Mr. Chairman, I truly appreciate the opportunity this debate offers to join with our colleagues in reinforcing the government's commitment to quality health care. It has become a fundamental part of our national values and heritage.
I wish to focus my remarks on two issues this evening, the federal government's monetary contribution to health care and the need for new services which are important to my constituents, including home care and end of life care. I would have preferred to focus my speech primarily on those two issues, but the level of misinformation and hyperbole around federal spending on health care clouds the debate so completely that I am compelled to set the record straight.
There is no question that people are deeply concerned about the challenges, especially regarding financing, that confront our system. However, our government has a priority that is clear and concrete and that is to work through partnership with all levels of government and all stakeholders to provide Canadians in every region with the public health care system they need and rely on. It is not rhetoric. We have backed this priority with real action and with bottom line results. Almost 70% of all the new federal spending initiatives that we have undertaken since balancing the books have been in just three areas: health care, education and innovation.
Indeed, since the 1999 budget the federal government has announced increases in funding to the provinces under the CHST alone totalling $35 billion. These funds are available to the provinces to use as they see fit on health care, post-secondary education, social programs and early childhood development. Moreover, when we look at major federal cash transfers to the provinces, both the CHST and equalization money is expected to increase more than three times faster than the growth in federal revenues over the next five years.
Let us look at the facts for a second. The first ministers agreement of September 2000 on health care renewal and early childhood development provided $23.4 billion in increased funding to provinces and territories over five years: $21.1 billion for the Canada health and social transfer; and $2.3 billion for new targeted investments in medical equipment, primary care reform and new health information technologies. These investments in particular will lead to innovations in health care, increased support for doctors and nurses, the availability of new MRI machines and other medical equipment. By 2005-06, CHST cash will reach $21 billion, a $5.5 billion or 35% increase over last year's levels.
The cash transfers are only part of the story. It is only fair to include in the CHST calculation the value of the tax points that we ceded to the provinces at their request in 1977. This year the value of these tax points will reach an estimated $16.6 billion. If we take the two numbers together it means that the total value of the CHST to provinces this year, cash and tax points, amounts to $35 billion. Again, that is only part of the federal health care story. The federal government provides eight of the 10 provinces with equalization payments which they are free to allocate as they choose. Currently those payments exceed $10 billion.
Added together, federal transfers currently cover one-third of all provincial health care costs. We have to recognize that federal support for health care extends beyond transfers. This debate is not just about money. My constituents are concerned about what basket of services we are funding.
As part of her work with the provinces, I encourage the minister to work on improving what those services are that are available across the country. Home care and end of life care are of critical importance to my constituents.
On the home care front, anecdotal evidence shows that a lack of home care is definitely forcing people into hospitals, is straining families and is causing harm. I had a constituent who recently came to me. He had his two hours of home care per week cut. He needed help recently, but rather than having access to a home care nurse he was told to call an ambulance to deal with his nose bleed. He spent several days in hospital and cost everyone a lot of money. Frankly, I agree with his concern that a few hours per week would have prevented a whole series of other costs within our system and would have had a better impact on his quality of life.
On the hospice front, in Burlington we are extremely fortunate to have a wonderful new facility, the Carpenter Hospice, which recently opened its doors. It will provide terminally ill people with better end of life care than would ever be possible in a hospital. Our community identified a need, raised the funds, found the volunteers, found the donated land and built a truly beautiful facility, where I am confident excellent care will dramatically improve the lives of patients and their families.
Unfortunately, provincial health care dollars are not provided in these facilities and our national system did not plan for this kind of expenditure.
In our area, a recent Maclean's annual health report identified that the Mississauga-Brampton-Burlington area ranked in the top four communities in Canada offering the best health care services. It is not news to me or to the people of Burlington. Our Joseph Brant Memorial Hospital offers exemplary service and medical care, yet it faces the same challenges and struggles all hospitals face, exacerbated by a critical shortage of primary care physicians. Far too many families in my constituency do not have a family doctor. We have a physician recruitment team in my community. Northern and rural communities face this issue to an even larger extent.
Canadians want to know that the federal government is looking forward, that we are providing funding and support for all types of medical research. We need to advance research into AIDS, cancer, diabetes, ALS, Parkinson's and multiple sclerosis, to name just a few. The new CIHR system is funding, in unprecedented ways, research into these illnesses and others, and our new reproductive health legislation will ensure we are able to participate in important stem cell and genetic research to help unlock the mysteries of these diseases.
Finally, as chair of the Special Committee on Non-Medical Use of Drugs, I must say that we must do more to ensure that we are providing Canadians with education and health promotion so that they can make informed choices about risks related to occupations and recreations, about drugs and about participating in healthy activities. As well, I believe we need to ensure that there is available across this country much more treatment for those who are addicted to drugs and alcohol.
Canadians support the fundamental values of the Canada Health Act, the values of universality, portability and accessibility. The Romanow commission and its public consultations are very important to ensure that we find realistic solutions to the health care challenges that face us, that we have the flexibility in how and where health services are available, and that Canadians have decisions made that are realistic, rational and reflective of the reality of their lives. They want governments to show openness to new ideas and alternative delivery.
This debate and the work of our Minister of Health and her parliamentary secretary will ensure that we get the services and the products that all Canadians have come to know and love.