Mr. Speaker, I am pleased to have the opportunity this afternoon to participate in this prebudget debate.
I know that traditionally this debate focuses on the report of the finance committee's fall hearings, but today I want to take the opportunity to report on prebudget consultations that I and my NDP colleagues have been holding around the country. We have returned to parliament having consulted with a lot of Canadians on their vision for a renewed Canada and on the budget priorities needed to translate that vision into reality.
People we have met in every corner of Canada are concerned about the crisis in health care, the escalation of child poverty, the gutting of unemployment insurance and the national emergency in homelessness. These are the devastating deficits created by this government's reckless disregard for the health of families, the health of communities and the health of our national economy.
In a series of community based economic round tables over the past two months bringing together people from all walks of life and all segments of the community to share their ideas on job creation, we heard very different views and priorities from those advocated by the Liberal majority on the finance committee telegraphing no doubt what the finance minister will say on budget day. Those Liberals think it is enough to cut the surtax for those in the highest income bracket and to throw a few token dollars back into health care.
Now that they have made the sacrifices to balance the budget, Canadians want the federal government to reinvest in the social programs that bring security to their lives and stability to their communities. They want some leadership from the government in tackling the challenges of the new economy.
When it comes to health care the Liberal government refuses to listen to Canadians. Emergency rooms are overcrowded. Waiting lists are getting longer. Hospitals are discharging patients earlier and earlier without publicly provided home care being there for them. That is why only 30% of Canadians give our health care system a favourable rating today compared to 60% in 1991. It is why there are growing fears that our health care system, a uniquely Canadian combination of innovation and social responsibility, is going to surrender to a foreign American style two tier health care system.
This government is busy advertising the upcoming budget as the so-called health budget, and yet having taken $2.5 billion out of transfers in each of the past three years, all finds would suggest it may restore less than one-quarter of what it has ripped out of the health care system. Having reduced the federal share of health spending from the original 50% to 11% today, the Liberals have the gall to lecture the provincial governments about their responsibilities for health care. An immediate injection of $2.5 billion into health transfers to the provinces this year is the minimum required to get our health care system off the critical list.
Second, any health accord between the federal and provincial governments must generate secure long term federal funding to enable the provinces to deliver home care and pharma care programs at a standard adequate to meet the needs of Canadians regardless of where they live.
A decade has passed since parliamentarians in the House unanimously endorsed Ed Broadbent's motion, my predecessor, to end child poverty in Canada by 2000. It will be the shameful legacy, the most lasting and damning legacy of this finance minister that on his watch child poverty was proclaimed a national tragedy and homelessness a national emergency in communities right across the country.
Canadians are disheartened by the federal government's abandonment of all responsibility for social housing. They are humiliated at the UN's condemnation of federal Liberal policies that have dramatically increased poverty and homelessness during a period of economic growth, fuelling deeper and deeper divisions in Canadian society, and deteriorating conditions most drastically of all among our aboriginal peoples.
Millions of Canadians do not need experts to tell them about poverty and homelessness because they experience it every day in their lives. Others who may not experience directly the punishing effects of this abandonment nevertheless share the sense of loss. Canadians want a recommitment of a significant, not token, federal role in social housing and leadership in the reduction of poverty in our midst. If this government's betrayal of the poor and homeless has resulted from heartless neglect, erosion of our employment insurance system has been an act of wilful sabotage.
The government set out to destroy deliberately what little security was offered by employment insurance, and it succeeded in spades. Over 70% of unemployed Canadians received insurance benefits in 1989. Less than 40% do so today. In my riding of Halifax it is down to 29%.
Tragically and predictably, this has imposed great hardship on many families. It has driven many more into the ranks of poverty. It has also sucked tens of millions of dollars from local economies in communities right across the land.
The federal government must stop funding its general programs with resources collected from employers and workers for the benefit of the unemployed.
The upcoming budget must recommit employment insurance funds for their intended use, for adequate income replacement for unemployed workers and for investment in training and other active transition measures.
The government has acted with the same lack of social responsibility with regard to post-secondary education. The Liberals have simply transferred a portion of the federal debt on to to the personal debtloads of Canada's young people. In some parts of Canada we have a university system today that is public in name only. Tuition fees have skyrocketed beyond the reach of most working families. Our so-called public universities are being transformed into institutions for the privileged elites.
This government has betrayed a whole generation of young Canadians in much the same way that it has betrayed its own women employees in its refusal to negotiate in good faith on outstanding pay equity claims upheld by Canadian courts.
The first call on the budget surplus therefore is for government to begin repairing the damage that its policies have inflicted on our social fabric, on our communities, on our hospitals, on our schools and on the programs which extend support to the unemployed and our most vulnerable citizens who for whatever reasons are not able to fend for themselves. Canadians insist that their government fulfil these social responsibilities in a fiscally responsible manner.
For decades we have watched Liberal and Conservative governments adopt policies that led to annual deficits, a ballooning debt and rising personal taxes. This happened not because the government was providing more and better social programs. It is quite the opposite. The mounting debt and higher personal taxes resulted from the artificially high interest rates forced on this country by the Bank of Canada. In an act of supreme irresponsibility, the Bank of Canada knowingly deepened the last two recessions leaving lasting scars on both the public finances and on the lives of millions of ordinary Canadians.
As a result of that colossal blunder, Canadians are now paying higher taxes for fewer public services, paying more on interest payments on the debt than on any single social program. It is a bit like a family paying ever higher and higher mortgage payments on a house that is getting shabbier and more run down every year.
We must reverse this situation and we must begin with badly needed renovations on our house while also reducing the burden of our mortgage payments.
Canadians therefore want and deserve a fairer tax system. They want the debt problem addressed. It is not a question of whether these things should be done but a question of how.
On taxes the Liberal majority on the finance committee apparently thinks that the first priority should be to remove the surtax on those in the highest income bracket. We in the New Democratic Party think there is a fairer and more effective way to grant tax relief. The first priority must be the tax reduction that will benefit the most people, a reduction in the GST.
Let me remind the House that a 1% reduction in the GST will give the biggest boost to the economy and create the most numbers of jobs while giving desperately needed tax relief to ordinary families.
On the debt, indications are that the finance minister wants to spend most of the surplus on direct repayment of the fiscal debt. This would be as imprudent and irresponsible as incurring another round of deficits.
With the uncertainties in the global economy Canadians could face a recession in coming months. We have already seen the terrible impact that the collapse in commodity prices has had on farm incomes. The federal government has been desperately slow to respond to this crisis in our farming communities and must do so now, adequately and decisively in the upcoming budget.
Because of the threat of a severe economic downturn resulting from the crisis in international markets it would be irresponsible to add to these risks. Overly aggressive debt repayment would put an additional drag on economic growth. Ironically such an ill advised course of action could slow down the economy to the point of forcing us into a deficit situation next year. That is something we must avoid. We need an approach that balances the need to lessen the burden of interest charges on the debt with the obligation to avoid risks with the economy.
Recommitment to social responsibility and a responsible balanced approach to spending, tax relief and debt reduction are the things Canadians want in the upcoming budget. These questions have been on the agenda for more than two decades. Canadians are looking for some leadership, some vision and some imagination in dealing with the challenges of rapid technological change in a world of global economic uncertainty. That leadership is needed to tackle the continuing high rate of unemployment and severe under employment that plagues too many Canadians.
The most recent disastrous decision that shows the government's insensitivity and unwillingness to respond to those continuing high levels of unemployment is its decision last week to pull the plug on Devco, an important engine of economic activity and growth in the Nova Scotia economy, a community suffering from an official unemployment level of over 20% and unofficially estimated to be above 40%.
Leadership is also needed to reduce the insecurity and stresses on families struggling to deal with deteriorating health care, escalating education costs and the erosion of vitally important public services. In the past 15 years the two parties holding government in this country has pursued virtually the same course, reduce inflation, cut the deficit, slash social programs, weaken worker ability to bargain selectively and somehow we will all be in economic clover. This government calls it getting the economic fundamentals right. It has not worked. It is not going to work to improve the living standards of ordinary people. It has not worked to lift families out of poverty. It has not worked for the homeless. The earnings of low and middle income Canadians have fallen rather than risen in the past decade. Ordinary Canadians are working harder and harder for less and less.
The government's formula has not worked in its own terms. Getting the economic fundamentals right, as it loves to say, has not got the economic fundamentals right. The Canadian dollar has declined to a level that would have been unthinkable a decade ago. Economic analysts are unanimous in condemning the Canadian economy for one of the worst records in productivity growth among the major world economies. Despite generous tax measures in place, corporations in Canada, especially foreign multinationals, rate very poorly in research and development, one of the keys to future economic prosperity.
To ensure the vibrant economy that we need, to create the badly needed jobs and to sustain the social programs that Canadians cherish we must get beyond the complacent and lazy notion that getting the economic fundamentals right is enough. Canadians need government to encourage the kind of economic practices that will lead to a genuine widely shared prosperity that enables ordinary Canadians to make a rewarding life for themselves.
The first challenge is to reinvest in our social programs. This will benefit the economy in general and it will generate decent, rewarding jobs in health, education and other vital public services like environmental protection and clean-up, benefiting those who fill the new jobs but also the community where those jobs are created.
The second challenge is to ensure that the savings of ordinary Canadians are channelled into the long term responsible investments that will lead to improvements in productivity. Our current tax system treats short term speculation in exactly the same way as long term investments that create productivity improvements and sustainable jobs. This has to change. Our productivity challenge is to find practical ways of encouraging pension funds and other pools of savings into the kinds of investments that will improve productivity and assist community economic development.
We must make sure that everyone, not just computer wizards, gets the training they need to keep up with the dizzying pace of technological change. Canadians need ready access to educational opportunity and we must find ways to get employers to do a better job of investing in on the job training.
When profitable companies like Bell Canada sell off one of their divisions to avoid paying their pay equity obligations and to drastically reduce the pay and benefits of long service employees, there is something seriously wrong with our economic culture. An economy without expectations of corporate responsibility, where decision makers put shareholder value above all other values to the exclusion of their commitments to long serving employees and above their community obligations is one that is surely failing. As long as employees have no reason to trust in the good faith of their employers, no sense that their loyalty and service will be respected and rewarded, our economy will not be as productive as it needs to be.
In the case of Bell Canada the CRTC must review whether Bell Canada's actions violate federal regulations, but in general Canadians expect their government to start building the framework for an economic citizenship where economic decision makers are bound not just by the short term bottom line but to their responsibilities to communities where they do business, to the environment and to their employees.
The performance of our economy is not only a question of the quality of our technology. It depends on the social capital of trust between employer and employee in a democratic workplace and on the good citizenship of economic decision makers. To build such an economic citizenship in the context of globalization is a huge challenge and one that cries for federal leadership.
Another economic challenge requiring imagination is the situation facing Canadian families who are increasingly stressed out trying to juggle work and family responsibilities of children, of frail family members and of elderly parents. There is a shortage of affordable quality day care and no financial support for parents who care for their young children or elderly parents at home. Inflexible work arrangements make it difficult for parents to be at home when kids are forced to stay home sick or when kids return after school.
Neither the government nor the private sector has begun to meet the challenge of creating arrangements that reconcile a thriving economy with a thriving community that meets the needs of families. Canadians need their government to make this a priority. They need solid progress toward this important objective.
In conclusion, to make progress in these areas will take imaginative visionary leadership. Canadians are not getting that currently from the government or their Prime Minister. How typical of the Prime Minister's arrogance and petty mindedness when before Christmas he said to Canadians that some mornings he wakes up and he feels like giving the provinces some more money for health, and other mornings he wakes up and he does not feel like giving Canadians more money for health. He might as well have said let them eat cake.
Canadians deserve better, and on their behalf we demand better in the upcoming federal budget.