Mr. Speaker, I will be sharing my time with the hon. member for Etobicoke North.
I am grateful for the opportunity to address the House on this motion. I believe it speaks to some important issues that are essential to the future of our Canadian federation. As my colleagues on this side of the House have already stated, the fiscal imbalance discussed in the motion by the opposition simply does not exist in the country.
The provinces have exclusive access to some of the fastest growing revenue streams in the country. More important, total provincial and territorial revenues have been far above those received by the federal government for more than 20 years. This trend is not expected to end any time soon. However, there are other reasons why the concept of the fiscal imbalance is a non-starter, not the least of which is the fact that the federal government will, over the next 10 years, provide an additional $74 billion to the provinces and territories through increased funding for health care and a new formula for both equalization and territorial formula financing.
Indeed, I would like to address the bulk of my remarks on a topic that has been very much in the news recently; the issue of equalization. This has been one of the pillars of our federation for more than four decades and it is another important argument against the idea that a fiscal imbalance actually exists.
To begin with, the equalization and territorial formula financing programs ensure that all Canadians, no matter where they live, have access to reasonably comparable public services. This commitment helps to ensure that all Canadians are treated equally from coast to coast. However, the provinces and territories have been complaining for several years about how the federal government funds the equalization and territorial formula and the planning difficulties that they have faced as a result of the year to year swings in the amount of payments they receive under these programs. These are legitimate concerns and the government has done everything it can to address them.
Just two days ago, Canada's premiers and territorial leaders agreed to the government's proposed framework for equalization. This new framework represents the most fundamental and sweeping changes in the program's history. The goal of this new framework is nothing less than to make payments to the provinces and territories more stable and predictable while significantly increasing the overall level of funding.
Over the next decade, this new framework will provide $33 billion more in equalization and territorial financing payments to the provinces and territories. That is quite an improvement, but the government recognizes that simply pumping more money into the system is just not enough.
We need to take a hard look at how the current legislation on equalization and territorial financing allocates money to the provinces and territories. That is why the new framework calls for a review to be conducted on how the legislated equalization and territorial financing levels should be allocated for the provinces and territories in the 2006-07 fiscal year and beyond.
Our government recognizes the need to ensure that all provinces and territories can offer the best possible services to their citizens. Equalization and territorial formula financing programs are clear evidence of our commitment in this area. The programs, along with health funding through the Canada health transfer, also offer clear evidence that the fiscal imbalance referred to in this motion does not exist in the country.
For those reasons and those that have been outlined by my colleagues, I cannot support the motion and would urge other members of the House to do the same.