Mr. Maurice A. Dionne (Northumberland-Miramichi):

Mr. Speaker, I should like to put a question to the Minister of National Health and Welfare arising out of the continuing controversy surrounding Canada's magnificent medicare plan.

Has the minister received any representations on this controversy from the government of New Brunswick and, if so, what was their purpose?

Hon. Monique Begin (Minister of National Health and Welfare):

Mr. Speaker, I received a telegram from Premier Hatfield this morning, asking me to convene a meeting of all health ministers and all finance ministers, and putting the blame on doctors for the eventual erosion of medicare. He wants a federal-provincial meeting right away, which surprises me enormously since two years ago the federal government, to be flexible-as we were asked to be by the provinces-gave them bloc funding with fantastically generous payments. These cost-sharing payments will be close to $6 billion this coming fiscal year.

If they cannot put their house in order when they are given the administration of medicare, I do not know how we can do it for them.

March 23, 1979

Oral Questions

Hon. Robert L. Stanfield (Halifax):

Mr. Speaker, I would like to direct a question to the very nimble Minister of Finance and the Acting Prime Minister. It concerns the extraordinarily complacement remarks made yesterday that the rate of inflation is a little high. With, now, five years since the last election and with the rate of inflation running at about 9 per cent annually, I ask the minister what has happened to the fiery desire of his leader to wrestle inflation to the ground?

What has happened to the assurances given by the government some four years ago that by now we would have a rate of inflation of 4 per cent? Why is the Minister of Finance now almost accepting the current rate of inflation and saying that it is a little high?

Hon. Jean Chretien (Minister of Finance):

Mr. Speaker, we do not accept the fact that inflation is at a normal level. We are trying to reduce it as quickly and as effectively as possible. Despite the decline of the Canadian dollar in relation to the American dollar, our rate of inflation is lower than that of the United States. However, I do find that it is too high. I would like to reduce it, and I have made predictions that the rate of inflation will be declining to the end of the year.

Most economic spokesmen say that inflation will go down during the year but not as low as everyone would like to see it. Everyone would like to have a zero rate of inflation. It seems to me that because of world conditions at this time, and with increases in the price of oil and other pressures coming not only from internal sources but from external sources, it will be very difficult to reach the goal we have in mind and achieve a very low rate or even a zero rate of inflation. I am quite sure that by the end of the year inflation in Canada will be lower than it is today.

Mr. Stanfield:

Mr. Speaker, we have had a succession of assurances and predictions from successive ministers of finance, yet what we have is a state of affairs where the rate of inflation is around 9 per cent and Canadians are now borrowing money to maintain their standard of living.

Does the Minister of Finance and his colleagues say nothing more than "Zap; you are frozen at a rate of inflation of 8 to 9 per cent"?

Hear, hear!

Mr. Chretien:

Mr. Speaker, we said that we are having a problem with inflation. We decided to go back to the marketplace. It is a problem that is afflicting not only Canada but everybody else. It would be unrealistic for anyone to say that we can cure inflation just by wishing that inflation would go away.

I have said many times that Canadians over the last year have shown a lot of responsibility; that we have regained our competitive position in world markets and that the competitive level in Canada is such that the increase in unit costs is lower

than that in the United States. We have extended our external markets and we put 400,000 Canadians back to work in the last year. Despite the fact that the Canadian dollar is weaker than it was a year ago, the inflation rate is lower in Canada than it is in the United States. That is not a bad performance.

Mr. Speaker, I have the honour, pursuant to Standing Order 41(2), to table, in both official languages, an order in council providing for access by the McDonald Commission of Inquiry to cabinet and cabinet committee minutes.

Mr. Roger Young (Parliamentary Secretary to Solicitor General):

Mr. Speaker, the following questions will be answered today: Nos. 225, 723 and 1,236.

I ask, Mr. Speaker, that the remaining questions be allowed to stand.

Were environmental studies commissioned by Eldorado Nuclear Limited on the Warman area as a possible site for a uranium refinery published in the form of an environmental impact statement in the Spring of 1978 as originally announced by the Minister of Energy, Mines and Resources and, if not, on what date (a) will they be published (b) will there be public hearings on the findings?

Hon. Alastair Gillespie (Minister of Energy, Mines and Resources and Minister of State for Science and Technology):

Eldorado Nuclear Limited reports as follows:

No.

March 23, 1979

Excise Tax Act