Mr. Speaker, whenever a budget is brought down, we have to keep repeating the same thing over and over because it seems to me that the government is turning a deaf ear, it is not listening. I think that this budget illustrates the extent of the fiscal imbalance.
Since the Liberals took office, Ottawa's revenues have increased by 50%, from $123 billion in 1993-94 to $185 billion in 2003-04.
If there is one thing to remember about budget 2003, it is that the federal government's revenues are disproportionate to its needs. The government is rolling in surpluses. It is collecting far too much in taxes. The Bloc Quebecois estimates that, in spite of an 11% increase in spending—an enormous increase—Ottawa will still end up with a $14.7 billion surplus over the next years. This goes to show the extent of the fiscal imbalance. As stated previously, only Quebec, Manitoba and Alberta will be deficit-free next year. Every other province will have a deficit.
The federal spending power is another consequence of the fiscal imbalance. Ottawa cannot resist spending its surpluses in various areas that fall under the jurisdiction of Quebec and of the provinces. The federal government thinks nothing of establishing organizations or new programs in education, child welfare or health care. Ottawa will be spending $4.5 billion over the next three years in these areas, thereby causing an administrative dispute with Quebec and the provinces. The bottom line is that the government is wasting money.
Then there are the people who were left out of this budget. Let us say that the regions dependent on softwood lumber, self-employed workers and farm producers—who do not exist as far as the federal government is concerned—the aboriginal people, the unemployed and those workers who pay into the EI fund have been forgotten in this budget.
Finally, I should mention the middle income taxpayers, who are completely forgotten. The federal government preferred to announce an increase in the RRSP limit, which affects merely 1.5% of the taxpayers in Quebec, that is, those reporting an average income of $150,000 or more.
The Minister of Finance has been boasting of transparency, but he has still underestimated the surplus by close to $8 billion. He has announced a balanced employment insurance fund, but the federal government is once again going to be digging into the three million dollar annual surplus. Finally, he has created trusts and foundations that are beyond the control of the public and parliamentarians.
SInce 1998, the budget for defence has increased by 53%. By comparison, federal transfer payments for post-secondary education have dropped more than 30% since 1996. Where, in your opinion, do Quebeckers place their priorities: defence or education?
In addition, there is a new accounting method for government assets. The federal government has altered its bookkeeping methods, and from now on the method used will be full-accrual accounting. This change of method impacts on the government's bottom line.
The minister's budget forecasts are $9.4 billion for 2002-03 and $8.8 for 2003-04. The government has also kept a cushion of $3 billion for 2002-03 and $4 billion for 2003-04, which makes a total surplus for the next two years of $25 billion plus.
The Minister of Finance has not responded to the demands of the people of Quebec and of Canada. Prebudget consultations by the Bloc Quebecois led to our calling for the government to do the following: gradually correct fiscal imbalance and transfer $9.5 billion over two years to the provinces in the form of tax points or GST revenues; reduce premium rates and broaden the rules for eligibility for employment insurance, something that is very important today with all that is going on in the fisheries, softwood lumber and elsewhere; create a new infrastructure program; support the wind-power industry; abolish the special 1.5 cent per litre gas tax; abolish the airport security tax; cut several billion dollars annually from government spending by abolishing useless programs, waste and tax havens that make no contribution whatsoever to economic growth.
As far as resolving fiscal imbalance is concerned, the Séguin commission had unanimous support in Quebec. There is a fiscal imbalance and it must be corrected. To that end, we asked the federal government to transfer to the Government of Quebec and the governments of the other provinces an additional taxation capacity that would enable them to invest where the need is greatest.
We are asking for a further transfer of tax points or additional tax room of $4.5 billion in 2002-03 and $5 billion in 2003-04.
The various measures taken in the 2003 budget do nothing to reduce the financial pressure on the provinces. We can conclude by saying this: the government has announced insufficient additional investments in sectors where the needs are blatant, such as health, and has distributed the funds to programs and agencies that encroach on provincial jurisdictions.
Visibly, the federal government has no intention of resolving the fiscal imbalance. Creating new agencies, new programs, and new bodies will only perpetuate the status quo in intergovernmental financial relations, or make matters worse. The needs of citizens are always poorly met, because the provinces do not receive adequate resources from the federal government in order to be able to respond to the needs of the people.
Let us now turn to the people who have been left out of this budget. A self-sustaining employment insurance fund must be created. Unions and employers are exasperated by the misuse of EI funds. They support the Bloc's call for a self-sustaining EI fund, so that the government will stop robbing the fund, and so that contribution rates will be set by those who pay into the fund, both employees and employers.
The Bloc Quebecois had hoped the Liberal government would create a self-sustaining fund before the former Minister of Finance returned. However, the current Minister of Finance's budget did not establish a self-sustaining EI fund and announced a delay of almost two years for establishing a new mechanism for setting premiums. The program may ring up a surplus of $3 billion over the next fiscal year, and the Minister of Finance has been promising to balance EI spending and premiums in the following years.
Let us talk about abolishing the gasoline tax. The government introduced a special tax of 1.5 cents per litre to bring down the deficit. Now that deficits are a thing of the past, why does the government not abolish this tax, or turn it over to the provinces for infrastructure spending? That would be a very good idea.
On the issue of infrastructure funding, the Bloc Quebecois had asked that enough money be provided for Quebec to proceed with needed infrastructure projects. We had asked for substantial, long-term commitments. The increases in infrastructure funding are not enough. On top of that, the government has been slow in turning over the amounts needed.
The budget contained an additional investment of $3 billion over ten years. This investment is broken down as follows: $2 billion more for the strategic infrastructure fund. The fund is going from $2 billion to $4 billion, with $1 billion for municipal infrastructure over ten years.
One billion dollars is not a lot. One hundred million dollars per year for all of Quebec and Canada is not very much.
Who has been overlooked? Women. Despite additional money for the national child tax benefit and for day care spaces, which have an indirect effect on women's lives, there were relatively few real measures to help women directly in this budget.
For example, the budget makes no mention of the federal government's intention to negotiate with the Quebec government to reach an agreement on clawbacks of employment insurance premiums, which would allow the creation of the Quebec parental insurance program or RAP. This new program would replace and improve the federal employment insurance program's maternity and parental leave. More people would be eligible, such as women who are self-employed or seasonal workers, and the benefits would be better, with an income replacement rate of up to 75%. Conditions for women having children would be greatly improved and simplified.
Furthermore, the budget contains no tax or other measures for the elderly, such as annuities or old age pensions. However, this group's income continues to decline, and since women represent over half of this group, they are the ones who will suffer most.
As for aboriginals, they get very little from the Minister of Finance's budget. Since the Royal Commission on Aboriginal Peoples tabled its voluminous report, the federal government has been slow to respond, instead of taking immediate action.
It is the same story for seniors. There is nothing in the budget for seniors.
With regard to softwood lumber, Human Resources Development Canada's plan for workers hit by the softwood lumber crisis has been strongly criticized by all sides, with many claiming that the measures announced to assist these workers were clearly insufficient. I agree; there was proof of that this week and in previous weeks.
Some ministers have promised a second phase in the assistance program for workers in the softwood lumber industry. However, the budget makes no mention of funding for phase two. It is as if the federal government had forgotten its promises; its representatives are doing even worse, they have lost their memory.
Then there are travellers and airports. Nothing has changed. There is a $12 tax. Perhaps the government should eliminate it. This means that the government's budget does not really reflect the needs of people in Quebec and Canada.