A few short decades ago, a prime minister recognized the perils of establishing new national programs without provincial and territorial buy-in. He put important limits on the use of the federal spending power – Ottawa’s ability to spend on anything it wants, even if it falls in provincial jurisdiction. The move was lauded across most of the country and set the ground rules for a more productive mode of fiscal federalism in Canada.

No, that prime minister wasn’t Stephen Harper. Although his brand of “open federalism” abided by many of the same rules of engagement and helped broaden and deepen Ottawa’s commitments.

It was Jean Chrétien who understood the importance of restraint when dealing with areas of provincial and territorial jurisdiction. He and the premiers negotiated the Social Union Framework Agreement (SUFA), with 10 of 11 governments signing the landmark deal in 1999.

While Quebec withheld its signature (the document included a line recognizing the constitutionality of the federal spending power, which the province contests to this day), SUFA was an important step in limiting Ottawa’s ability to spend in areas of provincial jurisdiction.

Many of the same conditions confronting Chrétien then confront Prime Minister Mark Carney today: massive deficits, intergovernmental turmoil, national unity tensions and more important federal priorities than treading on provincial and territorial turf.

That’s why resurrecting and revamping the Social Union Framework Agreement is the right choice for this moment.

Rules governing the use of the federal spending power

SUFA was an accord between the federal, provincial and territorial governments (except Quebec) that established principles and processes for co-operation in social policy. It affirmed shared Canadian values such as equality, fairness, diversity, dignity and mutual responsibility, while committing governments to providing accessible, reasonably comparable social programs across the country.

The agreement promoted mobility rights by removing residency-based barriers to services and employment, and strengthened public accountability through performance reporting and citizen engagement.

Governments committed to notifying each other........

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