Jim Flaherty

[Transfer Payments, November 22nd, 2006]

Mr. Speaker, forgive me for trying to figure out which one of the Liberal budgets the member opposite is speaking about. Was it the budget that was first announced in the House, or was it the NDP budget that followed along? Was it perhaps the announcements that were made in November last year?

One can select from three sets of figures that the former government had about potential transfers to real Canadians. We prefer our solid numbers in budget 2006, which are all increases in transfers to the provinces.

[Transfer Payments, November 22nd, 2006]

Mr. Speaker, we have fully funded the trust transfers for post-secondary education, for infrastructure, for aboriginal and off reserve housing and for public transit. We are providing $2.5 billion per year directly to children and families through the new universal child care benefit plus $250 million for child care spaces.

In addition to the transfers that I have already spoken about, which members opposite do not seem to understand, it increases from $40 billion to $49 billion over the course of the fiscal years to 2011.

[Transfer Payments, November 22nd, 2006]

Mr. Speaker, the member opposite apparently is confused about the fiscal situation in Canada as between the provinces and the federal government. In fact, the total surpluses in the provinces this year are $13.4 billion. In addition, the level of accumulated debt in the provinces is lower than that in the federal government.

The surplus in the provinces is higher than the federal surplus of $13.2 billion. Nevertheless, we know we have to move forward on transfers to accomplish fiscal balance in Canada, something that the former government always denied existed.

[Transfer Payments, November 22nd, 2006]

Mr. Speaker, there seems to be some challenge on the other side in understanding the figures. Once again, transfers to the provinces and municipalities are increasing by $9 billion, a very substantial increase.

With respect to the other point the hon. member raises relating to equalization, it is an ongoing discussion. There have been a series of reports released. We are on track in our discussions. Our plan from budget 2006 is being followed. There will be a meeting next month of the ministers of finance. Not long ago I met with the minister of finance from Saskatchewan in Ottawa. We are having useful discussions--

[Transfer Payments, November 22nd, 2006]

These are not just simple numbers, Mr. Speaker, they are single digit numbers: $9 billion more in transfers, and for health care alone, $8 billion more.

It was a lot worse in the 1990s. I knew, as the finance minister of Ontario, when we had to try to balance budgets, the Liberal government reduced funding for health care, reduced funding for education, and reduced money for social services on the backs of the people of every province in this country.

[Transfer Payments, November 22nd, 2006]

I hate to disappoint the member opposite, Mr. Speaker, but transfers to other levels of government, provinces, territories and municipalities, are rising from $40 billion this year to $49 billion in 2011. That is $9 billion more over that period of time. In addition, federal funding for health and social programs will rise, as part of that, from $28 billion this year to $36 billion in 2011. That is $8 billion more.

[Transfer Payments, November 22nd, 2006]

Mr. Speaker, as I have already said, this is the first national government to actually recognize the issue of fiscal imbalance moving toward fiscal balance and that is a constructive discussion that is ongoing.

With respect to income splitting, we made the decision, which was announced recently, to permit income splitting. I thank the members of the Bloc Québécois for supporting that motion which certainly helps seniors and pensioners in Canada. It will reduce the tax burden on many seniors and pensioners who are relying on one pension, or one pension plus another small pension, by thousands of dollars starting January 1, 2007.

[Taxation, November 22nd, 2006]

Mr. Speaker, the only income splitting that we have proposed is income splitting for pensioners in Canada and I thank the Bloc Québécois for supporting our motion.

[Transfer Payments, November 22nd, 2006]

Mr. Speaker, I do not know how the party opposite can take credit for funding increases this year, next year and years up to 2011 since it is not the government.

Having said that, the party opposite reduced transfers to the provinces in the 1990s on the backs of health care for Canadians. The suffering of Canadians in health care is wholly attributable to the government of the day. That is how it purported to balance budgets in Canada: on the backs of health care for Canadians.

[Transfer Payments, November 22nd, 2006]

In fact, Mr. Speaker, the transfers to the provinces are $40 billion this year, increasing to $49 billion in 2011.

With respect to fiscal balance and the fiscal balance issue, yesterday we had this statement: “I recognize this is the first national government to acknowledge the fiscal imbalance and I am very pleased by that. This is a good first step.” That is from Dr. Marie Bountrogianni, the Minister of Intergovernmental Affairs for the province of Ontario, before the Senate committee yesterday.