That, in the opinion of the House, given that the Prime Minister has promised to eliminate the fiscal imbalance and that this imbalance cannot be eliminated without the elimination of the federal spending power in areas that fall under the jurisdiction of Quebec and the provinces, the bill on federal spending power that the government will introduce should, at a minimum, provide for Quebec to have the right to opt out with no strings attached and with full financial compensation from any federal program, whether existing or not and cost-shared or not, which invades Quebec's areas of jurisdiction.
She said: Mr. Speaker, the wording of this motion may seem complicated but the basic message is quite straightforward.
Is it normal for the federal government to spend in any area, without regard for the division of powers in Canada?
Is it normal for Quebec to be forced to accept federal priorities and requirements, even in those areas where it is supposed to be completely autonomous and sovereign?
Is it normal for Ottawa to collect 50% more taxes than needed to carry out its own responsibilities and for Canada to use this money to dictate to Quebec how to organize its own society?
Is it normal for Ottawa to take up so much space that the Quebec nation does not even have the capacity to tax in order to carry out projects that it chooses, simply because the glutton next door takes up the entire tax base?
Well, no, none of that is normal.
As Robert Bourassa said in 1970:
Quebec continues to believe that this federal spending power in areas that come under exclusive provincial jurisdiction ought quite simply not to exist, and the federal government would do well to quite simply renounce it totally.
Today's debate goes to the heart of a historic and longstanding dispute between Quebec and Canada. In 1867, English Canadians wanted a centralized Canada where the central government could dictate the priorities for the entire country—including Quebec—and in all areas. John A. Macdonald's speeches in this regard are eloquent.
Today we find the same discourse among those defending the federal government's spending power and its authority to set priorities in all areas. However, in 1867, Quebeckers did not wish to be controlled by the neighbouring country. They would never have accepted that Canada dictate how to organize their society, nor will they do so today. For that reason, the Constitution of 1867 provides for a distinct separation of powers and Ottawa does not have the right to legislate in Quebec's jurisdictions.
Like all nations, we have the right to control the development of our own society. Otherwise, Quebec would never have joined the Canadian federation. At that time, Quebec nationalists sincerely believed that they had obtained all of the autonomy that was needed for Quebec to be in charge of its own development.
In its editorial on July 1, 1867, the newspaper La Minerve wrote: “As a distinct and separate nationality, we form a state within a state, with full enjoyment of our rights and a formal recognition of our national independence.”
And yet the promise that was made to Quebec is constantly being broken. Ottawa cannot legislate in areas under Quebec’s jurisdiction? No matter, it will do it by the back door.
By occupying the tax field as it has done, Ottawa has acquired far too much financial latitude. And with money comes the power of money, let us not forget. And so, because the National Assembly of Quebec is the only body with the power to legislate in certain areas, Ottawa need only hire it, with the money from the fiscal imbalance, and it can then insinuate Canada’s priorities into Quebec.
Quebec’s legislative autonomy is just some minor problem that it can easily circumvent. It is simple, it is logical, it is even brilliant, when you think about it, but it is unacceptable. The Quebec nation will never agree to be relegated to the status of a subcontractor for the nation next door, never!
“I, for my part, have a great deal of difficulty in reconciling the values underlying the Canadian federation with the idea of a federal spending power that is in no way subject to the division of powers.” I am not the one who said that; it was Benoît Pelletier, the Quebec Minister for Canadian Intergovernmental Affairs, who said it on March 24, 2004. He is a true blue federalist, let us not forget.
What I am talking about is not some abstract idea, it is a question of dignity. Imagine a couple in which one spouse has a higher income than he or she needs to cover his or her share of the family responsibilities, and the other spouse does not have enough income to cover his or her share, even the essential needs. That is what the fiscal imbalance is. Imagine that the first spouse, being a fine fellow, says to the other: “Listen, it is not such a bad thing if your income is not enough for you to cover your responsibilities. I am going to transfer money to you. Of course, because it is my money, I am going to decide what you will do with it.” And that is what the transfers for health care, education and social programs are.
And as if that were not enough, imagine that the richer member of the couple decides to interfere directly in the other spouse’s affairs, to go to the store to buy that spouse’s clothes according to his or her own taste, to order directly for the other spouse at restaurants and go over that spouse’s head to speak on his or her behalf to the spouse’s friends. Ultimately, the less fortunate spouse has no decision-making power left, has no authority over his or her own life, because it is the other spouse who is using that spouse’s money to control him or her completely. That is what the spending power is.
It is transfers that reduce Quebec’s autonomy and multiple instances of federal interference in its affairs. It is its scholarships or research grants, or its inappropriate involvement in health care. It is transfers to families, whether in the form of the child tax credit or the Conservatives’ $1,200. It is the Mental Health Commission announced this fall.
The fiscal imbalance and the power to spend in areas under Quebec’s jurisdiction are two sides of the same coin; they prop each other up and they prevent the Quebec nation from controlling and organizing its own society based on its own needs and its own priorities.
So long as Ottawa has enough money to intrude into jurisdictions that are not its responsibility there is still a fiscal imbalance. When I hear Conservative members say that the fiscal imbalance has been resolved, I can only think that they do not understand it at all. If the controlling spouse I just mentioned decided to give his or her partner more money, would that mean that the imbalance in the couple’s incomes had been resolved? No. In fact, the spouse with more money would have even more power over the other spouse, while the spouse with less money would have even less decision-making ability over his or her own life.
In the last election, the said that the fiscal imbalance had to do with more than just money. I think he was right. He also said that the federal government’s excessive spending power had given rise to a paternalistic, domineering federalism. I agree with that too. Ultimately, the fiscal imbalance and the spending power are about power.
Will it be Quebeckers or Canadians who have the power to steer the way in which Quebec develops? That is what we are discussing today because we are giving the an opportunity right now to show that his words actually mean something, that open federalism is more than just an election slogan, and that his promises to Quebec are not just a fraud.
I am pretty skeptical though. It is obvious that the loves power and does not like to share it. He has picked fights since the election with all the checks and balances in society: journalists, judges and various organized groups—through the elimination of the court challenges program—the parliamentary committees, whose work he has tried to sabotage, and the Senate, which he has been criticizing.
This fall it is the representatives of the people whom he is trying to dragoon: either the hon. members agree with everything he says or else he will order the dissolution of the House.
This Prime Minister has picked fights with all the checks and balances. All of them. Within his own party, he exerts total control, reducing his members to silence and forbidding his ministers to spend anything on programs that his office has not approved.
Ever since he was elected, he has not shared a gram of his power with Quebec. He guards it jealously, including the most important power of them all: the spending power. We will see when the time comes for a vote whether open federalism is more than an empty slogan.
The spending power is more than just a symbolic issue. It hampers the development of Quebec. For example, as everyone knows, I used to head up the Fédération des femmes du Québec in the early 2000s. Twenty-four years ago, the Fédération des femmes du Québec asked that a real family policy be instituted with real parental leave. Five years later, the Government of Quebec bought into the idea but Ottawa had already intruded into this jurisdiction through employment insurance.
When Quebec asked the federal government to transfer money so that the province could set up a real parental insurance plan, Ottawa said no.
A few years later, Quebec took another stab at receiving approval for a socio-economic summit of all sectors of Quebec society. Ottawa again said no.
Then there was a unanimous resolution at the National Assembly. Ottawa again said no.
Quebec then went ahead and legislated its own parental insurance plan, which would come into effect as soon as Ottawa transferred the money. Ottawa again said no. There was consensus in Quebec in an area exclusively under its own jurisdiction, but the answer was no.
It took having a minority government in Ottawa being hounded by a strong group of Bloc Québécois MPs for Ottawa to finally say yes.
Anyone who wanted parental leave to have children in the early 1990s had to wait until their child finished university before seeing this program implemented. That is another aspect of spending power.
I could provide more examples of this ad nauseam. For 42 years now Quebec has been hoping for Ottawa to stay out of regional development and implement a real policy.
The same is true for culture or university research where Ottawa invests more than Quebec, and for the promotion of French, which has to compete with federal spending that would make Quebec bilingual.
Is it any wonder that a wave of cultural insecurity and identity crisis is currently going through Quebec? There is not a single area left where the people of Quebec can decide what is best without any interference from Canadians.
Three years ago, Canada controlled 18% of the Quebec government's budget. With the increases in transfers, Canada now has control over 22% of Quebec's budget. In three years, it will be 25%. And the fiscal imbalance is being corrected? No, it is getting worse.
This brings me to the Speech from the Throne. What did the Speech from the Throne say about the spending power? There are words, but they are devoid of meaning.
The government's commitment is limited only to new programs. It is already spending $55 billion in areas not under its jurisdiction. Ottawa is spending almost the equivalent of Quebec's entire budget in areas under the jurisdiction of Quebec and the provinces.
It says, “Just forget about all that, would you?” Well no, we will not forget about it.
As if this was not inane enough, the Speech from the Throne does not even limit the federal spending power in all new programs in Quebec's areas of jurisdiction. Instead, it deals only with new cost-shared programs.
There are no cost-shared programs left to speak of. There is the agricultural policy framework, but agriculture being a shared jurisdiction, the commitment made in the throne speech does not apply to that program.
There is also the infrastructure program, but Quebec has already obtained the right to choose projects. Since Quebec already has control over these, what will the Speech from the Throne change? Nothing.
Apart from that, there are no cost-shared programs left.
There are conditional transfers, but without any real cost sharing. In addition, there are instances of direct interference where costs are not shared. Had such a commitment been made in the 1940s, it would have been meaningful, Today, however, it comes three generations too late. This Speech from the Throne is empty, completely empty.
Last year, the House of Commons recognized the Quebec nation. It was about time. But what does Canada do now that it has recognized that we exist? That is what we are addressing today. Nation is a fine word. Recognizing a nation is like recognizing a person: there are rights that come with that recognition.
Like people, nations have fundamental rights, the most fundamental of which is the right for a nation to have control over the social, economic and cultural development of its society. That is called self-determination, a right that every nation may exercise from within or, if that is impossible, by achieving independence.
This is a fundamental and inalienable right because it answers a natural and irrepressible impulse. The Quebec nation exists. It has a culture, values, concerns, plans, aspirations and interests which are its own. It think there is agreement on this, since the House recognized it last year.
However you cannot, on the one hand, recognize that the Quebec nation has the right to make choices different from those of Canada, and on the other deny that right to Quebec by maintaining the federal spending power. That power is the negation of my nation.
I realize that today, as in 1867, Canadians want the central government to be able to set the directions and priorities for the entire country in all fields. After all, the provinces recognized Ottawa as having the role of leader on social development by signing—without Quebec, I would emphasize—the social union framework agreement. Somewhat like the night of the long knives, but in broad daylight.
I know very well that the chances are slim that Canadians will agree to put a total stop to federal spending in areas of provincial jurisdiction. That would be in keeping with the promise made to Quebec 140 years ago, but not in keeping with their vision of Canada.
It is for that reason that today’s motion proposes a compromise, in saying that Ottawa should, at a minimum, grant Quebec the full right to opt out from any federal spending in a field which invades provincial areas of jurisdiction. Canadians can continue to deny the spirit of the pact creating the federation as much as they want in their own particular province, but not in Quebec. All they are losing is the power to keep Quebec under their tutelage. Is it all that dramatic? In spite of everything, I know that we are clashing with the centralizing visions of the Liberal Party and the NDP. I know that we are clashing with the desire to keep his power for himself alone.
That is why I am now issuing an appeal to Quebec MPs from all parties. Today’s motion is consistent with what has been demanded by every Quebec government since Duplessis, on the left and the right, sovereignist as well as federalist. It is consistent with the unanimous resolutions adopted by the National Assembly of Quebec for decades, calling for the full right to opt out from every instance of federal interference.
Whether those hon. members here in this House be federalist or sovereignist, red, blue, yellow or green, native or adopted, it matters little to me: they are Quebeckers, and their first duty is to represent and defend the people who elected them to speak on their behalf. There is a consensus that, in Quebec, Quebec comes first.
Today I am asking these hon. members to move beyond partisan quarrelling. Taking action to put a stop to Canadian interference in the internal affairs of Quebec by use of the federal spending power can return the power to control the development of Quebec to Quebeckers, at least in part.
I can imagine what it is to be imprisoned in a pan-Canadian party where Quebeckers are a minority. I presume that their boss is counting on them to defend the interests of Canada in Quebec, rather than vice versa—
:
Mr. Speaker, welcome to the Bloc Québécois' grand parliamentary theatre.
The Bloc wants to talk about the powers of the federal government. They want to eliminate the fundamental powers long used by the Parliament of Canada. But which political party will never be in power? Which political party is unable to use any power except the power to block and criticize? The Bloc, of course.
The Bloc is the anti-power party or the party of powerlessness. The Bloc members dream of making the federal government as powerless as they are. They want the federal government to abdicate its responsibilities and to be happy with making empty statements or issuing phony ultimatums, just like they do. They want a government living in a make-believe and impossible world.
I want to say very clearly to the Bloc members that we will not follow them on this path. We will not eviscerate the Government of Canada just because the Bloc members are allergic to any federal collaboration with the province of Quebec. According to the terms of the motion put before us, the Bloc is saying that the bill on federal spending power that the government will introduce should, "at a minimum, provide for Quebec to have the right to opt out with no strings attached and with full financial compensation from any federal program, whether existing or not and cost-shared or not, which invades Quebec's areas of jurisdiction."
Because of its natural naivety, unless it is its innate anti-federalism, the Bloc seems to think that the federal government's power to launch new programs is in itself an evil, a kind of perverse conspiracy against Quebec. The reality is that, over the years and throughout our common history, the federal spending power has proven to be a major social development factor. It has enabled us to establish, in concert with provincial and territorial governments, nationwide social programs, such as medicare. It has also played a key role in promoting equal opportunities for all Canadians. Finally, it has helped ensure that our fellow Canadians have access to basic social programs and services that are of similar quality, regardless of where they may live.
The founders of our country had the foresight to build a flexible federal system, so as to accommodate diversity and equality right across the country.
[English]
As the said in this chamber in reply to the Speech from the Throne:
In fact, the federation of 1867 created one of the most solid political institutions in the world, unbroken by tyranny or conquest, unbroken by social disorder or economic chaos. And we mustn’t forget that Canada—a country born in French, a country with two languages and a multitude of cultures, which will soon be celebrating the 400th anniversary of the founding of its first capital, Québec—is one of the biggest success stories in history.
Of course, I do not argue that Canada is perfect, and so we are committed to reforming it for the better. Our government has worked hard to respect the federal division of powers, to strengthen long-neglected federal jurisdictions, and to work cooperatively with the provinces.
As the also stated:
In the next session, in accordance with our government practice, we will be introducing legislation to place formal limits on the use of federal spending power...in areas of provincial jurisdiction without provincial consent and to provide for opting out with compensation....
We will also act within the federal jurisdiction to strengthen Canada's economic union, which is a fundamental responsibility for the national government, one that it must take in the interests of all Canadians.
[Translation]
The sudden elimination of the federal spending power, as proposed by the Bloc Québécois, could have serious consequences for all Quebeckers and for other Canadians. Completely eliminating the federal spending power would also result in the elimination of federal health, education and equalization transfer payments, among others.
The Bloc Québécois is up to its eyeballs in contradictions. We have often seen it urging the federal government to pour more money in Quebec, for various projects. But today, it wants to eliminate federal transfers. To be a Bloc Québécois member must require a lot of flexibility, and even being able to do acrobatics. It is true, as I mentioned in this House last Monday, that the federal spending power, which is not mentioned anywhere in the Canadian Constitution, has been haunting federal-provincial relations for generations.
However, ever since we were elected, we have made it clear that we want to restrict the use of the federal spending power. As the said in Montreal, on June 20, 2006: “No proposal goes through our federal Cabinet unless we are assured it respects the division of powers between the federal and provincial governments”.
Open federalism means restricting the federal spending power which, as we know, was used so excessively by the federal Liberals.
In addition, the Speech from the Throne stated that “Our government believes that the constitutional jurisdiction of every level of government must be respected”.
I should also point out that respecting the constitutional jurisdictions of each order of government has been a fundamental principle of the Conservative Party since its creation. This is why, guided by our vision of open federalism, our government will introduce a bill, as the said, to place formal limits on the use of the federal spending power for new shared-cost programs in areas of exclusive provincial jurisdiction. This legislation will allow provinces and territories to opt out with reasonable compensation if they offer programs compatible with the national objectives.
Our will to restrict the spending power is the direct result of a concern that has been strongly expressed by all Quebec governments from Duplessis to Lévesque to Charest. The leader of the Bloc Québécois himself recently asked whether the rumours are true and the federal government will take action to limit the federal spending power in Quebec's areas of jurisdiction. The answer is yes, but, true to form, the leader of the Bloc Québécois has changed his mind. Now, he does not want to limit the federal spending power as his party has been calling for since 1990; he wants to dispense with limits altogether.
As I said on Monday, the root cause of the problem, of this abuse of the federal spending power, will always be the fiscal imbalance. In other words, if the federal government did not have disproportionate revenues compared to those of the provinces, it would probably be less inclined and, more importantly, less able to get involved in areas other than exclusive federal jurisdictions. This is precisely why we wanted to restore fiscal balance within the federation, as early as in the 2006 budget.
We in the Conservative Party provided $26 billion in tax relief, and then we reiterated our support to long term and predictable funding for health care. We also made new, major investments in infrastructure. Moreover, we provided funding, to the tune of $3.3 billion, to the provinces and territories to alleviate short term pressures in the post-secondary education, affordable housing and public transit sectors. We also put in place measures to increase the federal government's fiscal accountability and budgetary transparency and we clarified the governments' roles and responsibilities by targeting spending in areas that clearly come under federal jurisdiction, such as defence and security.
Budget 2007 also included a renewed and strengthened equalization program, a renewed and strengthened territorial formula financing program, a new approach to long-term funding support for post-secondary education, a new approach to long-term funding support for training, a new long-term plan for infrastructure, and a new approach to allocating unplanned federal surpluses.
I think it is appropriate to point out that before a major problem can be resolved, it has to be acknowledged. The previous government thought otherwise. It denied that there was any fiscal imbalance in this country.
The Bloc has shown, as it has done countless times before, that it can raise major issues but cannot do a whole lot about them. Once again, the Liberals did not want to and the Bloc could not. Our government has honoured its commitments, and we have acted.
We are very pleased that provincial governments, especially the Government of Quebec, have welcomed the measures we have taken to ensure fiscal balance. However, I should point out that this initiative was not a unilateral concession to the Government of Quebec. It was not a political favour. We wanted to ensure fiscal balance and limit federal spending power because we believe that this will improve the federal system.
We all know why Quebec's governments—of all political stripes—have always been more concerned about fiscal imbalance and federal spending power than other provincial governments. It is because, since Confederation, Quebec's governments have been responsible for protecting and developing a society with unique historical, cultural and social characteristics within this country.
Recognizing the distinct nature of Quebec society has repeatedly created difficulties during recent and not-so-recent federal-provincial negotiations. At the Prime Minister's urging, Canada's Parliament recently made a historic decision to recognize that Quebeckers form a nation within a united Canada. To my mind, that is the crowning glory of our policy of open federalism toward Quebec. That being said, clear recognition of Quebec's uniqueness must not result in abdication of our responsibilities to the entire Canadian federation. Indeed, we want to reinforce Canada's economic union by clarifying everyone's roles and responsibilities.
The motion introduced by the Bloc Québécois shows a deep lack of understanding by these party members not only of Canadian reality, but also of Quebec's history. For the last 140 years, the Canadian Confederation has served Canadians well when the government properly understood and applied the spirit of the Fathers of Confederation.
Each generation of Quebeckers has taken part in the advancement of our political system to make it increasingly efficient and equitable. There is absolutely no doubt in my mind that, by practising open federalism, together we can build a better Canada.
That is why I am asking all members of this House who are proud of our country's history and who believe in its future to reject the ill-advised motion of the Bloc Québécois. By voting against this motion, we vote against giving up and against sabotaging our institutions. We vote against those who want to block Quebeckers' future within the country that they created and developed. In so doing, we express our pride in our past as well as our trust in the future.
:
Mr. Speaker, first let me say that I will be splitting my time with the member for .
I am very pleased to address the House today as the Liberal Party’s official critic for intergovernmental affairs, a position that my leader assigned to me a few weeks ago. I am glad that the member for has raised a subject as important as the federal spending power in this House.
I listened attentively to the speech by our colleague the . I do not agree with a number of things he said regarding the success of his government, for example, with the alleged fiscal imbalance. I did agree with him on one thing, when he described the reasons why, in his view, the Bloc Québécois put forward this motion in the House today: that it is pointless to discuss a question as important as the fiscal imbalance when the discussion is led by a party that does not believe in Canada and whose objective is to separate Quebec from Canada.
It must be acknowledged, from the outset of our discussion, that the federal spending power is constitutional. It is a power of the federal government, of this Parliament, that the Supreme Court of Canada has assigned to the national government on several occasions. To us in the Liberal Party, it is an essential tool in the development and socio-economic progress of this country. Unfortunately, the Bloc Québécois sees the federal spending power as a conspiracy to invade areas that are under the jurisdiction of the provinces and to interfere in Quebec.
We do not see it that way. The federal spending power can be exercised responsibly, in partnership with the provinces. I would remind the member of the perfect example, in our opinion: the Liberal plan of the former Martin government regarding child care and early childhood education. The former Liberal government—Mr. Speaker, you corrected me by signalling me not to use the name of our former Prime Minister who still sits as a member, and I apologize—used the federal spending power precisely as part of a partnership to promote a very important social policy relating to children, early childhood education and excellent public day care everywhere in Canada.
[English]
For us, the federal spending power is an important instrument of social progress. It is something the Supreme Court has recognized as constitutional on a number of occasions but its use needs to be reasonable and responsible and in partnership with the provinces.
[Translation]
This needs to be pointed out: the Bloc Québécois has no interest in promoting a partnership between the federal government and the province of Quebec. As I said, and as the clearly explained, it is in the interest of the Bloc Québécois to make it plain that Canada cannot be a positive and responsible partner in the social progress of Quebec society.
I must also remind the House that our leader, the , made enormous progress on limiting and circumscribing the federal spending power when he was Minister of Intergovernmental Affairs under a previous government.
In the Social Union Framework Agreement, the former Liberal government, with the provinces’ agreement, found a way for the federal government to be able to exercise its federal spending power, but in a responsible and constitutional manner. It is a way that in fact allowed for action to be taken in respect of social programs as important as the former early childhood education and day care program, a program that was in fact eliminated by the present government.
In our view, when the Liberal government signed the Social Union Framework Agreement with the provinces in 1999, the aim was to clarify federal, provincial and territorial jurisdictions in relation to, for example, health care, social services, higher education, social assistance and training.
These are perfect examples where the federal spending power can be used responsibly, in partnership with provincial governments, to share the costs of these social programs that are so important for the country, such as medicare.
As I mentioned, this initiative was spearheaded by our leader when he was the intergovernmental affairs minister. It was the result of a willingness to limit the federal spending power in areas of provincial jurisdiction, but also a desire to ensure adequate, stable and viable funding for these social measures and to avoid duplication, to increase transparency and accountability and to deal with issues that may arise between governments.
[English]
I represent in the House a constituency in the province of New Brunswick. For our province and for Atlantic Canada, the federal spending power is an essential instrument of social and economic progress and, yes, sometimes in areas that the Constitution confines to provincial governments, this power can be used in partnership with the provinces to advance social policy and economic policy across the country.
The new Liberal Government of New Brunswick has a very ambitious program for self-sufficiency. Premier Graham and his government have outlined a number of initiatives that they plan on taking to make New Brunswick a have province, to make New Brunswick less dependent on the federal government and to make New Brunswick self-sufficient.
I think all members would agree that this is a very laudable and very worthy objective. However, if the Bloc Québécois were to have its way and the federal government could never spend money, even in partnership and in cooperation with provincial governments in areas of provincial responsibility, then the very ambitious higher education agenda that the province of New Brunswick has set for itself would not be possible because the province is asking the Government of Canada to be its partner, to use that federal spending power in a way that advances the common interests of the Government of Canada, the people of Canada and the people of my province of New Brunswick.
Our view is that the federal spending power need not be further limited than that done by the social union framework agreement negotiated by our leader when he was minister of intergovernmental affairs. It was a very historic moment when the Government of Canada accepted that the federal spending power in areas of provincial jurisdiction needed to be used in partnership with provinces on agreed upon objectives and not simply, as the Bloc would want people to imagine, as a way to intimidate or push provincial governments into doing things that they would not otherwise want to do.
Our country has many great social innovations, whether it is public health care, employment insurance, a federal role in the protection of economic security of elderly people, the Canada pension plan, old age pensions or minority language education.
[Translation]
I come from a province where education of francophone minorities is essential, and the federal government has an important role to play in this. For example, it has to ensure the survival of institutions that are important to us, such as the University of Moncton. We believe that, by trying to limit this power, the Bloc Québécois is acting irresponsibly. It sees no point in having a federal government that works actively, in partnership with the provinces, toward social progress.
This is why we oppose this motion by the Bloc. Indeed, the Liberal Party intends to vote against the motion of the member for . We believe that the federal government has a crucial role to play in the social progress and the economic development of our country. We see no contradiction between this role, the respect of provincial jurisdiction and the good partnership between national and provincial governments, including the Quebec government.
:
Mr. Speaker, I am very happy to take part in this debate on the motion introduced today by the Bloc Québécois.
I am sure that this has already been done, but I would like to read the motion.
That, in the opinion of the House, given that the Prime Minister has promised to eliminate the fiscal imbalance and that this imbalance cannot be eliminated without the elimination of the federal spending power in areas that fall under the jurisdiction of Quebec and the provinces, the bill on federal spending power that the government will introduce should, at a minimum, provide for Quebec to have the right to opt out with no strings attached and with full financial compensation from any federal program, whether existing or not and cost-shared or not, which invades Quebec's areas of jurisdiction.
As my colleague from said earlier, the Liberals and, I believe, most Canadians, including the people of Quebec, will never be able to agree to eliminate federal spending power. Limiting or regulating federal spending power is quite another matter.
I believe that the work the former Liberal government did to negotiate with all the provinces, including Quebec, and the three territories in order to reach an agreement on how the federal government could spend in areas of shared or provincial jurisdiction—the social union agreement—is an excellent example of how Canadians saw a government tackle this issue so that when it comes to social programs, people across Canada will be entitled to equivalent services, no matter what province or territory they live in.
The social union framework agreement went a long way toward strengthening the national social measures that matter to all Canadians, including Quebeckers. I am thinking of measures such as health insurance. It was also vital in promoting equal services for all Canadians, no matter where they live.
Recently, this framework agreement was crucial to the successful negotiation of agreements on early learning and child care with the provinces and territories, agreements that the current Conservative government threw out. The Conservatives discarded these agreements, depriving millions of children and families of billions of dollars.
The Liberals will not allow the current to create a compartmentalized federalism or to sit back idly and give Quebec separatists any ammunition. I heard a member of the Bloc Québécois say there is a strong consensus in Quebec on, first of all, the fiscal imbalance and, second, on the complete elimination of the federal spending power. This is interesting, because the consensus, which was reached in the National Assembly, was based on the Séguin report. Mr. Séguin is a prominent economist, well known in Quebec and throughout Canada. It would be interesting to see what the Séguin commission reported and concluded in its report as a result of the consultations held throughout Quebec regarding the fiscal imbalance.
It is interesting to note what the Séguin commission proposed to correct what it identified as the provincial fiscal imbalance—it made no reference to the federal side, even though Canada's national debt is far greater than the combined debt of all the provinces and territories. Indeed, the federal government's revenue is much lower than the combined revenue of all the provincial and territorial governments. Yet, that is a separate issue. I have no desire to debate the issue of whether or not there is a provincial fiscal imbalance.
The Séguin commission concluded that the solution to the fiscal imbalance lies in transferring tax points. It also proposed some other possible solutions, such as transferring the value added tax, commonly known as the GST, from the federal government to the provinces.
I would like to quote an excerpt from page xii of the Séguin commission's March 2002 report.
The Commission expresses its preference for an occupation of the GST field by the provinces. In light of the financial objective adopted, the federal government should entirely relinquish the GST in favour of the provinces. However, the Commission does not wish to reject the scenario calling for a new division of the personal income tax field.
Of course, the fact that the federal Conservative government has already reduced the GST by 1% without the Quebec government raising its own sales tax, the QST, to take advantage of the tax room thus created, and to reduce the so-called fiscal imbalance, undermines the Bloc's argument.
Again, the Quebec government had the opportunity to use the tax room created by the federal Conservative government when it reduced the GST by 1%. If it had really believed that a fiscal imbalance existed, the Quebec government could have increased the QST immediately in order to occupy the tax room that had been created. But it did not do that. It is interesting to note that the Bloc never mentions this fact. It does not mention that the Séguin commission said that it preferred that the GST be used as a tax field to deal with the so-called fiscal imbalance. But the Bloc never makes mention of this.
We must look at what sources of revenue are available to the provinces. As I already mentioned, there is the tax on the sale of goods and services. In Quebec, this is the QST. But there is also the personal income tax. This is the tax that people pay as a percentage of their income, which may include their salary, pension, investments and property income.
The federal government has access to the same sources of financing or revenue. However, the provinces have other sources not available to the federal government, such as lotteries, royalties on natural resources, and taxes on the sale of alcoholic beverages.
The federal government does not have access to any of these fields of taxation. In my opinion, the provinces are in control of their destiny and can use these tax fields as they please, in order to provide their citizens with the services that they are entitled to, under the sharing of jurisdictions provided by the Constitution.
I thank hon. members for listening to my remarks.
:
Mr. Speaker, I am pleased to rise today to speak to the Bloc motion presented by the hon. member for .
The use of the federal spending power is an important issue. Many Canadians recall the debates on that spending power around the time of the Meech Lake accord, the Charlottetown accord and the negotiation of the social union framework agreement in 1999, all trying to try to reach a consensus on this issue. This is not a new issue.
This is a debate we will continue to have. In the Speech from the Throne, the government promised to introduce bills on the spending power during this session. The New Democratic Party is pleased with this debate. We want to explain our vision of a cooperative and asymmetrical federalism in the framework of this debate. We also want to hear from the provincial governments, including the Government of Quebec, which absolutely must be heard on this issue.
Today, however, we do not have any legislative measures to debate and the provincial governments have not been consulted. Today, all we have is a Bloc motion. We have to wonder why. Why is the Bloc presenting this motion today?
We are starting to see certain trends among Quebec sovereignists here in Ottawa and in Quebec. Their popularity is going down in the polls. They have put the possibility of another referendum on ice, but they are trying to stir up disputes. They introduced an unfortunate bill on Quebec citizenship. They are picking a fight with minority groups. These are not actions to bring people together. These are actions to pit people against one another.
I cannot help but think that this motion serves that same purpose. It does not seem to be a serious attempt to find common ground. It appears to be designed to divide the members of this House of Commons.
Should we be surprised to see that their motives are questionable? Of course not. We know that the “best before” date on the Bloc expired a long time ago.
Can we rely on their so-called attempt to revive Canadian federalism, when their stated and resolute goal is to separate Quebec from Canada? I do not think so. They do not want Canada to work better. In fact, they do not want Canada to work at all. As André Pratte, a columnist for La Presse said, “When it comes to analyzing the development of Canadian federalism, the PQ and the Bloc have zero credibility”.
That is why we cannot support the Bloc motion.
I am a man of hope, though, and the NDP is a party of hope. The day when the Bloc clearly states it wants to work together with the rest of Canada, it will be possible to see something other than trickery in their proposals. The lobster fishing season is over.
The NDP is very much looking forward to the debate on the legislation that the government promised to introduce on the spending power.
The NDP has long supported the autonomy of Quebec and Quebec’s distinct identity within Canada. And I mean “within Canada”. We feel that Canada is better off with a strong Quebec and Quebec should have all the tools it needs to continue to prosper within Canada.
The NDP's policy on a cooperative, asymmetrical federalism that recognizes the distinct nature of Quebec was adopted decades ago.
We see this as a matter of principle and practical applicability.
The NDP has always comported itself in ways that respect the areas of jurisdiction, while focusing on results. These are not just empty words for we have always added substance to what we say. Here are a few examples.
In 2005, the NDP had an opportunity to rewrite the budget. We took $4.6 billion that the Liberals wanted to spend on tax cuts for big corporations and made sure that it was invested in the priorities of Canadians, including public transit and reduced tuition. We were careful to address the concerns of the provinces by negotiating how this money would be used.
In this Parliament, my friend from sponsored a bill on early childhood education. So far, it has enjoyed broad support in the House. It explicitly recognizes the special circumstances obtaining in Quebec when it comes to daycare programs and allows Quebec to opt out.
These are examples of cooperative federalism, a practical federalism that gets real results for the families of today. We hope this is the kind of federalism that all parties in the House can support.
This brings me to the government’s plans for the spending power. What are these plans? We do not know. They have not provided any details yet on their proposal in the throne speech. Would it be like the social union framework agreement? That would be a good start, but as the hon. members of this House know, the Government of Quebec has not agreed to it yet. So what are they planning? We will see.
Once again quoting the columnist André Pratte, I would say that “the wording of the commitment made by the Harper government still allows for different interpretations”.
:
Mr. Speaker, I will be sharing my time with the member for , our finance critic, who will be dealing with matters more technical.
I would like my NDP colleague to understand why the Bloc is making this motion. The Conservatives' throne speech refers to limiting Quebec's and the provinces' spending power. There is absolutely no mention of limiting federal spending power. The aim is to take from the provinces the political autonomy they need to set up the programs chosen by their people and by their national assembly, in the case of Quebec. If the other provinces do not want this and wish to remain under the watchful eye of the federal government, big brother in Ottawa, so be it. This is why we refer in our motion to the right to opt out unconditionally with full compensation for Quebec. If the others want to remain under federal control, that is their business. We want to come out from under it. We found nothing like this in the Conservative government's throne speech. For years and years, governments in Quebec, both federalist and sovereignist, have tried to break free of the yoke of federal spending, a yoke with no constitutional basis. Limiting federal spending would amount to an acknowledgement of the federal government's right to spend in areas under the exclusive jurisdiction of the provinces and Quebec. This is not even to be found in the Constitution of 1867 and would be a step backwards from it. We want to eliminate this power, which has no constitutional basis.
We do not have to wait two or three weeks to see the bill. We know what it will contain. It will be exactly the same as what all the other federal governments have done throughout Canada's confederation—find ways to diminish Quebec, prevent it from growing as it wishes by setting conditions. They still talk of Quebec's areas of jurisdiction. So long as we remain within confederation, we will not prevent the federal government from spending in its areas of jurisdiction. Let it do so. If it limited itself to these areas, it would not have its present surpluses. Its power to tax would be significantly reduced.
Over the years, the federal government has had more than ample funds to spend in its own areas of jurisdiction. It has so much money that it has used it to invest in provincial jurisdictions with the approval of the Canadian provinces other than Quebec, within Quebec's jurisdiction, even going at times against the aims of the Government of Quebec and the National Assembly and the consensus of the people of Quebec. There is no question of limiting federal spending power. As I have said, there is no constitutional basis for it. Why limit something that has no basis? We want it eliminated—pure and simple.
But we have understood. The comments of my colleague from the NDP were pretty clear: the rest of Canada wants the federal government to be involved in areas of provincial jurisdiction, with all the risks this entails.
Let us look at the example of social housing. In the 1950s and 1960s, the federal government barged in and started funding social housing programs. Most notably, low-cost housing was built. At some point, the government unilaterally pulled out. What happened then? The provinces are stuck with renovating housing at their own expense—particularly Quebec, since its needs in this area were very high—but social housing is underfunded, even though the need is there. If the tax base had been shared, taking jurisdictions into account, Quebec's own tax field should be much larger, enabling Quebec to assume all its responsibilities within its jurisdictions, such as education, health, culture, environment or agriculture. That is the real solution to the fiscal imbalance.
A look at the Speech from the Throne reveals that it is all smoke and mirrors. There is absolutely nothing in the speech about limiting anything. To quote what the Governor General said, “—our Government will introduce legislation to place formal limits on the use of the federal spending power for new shared-cost programs—”. So, anything that was done before does not count. Bloc Québécois researchers spent days trying to figure out what the shared-cost programs were.
Basically, they found two: the infrastructure program and the agriculture policy framework. For the rest, all the funding involves transfers in fields that fall under the jurisdiction of the provinces and of Quebec, transfers that could easily have been made by a transfer of income tax points, period.
There are practically no shared-cost programs. We have been calling for one for many months. I refer to a support program for older workers that would be funded in part from the employment insurance fund, which, unfortunately, has been under federal jurisdiction since 1942. I always say that Adélard Godbout would roll over in his grave if he knew that he had agreed to a constitutional amendment that permitted the federal government to take control of employment insurance. There are no, or practically no, shared-cost programs.
In La Presse on Saturday, October 20, Alain Noël wrote:
The [Prime Minister’s] proposal on the federal spending power, is a bit like Ottawa offering to allow the provinces full control over the manufacture of black and white television sets.
Those are things that do not exist any more, and they would like us to believe that this would be a solution to the demand Quebec has been making year after year, for at least the last 40 years.
Again, reading from the Speech from the Throne, “This legislation will allow provinces and territories to opt out with reasonable compensation.” It does not even say full compensation. That makes no sense but that is what is written. Words are supposed to mean something, at any rate, the Bloc Québécois believes so.
“This legislation will allow provinces and territories to opt out with reasonable compensation if they offer compatible programs.” Compatible means similar. You can have any colour of car, so long as the colour is black. That is exactly what the Speech from the Throne says to us, and that is not the position supported by Quebec.
I read in a book that was published at the time the social union agreement was signed, and which quite properly is entitled, The Canadian social union without Quebec, an article by Claude Ryan where he reviewed the position of different Quebec governments over the years; it was always the same: the right to opt out with full compensation and without conditions, whenever the federal government brings forward initiatives, whether it is in a shared or exclusive jurisdiction, whether shared cost or not, when it is a federal initiative in Quebec’s field of jurisdiction.
It is easy to see why: that is how it is trying to build the Canadian nation. I respect that, but that is not how we in Quebec want our nation to be built by our state, the Quebec state.
We are talking about the right to opt out with no strings attached, and it is absolutely non-negotiable. The Bloc Québécois will continue to fight for the position traditionally held by Quebec's successive governments. Whether federalist or sovereignist, this policy has always been the same.
I would like to go back to the Prime Minister's promise to Quebec to eliminate the fiscal imbalance. What does eliminating the fiscal imbalance mean? It means eliminating the federal spending power in areas that fall under Quebec's exclusive jurisdiction. Here is what the Prime Minister said when he made that promise on December 19, 2005:
As I have said before, even after the new government came to power, my party and I oppose the federal spending power in areas of provincial jurisdiction.
Could it be any clearer than that?
The Prime Minister did not say “monitor”. He said “eliminate”. He also said this:
I think that this kind of spending power in areas of exclusive provincial jurisdiction is contrary to the very spirit of federalism. Our government has made it clear that we do not intend to act that way.
Nevertheless, that is exactly what the government has done, just like every other federalist government in Ottawa, because as you know, there have only ever been federalist governments here, and there will only ever be federalist, centralist governments here. They might look different on the outside, but inside, they are all the same. In this case, the Prime Minister promised to correct the fiscal imbalance and to eliminate the federal spending power. He broke his promise. Quebeckers need to know that, and they should speak out against it during the next election by voting for the only party that is capable of standing up for Quebec in this House: the Bloc Québécois, whose members I congratulate.