Mr. Speaker, we just had a nice illustration of the fact that this government is not prepared to face the reality. There is a fiscal imbalance. Everyone in Quebec agrees on that. Federal Liberals are the only ones who do not agree. Because of this fiscal imbalance, the provinces, which have responsibilities in areas where costs pose very significant problems, including in health and education, no longer have the means to deliver the services that the public is entitled to.
On the other side, there is the federal government, which generates surplus after surplus and which is wasting our money. It is not just the sponsorship scandal. There is the 40% increase in operating costs, which is double the increase in Ontario and Quebec over the past five years. There is also the $10 billion in additional spending, including $1 billion for defence, when we do not even know what the Canadian army is used for. This is evidence of the fiscal balance.
So, we must find ways to correct this fiscal imbalance. Of course, one of the simplest solutions would be for Quebec to withdraw from the Canadian federation, to take its marbles and to go it alone. Let us not forget that Quebeckers send 60% of their income taxes to Ottawa. As far as we are concerned, this is the preferred option in the longer term.
In the meantime, we will try through every possible means, including the Canada social transfer and the transfer of tax points to Quebec, to correct this fiscal imbalance. We cannot give our support to the federal government for dragging its feet regarding the equalization issue.
At the end of October or in early November, the government already had a bill to extend the equalization program for one year. Back then, there was plenty of time to negotiate with the provinces and quickly reach an agreement. Are we going to support the fact that Quebec will lose $1.4 million, an amount which is not at all compensated with the $2 billion? We are talking about $472 million. We cannot do that.
If the government could give us some guarantees, maybe we could look at things differently, for example, on retroactivity, which is a minimum. Presently, since there is no retroactivity guarantee in Bill C-18, the federal government is under no pressure to solve the issue. Consequently, it will drag the issue until 31 March 2005. In 2005, maybe they will come back with a bill to extend the equalization formula for one more year.
If we were guaranteed that the agreement would be retroactive, that would put pressure on the federal government which, if it played for time, would not be able to unduly penalize the provinces. However, it penalizes them anyway because, when the finance minister will prepare the budget, the provinces will not know how much their equalization payments will be the following year. But they will realize that they will be getting less money than what they got for the current year and less than the year before. Consequently, they will find it very hard to deliver the same services in health care and education.
I have already explained this to you, Mr. Speaker, and I am sure you remember. When we look at Quebec's budget as a whole, if we take out health care and education, there is a mere $9 billion left.
Consequently, it is impossible for a government like Quebec's to balance its books without touching to health care and education, if there is no increase in the federal government's transfer payments through equalization, the CHST or otherwise.
It is in this context that equalization payments must be increased. We must get guarantees that the money will be given to the provinces, particularly Quebec and the Atlantic provinces, which will be facing serious difficulties.
It is clear that the reality of fiscal unbalance has not been recognized. The government is trying to buy time before the election. It wants to get a blank cheque to do whatever it wants after the election. We will denounce that throughout the election campaign.