Mr. Speaker, perhaps there was a problem with the translation, but I never said that Ontario and Alberta do not like equalization. What I said was that Alberta and Ontario do not receive equalization payments. That is all I said. I did not in any way criticize the opinions of Ontarians or Albertans on equalization. Unfortunately, I am unable to say whether they like it or not. All I said was that they do not receive any.
However, in his comments, the hon. member implied that Albertans and Ontarians are footing the bill for equalization. It is the federal government that pays for equalization, not Alberta and Ontario. Of course, the Alberta and Ontario taxpayers are paying something, as are the taxpayers of Quebec and all the rest of Canada.
I also mentioned in my speech that it was a relatively small amount. For example, for this year, we expect to receive about $183 billion in tax dollars from the federal government, and equalization payments amount to $10 billion. It is not equalization that creates pressure on the federal treasury, any more than would an additional $3 billion if the tax base were such that all provinces, and not just five of them, were part of the new equalization formula.
I want to add one more thing on this subject. The federal government, which slashed transfer payments to the provinces a few years ago, has reinvested very little. It has, however, greatly inflated its bureaucracy.
For example, from 1999-2000 to 2002-04, federal departmental expenditures increased by 34% or one-third. This is not direct services to the public, just government operations. At the same time, program spending, or transfers to individuals, increased by barely 14.5%, which is three times lower.
The budget has been balanced on the backs of the unemployed and the provinces, bureaucracy has been inflated and there have been no improvement to programs such as employment insurance, old age pensions or the guaranteed income supplement. The hon. member for Champlain, who is here, can testify that many seniors are currently deprived of the guaranteed income supplement as a result of the federal government's laxity.
Therefore, program spending has increased at a rate three times slower. Barely 23% or less than one-fourth of the budget went to the CHST.
The problem is obvious. Clearly, for several years yet, equalization will be an important way to ensure equity among the provinces. However, the equalization formula is only one part of the solution needed to resolve the fiscal imbalance between the provinces, including Quebec, and the federal government. Quebec and the provinces have more and more responsibilities and, unfortunately, the money is accumulating in Ottawa, where the responsibilities are insignificant.
In closing, I want to say that if federal spending increases, the surplus in question could quickly disappear. That is why we want the future prime minister, the hon. member for LaSalle—Émard, to respect the commitment he just made, as well as his recent statements that he wants tighter controls on federal spending. We suggest a 3% annual increase in federal spending, more or less equal to inflation and population growth. He can find the necessary margin in existing budgets to satisfy the provinces' demands with regard to equalization.