I apologize, Mr. Speaker. I was quoting an article that mentioned the Prime Minister's name. I withdraw my comments.
As I was saying, “It is an outdated conservatism that is not found anywhere else in the west.” That is well stated and it is true. When the economy hits a wall due to circumstances that are short-term and structural, it is the responsibility of the governments to intervene.
Two weeks ago, an organization that is known for its restrictive policies, the International Monetary Fund, encouraged countries to increase spending. We agree.
The government has a duty to intervene, which the Conservatives are not doing. Their industrial policy is nothing but magical thinking. For example, they have not announced a program to help companies modernize, nor have they announced an industrial research support program. Even worse, they cut Technology Partnerships Canada, the main industrial research program. For the aeronautics industry, the new program is more generous than before this government came into power. As for the other leading-edge sectors, such as pharmaceuticals, expanding environmental technologies, new materials or production technologies, they have been left to their own devices.
When an industrial sector is in danger of collapsing because of an increase in imports, Ottawa systematically refuses to establish safeguards to give the industry time to adapt. And when the government makes purchases, it does so without any thought of the economic impact. Every time the Conservatives are criticized for their inaction, they invariably point out that they have lowered taxes. But, in 2006 the manufacturing sector in Quebec made zero profit, and a business that makes no profit pays no taxes. So much for a business support measure.
In the February 2007 report on the manufacturing industry, the members of the Standing Committee on Industry, Science and Technology were unanimous when they said we need to act. All of the members, including the Conservative members, recognized that the manufacturing sector is in crisis, that all sectors of the industry have been affected, that the government's inaction is not a response and that industry needs to be much better supported through tax measures, budget measures, trade actions and structural investments.
It is more than a year later, and the government has yet to hear the cry for help. Of the 22 unanimous recommendations made by the Standing Committee on Industry, Science and Technology, the government has implemented only one—a tax reduction for businesses who invest in the form of an accelerated capital cost allowance. This is another tax reduction.
We believe that in order to achieve prosperity, for example, which is at the core of this motion, we must focus on research and development, which require support from all levels of government.
The Quebec government did so in the past, under Bernard Landry and what he called the technological conversion or shift. While Quebec was going through a very serious economic crisis, Landry's team established a new economic policy focused on building Quebec. Partnership with the private sector is the guiding principle that will allow the government to promote the development of new technologies.
Quebec's current technological edge compared to other western economies suggests that interventionism, in partnership with the private sector, creates wealth and knowledge. All that is working. Thus, it is crucial that the risks be shared by the government and knowledge-based businesses in order to develop a modern, diversified economy. The countries that are most successful in this area know this.
The federal government, however, continues to adopt a laissez-faire attitude that is counterproductive for Quebec. Until Quebec is equipped with every economic lever, the Bloc Québécois will defend in this House Quebec's decision to provide an environment that is competitive and advantageous for its businesses.
The federal government, however, guided by its right-wing ideology, does not want to become involved in economic development. The laissez-faire attitude is the Conservatives' solution to all economic problems, and we see this again with the recent Minister of Industry. However, the knowledge-based economy needs support from the government to develop, evolve, break into new markets and deal with competition from countries that do support their industry.
Many governments have understood that. The Conservatives rely on the free market when the true reality of the market is that our competitors are benefiting from government assistance. Doing nothing might work for the cities of Edmonton and Calgary, but for Montreal it puts the brakes on development. Just because the rest of Canada is becoming wealthier from oil production does not mean that Quebec should pay the price.
The federal government is not a reliable partner for Quebec when it comes to funding research and development. The federal government's share of research and development funding has dropped in the past 30 years. In 1971, the federal government covered 45% of research and development spending in Canada. In 2003, it covered just 18.7%. Without Quebec, Canada would be devoting just 1.4% of its GDP to research and development, which is slightly more than the Czech Republic. Canada ranks 13th in OECD countries and fifth out of the seven G-7 countries. As a sovereign country, Quebec would be above average and rank fifth among the 30 OECD member countries. Only Sweden, Finland, Japan and Iceland make a greater effort.
Ottawa is not a reliable partner for Quebec. High-tech industries are experiencing great uncertainty and Quebec's economy is suffering the consequences far more than Canada's economy. To prosper, we must build on our strengths. The aerospace industry is one of our strengths. The Conservative government does not really have an aerospace policy and it has no intention of developing one. The striking example of this dogmatic laissez-faire attitude is the lack of respect toward Quebec in federal contracts awarded to an American company, Boeing, for military transport aircraft. What is more, the Conservatives have made it clear they would do the same thing in the future.
Depending on the year, Quebec's aerospace industry represents 55% or 60% of Canada's aerospace industry. It would only be normal for Quebec to get its fair share of the spinoffs from the federal aerospace contracts. In our opinion, Quebec's fair share is somewhere between 55% and 60%. The total amount of spinoffs from the military aerospace contracts is $9.2 billion. Unfortunately, because Ottawa lets American companies decide the fate of the aerospace industry, Quebec will not be getting its fair share.
Nevertheless, Quebec is the aerospace leader in Canada with $11 billion in deliveries, the majority of which, or 89%, are exports. I would like to point out again that Quebec is the leader in this industry in Canada. Calling on the federal government to recognize this Quebec economic reality is not asking for charity.
We feel that this is an attempt to weaken the foundation of the Quebec economy at a very critical time. Overly dependent on pumping their revenue from the ground, the Conservatives can see no other way of creating wealth. For the Conservatives, finding oil in Quebec is the way to make it wealthy. However, in Quebec, we believe that wealth is the product of creativity and competence. Quebec's economy is different from that of Canada and the government should recognize this fact.
We believe that contributing to Quebec's wealth requires that the federal government change its bad procurement policies, that it stop abandoning the aerospace industry and that it put in place a true aerospace policy. If the federal government does not understand the interests of the Quebec economy, then it should hand over the money to the Government of Quebec. It would thus be saying, loud and clear, that Quebec is a nation and its actions would support this statement.
Another means of increasing prosperity is to invest in education. We believe it is very urgent that transfer payments for post-secondary education be increased. Some believe that there is no longer a fiscal imbalance because federal transfers have increased a great deal. However, the reality is that, in comparison to federal revenue, transfers are lower than they were in 1995. For every dollar of federal revenue, 7.3¢ were transferred in 1995 compared to only 6.2¢ in 2007. This is especially true for education transfers, which need $3.5 billion to return to 1995 levels, or $817 million for Quebec.
All Quebeckers agree that there is a need for increased transfers for post-secondary education. Everyone in Quebec—employers and unions, people on both the left and the right—is aware that education must be a national priority. The National Assembly is unanimous about the need to increase federal transfers. The only elected members who disagree or are indifferent are the federal members of the Canadian parties from Quebec. There are 200 elected members from Quebec: 125 in the National Assembly and 75 in the House of Commons. The 125 members of the National Assembly plus the 48 Bloc members make 173 elected members calling for an increase in education transfers. Only 27 members are opposed or indifferent.
We need to find $817 million for post-secondary education for Quebec. This is crucial for Quebec. We have many universities, ENAP, the École de technologie supérieure, university hospitals and CEGEPs. We know that the future lies in post-secondary education. We know that the future of our companies and the success of our economy depend on qualified personnel.
These transfers must be injected into the economy every year. For us, investment in education is a long-term investment.
Another key to prosperity is to bank on the environment. Everyone—the National Assembly, employers, unions, environmentalists and ordinary citizens—wants the Kyoto protocol to be implemented. For years, we have been saying that Quebec needs to reduce its dependence on oil. All societies will have to come to this point sooner or later, because oil is a non-renewable resource. One day there will be no more oil. So why not take the lead and give ourselves a huge strategic advantage for the future? Because, unfortunately, we are dealing with a Conservative government that is a servant of the oil industry.
The plan the Minister of the Environment introduced a few weeks ago goes completely against Quebec's economic interests. Not only does it not recognize Quebec's past efforts, but it saddles us with a burden that should be borne by the oil and gas industry. The Harper government's plan means that Quebec is paying for others' pollution. It is the antithesis of the Kyoto protocol. Allow me to explain. The goal of the Kyoto protocol is to reduce greenhouse gas emissions. The goal of the Harper government is to let the oil companies increase emissions, but with greater intensity, which means that if the oil companies increase their emissions—