Mr. Speaker, in response to the hon. member's question, I must say it is, once again, going overboard a bit to say that harmonization has generated billions and billions of dollars for Quebec's coffers.
Yes, I am aware that some input taxes are reimbursed, but as he said himself, Quebec had to raise corporate taxes to compensate. Businesses have been taxed more heavily than in the other provinces, contrary to the situation in the maritimes, thanks to the compensation and subsidies they are given.
Furthermore, I think it is completely wrong to say, as the hon. member has, that harmonization has generated billions and billions of dollars for Quebec's coffers. What has happened is that all of this harmonization has been done at the expense of small and medium sized businesses, with no financial assistance, as well as at the expense of the Government of Quebec.
I would like someone to give me an explanation. The GST was, and still is, 7 per cent, and that portion goes to the federal government, as in the maritimes. When there is talk of having harmonized the GST, that is not totally true. It is still 7 per cent, except that the provincial sales tax has been harmonized with the GST. If we look at Newfoundland as an example, its sales tax was 13 per cent, which was brought down to 8 per cent in order to make a harmonized tax of 15 per cent. The shortfall in provincial tax will be made up with equalization payments.
Is this what they call harmonization? The federal government will make up the shortfall in provincial taxes with equalization payments. That did not happen in Quebec with respect to input taxes, because there were exceptions in that area.
I believe it is totally erroneous to state that harmonization has generated billions and billions of dollars for Quebec's coffers. To be fair, since $961 million was paid to the maritimes, the same compensation would have to be offered to Quebec. Moreover, last August, when the provincial premiers met in Jasper, they were all in agreement that, if there were harmonization, compensation would have to be equitable for all provinces, but that is not what is being done.