Friday, March 18, 1994

VOLUME 133 NUMBER 040 1st SESSION 35th PARLIAMENT OFFICIAL REPORT (HANSARD) Friday, March 18, 1994 Speaker: The Honourable Gilbert Parent HOUSE OF COMMONS Friday, March 18, 1994 The House met at 10 a.m. Our ultimate goal is to eliminate the deficit. Our interim target is to reduce it to 3 per cent of GDP by 1996–97. The _______________ budget puts us on a course to meet that target. We will reduce the deficit to $39.7 billion in the coming fiscal year, to $32.7 billion Prayers in 1995–96, and, with only a moderate growth, to $25 billion in _______________ 1996–97. Our financial requirements are lower: $30.2 billion in 1994–95 and $22.7 billion in 1995–96. Let me be very clear. No future action is required for us to GOVERNMENT ORDERS meet our three–year deficit target. This will happen as a direct result of the actions contained in the 1994 budget in and of [English] themselves. BORROWING AUTHORITY ACT, 1994–95 To achieve this we have proposed the most substantial saving reductions by a government in the last 10 years. Debt expendi- The House proceeded to the consideration of Bill C–14, an act ture cuts will total $17 billion over the next three years. Over to provide borrowing authority for the fiscal year beginning on that period there are $5 in spending cuts for every $1 in new April 1, 1994, as reported (without amendment) from the revenue. committee. Some people have expressed disappointment that the deficit Hon. Marcel Massé (for the Minister of Finance) moved for the first year is not lower. The government shares that that the bill be concurred in. disappointment. However the reasons for this are quite straight- (Motion agreed to.) forward. Mr. Massé (for the Minister of Finance) moved that the bill First, there is a lag time before the full effects of spending be read the third time and passed. cuts show up in the nation’s books, for example with unemploy- ment insurance a change in legislation is required. (1005 ) Second, we have carried through on all of our election Mr. David Walker (Parliamentary Secretary to Minister of commitments including a major national infrastructure pro- Finance): Mr. Speaker, I welcome the opportunity to speak on gram, and they are paid for up front. third reading of Bill C–14, the borrowing authority bill. There is a third reason the deficit is not lower for the first year. The bill has been approved by the House finance committee We have scrapped many of the practices of the past. In previous and it is vitally important that the House proceed with it as years, governments would set targets based on rosy economic quickly as possible. Without borrowing authority in the new projections. Our budget is based on very prudent assumptions. fiscal year severe constraints will be placed on the government’s financial program, constraints that could prove costly to the [Translation] government and to Canadian taxpayers. The federal government First, there is a lag time before the full effects of spending would be restricted to short term funds. This would expose the cuts show up in the nation’s books; for example, with unemploy- government to an additional rate risk and could disrupt the ment insurance where a change in legislation is required. capital market, potentially resulting in higher debt and servicing charges. Second, we have carried through on all of our election commitments, including a major national infrastructure pro- We do not put forward this request for borrowing authority gram, and they are paid up front. lightly. We know there are real costs involved in adding to the country’s debt burden. The amount of borrowing authority There is a third reason why the deficit is not lower for the first requested in the bill is directly connected to the financial year. We have scrapped many of the practices of the past. In requirements set out in the 1994 budget. The budget takes previous years, governments would set targets based on rosy concrete responsible action to bring the nation’s finances under economic projections. Our budget is based on very prudent control. assumptions. 2471 COMMONS DEBATES March 18, 1994 Government Orders [English] for slashing their own departmental budgets. And to top it all off, the minister even congratulated himself. I have never seen Moreover the budget provides full accounting for all new so much flattery before, all designed to mask a flood of useless, program costs. Nothing is hidden. We have built in substantial futile words. reserves so that we can respond to unforeseen contingencies without altering our fiscal targets. A number of my colleagues in the Bloc Quebecois have denounced this budget, and rightly so. I too would like to join Finally, we have not offloaded the federal deficit on to with them in saying that there is nothing in this budget to give Canada’s provinces. We firmly believe that the two levels of some hope back to the least fortunate members of our society. government must approach their respective challenges through This budget was devised by sons of darkness, whose father is co–operation. none other than the Prime Minister himself. Now let me return to Bill C–14. Like borrowing bills in A son of darkness is someone who always thinks in terms of previous years the bill contains three basic elements. I would his party and his career. Many of my colleagues here in this like to touch briefly on each one of these elements. House hail from rural areas. There are some young Turks on the other side of the House who, outside the chamber, have said: You First, the bill provides for $30.2 billion of authority to cover are right, but we are only starting out in our career and we want anticipated borrowing requirements to meet the net financial to move up. Sometimes, we have to keep quiet. Some other requirements set out in the budget. members who have been around longer and who are more adept at expressing themselves say this: Why not protect our career Second, there is provision in the bill to cover $1.1 billion of and maybe some day get appointed to the Senate. exchange fund account earnings. These earnings give rise to additional borrowing requirements because these earnings, al- A son of darkness is someone who never admits his mistakes. though reported as budgetary revenues, are retained in the It was announced here in this House that the military college in exchange fund account. They are not available to finance Saint–Jean, a francophone college, will be closed. Everyone ongoing government expenditures. concedes that the government is making a monumental mistake, but the government is not willing to admit it. (1010) A son of darkness is someone who protects the wealthy, Third, there is a $3 billion borrowing reserve, the same family trusts and large corporations, someone who never gives amount requested in borrowing bills in the last six years. This any real answers here in this House. The answer is always reserve provides for unforeseen contingencies such as foreign maybe, or perhaps, but never anything specific. exchange transactions, seasonal swings and borrowing requirements, and delays in passing the future year borrowing authority (1015) legislation. The bill also contains a provision for an additional borrowing A son of darkness is someone who accepts a double standard. authority of $3 billion to provide for borrowing conducted in the The poor are asked to tighten their belts, while a minister can fiscal year under section 47 of the Financial Administration Act. take off and spend $160,000 on a trip. In summary borrowing authority is a normal part of govern- A son of darkness is someone who exploits the poorest among ment operations and the bill contains no unusual provisions. All us and surrounds himself with wealthy friends during election the information needed to deal with it is before the House in the campaigns. He has no problem with spending $1,000 or $3,000 budget, the main estimates and related documents. on meals with his friends. He is also someone who is prepared to bleed our senior citizens dry, to tax their income above $24,000 I therefore urge the House to proceed today with the legisla- or $25,0000. He is someone who does not put any value on tion so that the government’s regular borrowing program can workers and who makes life hell for the unemployed. proceed as the fiscal year begins and the risk of hard debt servicing charges can be avoided. I do not have any examples to give you, but I have toured my riding several times and workers as well as the unemployed [Translation] understand what I am saying. A son of darkness is someone for whom the end justifies the means. Mr. René Canuel (Matapédia—Matane): Mr. Speaker, since the budget was brought down in this House, I have The Minister of Foreign Affairs says one thing in the House, witnessed a great deal of praise being heaped on members on the and something quite different outside the chamber. A son of other side of the House. First, the Prime Minister praised his darkness is someone who does not care about the people. We Minister of Finance as if he held the keys to eternal truth. The have had some very sincere federalists in Quebec. There was other ministers also showered him with praise and thanked him Jean Lesage who coined the expression ‘‘masters in our own 2472 March 18, 1994 COMMONS DEBATES Government Orders house’’.

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