Mr. Speaker, I am pleased to have the opportunity to speak to today's rather unusual motion. I say it is unusual because there is no doubt about this government's confidence in the vitality of Ontario's economy. In fact, when we speak of Ontario's economy, its sheer size and weight make it actually the greatest and most significant contributor to the Canadian economy. Its economic success is synonymous with Canada's economic success.
Our government demonstrates that confidence in Ontario by our actions and our commitments. I am pleased to take a moment here today to highlight some of the measures our government has taken to help ensure the economic vitality of Ontario.
These include the historic changes we undertook in budget 2007 to restore fiscal balance in the Canadian federation and measures that responded positively to Ontario's longstanding demands, demands that I must say the previous Liberal government was adamantly against and actually fought strongly against.
It is odd, and in fact I think it is quite hypocritical, that the member for Markham—Unionville would have the audacity to lecture this Conservative government and this Minister of Finance on relations with the province of Ontario. Apparently the member and his Liberal Party colleagues have collective memory problems.
For example, has he completely forgotten that only a few years ago he and the federal Liberal government engaged in an attack on the Liberal premier of Ontario, Dalton McGuinty, going as far as to suggest that Premier McGuinty was a threat to national unity because of his and his government's campaign to have the fiscal balance addressed?
Let us go back in time to one speech in particular, a speech the member for Markham—Unionville gave at the Toronto Board of Trade in April 2005. In that speech, the member, then a member of the Liberal cabinet and the federal minister for the GTA at the time, launched an all-out assault on the McGuinty government and his own provincial cousins, accusing them of using an “analytically deficient” campaign which threatened to put “the essence of Canada at risk” and was “dangerous for Canada”. He added “that it would only serve to give comfort to Quebec's separatists”.
Based on this past experience and the remarks of the member, one can seriously question the appropriateness of his lecturing our government on how to maintain cordial relations with the McGuinty government in Ontario. I would add that the reaction to the member's over the top remarks was unequivocal.
A Toronto Star editorial, for instance, lambasted the member for insulting all Ontarians and alleging that the premier, through his work to seek fairer treatment, in fact was intensifying the self-inflicted damage the federal Liberals had done in Quebec with the sponsorship scandal. Responding for Ontario's Liberal government, Dwight Duncan, Ontario's current finance minister, was so outraged that he publicly demanded that the member apologize.
Of course, one should not be surprised that the member would take such a position that insulted so many Ontarians, because in government, just as in opposition, the Liberal Party has consistently and vigorously denied that the fiscal imbalance has ever existed, ignoring the valid concerns of provinces like Ontario.
No, after nearly a decade of federal Liberal inaction and apparent delusion, it was our Conservative government that took decisive and concrete action to recognize and acknowledge that there was a fiscal imbalance. We demonstrated that through a comprehensive $39 billion plan unveiled in budget 2007, which put federal support for provinces and territories on a long term, predictable and principle based footing for the future.
We returned equalization to a principled, formula based program based on the recommendations of the O'Brien expert panel.
We made changes that addressed Ontario's deep concerns, including moving to equal per capita support through the Canada social transfer and, in the future, equal per capita cash in other major transfers for infrastructure, job training and health care.
Another important change that responded to Ontario's concerns was the inclusion of a provision to ensure that payments to provinces, those becoming wealthier than those provinces not receiving equalization, should be capped, a concept often referred to as the fiscal capacity cap.
As a result of restoring fiscal balance, Ontario will receive $13.9 billion in fiscal 2008-09. That is an increase of $1.4 billion from last year and almost $2.7 billion since 2005-06. These transfers include $8.6 billion through the Canada health transfer and $4.1 billion through the Canada social transfer.
Ontario's government, understandably, was quite content with this government's actions to address their long-standing grievances regarding fairness in intergovernmental relations. Indeed, many members of the Liberal provincial government were quite open and generous with their praise.
The then Ontario finance minister heralded the measures, noting “I think we've made some significant progress, particularly on the issue of fairness in the wonderful world of fiscal federalism”.
The then Ontario intergovernmental affairs minister also praised it as “real progress”, adding that she was heartened to see that “the federal government has committed to delivering transfers on a per capita basis in the future, with immediate fairness in the Canada social transfer and many other federal transfers”.
Premier McGuinty, who called the action “real progress for Ontarians”, also expressed his appreciation for the respect our Conservative federal government had shown toward the province's concerns. I quote verbatim from a televised interview on CBC Newsworld. He said, “We've made a lot of progress, I would argue, on behalf of all Canadians to try to get beyond an endless series of one-offs and restore some basis of principle to transfers from the federal government to all the provinces and territories. The Prime Minister said that he was now, for the first time in a long time, and I support him fully in this regard, he was going to introduce a principles based approach to dealing with federal transport. No more one-offs and I support that”.
Contrast that spirit of cooperation between our Conservative government and the provincial Liberal government with the rather dismissive response that came from the previous Liberal federal government, most notably the member for Markham—Unionville.
What is even more egregious is that the Liberal Party of Canada not only voted against budget 2007 and its measures to address Ontario's concerns, but it shockingly fought it every step of the way, with not one Liberal member of Parliament joining our Conservative government to stand up for Ontario. Make no mistake, Ontarians noticed.
Permit me to quote from an Ottawa Sun editorial from that time, which said:
—while the Conservative government...is defending Ontario, where do Ontario Liberal MPs stand?....What are Liberal MPs doing now that [the Liberal leader is] ignoring, again, the rights of Ontario taxpayers? Or do they agree with Ontario Finance Minister Greg Sorbara, when he says it's not fair because some of those provinces already invest per-capita more money than Ontario in sectors like education and health?
Unfortunately, the answer to both these questions was they did nothing. They did not agree with their provincial Liberal cousins. Worse still, Ontario Liberal MPs then stood in the House and voted no to the measures that enhanced the well-being of and contributed to the future prosperity of Ontarians.
On what basis does that member opposite and his Liberal colleagues in Ontario challenge the manner that we in fact work cooperatively with Ontario? No, we have nothing to learn from that member.
We have charted a new course, a course of open federalism that recognizes the strength and contribution of each region of our great country, one that is anchored in a desire to make Canada an even stronger federation. By forging ahead with our vision of open federalism, we remain focused on building Canada's future prosperity.
Canada today is a country that is confident and prudent, idealistic and practical. History has proven over and over again that a balanced approach to fiscal policy, based on low taxes, lowering the debt burden and disciplined spending, creates the sturdiest foundation for a strong and successful economy.
This is the course we will pursue for Ontario and for all Canadians.