Mr. Speaker, perhaps the member did almost redeem himself.
Much has been said about the budget and the ways and means motion, but I want to take a quick recount of the 2004 budget at a glance. I will give some statements and responses.
It is the seventh consecutive balanced budget with a projected surplus of $1.9 billion for 2003-04, which must go to the $510 billion debt. The problem is that there is no long term plan for national debt reduction; it is just what happens to be left over. That is a very inadequate signal to the foreign investor market.
Second, program spending jumps by 7.6% from last year to a record $143.4 billion and jumps by another $12.7 billion over the next two years. It is up a massive $41.1 billion or 40% over the last seven years. The government is taking too much out of the economy into the public sector, which puts a drag on job creation and overall economic development for the future.
Third is a promise to improve accountability and integrity in government spending in wake of the sponsorship scandal, and no deficits. That is an admission that ministerial accountability and oversight up to this point have been completely inadequate and that Parliament has not been sufficiently informed.
Then the budget stated that the Liberals would re-establish a comptroller general to oversee all government spending. That is an admission that unqualified employees approve and sign cheques and comptrollership accounting is sadly lacking. The Liberals cannot manage.
Next, government is to identify $3 billion in annual savings within four years. That is an admission that the Liberals' financial planning cycles contain much waste and imprecision and they must be continually corrected after the fact.
Mr. Speaker, I should say that I am splitting my time with the member for Dewdney—Alouette.
Next, the budget says that the Liberals will reduce the debt to GDP ratio to 25% within 10 years. That is a laudable goal, but it is an unambitious goal in view of the possibilities. It is a plan of a missed opportunity for debt reduction when it is possible, for it may not always be possible in the future. Despite some payments, the debt is still $23.1 billion higher than when the Prime Minister first became the finance minister.
There is $7 billion over 10 years for cities by rebating the GST. That is a helpful but small benefit. It is also an admission that this should never have been collected in the first place through taxing a lower level of government, through one government taxing another government.
Then there is the promised $4 billion over 10 years to clean up contaminated sites across Canada. That is a very helpful gesture to a very old and neglected problem. I remember visiting the Sydney tar ponds and embarrassing the minister to get him there so that he would at least look at it for a change. That is a re-announcement of a promise made many times before.
Then there is the $1 billion for cash strapped farmers, with about $680 million targeted to cattle producers hurt by the mad cow crisis. The $80 per cow is only a partial but helpful and welcome benefit. It is too little and far too late for many farmers already bankrupt and gone from the sector, even though government was repeatedly warned.
Next is $665 million over two years for public health, including $165 million to establish a national public health agency. It is a needed adjunct for public health safety but no help for the basic underfunding to meet national health care standards. There is just a promise to talk in the summer after the election.
There is $605 million over five years for intelligence, border protection, marine and cyber security, threat assessment and emergency response. Certainly we should have a concern with the effectiveness as these large bureaucracies increase in size.
There is $270 million to provide venture capital for start-up technology companies and to help get private sector financing for leading edge technologies. Here we find out that the government is trying to pick winners instead of concentrating on lowering the cost for all in a level playing field.
There is also $250 million to cover Canadian Forces missions in Afghanistan and efforts to prevent terrorism. Unfortunately, that is an unavoidable expense for the basics without any real equipment enhancements. It is just the basic cost of being there.
There is another $240 million more for international assistance in 2005-06. It is an opportunity for much waste if it is not well managed.
Then there is the Canada learning bond to provide up to $2,000 for children born after 2003 in lower income families and a grant up to $3,000 for first year post-secondary dependent students from such families. It could be more vote buying posturing than actually helping many students as only small numbers will be able to qualify for this provision.
It will reduce the air traveller's security charge for domestic and international air travel. It is long overdue and still too high for the actual service delivered.
There will be faster spending of $1 billion in funding to cities and towns to repair roads and sewers, including $350 million for Toronto transit. Again, there is no realistic national plan for transportation infrastructure in partnership with the provinces.
There will be reinstatement of a $1 billion prudence reserve on top of the regular $3 billion rainy day fund to ensure the country's books stay balanced. That is a cosmetic gesture as revenues are always grossly underestimated. It is also an admission that budget plans are not very accurate or reliable.
There will be tax act changes to allow bigger write-offs on computers, heavy machinery and other capital investments. The government is disturbing the marketplace by playing favourites rather than improving write-down schedules for all equipment upgrades equally for all sectors on a predictable internationally competitive basis so markets decide rather than government bureaucrats just guessing.
Petro-Canada promised to sell the government's 19% stake in the company in the next fiscal year. The current market value of this ownership is close to $3 billion. About $1 billion will go to fund environmental technology development and commercialization. The proceeds will no longer have to apply to the national debt.
The Liberals repealed the Debt Servicing and Reduction Account Act that required proceeds from such asset sales to be used to pay off the debt. The Prime Minister has promised to put part of the funds into a green technology foundation, adding to the nearly $9 billion doled out to foundations under the finance minister. It was criticized by the Auditor General in the past.
Then there was the promised employment insurance. The budget announced the EI surplus would swell to $48.1 billion from $43.8 billion last year, and the premium rate is frozen at $1.98 for 2005. The EI rate setting provisions of the Employment Insurance Act have been suspended once again. Rate setting provisions have been suspended since 2001 to keep the premiums artificially high while the Liberals slowly consider changes to the rate setting mechanism. The Auditor General has concluded that, since 2001 rate setting did not observe the intent of the EI act, they are basically balancing the books on workers. “High EI rates is a tax on jobs”, is a quote from the current Prime Minister when he was in opposition.
In the budget the Liberals are promising targeted spending and a plan to clean up government if they are re-elected. Can we trust the Liberals? Just look at the track record. The Liberals have done an awful job and Canadians are not getting value for dollar. Canadians are sending more and more to Ottawa, but hospital waiting lists are getting longer, students go deeper in debt and our soldiers are spread as thinly as ever.
Meanwhile, the tax dollars flow like cheap wine for Liberal friends and bureaucratic sinkholes like the long gun registry, corporate welfare, Challenger jets, grants to special interest groups, the Governor General's spending, friendly advertising agencies and so on. These tax dollars would be far more productive for the multiplier effect to be involved if they were left in the pockets of workers, investors, business persons, homemakers, farmers, fishermen and students rather than in the hands of a government bureaucrat.
It is a contrast of visions: the Liberal old world view, the old bad habits, or the confident march to the future. Canadians demand better and they deserve no less.