Mr. Speaker, I would like to take this opportunity to extend a more proper thank you to the people of Ottawa—Vanier for putting their faith in me for a seventh time during the last election. I can assure them that I remain committed to their well-being and to fighting for their interests here in this House.
That said, I would like to begin my critique of the budget by talking about the regional concerns surrounding the future of the public servants in our community.
The government is committed to balancing the budget. That is something the government should achieve and Liberals will certainly be supportive in that objective. The question is how it will attain it.
The government has said that it will not cut certain areas, such as transfers to the provinces and individuals. Therefore, essentially it has limited the universe in which it can effect cuts to about an $80 billion discretionary envelope. The cuts over the next four years will not be in the order of 5%, as some people have said. In terms of absolute numbers, it will be in the order of $1 billion in 2012-13, $2 billion the year after and $4 billion in each of the two succeeding years, for a total of $13 billion. Out of an $80 billion envelope, that represents cuts of almost 14%. Therein lies the rub.
Conservatives said during the campaign, and the Minister of Foreign Affairs repeated it ad nauseam during the campaign, that there would be no cuts to the public service and it would only be done through attrition. The average number of public servants who leave the government through attrition every year is about 10,000 and that represents a saving of about $1 billion on the basis that none of them would be replaced, which cannot be done.
The best guesstimates are that about a third need to be replaced, otherwise the delivery of programs would be crippled. The savings from attrition at most is $750 million a year. That is a far cry from $4 billion. Therefore, there will be cuts and the government has acknowledged that, after the election of course.
We are looking at serious numbers. Some have hinted at as many as 80,000 public servants, 40,000 by attrition if none are replaced, which cannot be done as I have mentioned, plus another 40,000. Depending on how and where it is done, it will have an incredible impact on certain local economies, this one in particular. The national capital region will probably be the worst affected. The individuals let go will have some serious fiscal problems of their own if they are not treated properly.
There has been nothing from the government in terms of how it will approach it, except that it put the President of the Treasury Board in charge, and I will say a bit more on that in a minute. We do not know the governing principles and we do not know what kinds of packages will be offered to public servants who will be let go, so on and so forth.
Right now in this area and other parts of the country where there is a higher concentration of public servants there are serious concerns. That is all I heard about over the weekend. People are wondering and are a little concerned about what is going to happen to their futures. The government has to be very transparent with its own employees, something it has not learned how to do in the last five years. Hopefully, now that it feels more comfortable with its majority, it will treat its employees a bit better than it has in the past. We will see.
Speaking of treatment, the basic fundamentals mean the government has to be transparent with its employees and has to treat them respectfully. We still have, despite the efforts of the government at times, one of the best public services in the world and employees deserve no less than professional treatment, transparency, honesty and forthrightness. I hope the President of the Treasury Board, as he embarks on this exercise, will be guided by such principles.
I go back to the President of the Treasury Board. It is rather ironic that he would be the one asked to do this after the Auditor General's report that was tabled in the House last week. What we have found out is appalling. Parliament has been misled by the government in terms of its expenditures and there has been a misuse of funds. An approved envelope meant for one thing was used for something else entirely. There has been an abuse of ministerial authority in determining how money is spent, without any documentary evidence whatsoever.
Talk about padding one's own host. The $50 million that were to be used to improve the flow of goods and people across the borders between Canada and the United States were used 300 kilometres away in the minister's riding, at his discretion. The Conservatives have the gall to put him in charge of cutting $11 billion over the next four years. We will have to see how that goes.
There are a few other matters that should be noted.
One of those matters is political party funding. I do not want the hon. members to worry about me personally, so I will say that it does not matter to me if the subsidies are eliminated or not. I have never received the subsidy and have never wanted to. Things are taken care of in my riding and there are no issues. But the irony runs deeper. We are facing an intellectual challenge: individuals who wish to contribute to a political party are limited to contributing $1,100 a year, while a third party can legally sneak in, get involved in campaigns in every riding and spend $3,000. Why the double standard?
It has not been an issue until now because the per-vote subsidy levelled the playing field. When the subsidy is eliminated, it is crucial that Parliament review political party financing legislation to ensure that fairness is a governing principle. It is not right that one person can spend $3,000 in a riding and that another is limited to $1,100 in political contributions. Political parties are registered by law with Elections Canada to protect the interests of the various political groups represented here in the House. Since this subsidy is being eliminated, Parliament must address the issue.
We do need greater literacy in fiscal matters in our country. On that front, the government had created a body that looked at that and made some serious recommendations. One would hope the government would follow up on those recommendations. It is important that it does.
The level of individual indebtedness in our country is way too high. It brings about a risk factor that we could attenuate. Currently in some cities the housing prices are untenable and if for whatever reason, oil prices, worsening international climates or investments were to dry up, we would see a dramatic drop of up to 10%, 20% in some cases, of the value of real estate and the concomitant disaster in some personal finances because of the high level of indebtedness. We need to address that as a country and I do not see the efforts to do just that in the budget.
Those are two things to which I would hope the government would pay attention and that we would see better efforts to ensure that the financial situations of individual Canadians would be looked after.
We will be coming back to the whole issue of crime. The government's approach to this issue is completely backwards. The exact opposite is what is needed. We need to reduce crime, rather than throw people in prison for even longer periods and at increasingly exorbitant costs. We will come back to this, since an omnibus bill on crime is coming down the pipe. We will definitely be talking about this issue again.
Lastly, I would like to talk about post-budget questions. What worries me about the government's attitude is that it has said nothing about any investment in education, health care or the needs of Canadians once the budget is balanced. Instead, it talks about increasing the number of tax havens for the wealthy, when it should be doing the opposite. Therein lies the main difference between the Conservative philosophy and the Liberal philosophy. We Liberals try to strike a balance between the needs of Canadians and the need to create enough wealth to support one another.