Mr. Speaker, I am delighted to continue my presentation on Bill C-30, the budget implementation bill.
Before oral question period, I had said that this bill created three imbalances. First, the obvious fiscal imbalance; second, the social deficit perpetuated by the budget tabled this past March and its implementation through Bill C-30; third, the environmental imbalance created by the federal government with Bill C-30.
I have spoken at length on the shortfall Quebec has experienced and continues to experience, particularly since 1994, as a result of the reduction in transfer payments to the provinces. This prevents Quebec, and of course other provinces, from delivering the health care and services that are essential for the well-being of our taxpayers.
As well, the conclusion that there is a tax imbalance is based on research carried out by Jacques Léonard, former president of the Quebec treasury board. Some days or weeks ago, the third component of this research was released, an analysis on the evolution of the four key federal government transfer programs, namely transfer payments, equalization payments, the employment insurance program, and even the old age pensions.
The main conclusions about this federal reality indicate that federal government revenues have risen 45%, while transfer payments to Quebec and the provinces have increased a mere 1.9%. Taken as a dollar amount per capita, federal revenues have increased $1569, and transfer payments for health, education and social programs have dropped $34.
Some members of this House, Bloc Quebecois MPs, were part of the Léonard Committee. I am thinking of my colleagues from Lotbinière—L'Érable, Joliette and Saint-Hyacinthe—Bagot specifically. The committee recently revealed one other finding: it reached the conclusion that the financial effort the federal government devotes to transfer payments to Quebec for health services has decreased 40%.
This fiscal imbalance is a natural occurrence, but one not acknowledged by the federal government, since it considers itself to be a new government. There is a shortfall for Quebec, no doubt about it.
There is another aspect to this growing social deficit. While it might have been expected that the government would eliminate the injustice which it created itself by changes in the employment insurance rules, nothing in this budget does anything to repair the gaps pointed out many times by the Bloc Quebecois, not only in this House, but with the workers. These gaps mean that the workers in seasonal industries are penalized. Young people and women are penalized by these changes in the EI system.
Workers pay their premiums to the EI system, but very often they cannot receive benefits. If the employment insurance fund were in a deficit position, that might be understood. But the accumulated surpluses in the EI fund are over $45 billion. That is three times as much as the Chief Actuary of Canada judged normal and sufficient to meet the needs.
She indicated that $15 billion would have been enough. The fund is in a surplus position. We have asked many times—there was a consensus among opposition parties on this—that the employment insurance fund be independent, that it be managed by the employees and employers and not by the government. Experience has shown us that the government manages this fund badly and that makes one think of a kind of theft.
The premiums are being raised. At present, they are $1.98 per $100, while the rate that would lead to equilibrium is $1.81. Clearly, there is overcharging, and that is why there are surpluses in the EI fund. Unfortunately, citizens are not able to enjoy the benefits.
Actually, part 5 of the bill before us today perpetuates the fact that it is the federal government which sets the premium rate. As I indicated earlier, we know that this rate often exceeds the rate of $1.81 that would ensure a balance. So, there is a social injustice created by an employment insurance fund that is far from benefiting the workers who contributed to it.
We could have expected the government to deal with another issue, namely social housing. The hon. member for Hochelaga—Maisonneuve, who is here right now, reviewed this issue with the hon. member for Terrebonne—Blainville. We would have liked the recent budget to provide for a reinvestment of some $2 billion. We would have liked to see 1% of the federal budget earmarked for social housing.
The reason is that in years past the Liberal government confirmed the withdrawal that had already been announced by the Conservative government in 1993.
One cannot speak from both sides of the mouth. On November 22, 1993, the current Prime Minister replied to the national coalition on housing. Here is what he said about reinvesting in social housing.
—I want to be absolutely clear—
The word “clear” was already part of the present Prime Minister's vocabulary, 11 years ago.
—I want to be absolutely clear that a Liberal government would commit to stable and guaranteed funding for cooperative and not for profit housing.
Things stood clear in 1993. The present Prime Minister, who was to become finance minister, committed to stable funding for the cooperative and not for profit housing sector. What happened after 1993, when the present Prime Minister became finance minister? Well, he literally stopped funding social housing.
There is another important date in 1990. At that time, the present Prime Minister, who became finance minister, shared his intentions and his vision on social housing.
In May 1990, in a report of the national Liberal caucus task force on social housing, the present Prime Minister stated, and I quote:
The Mulroney government has, from the start, cut housing programs and budgets. It has dumped its responsibilities onto the provinces.
That is what the present Prime Minister said in 1990.
The Mulroney government has cut housing programs and budgets. It has dumped its responsibilities onto the provinces without giving them the corresponding financial means. And it has been insensitive to the dire needs of thousands of Canadian households.
That was what the present Prime Minister was telling us back in May 1990. However, he has been the one mainly responsible for disinvestment in housing.