Mr. Speaker, I am pleased to have the opportunity to speak to private member's Bill C-375.
The bill serves as a timely reminder of how important trade is to Canada, not only international trade but domestic trade. From its very beginnings Canada has been a trading nation. Trade is the lifeblood of the country. The well-being of all Canadians depends on our ability to create and profit from competitive trading environments, both internationally and at home.
For this reason the federal and provincial governments during 1993 and 1994 negotiated the agreement on internal trade. The purpose of the agreement was to create a framework for continuing co-operative efforts among governments to open up the domestic market.
It established a set of rules and a work program aimed at ensuring the free flow of goods, services, people and capital, and at more generally governing trade and trade disputes between provinces and territories.
The agreement on internal trade came into effect on July 1, 1995. It is no secret there are problems with the agreement. From the start the government recognized that the agreement was only a first step. We have accordingly consistently sought to bring other governments to agree to make it a more effective instrument for economic growth.
The Minister of Industry at every meeting of the committee on internal trade pressed his provincial colleagues to ensure the work mandated by the agreement was done within the deadlines set. He has repeatedly challenged the other parties to the agreement to consider seriously ways to improve both its scope and the way it operates.
Recent studies and reports by business organizations such as the Chamber of Commerce and by other observers have underlined many of the agreement's weaknesses. They have pulled few punches in identifying the reluctance of various provincial governments to live up to the spirit or the letter of their commitments. Most of the observers identified the decision making process of the agreement. that is its requirement for consensus as a major impediment to progress.
The bill reflects an attempt to address that issue. The intent is understandable. The bill unfortunately is neither realistic nor practical.
As most hon. members will recall, last year we considered and passed the Agreement on Internal Trade Implementation Act which the bill proposes to amend.
The government introduced legislation in 1995 because we were then and remain today firmly committed to making the agreement work. The agreement enables the federal government to meet its obligations under the agreement on internal trade. That legislation was necessary to give the government the appropriate authority and specific tools to act within its own areas of direct responsibility.
However it is most important to recognize that the Agreement on Internal Trade Implementation Act and the agreement on internal trade are quite different and distinct instruments.
One is legislation by and for one government within its own jurisdictions and powers. The other is a collectively achieved accord on how all the government parties to it will exercise their respective powers within their own jurisdictions.
The agreement on internal trade was the outcome of a difficult process of negotiation among the federal government, the provinces and territories during 1993-94. It was, however, successful, with a consensual outcome which all the governments accepted and which all signed.
The authority of the agreement on internal trade does not derive from federal legislation. Rather, the authority of the agreement on internal trade derives from the commitments, obligations and undertakings which all governments accepted when they signed it. That is a fundamental point which the bill before us fails to recognize.
Simply put, no one party to the agreement on internal trade can on its own amend that agreement. That is what this bill is attempting to do and that is why this bill is flawed.
There are therefore two main reasons why this bill is inappropriate. First, it cannot accomplish what it wishes to do. Second, it directly conflicts with the fundamental basis on which the agreement was negotiated.
The Canadian business sector has a legitimate expectation that the agreement on internal trade should deal effectively with internal trade barriers and impediments. It has a legitimate expectation that the agreement should also deal with the burden and extra costs imposed by conflicting, overlapping and duplicate regulatory requirements. Dealing definitively with internal trade issues is not a simple task.
It is easy to read sections 91(a) and 121 of the Constitution and conclude that what is needed is bold and decisive action by the federal government; easy but simplistic and ultimately ineffective.
It is simplistic because unilateral federal action could not address some areas that are exclusively within provincial jurisdiction like labour market mobility or local government spending on subsidies and other incentives. It is ultimately ineffective because it fails to recognize how this country works best.
Permanent, practical and effective change is best achieved when based on acceptance and co-operation among government, not on the basis of legalism and coercion.
All governments in Canada must work together to ensure that the national economy is strong and efficient, producing new products, services, jobs and growth opportunities. It is important to that end that all governments be pressed to make the agreement on internal trade work better.
The agreement belongs to all its parties. Its implementation is the responsibility of all its parties, not just that of the federal government.
While I cannot support the bill before us for the reasons I have outlined, I hope its message will not be lost on other governments. This government certainly can be counted on to continue to try to co-operate and work with others to strengthen and improve the agreement on internal trade. We look to others to work with us.
This bill is not viable. It is inappropriate. It is unnecessary. It is divisive and it is poorly drafted. I stand as a member not being able to support this private member's bill.