Mr. Speaker, the member refers to the fact that we are cutting-I cannot remember the expression that he used-our transfers to the provinces.
In fact, in the month of January, we settled equalization payments on a basis that had been deferred for a number of years by the previous government. The payments were very generous to the seven provinces that were receiving them.
At the same time we met with the provincial finance ministers and told them we would not decrease the payments for a two year moratorium. It is the first time that has been done in a long time. They are used to the previous government simply cutting at will.
Then we said to the provinces that together, co-operatively, we would begin to reform the social programs that Canadians wanted reformed so that we could deliver the services more effectively and at less cost.