As far as the opposition is concerned, we must reduce the deficit, but the latest Liberal budget raises some doubts as to the government's intentions. Does it deal with the real problems?
The Liberals ignored the Auditor General's report. During the past three years, the Auditor General has identified waste and unnecessary spending, totalling at least $5 billion annually. I will get back to more obvious cases later on, but I would like to recall the real problems which the party in power was afraid to deal with. Former Quebec Revenue Minister Yves Séguin provided some good examples in an article published in Le Devoir on February 5, 1994.
The way resource profits in the energy sector are interpreted and defined will cost Revenue Canada more than $1.2 billion, although a simple amendment could have prevented this tax loss.
But the worst part is, Madam Speaker, that the minimal deficit reduction planned by the government will put a heavy burden on the provinces. It was criticized recently by Pierre-Yves Crémieux, Pierre Fortin and Marc Van Audenrode, all with the Economics Department at the University of Quebec in Montreal, when they discussed this passing of the federal buck to the provinces. The government reduced its deficit at the expense of the unemployed who, once their benefit periods have been cut, will have no choice but to go on welfare. Just 280 million less for Quebec.
We have to agree with the Reform Party when it condemns the general level of government spending. Our colleagues, however, should also respect the position taken by the Bloc Quebecois. We have already said that we want to reduce government spending and fiscal spending by $10 billion and inject half of this amount into job creation.
Getting rid of waste is not just a buzz word, it is a goal within our reach. Think about it! This government would not have lasted long in Sherwood Forest! When we say waste, we are referring to all the shortcomings mentioned by the Auditor General.
Investment Canada spent $132,000 on a new office with kitchen and bathroom for its new president, although her predecessor's office, located in the same building, had the same amenities. The cost of government travel using the Challenger jet fleet totalled $4 million, with more than half spent on trips by ministers.
According to the Auditor General, these figures represent a total cost per flying hour of $19,650. The federal vehicle fleet is worth more than $500 million, with an additional 4,000 vehicles being purchased each year. We could go on for hours with the list of horror stories, Madam Speaker.
Look at the waste caused by interdepartmental overlap! Staff and equipment assigned to similar activities could be deployed more effectively. The government mentioned setting up one-stop counters in some departments to streamline internal operations, which is all very well, but watch out for undue administrative growth that might reduce an agency's effectiveness.
We all know what happens when bureaucracy gets out of hand. Take this example from the Auditor General's report concerning the Canadian Aboriginal Economic Development Strategy. The CAED Strategy was to invest $1 billion over a period of five years. Three departments were directly involved: the Department of Indian Affairs and Northern Development, the Department of Industry and the Department of Immigration.
The purpose was to reduce disparities between aboriginal peoples and Canadians. The strategy's objective was to help aboriginal peoples achieve economic self-reliance.
In 1993, $900 million was spent under this strategy. The Auditor General deplored the lack of co-ordination between the three departments. According to the Auditor General, it was not clear who was to provide leadership in implementing the strategy. The departments concerned were supposed to co-ordinate the strategy and provide for an evaluation mechanism.
This mechanism was not put in place until 1993. I agree with the reduction of all government expenses providing, I repeat, that the cuts in government and fiscal spending reach $10 billion and that half the savings are injected in job creation. What I am saying is stop wasting public money.
You want examples? Here are a few. Anyone giving money to a charitable organization wants to know whether the money is used to reach the stated goals. This is only natural, Madam Speaker, and this applies to the government as well. However, in this case, we are not talking dollars, we are talking billions spent without any evaluation of the expected return on the investment in given projects.
I was saying that we are all careful with the way we spend or give away our money, we want to be sure that it will be used properly, but grants are allocated by the government without making sure that the stated objectives are reached. We could at least make sure those grants to companies will create jobs.
Coming back to the example I was mentioning earlier, the government spent $900 million, in 1993, for the Canadian Aboriginal Economic Development Strategy. The Auditor General is telling us that there are few ways we can measure the efficiency of the strategy. Would I give a lot of money to a friend without knowing what he was going to do with it? Not me, but the government does.
The Auditor General says that it is not possible to determine the impact of the strategy. For example, in 1992, the Department of Indian Affairs gave $20 million to 73 economic development entities in native communities it considers fully developed. Almost $33 million more were spent on 296 less developed community organizations.
The Auditor General is asking that program control and assessment measures be put in place. It is not a mystery, Madam Speaker. The government prefers to attack the unemployed and the old people, which is less complicated. Yet, all they have to do is to better manage public funds so that we can see concrete results in the whole Canadian economy.
In the aforementioned example, we talked about the Department of Indian Affairs, but the same goes for all other areas. We do not know which real benefits came from the strategy activities. We do not know if funds were spent in accordance with aboriginal people's priorities. We do not know if there is a more effective way of getting the same results. Yet, it is possible to reduce operating expenses.
Let us open the Report of the Auditor General at any page. Here, in November 1992, a consulting firm did an operational examination of the Department of Public Works. According to these experts, the Department could save annually $63 million to $68 million by March 31, 1997. These savings would come mainly from business planning and management and support activities.
The government must stop trying to fool people when it speaks of cutting the fat. I think there are still a lot of areas where we could cut spending, and people have had enough of lies. They know that the government will still take the money out of their pockets instead of reducing the big government machine.
In conclusion, I would like to examine the last point of the Reform party's motion. Our colleagues want the government to develop a spending contingency plan. I suggest they adopt the Bloc's position concerning the creation of a parliamentary committee which would examine government expenditures one item at a time. My colleague, the member for Shefford, will present another point of view later on, but we have said time and again that such a committee is absolutely necessary and we will keep on saying so till the situation is corrected.
It is the responsibility of members elected by voters who trusted them to represent them effectively and keep an eye on such brazen squandering of public funds. The members of this House and of some committees are better suited for such a task than the civil servants since they are accountable to those who elected them. They would see to it that the various programs really reach their targets and that the government manages public funds with equity, effectiveness and thrift.
I know the present government has some reservations concerning our proposal for the creation of such a committee which would examine and review government expenditures item by item. The Liberals have suggested we expand the mandate of the Public Accounts Committee. We would agree, but only if the rules governing the committee are modified.
Our party insists on giving the Public Accounts Committee the following terms ef reference: to analyze and examine the whole of government spending, item by item, in order to present to the House a review of various programs, with the power to gather any information or financial data necessary to carry out its mandate. Officials and political staff members of departments and Crown corporations should be obliged to testify in front of the committee if asked to do so and give it all the information requested. I think that would be the fair way to go about it.
A consensus seems to be possible. The Reform Party wants to develop a government spending management plan, and we would accept such a proposal under the conditions I just mentioned. For once, we should set an example and agree about it.