Mr. Speaker, I am pleased to participate in this debate in support of the motion introduced by the member for Labrador, which reads as follows:
That, in the opinion of the House, the government has failed to live up to verbal and written commitments made to Premiers by the Prime Minister during the last election campaign with respect to the Equalization Program and the Atlantic Accords.
It is quite serious when we have to stand in the House and make such a resolution about the Prime Minister, about his engagement, his respecting of his word. There are institutions that Canadians have to be able to depend on. One is the office of the Prime Minister. While we may debate policy, while we may have different opinions on how to bring the country forward and what the right programs are for our country, we should always be able to depend on the office of the Prime Minister, and that whoever occupies that office at the time will be a person of integrity who is true to his or her word.
It is very disappointing that we are in the situation where Canadians cannot trust the office of the Prime Minister because the person who holds the office has shown time and again that his word is completely meaningless. Let us remember back to before the same individual became Prime Minister. He said that supply management was a communist scheme of price fixing. He said that we had to build firewalls around Alberta. On national unity he said he did not care how many national capitals there were, and he now calls himself the great defender of national unity. That is the person in whom we should be able to put our trust and confidence in trying to advance the interests of the citizens of this country and the country's future.
When we look at the example of the Atlantic accord, I think first we should look at what the accord is. The accord is quite simple. It says that Nova Scotia and Newfoundland shall benefit from 100% of the revenues from their non-renewable resources, in this case offshore oil and gas, to the exclusion of all other programs. That means if there is change in equalization, if there is additional money given in other programs by the federal government to the provinces, that Nova Scotia and Newfoundland would their share and the Atlantic accord is separate from that. It is above and beyond all other programs.
The budget turns it into an either/or situation. The province of Nova Scotia and its finance minister must decide whether to participate in the new equalization formula which has some advantages for Nova Scotia, or to maintain the Atlantic accord which also has some advantages for Nova Scotia. If Nova Scotia goes into the new equalization formula, the Atlantic accord substantially disappears, the amount of revenue is capped and Nova Scotia stands to lose $1 billion.
Some may argue that in the current system the accord is a disproportionate benefit for Nova Scotia and Newfoundland and Labrador. Well, perhaps one could make that argument. Perhaps the Prime Minister could advance that argument but that is not the argument he advanced during the election campaign. He said in writing and verbally that he would honour the letter and the intent of the accord.
I remember when I was on the government side of the House, we presented a budget that included the ways and means to implement the Atlantic accord. The Prime Minister and members of his party, the opposition at that time, asked that we split the bill, that we remove the Atlantic accord from the budget because the intention of the opposition members at that time was to vote against the budget but they wanted to vote in favour of the accord.
That was the very same accord they are now knee-capping. That is pure hypocrisy and it is a betrayal. It is a betrayal to the people of Atlantic Canada and it is a betrayal to the people of Saskatchewan who were promised that they would get 100% of the revenues of non-renewable natural resources outside of the equalization formula.
It was pointed out by the member for Labrador that we are getting hit now, as will others, each at their time.
The Prime Minister, when he made those promises in the campaign, did not say he would somewhat honour the accord but would cherry-pick elements, suggestions and recommendations out of this and that report, some from O'Brien and some from others, and make a budget that dismantles the intent of the Atlantic accord. That is not what he promised. He promised that there would be 100% exclusion of non-renewable natural resource revenues from the equalization payment and that the accord would be maintained.
I was disappointed. I happen to have the privilege of sitting on the finance committee, where we evaluated the budget. Premier Lorne Calvert came before us and made a very good presentation on behalf of his government. I was very disappointed, as was mentioned by the member for Halifax West, by the relative weakness of the premier of Nova Scotia on this issue.
We know that he is in a dire political situation. We see in the polls that he is in third place. There is not a lot of confidence in his government. People are looking for alternatives. Rather than showing strength and fighting for what already has been won by his predecessor, the relative weakness of the premier of Nova Scotia on this issue can be seen. We are not asking for anything new here. We are asking that the Government of Canada honour its commitment.
That brings me to the second point, which is the institutions. We must be able to trust the Office of the Prime Minister and whoever occupies it, and we also must be able to trust the legacy of the succession of the Government of Canada, in that an agreement signed by one Government of Canada lasts until the end of its natural course. In this case, it would be 2020. An agreement is an agreement is an agreement.
Premier Rodney MacDonald should accept the invitation of Stephen McNeil, leader of the Liberal Party, to put forward a common front. Although I have not been in discussions with him, I am sure Darrell Dexter would join. We would have a common front with all Nova Scotians fighting for 100% of the Atlantic accord.
What we see and hear in the papers and the media is that there are negotiations happening, and the Minister of Fisheries and Oceans mentioned that in question period, negotiations for improvements in the bill presented by the government, but not the 100% retention of the Atlantic accord.
A promise 90% kept or 80% kept or 70% kept is 100% broken. The accord is a signed deal. It should be maintained. I think the member for Cumberland—Colchester—Musquodoboit Valley has made it very plain.
Let us look again at the institutions of our country. Let us look at our Prime Minister. He and the Minister of Finance, during the election period, promised that they would not tax income trusts. They gave that solemn promise to Canadians. Canadians, many of them seniors, were encouraged to invest even more within the income trust sector as they had the promise of the Prime Minister that they would not be taxed.
What does he do? At the first occasion, there is a 33% tax and a 100% betrayal of those investors, with $25 billion worth of capital loss, a lot of it in the hands of seniors, either retired or preparing to retire. Let us imagine this. I spoke to some seniors who told me that they went from having a comfortable retirement, and being economically and financially self-sufficient, to poverty, essentially, to sustenance living on small pensions and reduced savings.
They were losing $10,000 to $15,000 of revenue a year. When one's revenue is $35,000 to $45,000, losing $10,000 is a lot. It is huge. That is money they had depended on. They had been encouraged to do it by the Prime Minister. If the Prime Minister had not made that promise, the reasonable investor would not have had such huge exposure in one element of the market, but that was not the case.
The Atlantic accord? Betrayal. It was a betrayal by the Prime Minister of the people of Atlantic Canada. And there was a betrayal by the Prime Minister of the people of Saskatchewan.
As for the member for Central Nova, he is an experienced member of the House of Commons who is not prone to fly off the handle and do things he has not considered. He has been here long enough. In answer to my question, he made a promise in the House to his colleagues that they could vote as they wished, that they could vote their conscience on the Atlantic accord and there would be no retribution and they would not be kicked out of caucus.
Either he was misleading the House or he is a complete buffoon, because he knew, as we saw with the vote, that the minute the member for Cumberland—Colchester—Musquodoboit Valley voted his conscience, he was removed from his caucus.
The member for Central Nova goes around the world representing our country. We have seen the Prime Minister betray the country, its citizens and Atlantic Canada, and we have seen the Minister of Foreign Affairs betraying his colleagues. These people are out there representing the interests of the nation and entering into dialogue with statesmen from other countries in trying to find accommodations to bring forward. Those people from other countries can have no confidence in the institutions of our country.
It is a dire situation. It is a situation that I have not seen before. I ask that the Prime Minister and the Minister of Finance apologize to Canadians, to Saskatchewan and to Atlantic Canadians before it is too late and reverse this unfortunate decision.