Mr. Speaker, I think it is no surprise to the House that I have had deep reservations on the social union agreement that was struck on February 4. I hate to rain on the minister's parade, but it is interesting that just six days after the fact, the C.D. Howe Institute has released a report by William Robson and Daniel Schwanen entitled “The Social Union Agreement: Too Flawed to Last”. It states that while Canadians “might reasonably have expected to strike a deal that would have sorted out federal-provincial overlap, made federal-provincial transfers fairer and more transparent, and brought Quebec in as a more co-operative partner, the agreement reached on February 4 failed on all these counts”.
The federal government can spend money in areas of provincial jurisdiction with the support of six provinces. If it is the six smallest provinces in Canada it could mean that as little as 15% of Canada's population will determine the programs. I suggest to the minister that the seven provinces representing 50% of the population would have been much more representative and much fairer to Canadians. This is the recommendation the Reform Party has made in the new Canada act.
Under this arrangement the federal government will still be able to initiate programs like the millennium scholarship fund with the exception that it now only has to give the provinces three months notice. It is not going to stop the interjurisdictional conflict that has existed in this country for the last 50 years.
While the richer provinces will be paying the lion's share for any of these new programs, it is the poorer provinces which can dictate what programs will be activated.
The C.D. Howe report also shows that residents of the three so-called have provinces, B.C., Alberta and Ontario, will loose money with the announcement of more dollars for health care because of the federal bias in the transfers to the provinces. It is not just with equalization where this happens, it is with the transfer of programs that the federal government has to the provinces.
For every additional dollar spent on health care the residents of Ontario and Alberta will have to contribute an additional $1.30. To get that additional dollar British Columbians will have to contribute $1.10. For the provinces of Ontario and Alberta for that extra $100 the federal government transfers for health care they will in actuality only receive about $60. One has to ask how this agreement managed to find signatures on it.
As has also been reported, the proposed tax cuts in the federal budget will automatically result in less tax revenue for the provinces with the exception of Quebec. Where will there be actual dollars to put into health care?
The C.D. Howe report also mentions the concern of isolating Quebec. The minister made great efforts this afternoon to assure the people of Quebec they will be considered the same as all other Canadians. This agreement leaves two classes of Canadians, those in Quebec who will not be subject to the mobility and non-discrimination commitment, and those outside Quebec who will be.
For example, Quebec is the only province to charge higher tuition for out of province students. Quebec's failure to sign on will leave this situation as it stands. How long will the people outside Quebec tolerate Quebec students being able to pay the same tuition as their children in their provinces, while their children who want to study in Quebec will have to pay more?
As I mentioned last week, the Prime Minister missed a wonderful opportunity to sign a truly historic agreement that was all inclusive. The only reason for this missed opportunity was this government's reluctance to give up power, control and credit.
Members opposite want to get pictures of themselves handing out the cheques. What they fail to mention is that the money that is the basis of those cheques does not belong to the federal government. It belongs to the taxpayers of Canada.
Why do they fail to mention that? Why do they practice photo opportunity politics?
The report recommends that the provinces must seek ways of reopening the social union contract so that Quebec can sign on. Since the agreement contains provisions for re-evaluation after three years, an opportunity to establish more extensive opting out provisions balanced by more stringent obligations of transparency, portability of programs and credentials, and respect for the citizenship rights of all Canadians will arise shortly.
Preparing in advance would help to ensure that this accord's failings, Quebec's exclusion prominent among them, are not repeated. In other words, the federal government should have followed the Reform Party's new Canada act which gave good guidance in how Quebec could have signed on.
The official opposition hopes that a new spirit of federal-provincial co-operation has indeed occurred. However, rest assured we will be prominent in pointing out any and all instances where this government is letting down the Canadian people.