19 December 2016 - Prime Minister Justin Trudeau’s campaign vow to improve federal-provincial relations has suffered a major blow as Ottawa failed to reach a new 10-year deal on health funding.

A last-minute boost to the federal offer failed to secure a deal at what Finance Minister Bill Morneau had described as a one-day opportunity to reach a new long-term health accord that could be included in his 2017 budget.

What happens next is not entirely clear. The provinces are calling for the issue to be discussed further among premiers and the Prime Minister, but Mr. Morneau is non-committal. He said the immediate implication is that a health-care transfer formula imposed by the previous Conservative government will remain in place.

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