Madam Speaker, the member for New Brunswick Southwest seems to have the numbers mixed up. In fact, the Prime Minister recently concluded an agreement with the provinces and territories which will invest $23.5 billion in the health care system through the Canada health and social transfer. That is in addition to the $14 billion that was put into the CHST in the two previous budgets. That is a total of $37.5 billion, which is significantly more than the figure of $4.5 billion the member quoted.
The reason for the original question from the member to the minister had to do with the CHST as a block fund. I would like to say that the CHST gives provinces greater flexibility to allocate resources according to their own priorities. As a block fund, the CHST also allows provinces to design programs and reflect their unique circumstances and needs. Maintaining artificial boundaries between social programs is not good social policy. Health, education and social assistance are all interrelated. Furthermore, these programs fall under provincial jurisdiction. Provinces know how to best tailor programs to meet the needs of their own residents.
Having said this, I should note that maintaining the CHST as a block fund does not preclude agreements on targeted investments. Indeed, at the last first ministers meeting, as I just pointed out, first ministers agreed that of the additional $21 billion invested in the CHST over five years, $2.2 billion would be earmarked for early childhood development. In 1999 all premiers made a commitment to spend the $11.5 billion in new CHST cash provided in that year's budget on health care.
In conclusion, the agreement reached at the first ministers meeting and the 1999 budget clearly demonstrate that the CHST is an effective instrument for achieving national policy objectives while at the same time providing provinces and territories with the flexibility required in a mature federation.