Mr. Speaker, it is indeed a great opportunity to stand today to make a few comments on the motion put forward by my colleague from across the House.
I will talk about the day I was in Newfoundland and Labrador. In fact, I was a member of the Williams government the day the Atlantic accord was signed and brought home. It was a great and very proud day in my province. I will speak about that in a few moments.
It was a hard fought campaign by everyone, including the present Minister of Fisheries and Oceans and other members from Newfoundland and Labrador on all sides of the House. They fought long and hard to have the Atlantic accord brought home. It was a great day and a credit to everybody involved, including people on that side of the House.
There are a few facts about the Atlantic accord, and I have a concern with the motion as it is worded. To remind everybody who may have forgot the wording of the motion, part of the of the motion states:
That this House regret that the party now forming the government has abandoned the principles respecting the Atlantic Accords...
The Conservatives have not abandoned the principles respecting the Atlantic accord, and I will explain why. During the campaign, and in discussions in the past couple of months, the decision was made that we would try to come together across the country to fix the fiscal imbalance. For two decades, parties on all sides had been talking about it, but the party on this side of the House said that it would try to do something about it.
We opted to take into consideration the recommendations by an independent panel, referred to by most as the O'Brien report. If we remember, that report called for a cap to be put on the payments of revenues going to each province. In budget 2007 there is no cap on the revenues coming from the Atlantic accord. I do not know how many times we have to say it on this side of the House. A cap does not exist on the Atlantic accord.
For the next number of years, there will be no clawback in any way on the Atlantic accord in Newfoundland and Labrador. One hundred per cent of the revenues that are generated from its oil and gas offshore will go into the coffers of Newfoundland and Labrador.
If in 2010-11 or 2011-12 Newfoundland and Labrador is still on equalization, the Atlantic accord then extends out to 2020. This is the concern that we raised as members on this side of the House. I was very surprised, knowing full well that this debate was ongoing in my province and in Canada with regard to the fiscal imbalance, that not a question was raised by the members from Newfoundland and Labrador in the House, regarding what the plan was or if a solution would be put forward to the concerns raised in our province.
On this side of the House, myself and my two colleagues continuously raised the concern about the issue with the Atlantic accord. We made sure that a cap was not put in place and that the benefits of the Atlantic accord would continue to the people of Newfoundland and Labrador.
Let me talk for a minute about the concerns of fiscal imbalance. The Liberals and the Leader of the Opposition do not even recognize that there was and still is a fiscal imbalance in the country. I will read a couple of statements made by the Leader of the Opposition.
First, on January 22, the Leader of the Opposition said:
I don't think there is a fiscal imbalance...Every province...is arguing it gets shortchanged by Ottawa in one way or another, and it would be difficult to make “all the premiers smile”.
There is no doubt about that.
On January 17, in the Canadian Press he said:
Don't ask me to pretend there is a fiscal imbalance and elect me and (hope) I will fix it. I don't want to create these kinds of expectations.
He also said, “We should say that a province that does not receive equalization payments should not see, with its money, another province become richer than it. You need to have a ceiling, a kind of safety net that will protect Ontario”.
These are not my words. They are the words of the Leader of the Opposition.
The government decided against the recommendation in the O'Brien report to put a cap on the Atlantic accords and we gave Newfoundland and Labrador another option that the rest of the country would not have under this new equalization program. That option is to stay with the Atlantic accord, receive no clawback and that could extend until 2020. That is the concern we have on this side of the House.
I just want to go back and talk about the Atlantic accord once again. When the accord offset agreement was negotiated, the province and the federal government agreed to an expiry date, which will come, as I mentioned earlier, as soon as 2011-12 or as late as 2020, depending on whether Newfoundland and Labrador is still entitled to receive equalization in 2011-12. That is my concern and the bone of contention I guess that has been raised, and it concerns the level of equalization payment we receive.
I was in a hotel ballroom in 1985 when the original Atlantic accord was signed. It was a proud day in the history of Newfoundland and Labrador. As I said earlier, I was also involved and part of the government of Newfoundland and Labrador when the Atlantic accord was signed, another proud day in the history of Newfoundland and Labrador.
However, I say with all sincerity that I will be prouder than I have ever been before if I could stand in this House here or stand anywhere in Newfoundland and Labrador and say that we are off equalization, that our province does not need equalization anymore, and that Ottawa can keep the cheque.
That is the goal that we should all be working toward, not creating the divisions that we are creating here, but working toward the fact that Newfoundland and Labrador and Nova Scotia, and any other province that receives equalization can stand up someday, sooner than later, and say they do not need the cheque from Ottawa.
We have the opportunity to do that in Newfoundland and Labrador. We have the opportunity to do that through developments like: the Lower Churchill, Hebron, Hibernia extensions, a second oil refinery, the fishery, major mineral potential throughout Newfoundland and Labrador, and untapped tourism.
In order for these to work, in order for these industries to grow, so that we can take in the revenue from them and not be dependent on equalization, we need cooperation between the federal government and the provincial government. We need cost share programs that get these projects off the ground, that put the money into Newfoundland and Labrador, so we can reap the benefit from it, so that the sons and the daughters of Newfoundlanders and Labradorians are not on planes going to Fort McMurray and other parts of this country. We need them to stay in Newfoundland, continue to work in Newfoundland, and continue to generate the revenue that we need in Newfoundland and Labrador. That is what we should all be working toward.
We have many opportunities here. I would like to be able to stand in this House and be proud of the fact that we can tell Ottawa that we do not need its cheques anymore. The reason why Newfoundland and Labrador and many of the other provinces are still living in the world of a fiscal imbalance is because for a decade or more, the transfers to Newfoundland and Labrador were gutted by the former government. Health care, education, social assistance, all of these were gutted. Therefore, it created a fiscal imbalance in our province from which we are still trying to crawl out.
We have the opportunity here through the Atlantic accord to continue taking 100% of our oil and gas revenues and putting them into the coffers of Newfoundland and Labrador. By doing that until 2011-12, or until 2020, we will have a day in Newfoundland and Labrador when we can say to Ottawa, “Keep the cheque, we do not need it, we are off the equalization, standing on our own two feet. We are proud Newfoundlanders and Labradorians and we do not need the help anymore”.
That is the goal that all members on both sides of this House and in both levels of government, whether it is here in Ottawa or it is Newfoundland and Labrador, should be working toward because then the whole question is answered because then we are standing on our own two feet.
I hope that by working together with all members here that we can continue to do that and then equalization cheques can stay in Ottawa. We can stand on our own two feet in Newfoundland and Labrador and be the proud Newfoundlanders and Labradorians that we continue to be.