Mr. Speaker, I appreciate the opportunity to join in this debate on this very important issue. It is an issue that is important not just to the people of Nova Scotia and Newfoundland and Labrador but also to the good people of the province of Saskatchewan. Really, as they see what is really at play here, we can say that it is important to all Canadians.
During her speech earlier, the Minister of Intergovernmental Affairs indicated that what the government wanted to do was go back to a principled application of the equalization formula. It was to be based on principle, and I think it was framed fairly well today in the Globe and Mail, which reflected on the Groucho Marx line about principles: “Those are my principles, and if you don't like them...well, I have others”.
The principle at play here is that the federal government made a commitment to the people of Nova Scotia and made a commitment to the people of Newfoundland and Labrador and signed a contract. The government is walking away from that commitment. It is breaking the deal. That is the principle here.
I think it is important that we get back to what this meant to the people of Nova Scotia and the people of Newfoundland and Labrador.
I can speak firsthand to the situation in Nova Scotia because I was there in February 2005. After many months of negotiation, the accord was signed by the premier at the time, John Hamm, and his minister, Cecil Clarke, representing the province of Nova Scotia, our fisheries minister at the time, the member for Halifax West, and our Prime Minister. The signing of that accord was monumental.
The people of Nova Scotia said that was the single greatest day in Nova Scotia since oil and gas were discovered off the coast. That is how important this was to the people of Nova Scotia.
It was a promise made by our former prime minister, the member for LaSalle—Émard, and he went beyond the promise. He promised Nova Scotians and Newfoundlanders and Labradorians full access to their offshore revenues, but he went beyond that and cut an upfront cheque for each province.
That amounted to $800 million for the province of Nova Scotia, a significant amount. As for the debt situation that we were in at the time, we carried more debt per capita than any other province. That debt was a ball and chain. It was weighing us down as a province.
Our premier at the time applied the $800 million to the $12 billion debt that the province of Nova Scotia was carrying. I totally supported the premier on that decision. In doing that right thing, he brought down the annual interest in the province of Nova Scotia by between $40 million and $50 million annually. That $40 million or $50 million goes into highways, hospitals and education. It benefits all Nova Scotians. That was the right thing to do. It was honourable of our former prime minister to do to make sure that money was issued upfront.
Just so members understand, what the accord did was make sure that the clawback provisions from equalization were no longer applied. There were no more clawback provisions through equalization because of the offshore revenues. It was meant to be a building block so that Nova Scotia could move from being a have not province to a have province. There is activity in the economy in Nova Scotia, but the accord was in essence the foundation, a building block, and then, with the equalization on top, suddenly the revenues started to make some sense. The province was able to start getting at that debt that we continue to carry and that continues to be a burden on the people of Nova Scotia.
However, what happened when the budget was tabled was that the rug was pulled out from under the feet of Nova Scotians. The foundation was removed with the pulling out of the accord.
The comments that are coming from the government today are about how “they can have one or they can have the other”. That was never the deal. This was both. This was the accord. This was equalization and no provision of clawbacks. Indeed, when we held government, we did increase the amount of equalization through a change in the formula. We increased the amount of equalization to the province of Nova Scotia and there was no impact on the accord. It in no way compromised the accord. This could be done. We know that this is not what happened in this case.
Numbers get bandied about in the House. In order for us to get a true view of it, let me mention that I read a great op-ed article a number of weeks back. It was from Peter O'Brien, the former Atlantic representative on the Canadian Federation of Independent Business. He was never a great friend of the Liberal Party of Canada, by any means, and when there was an issue he would take issue with the government.
However, in regard to his position on this aspect of the budget, the accord, he said that when it was first announced the message coming from the Minister of Finance and the regional minister was, “Hey, this is all good, there is no change, no cap, and no compromising the Atlantic accord”. He took it at face value. In the article, he goes on to talk about two of this country's strongest and most respected economists, Wade Locke, from Memorial University in Newfoundland, and Paul Hobson, from Acadia University in Wolfville, Nova Scotia.
Mr. O'Brien has been in a number of prebudget lockups with these gentlemen. He said that their work is exemplary and he trusts them completely. Mr. O'Brien said that by Wade Locke identifying and going through the process, and showing that the province of Newfoundland and Labrador will lose $11 billion with these changes and the province of Nova Scotia will lose a billion dollars with these changes, he knows that what he was getting from the Minister of Finance and the regional minister was nothing but spin. The truth is that both of those provinces lose with the changes that are made to this accord, and that is truly shameful.
We have heard about this throughout this debate since the budget was tabled. I remember the day it was tabled. We were on our feet on this side of the House questioning the government about the impacts on the accord for both Nova Scotia and Newfoundland and Labrador. We knew there was going to be a net loss to the citizens of those two provinces, but the government said no, that was not the way it was at all. It said that this is great, we do not compromise anything, and they end up coming out ahead.
Then, when there was a unanimous resolution that came from the legislature in Nova Scotia, an all party resolution that called for the government to reinstitute the accord, those guys stood up and said, “Hey, there's no problem, it's all good”.
The government sent its finance minister to meet with the finance minister for Nova Scotia. They had a six hour meeting. That is no reflection of us being slow learners in Nova Scotia. It is because the finance minister for the province of Nova Scotia knew what it had lost under the changes in the government's budget.
Then, of course, yesterday was the big day when this thing all came to a head. We saw what went on with the member for Cumberland—Colchester—Musquodoboit Valley. We saw the arm-twisting that went on. We know about the work that was going on behind the steel curtain over there.
The member for Cumberland—Colchester—Musquodoboit Valley took a principled approach. He chose province over party. He took a principled approach and he did the right thing, because he knows that this deal is not a good deal for the people of Nova Scotia and it is not a good deal for the people of Newfoundland and Labrador.
What I want to do is call on the government to make sure that it abides by this agreement that was signed between the federal government and those provinces and that it reinstitutes the accords so that the people can share in what is rightfully theirs.