Mr. Speaker, I am pleased to rise today to speak to this bill. I find it very symbolic and very representative of the kind of stunts this government, the Liberals and this Prime Minister seem to enjoy playing. Of course, this is to be expected just before an election. Bill C-18 is basically a partisan piece of legislation that goes against the interest of Quebec and the rest of the provinces.
First, in Bill C-18, two distinct components have been combined. The first one deals with extending the current equalization program that the provinces, and Quebec in particular, do not like and have been criticizing. The second one is to approve the $2 billion that was first promised to the provinces by Jean Chrétien and then by the former finance minister and that will probably be paid by the current Prime Minister.
On the one hand, we are against the extension of the current equalization program, because it penalizes Quebec and Atlantic Canada, in particular. On the other hand, we agree with the $2 billion for health promised by Jean Chrétien. The government thinks it can fool of us by coercing us to vote in favour of a bill that would penalize Quebec and Atlantic Canada over the next fiscal year. It is not fooling anyone, not the people of Quebec and not the Bloc Quebecois.
We demand that this bill be split. While we are in favour of Bill C-18 being referred to a committee, we will be bringing forward in committee an amendment to split the bill into two very distinct parts, as I mentioned earlier. So much for the first stunt.
Second, by introducing a bill that would extend the equalization program and provide an additional $2 billion for health, as promised over and over again, the federal government would have us believe that it is being very generous and that the provinces will be the big winners here. That is not true.
In this fiscal year alone, federal transfer payments to Quebec have been cut by about 5%. That means $423 million less in Quebec's coffers, even with the $2 billion, of which Quebec will receive $472 million.
We are not stupid. The federal government is financially starving the provinces, especially Quebec. Next year, if the equalization formula is maintained and if there is no agreement to increase health care funding, transfer payments to Quebec will drop by $1.55 billion. This is unacceptable. We will not allow Ottawa to financially starve the Quebec government at the expense of Quebeckers. We will not endorse this.
Third, the federal government is making a big deal about the $2 billion it is transferring for health care but has failed to mention that this year it will save $2 billion in equalization payments. That is the federal government's strategy: to take with one hand and give with the other. The problem is that the rules are not the same when it comes to equalization or the CHST.
The CHST is based on population percentage. Equalization, however, is based on the relative wealth of the provinces. Consequently, Quebec and the Atlantic provinces lose under Bill C-18. The proof is that, this year, under the equalization program, our share of the 2002-03 amount will drop 38%. These figures bear repeating because they are evidence of this third stunt pulled by the Liberals and the federal government.
The figures I am providing are from the study by Quebec's finance minister, Mr. Séguin, who is far from being a separatist, as the Liberals say, and who should have a certain credibility in their eyes. In 2002-03, under the equalization program, Quebec received $5.315 billion. In 2003-04, the current fiscal year, it received $3.29 billion. That is a 38.1% decrease. Projections for next year are approximately $3.5 billion. Compared to 2002-03, this is a 34.1% decrease.
And now they are trying to sell us on the idea of extending the current equalization formula at the expense of Quebec's finances. This is unthinkable.
Looking at the Canada health and social transfer, we see that in 2002-03 we received $2.648 billion. In 2003-04 we received $2.58 billion, a drop of 2.6%.
This year there is of course the increase provided for in the February 2002 agreement plus the $2 billion, which means for Quebec a total of $1.647 billion. And there is $1.367 billion in other transfers. So this year Quebec will receive in federal transfer payments $8.884 billion compared to the $9.3 received in 2002-03. That is a net loss of 4.5%.
They want the Bloc Quebecois, the sole defender of the interests of Quebec in this House, to accept such a unilateral reduction in transfer payments by the government. Next year, again compared to 2002-03, according to our very conservative estimate, the losses will be in the order of 16.7%.
We therefore cannot accept the sort of stunt they are trying to pull with Bill C-18, which will, when all is said and done, penalize Quebec and the Atlantic provinces in particular, as I have said, by strangling them financially.
We can see, since the numbers are there, that the basic intent of Bill C-18 is to allow the federal government to save money. The $2 billion—which, I will remind hon. members, is $2 billion with no guarantee of repetition next year, far from it—is merely an attempt to conceal what they are doing. This is why they have put the two elements into Bill C-18. But, once again, we are not taken in, nor are the people of Quebec.
Fourth, since there has been a new prime minister, since there has been a new finance minister, they have copied the tactics of the former finance minister, now Prime Minister.
They claim the financial situation is very difficult, pointing to examples of current issues that are indeed of great concern: the mad cow crisis, which the federal government should come up with more money for, the SARS crisis, and a number of other things such as the power outage in Ontario.
The government says finances will be very tight now. It expects to have a lot of difficulty raising $2.3 billion in surpluses. What did we learn this week? From April to December, the federal government already raised $5.2 billion. The surplus will be closer to $6 billion or $7 billion, as the Bloc Quebecois predicted earlier.
Consequently, the federal government put up a show to try to relieve the pressure on the negotiations concerning equalization and health. When he met with provincial premiers, the Prime Minister said, “I will not solve the problem now. I will wait until July”.
Why will he wait until July? Because he hopes to hold his election before then. Of course, I am not convinced that, with the current events, it will be easy. However, at the time, his idea was to call an election as soon as possible and postpone the problems.
It is the same with Bill C-18. The government does not want a debate, it does not want to negotiate the equalization formula with the provinces. It is downloading, hoping that the election will be held before then.
In an attempt to cover all this, it is pretending that it is having financial problems, which is false. Not only there are surpluses, but there is $6 billion sitting in the foundations that were created by the current Prime Minister.
We know that Jacques Léonard, the former president of the Treasury Board in Quebec, did a wonderful job for the Bloc Quebecois. He showed that the federal government had increased its spending at a pace that was double that of Quebec and Ontario, and that there was a lot of waste. It is not just the sponsorship scandal; there is also a culture of waste within the federal government. If things were tightened up, we would have ample means to settle the issue and negotiate quickly.
Fifth, all this is done with one goal in mind, which is to put all the problems off until after the election. Afterwards, the government will give the bad news to Quebec and to the other provinces.
We will not be fooled. We will not play this game. We will not condone what the Liberals want to do to the provinces and to Quebec in particular, which is to put a financial stranglehold on them and not deal with the fiscal imbalance.
Nor will we condone the laxness of this government, which could easily have negotiated the new equalization rules before March 31. We will not play this game and we will not support Bill C-18.
We hope that this bill will be split and that the issue of the $2 billion for health will be addressed separately.
As I said, we will ask that the $2 billion be a recurrent amount and that the equalization program be extended before March 31 if possible, but in any case before the election.
In conclusion, we will support the referral of this bill to the Standing Committee on Finance.