Mr. Speaker, it is with great pride and honour that I stand today to represent not only my constituents but all those of Newfoundland and Labrador and all those of the country for which I consider to be a grave injustice that has been served upon this country and certainly upon our neck of the woods, as they say, which would be Newfoundland and Labrador.
Today's motion states:
That this House regret that the party now forming the government has abandoned the principles respecting the Atlantic Accords, equalization and non-renewable resource revenues as articulated in the motion it put before the House on Tuesday, March 22, 2005.
The motion that was put forward by the Conservatives at the time read:
That the House call upon the government to immediately extend the expanded benefits of the...Atlantic Accord to all of the provinces...revenues severely curtails the future prosperity of Canada by punishing the regions where the economy is built on a non-renewable resource base.
The point of all this is very clear, which is to ask the Conservatives at what point they will start practising what they used to preach.
This a point that is an ultimate deception to the Canadian public. This is a point that they have made time and time again, not just in the last election but in the one prior to that as well. It is one that allowed our provinces, many of which rely heavily on non-renewable resources, to become principal beneficiaries of their own resources, which is to say that it gives them a sense of ownership, a sense of pride and a sense of hope for their future.
A few years back, we instituted the Atlantic accords which provided two provinces, Newfoundland land Labrador and Nova Scotia, with the ability to maintain and remain principal beneficiaries of their own resources. In doing that, they have provided offset payments and it has shielded them from clawbacks made in the equalization program. It was a promise that was made, negotiated and delivered.
However, during the last campaign and all the rhetoric that was made during the campaign, the Conservatives said that they would do one better. They said that they would provide the province of Newfoundland and Labrador with the ability to bring about $200 million per year. With that they would have added on to the current agreement with the Atlantic accords. What they had promised to do was to take non-renewables out of the formula. Throughout this day we will be making the points very clear.
I want to congratulate my colleagues from Nova Scotia, New Brunswick, Prince Edward Island, British Columbia and the rest of the country for joining me here. I would also like to honour my colleague, the hon. member for Desnethé—Missinippi—Churchill River in northern Saskatchewan for seconding the motion.
Mr. Speaker, I will be splitting my time with my hon. colleague, the member for Halifax West.
First I would like to address the budget directly. The budget talks about the exclusion clause and states:
As a result, the O’Brien formula provides both a substantial incentive to provinces to develop their natural resources and higher payments to most provinces than one that fully excludes non-renewable resources.
The attempt was made within the budget but what the government tried to do through the front door, it took away from the back. A promise was made and a promise was broken. Here is the essential element of this particular budget that outlines that.
Budget 2007 proposed to implement the recommendations of the O'Brien report. Basically it took it all. One item that is particularly alarming and basically negates the commitment that was made is the following:
--a fiscal capacity cap to ensure that Equalization payments do not unfairly bring a receiving province’s total fiscal capacity to a level higher than that of any non-receiving province.
I would like to illustrate something that was distributed within Newfoundland and Labrador during the last election. The Conservatives had written every Newfoundlander and Labradorian and had told them quite simply that there was no greater fraud than a promise not kept.
Here is what the Conservatives said:
That's why we would leave you with 100% of your oil and gas revenues. No small print. No excuses. No caps.
Here we are a year later and the cap is right here within this budget. A promise made and now a promise broken.
The injustice that we are debating here today is one that is of prime importance. I want to illustrate the lengths to which the government will go to get elected, to get seats and to be absolutely deceptive in all ways, shape and form. This is the crux of it for us in our province of Newfoundland and Labrador. The Premier of Newfoundland and Labrador, Mr. Danny Williams, had written every leader asking for certain commitments and intentions of how they would govern the country. He asked about the equalization formula and the response from the then leader of the opposition and the now Prime Minister and leader of the Conservative Party was that his government would remove non-renewable natural resource revenue from the equalization formula to encourage the development of economic growth in the non-renewable resource sectors across Canada.
That does not say anything about a cap. It does not say anything about going to either the old system or staying on the new system.
Interestingly enough, in the last budget the Minister of Finance had said that side deals with provinces undermine the principles of equalization.
Let us try to follow the logic here. They were saying to Newfoundland and Labrador and Nova Scotia that they could either go to the new system or stay on the old system but for every other province and territory they need to go to the new system.
If that is the case, if Newfoundland and Labrador and Nova Scotia decide to stay in the old system, we have the same situation: two provinces now under a different equalization formula; a side deal supported by this party after saying unequivocally that side deals undermine the principles of equalization. It is one step forward, two steps backward.
Let us go to the deception once more. The following are some of the headlines in recent days from the moves made by this budget and the Conservatives' idea of fixing the fiscal imbalance and answering some of the concerns of the Newfoundland premier.
“N.S. to take big hit in program funding if it opts out of new federal formula”, is the headling from the Newswire in Halifax. Another headline is “Tory MP accuses Saskatchewan premier of lying as government defends budget”. Not only have the Conservatives deceived them, they are attacking them for saying to them “Where is your commitment?” Not only have they abandoned the premiers, they now have decided to victimize them as well.