If we go back to the 6% escalator that was in effect—and is in effect still until 2017—if we go back to that for the future, the next 75 years, essentially that will wipe out the fiscal room that the federal government has. By the same amount it will reduce the fiscal gap that the provincial local governments have. The transfers don't affect the total. Transfers only affect how that gap is shared between the different levels of government.
On October 29th, 2013. See this statement in context.