Mr. Speaker, first I want to thank my colleague from Montmagny—L'Islet—Kamouraska—Rivière-du-Loup for moving concurrence in this committee report. His timing could not be any better since the government asked the unanimous consent of the House this morning to pass a bill aimed at creating a trust that will be available to the provinces—and to Quebec—whose manufacturing and forestry industries are in trouble.
All the opposition parties gave their consent because this is a small step toward a real strategy to help the manufacturing and forestry industries. No one in this House, except for the Conservatives, and that includes the Prime Minister, the Minister of Industry and the Minister of Finance, can imagine that this will be enough. Let us not be mistaken about that.
This motion brought forward by my colleague from Montmagny—L'Islet—Kamouraska—Rivière-du-Loup will allow us today, in the minutes following the adoption, by unanimous consent, of the bill creating the trust, to set things straight for those who may not have a good grasp of the situation.
The report in which my colleague moved concurrence clearly shows the willingness of opposition parties—and hopefully the government will adopt the same attitude—to be extremely precise with regard to a number of solutions and proposals that would really help the manufacturing and forestry industries.
The motion passed on November 28 by the Standing Committee on Finance states, and I quote:
—the Standing Committee on Finance recommends that the government promptly introduce the tax measures in the unanimous report of February 2007 entitled Manufacturing: Moving Forward — Rising to the Challenge, and that the adoption of this motion be reported to the House at the earliest opportunity.
Today seems to me to be the first and the perfect opportunity to do so since Parliament has reconvened. I will say again that it puts into context the bill passed this morning to establish a trust which will provide $1 billion over three years to all the provinces, including Quebec.
Let me also repeat that the Conservative plan had three flaws, and by “plan” I mean the beginnings of one made public in January. The first flaw is the Prime Minister's attempt to blackmail the sectors, regions, communities and workers affected by the crisis in the manufacturing and forestry sectors, and parliamentarians as well, for partisan purposes.
Aggressively pounding his fist on the table, the Prime Minister declared that, if the opposition parties wanted the plan, as rudimentary as it was, they would first have to swallow the bitter pill of the upcoming Conservative budget. Given that Conservative budgets may contain all sorts of things that are difficult to digest and which can sometimes be extremely harmful to the economic and social health of Canada and Quebec, no one gave in to his blackmail. None of the opposition parties in this House has given the Conservative government, the Prime Minister or the Minister of Finance a blank cheque by agreeing to support the budget because it represents the beginnings of an aid package for the manufacturing sector. This kind of blackmail was in fact denounced in all the regions of Quebec, as I assume it was in all regions of Canada as well.
In view of the consensus in Quebec and under pressure from the Bloc Québécois and labour, the Prime Minister backtracked. Even the Ontario government was behind us on that. Premier McGuinty described the blackmail as nonsense, saying that it was inappropriate at a time when tens of thousands of individuals and their families are going through extremely tough times.
There are two other problems with the Conservative plan that have yet to be solved. The government must be very aware of the fact that even though there was unanimous consent of the House to pass the bill that creates the trust, we will remain vigilant and we will not stop applying pressure. The motion brought forward by my colleague from Montmagny—L'Islet—Kamouraska—Rivière-du-Loup today is totally in this spirit, as was the one from the member for Montmorency—Charlevoix—Haute-Côte-Nord that was debated yesterday during private members business. That motion proposed a strong, detailed, effective and realistic assistance plan for the forestry industry.
The finance committee report before us today mirrors some of the proposals made by the Standing Committee on Industry, Science and Technology. A number of solutions are available to the government. Motions are currently being considered in five parliamentary committees and all of these motions offer solutions to the problem.
The government must understand that now that this trust that will provide $1 billion over three years has been created, it must immediately announce further measures, which it can afford to do. I will remind the House that, in his budget statement, the Minister of Finance announced surpluses for March 31. We are not talking months or years here, but a few weeks.
These projections will be achieved, or close to it. In the budget statement, the Minister of Finance announced surpluses totalling $11.6 billion. The government is now putting $1 billion in the trust for community assistance—I do not remember the exact name of that trust. This leaves $10.6 billion that could be used to make the plan a whole lot better.
As members know, we proposed to use these $4.5 billion for various initiatives. I will get back to this later on in my speech. So, there will still be money left to pay off the debt, to help the elderly, and to make necessary investments for the environment. That money is available and we do not want it to be fully applied against the debt.
Let us not forget that, as we are speaking, Canada has the lowest debt load among G-7 countries. Some huge efforts were made over the past 10 years. It is now time to look after those to whom the Quebec society, the Canadian society, the federal government and all politicians are indebted, namely the people and the communities—often one industry towns—whose jobs and future are threatened by business closures. We must help the unemployed, who were hit extremely hard by the budget cuts made in the nineties.
As a society, whether it is the Canadian or Quebec society, we are indebted to these people, and the time has come to use the government's anticipated $10.6 billion surpluses to pay off that debt. We know full well that, in the end, there will still be about $3 billion left to put against the debt. It would be totally illogical from an economic point of view, irresponsible from a financial point of view, and inhuman from a social point of view to use all of these $10.6 billion to pay off the debt.
As I mentioned, the motion before us proposes measures that can be implemented immediately. There is no need to wait for the budget. The money is there and we know that it will be available. Over the next few days, the Minister of Finance, the Minister of Industry and the Prime Minister are going to announce new measures to help the manufacturing and forestry sectors. So, we must not wait, because everyone, in every region of Quebec and, I suppose, of Canada, feels that what the Conservative government and the Prime Minister announced in January is insufficient.
So we do not need to wait and see whether it actually will be insufficient, as the Minister of the Economic Development Agency of Canada for the Regions of Quebec said yesterday. Everyone can see that it is. He himself opened the door to the fact that this first step, this draft plan for aid to the manufacturing and forestry sectors, was insufficient and that more money was needed in the budget. We cannot wait for the budget. First, we do not know when the budget will happen. There has been no indication in that regard from the Minister of Finance or the government. Every day, every week that goes by brings new human tragedies, new closings and new layoffs. So if we do not want to find ourselves in an even more catastrophic situation, we have to act now.
As I said, the second flaw in the Conservative plan, after the government engaged in this political blackmail, is the fact, and this is still true, that the amounts announced are plainly not enough. It should be at least as much as $4.5 billion from this year’s surplus. As I said, $1 billion has been allocated to create this trust and that leaves at least $3.5 billion to be invested. As I said, that leaves money for other priorities, such as retroactive payment of the guaranteed income supplement for people who failed to apply because they were not informed, and also investments for the environment.
Obviously, we want to see new announcements by the government in the budget to supplement what will be done. We are very aware of the fact that in the next fiscal year the surplus could be a little lower than $11.6 billion and that it will probably be more like $8 billion. It would therefore be wise, in fiscal terms, to use the latitude there is now to invest in the recovery of the manufacturing and forestry sectors.
There is still a third flaw in the Conservative plan: the per capita allocation formula we have been told about. This makes no sense. When we had the mad cow crisis, there was no per capita fund announced. Instead, there was a response to the particular needs of western Canada and Alberta, regions that were more affected than others or than Quebec. Quebec would obviously have liked to have more for its producers, but preference was given to the regions and provinces where the problem was concentrated.
In this case, although manufacturing is essentially located in Quebec and Ontario, it has been announced that funding will be on a per capita basis and not according to needs. That means that Alberta will receive more money per person than Quebec. And yet we know that the manufacturing sector is three times larger in Quebec than in Alberta. This makes no sense. Prince Edward Island will receive three times more than Quebec. This is completely unfair and illogical on the part of the Conservatives. The situation must be remedied.
As I said, in Quebec, the manufacturing sector accounts for about 17% of jobs and 21% of income from employment, and that is nearly three times higher than in Alberta. This sector is currently in trouble. They know, as I do, that a majority of the job losses that have occurred in the last two years in the manufacturing sector were in Quebec. They know, as I do, that 93% of the job losses throughout the entire Canadian manufacturing industry occurred in Ontario and Quebec. However, those two provinces would receive aid on a per capita basis.
Obviously, since Ontario has a somewhat higher population than the other provinces and Quebec, it will receive a considerable amount of money that will still be insufficient. We must not forget that there is a major crisis in the automobile industry, and it will only get worse. But proportionately, Quebec is currently experiencing more serious difficulties. A number of our sectors, such as the forestry sector, are vulnerable because of trade disputes and decisions over which they have no control bequeathed to us by American protectionist lobbies.
So, this allocation formula is completely unfair. I am happy to see that there is perhaps a glimmer of intelligence and foresight. Are the Conservatives seeing the light at the end of the tunnel? Perhaps they were on the road to Damascus like St. Paul. Who knows. But in the bill creating the trust, there is no mention of how the money will be allocated, which, I hope, gives the government an opportunity to put things right after the Prime Minister's disastrous and unfair announcements. The $1 billion should be allocated based on need. Since Quebec is experiencing more difficulties, it should receive at least half of the money. As I said, half of the job losses have been in Quebec.
In addition to the $3.5 billion that we would like to see added to the aid package, we would like the distribution of those funds to be based on need so that we do not end up in a bizarre situation that sees Alberta, with its overheated economy, receive money to deal with the economic crisis. That would make no sense at all. That has to change, just as things had to change when the Prime Minister made the act to create the trust and distribute the $1 billion that was allocated over three years conditional on support for the budget.
We hope that the Conservative Prime Minister will change his mind about this unfair distribution, just as he did in that particular case of political blackmail. I am pleased to see that the Bloc Québécois' pressure has produced results. I would like to quote the Minister of the Economic Development Agency of Canada for the Regions of Quebec, the member for Jonquière—Alma, who said the following in Le Quotidien this morning:
It seems that nothing can be done about the Bloc Québécois' refusal to support the next budget. We had to find another solution to help workers who need help right now to get through the forestry crisis. The Prime Minister's proposed notice of motion would give $217 million to Quebec.
I would like to point out that $217 million over three years is about $70 million per year and about $35 million for each sector, forestry and manufacturing. As the Minister of the Economic Development Agency of Canada for the Regions of Quebec said, nobody is going to be sitting down to a steak dinner. Instead, people will be handed a bowl of stale peanuts to snack on. Even so, in the remarks I just quoted, theMinister of the Economic Development Agency of Canada for the Regions of Quebec recognizes that the Bloc Québécois' firm stance persuaded the government to think things over and realize that there would be a price to pay politically and electorally. Thank goodness this is a minority government. To avoid paying the price, they realized that they had to separate the aid program, the creation of the trust, from the budget. As the Minister of the Economic Development Agency of Canada for the Regions of Quebec said, the only reason the government decided to act was that the Bloc Québécois refused to back down.
In today's edition of Le Devoir, February 5, 2008, the same minister said:
I asked the Bloc Québécois if they were going to support the budget or not and their silence clearly demonstrated that they had no intention of supporting the budget. Thus, under the circumstances, we must act responsibly. That is why we are going to introduce the bill, just to be sure.
That said, once again, we see the determination of the Bloc Québécois at the root of this particular matter. We cannot take all the credit, but this is a perfect example of how the Bloc Québécois serves the people of Quebec.
I must say that the Minister of the Economic Development Agency of Canada for the Regions of Quebec is entirely mistaken. Our decision to support or oppose the upcoming budget will be determined by what is in the budget. We have no ideological prejudices, unlike the Conservatives. We asked for a number of things, including measures to help the manufacturing sector.
If they appear in the budget, our party has no problem voting in favour of the budget, as we did last year hon. members will recall. I was the Bloc Québécois finance critic at the time. I had made it clear that we wanted to see a financial solution to the fiscal imbalance. This did not resolve the fiscal imbalance and the members opposite should not, as usual, make the mistake of thinking that it did. We were looking for a financial solution of $3.9 billion for the third year. In the budget, there was $3.3 billion for the third year. The Bloc Québécois felt very comfortable voting in favour of the budget, as a first step toward a final settlement of the fiscal imbalance. This would require a withdrawal of the federal spending power in Quebec's areas of jurisdiction and would also require negotiations for the transfer of tax room used by the federal government to Quebec and the provinces that want it, for instance.
As proposed by the Séguin commission, our proposal involves transferring the GST to Quebec. That transfer should be orderly, coordinated and disciplined, unlike the government's approach of reducing the GST by one percentage point a year and telling the provinces to move into the room created. That is not what we are talking about. We mean a real, coordinated transfer of the GST.
Naturally, it is going to take some income tax points to ensure that Quebec will have the tax room required to assume its responsibilities. In exchange, Quebec is prepared to relinquish funding from the federal government for health, post-secondary education and social programs. Equalization payments will not be touched. That is in the Constitution and is another matter. They represent an unconditional transfer, which is what Quebec wants.
Although the Minister of the Economic Development Agency of Canada for the Regions of Quebec was right when he said that the Bloc Québécois forced the government to take action, he is wrong to believe that we will vote against the budget. If the budget contained measures affecting, for example, refundable tax credits to help companies that do research and development but that do not turn a profit, or if it announced that the accelerated capital cost allowance, which is now over two years, was extended to five years, we would support these measures. All these measures are found in the report of the Standing Committee on Finance, which accepted the recommendations already made by the Standing Committee on Industry, Science and Technology.
As we can see, the solutions are known and the money is there given forecast surpluses. We will be able to include other measures in the budget. The only missing component is the political will of the Conservatives and of the Prime Minister. Let us hope that pressure from Quebec society, the consensus in Quebec, will force this government to take action in the interests of Quebec, the manufacturing and forestry industries and the workers in those industries.