That shows that this government which claims to be a good manager of public money is very bad at paying its bills. This government brags about reducing the deficit, but to do so, it shifts its problems to the provinces.
We had already noticed it in the last federal budget, when the federal government announced a cut in health and education transfer payments. Now the government has decided it will not pay the $333 million it owes Quebec. Yet, other provinces received a positive reply and even got back what was owed to them. Quebec has to wait once again, and the federal government even suggested that it should not expect much.
When Quebecers ask themselves who defends their interests in Ottawa, the answer is certainly not: the government of Jean Chrétien.
Since we cannot count on government members from Quebec to defend the interests of Quebecers, I will explain in simple words the grievances of Quebec regarding the payment of $333 million, which is owed to us, but which the federal government refuses to pay.
As the motion already mentions, there are three amounts of money at stake. I will explain the $79 million, incurred during the native crisis of the summer of 1990, which should have been paid back to Quebec under the financial support agreements in case of disaster.
Nobody can deny the fact that the summer of 1990 was a disaster in Quebec, in terms of what happened in Oka and, above all, of the federal government sending in the army to deal with a catastrophic situation. That is why these $79 million were spent by the Quebec Ministry of Public Security and by the Sûreté du Québec to maintain public order and protect the residents of the affected area.
The cause of the conflict was simply that a native group claimed to own the lands surrounding its territory. Natives are under federal jurisdiction. That is why the Canadian Army intervened in the Oka crisis.
Bill McKnight, then Minister of National Defence, told minister Claude Ryan, in a letter dated January 24, 1991, that is six months after the conflict ended: "The federal government has special responsibilities regarding the Indians". In that letter, he also made a firm commitment to the Quebec government: "In addition to the expenditures already approved, we will provide financial help to the province, in accordance with the guidelines on the implementation of disaster relief agreements".
This letter from the Minister of National Defence to the Quebec Minister of Public Security is as clear as it can be. The government admitted to having a disaster relief program and, therefore, it was obligated to reimburse Quebec's expenditures.
In 1992, the government wanted to show what a good player it was, so it admitted owing Quebec $84 million and that it would give $5 million to the province, an action by which we think the federal government indeed recognized its responsibility in this issue. It still owes us $79 million. Why did the federal government change its mind afterwards? Why is it now refusing to recognize its responsibilities?
The government used faulty reasoning to avoid paying. Let us look at three of its reasons. First, it claimed it was making a distinction between public order, that was supposedly in jeopardy, and public well-being, that was not. These are the sorts of nuances that the government is capable of invoking. Beyond the fact that this distinction does not appear anywhere in the disaster financial assistance arrangements, it is obvious that public well-being was threatened by this crisis that affected all Quebecers.
Second, there was political interference in this issue. Indeed, it seems that the decision not to reimburse the expenses incurred by the Sûreté du Québec was taken in 1992 by the Treasury Board of Canada, despite an opinion given by its own experts and the Office of the Auditor General, who had recognized that at least a part of these expenses qualified.
So, how can it be claimed, as the minister did the other day, that someone refused to open the books? If the Office of the Auditor General has already recognized that at least a part of these expenses ought to be reimbursed, someone must have looked at the books at some point.
Third, the federal government gave as its criterion for refusing the amounts of money involved. The hon. member for Bonaventure-Îles-de-la-Madeleine used this argument this morning. Yet, the objective of the program is to help provinces or territories to face a disaster the costs of which would be an excessive burden on them. To accept the federal government's claims is to not only go against the spirit of the financial assistance program, but also to create a dangerous precedent.
If we follow this reasoning, the federal government could decide to stop paying old age pensions or UI benefits to Quebecers, simply because it would cost too much this year. In return, people would not pay their federal income tax, because they would feel it is too high. One can see how such fallacious arguments could lead us to disaster.
Let us be reasonable for a moment. There are laws and regulations providing for the payment of certain sums to Quebec under specific terms and conditions. Quebec citizens pay taxes to Ottawa and they have the right to recover part of them. Whether or not the Liberal government likes the legitimate government of Quebec or the official opposition should not be a factor. Our $79 million claim is only a matter of equity and fairness.
I will now move on to the $119 million the federal government owes Quebec for the education of young aboriginal people. It owes us this money under the James Bay agreement. In this case, the federal government seems more open, as it does not deny having responsibilities in this area. However, it refuses to pay, because these amounts were spent without a prior agreement between the federal government and the province.
Of course, the federal government does not appear eager to come to an agreement. It would then have had to pay its share. In this whole matter, the Quebec government acted in a perfectly responsible fashion. It acted like a reasonable man, as the saying goes. Instead of abandoning the aboriginal people to their fate, with no resources, to suffer from this wrangling between two levels of government, instead of closing schools for one, two or three years while this government negotiates an agreement, the Government of Quebec took its responsibilities, kept the schools open and kept young aboriginals in school, fulfilling its part of the bargain as well as that of the federal government.
And it is still waiting. The Quebec government has been waiting since 1986 for the federal government to pay back what it owes the province for paying both the federal and provincial share of expenditures. Now, if Quebec had decided to close schools, the federal government would have dragged the Quebec government all the way up to the Supreme Court of Canada and the aboriginals would have gone to the United Nations to complain about it. We took our responsibilities, Now, there are bills to settle.
I am baffled though. We have had consecutive governments, under Mr. Bourassa and Mr. Johnson for instance, that were federalist. Yet, and that is what amazes me, you were unable to come to an agreement among federalists and, as a result, the sovereignists now have to get up in this House to protect Quebec's interests.
Finally, there is this huge amount, $135 million, owed to Quebec by the federal government under the 1991-92 fiscal stabilization program. Liberal federalists in Quebec had already put in a claim for this amount when they were in power. The Minister of Labour could certainly brief the Prime Minister and the Minister of Intergovernmental Affairs on this issue.
As for the Minister of Finance, he flatly refuses to make any payment. Once again, the government is applying a double standard, since provinces much better off than Quebec-namely Ontario, Alberta and British Columbia-already received payments under the same program. In this case, as in the other two, the amounts to be paid should be based on objective criteria. Yet, the federal Minister of Finance refuses to go to arbitration and settle the issue without seeking to score political points. Instead, the minister suggested that the Quebec government take its case to the Federal Court, and eventually the Supreme Court. So much for the brilliant ideas of this government. The government owes us money, but tells us: Take the taxpayers' money. We will do the same. We will continue to pay lawyers and go to court, even though we are perfectly aware that, under the existing regulations and agreements, we owe you that money. Is this the finance minister's idea of flexible federalism and friendly
administrative arrangements? We can only conclude that, with friends like him, Quebec does not need enemies.
I am beginning to understand what government and federalist members mean by "flexible federalism". The expression refers to a vision of Canada whereby Quebec must always yield to Ottawa and English Canada. Let me simply tell you that the Bloc will never ask Quebecers to yield. Quebecers are proud. They want to take control of their destiny, and they will soon set up their own country, in the upcoming referendum, with or without those $333 million.