Mr. Speaker, I am glad that we can have this debate. The Liberal government has a point of view and the Reformers have a point of view on how the finances of the country ought to be run. I hope that the people of Canada are paying very close attention because literally their future depends on it.
I did a little mathematical extrapolation. When I first started this process it was 1992. The federal debt was about $420 billion and now it is around $550 billion, an average of around 9 per cent per year. At that rate, the debt would grow to over $600 billion by the year 2000.
Interest payments would increase from $33 billion in 1992 to over $50 billion in the year 2000. That $50 billion is not available for education, is not available for health, is not available for any of the social programs or anything else.
I want to ask the member who just made the speech a question. We recognize if we do not cut spending that the debt will continue to grow. In fact, the deficit needs to be cut to zero so that we can start attacking the debt which is growing every day by $110 million.
We have to do something. Does the government have any plans at all, and if so, where is it going to get the money? The $40 billion deficit is about equal to our $40 billion interest payment. Are we going to default on our interest payments? I am sure the member would say no.
Are we going to take money out of running the government? That costs around $40 billion per year. It would mean shutting government down completely. That would balance the budget. I am sure he would say no. Let us keep at least some of it going.
What is left then are transfers payments to the provinces. To say that the budget can be balanced and bring the financial situation under control without doing that, I submit, is not
facing the facts squarely. It is being very unrealistic. I think it is giving the people of Canada a false sense of security.
I would like the to member to respond on where he would actually cut.