Mr. Speaker, my first reaction when I read the bill on the GST was to say: "What a fine gift the government has made to the Quebec sovereignists".
Here we have a demonstration, in a new instance, of how the federal system unfairly treats one or another part of Canada, especially Quebec, which is of concern to me, at a given point in time.
Let us think about it: the federal government signed an agreement with the maritime provinces giving them $2 billion in compensation, that is, it will pay the maritime provinces $2 billion in compensation. So, we can say that some $500 million comes from Quebec taxes-that is, about one quarter of the taxes from one quarter of Canada's population.
This is $500 million that Quebecers will give to the governments in the maritimes through the federal government. In the end, this will mean that New Brunswick, for example, will receive compensation of $400 million, and the provincial government will be able to boast: "Taxes have been lowered here. Move here. We are the best spot in Canada".
Obviously, they are not going to boast that part of the reduction in taxes comes from compensation for the harmonization of the GST. Some of the money even comes from Quebecers. This is why I say it is a great argument for the sovereignists. As former Quebec premier Mr. Duplessis said: "Donnez-nous notre butin". There was also "Maîtres chez nous", because you can be sure that, if we had control over all of Quebec's taxes, no other province would get a gift of this sort. In today's world and with today's competition, this sort of situation is completely unacceptable.
To add insult to injury, Quebec's sales tax has been harmonized with the federal tax for several years now. Quebec was the first province in Canada to harmonize in good faith. It even repatriated federal officials. It got no financial compensation for doing so. It simply considered it a worthwhile administrative move that would produce interesting results and reduce paperwork and bureaucracy.
So there was no compensation. Why does the federal government now think it would be worth paying up to $2 billion in compensation? That is the political price it must pay for its promise on the GST. It is trying to hide as best it can the fact that it has failed to keep its promise.
In fact, this seems to be the norm with this government. Whenever they make a blunder, they fork out compensation. The fact that the money comes out of taxpayers' pockets does not seem to matter too much. It was the same thing in the Mulroney affair. They forked out millions of dollars to cover the mistake made by officials at the justice department. Same thing with the GST. A promise is a promise. Election promises must be kept at all cost. They just spend as much as they need to disguise the facts and avoid embarrassment.
But the voters will not be fooled. What is more, it is becoming obvious that there may be justice after all. The confusion created by the new legislation may well backfire on the government, and it will have to shoulder the responsibility for it.
At a time when disparities are to be eliminated and national standards imposed across the country, there will now be a place in Canada where the tax will be incorporated in the sales price, while that will not be the case in the rest of Canada.
Companies that do business nationwide will find themselves in a very complicated situation, having to live with two different systems for registering the tax. This is absurd.
This is not a bill we as parliamentarians should be proud of. We still have the chance to make it right. I do hope the federal government will find a way to deal with the inequities and other problems caused by their legislation. This bill is quite thick. The government is trying to ram it though. The goal is to make sure that, during the election campaign, the government can claim to have reached its stated objective regarding the sales tax. The GST did not disappear, but another solution was found: it was harmonized. But at what cost? Who cares?
Two billion dollars in compensation: Was this the price to keep Liberals from Atlantic Canada from speaking out on the employment insurance reform? I do not know. It maybe that the enormous amount of money involved has something to do with this. Maybe it was thought that this amount would make up for the shortfalls suffered by the seasonal economies of these provinces, following the implementation of the employment insurance reform.
There is nothing wrong with helping regional economies make adjustments. The problem is that the government chose specific regions but ignored other ones, such as Quebec, and particularly its eastern part, which I represent and which is in direct competition with the maritimes.
There are businesspeople in my region who wonder whether there is a balance, a fairness in how businesses are treated by the
two provincial governments. These people wonder if they are treated properly, if their business benefits from a favourable bias. When they assess the situation, they might think that the tax reductions in New Brunswick, as well as certain dynamic factors and the lack of environmental constraints make that province very appealing from a business standpoint.
Why is that? One explanation is the $2 billion that will be given to the maritimes to compensate them for harmonizing their tax. New Brunswick will receive $400 million. Therefore, for a region like Madawaska, on the border of the area I represent, the economic fallout from this compensation will give a competitive edge that is unacceptable, even a bit upsetting for Quebecers. This is money from the federal government, so one quarter of it is coming out of our own pockets to help our neighbours compete against us. This raises some serious questions.
In a region like Témiscouata, people wondered whether to vote yes or no in the fall of 1995. It is not hard to understand that they are now leaning toward yes. In a situation like the present one, we realize that, once again, we are being penalized by federal management and that this will have a direct and serious economic impact.
How could the present government correct this situation? It should go ahead and agree to sit down with Quebec and negotiate the compensation that Quebec should receive for the trouble-free harmonization in that province. Harmonization was implemented a few years ago. It is working very well. The civil servants have all been absorbed into one government, the Quebec government. The results are interesting. The experience was probably even used by the federal government to persuade the maritimes of the feasibility of harmonization.
There is a price to pay, and if this government has a sense of fairness, if it hopes to show Quebecers that they are part of the Canadian federation, this is an example of something concrete they can do.
It is rather frustrating to have to keep defending ourselves, as if we were being forced to beg. Similarly, we had to keep on asking questions in the House for a month or two, to ensure that the federal government would pay its share of the bill for the Charlottetown referendum. In the end, we won our point. The Bloc Quebecois is a very tenacious party. We are able to sustain our points of view for a long time, and to support them with solid arguments, but in so doing it becomes obvious that the federal system will never offer Quebec a way to succeed in achieving equality. The solution lies in being fully responsible for our own decisions so we do not find ourselves in a situation where a majority, to which we do not belong, decides to take our money and to give it to another part of Canada, by creating undue competition.
This is a very clear example, a very obvious example, of something that is totally unacceptable.
Why has this bill been rushed through, without all of the proper consultations? Undoubtedly because the bill contains many problems, but mainly because it is inequitable. I hope that the government will listen to our arguments, because I am certain that all Quebecers will be attuned to them.