Mr. Speaker, I am pleased to speak to Bill C-70 this afternoon. I am all the more pleased, and I am not doing this out of spite, to say a word about the experience I had when the federal tax was changed.
When the federal tax was changed, we had an all-out war from the Liberal Party, which was then in opposition. Liberal members were adamantly opposed to the tax they were calling the new federal tax, although this was completely untrue. It was not a new tax, it was a tax reform.
We must remember that there was a federal tax before. Having been in business for 20 years, I know how much federal tax I used to pay during those years. We were paying a 13 per cent tax on goods. The manufacturer billed the retailer for the tax. It was a hidden tax for the consumer. The consumer did not see this tax.
The Liberals, then in opposition, started saying that this new tax should not be hidden. They tried to convince people that the Conservatives, at the time, were creating a new tax. They made such fiery and intelligent speeches-I think what they did was smart, but dishonest-they managed to convince people that the Conservatives were creating a new tax, while the 13 per cent manufacturing tax went down to 7 per cent at the retailing level.
The end result was about the same. In 1989, for example, total federal tax revenues were about $18 or $19 billion, while the reformed tax, which we now call the GST, brings in about the same amount. The difference is that, at the time, the Liberals were still saying that this was a totally dishonest tax because it applied to books, food and drugs. They made a big fuss, saying it was an immoral tax, an absurd, unacceptable, outrageous tax.
In my opinion, the bill before the House is even more outrageous. We had time to think things over. We heard witnesses, made speeches, informed the people, evaluated all the possible effects of these amendments. We realize, in Quebec particularly, that this tax will, in fact, affect the development of Quebec culture, of Quebec's very sizeable book market.
Quebec is a French speaking country. We have many writers, authors, and creators, whose books are read by a great number of French speaking Quebecers. That is why we, in Quebec, feel that our rights and privileges are being denied.
In Quebec, our approach has always been to use the tax to promote made in Quebec products. Once again, we must observe federal standards. The federal government is dictating which products are to be taxed. Cultural products will be taxed, and this will affect the development of our economy, of our writers and authors. This goes directly and totally against Quebec's wishes.
In Quebec, when we say we want to be our own masters, to decide our own fate, it is because we believe that we will do better if we are allowed to solve our own problems and to promote what we feel is right, if we want to grow, to create jobs, to increase our intellectual and economic potential, and if we can better share our resources. In Quebec, we want to build a better future.
Once again, today, we realize that the federal government just decided unilaterally to tax books, a move that will hurt our creators, our writers, our authors. As we know, there is a tremendous potential in that area in Quebec. A large majority of books are written in our province. A lot of research goes into that.
Whether it is in the areas of new technologies, education or health, Quebecers read mostly books in French that are often written by French speaking authors from Quebec. Our experts will be hurt, and that will thwart the development of Quebec. That is why we oppose this legislation and this change that will be prejudicial to the development of our book industry.
We realize also that we are hurt by the fact that the government gave compensation to the maritimes to get them to agree to harmonize the provincial and the federal sales taxes. Elections are drawing near. Elections were held just recently in Prince Edward Island, and the Liberals were defeated. The current trend does not seem to be favourable to the Liberals. They do not enjoy great popularity. However, this is a great gift the government has given the maritimes. Some say it is as much as $1 billion.
Quebecers will have to pay between 25 and 30 per cent of that billion dollars. That could represent a cost of some $300 million a year Quebecers would have to pay because they have to pay their share of the bill. That is a tremendous amount.
That is why the finance minister requested a few months ago a $1.9 billion compensation for previous years, as well as all the costs incurred by the federal government to generously compensate the maritime provinces who agreed to harmonize.
And not only do we have to pay the bill for harmonization with the maritime provinces, but Mr. McKenna, the New Brunswick premier, is using that money to set up shop in Montreal in order to lure Quebec companies into his own province. He is using the money we gave the federal government to lure our companies away. This is not fair-play.
This is one more proof that Quebec has been striving for years to get more autonomy, but will never get anywhere if it does not have full sovereignty. Quebecers will never be able to develop normally if they do not collect all their tax revenues, pass their own laws and sign their own treaties.
Quebec has great intellectual resources as well as tremendous natural resources. It has more markets than it needs. The only missing thing is that we have not yet taken full responsibility for our economic and social endeavours. The reason we sit here is to protect our interests before we reach full sovereignty. When we cross that threshold, Quebecers will prosper and Quebec will be one of the wealthiest countries in North America.