Mr. Speaker, before I begin my remarks I would like to thank the government for this apparently unprecedented pre-budget debate. May I commend the government for holding this discussion. It is an example of a more open consultative process which I hope will lead to a better budget than Canadians have recently been accustomed to.
The finance minister will hear advice from all corners of this place during the debate. This advice will include the thoughts of 2.5 million Canadians who voted for Reformers sitting on this side of the House. We will be expressing the concerns of all Canadians who believe that their tax money is not being spent as wisely as it could be. I ask the minister to act on these concerns when preparing the budget document.
The introduction of a budget is one of the most important functions a government performs. The budget is an outline of the government's fiscal plan for the country in the coming year. It directly affects every other government program, service and initiative by the way it distributes tax dollars. For this reason the consultative process must balance the needs and wants of Canadians with their ability to pay for those needs and wants.
When preparing a budget a government must do two things. First the government's primary task is to lay out a plan which allocates the hard earned money Canadian taxpayers have entrusted to them. This must be done in a way to deliver federal services and programs in as fair and economical a manner as possible.
The second consideration is one that often gets forgotten. The government must also treat future generations of Canadians fairly. It must ensure that their opportunities and quality of life are not hindered by the millstone of massive debt. It is unfair and immoral for us to spend money on ourselves today and leave the bills for our children and grandchildren to pay tomorrow.
All Reformers have a mandate from Canadians to reduce the tax burden through controlling government expenditures. I have chosen today to comment about federal agriculture expenditures because agriculture is the primary industry in Kindersley-Lloydminster and, indeed in much of Canada, because the production of food stuffs is vital to adequately sustain over five billion human beings, many of whom depend on food produced by Canadian farmers.
The purpose of funds earmarked for agricultural support should be primarily to assist agricultural producers who through no fault of their own find themselves financially disadvantaged. There are at present almost 50 different agriculture support programs and initiatives. They are far ranging and include loan guarantees for farm improvements and marketing co-operatives, a special Atlantic livestock initiative, a national farm business management program, a provincial potato diversion program, the southwestern Ontario soil and water quality enhancement program as well as the national soil conservation program, the Canadian agri-food development initiative and economic regional development initiatives.
There are even some in my province of Saskatchewan; a Canada-Saskatchewan partnership agreement on rural development, a Canada-Saskatchewan partnership agreement on irrigation based economic development.
We have not even heard of most of these programs. They are not very well known and we are not sure of their actual value. The administrative costs of running so many different and sometimes overlapping or outdated programs is staggering. Over $3 billion per year is spent by the Ministry of Agriculture of which almost $900 million is spent on operating and capital costs alone. These figures do not include the additional $728 million spent under the Western Grain Transportation Act.
This appallingly high level of overhead signals waste and mismanagement. By consolidating those 50 programs and initiatives into just a few, the government could probably save over $400 million and provide better support to the industry as a result.
We must expose the myth that more money spent always results in more effective programs. In the case of agriculture it is not only possible to provide better support with fewer dollars but it is essential to the long-term sustainability of the industry, given the financial shape of the government. We must be continually vigilant to ensure that whatever programs we establish today will be economically viable tomorrow.
Reform of agricultural programs is essential because we must be able to defend the cost of agricultural support to taxpayers, consumers, and future generations. Support programs that protect farmers and producers from situations beyond their control are defensible and desirable for the maintenance of our agricultural industry.
Defensible support programs include, first, an actuarially sound federal-provincial-producer funded crop insurance program to protect the farmer from natural disasters such as floods, frosts or droughts. I urge the Minister of Agriculture to review the program at least in my province of Saskatchewan where increased premiums, lower coverage and truckloads of bureaucratic red tape are ruining the program. For the record I also want this government and all Canadians to know that Reformers supported the crop insurance program in the last election and campaigned to strengthen it.
Second, we need an income stabilization program to help protect farmers from market cycles inherent in an open market environment. This shared federal government-producer program should have universal application and be based on the whole farm level rather than being commodity specific. Producers in the supply managed sectors should have access to this program as tariffication has been introduced. This program has the additional benefit of helping farmers make the transition into retirement, as remaining funds could be transferable to an RRSP account if the government does not dismantle the RRSP program.
A third program promoted by Reform is a trade distortion adjustment program designed to compensate exporting producers as a direct countermeasure to foreign subsidies. The program should include an automatic triggering mechanism and be based on the historic volume of exported products. Such a program would not require producer premiums and should ensure timely payouts within the same market period. We suggested taking funds from the ill-designed GRIP program and the slowly eroding Western Grain Transportation Act and thereby provide a
tool to beleaguered producers that is superior to anything available today at no more cost to taxpayers.
Reformers believe that if these improved programs are targeted to those producers most in need there will be many benefits. First, support dollars that are strategically targeted increase their effectiveness manyfold. Second, by delivering support more directly to the farmer rather than through a large bureaucracy the money gets where it is needed faster. Third, reduced overhead costs frees up more money for those in need.
This is but one example of how the government can increase the effectiveness of a program for those who need it and at the same time reduce the burden on the taxpayers.
If we can save dollars in something so basic and important as the Department of Agriculture surely there are many other government departments where substantial savings could be made. The department of aboriginal affairs for instance could be similarly realigned. Fewer dollars appearing in the budget could still mean more money in the hands of our aboriginal people. Another example is the Department of Multiculturalism and Citizenship. Justifiable functions of that department such as citizenship registration and human rights protection could be transferred to more appropriate departments such as employment and immigration and justice respectively. In this way almost the entire cost of a government department can be saved at the same time as continuing to deliver defensible services.
In conclusion, I would repeat that if within the Ministry of Agriculture we can increase program effectiveness and save $400 million by reorganizing the programs, surely there are economies to be made in all other departments as well.
Once again I want to congratulate the government for holding this debate. I urge the Minister of Finance as well as the Minister of Agriculture to consider these suggestions carefully. I have not made these suggestions for partisan reasons or for party bragging rights when progress is made. I have made these suggestions for the good of Canada not only today but for future generations as well.