Mr. Speaker, I will be splitting my time with the member for Calgary Centre.
I am pleased to have the opportunity to speak on the budget on behalf of my constituents in Comox-Alberni. Canadians have listened for years to promises to bring spending under control and they are fed up with governments who are more concerned with re-elections than with the fiscal health and economic well-being of the country.
The last federal budget surplus was in 1970 when the government took in $139 million more than it spent. That was 1970. Since then, former Prime Minister Trudeau increased Canada's debt and it has been spiralling out of control ever since. It is not surprising that our present Prime Minister was finance minister during that period.
The deficit for this fiscal year was down to $33 billion and the Liberals have been doing a smart job in dropping the deficit down, but it has not been going down fast enough. That is only part of the problem. With a national debt of $580 billion and growing every second, Canada is in serious financial trouble. There is little in this budget to deal with this problem.
By not aggressively attacking the debt, the government is giving billions of dollars to the banks instead of spending it on Canadians in need. It is true that the Liberals have made modest cuts in programs, however, by not aggressively attacking the debt, any savings in spending are simply eaten up by payment on the debt.
Canadians are now paying 35 cents of every dollar simply to service the debt. Twenty years ago this figure was 11 cents. It has shot up by a factor of three times. Rather than serving Canadians, this government chooses to send that money off to the big banks.
In addition, this budget not only fails to make the necessary changes required to balance the budget, it makes its cuts by offloading the debt on to the backs of the provinces. For example, 73 per cent of Ottawa's spending cuts in the next year are in federal transfer payments for health, education and social programs.
Last year transfers were cut by $2.5 billion for the next fiscal year and by $4.5 billion for the 1997 fiscal year. This budget cuts transfer payments by another $1.4 billion over and above the $6.8 billion announced last year.
On April 1, provinces will be dealing with $8 billion in reduced transfer payments. By 1998 total transfers to provinces will be reduced by 24 per cent from 1994 levels, a 24 per cent drop in four years.
In terms of attacking the deficit, most provinces are well ahead of Ottawa in deficit reduction. Rather than following the lead of the provinces, this government is taking advantage of their political resolve and is down loading the federal debt on to the provinces.
Without a doubt this government's cuts to federal transfer payments is a feeble attempt to simply make the provinces, which already have balanced budgets, pay the federal debt. At the same time, and this is what infuriates Canadians, this government continues to make very little effort to cut back on government waste.
For example, despite the fact that civil service jobs are being cut, the budget for executive training has been increased by $6 million.
Statistics Canada's budget increased by 47 per cent and Treasury Board had a 12 per cent increase. The list goes on.
While the provinces are being hit hard with transfer payment cuts, this government is still on a spending spree. Provinces such as British Columbia have had it up to here, especially when they are being unfairly targeted by this and previous governments.
British Columbians are forced to cough up more than their fair share of funding and in return what do they get? Less and less. To illustrate, the level of funding under the Canada assistance plan to British Columbia, not to mention Alberta and Ontario, has been frozen since 1990. The Liberals promised to lift this cap, but like many of their promises, they have broken this one as well.
British Columbia, like Alberta and Ontario, continues to be a cash cow for the rest of Canada. In return British Columbians are being deliberately overlooked by this government which is more interested in serving the needs of central Canadians than the so-called rest of Canada.
British Columbia has received less than its fair share of transfer payments for years. For example, B.C. receives 30 cents on the dollar for its social assistance funding from Ottawa, while most other provinces receive 50 cents on the dollar toward their social assistance programs. Does that sound fair? Well, it is not.
There is another glaring inequity. This coming fiscal year Quebec will receive $11 billion in transfer payments. Ontario will receive $10 billion in transfer payments. What does B.C. receive? Three billion dollars in transfer payments. That is unequal and it is obscene.
Federal cuts to social program funding since 1990 have already cost B.C. taxpayers $1.7 billion. Over the next two years B.C. loses an additional $1.2 billion in federal funds for health, social services and post-secondary education. With all the cuts in transfer payments, British Columbians are fed up watching their taxpayers' dollars go to Ottawa with very little coming back the other way.
The level of cash transfers to the provinces is rapidly approaching the point at which Ottawa will lose any influence in setting health care and welfare standards. If this situation continues, why should B.C. be forced to follow Ottawa's standards for welfare when it is simply not coming through with the transfers? The answer is very simple. Ottawa will cease to be a player.
Over the past 30 years, federal spending in B.C. has been significantly lower than any other province or region in Canada. For example, B.C. receives a measly 5 per cent of major crown projects valued at over $100 million despite being the third most populated province in Canada. This is discrimination of major proportions.
The government has not only failed to represent B.C.'s interests in Canada, but it has also failed to represent B.C.'s interests on the international front. For example, the United States is challenging Canada's sovereignty over the inside passage between Vancouver Island and the mainland and is demanding the return of $300,000 in fees collected from U.S. fishermen in 1994.
Last November the American Congress passed a bill declaring the right of free passage to U.S. vessels through B.C.'s inside passage. Clearly this American bill undermines B.C.'s and Canada's sovereignty over its internal waters guaranteed under the Oregon Treaty of 1846. B.C.'s sovereignty over its own territory must be protected, yet the foreign affairs minister views this situation, and I quote his words, "as an annoyance". It is no wonder that British Columbians are worried about their federal representation regarding this issue and other issues such as the ongoing dispute regarding softwood lumber and the treaty regarding salmon.
I am forced to ask the question: Who in this government is looking out for B.C.? The answer: There is not one member of Parliament in the entire Liberal caucus, let alone in cabinet, who is willing to stand up for British Columbia. It is long overdue for this government to recognize the west and its vital contribution to Canada.
British Columbia expects more from the federal government. B.C. expects federal representation and recognition that B.C. makes a major contribution to the country. It is long past time for the Liberals to recognize that B.C. is more than a cash cow for Canada.
British Columbians are not prepared to sit in the back seat any longer. British Columbians are asking themselves what value they are getting for their dollar. When the net costs seem to far outweigh any benefits, it begs the question: Why should B.C. remain in the game?
In conclusion, British Columbians will simply not tolerate these injustices any longer. They are demanding equal treatment and it is becoming very apparent that only a change in government will bring that about. Come the next election, British Columbians will vote for change. They will turf out the Liberals in B.C. who are not representing their interests and will send a complete slate of 32 Reformers to clean up the mess created by the old line parties.