulding, Queen's Park “Toronto (Ontario) MTA TAT Toronto, Onlario MAA May 30, 2016 The Right Honourable Justin Trudeau Prime Minister Government of Canada Office of the Prime Minister 80 Wellington Street Ottawa, Ontario K1A 002 ' Dear ister Trudeau: Jam writing to confirm my government's commitment to working collaboratively with your government to address both short-term immediate responses to crises like the one we are dealing with in Attawapiskat, and to outline areas where there is an opportunity to address long-term structural challenges that stand in the way of improving the quality of life in Indigenous communities. This commitment to closing the gap in education, housing, child and family services, health care and employment clearly supports reconciliation between indigenous and non-Indigenous people. Reconciliation is more important than ever given the findings and recommendations from Truth and Reconciliation Commission of Canada published last year. Socio-economic conditions are particularly conceming in remote First Nation communities in northern Ontario. A corresponding sense of hopelessness and powerlessness has become prevalent, especially among youth. The recent suicide crisis in Attawapiskat First Nation is a clear reminder of the urgent need to address these issues immediately. Health and Well-being Ontario has committed to address the urgent health care needs in remote First Nations communities and will be making immediate investments to health services and community supports. 00081Our governments need to be ready to work together to quickly mobilize support in the face of potential future crises. | propose that our governments work with First Nation communities to develop an action plan for responding to social emergencies. The action plan should include a formal First Nation-Ontario-Canada protocol reflecting the roles, Tesponsibilities, and anticipated actions of our governments in responding to social crises in remote First Nation communities. Community and Social Infrastructure | want to acknowledge the recent commitments by the federal government to invest in key determinants of health, including infrastructure such as clean water, housing, Temote electrification and roads. We are looking to your government to invest in the infrastructure and services that are required, on-reserve, to address community needs. Specifically, officials from Ontario, working with Indigenous partners, want to sit down with your officials to scope out investments in on-reserve mental health, addictions and healing centres, nursing stations, modemizing equipment, cultural and community facilities for children, youth and families, sustained broadband connectivity and housing supports for seniors, Ontario's developing expertise with models of community hubs could be leveraged to explore efficient and effective ways to structure these types of infrastructure and the services and programs within them, Ontario is also moving ahead with the development of a multi-year plan for reform of the broader income security system. Our approach must also include a dedicated and ‘substantive dialogue with Indigenous partners. Future trilateral discussions respecting the Indian Welfare Agreement are part of a broader discussion about how the right supports can be delivered in the right way to achieve the goals of Indigenous ‘communities. We look forward to your government's participation in these discussions. Housing The 2016 Federal Budget announced $554.3 million over two years to address urgent housing needs on-reserve. Ontario is committed to supporting access to housing for Indigenous families; we have dedicated $44.1 million of the over $800 million contribution of the federal-provincial funding partnership Investment in Affordable Housing to Indigenous households living off reserve. Further, as part of our Long-Term Affordable Housing Strategy Update, we are working with Indigenous partners to develop an Indigenous Housing Strategy. 000082Given its responsibilities on-reserve, we are looking to the federal government to provide adequate funding to respond to the housing needs faced by First Nations. Ontario urges the federal government to take action immediately in First Nation communities in northern Ontario to provide much needed accommodation options for community members and professional service workers. Ontario is prepared to help connect expertise within the broader housing sector in Ontario to work with your government to ‘support the impact of your investments. Connecting Remote Communities to the Grid ‘There are many remote communities in the province that rely on diesel generation to meet their electricity needs. Ontario has identified the connection of up to 21 of these communities to the provincial electricity grid as a priority. The benefits to these communities of replacing dirty diesel generation with cleaner grid-connection include reduced health risks from pollution, improved quality of life, reduced risk of diesel spills, improved community infrastructure, long-term economic development benefits and regional employment and skills development. The Ontario Ministry of Energy is already engaging with officials at Indigenous and Northern Affairs Canada (INAC) to discuss a cost-sharing arrangement for this vital project, and | hope that our governments can reach an agreement by fall of this year to propel this project forward to construction and avoid project delays. | am also encouraged by discussions with INAC that indicate that the connection of Pikangikum First Nation to the electricity grid is a priority for your government. There are also four remote First Nations communities for which it is not economically viable to connect to the grid, but Ontario remains committed to reducing their diesel use by working with these communities to develop innovative, renewable energy solutions to power their development. Ontario has been doing a lot on this front, including funding for renewable generation and microgrid solutions, but federal support is still required to reach final solutions. One specific opportunity is Whitesand First Nation where an innovative wood pellet plant and combined heat and power facilty is being proposed to help provide renewable energy and economic development for the community. Through the Independent Electricity System Operator, we are in the midst of negotiating a Power Purchase Agreement to support the project but the project would benefit from federal support to make it a reality, We look forward to the federal government's commitment and cooperation in helping Femote communities in Ontario to end their dependence on diesel, a commitment that was included in the Vancouver Declaration. eal 000085Child and Family Services Improving outcomes for Indigenous children and youth, including those in care, is an important priority for our government. Through the co-developed Ontario Indigenous Children and Youth Strategy Ontario and Indigenous partners are working together to improve outcomes and advance the well-being of First Nations, Métis, Inuit, and urban Indigenous children and youth across the province through the recognition of jurisdiction and control. ‘We acknowledge the federal government's early response to the recent decision of the Canadian Human Rights Tribunal, and its commitment to reform federal funding for First Nations child and family services and expand its narrow definition of Jordan's Principle. Reconciliation in child and family services will come from Canada working with Ontario and First Nations to transform an out-dated funding mechanism and to ensure that we are prioritizing substantive equality in outcomes for Indigenous children and youth. Early Years and Education | was encouraged to see the federal government's 2016 budget commit $100 million in new funding towards on reserve early learning and child care and $29.4 million for renovations of existing early learning facilities, particularly given that less than half of First Nations have access to licensed child care in their communities. The federal commitment to substantial investments in First Nations elementary and secondary education on reserve, including education infrastructure, is also cause for optimism. In addition to the over $27 million Ontario provides annually for on reserve child care and child and family programs, our government recently announced an additional investment of $25 million over three years to expand access to child and family programs on reserve as part of our government-wide response to the Truth and Reconciliation Commission's calls to action. We look forward to engaging with your officials and our First Nations partners on early years and child care priorities, including funding and infrastructure needs in order to expand access to child care and child and family programs in First Nations communities. While on-reserve education is a federal responsibility, Ontario remains committed to offering expertise to the federal government and First Nations to help improve the quality of education for Indigenous learners. We look forward to exploring opportunities to improve the alignment of our education programs and services, and to better support students as they transition between First Nation/federally operated schools and provincially funded schools. 5 00084Drinking Water | applaud Canada’s commitment to eliminate boil water advisories in five years and that the 2016 federal budget has committed some $2 billion over five years for on-reserve water and wastewater infrastructure across Canada in order to meet this ambitious timeline. As 50 per cent of the drinking water advisories in Canada are located in Ontario First Nation communities and 48 per cent of the population affected has been under a drinking water advisory for more than 10 years, we need to ensure that the funding announced by the federal government is allocated appropriately given the situation for Ontario First Nations. | believe that our personal leadership is required to ensure sustained momentum, and we can share our comprehensive action plan for improving First Nations drinking water. The Province has offered its technical assistance in several areas, including on-site assessments of current water assets, systems feasibility and design, operator training and certification, and source protection watershed planning. | am supportive of this work and look forward to achieving real progress in this area in partnership with First Nations and the Government of Canada Our goal should be to establish a feasible plan over the next five years that would annually see the number of boil water advisories reduced in Ontario, and include tools for ensuring that such circumstances do not return. Addressing existing drinking water advisories was identified as one of the priorities for trilateral collaboration, and First Nations will need to be involved in setting specific targets. Violence Against indigenous Women and Girls Thank you for making a National Inquiry into Missing and Murdered Indigenous Women and Girls one of your first actions upon taking office. You can be confident that Ontario will cooperate as the Inquiry process rolls out. At the second National Roundtable on Missing and Murdered Indigenous Women and Girls in February of this year, | signalled Ontario's commitment to continue to have a leadership role in the development of the pan-Canadian prevention and awareness campaign. | am counting on your support for the development and launch of such a campaign in November of this year. Economie Development Opportunities ‘The Ring of Fire represents a significant regional economic development diver for First Nations communities and for northern Ontario. The Government of Ontario looks to the federal government to, at a minimum, match the $1 billion the Province has committed to the infrastructure for the Ring of Fire. Ontario has previously signalled that this request should be accommodated through the National Infrastructure Component of the Building Canada Program. 16 00085‘To support all of this work, Ontario's Indigenous partners, including Political Territorial Organizations, need the capacity to engage with our governments. Your government needs to invest in creating that capacity to ensure the success of our shared ambitious agenda Remote Northern Airports Ontario's 29 remote northern airports are an essential link for remote First Nations ‘communities for health care, the delivery of goods such as fuel, food and drinking water, and transportation to urban centres and other remote communities. Currently, however, communities are not guaranteed services for medevac flights or other emergencies ‘outside of current limited operating hours. Approximately 63 per cent of the 2,500 air ambulance fiights per year take place after-hours. To increase service levels, an estimated cost of $2.7 million is required to adequately staff northern airports. In order to make progress on the list of proposed actions attached to this letter, lam asking that your government commit to a meeting between our responsible ministers and First Nations leadership within three months to discuss these urgent issues and our collective approach going forward. Ontario's Minister of Aboriginal Affairs, David Zimmer, will be following up with his federal counterparts at Indigenous and Northern Affairs Canada and other federal departments with further details. ‘Yours in partnership, af hee Kathleen Wynne Premier Enclosure c: The Honourable David Zimmer Minister of Aboriginal Affairs ‘The Honourable Carolyn Bennett Minister of Indigenous and Northern Affairs 0086Recommendations for Ontario/Canada/indigenous Partner Collaboration - Ontario and Canada work with First Nations to develop a protocol for responding to social emergencies. . Ontario, Canada and Indigenous partners identify required federal infrastructure investments in on-feserve mental health, addictions and healing centres, nursing stations, cultural and community facilities for children, youth and families, sustained broadband connectivity and housing supports for seniors. Ontario, Canada and First Nations explore the use of community hub models to deliver efficient and effective services/programs on reserve. . Ontario, Canada and Indigenous partners enter into discussions respecting the Indian Welfare Agreement as part of a broader discussion about funding for health and social services in Indigenous communities. As part of this work, and reflecting the recent decision of the Canadian Human Rights Tribunal, develop ‘a new funding relationship to advance the well-being of Indigenous children and youth in Ontario, based on the Ontario Indigenous Children and Youth Strategy ‘co-developed by Ontario and Indigenous partners. The federal government should take immediate action to work collaboratively with First Nations in northern Ontario to provide adequate and affordable accommodation for community members and professional service workers. ‘The Ontario Ministry of Energy and Indigenous and Northern Affairs Canada conclude a cost-sharing arrangement for the connection of up to 21 remote Northern Ontario First Nation communities to the provincial electricity grid by fall 2016. . Canada provide financial support to develop energy supply alternatives like renewable generation and microgrid solutions for four remote First Nations communities in northern Ontario for which it is not economically viable to connect to the grid. |. Ontario, Canada and Indigenous partners develop a plan to expand early years child and family programs on reserve, including increased federal investment in child care facilities. |. Ontario, Canada and First Nations improve the alignment of education programs and services to better support students as they transition between First Nation/federally operated schools and provincially funded schools. 0008710, Ontario, Canada and Indigenous partners establish and implement a feasible plan to annually reduce the number of boil water advisories in Ontario over the next five years. 11.Canada provide funding to support the launch of a pan-Canadian prevention and awareness campaign on violence against Indigenous womenigirls by November 2016. 12. The federal government match the Government of Ontario's $1 billion commitment to fund infrastructure for the Ring of Fire. 13. Canada provide funding to Ontario on an annual basis in the amount of $2.7 million to support the hiring of 27 full-time employees, plus an additional 20 seasonal positions, to increase service levels at remote northern airports in Ontario. 0088Date 2016-06-01 From Premier of Ontario | Premiere ministre de Ontario To Prime Minister/Premier Ministre “Justin. Trudeau@parlge.ca> cc David (MAA) Zimmer Subject ‘Aletter from the Premier of Ontario E Mail Body 000882 eee vous Ci) “The Premier of Ontario Lapramiae mite de rota LE Logit Bubdig, Queen's Pa a tice de tassene ligt, Queen's Pas roto Orato Mat b= ‘ors (omara) MAA May 30, 2016 ‘The Right Honourable Justin Trudeau Prime Minister Government of Canada Office of the Prime Minister 80 Wellington Street Ottawa, Ontario K1A 0A2 fl Dear ister Trudeau: 1am writing to confirm my government's commitment to working collaboratively with your government to address both short-term immediate responses to crises like the one we are dealing with in Attawapiskat, and to outline areas where there is an opportunity to address long-term structural challenges that stand in the way of improving the quality of life in Indigenous communities. This commitment to closing the gap in education, housing, child and family services, health care and employment clearly supports reconciliation between Indigenous and non-Indigenous people. Reconciliation is more important than ever given the findings and recommendations from Truth and Reconciliation Commission of Canada published last year. Socio-economic conditions are particularly concerning in remote First Nation communities in northern Ontario. A corresponding sense of hopelessness and powerlessness has become prevalent, especially among youth. The recent suicide crisis in Attawapiskat First Nation is a clear reminder of the urgent need to address these issues immediately Health and Well-being Ontario has committed to address the urgent health care needs in remote First Nations communities and will be making immediate investments to health services and community supports. 00090Our governments need to be ready to work together to quickly mobilize support in the face of potential future crises. | propose that our governments work with First Nation communities to develop an action plan for responding to social emergencies. The action plan should include a formal First Nation-Ontario-Canada protocol reflecting the roles, responsibilities, and anticipated actions of our governments in responding to social crises in remote First Nation communities. Community and Social Infrastructure | want to acknowledge the recent commitments by the federal government to invest in key determinants of health, including infrastructure such as‘clean water, housing, remote electrification and roads. We are looking to your government to invest in the infrastructure and services that are required, on-reserve, to address community needs. Specifically, officials from Ontario, working with Indigenous partners, want to sit down with your officials to scope out investments in on-teserve mental health, addictions and healing centres, nursing stations, modernizing equipment, cultural and community facilities for children, youth and families, sustained broadband connectivity and housing supports for seniors, Ontario's developing expertise with models of community hubs could be leveraged to explore efficient and effective ways to structure these types of infrastructure and the services and programs within them. Ontario is also moving ahead with the development of a multi-year plan for reform of the broader income security system. Our approach must also include a dedicated and substantive dialogue with Indigenous partners. Future trilateral discussions respecting the Indian Welfare Agreement are part of a broader discussion about how the right supports can be delivered in the right way to achieve the goals of Indigenous communities. We look forward to your government's participation in these discussions. Housing ~ ‘The 2016 Federal Budget announced $554.3 million over two years to address urgent housing needs on-reserve. Ontario is committed to supporting access to housing for Indigenous families; we have dedicated $44.1 million of the over $800 million contribution of the federal-provincial funding partnership Investment in Affordable Housing to Indigenous households living off reserve. Further, as part of our Long-Term Affordable Housing Strategy Update, we are working with Indigenous partners to develop an Indigenous Housing Strategy. 13 00091Given its responsibilities on-reserve, we are looking to the federal government to provide adequate funding to respond to the housing needs faced by First Nations. Ontario urges the federal government to take action immediately in First Nation communities in northern Ontario to provide much needed accommodation options for community members and professional service workers. Ontario is prepared to help connect expertise within the broader housing sector in Ontario to work with your government to support the impact of your investments. Connecting Remote Communities to the Grid There are many remote communitiés in the province that'rely on diesel Gerieration to meet their electricity needs. Ontario has identified the connection of up to 21 of these communities to the provincial electricity grid as a priority. The benefits to these communities of replacing dirty diesel generation with cleaner grid-connection include reduced health risks from pollution, improved quality of life, reduced risk of diesel spills, improved community infrastructure, long-term economic development benefits and regional employment and skills development. The Ontario Ministry of Energy is already engaging with officials at Indigenous and Northern Affairs Canada (INAC) to discuss a cost-sharing arrangement for this vital project, and | hope that our governments can reach an agreement by fall of this year to propel this project forward to construction and avoid project delays. 1am also encouraged by discussions with INAC that indicate that the connection of Pikangikum First Nation to the electricity grid is a priority for your government. There are also four remote First Nations communities for which it is not economically Viable to connect to the grid, but Ontario remains committed to reducing their diesel use by working with these communities to develop innovative, renewable energy solutions to power their development. Ontario has been doing a lot on this front, including funding for renewable generation and microgrid solutions, but federal support is still required to reach final solutions. One specific opportunity is Whitesand First Nation where an innovative wood pellet plant and combined heat and power facility is being proposed to help provide renewable energy and economic development for the community. Through the Independent Electricity System Operator, we are in the midst of negotiating a Power Purchase Agreement to support the project but the project would benefit from federal support to make it a reality. We look forward to the federal government's commitment and cooperation in helping remote communities in Ontario to end their dependence on diesel, a commitment that was included in the Vancouver Declaration. wal 000092Child and Family Services Improving outcomes for Indigenous children and youth, including those in care, is an important priority for our government. Through the co-developed Ontario Indigenous Children and Youth Strategy Ontario and Indigenous partners are working together to improve outcomes and advance the well-being of First Nations, Métis, Inuit, and urban Indigenous children and youth across the province through the recognition of jurisdiction and control. We acknowledge the federal government's early response to the recent decision of the Canadian Human Rights Tribunal, and its commitment to reform federal funding for First Nations child and family services and expand its narrow definition of Jordan’s Principle. Reconciliation in child and family services will come from Canada working with Ontario and First Nations to transform an out-dated funding mechanism and to ensure that we are prioritizing substantive equality in outcomes for Indigenous children and youth Early Years and Education | was encouraged to see the federal government's 2016 budget commit $100 million in new funding towards on reserve early learning and child care and $29.4 million for renovations of existing early learning facilities, particularly given that less than half of First Nations have access to licensed child care in their communities. The federal commitment to substantial investments in First Nations elementary and secondary education on reserve, including education infrastructure, is also cause for optimism. In addition to the over $27 million Ontario provides annually for on reserve child care and child and family programs, our government recently announced an additional investment of $25 million over three years to expand access to child and family programs on reserve as part of our government-wide response to the Truth and Reconciliation Commission's calls to action. We look forward to engaging with your officials and our First Nations partners on early years and child care priorities, including funding and infrastructure needs in order to expand access to child care and child and family programs in First Nations communities. While on-reserve education is a federal responsibility, Ontario remains committed to offering expertise to the federal government and First Nations to help improve the quality of education for Indigenous learners. We look forward to exploring opportunities to improve the alignment of our education programs and services, and to better support students as they transition between First Nation/federally operated schools and provincially funded schools. IS 000093Drinking Water | applaud Canada’s commitment to eliminate boil water advisories in five years and that the 2016 federal budget has committed some $2 billion over five years for on-reserve water and wastewater infrastructure across Canada in order to meet this ambitious timeline. As 50 per cent of the drinking water advisories in Canada are located in Ontario First Nation communities and 48 per cent of the population affected has been under a drinking water advisory for more than 10 years, we need to ensure that the funding announced by the federal government is allocated appropriately given the situation for Ontario First Nations. | believe that our personal leadership is required to ensure sustained momentum, and we can share our comprehensive action plan for improving First Nations drinking water. ‘The Province has offered its technical assistance in several areas, including on-site assessments of current water assets, systems feasibility and design, operator training and certification, and source protection watershed planning. | am supportive of this work and look forward to achieving real progress in this area in partnership with First Nations and the Government of Canada. Our goal should be to establish a feasible plan over the next five years that would annually see the number of boil water advisories reduced in Ontario, and include tools for ensuring that such circumstances do not retum. Addressing existing drinking water advisories was identified as one of the priorities for trilateral collaboration, and First Nations will need to be involved in setting specific targets. Violence Against Indigenous Women and Girls ‘Thank you for making a National Inquiry into Missing and Murdered Indigenous Women and Girls one of your first actions upon taking office. You can be confident that Ontario will cooperate as the Inquiry process rolls out. At the second National Roundtable on Missing and Murdered Indigenous Women and Girls in February of this year, | signalled Ontario's commitment to continue to have a leadership role in the development of the pan-Canadian prevention and awareness campaign. | am counting on your support for the development and launch of such a campaign in November of this year. Economic Development Opportunities ‘The Ring of Fire represents a significant regional economic development driver for First Nations communities and for northern Ontario. The Government of Ontario looks to the federal government to, at a minimum, match the $1 billion the Province has committed to the infrastructure for the Ring of Fire. Ontario has previously signalled that this request should be accommodated through the National Infrastructure Component of the Building Canada Program. 6 00094To support all of this work, Ontario's Indigenous partners, including Political Territorial Organizations, need the capacity to engage with our governments. Your government needs to invest in creating that capacity to ensure the success of our shared ambitious agenda. Remote Norther Airports Ontario's 29 remote northern airports are an essential link for remote First Nations ‘communities for health care, the delivery of goods such as fuel, food and drinking water, and transportation to urban centres and other remote communities. Currently, however, communities ate riot guaranteed services for medevac flights or other emergencies outside of current limited operating hours. Approximately 63 per cent of the 2,500 air ambulance flights per year take place after-hours. To increase service levels, an estimated cost of $2.7 million is required to adequately staff northern airports. In order to make progress on the list of proposed actions attached to this letter, | am asking that your government commit to a meeting between our responsible ministers and First Nations leadership within three months to discuss these urgent issues and our collective approach going forward. Ontario's Minister of Aboriginal Affairs, David Zimmer, will be following up with his federal counterparts at Indigenous and Northern Affairs Canada and other federal departments with further details. Yours in partnership, Kathleen Wynne Premier Enclosure ¢: The Honourable David Zimmer Minister of Aboriginal Affairs The Honourable Carolyn Bennett Minister of Indigenous and Northern Affairs 000098Recommendations for Ontario/Canada/Indigenous Partner Collaboration Ontario and Canada work with First Nations to develop a protocol for responding to social emergencies. Ontario, Canada and Indigenous partners identify required federal infrastructure investments in on-teserve mental health, addictions and healing centres, nursing stations, cultural and community facilities for children, youth and families, sustained broadband connectivity and housing supports for seniors. Ontario, Canada and First Nations explore the use of community hub models to deliver efficient and effective services/programs on reserve. Ontario, Canada and Indigenous partners enter into, discussions respecting the Indian Welfare Agreement as part of a broader discussion about funding for health and social services in Indigenous communities. As part of this work, and reflecting the recent decision of the Canadian Human Rights Tribunal, develop a new funding relationship to advance the well-being of Indigenous children and youth in Ontario, based on the Ontario Indigenous Children and Youth Strategy co-developed by Ontario and Indigenous partners. .. The federal government should take immediate action to work collaboratively with First Nations in northern Ontario to provide adequate and affordable accommodation for community members and professional service workers. . The Ontario Ministry of Energy and Indigenous and Northern Affairs Canada conclude a cost-sharing arrangement for the connection of up to 21 remote Northern Ontario First Nation communities to the provincial electricity grid by fall 2016. . Canada provide financial support to develop energy supply alternatives like renewable generation and microgrid solutions for four remote First Nations ‘communities in northern Ontario for which it is not economically viable to connect to the grid . Ontario, Canada and Indigenous partners develop a plan to expand early years child and family programs on reserve, including increased federal investment in child care facilities. . Ontario, Canada and First Nations improve the alignment of education programs and services to better support students as they transition between First Nation/federally operated schools and provincially funded schools. 00009610. Ontario, Canada and Indigenous partners establish and implement a feasible plan to annually reduce the number of boil water advisories in Ontario over the next five years. 11. Canada provide funding to support the launch of a pan-Canadian prevention and awareness campaign on violence against Indigenous womenigirls by November 2016 12. The federal government match the Government of Ontario's $1 billion commitment to fund infrastructure for the Ring of Fire. 13. Canada provide funding to Ontario on an annual basis in the amount of $2.7 million to support the hiring of 27 full-time employees, plus an additional 20 seasonal positions, to increase service levels at remote northern airports in Ontario. 00097OIL SE Ae Clerk of the Privy Council and Secretary to the Cabinet Greffier du Conseil privé et Secrétaire du Cabinet nawa, Canada KIA OAS SECRET UN 20 2016 MEMORANDUM FOR THE PRIME MINISTER REPLY TO ONTARIO PREMIER KATHLEEN WYNNE (Signature Required) | SUMMARY * On May 30, 2016, Ontario Premier Kathleen Wynne wrote to you proposing a number of priorities for Ontario-Canada collaboration to address structural challenges facing First Nations communities in Ontario (Tab C). In your proposed response (Tab A), you indicate broad agreement on using a whole-of-government approach to better collaborate with Ontario on indigenous issues and note that you will ask Minister Bennett, with her colleagues, to follow up on discussions with her Ontario counterpart. The letter also notes Budget 2016's investments in First Nations communities. ° Transmittal letters to Ministers Bennett, Bains, Philpott, Garneau, Carr, Wilson-Raybould and Sohi are also attached for your signature (Tab B) DH Michael Wemick Attachments Graham/Demers/Tanguy/pc Canada 000098Gis ole. fa be fi eters eer "BEI be i soe Fea uy WT = Pet OCT SELINA Office of the Cle - ALL Prime Minister's ##ce 000098Page 100 is a duplicate est un duplicata‘CANADA PRIME MINISTER » PREMIER MINISTRE Dear Premier: ‘Thank you for your letter of May 30, 2016, offering your government's collaboration to improve the quality of life in Indigenous communities in Ontario, ‘The federal government shares with Ontatio the commitment to renew the relationship with Indigenous Peoples by making progress on the issues most important to them. Our Government secks to engage in partnership with Indigenous Peoples to break down the barriers that have kept individuals and communities from reaching their full potential and to create inclusive growth. In your letter, you identify a number of short-term and long-term needs to improve socio-economic conditions in Indigenous communities, in particular in Northern Ontario. I agree with you that these issues require strong leadership and collaboration from all levels of government to move forward. Many are the subject of existing collaboration and discussions between officials of the Ontario and federal governments. I fully support finding ways to deepen our partnership with the Ontario government and First Nations, using a coordinated approach to transforming conditions on Ontario reserves. ‘The priorities outlined in your letter share broad alignment with the unprecedented level of investment our Government has proposed to advance the process of ‘The Honourable Kathleen Wynne Premier of Ontario Room 281, Legislative Building Queen’s Park Toronto, Ontario MTA 1A1 votoreconciliation to support Indigenous communities and the aspirations of Indigenous Peoples. Budget 2016 proposes to invest $8.4 billion over five years to improve the socio-economic conditions of Indigenous Peoples and their communities and bring about transformational change. Our Government is committed to improving the quality of life of Indigenous communities with new investments in quality housing, improved access to early learning and child care, better health, and cultutal and recreational infrastructure. Budget 2016 also responds to First Nations infrastructure needs with new investment to support water and ‘wastewater infrastructure, drinking water monitoring and testing, and new funding, for the First Nations Infrastructure Fund to support complementary infrastructure such as roads and bridges, enetgy systems, broadband connectivity, disaster mitigation, and fire protection services. Our Government will also make new investments in child welfare, and to support shelters serving victims of family violence living in First Nations communities. While our Government has been working closely with yours on these issues, both through existing tables and on new initiatives, I share your sense of urgency to make real progress, T was pleased to discuss these matters with you on June 10, 2016, where we agreed to task Michael Wernick and Steve Orsini to support a well- coordinated, whole-of- government approach to finding concrete solutions. Federal ‘ministers and officials are working to look at current and planned federal programs and investments to identify priority areas for collaborative action. Carolyn Bennett, Minister of Indigenous and Northern Affairs has agreed to work with her Ontario ‘counterpart to provide leadership to advance joint action with Indigenous leaders and communities. T would also like to take this opportunity to thank you for your support for the National Inquiry into Missing and Murdered Indigenous Women and Giels. I know that our Government can continue to count on your support in formally joining in the Inquiry. Tam forwarding, for their information, a copy of our exchange of correspondence to; Minister Bennett; Navdeep Singh Bains, Minister of Innovation, Science and Economic Development; Jody Wilson-Raybould, Minister of Justice and Attorney General; Jane Philpott, Minister of Health; Marc Garneau, Minister of Transport; James Gordon Catt, Minister of Natural Resources; and Amarjeet Sohi, Minister of Infrastructure. Sincerely, ooot02PRIME MINISTER - PREMIER MINISTRE Dear Dr. Bennett: Tam forwarding, for your information, a copy of my recent exchange of correspondence with the Honourable Kathleen Wynne, Premier of Ontario, regarding collaboration on a number of matters in order to improve the quality of life for First Nations communities in Ontario. Sincerely, ‘The Honourable Carolyn Bennett “Minister of Indigenous and Northern Affairs Room 176, East Block House of Commons Ottawa, Ontario KIA 0A6 00103PRIME MINISTER» PREMIER MINISTRE ‘Dear Mr. Bains: am forwarding, for your information, a copy of my recent exchange of correspondence with the Honourable Kathleen Wynne, Premier of Ontario, regarding collaboration on a number of matters in order to improve the quality of life for First Nations communities in Ontario. Sincerely, ‘The Honourable Navdeep Singh Bains “Minister of Innovation, Science and Economic Development Room 356, Confederation Building House of Commons Ottawa, Ontario KIA 0A6 ooot0s‘CANADA PRIME MINISTER» PREMIER MINISTRE Dear Dr. Philpott: Tam forwarding, for your information, a copy of my recent exchange of correspondence with the Honourable Kathleen Wynne, Premier of Ontario, regarding collaboration on a number of matters in order to improve the quality of life for First Nations communities in Ontario. Sincerely, The Honourable Jane Philpott “Minister of Health. Room 158, Confederation Building House of Commons Ottawa, Ontario KIA 0A6 000105PRIME MINISTER PREMIER MINISTRE ‘Monsieur le Ministre, Je vous fais parvenir, titre d'information, une copie de la correspondance que j’ai récemment échangée avec honorable Kathleen Wynne, premiére ministre de POntario, concernant la collaboration sur plusieurs enjeux dans le but d’améliorer la qualité de vie des communautés des Premiéres Nations en Ontario. Je vous ptie d'agréer, Monsieur le Ministre, expression de mes sentiments les meilleurs. honorable Mare Garneau ‘Ministre des Transports Piéce 458, édifice de la Confédération Chambre des communes Ottawa (Ontario) KIA 0AG 00108CANADA, PRIME MINISTER» PREMIER MINISTRE Dear Mr. Cars: Tam forwarding, for your information, a copy of my recent exchange of correspondence with the Honourable Kathleen Wynne, Premier of Ontario, regarding collaboration on a number of matters in order to improve the quality of life for First Nations communities in Ontatio. Sincerely, ‘The Honourable James Gordon Carr Minister of Natural Resources Room 781, Confederation Building House of Commons Ottawa, Ontario KIA 0A6 oootorPRIME MINISTER» PREMIER MINISTRE Dear Ms. Wilson-Raybould: Tam forwarding, for your information, a copy of my recent exchange of correspondence with the Honourable Kathleen Wynne, Premier of Ontario, regarding collaboration on a number of matters in order to improve the quality of life for First Nations communities in Ontario. Sincerely, ‘The Honourable Jody Wilson-Raybould ‘Minister of Justice and Attorney General of Canada Room 451-5, Centre Block House of Commons Ottawa, Ontario KIA 0AG ooot08PRIME MINISTER» PREMIER MINISTRE Dear Mr. Sobi: Tam forwarding, for your information, a copy of my recent exchange of correspondénce with the Honourable Kathleen Wynne, Premier of Ontario, regarding collaboration on a number of matters in order to improve the quality of life for First Nations communities in Ontario. Sincerely, The Honourable Amerject Sohi ‘Minister of Infrastructure and Communities Room 707, Confederation Building House of Commons Ottawa, Ontario KIA 0AG ooot08! mm The Prater of Ona Ls pene pti tot we Bd. ones Pa fe traci dela dads ran en Cae at ome Tero (aia) WARS | May 30, 2016 The Right Honourable Justin Trudeau Prime Minister Government of Canada | Office of the Prime Minister | 80 Wellington Street Ottawa, Ontario, K1A 0A2 L | Dear ifister Trudeau: hears ment to closing the gap in education, housing, child and family services, |heaith care and employment clearly supports reconciliation between Indigenous and |non-Indigenous people. Reconciliation ig more important than ever given the findings ar yenommendations from Truth and Reconciliation Commission of Canad puoi’ ist year, Health and Wentbeing Palario has committed to address the urgent health care needs in remote First Nations gemmunities and will be making immediate investments to health services and community supports. ooot10face of potential future crises. | propose that our governments work with Free Nation ie ion plan for responding to social emergencies. The action Plan should include a formal First Nation-Ontario-Canada protocol Teflecting the roles, ted actions of our governments in responding to so ‘crises in remote First Nation communities. | Our governments need to be ready to work together to quickly mobilize support in the ‘Community and Social infrastructure Me are looking to your government to invest in the infrastructure and services that are feauired, on-reserve, to address community needs. Specifically. officials ron Ontario, working with Indigenous partners, want to sit down with your officials to scope out investments in on-reserve mental health, additions and healing centres, nursing Stations, modemizing equipment, cutural and community facilties for chitdren, youth 2n4 families, sustained broadband connectivity and housing supports for seniors Qntario's developing expertise with models of community hubs could be leveraged to ielore efficient and effective ways to structure these types of infrastructure ara tne Services and programs within them. towing [The 2016 Federal Budget announced $554.3 milion over two years to address urgent ee eeds on-reserve. Ontario is committed to supporting access to housing for 4 i, b Affordable Housing Strategy Update, we are working with Indigenous partners to develop an indigenous Housing Strategy. ootGiven its responsibilties on-reserve, we are looking tothe federal government to provide |. Gdequate funding to respond to the housing needs faced by First Nations, Onta xe urges | the federal govemment to take action immediately in First Nation communities | northern Ontario to provide much needed accommodation options for community | Gambers and professional service workers. Ontario is prepared to help connect | expertise within the broader. housing sector in Ontario to work with your government to Support the impact of your investments, | Connecting Remote Communities to the Grid Province that rely on diese! generation to Ntified the connection of up to 21 of these lectricity grid as a priority. The benefits to these Communities of replacing dirty diesel generation with cleaner grid connection include reduced health risks from pollution, improved quailty of life, reduced risk of diesel Spills, improved community infrastructure, long-term economic development benefits and regional employment and skills development. [The Ontario Ministry of Energy is already engaging with officals at Indigenous and Norther Affairs Canada (INAC) to discuss a cost-sharing arrangement fer ahs vital Prolect, and | hope that our governments can reach an agreement by fala the year _[o propel this project forward to construction and avoid project delay, pa also encouraged by discussions with INAC that indicate that the connection of |Pikangikum First Nation tothe electricity grid is a priotty for your govern Solutions to power their development. Ontario has been doing a lot on this front, [One specific opportunity is Whitesand First Nation where an innovative wood pellet Plant and combined heat and power faciliy is being proposed to help provide fenewable energy and economic development for the community. Through the chase Agreement to support the project but the project would benefit from federal Support to make it a reality. We look forward to the federal government's commitment and cooperation in helping {Emote communities in Ontario to end their dependence on diesel, a commitmern that Was included in the Vancouver Declaration. el ooots2Farly Years and Education ||was encouraged to see the federal F reamment’s 2016 budget commit $100 mition in ew funding towards on reserve early toa ing and child care and $29.4 million for First Neos Of existing early learning facies: Particularly given that less than half of First Nations have access to licensed cht Care in their communities. The federal fffcials and our First Nations partners on {ONY Yeats and child care priorities, including funding and infrastructure needs in order expand access to child care and child and falnily programs in First Nations commanicse lle on-teserve education is a federal responsiblity, Ontario remains committed to offering expertise to the federal government and First ‘Nations to help improve the Quality of education for Indigenous leamers. We look forward te exploring opportunities is i E oot| Drinking Water | {and look forward to achieving real progress in this area i | and the Government of Canada, | Our geal should be to establish a feasible plan over the next five years that would Violence Against indigenous Women and Gits Thank you for making a National Inquiry into Missing and Murdered Indigenous Women and Girls one of your frst actions upon taking office. You can be confident that Ontario |will cooperate as the Inquiry process rolls out. (Girt Second National Roundtable on Missing and Murdered indigenous Women and [Gils in February of this year. 1 signalled Ontario's commitment to continue to have a Jeadership role in the development of the pan-Canadian Prevention and awareness [Gampaign. | am counting on your support for the development and launch ef sects 2mpaign in November of this year, Fonomic Development Opportunities The Ring of Fire represents a si tions ootRemote Northem Airports (Ontario's 29 remote northern airports are an essential link for remote First Nations sind amaies for health care, the delivery of goods such nt fuel, food and drinking water, 2nd transportation to urban centres and other remote communities. Currently, however, Pateyenies are not guaranteed services for mecca flights or other emergencies utside of current limited operating hours, Approximately 63 per cent of the 2,500 eit ton in partnership, ha A bee _ Kathleen Wynne Premier. Enclosure | The Honourable David Zimmer Minister of Aboriginal Affairs The Honourable Carolyn Bennett Minister of indigenous and Northem Affairs ootRecommendations for Ontario/Canada/indigenous Partner Collaboration 1. Ontario and Canada work with Fist Nations *0 develop a protocol for responding to social emergencies, 2 5, oot10. Ontario, Canada and indigenous Plan to annually red Next five years, 12. The federal government Partners establish and implement a feasible luce the number of boil water advisor ries in Ontario over the ryateh the Government of Ontario's $1 bition | Commitment to fund infrastructure for the Ring of Fire, 19. Canada provide fu million to support the hiring of 2; | Seasonal positions, to increase | Ontario, inding to Ontay 7 full-time em rio on an ann wal basis in the amount of $2,7 iployees, plus an additional 20 Service levels at remote northern airports in ooots7CANADA PRIME MINISTER» PREMIER MINISTRE Dear Premier: ‘Thank you for your letter of May 30, 2016, offering yoy government's collaboration to improve the quality of life in Indigenous communjées in Ontario, ‘The federal government shares with Ontatio the ommitment to renew the relationship with Indigenous Peoples by making progress on the issues most important to them. Our Government seeks #0 engage in partnership with Indigenous Peoples to break down the bastiers that have kept individuals and ‘communities from reaching their fall potCntial and to create inclusive growth. In your letter, you identify a numbey/of short-term and long-term needs to improve socio-economic conditions in In is communities, in particular in Northern ‘Ontario. 1 agree with you that these issues require strong leadership and collaboration from all levels of government to move forward. Many are the subject of existing collaboration anddiscussions between officials of the Ontario and federal governments. | fully suppért finding ways to deepen our partnership with the ‘Ontario government and First Nations, using a coordinated approach to transforming conditiog’s on Ontario reserves. ied in your letter share broad alignment with the unprecedented it our Government has proposed to advance the process of Honourable Kathleen Wynne ier Of Ontario Room 281, Legislative Building Queen's Park ‘Toronto, Ontario MTA 1A1 ootreconciliation to support Indigenous communities and the aspirations of, Indigenous Peoples. Budget 2016 proposes to invest $8.4 billion over five years better health, and cultural and recreational infrastructure. Bydget 2016 also responds to First Nations infrastructure needs with new investmentéo support water and wastewater infrastructure, drinking water monitoring ang/testing, and new funding for the First Nations Infrastructure Fund to support cofnplementary infrastructure such as roads and bridges, energy systems, broadband/connectivity, disaster mitigation, and fire protection services. Our Goverdment will also make new investments in child welfare, and to support sheltgés serving victims of family violence living in First Nations communities. ‘While our Government has been working clgsely with yours on these issues, both through existing tables and on new initiativgs, I share your sense of urgency to make real progress. I was pleased to discuss thefe matters with you on June 8, 2016, where ‘we agreed to task Michael Wetnick and Sfeve Orsini to support a well-coordinated, whole-of government approach to findjhg concrete solutions. Federal ministers and officials are working to look at curreny/and planned federal programs and investments to identify priority areasor collaborative action. Carolyn Bennett, Minister of Indigenous and Northeyn Affairs has agreed to work with her Ontario counterpart to provide leadership fo advance joint action with Indigenous leaders and communities. | would also like to take this opportunity to thank you for your support for the National Inquiry into Missing and Murdered Indigenous Women and Girls. I know that our Government can céntinue to count on your support in formally joining in the Inquiry. 1am forwarding, for théir information, a copy of our exchange of correspondence to: Minister Bennett; Navdeep Singh Bains, Minister of Innovation, Science and. Economic Developpfent; Jody Wilson-Raybould, Minister of Justice and Attorney tt, Minister of Health; Marc Garneau, Minister of Transport; James Gordon Coft, Minister of Natural Resources; and Amarject Sohi, Minister of oooti8Government of Canada Gouvernement du Canada Privy Council Office Bureau du Conseil privé ZO\W-FRAH-ODIY he Dooviy Cacti Pity Camnct, Sauer du Corel pi ‘Stone Sroy eben Silare sense ave Sabepuy esto ersousrinate cee eons intergorermoral Aas ‘Manes nlexpouernementas FF vicaes pein ta cas / Q MC -1 26 Returned from the PM SECRET 8, AUS 23 2016 Gestion conn Retourné du PM AGS 18 2016 MEMORANDUM FOR THE PRIME MINISTER BRIEFING PACKAGE FOR YOUR MEETING WITH ONTARIO PREMIER KATHLEEN WYNNE (For your meeting of August 2016) SUMMARY This package has been prepared in the event that you have a bilateral meeting with Premier Kathleen Wynne on the margins of the Cabinet retreat on August 20-22 in Sudbury. A scenario note (Tab A) and suggested key messages are attached (Tab B). Also attached is an economic and fiscal update for Ontario (Tab C). ‘Serge Dupont Bo Attachments Graham/Ferguson/Adamitv net aA ica SEAL Won0%23 oo0t2016.GEN SAN ose; w ete wy. dich OK “wit piece) (GQ CAN be CO | Office of the Clerk aay 7af 2a ) Prime Minister's Offi oootatPage 122 is a duplicate est un duplicata012sSECRET MEETING WITH ONTARIO PREMIER KATHLEEN WYNNE SCENARIO NOTE Desired Outcomes A meeting with Premier Wynne is an opportunity to follow up on previous discussions and explore how continued progress can be made on shared priorities, including clean growth and climate change, collaboration on Indigenous issues, automobile manufacturing investment, innovation, and infrastructure. In addition to these issues, Premier Wynne may ask you about your openness to a discussion on health care funding at the fall First Ministers’ Meeting. Overview ‘Your last bilateral meeting with Premier Wynne was on June 10, 2016, where you discussed Canada Pension Plan enhancement, infrastructure, Indigenous issues in northern Ontario, health accord, clean growth and climate change, guns and community violence, and investment in the automotive sector. Issues you may wish to raise Clean Growth and Climate Change In May 2016, Ontario passed its Climate Change Mitigation and Low Carbon Economy Act and posted its final cap and trade regulations, which took effect July 1, 2016. The legislation implemented the authority for the government to join the North American carbon trading market and requires that the proceeds from cap and trade be directed to a Greenhouse Gas Reduction Account. Entities covered by the regulations are subject to greenhouse gas emission caps, with rules on compliance through the auction, sale and distribution of allowances. Transitional allowances have been allowed to large industrial emitters; these will be phased out over a period of time. On June 8, 2016, Ontario released its first Climate Change Action Plan detailing how it will re-invest approximately $1.9 billion per year in cap and trade proceeds. Key actions include financing emissions reductions from buildings, incentives to transition to zero-emission vehicles, cleaner truck transportation and transit, greening government assets, and incentives for clean-energy systems like solar, battery storage, advanced insulation and heat pumps. Pursuant to these actions, the Ontario government has announced the construction of new electric vehicle. charging stations. Ontario co-chairs the Working Group on Clean Technology, Innovation and Jobs tasked under the Vancouver Declaration. You may wish to thank the Premier for her leadership. You might reiterate the importance of close collaboration, through upcoming ministerial meetings that will set the stage for the fall oootz4SECRET First Ministers’ Meeting, towards establishing carbon pricing mechanisms and other efforts on clean growth and climate change that will deliver a strong outcome for Canadians. Collaboration on Indigenous Issues The Premier is committed to reconciliation with Indigenous Peoples and improving the quality of life and future prospects for Indigenous communities, particularly in northern Ontario. In May 2016, Ontario responded to the Truth and Reconciliation Commission Report with an apology for residential schools and a ‘commitment to invest $250 million over three years in ameliorating the legacy of residential schools with mental health and justice system services, culture and language investments, and other measures. Premier Wynne also wrote to you on May 30, 2016, to request federal collaboration to improve the quality of life in Indigenous communities in northern Ontario. You discussed northern Ontario Indigenous issues with the Premier on June 10, 2016, and agreed to task the Clerk to support a well-coordinated, whole-of-government approach to finding concrete solutions to make progress for all of northern Ontario. A copy of Premier Wynne's letter and the proposed reply, submitted to you under separate cover are attached (Annex A). At the Federal, Provincial, Territorial (F-P/T) and Indigenous Forum on June 10, 2016, Ministers Bennett and Zimmer (Ontario) agreed to work together on northern Ontario, engaging their respective colleagues. On July 19, 2016, the Clerk met with Ontario's Cabinet Secretary, Steve Orsini, to discuss Ontario's suggestions for immediate collaboration. Mr. Orsini suggested a three-track dialogue around physical infrastructure, community resilience/social infrastructure and education, training and job creation. Ontario is also interested in specific measures, including: — cost-sharing arrangement for electrical grid connection; a plan to reduce — and eliminate within five years — boil water advisories; — federal matching of Ontario's $125 million Community Benefits Fund; — a tripartite protocol for social emergencies; — anew funding agreement for well-being (welfare); — expansion of child care and early years programs on-reserve; and, — improved transition between education systems. It is expected that the Clerk will meet with Ontario's Cabinet Secretary again in ‘September 2016 to agree on areas for collaboration and a workplan. You may wish to indicate to Premier Wynne that the government is engaged at both the political and senior officials’ levels to advance collaboration and priorities on northern Ontario Indigenous communities. You may also wish to ask Premier Wynne about her August tour.across northern Ontario and the issues that were identified in her most recent meetings with Indigenous leaders. With respect to the launch of the National Inquiry into Missing and Murdered Indigenous Women and Girls, Ontario indicated in a letter from its Attorney General to Minister Wilson-Raybould dated August 3, 2016, that its Cabinet will consider a recommended Order-in-Council to support the National Inquiry in 012sSECRET Ontario. You may wish to thank Premier Wynne for this commitment to cross-appoint Commissioners to the same Terms of Reference under Ontario's relevant legislation. Automotive Sector In previous discussions with Premier Wynne on June 10, 2016 and May 28, 2016, you discussed auto manufacturing investment, in particular building relationships with Japanese auto manufacturers, noting that the Toyota CEO may come to Canada later this year and that the Premier will go to Japan in the fall. The Government has committed to better influence investment location decisions for the long-term competitiveness of the Canadian automotive sector. This includes the Budget 2016 commitment to maximize the impact of federal support offered to the automotive sector, including through the Automotive Innovation Fund (AIF) and the proposed Automotive Investment Office within the Department of Innovation, Science and Economic Development. On August 3, 2016, Premier Wynne and Michigan Governor Rick Snyder signed a Memorandum of Understanding to promote auto industry innovation and regional competitiveness for the Great Lakes regional cluster. A working group will explore opportunities for increased collaboration to enhance the competitiveness of both jurisdictions, with potential focus areas on technology advancement, supply chain integration and technology transfer, and best practices in industry strategy, regulatory and policy approaches, and workforce skills development. You may wish to indicate to Premier Wynne that work is underway to follow through on the Budget 2016 commitment to invest in the competitiveness of the automotive sector and that Minister Bains will continue to work with his Ontario counterpart Minister Duguid on this priority. Innovation Agenda The Innovation Agenda was announced by Minister Bains on June 14, 2016. The focus of the agenda is on promoting an entrepreneurial and creative society, supporting global science excellence, building world-leading clusters and partnerships, growing companies and accelerating clean growth, competing in a digital world and improving ease of doing business. ‘Southern Ontario has been the focus of a number of summer 2016 investment announcements to support innovation in Ontario clusters, including: — a $98 million investment in the University of Toronto from the Post-Secondary Institutions Strategic Investment Fund to renew 546 labs across the university's three campuses, $83.7 million coming from the federal government and $14.3 million from the Province of Ontario; — an investment of $11.96 million in McMaster University to support the establishment of a new biomedical and advanced manufacturing facility; ooot2SECRET — a $90 million investment in the SouthWestern Integrated Fibre Technology project, to bring high-speed Internet to more than 300 communities across southwestern Ontario; and, = a $12 million investment in Bioindustrial Innovation Canada to help develop a sustainable chemistry- and bio-based manufacturing cluster in Sarnia-Lambton. Federal ministers have also participated in round-table discussions on the Innovation Agenda with university and business leaders in the biomedical and other sectors. Ontario is expected to focus on areas of its competitive strengths, such as the Toronto-Waterloo technology corridor, the health research cluster in Toronto, and automotive manufacturing innovation. In addition, Ontario's Climate Change Plan aims to make Ontario a global leader in the next generation of clean technology solutions. In addition to several significant investments in science, research, business growth and innovation, Budget 2016 also set aside $800 million over four years, starting in 2017-18, to support innovation networks and clusters. Policy and program proposals will be developed ‘ You may wish to indicate to Premier Wynne that #4") Ontario's innovation priorities will be key to continued development of the Innovation Agenda. Canadian Free Trade Agreement At the conclusion of the July 2016 Council of the Federation meeting, premiers announced an agreement in principle on a new agreement on internal trade, now called the Canadian Free Trade Agreement. Ontario's Minister of Economic Development and Trade serves as chair of internal trade negotiations. Negotiations will continue in September 2016 on the technical details of the agreement, with ministers meeting to consider terms at the end of September. Ontario's Minister of Economic Development and Trade serves as chair of internal trade negotiations. You may wish to thank Premier Wynne for Ontario's strong support for brokering interprovincial positions on internal trade and encourage continued momentum towards an announceable at the fall First Ministers’ Meeting. Infrastructure Infrastructure is a shared top priority with the Ontario government. In its 2016 Budget, the Ontario government committed to invest amounts that will total more than $160 billion over 12 years in public infrastructure such as roads, bridges, public transit, hospitals and schools. Approximately $1.49 billion has been allocated to Ontario under the federal government's $3.4 billion Public Transit Infrastructure Fund (PTIF) and approximately $569.6 million to Ontario under the $2 billion Clean Water Wastewater Fund (CWWF). The federal cost sharing will now provide up to oootarSECRET 50 per cent of project eligible costs. The PTIF contribution agreement was signed on July 29, 2016 by Ontario, but has not yet been announced. Infrastructure Canada had been aiming to align the PTIF and CWWF announcements for August 23, 2016. The draft CWWF contribution agreement has been reviewed by both parties and federal officials are expecting final comments from Ontario, However, officials indicate that the CWWF will not be ready in time and may be announced separately at a later date. You may wish to note that you understand that work is progressing well between officials and that you look forward to an early announcement of the contribution agreements. Additional issues that Premier Wynne may raise Health Care Funding Premier Wynne may raise health care funding and the parameters for negotiation of a new Health Accord. At the conclusion of the July Council of the Federation meeting, Premier Pasloski, in his capacity as chair of the Council of the Federation, wrote to you on behalf of premiers to request a fall meeting with you dedicated to advancing a long-term agreement on health care funding, Ina release following the meeting, premiers called on the federal government for an immediate increase in funding through the Canada Health Transfer as part of a greater long-term funding partnership on health care for Canadians. Minister Philpott has spoken recently to her provincial-territorial counterparts about her openness to committing to a series of accords and an ongoing process of F-P/T engagement in health care to build and sustain long-term momentum for change. If asked, you could indicate that the negotiation of a new F-P/T five-year Health ‘Accord is an opportunity to build on provincial and territorial health reform efforts and show Canadians that their governments are working together to strengthen one of Canada’s most valued social programs. The planned F-P/T Health Ministers’ meeting this fall will be an opportunity to further advance joint work on specific actions under shared health priorities. Canada Pension Plan enhancement Premier Wynne may raise the enhancement of the Canada Pension Plan. Following the agreement in principle reached at the June meeting of Ministers of Finance, British Columbia subsequently announced its intention to launch public education over the summer. The Premier may express some concer that this could delay enhancements to the Canada Pension Plan. You may wish to indicate to the Premier that the federal government remains on track to introduce the legislation to enhance the Canada Pension Plan in the fall. British Columbia has indicated that they continue to support the agreement in principle and are taking a limited period of time for public education before moving ahead with ratification. 5 oootzeDear Premier: ‘Thank you for your letter of May 30, 2016, offering your government's collaboration to improve the quality of life in Indigenous communities in Ontario. ‘The federal government shates with Ontario the commitment to renew the relationship with Indigenous Peoples by making progress on the issues most important to them. Our Government seeks to engage in partnership with Indigenous Peoples to break down the batriers that have kept individuals and communities from reaching their full potential and to create inclusive growth. In your letter, you identify a number of short-term and long-term needs to improve sccio-economic conditions in Indigenous communities, in particular in Northern Ontario. [agree with you that these issues require strong leadership and collaboration from all levels of government to move forward. Many are the subject of existing collaboration and discussions between officials of the Ontario and federal governments. I fully support finding ways to deepen our partnership with the Ontario government and First Nations, using a coordinated approach to transforming conditions on Ontario reserves. ‘The priorities outlined in your letter share broad alignment with the unprecedented level of investment our Government has proposed to advance the process of ‘The Honourable Kathleen Wynne Premier of Ontario Room 281, Legislative Building Queen’s Park Toronto, Ontario. MTA 1A1 ooot2ereconciliation to support Indigenous communities and the aspirations of Indigenous Peoples. Budget 2016 proposes to invest $8.4 billion over five years to improve the socio-economic conditions of Indigenous Peoples and theit ‘communities and bring about transformational change. Our Government is ‘committed to improving the quality of life of Indigenous communities with new investments in quality housing, improved access to early learning and child care, better health, and cultural and recreational infrastructure, Budget 2016 also responds to First Nations infrastructure needs with new investments to support water and ‘wastewater infrastructure, drinking water monitoring and testing, and new funding for the First Nations Infrastructure Fund to support complementary infrastructure such as roads and bridges, energy systems, broadband connectivity, disaster mitigation, and fire protection services. Our Government will also make new investments in child welfare; and to support shelters serving victims of family violence living in First Nations communities. While our Government has been working closely with yours on these issues, both through existing tables and on new initiatives, I share your sense of urgency to make real progress. Federal ministers and officials are working to look at current and planned federal programs and investments to identify priority areas for collaborative action. Minister Bennett has agreed to work with her Ontario counterpart to provide leadership to advance joint action with Indigenous leaders and communities. I was pleased to discuss these matters with you on June 8, 2016, and agree that Michael Wernick and Steve Orsini will support departmental efforts, ‘The clerks met on July 19, 2016 o discuss priorities and will meet again in early fall to drive action on areas for collaboration. | would also like to take this opportunity to thank you for your support for the National Inquiry into Missing and Murdered Indigenous Women and Girls. 1 know that our Government ean continue to count on your support in formally joining in the Inquizy. Tam forwarding, for their information, a copy of our exchange of correspondence to: Carolyn Bennett, Minister of Indigenous and Northern Affairs; Navdeep Singh Bains, Minister of Innovation, Science and Economic Development; Jody Wilson-Raybould, Minister of Justice and Attorney General; Jane Philpott, Minister of Health; Marc Gameau, Minister of Transport; James Gordon Carr, Minister of Natural Resources; and Amarject Sohi, Minister of Infrastructure and Communities. Sincerely, 00130| : The Premier of Ontario Laren mp pte eae ee at ome Serer ll lam May 30, 2016 The Right Honourable Justin Trudeau Prime Minister Government of Canada Office of the Prime Minister 80 Wellington Street Ottawa, Ontario his Commitment to closing the gap in education, housing, child and family services, health care and employment clearly supports reconciliation betwee, Indigenous and [Socio-economic conditions are particularly concerning in remote First Nation munities in northem Ontario. A corresponding sense of hopelessnese ond porerasecs has become prevalent, especially among youth. The recent suicide Frisis in Attawapiskat First Nation is a clear reminder of the urgent need to address. hese Issues immediately. Health and Well-being Ontario has committed to address the urgent health care needs in remote First Nations Pommunities and will be making immedine investments to health services and gommunity supports. AD oootstOur governments need to be rea face of potential future crises. | propose that our ‘Community and Social Infrastructure javant to acknowledge the recent commitments by the federal government to invest in Key determinants of health, including infrastructure such as clean water, housing, jfemote electrification and roads. We are looking to your /ices that are Tequired, on-reserve i Ontario, working wit Your officials to scope out investments in on: ursing ‘Stations, idren, youth and families, sustained broad! ‘seniors. i i veraged to [plore efficient and effective wa icture and the ‘The 2016 Federal Budget announced $554.3 million ‘over two years to address urgent Adige ae is onrteserve. Ontario is committed to supporting access to housing for ovots2amberg tao to provide much needed accommodation options for community crembers and professional service workers. Ontario is prepared to help connect aaocortgilhin the broader housing sector in Ontario to work with your government to Support the impact of your investments. Connecting Remote Communities to the Grid Neaentato Ministry of Enerayis already engaging with officials at indigenous and ponhem Affars Canada (INAC) to discuss a cost-sharing arrangement fer tye ak) fo propel ts ope that our governments can reach an agreement by fall ofthis your ‘© propel this project forward to construction and avoid project delays, {am also encouraged by discussions with INAC that indicate that the connection of Pikangikum First Nation to the electricity grid isa priority for your government, [One specific opportunity is Whitesand First ‘Nation where an innovative wood pellet Plant and combined heat and power facilty is being proposed to help provide newable energy and economic development for the community. Through the Independent Electricity System Operator, we are in the midst of Negotiating a Power iurchase Agreement to support the project but the project would benef fra federal look forward to the federal govemment's commitment and cooperation in helping fanote communities in Ontario to end their dependence on diesel, a commitment wok 2s included in the Vancouver Declaration. | 1 00133Child and Family Services Wy Yeats and chid care prioties, including funding and infrastructure nesae Order to expand access to child care and chit and ‘amily programs in Fist Nations communis ooots4Drinking Water | 2pPlaud Canada's commitment to eliminate boil water advisories in five years and that the 2016 federal budget has committed some $2 billon over thee years for an-reserve | believe that our personal leadership is required to ensure Sustained momentum, and | we can share our comprehensive action plan for improving First Nations drinking water. The Province has offered its technical assistance in sovera) areas, including on-site and caaments of current water assets, systems feasiblity and design, operator training and certification, and source protection watershed Planning. ! am supportive of this work {and look forward to achieving real progress in this area in Partnership with First Nations and the Government of Canada. Violence Against Indigenous Women and Girls Zhank you for making a National Inquiry into Missing and Murdered Indigenous Women {and Girls one of your first actions upon taking office. You can ne confident that Ontario [will cooperate as the Inquiry process rolls out (Gines 3200N4 National Roundtable on Missing and Murdered Indigenous ‘Women and |Gitls in February of this year, | signalled Ontario's commitment to continue to have a leadership ole in the development of the, pan-Canadian prevention and awareness carp ,|am counting on your suppor for the development and launch wf nar ‘campaign in November ofthis year. Fenomic Development Opportunities [The Ring of Fire represents a significant regional economic ‘development driver for First Nations communities and for northem Ontario. The Government, ‘of Ontario looks to the federal government to, at a minimum, match the $1 billon the Province has committed {0 the infrastructure for the Ring of Fire. Ontario has Previously signalled that this Freep should be accommodated through the National Infrastructore Component of the Building Canada Program. 0013sGe StPhot all ofthis work, Ontario's Indigenous Partners, including Political Territorial Crganizations, need the capacity to engaye witha governments. Your government ‘needs to invest in Creating that ‘Capacity to ensure the ‘Success of our shared ambitious agenda, (Ours in partnership, Aatbe_ —~ athteen Wynne Plemi Enclosute | The Honourable David Zimmer Minister of Aboriginal Affairs The Honourable Carolyn Bennett Minister of indigenous and Northem Affairs 00136ooots7Recommendations for Ontario/Canada/indigenous Partner Collaboration 1. Ontario and Canada work with Fi to social emergencies, ist Nations to develop a Protocol for responding ify required federal infrastructure 5 and healing centres, nursing unity facilities for children, youth and families, 'ectivity and housing supports for seniors 5.: The federal government should take immediate action to work collaboratively bith First Nations in northern Ontario to prowis adequate and affordable " accommodation for community members and professional service workers, 7. Canada provide financial su cenewable generation and microgrid solutions for inmunities in northern Ontario for which it oo0t36ding to support the launch of a pan-Canadian prevention impaign on violence against and awareness cay Indigenous womenigirs by November 2016, 1g Of Fit 13. Canada provide fundit v7 annual basis in the amount of $2.7 mn to support the time employees, plus an additional 20 ‘seasonal positions, to in; ooots8e «= . MEETING WITH ONTARIO PREMIER KATHLEEN WYNNE. General Remarks + Pleased to be in northern Ontario with the Cabinet, and grateful for the opportunity to continue to make progress on Priorities shared by your government. Clean Growth and Climate Change + Our challenge this fall will be coming up with a national approach to clean growth and climate change as a strong ‘outcome of the First Ministers’ Meeting — will be counting on your leadership as we set the stage. Collaboration on Indigenous Issues. + Our clerks have had a conversation on priorities for collaboration and will be meeting again in the weeks to come. Will ‘be moving forward on collaboration and leveraging significant investments in Budget 2016 for Indigenous Peoples. + Thank you for continuing support to participate in the national inquiry into Missing and Murdered Indigenous Women and Girls and your commitment to passing an Order-in-Council to support the inquiry in Ontario. Automotive sector + Will invest in the competitiveness of the automotive sector and Minister Bains will continue to work with his Ontario counterpart Minister Duguid on this priority. Innovation Agenda + Pleased to see that together we have been able to announce significant investments in key sectors in southern Ontario this summer. Ministers will continue to engage stakeholders on priorities for the Innovation Agenda in the coming ‘months. Canadian Free Trade Agreement + Appreciate Ontario's strong commitment to internal trade negotiations and hope we will maintain the momentum towards the fall First Ministers’ Meeting Infrastructure + Understand the agreement for the Public Transit infrastructure Fund is ready to announce and that we are getting close on the Clean Water Wastewater Fund, Health Care Funding + Committed to providing federal leadership and engaging collaboratively with provinces and territories to negotiate a new Health Accord. + Would like to see joint work advanced on specific actions to strengthen reform efforts and move ahead on shared priorities. The outcomes of the Health Ministers’ Meeting this fall will be important in this regard, Canada Pension Plan + Federal government remains on track to introduce legislation in the fall to implement Canada Pension Plan ‘enhancement. votooootatUNCLASSIFIED BACKGROUND INFORMATION ON ECONOMY AND LABOUR MARKET IN ONTARIO The economic outlook for Ontario is relatively strong. After a decade in which the province lagged resource-intensive provincial economies, Ontario became one of Canada's growth leaders in 2015 as many other provinces were affected by the decline in commodity prices. Ontario's real GDP grew by 2.5% in 2015 and private sector economists forecast growth of 2.7% and 2.4% in 2016 and 2017, respectively, lagging only British Columbia. Real GDP Growth Forecast forecattfrom Finance Conads August 2016 private sector survey Recent Developments ‘Ontario's near-term economic indicators are mixed, suggesting headwinds from the recent rise in the Canadian dollar. Manufacturing growth was 1.4% in June, after declining 1.6% in May. Similarly, exports rose by 3.6% in June after declining 1.8% in May. Retail sales, more indicative of the domestic economy, were flat in May after rising just 0.3% in April. Housing starts, a volatile indicator, fell 12.8% in June after rising 8.9% in May. Labour Market Situation Following a period of being Canada’s job creation leader, job creation in Ontario has stalled in recent months. According to the Labour Force Survey, Ontario lost 40,300 jobs in June and July, largely in the public sector. Despite this, the unemployment rate has fallen to 6.4% since June 2016, its lowest level since 2008. ‘Average weekly earnings in Ontario grew by 1.9% year-on-year to $972 in May 2016. Ontario earnings remain above the national average, and trail only the oil-producing provinces of Alberta, Saskatchewan and Newfoundland and Labrador, all of which saw average earnings declines over that period ooot42-2- UNCLASSIFIED Unemployment Rate 419 = canada. —ontario 6 OFS FP SFP ot SPSS Me LP Mee Source: Statistics Canada Labour Force Survey Structure of the Economy ° Ontario has the largest provincial economy, representing 36.6% of Canadian nominal GDP in 2014. It is also the most populous province with 13.8 million people or 38.5% of the Canadian population in 2015. Ontario Economy by Industry (2015, es! 2007 dolar) * Source: Sttcan Table 379-0039 Ontario's economy is well-diversified and is the centre of several Canadian industries including auto manufacturing, finance and insurance, high technology and English media. Manufacturing, the traditional mainstay of the Ontario economy, accounted for 12.9% of real GDP in 2015, above the national average ooot4s-3- UNCLASSIFIED. of 10.6% but well below its recent peak of 20.4% of GDP in 2000. Finance and insurance accounted for a relatively large 9.8% of GDP compared with the national average of 7.0%. Conversely, primary industries of agriculture and mining together make up just 2.1% of the Ontario economy, welll below the national average of 9.7% of GDP. Automotive Sector $0 Ontario is the main location of Canada’s automotive industry. Five global automotive companies have 11 assembly lines in the province which, along with their suppliers, employed a total of 104,500 workers in 2015. Starting in the mid-2000s, amid a rising Canadian dollar and increased competition from the southern U.S, and Mexico, Ontario began losing market share. This trend accelerated during the global financial crisis when transportation equipment manufacturing then fell by 57% from its 2007 peak to its 2009 low. The post-2009 crisis recovery in the auto sector has been slow, and marked by weak investment. From 2011 through 2015, there were about 3.5 million new units of assembly capacity added in North America, of which 63% went to the U.S., 34% went to Mexico and less than 3% went to Canada. Starting in 2014, the decline in the Canadian dollar and the resurgent U.S. economy provided a boost to Ontario auto manufacturing. Sales of Ontario transportation equipment have surpassed their pre-crisis levels in nominal terms and hit an all-time high of $9.9 billion in January 2016 before declining to $8.7 billion in June. So far in 2016, the automotive industry has reclaimed its position as Canada's largest exporter (from the energy sector) for the first time since 2007. Ontario Manufacturing Capacity Ut ae Baee Tort nsettal Transporation uipment PMR EMG EPEPEEEEPPEE EEE Source: SttanTeble 208.0015 Source: Staten Table 026-0002 Further growth in this sector will require increasing existing capacity - capacity utilization in the Canadian transportation equipment industry in the first quarter of 2016 was 94.8%. There have been no new assembly plants built in Ontario since before the global financial crisis. oootas-4- UNCLASSIFIED Financial Sector Toronto has the largest financial centre in Canada and was, according to the Global Financial Centre Index, the tenth-most important in the world in 2015. Toronto is home to Canada's five largest banks, two largest insurance ‘companies, and the largest stock exchange in the country. Toronto’s stature as a financial centre benefitted from the resilience of the Canadian financial sector during the global financial crisis. Toronto is a global centre for mining and energy financing, insurance and asset management. Finance and insurance accounted for 9.8% of Ontario's real GDP in 2015. Ontario Financial Sector Growth teal growth ™* o* om % —— PPELSELPEEESLES ISIS Source: StateanTeble 370-0030 Finance and insurance is a growth industry. The industry grew by 4.9% in real terms in 2015, and has grown by an average of 2.9% over the past ten years which includes two years of contraction during the global financial crisis. According to the Survey on employment, payroll and hours, the finance and insurance sector accounted for 326,700 jobs in Ontario in May 2016, or 5.4% of Payroll employment. This is also one of the best-paid sectors, with weekly earings 31% above the overall average in 2015. Fiscal Situation Projected deficit of $4.3 billion (or 0.6% of GDP) in 2016-17, following a deficit of $5.7 billion (or 0.8% of GDP) in 2015-16. Projected net debt-to-GDP ratio of 39.6% in 2016-17, the third highest ratio behind Quebec and Newfoundland and Labrador. The Province’s debt to GDP level has risen from 26% in 2007-08 to a projected 39.6% in 2016-17. Projected return to balance in 2017-18, for the first time since 2007-08. This is based on restraining growth in spending, alongside a continuation of relatively strong economic growth to boost tax revenues. ooot4s-5- UNCLASSIFIED, Ontario Revenues and Expenditures 150,000 Pie - i ¢ oP of eg ELLE SE ST SK ‘Source: Budgetary Documents *Forecasts from Budget 2016-17, sms Festal trancters mms other ow source revenue mm rota sales tax 9000 Corporations tax ‘mm Personal income tax Total expenciture ° s ae Ontario's 2016 Budget Ontario's 2016 Budget announced several new measures. Notably, it confirmed the planned cap-and-trade program covering industries, institutions, electricity generators, and suppliers and distributors of heating fuels, as well as a tax on gasoline. It also reformed student assistance by making average tuition free for students from families with incomes under $50,000, financed by the elimination of the Education and Tuition Tax Credits. New spending priorities in the Budget include: increasing social assistance rates by 1.5% for adults with disabilities; improving services for children and youth with autism through a five-year, $333 million investment; $178 million over three years for affordable housing; and $100 million over 3 years for a strategy to end violence against Indigenous women. Credit rating agencies Standard and Poor's and Fitch both downgraded Ontario. in 2015, while Moody's put the Province on a negative outlook. These downgrades, the latest in a series going back to 2012, were based on the province's high debt, slow pace of fiscal consolidation and uncertainty about implementation of planned future consolidation efforts. Moody's noted the relaxation of expenditure control in the recent Budget and warned that higher interest rates will lead to higher interest expense. ooot4sGovemmentof Cenada Gowemement du C 4M ry Sour once” Suces du Consiga SECRET 2016-FPTR-00184 InfoXpress: 1770680 Pour, Serge Dupont Date: Subject. Objet Memorandum for the Prime Minister BRIEFING PACKAGE FOR YOUR MEETING WITH ONTARIO. \THLEEN WYNNE From De. | vatnerTanguy Via | Les Lindt Dominique Blanchard —Frangois Daigle _ Doug Nevison | Your Signature Vote Sate DX] romaton For Decision ‘Material for the P.M, Pour Décision = ‘Documents pour le P.M, ‘CONSULTATION: ‘CONSULTATION: OTHER PCO /AUTRE BCP. OTHER /AUTRE REMARKS: REMARQUES: DISTRIBUTION lan McCowan 18 David McGovern 10 Les Linklater 10 Joh Hannaford 10 Matthew Mendelsohn he ® Darina orricen omaneiaonanone REDACTEUR Canad 000147Bobi Qs OST2U Doig = c1@ ~OOY2T »Government of Canada Gouvernement du Canada Privy Council Office Bureau du Conseil privé Ottawa, Canada Rare KIA0A3 SECRET Confidence of the Queen's Privy Council ‘Returned from the PM ivy Council Jun 13 2016 Be SEN 08 2016 Retourné du PM MEMORANDUM FOR THE PRIME MINISTER a BRIEFING PACKAGE FOR YOUR MEETING WITH OV ONTARIO PREMIER KATHLEEN WYNNE (For your meeting of June 10, 2016) SUMMARY ° This package has been prepared to support your meeting with Premier Kathleen Wynne on June 10 in Toronto. A scenario note (Tab A) and suggested key messages are attached (Tab B). ° Also attached are an economic and fiscal update for Ontario (Tab C), an annex pertaining to Ontario's climate change initiatives (Tab D), a background note prepared by the Department of Finance on a Canada Pension Plan Enhancement (Tab E), and a letter received from Premier Wynne on May 30, 2016 (Tab F). ‘Stephen Lucas fim cig sauo 46 1. wwecoids Operations 9 15 206 S< Gestion es documents 1910) Deputy Secretary to the Cabinet (Plans and Consultations and Intergovernmental Affairs) Attachments Gray/Graham/White/Demers/Tanguy/pe Canad ooot4sAuthorization tp close fij ‘ationale) Chas RRA | RELL > PO | | WK gies by i Monies Wy a el : Gie coe Doe i Office of the EECA Oo 8 (3.20% | ene Minister's oh ooot4s00150SECRET Contidence ofthe ‘Queen's Privy Counc MEETING WITH ONTARIO PREMIER KATHLEEN WYNNE SCENARIO NOTE [Pesirea Outcomes Follow up on previous discussions with Premier Wynne and discuss how continued progress can be made on shared priorities. Advance federal priorities, including Canada Pension Plan (CPP) enhancement, innovation and investment, clean growth and climate change, infrastructure and reconciliation with Indigenous Peoples, including support for communities in northern Ontario. Overview Issues you may wish to raise Canada Pension Plan (CPP) Enhancement A key priority for the Government is to achieve agreement of the provinces to enhance the CPP. This will be discussed at the meeting of Finance Ministers on June 19-20 In advance of the meeting, Ontario's Finance Minister wrote to Minister Morneau (copying all provincial and territorial Finance Ministers) to outline Ontario's Position on a CPP enhancement, including the importance of reaching a definitive agreement at the June meeting, Ontario's proposed CPP enhancement design represents a significant concession compared to the Ontario Retirement Pension Plan (ORPP): it has a lower income replacement rate, a more narrow expansion of the earnings range; and forgoes a permanent exemption for workers with workplace pension coverage (which is a key, non-universal, design feature of the ORPP). However, Ontario also favours a fairly complex implementation approach for CPP enhancement, including an accelerated start-date of January 1, 2018 (rather than 2019) and a temporary exemption for workers with workplace pension coverage. Most other provinces are generally supportive of a CPP enhancement, but some have reservations, particularly regarding enhancement size; timing; and impact ia ooo1stSECRET 210) ontence of te eerie Piny Counc on small businesses and lower income Canadians (for more details, a briefing note prepared by the Department of Finance is attached at Tab E) To the extent that Ontario is willing to show some flexibility with respect to its Most recently stated position, and that the federal government is prepared to introduce some measures to help garner sufficient P/T support, our view is that an agreement to enhance the CPP is possible You could reiterate the Government's commitment to make concrete progress on ‘an agreement on CPP enhancement at the federal, provincial and territorial (FPT) Finance Ministers’ meeting in June and note Ontario's proposal to help achieve consensus. To this end, you may wish to explore the extent to which Ontario is willing to show flexibility to attract the necessary support from other provinces, in terms of either the level of income replacement or the earnings range, as well as the implementation approach. Finally, if a compromise design is reachable, you may wish to enquire whether Ontario would be willing to stand down from establishing the ORPP. Collaboration on Indigenous Issues The Premier has had a focus on reconciliation with Indigenous Peoples and improving the quality of life and future prospects for Indigenous communities, particularly in northern Ontario. On May 30, 2016, Ontario responded to the Truth and Reconciliation Commission Report with an apology for residential schools and a commitment to invest $250 million over three years in understanding the legacy of residential schools, closing gaps with mental health and wellness and prevention strategies, culturally relevant justice system services, cultural and language investments, and other reconciliations measures. Also on May 30, 2016, the Premier wrote to you to offer to work collaboratively to address both short-term immediate needs and long-term structural challenges to improving quality of life in Indigenous communities, particularly in remote northern Ontario. The Premier makes a series of recommendations for partnership work between the two governments and First Nations communities, in the context of Budget 2016 commitments and recent funding commitments by the Ontario Government (see letter attached at Tab F). They include requests for. ooo1s2