Mr. Speaker, I will share my time with the member for Châteauguay—Saint-Constant.
The fiscal imbalance relates to a situation. The federal government collects too much money for its responsibilities. Witness its year after year surpluses. However, Quebec and the provinces do not have enough revenues to assume their own responsibilities.
For years the Quebec government has been strangled fiscally under the orchestration of the Minister of Finance and the Prime Minister. Since 1994, Ottawa has been collecting astronomical surpluses, more and more taxes in Quebec, but has given back less and less money where it is needed. This means that the federal government is doing less and less of its share in funding of health and education systems.
When the current Prime Minister was the Minister of Finance, federal government spending increased by 45%, while transfers to Quebec and the provinces rose by only 1.9%.
Meanwhile, federal government revenues increased by $1,569 per capita in Canada, while health, education and social transfers were reduced by $34 per capita.
On the financial level, Ottawa is awash with cash. It has accumulated a surplus of $60 billion since 1997-98. Even worse, the Conference Board is forecasting another $166 billion by 2015.
Despite the fact that it accumulated surpluses by cutting in areas that belong to the provinces, the Prime Minister is hailed as the champion of sound management of public finances.
It is important to note that the federal government's margin goes beyond the budget surpluses. It also includes the excessive increase in federal operating expenditures.
When the Prime Minister was the Minister of Finance, the federal government lost control of its operating expenditures. These expenditures increased by 7.8% annually, compared with an average annual inflation rate of 1.9%.
At the same time, there was a greater concentration of federal jobs in the national capital region. Indeed, since 1994, the number of federal jobs has increased by 11% in that region, while it decreased by 1% in the regions across Canada.
Here are a few examples which show that Ottawa is enjoying huge surpluses. These examples are taken from the 1997-98 to 2002-03 period.
While federal operating expenditures increased by 30%, those of the Quebec government only went up by 20%.
While the Quebec revenue department reduced its expenditures by 47% during this same period, the Canada Customs and Revenue Agency increased its spending by 57%.
The Quebec health department increased its expenditures by 33%, while its federal counterpart increased them by 78%.
During the same period, the Quebec education department increased its expenditures by 12%, and the culture department by 12.8%. Meanwhile, the Department of Canadian Heritage increased its spending by 38%.
Total operating expenditures for the federal Department of Justice increased by 67%, while those of the Quebec justice department only went up by 12%.
The Prime Minister relegated the problems to the provinces and to the unemployed. From 1995 to 2003, the Liberals took $45 billion from the employment insurance fund. On an annual basis, my region of Saguenay—Lac-Saint-Jean was deprived of $157 million.
In the case of Quebec, this fiscal imbalance takes on a special meaning because we are different, because Quebeckers are a nation. The fiscal weakening of the only state they control is a concern for the future, the more so because the precariousness of Quebec's financial situation was deliberately caused by the former finance minister, the present Prime Minister, who can truly say that he is the architect of the fiscal imbalance.
This situation is largely due to the cuts made by the federal government in transfer payments to Quebec and the provinces. The Prime Minister did not take advantage of the premiers' conference in Ottawa to fulfill his promise of addressing the whole issue of the fiscal imbalance.
The Prime Minister did not have the political will to respond to the needs of the people. Instead, he responded to the wishes of his caucus, which accused him of giving too much already.
The new era of cooperation announced with great fanfare by the Prime Minister is stillborn. The fiscal imbalance is hurting the people of Quebec. When will the government recognize it?
The regions of Quebec and my region, Saguenay—Lac-Saint-Jean, are suffering from the effects of the fiscal imbalance. Some of its effects are that we cannot take care of our sick people and that we cannot invest in education and social programs. When will the federal Liberal government take note of this reality and recognize this deplorable situation?
The disintegration of the regions is very real and its effects are undeniable. No one can argue with the fact that our young people are moving to the big cities, that poverty is expanding and that endemic unemployment is hurting Quebec's natural resources areas.
When will the Liberal government recognize that Ottawa has too much money for its needs, and that Quebec is under-financed and cannot face its obligations?