Health care is expected to dominate the agenda Friday at the premiers' conference, after leaders agreed Thursday to create a new council to deal with federal-provincial relations.

Canada's premiers and territorial leaders said the Council of the Federation will make sure they are united when lobbying Ottawa every year and will help them fight against unilateral decisions – such as deep cuts to transfer payments a decade ago.

But Alberta and Quebec said they will not sign on to the idea of a separate council on health even though they promised to do so as part of a health deal reached with Ottawa in February.

Canada's premiers and territorial leaders meet Thursday

Alberta Premier Ralph Klein said he doesn't want an unelected body passing judgment on Alberta's health-care system.

Council of the Federation

Canada's premiers and territorial leaders said the Council of the Federation will fundamentally change federal-provincial relations.

Quebec Premier Jean Charest

"I think today is a historic moment," said New Brunswick Premier Bernard Lord. "This signals a new era of co-operation, of constructive federalism in Canada."

The group, to be formally set up at another meeting in October, will present a single wish list to the federal government every year.

"This is a great success," said Quebec Premier Jean Charest, who proposed the council. "We've come to a crossroads together at the same time."

"The premiers believe this plan will strengthen Canada," agreed P.E.I. Premier Pat Binns, the host of the meeting in Charlottetown. Several of his colleagues said they were inspired by the location, which was where meetings on Confederation were held in the 1860s when the country was formed.

'Now there are 13 of us'

Alberta Premier Ralph Klein credited newly elected Charest with changing the atmosphere at the table. He's the first leader from Quebec to come with a federalist, not a separatist, agenda in years, Klein said.

"Now there are 13 of us who are united in our desire to bring better services to Canadians in a truly federalist manner," Klein said.

Although Charest proposed the council, Manitoba Premier Gary Doer pointed out that similar ideas have been pitched in different ways by other provincial and territorial leaders.

"All the citizens of Canada will win with the Council of the Federation," said Doer, because the group will help improve the way priorities are set and services are delivered.

"I think there's a pretty solid recipe for success," said Charest. "We've made a major step forward in regards to how our governments will work together."

• FROM JULY 9, 2003: Premiers dump on Ottawa as summit begins

Several premiers dismissed suggestions that they're creating a new layer of bureaucracy. They called on Ottawa to agree to hold annual first ministers' meetings, rather than leaving it up to the prime minister to decide when to bring everyone together.