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"ZERO DEFICIT: OUR COMMON OBJECTIVE":
MINISTER DION HIGHLIGHTS THE LINK BETWEEN
PUBLIC FINANCES AND CANADIAN UNITY
SAINTE-THÉRÈSE, QUEBEC, May 20, 1998 – The Honourable Stéphane Dion,
President of the Privy Council and Minister of Intergovernmental Affairs, told
the Chambre de commerce de Thérèse-De Blainville today that Canadians will
have greater success achieving a balanced budget if they stay together to take
on this challenge.
The Minister first noted that the Canadian government and a number of provinces
have now put their public finances in order. "Cutting the deficit was done
by both orders of government. The federal government's deficit has been
eliminated, while five provinces have succeeded in balancing their budget or
achieving a surplus, three have only a small deficit, Ontario is proceeding with
tax cuts, and Quebec is continuing on its path to a zero deficit. In 1993-1994,
all ten provinces were in the red."
Mr. Dion sees this financial success and the resulting lower interest rates as
one of the causes of Canada's economic growth since 1994. Between 1994 and 1997,
he noted, Canada's GDP grew by 2.9% a year on average, the strongest performance
of the G-7. The unemployment rate dropped from 11.4% in September 1993 to 8.4%
in April 1998. And the OECD forecasts that Canada will have the strongest
economic growth of G-7 countries for 1998 and 1999.
Like all Canadians, Quebecers are regaining confidence in Canada, Minister Dion
stated. Quebec can capitalize on belonging to a country with remarkable assets.
"An independent Quebec would not have the same potential," he
remarked. "Oh sure, it would be "viable". But we Quebecers, like
other Canadians, have great ambitions for our quality of life. We too aspire to
nothing less than the best of Europe and the United States. To make that
aspiration a reality and beat back unemployment and poverty, we depend on the
potential of the resources and talents that Canada comprises." Even for the
wealthiest provinces, including Alberta, secession would be a bad thing, the
Minister added.
Mr. Dion then pointed out the contradictions in the arguments put forward by Mr.
Lucien Bouchard, who asserts that Canadian federalism is hurting Quebec's
economy. In 1993, Mr. Dion noted, the secessionists maintained that Quebecers
had to leave a country that was on the verge of "bankruptcy". Two
years later, it was the "cold wind" of cuts blowing in from English
Canada that was to incite Quebecers to opt for the "Yes" side. Today,
Mr. Bouchard believes that achieving a zero deficit will be the signal for the
Government of Quebec that Quebec can become sovereign. And so, according to Mr.
Bouchard, "we no longer need sovereignty to avoid cuts; we need to make
cuts to achieve sovereignty," the Minister commented.
Regarding the cuts in transfers to the provinces, Mr. Dion pointed out that,
from 1993-1994 to 1998-1999, those cuts will have been less than the ones to
direct program spending by the federal government (7.4% versus 10.8%). He added
that Quebec will continue to receive about 30% of federal transfers to the
provinces, substantially more than the province's proportion of Canada's
population, 24.7%.
The Minister also remarked that, although it is not the only cause, the
referendum mortgage is contributing to Quebec's economic and financial
difficulties, and that without the possibility of secession, the economic
context would be more favourable and the fight against the deficit less painful.
He also stressed that Quebec is the province that pays the highest interest on
its borrowing: "Even Newfoundland [...] pays less!" "And to think
that Mr. Bouchard is now claiming that it is the Calgary Declaration that is
dangerous for Quebecers. He would be funny, if he weren't gambling with their
money," the Minister said.
Despite its structural shortcomings, Mr. Dion continued, the Quebec economy has
extraordinary potential: "You won't find the MP for Saint-Laurent with any
misgivings about the Quebec economy! The Government of Canada is proud to be a
major partner. In a way, that Quebec's economy has managed to accomplish so
much, in spite of political uncertainty, shows just how resilient it really
is."
The Minister added that, in this context, it is important for Quebecers to elect
a premier and a government in Quebec City determined to draw fully on Quebec's
genius and Canadian solidarity. "It appears that the vast majority of
Quebecers do not want another referendum. And they're absolutely right,"
Mr. Dion concluded.
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For information: André Lamarre
Press Secretary
(613) 943-1838
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