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Federal Finance Minister Jim Flaherty blocks CPP improvement plans: provinces

The Canadian Press Published Tuesday, December 17, 2013 10:43AM EST

Finance Minister Jim Flaherty pauses and chokes back tears after being asked his thoughts on Toronto Mayor Rob Ford as he speaks to the media prior to holding a pre-budget consultations in Toronto on Thursday, Nov. 7, 2013. (THE CANADIAN PRESS/Nathan Denette)

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OTTAWA - Canada's provinces say federal Finance Minister Jim Flaherty has blocked a proposal to find ways to enrich the Canada Pension Plan.

Ontario's finance minister, Charles Sousa, emerged from a meeting Monday with his federal and provincial counterparts, saying the provinces had reached consensus on the way ahead -- but were blocked by Flaherty.

And B.C.'s finance minister, Michael De Jong, said Ottawa's move to halt progress means that "CPP enhancement is over in this forum."

Sousa said Ontario is now prepared to go it alone with pension improvements. P.E.I.'s Wes Sheridan said his province will need 24 hours to think about next steps, suggesting other provinces may follow Ontario's lead.

Kevin Sorenson, federal minister of state for finance, emerged from the meeting earlier to say now is not the time to raise payroll taxes to pay for higher pensions.