Mr. Speaker, I am going to start by being slightly controversial. We are looking for the federal government to show some compassion and forgive the overpayment that was made to the provinces. I will start with the question, should we forgive the overpayment to the provinces? The answer to that is no, we should not forgive the overpayment because there was no overpayment.
If we look at the transfer payments particularly in terms of health care, the federal government some years back convinced the provinces to sign on to something called the Canada Health Act. The provision of health care is a provincial jurisdiction but the federal government wanted in on it, as it seems to want in on so many things. The government said it wanted the provinces to sign on to its program and in return it would pay 50% of the cost of the program. That is one-half of the cost of providing health care.
The government share is now down to 14%. There was no overpayment. It was a small down payment on the money the federal government owes the provinces for a commitment it made many years ago, a commitment made, I might add, by a Liberal government.
There was no overpayment. We should keep that in mind as we debate today what to do with the transfers that were made and the question of whether or not too much was paid. It is not an overpayment. It is a matter of the government having given some of the provinces more than it intended but it is still under the amount to which the government actually made a commitment. The Canada Health Act is a great concept, provided the government lives up to the commitment it made.
Health care is in trouble in this country. We all know that. All of us collectively face it every day in our ridings. I doubt that there is anybody in the House who finds that constituents are really happy about their health care.
In the province of British Columbia we are facing a particular crisis. Our previous government ran up a tremendous debt. The federal government knows as well as anyone that when a government runs up a debt, it is harder to fund programs. It has to pay off the debt as well as the interest on that debt because it was irresponsible in the first place. We are struggling with this in my province.
We are also struggling with the fact that the federal government is not providing the money it committed to provide. Now we have yet another hurdle to overcome. The government said that the money it gave to the province, even though it is less than it promised, was actually more than it meant to give and therefore it is going to take some of it back. That is unconscionable.
As was said by the premier of Manitoba “This money was spent on health care, education and social services. It is not in a Swiss bank account. We did not funnel it out to our friends in advertising companies, publication companies and other fancy schemes. We did not spend it on fancy new executive jets. We spent it on services to the taxpayers of this country, the very people the federal government looks to, to provide them with their money”.
In my riding this has had a tremendous impact. We are facing hospital closures. I heard on the radio this morning that here in the Ottawa area people are in deep crisis because beds will be closed in some of the hospitals. In my riding the hospital itself is closing. This is fairly widespread and it is all because there is not enough money to run the programs. There is not enough money because the federal government has reneged on what it agreed to pay. Now the government is saying that even the underpayment it gave the province is really more than it intended and it wants some of it back.
The impact on the provinces where this applies will be absolutely overwhelming. This affects in particular rural communities. It is always tougher to provide services in a rural community because there is not the economy of scale.
We have said that it is more difficult to provide services in our country because it has a large geographic area with a sparse population in comparison to other countries, including the United States next door. We have a country that is as big or bigger than the United States, yet we have one-tenth of its population. It is expensive to provide those services. We understand that. But the rural communities have the same problem again relative to the urban communities.
Cutting back on the payments and then asking for additional money back would just increase the impact all the more. The federal government must stop this quest of trying to get money back from the provincial governments. The money was spent on the people of this country. What it would be doing is going to the people, not the governments, of each province and telling them that the services they received were too much, that it did not intend for them to have that much service from the governments of this country and that it wants them to give some of that service back. If the province gives back the money the impact is less services for the people of that province. Therefore it is really the individual taxpayer who the government would be requesting the money from.
What is the solution in the future? We are in a mess. We need to get out of it by having the federal government show some compassion, recognize the problem and recognize the fact that the money has indeed been well spent. There is no greater use for a tax dollar than that, although the government might challenge that.
How do we prevent this from happening in the future? I think the way we can prevent it is to go back to very old Reform Party policy.
The Reform Party approach first premised that we had far too much government in this country. The only justification for government is to do things for the people which they cannot or will not do for themselves. Therefore we reduce government to doing only those things. That means that government gets out of business and does not intrude on jurisdictions that have nothing to do with it. We reduce it to those things.
Having reduced it to that, we then bring it back as close to the people it serves as possible. We do that so that when something like this happens the government can be held accountable by the taxpayers at the closest level possible, where they can reach out and get a hold of these politicians and tell them to smarten up and do what it is that they are expected to do. It is a little harder, especially for us in the west, when decisions are made by people in the Prime Minister's Office thousands of miles away in Ottawa.
If we took this to its ultimate conclusion, I think it would be realistic to say that we could reach a point where it would no longer be necessary or feasible to pay federal income tax. It would be a shock to those people over there, I assure the House, if they no longer had their hands directly in the taxpayer purse. The government of course would need money to do the things that it must do because some things are best done at the federal level. However, instead of taking money from the people in our province individually and then reducing our own province, the province of those taxpayers, to begging for some of our own money back, the federal government would then bill the province a fee for services rendered.
How do we get equalization if we do that? We bill those provinces the fee on a structured basis based on the provincial GDP. Those better able to pay for the services would pay a little more for them. However, because the government would not have its consolidated tax barrel, which it merrily dips into whenever it wants, it would only be able to charge for a specific service provided. It would have to show the costs of operating that particular program and it would have to justify exactly what it does.
The alternative would be to go to that dreaded word that the media and some of our opponents like to play up, that is, a firewall. However we would not build a firewall around the province. We would build it around Ottawa. We would not build it to keep people out. We would build it to keep the federal bureaucrats and politicians in so that they could not keep raiding the provinces. This is not a battle for one province to stop all the other provinces from getting in. It is a matter of a problem created by the federal government in jurisdictional clashes between the federal and provincial governments.
The government has to realize that there is only one taxpayer. When it takes a dollar from that taxpayer, the only justification is to provide the services necessary for that taxpayer. The money that was paid to the provinces, what it calls an overpayment, was spent providing services to the taxpayer. Instead of asking for that money back, the federal government should applaud the provincial governments for making that provision.
I hope the government will come to its senses, show some compassion, recognize that the money has been well spent and stop trying to take yet more money out of the pockets of the taxpayers and basically asking them to return services.