Mr. Speaker, it is important to note that social transfer payments to the provinces are composed of two components: first is the tax points which were transferred to the provinces in previous years and second is the cash transfer.
As we cap the total transfers to the provinces and as the tax points which were transferred earlier continue to increase, the cash component of the transfer will continue to decrease. According to the experts the cash transfer would be reduced to zero in 10 or 15 years time if we did nothing about it.
It is important for the government to recognize if the cash transfer becomes zero, then it is impossible for us to influence the provinces to uphold the Canada Health Act. This is why it is so important for us to establish a cash floor to be transferred to the provinces. It will maintain our influence on the provincial governments for the delivery of medicare.