Mr. Speaker, it is indeed a pleasure to rise today to speak to the opposition motion regarding the health care system.
I do not think there is a single issue that I have heard more about since I came to the House in 1997 representing Kitchener Centre. We on this side of the House welcome this opportunity to debate with the opposition on something that is so important to all Canadians.
We recognize the very high priority that Canadians place on our health care system. It makes me very proud to remind the members opposite that the government places that same priority on Canada's health care system. Let me remind the opposition of a few key facts about health care in Canada.
First, overall health care spending reached $102.5 billion in 2001. That is equivalent to 9.4% of our gross domestic product. Let me point out that this is quite in line with other OECD nations. There has been a great deal of rhetoric about the rapid growth rate in spending on health care in Canada. As a nation we are spending virtually the same proportion of our GDP on health today as we did a decade ago. Public investments in health care have remained stable as a proportion of GDP as well. Clearly we are not falling behind. More important, our health outcomes, measured by indicators such as life expectancy and infant mortality rates, are among the very best in the world.
It is important for us to recognize that over the past 25 years health care spending in Canada has shifted. In 1975 hospital services accounted for 45% of total health care expenditures. Now this sector represents 31% of total spending. This shift can be attributed to advances in technology such as diagnostic tests which can now be provided outside of the hospital setting. The majority of surgery is conducted on an outpatient basis rather than requiring lengthy hospital stays, as was previously the case.
As well, 27 years ago spending on drugs accounted for 9% of total health care spending. It now rests at 15%. Why? There has been an increased utilization of drugs and we have seen a rapid introduction of new drugs that can offer treatment for a great many conditions.
Any way we cut it, health care is an important issue for Canadians. Canadians are telling us that they are concerned about how long they wait to see a doctor when their child is sick, about how long an elderly patient will wait for space in a long term care facility or about how Canadians in rural and remote areas of our country will receive the care they need when they need it.
Canadians are also tired of having their governments pointing fingers at each other and bickering over health care. Canadians want their governments to work together to ensure that they will have the access to the care they need when they need it and where they need it. That is why we are working with our provincial and territorial counterparts on difficult issues with respect to health care. This is best exemplified by the first ministers agreement on health which was reached on September 11, 2000.
Let me remind the opposition that all premiers and territorial leaders agreed with our Prime Minister on a common vision for health care for Canadians. They also agreed to work together to support our health care system and to address key priorities to renew health care services. For these same reasons, in April 2001 the Prime Minister announced the commission on the future of health care in Canada. The work of the commission builds on a consensus regarding health care that was reached back in September 2000. It is from this basis that much collaborative federal, provincial and territorial work has indeed been undertaken.
In support of the September 2000 first ministers agreement and the priorities identified by those first ministers, the Government of Canada committed $21.1 billion in new cash in the Canadian health and social transfer over five years, beginning in the year 2001-02. This additional funding consists of an $18.9 billion general increase to the CHST in support of health and $2.2 billion in targeted funds for early childhood development initiatives.
In addition to increasing the CHST, to encourage and facilitate health care renewal in the provinces and territories the Government of Canada in September 2000 made significant investments in three targeted areas reflecting the agreed priorities: $1 billion over two years for medical equipment; $800 million over four years for the Primary Health Care Transition Fund which will accelerate and broaden primary health care initiatives across the country; and a $500 million fund to support, through an independent corporation, investment in information technology and communications such as electronic patient records.
In a past life I sat on a district health council representing regional and municipal governments. These are exactly the kinds of initiatives we at the grassroots level recognized as being in need of attention and funding. The government is following through with leadership as well as dollars.
Since the first ministers' agreement in September 2000 we have accomplished a great deal in several key areas such as pharmaceuticals and health information technology. The Government of Canada together with the provinces and territories reached an agreement on a common drug review process and new approaches to prescribing and improving the utilization of pharmaceuticals. Canada Health Infoway Inc. has been created and work is proceeding to develop electronic patient records and other innovative information technology applications.
In other areas such as primary health care and accountability, work is progressing in conjunction with our provincial and territorial partners. The continuing work on the health care system, based again on our agreed priorities, will renew and rejuvenate our most important national program which, as my colleague from Parkdale--High Park said earlier, helps define us as a nation.
What do all these facts and stories of collaborative work really mean for Canadians? They show that health care is a national Canada-wide issue and needs to be treated as such. They underscore that the first ministers' agreement of September 2000 was a joint endeavour agreed to by all premiers which continues to motivate collaborative work and renewal of health care. They prove that money alone could never ease the challenges the health care system faces. Perhaps most importantly, the first ministers' agreement demonstrated the will of all jurisdictions to work together to move forward on the renewal of the health care system. This is in the interest of all Canadians.