Mr. Speaker, it is my pleasure today to rise and address this bill, but I also wish to address the larger debate that is going on across the country and really the one that has been going on this morning and that is with respect to the social program review that is currently under way.
To have a good understanding of the social program review I think it is very important that we go back and look at the genesis of this idea and the genesis of the debate. Probably the first thing we should do is point out that during the last election campaign the Liberals across the way did not even mention social program reform as an issue. It was as though it did not exist.
There was an interesting article in the Ottawa Citizen from October 14:
During the election, then Prime Minister Kim Campbell stepped on a land mine by declaring a campaign was the "worst possible time" to discuss social policy reform. Jean Chrétien criticized her heavily and tiptoed around the same land mine with the following assurance: "I say that the programs are there and they will remain the same-".
That was a year ago. That is the type of double talk that the Prime Minister used to accuse the Conservatives of using.
The article goes on, quoting the Prime Minister:
"The plan of the party is clear. The social safety net that we have in Canada will remain."
The Liberal's election bible, the red book, made no reference to a major review of social programs or even whether one might be necessary.
I would like to contrast that with how the Reform Party addressed this issue which was to address it head on, recognizing that fiscal problems in this country are directly linked to social policy because social programs eat up almost $80 billion a year and we cannot tackle fiscal problems without making some cuts in social programs.
However, I point out that the approach we took was to start cutting at the top first before we got to social programs. We said that Canadians demand leadership by example. They want to see cuts to the cost of Parliament. They want to see MPs' pensions done away with in the current form. They are concerned with overlap between not only federal and provincial government but also between different departments within the federal government. They want to see subsidies to business and special interest groups trimmed. We would then take a look at social programs in conjunction with the people of Canada.
What we found out in the days and months leading up to the election was that people did believe that there had to be cuts made there in order to achieve a balanced budget which even now the finance minister is beginning to recognize in this country. Hopefully it is not too late.
What we said is that people place a very high priority on maintaining spending for health care in this country and we agreed. We said that health care spending should be maintained. However, we should respect the authority of the provinces and their jurisdiction under the Constitution to have control over health care.
The other thing that people told us was very important to them was maintaining funding for post-secondary education. We proposed various ideas to make that even more effective but maintain the funding.
Some of the other areas where people felt there could be some cuts and changes made were unemployment insurance; a proposal to make unemployment insurance a true insurance program based on the idea that employers and employees who fund the program, who put the money in, should have control over it. In other words, we were proposing to empower individuals to have control over their own lives and create the type of insurance system that would be truly responsive to their needs. They would set the eligibility requirements, the premiums and the benefits. That I will refer to in a little more detail further down the road.
Let us fast forward now to the throne speech of January of 1994, to the budget and to the announcement that there would be a social program review. I think it was January 31 if memory serves. The hon. member from across the way is nodding his head.
On that day it was announced that there would be a social program review and that there would be a final report to the House with recommendations and, I believe, legislation this fall. That has now gone way off track but we will get into that in a moment.
Let us go back to what the budget speech and budget documents were saying about the social program review. On the issue of social security reform, I quote from one of the documents: "The standing committee will seek the views of Canadians on issues and objectives until April. The minister will then table a federal action plan and the standing committee will conduct public hearings on it until September and report in October. As well, federal-provincial territorial activities will take place during this period. The government will table reform legislation in the fall".
It also addressed how it would tackle some of the other social policy areas that are not actually in the social security review right now, things like health care, old age security and Canada pension plan.
For some reason these were not included in a package together and I find that odd because they are inextricably linked and I think we will see if we look at the current green paper that there are contradictions perhaps or at least we are putting the cart before the horse in some cases. For instance, in the green paper there is a reference to unemployed people using RRSPs so that they can get themselves through a period of unemployment.
On the other hand we have not even addressed the issue of Canada's old age security and Canada pension plan yet and what is going to happen with that. Meanwhile the government is floating trial balloons on RRSP taxation and things like that. That is well ahead of any paper that is coming down on the future Canada pension plan and old age security.
Right from the get go the government made a grave error when it did not look at these different areas together.
The idea of the social program reform was to find out what kind of ideas there were out there so we could do two things, make social programs more efficient and save some money.
The government denied that was really the case initially. It wanted to leave us with the impression that this was really an effort to make things more efficient and help people get off unemployment and that kind of thing. Running through this was a growing awareness, certainly from the finance minister if not from the rest of the cabinet, that cuts were going to have to come
in the next federal budget and that we could not go on spending as much money as we have been spending in this country.
Once the social program review was launched there were delays. There were problems right off the bat. There were patronage appointments made to the task force, people being paid big per diems. More delays came along. The thing floundered.
People really wanted to see the social program review succeed. Canadians have been talking about the need for social program review for 10, 12, 15 years and they want this government to succeed. They want it to do well because they know that their interests are at stake. They grew concerned and I would argue that those concerns continue to grow today.
Not only was this program review put on hold continually much to the chagrin of Canadians, but on the eve of the release of the long awaited green paper there was a revelation in the Toronto Star that the social program reform was going to include big cuts, $7.5 billion worth, even though the government had given Canadians the impression that they would be consulted in this before any types of cuts were actually considered.
On the other hand, I am certain there was a printing mistake. When the green paper was released there were no figures at all in it. In other words, Canadians were being asked to choose among all these different programs without knowing how much they would cost and what the costs of the various alternatives were. Obviously that was a mistake, a printing mistake I am certain, because no government would ever put forward a list of proposals without having something so critical in it as the cost of the actual programs.
Every day Canadians make decisions on all kinds of issues. Chief among them I can guarantee is how much they cost, because they know they have to live within their means. Somehow this escapes the government.
Also missing from the various options were many of the options put before the government during the period that led up to the actual presentation of the document in the House. I sat in on some of the HRD meetings and heard some of the presentations that were given. I remember sitting in a committee meeting suggesting that the studies and inquiries from past royal commissions should become part of the official body of information that the government refers to when it is considering the options.
I mentioned specifically the Forget commission report. It talked for instance about unemployment insurance and returning it to the employers and the employees, the people who fund it. That was rejected by the committee because the Liberal majority voted against it for reasons that escape me. There were members who spoke in favour of it. When the whip was cracked they all voted against the proposal. I invite the hon. parliamentary secretary to review the record.
Not all of the various options are in the paper. That is unfortunate because Canadians should have a chance to look at some of the other options that were put before the committee.
Initially this document was put forward as an action plan. That was the wording of the motion. It said-I think on January 31-that the government would be tabling an action plan in the days and weeks to come. Somehow over the course of the last several months the action plan became watered down and diluted to the point where it became a discussion paper.
In other words the minister who has the power to call to heel armies of bureaucrats and all kinds of minions to gather all the wisdom in the country about social policy reform, after all that time, money and the thousands of hours that were spent on it, brought forward a little green pamphlet with scarcely any action at all or any call for action, but merely a few of the options of the many that were discussed. That was a real shame.
We are now in a situation in which other groups around the country have come forward and said: "We have some ideas that the government for some reason did not want to consider".
I point to the Kierans-Robson report from the C.D. Howe Institute in which not only did they come out with options, but they came out with costs. They said: "We will tell you how much money we are going to cut from some of these areas".
These are not what I am suggesting, but they should be in the debate. On the topic of unemployment insurance they suggest that unemployment insurance should be converted into true insurance; there should be a proposal to eliminate regional differences in qualifying periods and benefits and we should eliminate all regional and non-insurance components. The savings from that would be $5.5 billion. They were not ashamed to suggest there would be some savings there.
Under the Canada assistance plan they suggested that we eliminate and divert $2.5 billion to a new child tax credit to low income households. The total savings on that would be $4.9 billion.
They talked about health care, which is something the government has been reluctant to discuss, or at least they are having trouble getting the provinces to come to the table. At this very moment the Prime Minister is delivering a speech to an empty assembly of people called for the health care forum. Not only were the health care ministers from across the country invited and did not show up, but the premiers were invited by the Prime Minister himself. They refused to come for two reasons: first, they know that under the Constitution this is their jurisdiction; second, they resent that although they are the senior partners in this arrangement and they pay the lion's share of the cost for health care-almost double what the federal government pays-the federal government is attempting to set the agenda. It has made a grave error in this. There are other areas including social program reform, GST reform and interprovincial trade barriers where it has made the same errors.