Madam Speaker, I thank the member for Esquimalt-Juan de Fuca for his comments.
I believe firmly that exports are a key to Canada's growth. Our government has done an incredible job in this area. Our exports to the United States have reached record highs.
To accomplish that we have travelled abroad with Team Canada, which resulted in the landing of a huge number of business deals.
In addition, in terms of trade barriers the government has been very active in breaking down trade barriers around the world and in forming regional trading agreements with NAFTA, Chile and Israel. There are more on the way.
The member mentioned a number of points including the CPP. The government is investing in the Canada pension plan to make it actuarially viable in the future. It is not unlike the pension plans of many corporations that are out of date with respect to the age mix and the demographics. The population is getting older.
As a government we are not doing anything different from what many corporations are doing. We see on their balance sheets that their pension plan is actuarially underfunded and they will build up the fund over a number of years. This is the responsible course to take.
With regard to transfer payments, our transfer payments to the provinces after considerable warning have been coming down at the rate of 4 per cent to 5 per cent per year while we have been cutting our own programs by 8 per cent or 9 per cent.
If we look at federal transfers in Ontario they comprise 2 per cent to 3 per cent of total government revenues. If Ontario is having some difficulties in funding health and education, it has nothing to do with federal transfers. It has everything to do with the Conservative government's provincial tax cut. It has made those choices and has set those priorities.
I agree with the member that we need to bring interprovincial trade barriers down but not in the high handed manner proposed by the Progressive Conservative Party. We have to be assertive but we have to work co-operatively with the provinces.