Mr. Speaker, I appreciate being allowed to speak today on the government's Bill C-46. At first glance, this bill only confirms the organizational changes made by the previous government in the summer of 1993. Caution, however, teaches us to read between the lines, and it is precisely between the lines that we see the reasons for opposing this bill.
In fact, the government should have put a stop to duplication and overlap by giving Quebec exclusive control over its economic development. Instead, the government is giving the Department of Industry authority over regional development in Quebec and in Ontario, contrary to what is happening in the West and in the Maritimes.
The Federal Office of Regional Development for Quebec is a Quebec regional development agency and is not created under the specific legislation. It on took an order in council to transfer the regional development responsibilities of the Minister of Industry to the Minister of Finance. Nothing, however, guarantees that this order in council will be issued. It worries me that one day Quebec's regional development will fall into the hands of a minister from another province, as happened in 1991. Regional development could become lost in the administrative structure of the Department of Industry, and, I repeat, this worries me.
Bill C-46, Mr. Speaker, is the result of the previous government's wish to rationalize the machinery of government. In going ahead and implementing it, the Liberal government must give proof that it will effectively reduce government waste. And this will be far from conclusive, when one looks at the unnecessary and costly expenditures resulting from duplication and
overlap within the federal government and between the Canadian and Quebec governments.
Since the study by Germain Julien and Marcel Proulx, who made public the overlapping of federal programs with certain provincial programs, just from the point of view of co-ordination, civil servants must meet close to 1,000 times a year to see if they are not offering the same services, to harmonize program objectives and to ensure that they are not incompatible.
The Bélanger-Campeau Commission was clear on this point. If Quebec took charge of existing federal programs and provided the same services, we would save $233 millions in transportation and communication expenditures, $250 million in labour expenditures and $289 million in expenses associated with the collection of duties and taxes.
How efficient are measures implemented by two levels of government? More often than not, they cancel each other out because of competition and even conflict arising between the federal and provincial government. Program co-ordination is made difficult since neither government is prepared to make serious concessions on objectives or priorities. Even the famous infrastructure program had some hiccups. Did the former Minister of Municipal Affairs in Quebec not receive a letter of reprimand from the minister responsible for the program?
Just to know what services and financial assistance programs are available and to comply with laws and regulations, our constituents are forced to make multiple inquiries to keep abreast of programs and services. This is quite a burden, even more so when the programs and services are overlapping. Businesses have to assign employees to gathering this information and eventually taxpayers and consumers are affected.
In addition, there are people who do not use certain services because they do not know about them and program duplication does nothing to help. In fact, it even complicates the matter further. The people have little control over the way they are governed because of the confusion caused by overlapping. Such fragmentation of action makes it impossible for any one level of government to influence the course of things and, to make things even worse, they pass the puck to each other.
The provinces do have the right to opt out of federal programs. They do get financial compensation, but only for joint programs, which account for only five per cent of all overlapping. For these reasons, I seriously question the capacity of the Department of Industry to prevent such squandering. The bill before us provides rather for the status quo with regards to the mandate of the amalgamated departments. Is this another instance of semblance of change? Divisions are indeed changing names, but are we merging and blending the players? Nothing in this bill points that way. Nevertheless, the people gave a mandate to reduce waste in the federal government.
The Liberal government talks about "one-stop shopping" as a way to rationalize its internal operations. We all agree that this is a step in the right direction. But be careful: a mere merger that increases the size of an organization also reduces its productivity and efficiency. As a result, the bureaucracy is even more cumbersome. The Liberals have not yet shown that savings will be made with this "single window" concept.
The one in Montreal for business people saves the government no money. Customer service is improved, but what about the promised streamlining? We are entitled to demand that the Liberal government carry out all the restructuring of the federal machinery presented in this House in various bills that were intended to save money. The Bloc Quebecois demands it on behalf of all Canadians and Quebecers.
This bill also confirms existing overlap in regional development. Why let the Department of Industry meddle in our territory? For years Quebec has demanded control in this area. We have a very particular view of our requirements in this field. The decentralization of funding and authority begun by the new government in Quebec is the response which the regions were waiting for to take charge of their own communities.
The federal government would be well advised to do away with its centralizing attitude and instead implement this democratic vision of regional development. To say that regional development is neglected in Quebec is stating the obvious. Let me just mention the much publicised federal-provincial agreements on regional development in 1987 and 1988. I will admit that these agreements work very well in the western provinces and in the Maritimes. Indeed, since these agreements were signed, $1.2 billion was spent in Atlantic Canada, $630 million in the western provinces, and $165 million in Quebec.
Our regions suffer from the multiple interventions in regional development and from a lack of consistency of government policies. Let me give you an example. Would you believe that the government subsidizes an industry through the Federal Office of Regional Development, the only Canadian industry in its sector, while also allowing one of its departments to buy equipment from a competing American company? Yet this is what is happening to an industry in my riding.
This is unacceptable. If you believe in a product and subsidize the related research and development efforts, should you not also promote its marketing? Not so with this government, it seems. That situation should be corrected as soon as possible.
In its report, the interdepartmental work group on regional development set up by the Quebec government in 1991 looked at the issue of multiple interventions in regional development and concluded that: "In the present context, we can see the following negative results linked to the interventions of the two levels of government: confusion in terms of the regional sense of belonging, since the federal regions do not correspond to the administrative regions in Quebec; duplication of structures, regional consulting organizations and economic development agencies, as well as setting up of management committees and programs to reconcile various types of interventions; duplication of activities which results in high operation costs, given the actual budgets invested in regional development; too many government stakeholders, a situation which frequently results in confusion at the regional level".
May I remind hon. members that these comments were taken from the final report of the interdepartmental task force on regional development, published by the Government of Quebec in 1991. Quebecers are sick and tired of seeing their money used for the regional development of other provinces. This money should go to help small businesses and create small businesses and jobs in Quebec. Quebec does not want regional development that is based on the strictly industrial vision of the Minister of Industry in Ottawa. Quebec has had enough of the federal government's meddling and inconsistencies. Long ago, Quebec realized that only regional players understood the real needs of their environment. Enough of these projects, one-shot interventions and political decisions that siphon off funding from projects that are working perfectly well.
This bill is unlikely to end the uncertainty that is rife within the regional development agency. The Federal Office of Regional Development-Quebec may be very anxious to harmonize its activities with Quebec's, but so far, it has not been successful. According to the Minister of Finance responsible for the office, it has not yet been able to harmonize its mandate with that of the Quebec government's business development centres, which means the centres are still at the mercy of unilateral decisions by Ottawa. For instance, the federal government is planning to merge the BDCs and CFCs, which are now the responsibility of the Department of Human Resources Development, and have a single agency that would come under the Federal Office of Regional Development. Representatives of these agencies in my region talked to me about their concerns. The very future of the Federal Office of Regional Development-Quebec is in jeopardy. Despite all the promises in the red book that regional development could be a high priority, the office's budget is shrinking.
In 1993-94, the office's budget was $232 million, which is expected to drop by $70 million over the next three years. After these cuts, the budget for the Federal Office of Regional Development will be down to $162 million, compared with $200 million for the West and $214 million for the Maritimes.
The concerns of the agencies responsible for regional development are quite understandable, considering the way the Federal Office of Regional Development operates. The office has failed to harmonize its activities with the comprehensive vision of local development established by the BDCs and the CFCs.
Programs designed in Ottawa and implemented in our regions do not always respond to the real needs of the people. The money is spread around without any real input from the community. The federal government should consider the strategic planning priorities of Quebec's regional municipalities and regions, in order to maximize the impact of activities by regional agencies responsible for local development.
As long as decision-making and budgeting remain centralized in Ottawa, the regions will not be able to establish the base they need for continuing development. Geographic isolation is one thing, but it is nothing compared with the remoteness of the decision-making process.
The Bélanger-Campeau Commission realized that the future of regional development in Quebec depended on the regions controlling the levers of development. I wish the government would do something and admit it is not on the right track with regional development in Quebec. The fact is that the economic base is foundering, the social fabric is disintegrating, the rural exodus has not been stemmed and young people are still the first ones to leave.
Remote areas are crying out for help and with good reason. Federal funding to Quebec regions has increased by 50 per cent since 1983, whereas during the same period it has increased by 300 per cent in western Canada and by 250 per cent in the Maritimes.
On a per capita basis, the results are even more catastrophic. In 1987, per capita federal spending was $431 in the Maritimes, $259 in western Canada and $64 in Quebec.
How can we bring some balance back? The federal government must reduce expenditures, eliminate tax breaks for family trusts as well as waste resulting from overlapping and duplication due mainly to infringement upon provincial jurisdictions. The billions of dollars saved this way could be used to bring some fairness back into federal funding of Quebec regional development.
In the last budget speech, the federal government announced that it would not renew subsidiary agreements respecting forestry and mining. And yet it is in these two areas that subsidiary agreements have been the most beneficial for Quebec. The Eastern Quebec Development Plan, which will no longer be funded, is a case in point. Close to 6,000 woodlot owners are extremely worried. In other areas, the government is reluctant to renew its agreements. Federal subsidies to farming amount to $225 million, $25.5 million of which, only 10 per cent of the envelope, goes to Quebec. For transportation, Quebec gets only $165 million, or 13 per cent, out of a total of $1.1 billion, slim pickings indeed.
Let us settle the matter once and for all by repatriating this money-in the form of tax points-so that it can be managed by Quebec. Regional development will be a winner. This is what we are all hoping for.
All kinds of small steps can help us get out of this mess. Nowhere in the red book is it suggested that investors be allowed to pump federally guaranteed venture capital into local businesses. And yet, this is the kind of solution people are offering to help their region.
The new Quebec government has developed a real regional development policy. The Parti Quebecois wants to promote in that respect the assumption of responsibility by the stakeholders, in a context of freer trade which eliminates some trade barriers and opens the regional economy up to stiff competition.
Let me quote some of the objectives of this positive policy which could serve as a model: high level of employment, competitive export-oriented economy based on sustainable development, continuity and high added value, better quality of life in large communities, viable land use and many more.
No consensus can be achieved at the federal level regarding regional development because priorities vary from province to province and from region to region. That is why we are stressing the need to decentralize budgets and decision-making powers. The future calls for a decentralization of powers towards decision-making units, that is to say the regions, these being in a better position to assess their own situation. This bill should be rejected because it does not provide Quebec with exclusive control over regional development.