Mr. Speaker, I listened with interest to my colleague opposite explain the bill and talk about the need to pass it so that the provinces can continue to receive the equalization payments beyond April 1. He also referred to the special payment for health care.
Let me put a couple of things in perspective. First, the $2 billion commitment announced just recently for health care, which will be put in following the passage of the legislation, is a help to the provinces. Is it what they need? It certainly is not what they need and is not what they asked for.
The money is a commitment that was made a number of years ago. We have heard over the last three years at least that the government would put more money into health care. A couple of years ago it was determined that it would be $2 billion. Last year we were promised the money but that it would depend on next year's budget and the surplus. We waited and waited. Now, in the days preceding the election of course, the $2 billion will be delivered.
The ironic thing is that the person who gets the credit for the money is not the person who committed it. It is not the finance minister who has pledged it in his next budget. It is the former finance minister and the present Prime Minister who will get the credit for giving the provinces $2 billion.
This same Prime Minister, when he was the finance minister, was the one who, in regulating his budgets, actually cut over $16 billion, which in today's dollars would be $25 billion.
If I were given the opportunity to give out $2 billion to people, people might be quite shocked. However, if at the same time they were going to return $25 billion to me, it would not be a bad deal. This is exactly what we see with the federal government. During the term of the former finance minister the government cut $25 billion in today's dollars from the health care budget to the provinces and now it offers, on the eve of an election, a paltry $2 billion. Nobody is buying it.
Let me talk about equalization. The parliamentary secretary is a fine fellow but he understands very little about equalization. He comes from the great province of Ontario which is one of the have, question mark, provinces, the other being Alberta. All the other provinces are considered have not.
If people in the other eight provinces are watching at this time of the morning they are probably wondering what the definition is of a have and have not province. My definition of have not provinces is that those are the provinces that have been shafted by Ottawa over the last x number of years, certainly in relation to the development of resources and the clawback which has left a number of our provinces in a position where they are classified as have not. Others might be farming provinces, that again have been totally and utterly ignored by the government to the point where their economy is regressing rather than moving forward.
Have and have not should not be terms that we use in this country. We should all be have provinces. We should not have to be lining up with our hands out to uncle Ottawa looking to get back some of our money.
I want to give a couple of figures. Over the last four years $14 billion has come out of the offshore development of Newfoundland. People might wonder why Newfoundland is not a have province. It is simply because of the mismanagement of the central government. The share that Newfoundland gets has amounted to about $300 million over four years; less than $100 million a year from a $14 billion industry. Anyone with any kind of a brain will know that there is something drastically wrong here.
Some people say that we cannot have our cake and eat it too. It is like the way we treat people who are receiving social assistance. Government sends them a cheque because, through no fault of their own, they cannot get into the workplace for whatever reason: sickness, lack of opportunities, lack of education, whatever. Then we encourage them to become productive members of society. We provide them with a job opportunity so they take the job even though it is only a part time job paying about $100. What happens at the end of the week? The government takes back an equal amount from what they are paid, and at the of the period they are no better off than they were before. They then ask themselves why they even bothered.
Government has to realize that in order to move the economy ahead we have to invest. We cannot cycle our money through the central government. That is not investing. That is investing in scandals. That is investing in giveaways. That is investing in putting money into the pockets of one's friends. We have to invest in the infrastructure of the provinces so that they can keep building the economy and develop the resources that they hold.
The member opposite mentioned that the formula is a fair one, that they take the five middle provinces. The only entity that says it is fair is the central government. Everyone else, all the premiers and all the provinces, say that it is not fair and that it should be based on a 10 province formula. When we argue that, the now Minister of Finance, the former minister of natural resources, who was one who retarded the development of our natural resources, says that the gap is narrowing. The only reason the gap is narrowing is that the economy of the two have provinces, Alberta and Ontario, dictates the amount of equalization the other provinces get. If one or the other of these provinces has a downturn, it affects the amount of equalization everyone gets and it narrows the gap.
Thanks to the Liberal government, the present government in Ontario, Ontario is seeing a dip in the economy which greatly affects the equalization formula. Alberta is doing well because of the development of its natural resources. When it first began to develop its oil industry in particular, it was allowed to hold on to its revenues for about a 10 year period. That gave Alberta the opportunity to invest in its infrastructure, to grow and to develop into a have province.
The same thing could happen in Nova Scotia, in Newfoundland and in Quebec. These provinces have rich natural resources but they must be allowed to develop them in co-operation with the federal government and on a sliding scale, undoubtedly. We do not want to be taking out and giving nothing but we must be fair. We have to give people the chance to get on their feet, and it can be done. A 10 year formula would certainly make a major difference to our provinces.
Let us look at fairness in the CHST funding. Instead of cutting $25 billion, let us make sure we pay the equal amount. When we constantly download on the provinces then the provinces, in many cases, have to pass it along to the municipalities.
Throughout the country, infrastructure is completely and utterly falling apart simply because of exactly what we are talking about this morning, the inappropriateness of the funding that is delivered to the provinces by the federal government, the people's own money.
Some people might say we have a surplus. Years ago when we had a Conservative government, we did not. Let us analyze it. During the early 1990s before the Liberals came into power, they talked about the deficit that they were handed. Forget the debt; they were talking about the deficit. The deficit was built up for two reasons, the need to continue social programs when times were tough and extremely high interest rates. If we had the same interest rates today, imagine the amount of debt payments we would have to make. How much of a surplus would we have?
The debt was passed on from a previous Liberal government which admittedly was added to somewhat, but a plan was put in place to address it. This is where the Liberal government is wrong. Where is the plan? It is 20 days today since the House resumed sitting and we have yet to see one piece of new legislation, as anybody who listens to the assessment of what is happening in this country would know.
We talk about elections. When is the election going to be? People say it has to be in the spring. Why? Because the government has no legislation. The Liberals have no plans. They have nothing to offer the people of the country, except to go on their knees to Canadians asking to please be voted back for another few years so they can continue to do nothing and crucify everyone at the provincial level. Where is the plan?
Remember free trade? Remember the GST? We did not like it and members over there fought against it. The Liberals won an election because of these two issues, but did they cancel free trade? Did they eliminate the GST as the Prime Minister when he was minister of finance promised to do? No, because these were necessities at the time in order to address the deficit while maintaining social programs.
The present government, because it is the same old government, came in, continued the GST and built an economy based on free trade which greatly enhanced the economy of this country, but the Liberals also made their own contribution to the surplus which we now have. They cut social programs. They cut $25 billion in equalization payments in CHST transfers to the provinces, $25 billion.
The Liberals overcharged on employment insurance, money taken directly out of the pockets of every working person in this country, to the tune of $40 billion. Imagine what $40 billion could do if the workers themselves had that kind of money to put into the economy. People who work make money and spend money. They spend money on goods and services, which creates more wealth, generates more taxes and builds the economy. What we see here is regression. They cut, take away and download on the provinces and municipalities. Everybody suffers all the way down.
With regard to natural resources, they ignored our fishery. There is a former fisheries minister here looking at me in admiration. He was one of the great fellows who had the will to do something, but those above him said, “Sorry, you cannot do it. We do not want to disrupt our friendship with other countries. If they want to be our friends, we will give them our fish”. If that is the way we are going to treat our resources, how are we going to grow the economy? How are we going to grow the country? The answer is, it ain't going to happen. That is what we see right now.
What is the best thing to do? Perhaps the government could start by coming up with a proper equalization program.
How popular is the bill? How popular is this offer to the provinces? Every single solitary province rejected it. They asked why after five years they had to extend the agreement for another year in order to finalize it. Surely, we knew five years go that it was going to run out. We knew four years ago that we had better start working on it. Three years ago, we should have been into it. At least a year ago, we should have been into the final stages working on new formulas, assessing the present economy, et cetera.
What happened? The Prime Minister was running around the country trying to become Prime Minister. The former prime minister was running around the world taking advantage of his last year in office. The ministers in the government, the ones responsible, were running around to see if they could get some money for their friends.
The business of the country was not getting done. That is why today we see the provinces still waiting for an equalization program. What are we doing? We are supporting the bill. Why are we supporting it? Simply because if the bill is defeated, the provinces' funding will be cut off completely. They will get nothing.
I always think of poor Oliver Twist. Please sir, could we have some more? It is becoming that way for the provinces. They come to Ottawa with their little bowls in their hands begging, please sir, could we have more?
Perhaps it is not the provinces that should worry. Perhaps it is not the municipalities. Perhaps it is not the people across the country, the workers, who have been ripped off. Perhaps they should not be sitting back asking, “What can we do? It is Ottawa's fault”. No, it is our fault collectively because we were the ones who put them there.
There is one thing that we can always remember. We put them there, but in light of everything that is happening, we have time to assess what we have done. As the old saying goes, the Lord giveth and the Lord taketh away. The people give power to the government and very soon the people will take it away.