Mr. Speaker, it is with mixed emotions that we listen to the Liberals praising the budget. I say mixed emotions because they seem to be heaping praise upon their government and the Minister of Finance when we know that deep down they are just as concerned about what is happening in the country as the rest of us.
The member who just spoke talked about the terrible position the Liberals were in when they took power in 1993 with the huge deficit. What he failed to say was that when the Conservatives took power 10 years earlier from the Trudeau era, they were also saddled with a huge deficit. In fact, if we factored in inflation, almost the total amount was inherited from the Trudeau era. The interesting thing is that the minister of finance in the latter years of the Trudeau government was none other than the now Prime Minister.
The Mulroney government increased the deficit, which everybody will admit, but perhaps we might ask why. During those years they had a choice. Interest rates, as hon. members know, went to 23% or 24%. We can just imagine the amount of money that went to service the debt.
The government at the time was faced with two different options, perhaps the same options that always face government when it has to address the debt. There were two ways of doing it, and I will talk about what the present government is doing shortly.
The government at the time had the choice of cutting social programs, which is usually what governments do. However the Conservative government did not cut the social programs despite the fact that during those years times were extremely tough financially. It did not even attempt to balance its budget on the backs of the needy in the country. It used the other option, which was to put a plan in place to address the deficit. It came up with two major measures that increased the finances to a government and eventually balanced the budget.
One of measures that the Conservative government came up with was free trade, something which practically every party in the House, especially the governing party, but with the exception maybe of the NDP, lauds today.
The other measure it came up, which nobody was happy with then or now, was a tax called the GST. However desperate times called for desperate measures and that was exactly what the government did. It came up with a financing mechanism to address the funding needs it had during those extremely tough financial times.
However election time was coming near. What did the Liberals do? They campaigned against free trade and the GST. It was basically on the GST that the Mulroney government was defeated. What did the Liberals do then? First, they said that maybe the free trade agreement was not all that bad, and of course history will dictate the rest. Not only did we go with the free trade agreement with the United States, but we have increased it ever since, as we should. It has certainly boosted the economy of this country. We praise government for doing that. However we say shame on the Liberals for pretending to the electorate that they would not do it and then, once they were elected, they brought in free trade.
What happened to the GST, which was the real issue during the Liberal campaign? Did they get rid of it as the interim prime minister said? No, they did not. They inherited the GST. They have used it to collect all kinds of money over the years to help balance their budget.
The Liberals themselves were not without a program. They could not allow people to say that the budget was balanced thanks to two great Tory policies. The Tories set in place a plan to address the deficit without hurting the social fabric of the country.
What was the third plan that was involved? We had free trade and the GST, but the Liberals came in and said that they could speed up the balancing of the budget by cutting social programs. Even though times were getting better, the economy was improving because of free trade and the finances of the government were increasing because of the GST, they figured they needed to speed things up a little bit so they cut social programs.
The provinces, which were receiving 50% of the health and social transfer costs paid by the government, now the input into many of the provinces is around 14%. This is a complete and utter disaster.
The government did not stop there. Not only did it cut funding to the provinces in relation to the Canada health and social transfer payments but it started downloading. It downloaded on the provinces other costs, infrastructure costs and education costs. It also started privatizing or turning over to the provinces other assets, such as our airports.
When we talk about infrastructure, we are talking about the feds downloading on the provinces and the provinces then downloading on the municipalities. The municipalities are faced with the horrendous debt of trying to improve infrastructure, whereas they cannot take in enough taxes because the feds did not say they would give them a share of the taxes. The government gave them a share of the problems and a share of the costs but did not give them a share of the money.
I see my colleagues here from Quebec. I do not see the Prime Minister telling them that the government has downloaded 30% of its responsibilities to their province, so here is 30% more money. No, it has not been done. It has downloaded but it has not matched the burden to the provinces with similar funding.
In relation to our airports, we see that many of our airports have been taken over by the private sector or by boards operating at arm's length. There are different scenarios. Many of them are in trouble because our transportation system is in trouble for a number of reasons: lack of control by government, lack of putting proper infrastructure in place and lack of originality or vision by the government. It is always a reactionary government.
As the industry itself is in trouble, the airports, which are not taking in the same amount of money as they thought they would, find themselves in real trouble. Who pays the price? We have had several strikes across the country, including a couple in Newfoundland, because local budgets are being balanced on the backs of the workers, and that is unfortunate.
We can go on to the billion dollars that the government has asked departments to find. The government is passing out money on one hand and going back with the other and saying that it needs a billion dollars back. The government is taking money from departments that cannot afford to give it, including the Department of Fisheries and Oceans. We could go on for hours and hours about the cuts there and the lack of investment.
It is great to be able to talk about how well we are doing. Maybe we should analyze why we are doing as well as we are and who is paying the price so that the government can crow about the fiscal position it is in right now.