Mr. Speaker, I had the pleasure of participating in the hearings of the Standing Committee on Finance in Vancouver. I was impressed by the line from Flaccus of fate casting lots for the high and the low. Everybody came along, the high barons of industry, the trade union bureaucrats, very powerful people, learned professors and not so interesting professors occasionally of economics and journalists, but it was an exercise in public participation.
When I look at the report and try to assess how many witnesses appeared, how many depositions, the answer is it was an exercise in participatory democracy. I think that is one of the legacies of the patriation constitutional process of 1982, the fact that one took little steps but they are now becoming further steps.
I am reminded of this when I get letters from people saying that the MAI project, for example, is being hatched in secret and by an elite. We look at the process with MAI and to become law in Canada, we would need a signature on a treaty if and when a text is adopted, we would need a ratification of the treaty, we would need implementing legislation, federal and provincial I think in that case. That is a lengthy process, which is still incomplete in Canada in relation to the Law of the Sea. We are 14 years away from the first signatures, and still incomplete in many other areas.
I also look at the witnesses who appeared before the standing committee of this House on foreign affairs on MAI. I find 35 witnesses again covering the whole spectrum of society and the whole range of informed opinion on economic matters and 125 separate depositions. That is not a secret process. When we consider it will be open in the future if and when an agreement comes back from the OECD on MAI, the same issue will come again, implementing legislation with public debate.
This is a process we are engaged in with great success and with a large degree of collegiality if we follow the achievements of the committees of this House. I sat on the foreign affairs committee this morning. I noticed on two potentially very controversial subjects a consensus resolution was met. In one case it encompassed all parties and in another case all but one. That is an achievement.
I congratulate the Standing Committee on Finance on an expeditious process with all deliberate speed, producing a report and producing some recommendations with considerable substance in them.
Allow me, if I may, to comment on the first and general ideas here, the commitment to fiscal integrity which was the key point in the present government's successful campaign in 1993: balance the budget and reduce the external debt.
I would essentially agree with the tenure of this report as I heard witnesses before the committee that Canadians want us to hold the line on that. We want fiscal integrity. We want a balanced budget. It will be achieved before the end of the budget year 1998, several years ahead of our original schedule, and we are attacking the external debt.
However, Canadians want continued investment in health and welfare in the community facilities necessary to maintain a healthy and decent society, which means commitments to pensions and to medicare, the most single Canadian contribution I think in this hemisphere. Only the German's Bismarck in the late 19th century I suppose preceded us, but we have concretized it in a way other countries have not.
I believe I will concentrate on a point that is in this report but is worth special attention. The hon. member for Kings—Hants referred to it previously. It is the investment in knowledge, the recognition that the next century is a knowledge based century and dependent on having an informed, trained, talented and imaginative workforce. The key to job creation is in investment in knowledge and research.
What is known popularly as the Japanese and German syndrome, the defeated countries after World War II invested in pure research. There are no immediate returns in pure research but five or ten years down the road, you know that you are leading in science and technology and that your industries that understand this are beating all competitors.
That shows up in the foundation for innovation, the $800 million for that, developing the infrastructure and rebuilding it in medicine, engineering and the sciences, the centres for excellence networks, the millennium scholarships, the increased relief to student loans and the post-secondary education debt relief.
I will mention that I have had communications from the heads of universities in the last few weeks asking me to make the case for maintaining the grants to the federal granting agencies, the NRC, the SSHRC and the Canada Council. There was a time in western Canada when we complained that these bodies had a certain eastern Canadian mentality, that the grants seemed heavily weighted in favour of what we call central Canada. I am happy to say that the university presidents tell me that this is being corrected and has been corrected in large measure and they would like to see the grants returned to full vigour; that is to say, the equivalent in 1997-98 of what the grants were before the cuts. I would endorse that.
The intelligent choice of projects in which to invest is the key to an intelligent and reasoned approach to developing our science and technology for the next century. I think this is a recommendation that could come forward from the House to the government in the elaboration of the next budget.
When we were making the case for Triumph, the $167.5 million grant to the University of British Columbia base research in folic physics and particle physics, one had to explain what this was about, but the most telling argument was the spin-off in high talent, high intelligence based industries in British Columbia. We were able to point to a $200 million export contract enrichment in one year alone and the jobs that it brought.
I think that is the key to what we are talking about. If we are competing with other countries which have larger population bases and perhaps larger resources in other areas, we do it by increasing our investment in education, by making it not really up to world standards but making an issue of leadership.
This brings us to one other area which I raised in my question to the member for Kings—Hants. I think it is necessary to have a federal role of leadership in education, in science and research. It is not merely a matter of creating the national standard, it is not merely a matter of bringing economically less favoured provinces up to national standards. One remembers Nova Scotia, which is certainly not a wealthy province, but for many years it was considered the cradle of education in Canada and there was an extra degree of devotion among Nova Scotians who were poor but honest, some say, to education.
But, look, that is falling away when one looks at the position of the universities and colleges in Nova Scotia. So, a federal role is necessary and there is a certain sense of equalization in education, but much more I think the vision for what is needed in terms of international competitive industry and the research base in science, technology and engineering that will be the precondition for that. I think that requires a federal leadership.
My plea in the budget, as is recognized in the Standing Committee on Education, is to make sure that this is a recognition of the knowledge century and the investment we must make in funding the science, technology and pure research with the skilled people who bring that to a conclusion.