Mr. Speaker, yesterday the Minister of Finance clearly stated his intention to make massive cuts in transfer payments to the provinces in his next budget. Failing agreement with the provinces, the Minister of Finance plans to impose his solution regarding the cuts to be made. The freeze in transfer payments is already saving Ottawa $1.5 billion over two years.
Are we to understand that the Minister of Finance has given up on trimming federal operating expenditures and has chosen to reduce his deficit on the backs of the provinces, without any compensation, through a massive reduction in transfer payments for health and education?