Mr. Speaker, I want to follow up on a couple of comments made by the member who spoke previously. Like my colleague from Stormont—Dundas—South Glengarry, I too have a great problem with the fact that the member seems to be driving wedges between our provinces. He wants to compare provinces and how they have done and compare the numbers.
It was interesting to hear him say that equalization is not really about equality. It seems to me that it is. It is about treating people fairly and treating them equitably. Obviously if the idea is that non-renewable resources can be removed from some provinces' formulations in this whole system, it seems to me to say that they can be taken out of everyone else's to make it fair as well.
I want to talk a little about how we came to be here today. I do not really think that we should be here. If the government had been treating people fairly and equitably and dealing fairly with provinces, we would not be in the situation we find ourselves in today.
Basically what this comes out of, unfortunately, is having a political leader, now the Prime Minister, who had no backbone. In the election we saw him travelling around the country into regions that were demanding different things. He got into an area where he felt that he needed to make a huge commitment to try to gain some seats. He made the commitment that he would take the renewable resources out of the funding formula for equalization for eastern Canada, for Newfoundland and Labrador and for Nova Scotia. He made that commitment during the election, with no intention at all, let me add, of keeping it, not that we could tell.
Unfortunately for him and fortunately for Newfoundland and Labrador and Nova Scotia, a number of people from the Conservative Party in this House and the premiers of Newfoundland and Labrador and Nova Scotia insisted that he be held accountable for the promises he made.
So he was. It was a big struggle for everyone to overcome the objections of the Prime Minister and the finance minister to this plan. They finally went ahead with it and granted Newfoundland and Labrador and Nova Scotia what I would see as an exemption, basically; they are taking non-renewable resources out of the formula and have a good deal and a fair deal from that.
It is only reasonable that other provinces affected by that situation would ask for some of the same treatment. That is what we are doing here today.
I particularly want to acknowledge the member for Prince Albert in our caucus, who has been working on this issue for a long time. He was on it before it was popular and before many of the rest of us even realized it was a big issue. He has studied it and understands it well. I also want to thank the member for Regina—Lumsden—Lake Centre who moved the motion today to bring this forward in the House.
Equalization, as hon. members and others know, has a long history in this country. It was included in one of the sections of our Constitution when it was repatriated. The Constitution states that we have a commitment to equal opportunities in this country and that parliamentarians, the Government of Canada and the provincial governments are committed to “promoting equal opportunities” for Canadians, “furthering economic development to reduce disparity in opportunities”, and “providing essential public services of reasonable quality to all Canadians”.
It seems to me that today's request for all provinces to be treated fairly fits in with this.
In the Constitution, a second subsection also talks about how Parliament and the Government of Canada “are committed to the principle of making equalization payments to ensure that provincial governments have sufficient revenues to provide reasonably comparable levels of public services at reasonably comparable levels of taxation”.
That is what we are asking for today: that our provinces be allowed to provide those services at reasonably similar levels of taxation and that in doing so they get the same advantages from agreements that are made by the federal government.
Obviously equalization is the federal government's largest program for trying to reduce the fiscal disparities between provinces. Over the years its success has been questioned. Even the Prime Minister felt that there were problems with it as he agreed to change it. I hope to talk about that later.
Equalization payments are paid to less prosperous provincial governments to provide the residents public services comparable to those in other provinces. Equalization payments are unconditional; I do not know if most people know that. The receiving provinces are free to spend the funds on public services according to their own priorities.
In 2004-05 equalization will ensure that all provinces have access to revenues of at least $6,126 per resident to fund those services. I found this interesting. That is a significant amount of money and it is important that the provinces spend it wisely.
The program was renewed in 1999 for five years and has transferred an average of almost $10 billion a year to the provinces over the last several years.
The equalization payments this year are going to be in that range, about $9.7 billion. Saskatchewan actually has been a receiving province of equalization. It is only because of the skyrocketing oil prices over the last year or so that we have moved out of that situation.
Equalization is calculated using a formula that takes into account a number of different things measuring a province's fiscal capacity. There are 30 sources of revenue figured into that. It includes such things as personal income tax, corporate tax, sales tax, property tax and other such sources. The focus of today's discussion is on one issue, which is the role of non-renewable resources in that formula.
There has been a call for years to change that formula. There has been an unwillingness by the government to admit that the formula is actually flawed, but I would suggest the Prime Minister admitted that it was flawed when he agreed to change the formula for two provinces. He changed it not because of a belief that he had to make a change, but because he was put in a situation politically where he had no choice and his feet were held to the fire by Premier Williams, Premier Hamm and the Conservative caucus in this House, which finally forced the deal. I would like to come back to that deal later if I have the time.
I want to talk specifically about Saskatchewan. Because it is a province that is in the same situation as Newfoundland and Labrador and Nova Scotia, it is important that the finance minister and the Prime Minister realize they need to give the same deal to Saskatchewan as well.
We need to understand that no legislation would be changed. This agreement was made without legislation being changed. Therefore, agreements can be made with the other provinces, including Saskatchewan, without a major change in legislation.
I am disappointed particularly in the finance minister. We have seen before in Saskatchewan that whenever he gets into a tight spot he seems to think if he appoints a committee that somehow it will protect him and keep him out of trouble. It has on occasion, but this time I think everyone is seeing through that.
We recognize that he has appointed a committee. As we look through the structure of that committee, we notice that there are a couple of well connected Liberals there. One in particular has been appointed to other posts by the government. Some Liberal donors are also on the committee. It is interesting how the committee members are selected. Once again, there is really no surprise.
Mr. Speaker, I am splitting my time with the member for Battlefords—Lloydminster.
Saskatchewan has always been a have not province. Over the years oil prices have changed that. We have suffered from decades of poor management from socialist governments that have almost destroyed our economy. We sit beside Alberta. At one time we had the same population as Alberta. Both provinces had the opportunity to move ahead. We have chosen one direction and it has chosen another.
As we see the markets work in Alberta, it has been able to develop and prosper. In Saskatchewan we have suffered in many ways because of the socialist government philosophy which has kept people back. What is most disappointing to me is that we see in so much of socialism, including across the way, that the real intent of it is to keep people back. It is not to bring everyone ahead at the same pace but to keep those back who would be successful. That has made us rely on equalization payments for a long time.
We know that the current equalization formula is flawed. We agree that Newfoundland and Labrador and Nova Scotia deserve to keep their offshore gas and oil revenues. However, we think that what is fair for those provinces is also fair for Saskatchewan.
It is estimated that had Saskatchewan received this deal a decade ago, it would have meant up to an additional $8 billion in the province from non-renewable natural resource revenue. It is interesting because our debt is in the range of $12 billion to $13 billion. We would have been in a very good situation had this deal been made quite a while ago. For much of the past decade, instead of the people in Saskatchewan getting that revenue, the Liberal government has actually clawed back our oil and gas revenues at a rate exceeding 100%. This change should be a slam dunk.
Unfortunately, I am coming to the end of my time and I would like to speak to this issue for quite a while longer. One of our biggest problems has been the finance minister in our province. He has not been a friend for Saskatchewan over the years. He failed on the Crow rate payments. He failed on a number of Canadian Wheat Board issues, which culminated in farmers being locked up in jail because of his action.
Now we are dealing with an equalization situation where he absolutely refuses to do the right thing for his own province. As I mentioned, rather than do the right thing, he has appointed another committee which will not report until the end of the year and then we will discuss it for another year or two. In the meantime, the Saskatchewan economy is not what it should be.
We call on the finance minister to step forward, do the right thing for his province and give Saskatchewan the same deal that he has given to Newfoundland and Labrador and Nova Scotia. In the interest of fairness, we hope that he will do that.