House of Commons Hansard #134 of the 35th Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was billion.

Topics

Budgetary PolicyGovernment Orders

5:40 p.m.

Reform

Randy White Reform Fraser Valley West, BC

Mr. Speaker, I would like to talk in terms of marbles to the hon. member. I could say he has lost some but he has not. He is talking some of the talk but that is really all it is. I want to ask him a question about the infrastructure program.

The government is faced with a $40 billion deficit. One of the answers to resolve this situation is to create an infrastructure program. The infrastructure program uses $2 billion tax dollars from the municipal level, which the municipality gets by taxing people on their residences and so on. Then the infrastructure program uses another $2 billion from the provincial government which it gets from the same taxpayer. Then the federal government throws in $2 billion to make $6 billion. It all comes from the same taxpayer.

I would like the hon. member to explain the logic of another $6 billion out of the taxpayers' pocket as a positive influence in trying to balance a budget of $40 billion deficit a year.

Budgetary PolicyGovernment Orders

5:40 p.m.

Liberal

Herb Dhaliwal Liberal Vancouver South, BC

Mr. Speaker, I want to thank my hon. colleague for a very good question. There is a very good answer for that question.

Some time last year I was in Singapore and I had an opportunity to look at some of its infrastructure program. As many members know, Singapore has been a miracle of economic development over the past few decades. It is a model that other countries have looked at.

The reason that country has been so successful is because it has an incredible infrastructure program. It had a vision.

Budgetary PolicyGovernment Orders

5:40 p.m.

Reform

Myron Thompson Reform Wild Rose, AB

Mr. Speaker, I would like to ask the member a quick question. I have not heard any response other than the fact that we are going to meet this goal that is so easy to achieve, of 3 per cent of GDP. Three years from now we will only have a $25 billion deficit at which time we can bring in new ideas and all that sort of thing.

The IMF, the Globe and many economists nationwide indicated recently that it was not nearly good enough, that it was going to be a failure. They do not seem to read the newspaper or they do not pay attention to what they read. It is one or the other.

There does not seem to be any mention of the fact that in three years the debt is going to be another $100 billion deeper in the hole. They do not seem to take into account that the interest on the debt will go from $40 billion a year to probably $50 billion a year, unless interest rates keep going the way they are.

I would like the member to address the future in that sense.

Budgetary PolicyGovernment Orders

5:45 p.m.

Liberal

Herb Dhaliwal Liberal Vancouver South, BC

Mr. Speaker, I agree with my hon. colleague that the debt is going to increase. However, we have to make sure that we deal with the deficit before we can deal with the debt issue. That is what we are doing in a reasonable, common sense approach.

If we say we will do it within a year, I guess if we cut every program in government it could be done within a year. But what would be the long term cost of that? It could be done in two years if we wanted to cut every program. We would have to look at the cost of the programs.

Let me respond to the question of my hon. colleague. I am sure he is willing to listen to my response. In our cultural industry and scientific community it takes years to build infrastructure. They do not pop up from nowhere. We as the government are not going to cut them wholesale, which would cause serious problems in the future.

It is the same with our social programs. We can ignore and cut our social programs, but what price do we pay in the future? I ask the hon. member to look at the future cost of cutting those programs because in the end we will have to face the social costs.

Budgetary PolicyGovernment Orders

5:45 p.m.

Bloc

Yvan Bernier Bloc Gaspé, QC

Mr. Speaker, I only have one very simple comment, since unfortunately I must admit that I missed the beginning of the speech by my hon. colleague, the parliamentary secretary to the fisheries minister.

Since he is responsible for fisheries, instead of talking to us about big infrastructure programs, I would have liked him to tell us, in his area, his department, what he will suggest to his boss, the Minister of Fisheries and Oceans. Since the Department of Fisheries and Oceans is to be reorganized, what kind of reorganization does he foresee? The provinces are expecting cuts but also policies.

Budgetary PolicyGovernment Orders

5:45 p.m.

Liberal

Herb Dhaliwal Liberal Vancouver South, BC

Mr. Speaker, I thank the hon. member. Unfortunately he missed the first half of my speech. It was an excellent part of my speech. I know he will not do that again.

I will be telling the minister, and I am very happy to share it with the member, that we need to look at duplication. We need to look at the overlap between the provinces and the federal government. We need to look at that to see if we can save money by dividing some of the responsibilities. Let us have a look at them. We will look at the different departments.

Is there something in the coast guard? Can we amalgamate the services of the coast guard fleet with the department of fisheries fleet to create more efficiency? Can we consolidate those services so a better job can be done in a more efficient and effective way?

I will be telling the minister that we need to look at small craft harbours. Maybe we can privatize them. Maybe they can be privatized at a much lower cost than for us to continue holding on to them.

I will be advising the minister that we have to look at overlap. We have to look at duplication, not only between the provinces and ourselves but between the different departments like the Department of the Environment and the coast guard. Let us see what services we can consolidate and save money.

Why should we have within a mile fleet maintenance services for the coast guard and close by one for the Department of Fisheries and Oceans? It does not make sense.

We have to look at the common sense approach. We need to look at overlap and duplication. I hope the minister will listen to what I have to say because coming from the business sector I can provide some good advice on saving money for the taxpayer.

Budgetary PolicyGovernment Orders

5:45 p.m.

The Deputy Speaker

The bells will ring at 6.05 p.m. so if the two colleagues in the Reform Party would like to divide their time perhaps it would work.

Budgetary PolicyGovernment Orders

5:45 p.m.

Reform

Randy White Reform Fraser Valley West, BC

Mr. Speaker, I say to the hon. parliamentary secretary to the minister of fisheries that the government had better soon decide whether it is going to fish or cut bait. He should stick around; he may learn something. Here we are in 1994. We have an overtaxed worker and we have a frustrated taxpayer, all of whom depend on us to relieve them of their concerns.

I listened to the comments today. A Liberal member suggested that because they were in office the economy was growing and we were doing well. Let us imagine how the worker in British Columbia, Nova Scotia, Newfoundland or elsewhere across the country thinks about the rhetoric in Ottawa. His pockets are empty. He is overtaxed and he is frustrated. It is abysmal that they can stand here and talk about how well we are doing.

We are not doing well, folks. We owe $40 billion. We have a debt load of $530 billion. We cannot delay any longer the implementation of a tough budget. We often talk about the baby boomers versus generation x , the next generation so labelled after us. To some extent the generation of baby boomers has been a fairly unrealistic group. We have overspent the last 20 years. Now we are whining about the fact that we have to cut. That is exactly what is going on across the way. They are whining.

We in this party have the courage to come up with a plan. That is exactly what we are doing and what we are going to proceed with. They can whine as much as they like. We are right and they are wrong. It is as simple as that. I think fish or cut bait should apply not only to the Minister of Fisheries and Oceans but to everyone sitting across the way.

One of the jobs I have in the Reform Party is to look at regional development grants. That is what I want to talk about today. Many of my colleagues have spoken about areas in their expertise, in their portfolios, but regional development grants are of particular interest. They represent about $1.3 billion. We are advocating the phase-out of regional development grants.

ACOA is one of them. The Atlantic Canada Opportunities Agency has a budget of about $376 million. I spoke about blueberry research the other day and a Liberal member commented. He said: "I am sick and tired of hearing anti-Atlantic Canadian comments coming from members of the Reform Party".

That is clearly not the case. Regional development grants are located in Atlantic Canada through an organization called ACOA, in western Canada through an organization called West-

ern Economic Diversification, and in Quebec through an organization called FORD-Quebec. FORD-Quebec has a budget of $437 million each year of taxpayers' dollars to give out in its area and Western Economic Diversification has $452 million.

A taxpayer sits in his home and says: "I am going broke. The taxes are more onerous every day. How am I going to survive?" And the government says: "That is okay. We cannot look at these programs because they are regional development programs and we best know how to spend your money". That is basically the way it is.

These agencies have about $1.3 billion to know how best to spend taxpayers' money. I will go through some of the ways in which they spend the money and give some examples later.

The concept of regional development grants, as I understand from the government, is that it wants to support and promote opportunity for economic development and to foster development of entrepreneurship. That is an interesting one. A fellow who was given the entrepreneurial award of the year in one of the regions had six or seven grants from a regional economic development organization. I do not know what the Liberal concept is of an entrepreneur, but to me it is somebody who does not live off the taxpayers' dollars, who does not get any grants whatsoever. It is somebody who has done it on his own. He is not counting on government. They are not fostering the development of entrepreneurship in regional development grants. It is not happening. That is contrary to the concept, but the award was good.

One concept is to increase the rate of new business formation and another is to improve the competitiveness of small and medium sized enterprises. We have done a lot of research into regional grants. How does one improve the competitiveness of a small or medium sized business in an area when the government comes along and says: "Just a minute. You want to update a motel. Here is $67,000 for you", and the next motel says: "Wait a minute. What about me?" The government says: "There is none for you; this is going to be a competitive world".

He walks away with $67,000 profit from the taxpayer. It goes out of the taxpayer's pocket to somebody else. That does not improve competitiveness and is why we have to start eliminating regional development grants. I am sure we will have a great debate on this matter, because that is not the way the government thinks.

The concept of entrepreneurs does not include government handouts, at least where I come from. If we ask businessmen in my community what an entrepreneur is, they will tell us that it does not include government money.

We all know that Canada has a serious problem. We all know the Liberals are facing a $40 billion deficit. They are overspending each year. We know they have to cut it. They know they have a $530 billion debt and the interest on that debt is increasing by the day, by the hour, by the second.

What are they going to do about it? They are going to close the gap. They are going to get it down to 3 per cent of gross domestic product. That is around a $26 billion a year deficit. Imagine going to the bank, paying our bills on more and more debt, and the Liberals are saying: "We are going to look after that, folks. We are going to bring it down to about $26 billion a year". That is insufficient.

Over a short three-year period let us look at what we will have. We could look at four years or over the whole mandate. We are adding to the debt load in excess of $100 billion.

Who will pay for it? Our children will. If we think of nothing else in the country, we have to think of the little ones behind us. We have to think of the ones in university who are wanting to get out and get jobs. Jobs are stifled by business being overtaxed and by debt load. We have to give them something to look forward to. It is time to make some tough decisions. We know they do not like zero in three. We know they do not like to fish or cut bait, but we know they have to deal with the problem.

The average taxpayer uses a litmus test when he hears about giving a grant to any organization. A civil servant from the Department of National Revenue knocks on the taxpayer's door and says: "The motel down the street needs $67,000 to upgrade its facilities. Would you give us $3 out of your pocket to do that?" The individual would wonder why he would give him money out of his pocket and would ask: "Does he not make a profit? If he does not make a profit should he be in that business? I do not have $3 anyway so I really have to borrow it".

What will the individual say? He will say: "No, I need that money. I am not going to the bank to borrow it and give it to you". That is exactly how the taxpayer feels.

The government has taken it upon it itself to make the decision on behalf of the taxpayer to give out the taxpayer's money to projects he does not agree with. I only have a minute so let me mention a few: $38,000 to acquire fencing and improve a go-cart race track; purchase of equipment for a luxury tour and outdoor recreation, $15,000; purchase and renovate an inn to higher quality; acquire office furniture and computer equipment; construct a two bedroom cottage; and to refurbish an existing cottage. If we ask the taxpayers they will say: "No. If you want that then you earn your own profit and you upgrade your own facility".

I would love to say more but I am out of time. It is time to fish or cut bait over there.

Budgetary PolicyGovernment Orders

6 p.m.

Liberal

Paul Szabo Liberal Mississauga South, ON

Mr. Speaker, I want to congratulate the member for finally coming out of the closet in front of the entire House, declaring that he is a baby boomer that is.

The member continues to mention that we have a deficit and we have a debt. Hypothetically if the Reform Party had formed the government over $100 billion of additional debt would have been incurred even with their plans. It is almost as if there would be absolutely nothing happening.

The member said this very large debt was accumulated over the last 25 years by the baby boomers and that they are the ones who are going to have to pay it back. I wonder if he would care to comment on whether he feels that seniors were in any way responsible for any of this debt. Does he feel that seniors should pay some portion of that debt?

Budgetary PolicyGovernment Orders

6 p.m.

Reform

Randy White Reform Fraser Valley West, BC

Mr. Speaker, do you know who is responsible for this debt? They are sitting in here. The politicians in this place are responsible for the debt. The Liberals and Conservatives are responsible for this country's debt regardless of their age. Do not blame it on the average taxpayer. It is politicians, the ones sitting right in here.

Budgetary PolicyGovernment Orders

6 p.m.

Bloc

Yvan Bernier Bloc Gaspé, QC

Mr. Speaker, I will try to be brief. The point I want to make to the hon. member from western Canada is that we are not only separated by distance: We also have diverging views on economic development.

Economic development in the east means something specific, whether it is in Quebec or in the Maritimes-I do not want to speak for the Liberals, they are quite capable of digging a hole for themselves. It is a development tool to help people; for example, instead of providing transfer payments and social assistance, you give people tools to look after themselves.

In this respect, I wish the hon. member would be careful when addressing easterners.

Budgetary PolicyGovernment Orders

6 p.m.

Reform

Randy White Reform Fraser Valley West, BC

Mr. Speaker, once again I have been informed to be careful about how we talk about the east. I thought I opened this up with the Western Economic Diversification Board, Quebec and ACOA. The facts are that a lot of the dollars given out as grants in all three of these all across the country are not serving the purpose for which they started out, the concept which I described earlier.

Please, let us not get into being careful how we talk about Atlantic Canada, or Quebec, or western Canada. It is the concept that we have to look at, the larger picture of economic development in this country. Is the money better off in the hands of the taxpayer or in the hands of the politicians?

Budgetary PolicyGovernment Orders

6 p.m.

The Deputy Speaker

Resuming debate. The hon. member for Wild Rose will end the debate in about two minutes.

Budgetary PolicyGovernment Orders

6 p.m.

Reform

Myron Thompson Reform Wild Rose, AB

Mr. Speaker, my speech was prepared for a lot longer than two minutes but I will try to reduce it.

The basis of this whole topic which bothers me is that it appears the government does not realize we are out of time and that we cannot afford Cadillac services any longer. We have to take a step backward. We have to drop the frills. It is time to trade in the Cadillac for a smaller car and realize that the days of wine and roses are over.

It amazes me. We asked for a simple thing. It would be a nice gesture on the part of the government to give up $10 million a year. Maybe it could go to the hungry children that the minister of human resources keeps talking about. It would be a good gesture. From the Bloc, from the Liberals and from everywhere else but the Reformers we hear: "No way, we are not giving up the good old pension plan, not for a moment. It is the rest of the country that has problems. Let them figure out what they are going to do. We do not want to do anything".

I look around the Hill and I see those blue cars courting ministers wherever they want to go. There are green buses that will take us any place we want to go on the Hill.

I understand that if they were willing to sacrifice a little, they each could cough up $45,000 a year that would really go well in the hands of the Children's Aid Society in Ottawa or Toronto. That is the kind of attitude I would like to see.

Budgetary PolicyGovernment Orders

6 p.m.

The Deputy Speaker

It being 6.05 p.m., it is my duty pursuant to the order passed on Thursday, November 24, 1994, to interrupt the proceedings and put forthwith the question necessary to dispose of Motion No. 17 now before the House.

Is it the pleasure of the House to adopt the motion?

Budgetary PolicyGovernment Orders

6 p.m.

Some hon. members

Agreed.

Budgetary PolicyGovernment Orders

6 p.m.

Some hon. members

No.

Budgetary PolicyGovernment Orders

6 p.m.

The Deputy Speaker

All those in favour will please say yea.

Budgetary PolicyGovernment Orders

6 p.m.

Some hon. members

Yea.

Budgetary PolicyGovernment Orders

6 p.m.

The Deputy Speaker

All those opposed will please say nay.

Budgetary PolicyGovernment Orders

6 p.m.

Some hon. members

Nay.

Budgetary PolicyGovernment Orders

6 p.m.

The Deputy Speaker

In my opinion the yeas have it.

And more than five members having risen:

Call in the members.

And the division bells having rung:

Budgetary PolicyGovernment Orders

6:25 p.m.

Liberal

Don Boudria Liberal Glengarry—Prescott—Russell, ON

Mr. Speaker, I think you would find unanimous consent that we proceed with the vote on Bill C-57 and then proceed with the vote on Motion No. 17.

Budgetary PolicyGovernment Orders

6:25 p.m.

The Deputy Speaker

Is there unanimous consent to proceed in that fashion?

Budgetary PolicyGovernment Orders

6:25 p.m.

Some hon. members

Agreed.