Madam Speaker, I thank the hon. member for her support for the legislation. With the exception of a few pointed jabs at this side of the House, I thought her speech was quite good.
I want to direct her attention to two or three points, the first point with respect to the expert panel. She raised an issue with respect to natural resources. If she directs her attention to page 30 of the briefing book, she will see that the expert panel will be asked to examine and provide advice to the Government of Canada on the allocation among the provinces of the annual equalization allotment, et cetera, and the treatment of various provincial and local revenue sources, such as natural resources, property taxes and user fees. Each province has a different gripe about what should be in the formula and how the formula should be weighted.
I suggest that the terms of reference deal with the very issue that she raised as to whether natural resources will in fact be counted and how they would be counted. I look forward to her comment on this.
The second issue she raised dealt with the possibility of no agreement. I direct her attention to subclause 4.1(3) which states:
3) The fiscal equalization payments referred to in paragraphs (1)(b) and (c) shall be allocated to each province in the same proportion as the fiscal equalization payment referred to in paragraph (1)(a) is allocated under subsection (2).
In other words, it is kind of a stop loss provision. If the expert panel does not report for whatever reason, or if Parliament dissolves for whatever reason, the provinces will know that the next fiscal year, following the fiscal year upcoming, they will have a steady stream of money. Does she think that is an appropriate way to go in anticipation that things occasionally go off the rails?
The third thing she mentioned had to do with the Ontario economy. I agree with her that the Government of Canada has bought down the risk for the provinces. Ontario is the greatest source of revenue for the federal government and if it were to tank, or if the economy were to tank, then the equalization receiving provinces would be cushioned from that economic downturn. It has been a significant concession on the part of the federal government to buy a cushion so that the equalization receiving provinces are in some measure protected.
I would be interested in her comments on those three points, but generally speaking I think her speech was quite supportive.