Madam Speaker, I am pleased to rise today to speak to this motion. The motion reads as follows:
That this House calls on the Minister of Finance to increase the Canada health and social transfer by $1.5 billion and forgo the $1.5 billion increase to federal grants and contributions in this year's federal budget.
All Canadians know that Canada's health care system is beyond sick. It is in a crisis. I believe there is one very fundamental reason for this.
From 1993 to 1999, health care costs have risen by $14 billion per year, or 19%, from $72 billion per year to $86 billion. In that same period, the cash transfers from the federal government for health and education fell by $6.3 billion per year from $18.8 billion to $12.5 billion. That is a drop of 34%. That is a cost increase of 19% and a decrease in federal transfers by 34%. Is it any wonder that we have a problem?
The government trumpets that it plans to put a cumulative total of $12 billion back into CHST over the next four years. Is that not special? What it fails to tell Canadians is that since it came to power, it has slashed a cumulative total of $25 billion from health and social transfers. By 2003-04 that cumulative total is expected to be about $35 billion.
The Liberals like to boast about the increase in tax point transfers but those points have remained unchanged since they were first introduced in 1977 while the discretionary cash portion has been slashed.
In 1977 federal cash transfers paid 19 cents of every health care dollar spent. By 1997 that was down to just 10 cents and still the government wants to tell the provinces what to do.
What are some of the realities of the Canadian health care system today? It is a system based on a 1960 socialized, state run model which has failed to evolve to address the realities of the 21st century. I am sure Canadians will be happy to know that our health care system is rated 23rd out of 29 countries in the OECD. I am sure they will also be just thrilled to know that there are only two other countries with similar health care systems to Canada's: Cuba and North Korea. That is wonderful company.
The current system is just not sustainable and the government knows it. Again there are some very simple reasons for this. In 1999, 12.5% of the population of Canada was over the age of 65. The projection for 2006 is 21.4%. That is one in five Canadians over the age of 65. Add to that the fact that Canadians of my age are on the leading edge of the baby boomer bulge and we will not reach age 65 until roughly 2012. Simply put, Canadians are living longer and the population is getting older. Again the current system is just not sustainable.
What about the costs related to new technologies? What about the costs of training people to work with those new technologies? Even if we succeed in training the required number of doctors, nurses, support staff and medical technicians, will we be able to keep them in Canada with of our outrageous taxes? That is a whole other debate.
I am afraid we have seen only the beginning of technological and professional shortages. The result has been an increase in the length of waiting lists by 43% from 1993 to 1998 and that shows no signs of going down.
What is the government's answer? In 1999-2000 CHST cash was increased by $2 billion, still short by $4.3 billion, still only 23% of what it was when it took power. Then, in the 2000-01 budget, it allocated just $1 billion more for health care, even though the budgetary surplus was $11.9 billion on January 31, 2000. At the same time this budget alone provides for an increase of $1.5 billion in federal grants and contributions, a one year increase of 11%.
The motion we are debating today calls for the government to forgo that increase in grants and contributions and to direct the funds instead into health care. It does not suggest that it slash federal grants and contributions, only that it forgo the increase.
It would appear that one of the biggest winners in this year's increase derby is, surprise, surprise, Human Resources Development Canada. Good old HRDC. For the last five fiscal years in a row, the Liberals have increased grants and contributions at HRDC. In 1996-97 they were $2.84 billion. This year they are expected to total $3.17 billion, an increase of 12%.
One would think that given the events of the past few weeks, the government would show some respect for taxpayers and, at the very least, hold the line on grants and contributions for this department until there is a full accounting of past moneys spent. The controversy surrounding the transitional jobs fund alone is reason enough. The TJF was $100 million per year. Its successor, the Canada jobs fund, has been increased to $110 million, while its unemployment criteria has been relaxed from 12% to 10%.
I am sure that Canadians would like some explanation as to just how it is that the Prime Minister's riding alone got more in TJF and CJF money than the entire provinces of Manitoba, Saskatchewan and Alberta, as was reported in the National Post of March 16. I am also sure that Canadians, Quebecers especially, would like some explanation as to how it is that the Prime Minister's riding received four times as much in TJF and CJF grants as the average Quebec riding. The TJF and CJF programs are not the only sources of controversy.
Last week I raised a question in the House regarding a complaint received in my office. A few weeks ago, Mr. Kurtis DeSilva, president of the Metis nation in B.C., and Joe Lanza, a former provincial HRDC compliance officer, came to see me in my Surrey office with a pile of documentation relating to the alleged mismanagement of HRDC funds by the Metis Council of British Columbia, funds earmarked for employment and training programs in the Metis community. Among the complaints was one having to do with the use of job creation money by a council director to attend law school in Toronto. In another case, HRDC funds were allegedly used to send the son of another council director to India to gain life experience.
Dan Ferguson, a journalist with the Surrey North Delta News Leader , has been investigating this issue extensively. He has quoted a number of individuals who complained about questionable training programs, programs which in their view were, in the words of one, a pitiful waste.
A cursory audit by HRDC uncovered almost $170,000 which could not be accounted for. The RCMP said that it did not have the resources to investigate even though it acknowledged the complaints.
Yesterday, at the Liberal Party convention, a British Columbia Metis member of the party said in an interview that there was a real problem. Yet the ministry has refused to do a forensic audit. In fact the minister even refused to answer my question last week.
In another case, the Surrey Aboriginal Cultural Society has brought to my attention that the aboriginal residents of Surrey have received no employment and training funds since 1998 even though the Sto:lo nation was contracted by HRDC to provide the funds. I have written the minister for an explanation but to date have heard nothing back.
In still another case, two women complained to my office after an HRDC contractor placed them into courses which they had no hope of completing due to a lack of prerequisite training. The spotlight is currently on HRDC. One must suspect that there are similar stories buried in other departments, many of which have had no internal audit done on grants and contributions since January 1, 1994.
Rather than attacking the provinces, the federal government should provide leadership by working co-operatively with them to improve health care. A good place to start would be to forgo any further increases in grants and contributions and instead direct those funds toward health care.
I urge all members to support the motion.