Equalization Payments

Thursday February 28, 2002

    Mr. Bill Blaikie (Winnipeg--Transcona, NDP): Mr. Speaker, my question is for the Minister of Finance.

    I am sure the Minister of Finance would agree with me that the federal government should not act in a way that causes fiscal instability in the provinces. Recently announced changes to the equalization formula pose that very serious threat to a number of provinces. The province of Quebec, for instance, has expressed concerns.

    Is the Minister of Finance prepared to review the changes to that formula, given the serious impact it would have on some provinces, with a view to either changing them or ameliorating them in some way so that fiscal stability in the affected provinces can be maintained?

    Hon. Paul Martin (Minister of Finance, Lib.): Mr. Speaker, the hon. member has raised a number of very important questions.

    We have decided to ask the provinces to meet with us as to whether methodological changes when brought in should be brought in either in the middle or only at the end of the term. Statistics Canada has also said that important methodological changes will not be introduced unless there has been a full consultation with all of the provinces concerned.

    Under these particular circumstances it would appear that a full consultation was not held. Under those circumstances, we have decided to spread this out--

    An hon. member: Time.

    Hon. Paul Martin: This is important, Mr. Speaker, but I will answer in the supplementary.

    Mr. Bill Blaikie (Winnipeg--Transcona, NDP): Mr. Speaker, perhaps the minister could have answered were it not for the Tory yelling behind me.

    Perhaps the minister could finish answering the question but also speak to the problem Manitoba finds itself in. It also has to do with fiscal instability brought about by the accounting error on the part of the federal government.

    Will the Minister of Finance commit today to act in a way to ensure fiscal stability in Manitoba? Manitoba stands to be very seriously affected by an error of the federal government.

    Hon. Paul Martin (Minister of Finance, Lib.): Mr. Speaker, I will complete the first part of my answer. It is the government's intention in terms of the first question to suspend any negative consequences of Statistics Canada's result for a period of a year so full consultations can take place. At the same time we are going to implement the positive consequences of that for those provinces concerned until such time as the final decision comes down.

    As far as the other comment, the Tories are always behind the member.