Mr. Speaker, it is a pleasure to speak again on this bill. I spoke at second reading. I raised some concerns at that time, concerns that have been expressed to me not only in post budget days but during the lead-up and the entire campaign period last fall, even during the time I was nominated before I entered into the campaign mode.
This whole issue of deficit financing, the national debt, having to borrow and the fact that we are placing not only this nation and ourselves into a tremendous debt hole but are asking our children to try to dig us back out is an issue for which many of us in the Reform Party have become standard bearers.
One of the major concerns that brought the Reform Party into being was the fact that the fiscal mismanagement of successive federal governments has placed us in an untenable position for which we will be paying for generations.
When I first sought the nomination for Fraser Valley East the size of the deficit was forecast as perhaps going as high as $30 billion. This was a couple of years ago. At the time I have to admit it was the last straw that catapulted me into the federal election arena. Just the thought that I was going to saddle the nation with a deficit of $30 billion was more than I could stand. I am not sure whether there was a national uproar, but in my area it was such a concern that many of us joined the Reform Party and said that we would try to do something to turn the tide so that our children would not be adversely affected.
Thirty billion dollars is looking better every day. We are approaching a $45 billion deficit. By the government's own admission the best that it can hope for this year is in excess of $40 billion. Every day that the interest rate fluctuates or the dollar drops or the Minister of Finance has some musings, it changes the rates and the figures once again.
It was a real concern at $30 billion. Now that it is $40 billion or $45 billion, depending on who one wants to believe, it is even more of a concern. I would suggest it has gone from a concern to a pending and possibly imminent disaster.
Since it is bad and is getting worse we should describe, as the member did previously I think a little bit, the size of the debt and what it will mean to Canadians in the years to come. The debt is in excess of $500 billion, depending on the figures that were bandied about here a little bit earlier. Whether it is $16,000 per person or whatever, that only shows part of the picture. The other half of the picture, of course, is the added debt from the provinces, because there is only one taxpayer. Canadians are going to have to finance somehow by increased taxes, increased deficit, and more and more of these types of bills, borrowing authority acts, in all legislatures and Parliaments and that will continue to add to this burden for successive generations.
The deficit, which is a year to year accumulation of the shortfall in the revenues from expenditures, is going to be at least $40 billion this year. That alone is going to add increased burdens on all the people who can least afford it. I seldom see people worth $10 million or $20 million running for cover when these figures are bandied about. What bothers me and concerns me the most is that the people who are least able to shoulder this type of load, those on fixed incomes, the people who are relying on a government pension that they have faithfully paid into and expect to reap some benefit from, the people who are needing some temporary help from a temporary loss of employment through a UI program, no matter how it is revised, will have to pay the price and pay increased taxes and will in the long run experience decreased services.
I have a lot of concerns about that. These concerns have not gone away since I have come to Parliament. Over the last couple of months the concerns I think have been exacerbated by the signals being sent from the government side of the House.
It seems there is no concept of fiscal restraint. The budget papers states: "We will no longer nibble around the edges and just fuss with the minor details of the budget. This budget contains real cutbacks". That is what the government would have us believe. When I turn the page I see that the total expenditures of the federal government have increased from $160 billion to $163 billion.
How is that a cutback? It is not a cutback. It is increased spending. Our borrowing has increased, our taxes inevitably will go up, and our service inevitably will go down. That is a
problem. It is a concern to all of us. It certainly should be even more of a concern to the government side.
If that is the problem, and I believe the problem is what I have described, we are going to pass this problem on to successive generations. What can we possibly do to control the deficit? What can we do to bring under control the year to year deficit so that this borrowing authority that we are debating today will no longer be necessary?
We are not without examples of what can be done even within the Canadian jurisdiction, leaving New Zealand out of it for a moment. I know that is often bandied about. Within the Canadian jurisdiction there have been some examples of what can be done to control excessive spending by governments.
We have an example from Alberta in which the provincial government has grabbed the bull by the horns, if I may use a western expression, and has said that enough is enough, we can no longer afford to continue to spend and tax and spend, and expect to maintain services and a business environment that will assure prosperity in the future.
The premier of Alberta did the unthinkable in Canadian politics. He decided to get tough with some spending, and indeed he did get tough. Some people have done analyses on this and have suggested that if the federal government were to exercise as many spending cuts as the Alberta government proportionately, then it would have to slice $19 billion from its spending just to match the precedent set by Premier Klein in his budget. I am not saying Premier Klein's budget is perfect, but I use that as an example to show that it is possible to realize the severity of the problem. It is possible to reduce one's spending in real terms. It is possible to offer a light at the end of the tunnel for those Canadians concerned about the size of deficits, debts and the borrowing that is associated with it.
Of all things, and I never thought I would say this, there is even an example in my own province of British Columbia. I hate to think that the federal government cannot match an NDP budget, but the B.C. budget brought down yesterday announces tax cuts of $112 million. It will reduce its deficit this year to $189 million which is a tremendous step in the right direction for a government not known for its fiscal responsibility. It is offering certain tangible benefits to businesses and some of that famous light at the end of that famous tunnel.
For example, the Vancouver international airport, which is competing as all of B.C. must for Pacific rim business, is a big winner. The jet fuel taxes are being rolled back one cent to four cents a litre. Air cargo gets another boost. Last year's budget removed fuel taxes from cargo carriers altogether. There are ways to help businesses, consumers and people who are concerned about taxes, deficits and everything that just seems to snowball together. We can specifically reduce spending and by reducing that spending we can offer tax breaks to businesses, consumers and people on fixed incomes.
For instance, in the B.C. budget there were the mining tax breaks estimated to be worth $18 million. This is unprecedented in B.C. recent budgetary history. The people are concerned about increased taxes, increased borrowing and the never ending spiral of hopelessness that involves. Now that the government has seen the light, if I can use that expression again, it has actually reduced taxes in specific areas to help businesses help themselves. These businesses are not going to receive a grant, a handout, regional development aid or anything else. These businesses are going to receive tax breaks which is all that businesses require.
How many times have we heard small and medium sized businesses say that all they ask of government is to get out of their way and get off their backs so they can get on doing the job that they do best which is create jobs for Canadians?
As I said, I did not know that I would ever compliment the B.C. government on its ability to bring in a budget, but I am not going to be totally complimentary to it either. The B.C. budget also brought in some total budgetary spending increases of 3.5 per cent.
What would have happened in B.C. if instead of bringing in increased budgetary spending it had brought in a zero increase in budgetary spending? All of the similar cuts that I talked about earlier could have gone on. The cuts in overall taxation levels could have gone on. The reduction in the taxation for jet fuel and so on and so forth could have gone on. What if, instead of increasing the spending in other areas by 3.5 per cent, the B.C. government had brought in a zero increase budget? Instead of predicting a balanced budget by 1997 it could have brought in a balanced budget within its term, within the next year or two. That would have been a tremendous feather in its cap and may have turned the tide in the popularity contest which it seems to be losing at the current time.
Those are precedents that are within the Canadian round. If the federal government had brought in a zero increase budget and had just held flat at $160 billion, which is incredible as it is, but even if it had brought in that much without an extra $3 billion or $4 billion in spending, then this government I think would have been perceived by the Canadian people as being serious about addressing what may be a crisis problem of deficits, debt and borrowing.
My riding extends from Boston Bar, which is pre-riding boundary adjustment time, in the north which is basically a one industry town, a lumber town that derives almost its entire economic activity from the forestry industry. It extends down through Hope which starts to diversify a little. There is some mining and basically a lot more forestry activity and a lot of tourism. It extends down through the Chilliwack area where I live and where we diversify into agriculture and again lumbering and forestry continue to be important. There is a Canadian
forces base there. My riding extends right into the Abbotsford area which has almost another flavour unto itself. It has a lot of urban commuters who drive in to Vancouver and work in the big city and it has a lot of retirement people as well.
It does not matter where I go in my riding, whether I am talking to a lumberjack or a logger up in Boston Bar with his red strap suspenders and the whole ball of wax, if I talk to him about the size of the deficit and having to live within your means, that logger knows exactly what I am talking about. He will poke his finger into my chest and tell me to tell this government to quit spending money it does not have just like he has to manage things in his own household.
If I extend down into Hope and into Chilliwack where I live and talk to a dairy farmer there who is worried about GATT and NAFTA and all sorts of things, he will tell me again as he sticks his finger into my chest: "You tell that government to quit spending money it does not have. Quit borrowing money to spend on things we do not even need. Quit obligating my children to pay your debts. Tell that government to quit spending money".
If I go into Abbotsford where people live on a fixed income they will come up to me at a public meeting and tell me the same story. It does not matter what you do or where you live, the people know you have to live within your means.
As soon as you get an allowance of two bucks a week when you are 10 years old, you know you have to live within your means. This government has not learned this lesson yet. This is why this government's borrowing authority act is asking for an unprecedented amount of money to keep government going. It has not learned the lessons it should have learned by watching, if I may be so bold, the PC government of the last eight, nine or ten years.
If the government continues to spend this sort of money in the dollar amounts it is proposing, the electorate will turf it out at the next election with such a vengeance that we may again find a party decimated to the ranks with one or two people left. It has to listen to the Canadian people. The Canadian people want restraint. They want budgetary sanity brought back into government and they expect this government to do its part by restricting spending, bringing in a budget that does not include increased spending measures. Do it now. Do it not only for the people sitting here today but, more important, do it for the people of Canada who are demanding it.
I ask the government to reconsider this bill. Do not pass it. Do not ask for this amount of money. Bring in a budget that we can support, something with a cap on spending, and do it now.