Mr. Speaker, if an analogy can be used to describe this year's federal budget, I would suggest the analogy of a rusted out pickup truck patched with Bondo and painted the same colour as the red ink book.
The budget is a patch-up job that seems to do very little to control the source of Canada's deficit problem. New programs have been introduced that require even more borrowed money. Each program represents an attempt to avoid the real problem, which is the government's lack of will to deal with a nation crippling deficit.
The infrastructure program is a large part of this problem avoidance. Jobs, jobs, jobs, we heard hon. members opposite cry on the campaign trail last fall. The promise of permanent jobs in this program is an illusion. The jobs created will last just as long as government money flows into this infrastructure program but not much longer.
By the same token, these jobs will not only cause the federal debt to rise, they will force the other two levels of government to increase their debts as well. The finance minister takes credit for not raising the tax rate. The visible tax rate may not have been raised but the various arms of government through which taxes are collected have been extended. The same taxpayer must now pay for more federally directed programs through the broader reach of government.
The additional debt to be incurred by all levels of government involved in the infrastructure program will result in about a $500 million annual increase in the deficits. This federal program is demanding that the provincial and municipal levels of government adopt its policy of increasing deficit spending.
Some provincial governments like Newfoundland may not fully participate in this program because they are already too heavily in debt. Other provinces have reluctantly conceded to the program only because of the pressure they receive from the municipalities.
Even the municipalities are reluctant to participate because of the enormous additional expense. These extra costs go far beyond what they can reasonably add to their budgeted expenses. However, because of the extra federal cash available politically both the provinces and their municipalities must enter this federally contrived competition for more transfer dollars.
The problem of paying for this program remains whether the money is accepted or not. Whether we take the cash or not we have to pay the taxman because the money will be spent. The money will be borrowed to spend and the burden of paying interest on that will be borne by the taxpayer.
Some of the largest cities may view this program from a completely different perspective. For them this may be a windfall. The federal government has taken on the role of Santa Claus, granting to them any project within reason that they can dream up. Some projects likely to receive funding can hardly be considered infrastructure types.
One project likely to gain approval is the Quebec City convention centre. Many would question this as infrastructure. While some communities are in desperate need of infrastructure upgrading, others will be using these tax dollars for projects that are ridiculous for financially broke governments to even consider.
Can we expect more projects as we saw from the previous government like the Museum of Humour in Montreal which is a joke of a project, approved and funded by all three levels of government?
Even if we could afford to undertake the Liberal infrastructure program, it is still flawed. Municipalities have been provided only two years to approve and implement projects which must be completed within just three years.
Any projects currently in place are not eligible and I fear the least infrastructure-like projects will get priority in the rush for approval. As well, the haste to completion will result in a lower quality end product with likely cost overruns to be fully borne by the municipalities.
I am concerned that this infrastructure program will end up yielding the same results as the Ataratiri Housing Project in central Toronto which was reported in the press. The description of this municipal housing project has similarities to the infrastructure program. On this Toronto housing project $265 million was spent and not a single residence was ever built.
I would like some assurance from the former Mayor of Toronto, now the hon. minister responsible for the infrastructure program, that the mistakes made in this Toronto project will not be repeated again on a $6 billion scale.
This infrastructure program serves as a reward to many municipalities that have neglected adequate maintenance. Rewarding negligence is found in another program adopted by the budget, the residential rehabilitation assistance program, or the
RRAP. This program is designed to assist individuals who own residences that do not meet adequate living standards.
The RRAP provides forgivable grants and loans. Forgivable grants are loans converted into grants after five years ownership has passed since the work was completed. The forgivable grant portion of the program cost the Canadian taxpayer $53.7 million in 1993. Additional fully repayable loans worth $10 million were also granted. However, in 1993 almost $1.5 million worth of previous loans were in default.
The residential rehabilitation assistance program as I understand it is intended to raise the standard of housing for those people with low incomes. This in itself is a worthy cause. As worthy as this may be the main problem with this program is the same problem we have with the infrastructure program. The RRAP will take another $100 million of borrowed money to finance it and this borrowed money will be added to the national debt and then we and our children can pay interest on that also.
However, there are some other reasons why I resist the RRAP. They are based upon some knowledge of some of the abuses that have taken place in the past. Homes have been renovated and upgraded with the result being an increased sale value which made selling the house an attractive option that was taken advantage of.
Another aspect I resist is the arrangement to provide loans which are simply not being repaid as agreed.
In the budget other costly programs were introduced. The cost of scientists and engineers program will be $10 million annually. It is designed to help businesses hire new technical staff with government subsidies. A similar program is the youth services corps which also acts as subsidies to businesses hiring youths.
As admirable as these programs seem they put businesses which are able to participate in the program at a competitive advantage over those that do not quality. Lowering the cost of research and production for a business which normally is not competitive or viable could force other self-sustaining and competitive business out of the market. Both these programs have admirable motives but have potentially dangerous consequences that could place Canada at a disadvantage in world markets.
It is always a disappointment for a person who has worked hard to see his or her business grow and then see a competitor come in and receive government money that instantaneously makes them 10 times larger than their years of work have accomplished and the business becomes unviable because of the artificial competition.
These programs will have little overall effect on employment but will force us to maintain current or higher levels of deficit spending and will not permit any overall lowering of business taxes which is the greatest stimulus to increased employment. These programs have the potential of working against the goal they were designed to achieve.
The court challenges program was reintroduced in last month's budget. Canadian Heritage estimates show a steady increase in the money to be provided to the court challenges program. The amount allocated for the next fiscal year, 1994-95, will be almost double what was provided in the last full fiscal year before its cancellation in 1992.
We must also take into consideration that the $35,000 available per case represents only a small portion of the entire cost that each case represents in the entire judicial system. As well, there are a growing number of people who resent taxpayers' money being spent to argue for the rights that satisfy agendas more personal than national.
The goal of the court challenges program was introduced to help minority groups challenge the sections of the Canadian Charter of Rights and Freedoms. It would be reasonable to expect that after 14 years of the existence of this charter the number of cases should be tapering off, not increasing.