Mr. Speaker, I thank the distinguished member for St. John's East for sharing his time with me.
I was sitting here listening to his comments and I thought he was talking about a cottage hospital tax. I was wondering if that was a hospital for cottages. Then I realized what he was talking about. Again, it shows us the differences in our provinces and right across the country and how things have changed. We did not have a cottage hospital tax in Nova Scotia. It was interesting to learn about that and I intend to ask the member more about that after I finish my comments.
I agree with the member for St. John's East. Infrastructure funding does need stable funding. We need a program where we can count on investments on an ongoing basis.
The government takes great pride in standing up in the House and taking credit for eliminating the deficit. The fact of the matter is the government did it in two ways. It downloaded the deficit to other levels of government, plus it created a deficit in infrastructure. By not renewing the infrastructure, which must be done regularly, it created a deficit there very much as real as a deficit in the bank account. This now has to be caught up and the money spent all at once or in the future, rather than the time that the government was cutting its spending.
I agree with the member for St. John's East, soon to be a minister, when he says that we oppose the motion which would basically cut federal taxes but increase provincial taxes. To me it is very simple. This is a matter of accountability and management control and by doing the infrastructure route now, where the municipalities, the provinces and the federal government all share in the decision making process and also the funding process, there is much more control, accountability, much more value for the taxpayers and much more input for the people in all areas that are affected if all three levels of government have input into the situation.
However, the proposal would say that all of the money goes to the provinces and the provinces would make all the decisions. The municipalities and the federal government would be out of the loop. That would leave the door open for a lot of abuse, political or otherwise, or just bad decisions. It would leave municipalities with no input whatsoever.
Municipalities are facing some of the gravest challenges in infrastructure. I was thinking about what has happened over the years as a result of this debate. During my first term in the House from 1988-93 there was a program called the federal-provincial highways program. It was a great program where the provinces and the feds agreed on funding for highways.
Many highways were upgraded, approved and built in Atlantic Canada, highways which saved lives, made us competitive, allowed us to get our products to market and made us competitive and part of Canada. However that whole program was done away with by the Liberals. It was sorely needed and still is sorely needed.
Very little money has been spent on highways in Atlantic Canada. Again, it is a deficit. It is probably the same in the rest of the country but I know I can speak firsthand about Atlantic Canada.
My second thought has to do with how the system is better served by an infrastructure program that has federal, municipal and provincial governments on side. In my own riding there is a highway that is very dangerous. This highway has had more fatalities than any other highway in Atlantic Canada. It runs through the Wentworth Valley which happens to be in my riding.
The federal Conservative government signed a federal-provincial agreement with the Conservative government in Nova Scotia. The agreement said that 50% of the total costs would be paid by the federal government and 50% would be paid by the provincial government. It would then be 100% paid for.
Then there were two elections. Both the federal and the provincial governments changed and the Liberals came in. Two ministers, one federal and one provincial, took half of the money from that program,which was designated specifically to pay for the upgrading of that dangerous highway, and moved it to their own ridings 200 kilometres away. It had nothing to do with the national highway program under which this money was made available.
This was in black and white and still is. The commitment was there to pay 100% for that highway and these ministers deducted half of the money and took it to their own riding in Cape Breton. These ministers both shared the same riding and wanted a highway along the seashore. They took this money from my highway, which was known as death valley, and put it in their own riding. I believe that is an example of abuse.
However, if the municipality had been a party to this agreement, it never would have happened. The reason we support the infrastructure program is that it has municipal, federal and provincial input and this sort of abuse cannot happen.
However to replace the highway money that was committed by the federal and provincial governments, they established tolls. We are paying tolls today because that agreement was abused. We will be paying tolls for a long time because millions of dollars were taken out of that agreement and moved to another highway which did not qualify under the federal-provincial agreement whatsoever.
The money was supposed to be specifically restricted to highways in the national highway system. This was a tourist road in Cape Breton. It had nothing to do with the national highway system. However, one federal Liberal minister and one provincial Liberal minister were able to take the money and transfer it out of the program for which it was originally designed.
For these reasons: because of the accountability, the co-management, the better value, and because it restricts abuse and ensures input from the municipalities, we support the present infrastructure program which does involve the three levels of government.
We would like to see longer term commitments so the municipalities can plan over 10 or 15 years the projects they will deal with, and the provinces can make plans for their projects which need work done. The priorities change as people evolve, as people move and as communities change, but they need to know that money is there so they can deal with them.
We agree with one of the concepts of the motion but we do not agree with the way it would be implemented. The concept that we need stable funding, is the concept that we agree with.
I agree with the very distinguished member for St. John's East. We do have a requirement for infrastructure investment which is now in a deficit. We do need to make it up now but we would prefer to see it done through the three way program of municipal, provincial and federal funding.