Madam Speaker, it is a pleasure to rise on this issue today. I will be sharing my time with the distinguished member for Brandon--Souris.
We have experienced in the last few weeks and months incredible revelations about lost contracts, lost money, overpayments and even theft, as referred to by the Prime Minister. This is an incredible issue we are dealing with today. In the province of Ontario alone there was an overpayment of $2.8 billion. This is more mismanagement.
The issues that have thrown the House into chaos for the last few weeks are not something new and this is not an isolated issue. This is a good example. It is not a few dollars; it is $2.8 billion that was overpaid to Ontario.
How can an entity, even if it is the federal government, misplace, underestimate or whatever $2.8 billion. It is hard to get our heads around this on how the government could make such a big mistake. It is more mismanagement on behalf of the government who claims it is so competent and such a great manager.
It is more of the same thing that we have heard lately about contracts being issued over and over again for $500,000 and $600,000 but no reports in return and no value for these incredible amounts of money that we could be using for other purposes. Again, it is total evidence of mismanagement and lack of attention on the part of the government to what it is doing.
In the last few days we have discovered that the government is continuing to issue contracts to the same outfits that do not produce reports and charge these incredible amounts of money for things that we do not even have a clue what they are for. It is further evidence of a continual approach of incompetence in government affairs and the management of taxpayers' money.
The government has lost its focus and is unable to focus on the issues that involve our money, our investments and expenditures, and sharing with the provinces. The government is so embroiled with its own internal problems. Those problems are taking priority over everything.
The issue of $3 billion or $4 billion does not matter any more. The government will worry about that later. Those amounts of money do not matter to the government. It does not focus on them. It does not pay any attention to the softwood lumber issue which has devastated jobs across the country and has brought turmoil and confusion to the whole industry. There is confusion regarding the relationship between the United States and Canada. The government has not addressed it because it is busy dealing with its own internal struggles about who will be the boss and call the shots.
If the government demands that this money be returned it should also be required to pay the provinces back, as the previous speaker mentioned, for the overcharge in employment insurance funds. To me this is the fraudulent taking of money. On everybody's paycheques there is a box that says employment insurance premium. It is not an employment insurance premium any more. It is a tax. It is not for employment insurance. It will not serve unemployed people. It will not help retrain people or do anything except be a tax that will go to general revenues. It is taxation under false pretenses. It is fraud. Under any other circumstances, in the private sector or anywhere else, the government could be charged with fraud and obtaining money under false pretenses.
Therefore, if the government were to demand that the provinces pay back the mistake that it made, it should also be required to pay back the employment insurance premiums which it has deliberately taken from people under false pretenses. What is sauce for the goose may be sauce for the gander.
The government is demanding money back that has already been spent on health care, social transfers and education. The provinces have already spent money in these areas where the government has cut back dramatically on its transfers to the provinces, not to mention the EI issue. The government has cut back on its transfers to the provinces by $6 billion a year. In 1995 alone there was $6 billion in cutbacks. If the provinces have to pay this money back the federal government should have to pay that $6 billion back to the provinces and so on and so forth for every other year where it cut back and broke agreements on health care and social services contracts with the provinces.
However, the money has already been spent on health, education and social programs. These clawbacks will do nothing except hurt the provinces who are already struggling, like Nova Scotia, with a deficit and a debt that is hard to overcome.
That brings me to another point, that of equalization payments. This was clarified by the Senate all party report released in March 2002 entitled “The Effectiveness of and Possible Improvements to the Present Equalization Policy”. Recommendation No. 7 states:
The government change the Generic Solution so as to increase the share of a province’s entitlements that are protected when its non-renewable natural resource revenues increase.
The provinces in Atlantic Canada have been fighting for months for exactly that. The premiers of Newfoundland, Prince Edward Island, New Brunswick and Nova Scotia all support this. The recommendation further states:
It may be that although the Accords have operated in a technically correct way they may not have realized their intent.
They have not, and again this is what the premiers have argued so much and strongly for in the last few months. Recommendation No. 8 states:
The government should undertake an evaluation of the Equalization provisions of the Atlantic Accords to determine if they have met the intent for which they were designed.
The presumption is that they have not. It goes on to state:
It was suggested that equalization payments are inadequate because they do not take into account the different developmental characteristics of each province.
This again involves transfers between the provinces and the federal government. It is a different issue but it involves the same concept and same principle where the government has not kept up to date on its transfer arrangements and formulas. It is cheating the provinces, and will in the future, out of their share of equalization payments in the same way it is now saying it made a mistake and overpaid some provinces $3.3 billion. Somehow it overlooked $3.3 billion. This is so indicative of the mismanagement of the government.
We think this is a good motion. We support it unless the government is prepared to pay back the transfer payments it took from the provinces and pay back the employment insurance premiums it stole from every employee and worker in the country.