Mr. Speaker, I enjoyed the debate that has just taken place, especially when the member for Saint-Hyacinthe—Bagot argued that the federal government speaks for itself. In fact the federal government speaks for all Canadians.
That is the point those sovereignists cannot quite get through their heads. The member for Champlain mentioned a race and jurisdictions, but what he neglected to understand and to realize is that we have jurisdiction under the British North America Act and under Confederation for certain areas of responsibilities as do the provinces. We have had a long and glorious history of being able to work that out through co-operation and flexibility and the good, sound judgment that has been used over the course of years.
Be it tax points or outright cash when it comes to provincial moneys and resources, the federal government is part and parcel of how the federation works and underscores the commitment of the Liberal government to make the federation work in a very meaningful and sound way.
The member for Saint-Hyacinthe—Bagot talked about the finance minister being hypocritical and how he was stealing from the EI fund. Unparliamentary or not, both those statements are absolutely wrong. On the contrary, we have seen the present finance minister making adjustments by getting rid of the deficit, paying down the debt and giving balanced tax breaks and money back for important reinvestment initiatives.
That underscores the commitment of the government to all provinces and territories in this great country of ours. It behoves us to think about these things from time to time to bring us back to clear thinking and balance because that is what the government has been able to do since 1993.
The motion before us is of some interest, but it is of more interest to the sovereignists in Quebec City. It is no secret that Pauline Marois, the finance minister and Premier Landry have made it a habit in recent months to come hammering once again at the door of the federal government. All I see are the sovereignists opposite, the Bloc in this case, being kind of head waiters for them, simply bringing their plea to Ottawa and almost acting, unfortunately, as a branch plant of Quebec City for the separatists and the sovereignists.
That aside, there are some genuinely important issues that we need to clear up in the debate. For example, we should note that this has a long history since 1977 when the first tax point transfer was implemented. There was a new agreement at that time called established programs financing, EPF. It helped with education and health in those days. At that time $13.5 billion of personal income tax points were given over to the provinces as well as $1 billion in corporate tax points. We can see the beginnings of the federal government assisting in this tax point area along with cash as well which people always want and provinces especially.
The thing that I find unacceptable is the fact that the sovereignists, the Bloc and some of the provinces seem to think that tax points are not equal to cash, are somehow not as good as cash, or somehow do not provide the cash required. In reality tax points are equal to, as good as and similar in that sense to cash. In German one would say macht nichts aus . It is the same thing. It is half a dozen of one, six of the other.
We keep giving tax points and cash, but why do we do it? We do it because we are in a fiscally sound federation. We understand there are needs that the provinces and territories require, especially in their areas of jurisdiction. The two that obviously come to mind very quickly are health and education. That is why for example in 1996-97 we established the Canada health and social transfers. That is part of the kind of effort the government is prepared to make to ensure that we do the right thing when it comes to our great federation.
I point out that all tax points are resources that flow to the provinces. No matter which way we want to cut it, dice it or slice it, the fact remains those are resources to the provinces. I want to point out too that under the CHST in recent years, the ceiling was established at $11 billion in 1996. It went up to $12.5 billion in 1998, and in 1999 an additional $11.5 billion over five years was added. The CHST cash portion in the year 2000 was $15.7 billion. By the year 2005-06, that will represent $21 billion, which in straight mathematical terms, is a 35% increase.
That represents a government commitment to ensure that money, when we are in a surplus situation, be it tax points or cash, is transferred in a meaningful way to the provincial and territorial partners. We do that to ensure that the federation works in a way that Canadians, wherever they live in this great country, think is appropriate and right and enjoy the fruits of the surplus situation.
The tax transfers provide provinces with additional revenue which increases as a result of economic growth. Those tax transfers have increased sixfold since 1977-78. That is an enormous increase and represents the growing flexibility and ability of the provinces to make sure the transfers are used in their jurisdictions in a way that makes the most sense for them.
By using a mathematical formula, it is projected to the year 2005-06, that the tax transfers will rise to $18.9 billion, which represents a 19% increase over that period of time.
I reiterate that this is great news for the provinces and territories in terms of what we are doing by way of federal transfers, either points or cash. It underscores the commitment of our government to ensure that things go along in a manner consistent with Canadian values.
To recap, it is very important to note that in the year 2001-02, which we are in now, $34 billion will be transferred under the CHST. That represents $15.7 billion under tax transfers and another $18.3 billion in cash, for a total of $34 billion. No matter which way we look at it, and Canadians understand, this is a lot of money that our federal government is prepared to give to the provinces so they can put in place the kinds of resources that the people in those provincial and territories want, need and demand.
It is our government commitment to ensure that kind of balanced approach. Balance, after all, is the key, not twisting it out of joint in one way or the other. Rather balance it out to have the flexibility inherent in good programming and sound fiscal judgment so the Prime Minister, the Minister of Finance and whole caucus on the Liberal side are able to deliver repeatedly in these all important areas.
I simply have to shake my head when I look at the motion. Of course it is Bloc members trying to play games. They are taking their marching orders as usual from Monsieur Landry and others who are intent on destroying this great country of ours. However, they neglect to remember that the country represents solid good governance and a good economy that has been good for all people no matter where they live. It has provided employment, good salaries and good jobs for people. At the end of the day individuals, families, communities and whole provinces and territories have benefited as a result.
We should rejoice in that because it is the very essence of what our government is able to deliver. That is the very essence of who we are as Canadians, underscoring our values and judgments to make sure that Canadians wherever they live benefit as a result of our good, solid judgment.