Mr. Speaker, I thank the hon. member from New Brunswick for his question.
When the federal government dealt with our budgetary deficit it was unrealistic to expect we could not deal with federal transfers. We had to deal with federal transfers which comprise 20% to 25% of the total budget of the federal government.
We gave the provinces the lead time required. We told them that some modest adjustments were coming and we gave them time to prepare.
With respect to New Brunswick, the figures the member opposite is quoting may be slightly out of context. If we look at the federal government transfers to New Brunswick, from the year 1993-94 to 1998-99, including equalization and the Canada health and social transfer, it has actually gone up, although not by a large amount.
In 1998-99 transfers to New Brunswick will exceed $1.5 billion. They will account for about 34% of New Brunswick's estimated revenues and they are expected to total about $2,000 per person, which is more than 75% above the national average.
With respect to New Brunswick I think our government has been very fair and the equity is obvious.