Madam Speaker, my colleague is being a bit facetious in asking such a question. Harmonizing taxes, reducing the paper burden and simplifying the administration of taxes are all good things. Nobody said they were not. This is in fact what Quebec has understood and has been doing since 1991. We harmonized the federal tax and the Quebec sales tax, but not at a cost of $1 billion. Not at all.
We harmonized the bases gradually, through discussion, through an administrative agreement, the kind you are so fond of. You are always advocating administrative agreements, everyone's full understanding and participation by all the provinces. And what are you handing us this week-a slapdash agreement with three of the four maritime provinces.
Without consulting any government in any province of Canada, least of all Quebec, you announce that from now on this will be the basis of discussions. And then you bring out this agreement, which will cost $961 million over the next four years over and above the equalization payments, which will take over. And now we have to pay. Button it and pay up is what you are telling the governments of Ontario, Quebec, Alberta, Saskatchewan, Manitoba and British Columbia.
This is not how it was in Quebec. There, we could see the advantage of harmonizing and of simplifying the administration. We could also see that the more we simplified and cut back administration, the better our economic performance. But we never asked for anything. The only money the federal government gives the Government of Quebec is for services rendered, because it administers the federal government's GST. And that is what is not right.
Furthermore, I do not think we are alone. Some may call us evil separatists and perpetual federalism bashers, but it is not true. See how rational, very rational we were with the GST, unemotional even. In Quebec we harmonized it. Not only are we criticizing this ridiculous agreement, but like the rest of Canada, we in Quebec find this whole business unacceptable. It is not right that the rest of Canada should pay for an agreement that is going to allow people in the maritimes to save 4 per cent in provincial tax.
If it were an equalization adjustment, it would be a completely different matter. Let us not mix apples and oranges as the Minister of Finance is so good at doing in order to confuse Canadians. That is not right. Do not forget-and my colleague knows it full well because he sits on the finance committee-that when a tax base in a province or a group of provinces is reduced from 19 per cent to 15 per cent, as is the case with the new consumption tax, the new hidden GST, and the federal government pays out $961 million in compensation, the federal equalization formula must kick in.
Whether we like it or not, it is automatic. Put a 15 per cent consumption tax base in the equalization formula, a reduced base, and after the fourth year or maybe after the third year or maybe immediately-we do not yet know the specifics of the political deal signed between the Minister of Finance and the three maritime provinces-given the equalization formula, Canadians will necessarily have to pay, not for four years, but ad vitam aeternam, as long as the principle of equalization is in effect in this country.
This is a bad deal. Because we are making people aware of this bad deal, because we are bringing to their attention your poor management, political deals made to give the impression that the government is acting on the Prime Minister's commitment to eliminate the GST, we are being gagged. It is not right to deal with such important matters in this manner.
I would be very careful if I were you because, when you go back to your ridings this weekend or the next, you may find that some of your constituents are disgruntled. During the 1993 election campaign, some people thought: "Wow, this will be a good government. It will abolish the GST, scrap it. We will vote for them".
But the situation has changed since Monday. The Minister of Finance admitted he cannot keep that promise, while the Prime Minister told us they had kept it. Who should we believe? I think we must trust the intelligence of Canadians. They know perfectly well that the GST is there and for a long time, but that it will be hidden from now on.
So I think a lot of your constituents will be waiting for you with two messages by next week: you did not keep your promises and the government acted hypocritically.