Mr. Speaker, I am pleased to speak to government motion No. 16 on the Second Report of the Standing Committee on Industry, for two important reasons.
Primarily, first of all, there is regional development. There is all the energy, efforts and action with respect to regional development in Quebec, and I am speaking about true regional development that will reach all the administrative regions in Quebec, not just the major centres or the large cities, but the furthest reaches of all administrative regions.
This is an exercise that has been going on in Quebec since 1984. It is a major exercise in defining regional development in the regions, and a series of framework agreements are now being signed, region by region, with respect to economic development.
I would simply like to tell my government colleagues across the way that regional development is Quebec's business and that it is in order to avoid duplication, in order to increase the efficiency of actions and investments in regional development that all the members of the Bloc Quebecois, the official opposition, are simply asking that the federal government withdraw from regional development in Quebec.
"The Bloc Québécois Members of Parliament on the Standing Committee on Industry are of the opinion that the Government of Quebec is in the best position to recognize the financing requirements of SMEs, and to develop and implement programs". So reads the first sentence in the dissenting report by the Bloc Quebecois members of Parliament on the Standing Committee on Industry, of which I am a member, studying access to financing for SMEs.
I therefore propose to take this opportunity to speak to government motion No. 16 in order to broaden the debate and thus express the dissent of the Bloc Quebecois, which continues and which is linked to the federal government's overall approach to regional development in Quebec.
The Bloc Quebecois is opposed to the interference of the federal government in regional development for two very specific reasons. First, because the federal government, instead of eliminating regional disparities, only made them worse, while precipitating the disintegration of peripheral regions, as its action was limited to central regions.
Let us be quite clear. I mentioned earlier that regional development in Quebec concerned all remote areas, and not central ones such as major cities. One master agreement after another is being signed with the Quebec government respecting the economic development of all areas. But such federal initiative has traditionally been limited to major urban centers and has literally caused the disintegration of peripheral regions, that is to say those regions outside of major urban centers.
Second, federal government initiatives within Quebec has been synonymous with the duplication of organizations. And my hon. colleagues know it full well. We all know of overlapping responsibilities and instances of horizontal and vertical duplication. They have been identified and the government even indicated it was prepared to eliminate this overlap and duplication in public administrations which are basically mismanaged since public funds are being squandered over various structures that serve essentially the same function. In time, this adds up, as we have seen, to billions of dollars and we end up today with a major deficit in the federal budget.
As for the disintegration of peripheral regions, I want to make something quite clear to our colleagues opposite. Since 1974, with the Liberals in power at the federal level, regional development was generally funded under federal-provincial agreements to which subsidiary agreements were added, as you know.
All these agreements covering the decade from 1974 to 1984 -these were 10-year contracts- totalled $1.8 billion, 26 per cent of which was earmarked for the greater Montreal region and 4 per cent for Quebec City. This means that 30 per cent of the total budget for this first set of so-called regional development agreements went to central regions. This first Canada-Quebec umbrella agreement for 1974-84 followed on the 1970 report by Higgins, Martin and Rénaud, which had been ordered in 1969, as you will surely recall, by the federal Department of Regional Economic Expansion, DREE, for the purpose of directing the federal government's activities for economic development in Quebec. So it meant a doubling of federal involvement in economic development in Quebec.
This report concluded that Quebec's economic weakness was due to the weakness of its only major centre, Montreal. As a result, the federal government's active involvement in Quebec in the 1970s set the tone for its approach to Quebec and did considerable harm to the Quebec government's regional development policies. The federal government sees a whole region or province as the focus of its regional development efforts. The federal government does not consider the geographic and demographic regions that make up a province.
From 1972 to 1984, regional development focused on certain growth centres. That was the approach. The way to a better distribution of wealth involved industrial solutions concentrated in urban areas. The policies adopted were disastrous for the outlying regions since the urban centres went a different way and it aggravated the rural crisis by draining workers, resources and capital.
I will explain the prime example which concerns the allocation of the budget and the corrective action that can be taken.
A second umbrella agreement was signed in 1984, in effect extending the first one for ten years. Knowing full well that outlying regions are breaking down, they renewed a $1.7 billion agreement for this period, allocating 36 per cent of the budget to Greater Montreal and 10 per cent to Quebec City. Between 1984 and 1994, the federal government increased its involvement in central regions to the detriment of outlying regions.
On the subject of regional development, it is important to respect the extraordinary dynamics between small and medium-sized businesses, municipalities and all stakeholders in the areas of education and health to organize a region in such a way as to prevent an exodus of our young people. This situation-the exodus of our young people and the aging of our population-is one that the hon. member is experiencing in his own region and that is also being experienced in other regions of Canada.
The subsidiary agreements that make up this second Canada-Quebec agreement, such as the regional and economic development agreement signed in 1988, confirm the existing structural inequalities. Businesses are allowed to set up shop in and develop central regions where they will find a concentration of people, a market. For some businesses, it is better to be based in a densely-populated area with a market of 2 million people than to move to an outlying region.
As we are fully aware, small and medium-sized businesses have different distribution systems for their products. Exporting businesses, in particular, can be based outside major centres, since they can ship their exports by road or other types of transportation allowing them to set up shop elsewhere.
Quebec regions are in an advanced state of disintegration. The demographic weakening of outlying regions is symptomatic of the state of degradation in several regions. The population of outlying regions continues to decline dramatically, especially in rural areas, thus compromising the settlement and viability of these regions. You are aware that people in every region fight to keep plants, small businesses, schools and even whole villages from closing.
This legislation tabled by the new Liberal government to establish the Department of Industry is patterned on the centralizing principle which has always prevailed within that party, in that it provides the same rigid and heavily centralized structures, as well as national standards for the whole territory.
We will still have an across-the-board policy applying to all of the very large Canadian territory, regardless of the particular situation in the various regions.
Take a look at how program services and business services are split within the regional operations branch of the department. It says very clearly-and the member who tabled this motion should listen-in the development program of the Department of Industry, under the heading "Regional Offices", that: "This component establishes a general framework designed to promote excellence and competitiveness in every region of the country. Regional offices participate in the development of policies designed to promote the fulfilment of national objectives". We are back to square one, because these are precisely the national objectives which ruined remote regions in Quebec.
By integrating the federal offices of regional development and transforming them into service centres for Canadian businesses, the Liberal government creates a single window to provide information on federal, provincial and municipal programs and services in Quebec, with the objective of-