Jim Flaherty

[Taxation, September 28th, 2006]

Mr. Speaker, first, we did acknowledge the fiscal balance during the election campaign and we continue to say that.

Second, we put out the paper on restoring fiscal balance with the budget. We said in the paper and I said in the budget speech that we would proceed with consultations. We have proceeded with consultations, not only by me in my job in finance, but also with respect to post-secondary education, skills training, infrastructure and other challenges that we have between levels of government in Canada.

The next stage is to move forward toward budget 2007 where we will be able to announce the changes that will be made.

[Taxation, September 28th, 2006]

Mr. Speaker, it is surprising to hear that kind of suggestion from a member of a party that does not even acknowledge that there is a fiscal imbalance in Canada. How can that party complain about a government today that is actually doing something about the fiscal imbalance in Canada, recognizes it and is committed to it, unlike the Liberals opposite who deny the existence of any imbalance in the Canadian federation?

We are addressing it. We are working on it. We have a plan and we will take care of it.

[Taxation, September 28th, 2006]

Mr. Speaker, we firmly intend to fulfill our election commitments with respect to equalization and restoring the fiscal balance in Canada.

Not only do we intend to keep the commitments, we already have started, by putting forward the paper with the budget, by going ahead with the consultations with our provincial and territorial colleagues, and by working toward the fall statement and of course toward the plan for 2007, which will be set out in budget 2007.

[Government Surplus, September 27th, 2006]

Mr. Speaker, I am happy to say that we will save approximately $650 million in annual interest payments. That is money paid by Canadian taxpayers because they work hard, and now it can be used for programs in Canada that benefit all Canadians.

More than that, in terms of intergenerational equity, this savings will happen year after year, for the benefit of all Canadians, of around $650 million a year.

[Taxation, September 27th, 2006]

Mr. Speaker, I do not know where to go with that. There are a whole bunch of accusations and things.

What we are trying to accomplish is a rational basis for fiscal balance in Canada, based on fairness and principles, so we can move forward in our relationship with the provinces and the territories in a fair and principled way. Surely that is desirable for Canada. It is desirable for all the provinces and territories.

[Taxation, September 27th, 2006]

Mr. Speaker, we are moving toward restoring fiscal balance in Canada. Our government has made that clear. The Prime Minister has made that clear.

It is something that members opposite failed to do when they were the government. In fact, we ended up in a rather confusing situation. Now we want to move forward to fiscal balance in Canada, focusing on fiscal balance for the provinces and the territories based on fairness and a principled approach.

[Taxation, September 27th, 2006]

Mr. Speaker, it is important for all of us to remember that the provinces have taxing powers and that, generally speaking, they should use their taxing powers to pay for purely provincial programs.

We have had very constructive discussions in recent months between the federal ministers and the provincial ministers, dealing with vital issues like infrastructure and post-secondary education. Those discussions will continue as planned and in accordance with the schedule that we set out in budget 2006.

[Taxation, September 27th, 2006]

Mr. Speaker, again, this is a multi-faceted issue. The transfers involve issues of infrastructure, post-secondary education, training, all of which are very important for the economic future of Canada, as well as the federal constitutional responsibility with respect to equalization.

We will continue with the discussions, as we said we would. We are on track.

[Taxation, September 27th, 2006]

Mr. Speaker, our discussions with our colleagues in Quebec, as in the other provinces and territories, have been very constructive and cordial. Of course we want to move toward a consensus, if a consensus can be achieved. That may not be possible at the end of the day.

Again, I think most Canadians would want Canada's new government to work cooperatively with Quebec and the other jurisdictions toward that goal.

[Taxation, September 27th, 2006]

Mr. Speaker, as I have said, it is very important that we try to reach a consensus with the provinces and territories about these important issues of equalization and transfer payments to the provinces. Those discussions are taking place. They have taken place. There will be more discussions in the coming months.

I think most Canadians would want the government, as Canada's new government, to move toward consensus, if possible, on these vital issues for Canadians.