Thank you, Mr. Speaker.
The amendment moved by my colleague reads as follows:
That Bill C-28 be amended by deleting Clause 64.
With this amendment, we want to eliminate the retroactive aspect of this provision, which deals with the GST rebate for transportation services provided by Quebec and Ontario school boards and which would have the effect of retroactively striking down decisions handed down by the courts in favour of the school boards, not to mention that the federal government is also reneging on commitments made previously.
With this kind of attitude, the federal government is not complying with these decisions and not honouring its commitments. It is going way too far in acting this way, and it is not the only time it has done so. What about the historic surplus in the employment insurance fund, and the fiscal imbalance, where Quebec and the provinces are feeling the consequences of questionable management decisions. The House must show transparency.
For the 2003-04 fiscal year alone, the budget announces a record increase of 11.5% in spending, which will go up by $25.3 billion in 2002-03 and 2004-05. If there is one thing that stands out in the 2003 budget, it is the fact that the federal government has a lot of money at its disposal, compared to it needs. It is raking in the money, and piling up surpluses. It is collecting way too much tax.
Despite an 11% increase in spending—which is enormous—the Bloc Quebecois estimates that Ottawa will have a massive surplus of $14.7 billion over the next two years. This illustrates the size of the fiscal imbalance. Most of the provinces, on the other hand, will have deficits.
Is there anyone who still believes that the federal debt is higher than that of the provinces? From the way the Minister of Finance has decided to loosen the purse strings, he is sending a clear message: there is money; there will be more.
But how can anyone dare to spend public money this way? How can the fiscal imbalance still be denied? We asked the federal government to transfer additional fiscal capacity to the Government of Quebec and the provincial governments, so that they could intervene where needs are greatest. We asked for a tax point transfer, or additional fiscal capacity, of $4.5 billion in 2002-03 and $5 billion in 2003-04. The various measures in the 2003 budget will have no effect on reducing the financial pressure that is smothering the provinces. On the contrary, in the health sector, expenses are increasing faster than provincial sources of revenue, and part of that revenue comes in the form of transfer payments from the federal government to the provinces.
Quebec would have to have a surplus of $1.6 billion in order to provide services. Now, after the argument has been repeatedly made, despite the huge accumulated surplus, Ottawa gives Quebec a meagre $800 million. This proves that health is not a priority of the federal government. The figures speak for themselves. The federal government has announced an investment of $6 billion over three years, while it is hoarding a $30 billion surplus.
The first ministers asked that federal transfer payments for health be increased by 1% per year, until a 25% partnership level was attained, by the end of this decade. So, what happened to this realistic suggestion? Health is in the provincial jurisdiction. One day, the Liberals must understand and transfer the necessary funds the provinces are demanding.
The employment insurance situation is the best example of frustration one can find. Unions and employers are utterly frustrated with this diversion of the money in the EI fund. They support the Bloc Quebecois demand that this fund become a separate fund, so that the federal government will stop raiding it and contributors will set the contribution rates themselves.
The Bloc Quebecois was hoping the Government of Canada would create a separate fund before a new Prime Minister took up office. But, lo and behold, there will be a new round of consultations while billions continue to accumulate in the fund. Back in 1989, 93% of workers were entitled to EI benefits. We are down to 40%. It is unbelievable. Instead of lowering the premiums, the government should improve the plan so that 90% of workers qualify for benefits.
The unions and citizens' groups are in as good a position as you are to assess the needs. Why not listen to them? Your tendency to control everything is shocking.
What about the infrastructure program? The Bloc Quebecois has asked for the release of the money needed for the infrastructures that are necessary in Quebec. We asked for a substantial and long-term commitment. The increase in infrastructure spending is inadequate. On top of that, the government is in no hurry to transfer the money.
The Bloc Quebecois is asking for a massive reinvestment. There are still some communities in this country without roads and some of them are in my riding. In the easternmost region of my riding, from Kegaska to Blanc-Sablon, there is a 400-km stretch without roads. We know that region because it was hard hit by the fishery crisis. Of the additional three billion dollars announced in this budget, only 100 million dollars were allocated for the 2003-04 financial year.
That amount is totally inadequate given the huge needs; the health sector in Quebec should receive at least a fair share of the investment for 2003-04, and that means at least 300 million dollars more. After the next two financial years, of the three billion dollar total, only 250 million dollars will have been invested. Does the government not agree with Quebec and the other provinces that those infrastructures are badly needed?
We also ask that Quebec be in charge of all projects and resource allocation.
Since the period set aside for Government Orders is over, I will finish my speech tomorrow.
A motion to adjourn the House under Standing Order 38 deemed to have been moved.