Mr. Speaker, anybody who did not know the difference and who listened to what we just heard from the government member would think we have a wonderful government. It is giving all this money to the provinces and now, because it thought there might be some disruption in the program, it will extend the current program for another year.
Has this not been a very familiar ring in the Chamber over the last few months? The government is going to extend, going to put off, going to refer to the courts. When is the government going to make a decision on something? What more important decision can it make than on the equalization payments to the provinces?
The provinces have known for years that the present equalization payment agreement would end at the end of this fiscal year. They have been working extremely hard and have been placated by little bits and pieces.
The member says that the government is giving more in equalization payments than it ever did before. If people worked for me in 1970 and I paid them $5 an hour and I now give them $5.25 would I ask them why they were complaining since I was paying them more? We must look at the effect in real dollars. The provinces have been shafted entirely.
Let me read into the record what the Constitution says. Section 36(2) states:
Parliament and the Government of Canada are committed to the principle of making equalization payments to ensure that provincial governments have sufficient revenues to provide reasonably comparable levels of public services at reasonably comparable levels of taxation.
It does not say comparable levels of service. It says reasonable, meaning close.
Perhaps we should look at some of the provinces we refer to as have not provinces. Why are they have not provinces? It is because we have not. The federal government takes it away.
One of the reasons we have to fight for equalization is to make sure we can provide these reasonably comparable levels of services. Can it be done? Let me be parochial and talk about Newfoundland and Labrador. Can we provide reasonably comparable levels of services? The answer is a blatant no.
Why is that? One just has to look at the geography of our province and the infrastructure necessary to deliver reasonably comparable levels of service to our people. Let us look at the health care funding, which the government has scuttled. The CHST payments have been reduced to almost non-existence despite the promises of an extra $2 billion that we have heard about for three years.
Most of the premiers come up and take the money begrudgingly and go home. However the bottom line is that they are worse off than they were before they took the money. We are not even close to keeping up with regular payments. In fact, at one time the provinces and the federal government shared the cost 50:50. Now some of the provinces are down to a 14% federal contribution. The burden is on the provinces and then, of course, it is on the municipalities and on the taxpayers and the services cannot be provided. Is this reasonably comparable? That is poppycock. Services are not reasonably comparable.
When we again look at the geography of Newfoundland and Labrador, or anywhere in rural Canada, can we provide reasonably comparable services under the present system? The answer is no.
What are the premiers looking for? The premiers and the ministers of finance are looking to the government to give them what the Constitution requires, nothing more and nothing less. They only want adequate funding to provide reasonably comparable levels of service.
What difference does it make to Newfoundland, under the present arrangement, where we see the average based upon not only five provinces, but which also excludes a number of different factors that affect what we would call equalization?
When look at the 10 provinces and we base it on equality, the difference to Newfoundland and Labrador is about $200 million annually. Where can we find that money? It is about the same amount as we have now seen wasted on the sponsorship program. Right now we are talking over $100 million, and every day we see other bits and pieces come out. With the sponsorship program alone, the money that has been squandered and covered up could have equalized the payments to Newfoundland and Labrador.
That $200 million is only 20%, or one-fifth, of the money spent on the gun registry. If we had taken the gun registry money alone, five provinces, like Newfoundland and Labrador, would have received proper and adequate equalization payments. It is incredible to think that the government blatantly can throw away such money.
The Liberals can go behind closed doors and in five minutes make a decision to bring in the foolish long gun registry that has wasted $1 billion. They can go behind closed doors and pass out $100 million to their friends. It is unbelievable. Yet they cannot, within two years, sit down with the provinces and come up with a reasonable agreement on equalization. This is completely and utterly unheard of.
What can they do to correct this inadequacy?
First, if they moved to the 10 province formula instead of the five province formula, it would be a major factor and it would help all the provinces.
Second, and more important, let us take this designation of have not away from the provinces by letting them develop their own resources. The development of natural resources and the economy generated by that should be taken out of the equalization formula if they are non-renewable resources. Let the provinces benefit from their own resources. If that happened, provinces like Nova Scotia and Newfoundland and Labrador and the developing north would do very well on their own. Not only would we be equal in the economic standards of the country, we would be contributing partners. We would not have other provinces complaining about paying more than their share, and perhaps rightly so. They would not have them dumping into the public purse to equalize provinces like ours. We would be able to pay our own way and help maybe a few provinces who could not.
The Liberals look at us, the new Conservative Party, and ask where our policies are. They will see them when we hit the campaign trail. However, I will tell them one right now. In relation to equalization, we would move to the 10 province formula for which all the provinces have asked. We would remove non-renewable natural resources from the equalization agreement which would give provinces that have these resources a chance to get on their feet and become contributing partners. Then the services across the country would be comparable. We would be contributors and would not be held subservient to a central government that just does not care.