Madam Speaker, I rise today to speak to the Bloc's motion on the current economic situation in Montreal. This is one of those times when I feel I do not belong, being part of a different family, but that I must still take part in their debate. Anyhow, the motion reads:
That this House recognize Montreal as the economic mainspring of Quebec society and, therefore, condemn the federal government's lack of concrete initiatives in supporting the Montreal area economy, primarily-
It then lists several particular areas in which the federal government has failed.
I notice that we are dealing here with the Montreal area, where the support for the Bloc is not as strong as in the rest of Quebec. This may not be pure coincidence, but I believe that there is here reason enough to blame both the federal government and the sovereignist movement. If I may, I intend to move an amendment later on reflecting my point of view and my party's to the effect that both sides are to be blamed for their policy with regard to this economic crisis.
[English]
What has happened to Montreal? When I was a young boy growing up in Toronto, Montreal was a substantially larger city than Toronto and was recognized in Toronto at the time as being the economic centre of Canada.
Before I was a teenager all of that had changed and today in Montreal, which I visit frequently, one can see on each visit the gradual decline in the economic importance of that beautiful and important city. One can see evidence of decline in its infrastructure, the growth of unemployment and the decline of employment opportunities. One can see evidence of the decline of business and the shift of growth and economic activity and opportunity outside of Montreal, particularly to Toronto, but also in some cases to other parts of Canada.
No doubt today we will be treated with arguments which are basically the following from the federalist side. I am a federalist. However, we shall hear from the Liberal side that the separatist movement is solely responsible for the decline in Montreal and for the economic uncertainty it faces and that the sovereignty movement has chased away any economic prosperity and activity.
I often point out to the people in western Canada that the separatists will say: "Look at what being part of the federation has done to Montreal over the past 30 years". I think there is a lot of insincerity on both sides of the debate. The separatists never want to use the word independence to describe their proposals for the province of Quebec, economic independence and economic separation from the rest of Canada, as the Minister of Intergovernmental Affairs has noted. Also some of the federalists in the province of Quebec today do not seem to want to say the word province to describe their view of Quebec's position in Canada. They want distinct society or whatever the latest buzzword is to get the separatist vote.
Both, in blaming each other, are right. There is an old quote by a political scientist which says that in a democratic system both major parties-speaking here of the province of Quebec-spend most of their time trying to prove that the other is incompetent and unworthy of government. Both succeed and both are usually right. That may apply in this case.
I am not terribly interested in taking sides on this other than if push came to shove I would certainly vote against this motion. We certainly do not see anything in the separatist proposals, either economic, constitutional or political, that would resolve any of the difficulties. Clearly they have worsened it.
Let me digress on some of the difficulties that Montreal faces and some of the reasons for its decline. I will make some reference to a paper that has recently been written by Professor John Richards of Simon Fraser University entitled "Language matters: ensuring that the sugar not dissolve in the coffee".
Professor Richards was at one time a social democrat or socialist. I think he still calls himself that but increasingly his friends in the New Democratic Party do not. He has been labelled a budding conservative, although that may be premature.
Professor Richards has asked me on numerous occasions to write something about the situation in Quebec and I promised him that and I have yet to deliver. I promised to review this paper he has written for the C.D. Howe Institute.
His argument is worth examination, and that is what I am doing, that the provinces generally, but Quebec specifically, should have enhanced jurisdiction over language as part of a solution to the national unity problem. That is perhaps in a different form part of the Reform Party's own proposals.
He does make reference on page 3 of his paper to the following:
-the Quebecois want provincial legislation to promote French and, to some extent, to limit the use of English.
Their Charte de la langue francaise (Charter of the French Language) most often still called Bill 101 although it was enacted in 1977, has done the job. It has strengthened the status of French as the working language in the province, preserved Montreal as a predominantly francophone metropolis, and confirmed that French remain the dominant language in the school system. Bill 101 has been controversial but necessary.
That is mentioning something in the very narrow context of language policy but I think more significant is what is not mentioned here. It is quite arguable that the success of Bill 101, of nationalist policies and nationalist language policies specifically, has not really been to strengthen French in Montreal but in fact to weaken English in Montreal, to be part of a massive exodus we have seen of English language people and allophones outside of the province of Quebec, taking with them much of the economic activity they have generated, both capital and labour.
The consequence has been a dilemma for all Quebecers, not just for separatists, in the attempt to make Montreal an entirely French city or to encourage Montreal as a French city as opposed to an English city or a bilingual city. It has meant the decline of Montreal as a national, international and particularly a continental centre. This is the great dilemma.
Those who want to preserve, protect and strengthen the role of Montreal as the francophone capital of Canada have no answer to the problem of how they will stop the decline of Montreal as a centre that has economic importance outside of the province of Quebec. This is certainly a dilemma for the separatist movement but is also a dilemma for nationalist movements that are nominally on the federalist side. If I have time I will make some mention of those later.
This is a dilemma. It is at the heart of the decline of Montreal as an economic centre.
This is not my own theory. I will give as an example an article written by William Coffey and Mario Polèse for the publication Recherches sociographiques . It is entitled ``The Decline of the Montreal Empire. An Overview of the Economic Situation in a Changing Metropolis''.
Here is an excerpt:
For the past three decades, the Montreal economy has taken a nosedive, resulting in the loss of hundreds of thousands of jobs. Cut off from its Canadian imperial economic hinterland, Montreal is reduced to being merely Quebec's metropolis.
This article is more optimistic than many others, even though it makes reference to the same problem I mentioned.
There is, however, no doubt that decline has happened, whatever one believes the cause of the decline is. Let me also be very specific about this by mentioning some facts which are reported in various publications that one can read on a monthly basis. Maclean's magazine indicates that during the 1980s the population in the Montreal region grew by a modest 9.6 per cent. Toronto expanded by 22.1 per cent. Vancouver grew by 25.2 per cent. The number of jobs in Montreal between 1971 and 1991 increased 60 per cent, but well behind Vancouver, Toronto, Ottawa, Edmonton and Calgary, all of which saw jobs grow by more than 100 per cent in the same period.
Let us look at some recent economic statistics. Here I quote the Toronto Star . The unemployment rate in Toronto in recent months is 2 to 3 percentage points below Montreal. Frankly, that is a fairly narrow gap compared to what we have seen in recent years.
Employment as a percentage of adult population was 5 per cent lower in Montreal. The percentage of the population below the poverty line in 1994 was 17 per cent in Toronto and 25 per cent in Montreal, the economic engine of Quebec.
Housing starts were up 9 per cent in Toronto and down 9 per cent in Montreal. Bankruptcies are double in Montreal what they were in Toronto. Consumer bankruptcies are about 25 per cent higher. There is slower growth in sales as the economy recovers.
These are all substantial and significant pieces of evidence of the relative weakness of the Montreal economy. Nobody should deny that, not the Liberals, not the separatists, not the federal government and not the provincial government.
There are always explanations offered by separatists who try to blame entirely the federalist side. Some of them are more far fetched than others. One is mentioned in an article.
It is an article which describes the sovereignist perspective on the economy of Quebec and Montreal. It says "the incompetence of Mr. Jean Chrétien is reason enough to worry investors", writes Mr. Roy in L'Action nationale . He also mentions several reasons in the sovereignist perspective, including the role of the air transportation sector and he compares Canadian Airlines and Air Canada. In his article about what might worry investors, Mr. Roy does not mention what we find time and time again in polls, that is that sovereignty, the next referendum and the separatist movement is what worries them.
He does mention the role of Air Canada versus Canadian Airlines. I give this as one of the more far fetched examples. The supposed favouritism of the federal government for Canadian Airlines, which is based in Calgary and Vancouver to a lesser extent, over Air Canada, which is based in Montreal and Toronto to a lesser extent, is given as a reason.
First I should mention that very few people at Canadian Airlines believe this and I know that for a fact. However, let us not forget the facts here. Whatever separatists or others want to pick at as a particular incident, the reality is that the existence of Air Canada as a corporation based in Montreal is entirely the consequence of the federal government having basically created and funded that corporation for decades and then by legislation placed its head office in the city of Montreal. There is no such parallel for Canadian Airlines.
Furthermore, I just have to mention these uncomfortable facts. For all the favouritism that supposedly generated, Air Canada is in
fact making money. Canadian Airlines has not turned a profit since 1988 and as we know is constantly under financial pressure.
There are other facts and there are certainly failings of the federal government and federalists. There is demonstrable and researched uncertainty, it has been said over and over again by the business community of Montreal, about the next referendum and the sovereignty movement.
There is as well the particular problem of the language wars and the language legislation. This summer the premier of Quebec, Mr. Bouchard, was personally involved and responsible for heating that up. We had some protests in Montreal about English language customers in English language areas of Montreal demanding from English language businesses service in English to be completely acceptable under the laws of the province of Quebec. Yet Mr. Bouchard jumped into the debate and with elements of the Parti Quebecois threatened to once again raise the issue of further language legislation and debate.
It is important to point out to people outside Quebec that this was contrary to the wishes of virtually all Quebecers. This was not just the anglophones but the vast majority of francophones, including most francophones who actually supported the sovereignty side in the referendum. This was once again the pet project of a particular element of the separatist movement. The federal government is not all to blame.
In this regard let me mention the tax burden in the province of Quebec. A major reason that people often live in Ottawa as opposed to the Outaouais is the tax burden at both levels of government. Let me mention some facts on this which are not arguable. These are not reasons for the economic performance of Montreal.
The combined federal-provincial top marginal tax rate in Quebec is 52.94 per cent which is the third highest in the country. Quebec payroll taxes are 4.26 per cent, the highest in the country. Non-financial corporation capital tax is 0.64 per cent, the highest in the country. Gasoline taxes are the highest in the country. Interest rates on provincial bonds demanded by the international investment community are the highest in the country.
In the time that remains let me mention in all fairness to the sovereignty movement some of the failures of the federalists and of the federal government because these are important. On the provincial level, let us not forget that the Liberal Party was supposedly a federalist party that governed Quebec for part of the period of this decline. It has often pushed the same kind of damaging nationalist policies that we see from the Parti Quebecois. It is the same type of financial mismanagement as we have seen from the federal Liberals in Ottawa over the past generations. Therefore that side is not blameless.
I might even point out that I have questioned many times even giving that party the title of a federalist party. The Quebec Liberal Party certainly wants Quebec to remain part of Canada but it also supports the idea that there is a unilateral right to separate. This would be six of one, and half a dozen of another.
Let us look specifically at the economic philosophy of the federal government. This federal government in the classic style of a centralist party that governs without vision and principle but only on the basis of power and patronage brags about the kind of largesse it can dispense to various Canadians. There is no shortage of its bragging about the kind of largesse it has often dispensed in the province of Quebec. This is well documented. I can point to studies by Professor Mansell at the University of Calgary in which I participated.
It is interesting to note the nature of these things: subsidies, unemployment insurance, equalization payments, social assistance in all forms. It is never what the Reform Party or others have proposed. It is never the idea that we should have a competitive economy, that we should lighten the tax burden, that we should make sure that economic opportunity is available to all Canadians, that we should lighten the load of the federal government, bring decentralization to the country. Unfortunately I am not going to have time to elaborate on these things.
What is generally interesting is that the parts of the country that have benefited from these Liberal programs, massive movements of money across the country, are the have not provinces. The question to really ask over time is, are they getting this money because they are have not provinces, or are they have not provinces because of these economic policies? Instead of exploiting their natural advantages and the dynamism that is possible in the resource base of those economies, they have been reduced to economies that operate on subsidy through the various regional development offices and through social assistance.
The Minister of Finance, a Quebecer, yesterday condemned the Reform Party saying its policies would deny welfare to single mothers. Perhaps its policies would offer a job to single mothers so they would not need welfare. That always escapes the Liberal Party in this kind of thinking.
In conclusion, I would like to move an amendment. I move:
That the amendment be amended by adding the following after the word "the", "separatist threat is hampering the".