Mr. Speaker, it was good to see my colleague, the hon. member for Saskatoon—Humboldt, had such a thorough speech that it answered all the critics' questions. Nothing can be called into question by virtue of what we are pushing for today.
I want to read the motion for the benefit of all of us and for crowds and friends who watch with great interest the debate today in respect to all provinces, but particularly to certain provinces including the province of Saskatchewan.
The votable supply day motion put forward by the Conservative Party member for Regina—Lumsden—Lake Centre states:
That the House call upon the government to immediately extend the expanded benefits of the recent Atlantic Accord to all of the provinces since the existing equalization claw-back on non-renewable resource revenues severely curtails the future prosperity of Canada by punishing the regions where the economy is built on a non-renewable resource base.
We want to do more value added, more industrial kinds of things in my part of the country. Since the west came into the Confederation, natural resources has been a big part in those provinces, Saskatchewan in particular.
Something we need to understand is the background, and it has been stated numerous times. For the sake of those tuning in at this point in the day, the Atlantic accord is the background of what we are looking for in terms of a fair deal for other provinces in the federation.
In the recently struck Atlantic accord, Newfoundland and Labrador and Nova Scotia have received a pledge in respect to 100% protection from equalization clawbacks for the next eight years ahead, as long as the provinces receive equalization payments. The deal for these provinces is extended for an additional eight years as long as they do not become a have province. I am sure they want to achieve that, as do most jurisdictions across the country, but until such time it is extended as long as their per capita net debt does not become lower than the other four provinces.
The federal government will immediately provide an upfront payment to those provinces based on the estimated benefits of the agreement between now and 2012. Newfoundland and Labrador will receive an upfront payment of $2 billion and Nova Scotia will receive $830 million. My colleague, the member for Battlefords—Lloydminster, mentioned earlier in the day that the Premier Hamm from Nova Scotia has been urging our caucus to get that money flowing, to get the cheque cut so the province can begin to use it for the benefit of the province.
This is not something just unique to the Conservative Party, but we believe there is a tremendous flaw in the current equalization formula. By signing this deal, the Prime Minister has pretty much acknowledged that the formula was flawed.
The Conservative Party of Canada agrees. On behalf of Nova Scotia and Newfoundland and Labrador. we pressed the case in the House that they deserved to keep their offshore oil and gas. However, what is fair for these provinces is also fair for the rest of Canada. We sometimes say what is good for the goose is good for the gander. In this case, because it is taking into account Newfoundland and Labrador, we also say what is good for the gander is good for the goose. If it gets that kind of deal in Gander, Newfoundland, we should get it in Saskatchewan as well as in other western provinces.
It is estimated that Saskatchewan, had it received that same deal a decade ago, would have received an additional $8 billion for the province from non-renewable resource revenues. That is a significant amount of money. If it had been used and invested in our province over time in a wise way by a non-socialistic government, it could have accrued much more benefit to the citizens of the province of Saskatchewan. If a government had been in place and had squandered the money on socialistic schemes, maybe it would not have been so far ahead. We believe the money rightly and properly used could have been of great benefit to the province of Saskatchewan, an additional $4 billion from oil and gas revenues alone.
For much of the past decade the Liberal government was clawing back Saskatchewan's oil and gas revenues at a rate exceeding 100%, 112% and 103%, but well beyond any benefit we get at the 100% level being clawed back from us. We think that is consummately unfair.
The Minister of Finance who is supposed to be going to bat to protect and look after the interests of our province has not done that. He said that he provided an extra $710 million in equalization for Saskatchewan, but the number is very misleading. If we do the math, of the $710 million the Liberals will claw back $223 million in equalization adjustments, so-called euphemistically. Also $120 million of this money was really to address some past equalization inequities or problems in terms of the math. Because we were in a shortfall, that rightly should come our way and it had nothing to do with the other irregularities. As a result Saskatchewan has a net benefit of about $367 million out of that scenario.
The minister can make the point all he wants of his generosity and helpfulness to the province but the math belies that and the numbers are not really what he provides to us today.
In regard to equalization, Saskatchewan is being treated very unfairly. For example, the provincial entitlement this year for Saskatchewan will be just $82 million. By contrast, Manitoba will receive $1.6 billion and Quebec will receive $4.8 billion. For a province like Saskatchewan just barely having come out of the have not category, we think that is very unfair. There needs to be a serious look at it and an adjustment. Non-renewable resources must no longer be clawed back in the formula for Saskatchewan and other provinces that face a similar situation.
The current Prime Minister and the finance minister made the point prior to and during the last election that they would address western alienation, but as we said in the theme of our Conservative convention last week, promises made, promises broken. They have not addressed western alienation. They just heap more of that upon us and they have driven people further away.
By not providing a fair deal for Saskatchewan, the Prime Minister and the Minister of Finance have turned their backs on our province. We need a change of government at this level. We need some very rigorous advocacy at the provincial level in Saskatchewan by the premier and the leader of the opposition, Mr. Brad Wall, in terms of putting forward a strong case. We assist in our way in the House, even on a supply day like this, to make the point as we did, by standing shoulder to shoulder with Newfoundland and Labrador, and Nova Scotia. We believe we got a raw deal as did they, and there should be an adjustment such that there is no longer the clawback on the non-renewable resources.
With that, I rest my case. Certainly a Conservative government would do much better with respect to Saskatchewan and other provinces which this pertains to, such that we get equity, fairness, and a true and proper way to address equalization across our vast country. We ask for the support of other members across the way. We would hope that the Liberals would find it in their hearts to do the right thing, to do the fair thing for the west and other provinces where this is a big issue. We want fairness. We simply insist on that for our province and look for that at some point in the days ahead.