Mr. Speaker, never before have I risen in this place to speak to a budget as terrible as the one brought down yesterday by the Liberal government. None of the priorities of Quebeckers are addressed in this budget. Quebec has been totally ignored.
Take the fiscal imbalance for example; if there is one issue on which there is a consensus in Quebec, it is fiscal imbalance. Yesterday morning, newspapers reported that a survey showed that nearly 80% of Quebeckers agreed that there was a problem of fiscal imbalance and that it should be resolved. This is not some abstract concept. The people of Quebec fully understand that.
Because of the fiscal imbalance, post-secondary education, among others, is underfunded. Health is also underfunded, in spite of the accord signed in September, whereby the federal government was to increase its participation to 25% of the total over the next four years. In the early days of the program, the federal participation was 50%. There is such pressure on the health care system that, over the next few years, the Government of Quebec will have to be very shrewd in finding the money necessary to respond to the real needs of Quebeckers.
As for post-secondary education, the system is crumbling. Why? Because the federal government's contribution has dropped from 50% to approximately 12% today. The post-secondary education system cannot be properly funded with the federal government not taking its responsibilities. There is no answer in this budget in terms of increasing the federal participation through transfers for post-secondary education in particular.
More shocking yet, a few years ago, the Fédération étudiante universitaire du Québec informed me that the federal government had the nerve to collect tax on the grants students receive from the Government of Quebec. We have been fighting against that for years. Not only is the federal government continuing to fail to take its responsibilities with respect to transfers for post-secondary education, but it is also taxing student grants from the Government of Quebec.
In 1996, the current Prime Minister, when he was the finance minister, changed how transfer amounts were calculated, moving from the needs of the provinces to a per capita basis. Since 1994, because the amounts paid in 1994 were indexed, Quebec has lost more than $14 billion in federal funding.
They have the nerve to say that with the increases in federal transfers we are back at 1994 levels. That is, the non-indexed 1994 level. We are back at the same level as in 1994, but in the meantime there has been a general increase in the cost of health and education. We are not at the same level. Some $14 billion in total is missing from the kitty and $1.2 billion a year, if we really want to go back to the same indexed level as the transfers that existed in 1994.
We are dealing with a situation—and that is the fiscal imbalance—whereby too much money goes into the federal government's coffers in relation to its responsibilities and not enough money goes to the coffers of the Government of Quebec in relation to its basic responsibilities in health, post-secondary education and social assistance.
Even with the agreements on health and equalization, when we calculate what the fiscal imbalance costs the Government of Quebec each year, we are talking about $2.3 billion. We are not talking about hundreds of millions of dollars, but a $2.3 billion shortfall every year. This would not be the case if the fiscal imbalance were resolved.
I was listening to the parliamentary secretary this morning—the Prime Minister is just as guilty of this and the Minister of Finance even more so—deny the very existence of the fiscal imbalance. I would remind him that we currently have a House of Commons special committee, which I am proud to chair, with a mandate to prepare a report on resolving the fiscal imbalance by June 2. It is in the Speech from the Throne and they agreed to it. This issue is addressed in the Speech from the Throne.
The special committee began its work in Halifax last week. It will be in Toronto next week and Quebec City on April 11. Judging by the high turnout and the popularity of the hearings, I would suggest that people are coming out to have a say on the fiscal imbalance precisely because it does exist.
If there were no fiscal imbalance, this special committee would not attract as many witnesses. The Liberals are the only ones not acknowledging that there is a problem, and not a new problem. It was recognized by Mr. Pearson in 1964. He transferred tax points to those provinces who wanted to take advantage of them, particularly for educational funding. Then, in 1971, came the Victoria conference. Only the Liberal government does not understand that huge surpluses are accumulating at this time in the federal coffers. According to our assessment, and those of the Conference Board of Canada and the Canadian Centre for Policy Alternatives , $10 billion in surplus funds is going to accumulate yearly in the federal government's coffers. This government does not seem to get it: there is too much money in its coffers and not enough in the provincial coffers.
Ontario recorded a $10 billion deficit last year. Next year, Quebec is headed for a deficit estimated at around $1.5 billion to $2 billion. There is a problem somewhere. The single taxpayer is paying too much to Ottawa and then having to face the consequences of Quebec not having the proper resources to provide basic services such as health care, post-secondary education and help for disadvantaged families.
Employment insurance is another priority for Quebeckers, and probably for Canadians as well. In the past three elections, the present Prime Minister, and then finance minister, kept promising us in-depth reforms. He travelled to the regions and when things began to heat up a bit—I remember one instance in Saguenay—Lac-Saint-Jean—he said “No need to get upset, we are going to fix the problem. We are going to overhaul the program.” When the next election came along, the same thing happened. When things began to heat up a bit, he repeated the same promise—since the PM is a bit of a chicken, as well as being a ditherer. In the last election campaign, there he was again saying: “Don't worry, the Standing Committee on Human Resources, Skills Development, Social Development and the Status of Persons with Disabilities has provided us with not one, but two unanimous reports, including the Liberal members of the committee—one wonders if they are sticking to their convictions—and we are going to solve the problem.”
We are now at the budget, a few months after the election campaign, and we find ourselves with a so-called reform of employment insurance, which is getting $300 million for seasonal workers in the most affected regions. That is seven one-thousandths of the surplus that the Prime Minister, when he was finance minister, stole from the employment insurance fund, the contributions of employers and employees. He comes to tell us that the unemployed will be satisfied with this injection of $300 million.
I was listening to the Minister of Human Resources and Skills Development and the lieutenant of the Liberal government and Minister of Transport say: “The unemployed will be happy. This is great. The unemployed will think this is great.” I invite them to tour the regions with us to see if it is all that great. I think they will have a great reception, but not in the way they think.
This reform was supposed to ensure—and this had the unanimous support of the House, coming from the Standing Committee on Human Resources, Skills Development, Social Development and the Status of Persons with Disabilities—that the number of hours needed to access employment insurance was reduced to 360, that the number of weeks of benefits was increased, and that benefits were higher for all workers. Instead of that, we have a general, short-term pilot project. Nothing has been resolved. Since they say it is great for the unemployed, I am eager to see the reactions in the next few days.
Furthermore, they say it is marvellous, because there is going to be a commission independent of the government. That is a smokescreen: government members will be sitting on that commission. What is more, they tell us in the budget that they have set the premium rate at $1.95 for a long period of time. It was supposed to be $1.92, but they kept 3¢ more to finance their second-rate $300-million initiative. So what is the commission going to decide? Nothing, because it is already decided. If it ever decides something one day, the government will be party to that decision. What is more, the Liberal government reserves the right to overturn that decision by the commission. Hurray for the independent commission. No independent commission would prevent the government from cheerfully dipping into the employment insurance fund surpluses, and they expect us to believe that a miracle has come to pass with this remarkable initiative.
As for parental leave, in the second week of the election campaign the Prime Minister was telling us: “It's done. Don't worry: the day after the election there will be no more talk about it, because it will be resolved”. Well it is still not resolved. It is not resolved in this budget.
For years young parents in Quebec, men and women, have been waiting for the Quebec system, which depends on a transfer from the federal government's EI fund. People in Quebec are entitled to ask for this. It is a transfer to fund this initiative.
Young parents have been waiting for years for a system that would cover men and women who are self-employed. For years people and parents have been waiting to get out of this horrible federal parental leave system which depends on the employment insurance regime. Just think: the government values families so much that when young parents decide to have a child, they are given a two week penalty because they are subject to the Employment Insurance Act. What a way to value families.
People expected this to be taken care of. On the other side, the compliant Liberal members from Quebec, tell us. “It will be taken care of. Be patient, be patient.” They have been telling us that for years about employment insurance and parental leave. Where are they? They applaud. They stand to applaud a budget that completely ignores the priorities of Quebeckers. The Liberal members from Quebec, who were cut way back in the last election campaign, rise to applaud, even though none of these Quebec priorities are in the budget. It is appalling. We will make them pay one day, even more than they paid last June 28.
Insofar as day care is concerned, you should have heard them. For six months it has been unbelievable. They are full of praise for Quebec. They say, “The Quebec day care system is the most progressive in the world. We are going to copy your system,” and so forth. All the while, Quebeckers alone have been paying for the day care system in Quebec. For more than five years now, Quebeckers alone no longer benefit from the federal tax credits and tax deductions that they used to have when children went to day care for $35 a day. Now it is $7 and there are tax losses. The federal government has never wanted to acknowledge these losses. It has never wanted to correct these losses, while in Quebec, parents have lost more than $1 billion over five years in federal tax deductions and tax credits because the government does not want to correct the tax system to take into account this progressive policy, which they praise to the skies.
In this budget, for the first year there is no problem, because $700 million will be in trust. The provinces will be able to go and get this money. Nevertheless, what happens the second year will be a problem because, in later years, national standards will be applied. Criteria for the transfer of funds will be applied to the provinces. From the mouth of the Prime Minister himself during the election campaign, we heard it was to be an unconditional transfer, because Quebec had already established its $5 and $7 day care system—five years ago. However, that is not the case anymore. According to the budget, conditions and criteria will have to be negotiated. Quebec will have to give in, as they tried to make it give in regarding health, which is under Quebec's exclusive jurisdiction, as they tried to make it give in last September when they negotiated the health agreement and the transfers of funds involved.
With respect to social housing, the government's attitude is detestable. I remember clearly that, during the election campaign the Prime Minister met with members of FRAPRU, the Front d'action populaire en réaménagement urbain. He met them in front of the cameras. He wanted to show that, even though he had ships in the Caribbean, even though he did not pay income tax in Canada, even though he and his Canada Steamship Lines completely ignored labour and environmental laws, he was someone with his hand on his heart, left leaning, progressive. He promised the people that he was going to care about social housing for the most disadvantaged in our society and that he would fix the problem. In the first budget of the minority Liberal government, there is nothing about social housing. It is a big fat zero. That is so horrible. It is enough to make one lose faith in politics. People may well be fed up with politicians, because they never keep their promises. The Liberals lie shamelessly when it is time to win seats, when they are on the ropes and at risk of losing power. It is disgusting to offer things like that and win an election, as the Liberals did, on false promises.
Agriculture is another priority for Quebec. This is the worst crisis agriculture has faced in 25 years, and there is no significant federal contribution to resolve this crisis.
As for international assistance, we can talk about it. At the current rate, and including the amounts provided in yesterday's budget, five years from now, it will have reached 0.3% of GDP, with only four years left to reach 0.7% of GDP. At this rate, we will never reach the target set by the UN. It is smoke and mirrors to say that spending in this area is increasing and that the UN target will be met.
I need not list tax reductions, since there were none. Approximately $1.33 a month per family, starting in 2006, the cost of a litre of milk every month. Still, they speak of incredible tax breaks and paying attention to the people.
This budget does not in any way meet the priorities of Quebeckers. Every year, we taxpayers in Quebec send more than $40 billion in taxes to the federal government. It is time to wake up. Consensus and priorities are developing in Quebec. These priorities are tested and expressed by the National Assembly, often through unanimous motions. When the time comes for action to be taken in the House of Commons, Quebec is ignored, for purely electoral reasons. Quebec lieutenants are sent to tell us that this is a good budget, which serves Quebeckers well. It is despicable to operate only with a view to being elected.
Listen to this. Over the next three years, year in, year out, the federal government will have a surplus in excess of $10 billion in its coffers. It is stashing this money away with a view to elections. Whenever he decides to call an election, the Prime Minister will have enough surplus money on hand to give out gifts, win the election, and have a majority government again, because it looks like the Conservatives are losing steam. Then, he will find money to invest a little something in health and post-secondary education and to resolve the employment insurance problem to some extent. With an eye to elections, this government, applauded by the federal MPs from Quebec, has decided not to meet any of Quebec's priorities.
During that time, patients are lined up on stretchers, despite the accord signed in September; students are not receiving the services and quality of education they are entitled to, because education is underfunded; individuals among the most disadvantaged are sleeping on the streets or have to spend more than 50% of their income on housing and are left with less than 50% to cover basic needs like food and winter clothes for their children.
It is for election purposes that such a crummy budget was brought down, so crummy that Quebec is being given short shrift, in every one of its priorities.
I would like to conclude by pointing out that yesterday, when I saw the Liberal government presenting a budget that totally ignores Quebec's priorities and consensus, when I saw the official opposition on their feet applauding the budget, I understood one thing as a Quebecker, and I hope that all Quebeckers understood the same thing: this country is made up of two countries, and as far as Quebeckers are concerned, there is one too many.
If $40 billion in tax dollars had been handed back to Quebec years ago, we would have remedied fiscal imbalance a long time ago. There would be only one level of government so there would be no more fiscal imbalance. The parental leave issue would have been long settled, as would all the problems with EI. All of the priorities and all of the consensuses reached in our National Assembly would have been implemented. We would not be waiting for anyone else to act. We would not be the victims of election-focussed calculations by the Liberal government. We would be taking the right steps to become one of the most prosperous countries in the world.
I hope that the people of Quebec have finally got the message. In the days to come we will be expressing other reactions to the budget. I can guarantee that the Liberals will pay, like the Conservatives and that Quebec is, even more than ever, a distinct society, a distinct people capable of looking after itself.
