Thank you, Mr. Speaker, for clarifying that.
The member for Waterloo—Wellington talked about some of the amendments which redefine spouse, survivor and so on. He indicated that parliament was merely keeping pace with court actions. That was quite a statement. On this side of the House we would call that judicial activism. The government of the day abrogated its responsibilities on politically correct or sensitive issues to the unelected courts. It is back door democracy.
I will refer to some comments made on Tuesday by the member for Mississauga West. At one point he said the $30 billion pension surplus was generated primarily through good management of the pension fund. That is a real oxymoron when it comes to government generated returns on anything.
I wonder how he would define the $13 billion taxpayers had to put into the fund at one point to make up for shortfalls, or the fact that the surplus was the result of a disastrous economic philosophy in the 1980s to fight inflation with high interest rates and wage freezes.
Does he also think it is good management, especially in light of future possibilities of shortfalls or setbacks in financial markets, for his government not only to arbitrarily seize a $30 billion paper surplus but also to have used accounting tricks to date to drain off $10 billion before now?
He claimed yesterday that his government should identify surpluses in each and every plan, in each and every department, supposedly to pay down the debt. We know it will not go there.
There may be merit in doing that, but what is the government doing instead? I direct the member to the budget figures which show a $4 billion overdraft on the spending projections and a debt frozen at $580 billion into the foreseeable future. If the shuffling contingent of Liberal backbenchers from Ontario had any clout or economic sense, they could convince their future leader to freeze spending and actually reduce the debt rather than let it sit there like a leech sucking the lifeblood out of the Canadian taxpayer. It amounts to $42 billion a year in interest payments and it is not going down.
Bill C-78 deals with a very contentious issue for which governments across the country have never shown much enthusiasm. Who owns any pension surplus? Since employers and employees contribute to the original funds it would seem fair to divide it between the two parties somehow. An alternative could be to reduce the contributions and/or raise the benefits, or perhaps arrange for some kind of one time payout to both side, something that is equitable. The federal government says no. It has its hands on the purse strings and claims the spoils for its own purposes, whatever they might be.
Members opposite have tried to question our integrity on this side for not wanting to back the government on this matter, but let us look at what it is really doing. It froze wages for six years so that anybody still in a particular job classification has not had a raise for a while. That depresses the liability for their ultimate pension level.
In 1996 we recognized a growing surplus sitting on the government books, certainly not sitting in a vault somewhere. There is no cash pool somewhere as some would have us believe. The wizards at finance waved their magic pencils and turned red ink to black. Some $10 billion in liability disappeared without debate or vote, or any consultation with the people involved.
Members opposite will rightly give us credit for being in favour of reducing government liabilities, but the way to do it is not in the backroom, without consultation and, worst of all, in a one shot deal which does not get to the root of what is wrong with government, excessive spending.
We see the finance minister raid the so-called EI fund. We see him lay claim to the public pension surplus. We see him prebook future expenses to hide taxpayer surpluses today. That is not the way to balance the books. That is not fair because he will run out of unguarded accounts to claim. Inevitably there will be dips and bumps in the road that will cause our economic performance to fluctuate in the days ahead.
What if the interest rates rise as they seem poised to do in the States? The burden represented by that festering debt will grow in leaps and bounds just when the North American economy slows down, as it surely will. At that point will the Liberals be prepared to give up their support for porno films and kite flying projects?
Even with Bill C-78 on the order paper the finance department projections leave the $580 billion debt untouched. In other words, it has not committed to subtracting this $30 billion windfall. Left as it is, interest payments drain over $40 billion from the government's books every year before it has paid for a single mile of road or another hospital bed that is so badly needed. That is not prudent or responsible. The fundamentals are not right.
Members opposite will claim that the pension surplus will be devoted to debt reduction but we have no assurance of that. We suspect the $30 billion will be used to finance pre-election goodies and canoe museums. The Liberals have to admit their track record would suggest that this is a more likely outcome than debt reduction or that much cried about tax relief.
The opposition parties have put forward over 50 amendments to bring accountability and openness to the process of reforming the public service pension system. Let us be clear on this. The pension system was out of date and the unions and the pensioner associations agreed that something needed to be done. I am sure they can see that it was time public service employees accepted their share in CPP premium increases and re-balanced that proportion between the public pension and the government pension premiums. I understand that the employee representatives also agreed on the mandate for the new pension investment board.
The question before us is not is it good or bad to have a new investment regime for public service pensions or is it good or bad that it should be done by an arm's length investment board. The question before us is simple. Has the government been open and up front about how it has managed the previous system? I do not think so. Has it developed the best possible new system and is it entitled to walk away with $30 billion to squander on programs that it likes? I do not think so and the majority of Canadians agree.
The Reform Party, particularly through the strenuous efforts of the member for St. Albert, has tried to wrestle this massive bill into some sort of responsible direction. Our amendments would bring accountability to the process.
For example, we recommend that the board of directors of the new investment board maintain contact with the actuaries of each fund under their management. It sounds like a simple business procedure. We want appointments to the board as well as those to the investment committees to be tabled in the House. We want to delete the clauses which allow the government to make off with the surplus in the first place. We also want a separate act to set the contribution rate for the RCMP superannuation fund, not have it determined behind closed doors.
We also have a problem with the vague and unnecessary interference with personal relationships. A number of amendments in Group No. 2 refer to the problems that will arise as this government fumbles its way toward accommodating special interest lobbies.
The Liberals have attempted to socially engineer the public service pension system by introducing the vacuous term, survivor, 249 times in this bill. They also introduced the qualification, relationship of a conjugal nature, to modestly describe same sex partnerships. Who will keep score? How will we stay on top of that? Or at least that is what we are left to assume. The terminology is vague and will no doubt open up a whole new can of worms when some other groups decide they have been left out.
It has been estimated that the cost of recognizing same sex partners in Bill C-78 will be quite small, but this is not the issue. If the government wants back into the bedrooms of the nation that it supposedly vacated 20 years ago under Prime Minister Trudeau, then it should bring the issue to the floor of this House, not the courts. It should offer genuine and open debate and create legislation that addresses what needs addressing, not drop confusing hints and ambiguous references in this omnibus legislation.
The Reform Party recommends the surplus be left where it is to smooth the transition to a new and better administered pension system than we presently have. We are in favour of reduced government liabilities and better returns for our Canadian pensioners, but we cannot support slippery, open-ended and underhanded methods of financing re-election campaigns that we see in this bill.
As my colleague from Medicine Hat has said in the past on the EI grab, why does the finance minister not just leave the money where it is, put his hands where we can see them and back away slowly?