Mr. Speaker, I listened to the member and I have to say that I am perplexed as to what the member is trying to suggest. She is suggesting on the one hand that the government should come up with a new equalization formula with the provinces, which is in fact what we are doing. We have had very good discussions with the provinces. The member mentioned that the Minister of Finance met with his counterparts on October 10. It was a very useful and fruitful discussion and it is an ongoing process. We want to get it right.
On the other hand, the member seems to think that there is something objectionable or mischievous about the government introducing legislation that essentially is an insurance policy to ensure that in the unlikely event that we do not conclude an agreement by March 31 the first payment would roll out on April 16. That member would stand up and complain on April 16 if in fact equalization payments did not go forward.
Even when we were looking at cutting costs during the mid-1990s, equalization payments were not affected at all. The government believes very strongly in equalization. It is the cornerstone of the government and we continue to support it. We have had, as I have said, very useful and fruitful negotiations and discussions with the provinces.
However it is prudent management to ensure we have a contingency where if in fact it did not happen on March 31, the payments would still flow up to a year. Nova Scotia wants that. British Columbia wants that. The provinces want that. We have been discussing in good faith and I think the member has been suggesting that we have not.
Would the member rather we not introduce this, that we continue to have negotiations and if for some unforeseen reason we do not get an agreement, that payments would end after March 31? If that is what she wants to tell the Canadian people, that she and her party do not want to have that extra bit of insurance, then she should say so.
I believe this is the right thing to do. I have not heard anyone suggest for a moment that we have not been discussing with our provincial counterparts in good faith.
Yes, the member is absolutely right. Every five years we do this. However for her to suggest that because we are in October and this ends in March we are doing it at the last minute, I do not think so. What we are trying to do is make sure we have the insurance.
How does she respond to the issue that if we do not introduce this and something unforeseen happens, the payments will not flow?