Mr. Speaker, there have been some comments made by members across the way that I think need to be corrected. There was an assertion that there was political interference in the budgetary deficit of the province of Newfoundland and Labrador that could be mysteriously re-corrected by some political interventions by the federal government in order to solve a political problem.
The hon. member has demonstrated that he clearly does not understand equalization. Therefore, when he makes these assertions about the effects of tax cuts and other measures, he is obviously talking from a very ill informed point of view.
Equalization works on the basis of a formula. It is a very transparent, very accountable process that is defined and entrenched in legislation. The payments that are given to the provinces over the course of time are based on the formula. There are adjustments to the variables which are input into the formula based on facts: population statistics, growth in the economy, growth in the ability of the province to tax. Those are the basic variables that are put into the formula, which is very accountable, very transparent and very upfront. It is not subject to political manipulation.
During this entire conversation hon. members opposite have been speaking about the positive influences and effects of a $384 million tax cut for Newfoundland. I would like the hon. member to go to Newfoundland and ask this simple question of Newfoundlanders and Labradorians: “Do you think that it would be acceptable to cut $384 million in public programs for health, education and social services?”
I would like the hon. member to ask that question. That question was asked in the provincial campaign. The answer that Newfoundlanders and Labradorians gave was emphatically and categorically “No. We want strong public institutions and the ability for people to provide for each other”.