A multibillion-dollar increase in health transfers could be announced as early as the next federal budget if Ottawa and the provinces manage to reach an agreement.

On the first day of the cabinet meeting, Secretary of State for Intergovernmental Affairs Dominic LeBlanc, who is taking part in the talks with the provinces, expressed his hope that an agreement would be reached soon.

“There is no doubt that talks with the provinces are progressing well. I’m a lot more optimistic this week than I was in December or July. Its a lot to do. But I see a strong desire on the part of all provinces, including the Quebec government, to find the best way to reach the best agreement,” he said in an interview The press.

Like the prime minister, Mr. LeBlanc declined to comment on the increase Ottawa plans to include in a possible deal with the provinces. They are asking for a substantial increase of $28 billion a year.

“I anticipate that the work we will be doing in the Council of Ministers this week will reinforce what we will be proposing to the provinces regarding details,” said LeBlanc, who is scheduled to discuss the issue Wednesday with Manitoba Premier Heather Stefanson, who presides over the Council of the Federation.

“If we want it to be in the budget, we have to agree within a month and a half. Based on the discussions that Health Secretary Jean-Yves Duclos, the Prime Minister and myself have had with several Prime Ministers, I am confident that this will be the case,” Mr LeBlanc said.

A compromised agreement?

In addition, Canadian Heritage Minister Pablo Rodriguez said he was confident Prime Minister Justin Trudeau’s comments about a possible appeal to the Supreme Court of Canada over pre-emptive use of the disregard clause will not derail a healthcare deal.

Quebec Premier François Legault condemned his federal counterpart’s comments as a “frontal attack” on Quebec. Mr. Rodriguez denied those charges.

“Absolutely not. There is nothing new about what has been said. Questions arise regarding the preemptive use of the exception clause. This is not a Canada/Quebec issue. It is a national issue. We saw it in Ontario. There are talks in Alberta and maybe in other provinces too, so it’s normal for us to ask ourselves questions about that,” he said.

Attorney General David Lametti has confirmed that removal is among the options available to the federal government. But he indicated that he could await a decision from the Court of Appeals State Secularism Lawadopted by the Legault government and containing the exemption provision before making its decision.