Paul Martin

[Unemployment Insurance Reform, April 19th, 1994]

Mr. Speaker, it is precisely because we are very much aware of the enormous problem which unemployment represents everywhere in Canada, and certainly in rural areas, that we want to proceed with a reform of the unemployment insurance program. We want to really lower UI contributions so that small businesses can hire new workers, protect the poor, including single-parent families, and have the money to educate and train the workers of the future.

We made those decisions because we are keenly aware of the unemployment problem in Quebec and in rural Canada.

[Transfer Payments, April 19th, 1994]

Mr. Speaker, the member refers to the fact that we are cutting-I cannot remember the expression that he used-our transfers to the provinces.

In fact, in the month of January, we settled equalization payments on a basis that had been deferred for a number of years by the previous government. The payments were very generous to the seven provinces that were receiving them.

At the same time we met with the provincial finance ministers and told them we would not decrease the payments for a two year moratorium. It is the first time that has been done in a long time. They are used to the previous government simply cutting at will.

Then we said to the provinces that together, co-operatively, we would begin to reform the social programs that Canadians wanted reformed so that we could deliver the services more effectively and at less cost.

[Transfer Payments, April 19th, 1994]

Mr. Speaker, what I said is that the Minister responsible for Public Service Renewal intends to review all federal programs and that review is already under way. So we are certainly looking at our own spending.

I would like to quote a document of which I am very fond, the budget: "It is essential that social security reform leads to programs that are more affordable and work better for Canadians. For the federal government, transfers must be no higher after reform than they are now. We want this reform process to be a co-operative one. We are providing a two-year period of predictability and modest growth in social security transfers to provinces while reform goes on. As promised by the Prime Minister, we will build towards a five-year period of stability in transfers."

That is what I said in the budget, that is what I said yesterday, that is what I discussed with all provincial finance ministers: co-operation. They agreed on it in January.

[Unemployment, April 18th, 1994]

Mr. Speaker, I should point out, and this is why our approach is a well-balanced one, that the deficit must be lowered to stimulate employment and to foster economic stability in our country.

We would love to lower UI contributions now, but we need money to do that and we need the UI reform which will be proposed by my colleague, the Minister of Human Resources Development.

When you look at the budget initiatives regarding apprenticeship programs, if you co-operated with us, instead of stubbornly objecting to the measures put forward by my colleague to help young people and to train older workers, we could create many more jobs.

[Unemployment, April 18th, 1994]

Mr. Speaker, there is no doubt, and we have said so ourselves, that the real reason for the lower unemployment rate is a reduction in the number of job applications.

However, it must be pointed out that, for the most recent month, we created 48,000 jobs, and a total of 114,000 over the last two months, which is almost a record for the last five or six years. Consequently, the government is very proud of its performance. However, the hon. member is absolutely right regarding the enormous cost of unemployment.

In fact, this is one of the reasons why, unlike the Reform Party, we believe that, to lower the deficit, we must not only make cuts, but also stimulate employment. This is the best approach to a more reasonable deficit and a more adequate financial situation.

[Hyundai Motor Company, March 25th, 1994]

Just to show you that I have learned my lesson, Mr. Speaker, yes we have asked those questions.

[Hyundai Motor Company, March 25th, 1994]

Mr. Speaker, as has already been announced in this House, the respective ministers responsible for the development agencies, namely the minister responsible for ACOA, the minister responsible for western diversification and the minister responsible for FORD-Q, have all said the way in which regional development policies have been carried out in the past are certainly ineffective and really not in accordance with the needs of a modern economy.

As a result, all three ministers have said they are reviewing and in fact have either imposed or brought in substantial changes in the way government interacts with the economy.

Our position has been very clear on that and we are in the process of doing it. In fact a great deal of that is manifested in the budget and will be manifested in subsequent budgets to come.

In terms of the particular incident the member raises, first of all this agreement was signed prior to our taking office. It was also within the context of a larger overall agreement between Quebec and the federal government, as has been signed with many other governments. While there are numerous problems with that, we are going-

[The Economy, March 25th, 1994]

Mr. Speaker, I have heard the Prime Minister repeatedly within this House in response to questions from the other side say exactly what I said in the budget speech. That is that the cuts in our budget in and of themselves are sufficient for us to reach the 3 per cent of GDP target that we have within three years.

The Prime Minister has gone on to say that within the budget reference is made to the review of government operations which is going to be undertaken by the Minister responsible for Public Service Renewal in which we are rethinking the role of government, rethinking the way in which we approach the economy. That is an essential part of our budget and it is an essential part of our ultimate plan to clean up this nation's finances.

[The Economy, March 25th, 1994]

Before Christmas the Governor of the Bank of Canada and I sat down and set out our inflationary targets for the next five years. Those inflationary targets we did in a very short period of time, something that took the previous government two and one-half years to arrive at.

Those inflation targets are among the most disciplined of any of the industrial countries in the western world. They are a 1 to 3 target with mid-point 2. The Governor of the Bank of Canada testifying before the Senate the other day made it very clear that we are going to stay within those targets.

[The Economy, March 25th, 1994]

Mr. Speaker, I know that this is not the case but the member seems to be almost rubbing his hands in glee at what is happening. I am sure that is not the case because all members in this House will seek the best for the Canadian economy.