Mr. Speaker, first of all, transfers to the provinces represent between 20 and 25 per cent of our spending. Therefore it stands to reason that when we make cuts, we cannot cut 25 per cent just like that. We have to cut fairly across the board.
Now, we gave the provinces two years notice to give them time to adjust, while we made cuts immediately. I also want to say that the cuts we made in our operations were far more numerous than the cuts in provincial spending.
As far as the employment insurance fund is concerned, first of all, we must create a reserve to protect ourselves against a possible decline in the economy, and second, as the auditor general said in 1986, it is part of our consolidated revenue fund, so it is treated as such.