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Montreal, October 20, 1995
1995-084

Notes for an address by Paul Martin, Minister of Finance, to the Quebec Lawyers and Notaries for the No

Montreal, Quebec
October 20, 1995

Delivered text is official version


In less than five years, we Quebecers will leave one century behind and begin a new one, the first in the third millennium.

Will that century, like the one behind us, be marked by growth and economic security for Quebec? Or will we witness the disintegration of the country we have built together, Canada - the real stakes in this referendum?

The choice we make ten days from now will determine that future. A future that rests in our hands.

It is a choice that we faced once before, nearly a generation ago, and together we made the right decision.

But this time, the stakes are even more important.

This time, given the separatist plan, there would be no second vote, no second chance. A vote to separate from Canada would be irrevocable. Quebec would split from Canada.

But there is another reason why this time the stakes are higher.

The world has changed.

Today's world is one of unprecedented challenge. As all of you know, our prosperity, which once seemed guaranteed, now comes hard won, at the price of constant effort.

Countries which only 15 years ago had economies that barely registered, are increasingly becoming serious competitors. They compete with us in the hunt for investment, in the pursuit of markets, and to create jobs.

More than ever, we are measured not on our past performance - or the performance of our neighbours - but against the very best the world has to offer.

But if the economic realities confronting Quebec today are more daunting than ever, they also offer great opportunities. In this new world - of challenge and opportunity - we literally cannot afford to make the wrong choice.

That is why Jacques Parizeau and Lucien Bouchard can no longer continue to dodge the real issues in this debate. The burden of proof rests with them.

We have already explained why it is not in the interests of the rest of Canada to establish an economic union with the separate Quebec. The premiers of the other provinces have underscored this same message. We also explained the risks involved in reopening NAFTA.

The separatist leaders have issued no credible response. They have a moral obligation to do this for Quebecers before it is too late.

So, Mr. Parizeau and Mr. Bouchard, tell us: after dismantling Canada, what magic trick will you use to produce the glowing picture you have painted for the people of Quebec?

Without an economic union, without NAFTA, please explain what magic trick you plan to use to prevent our Quebec exporters from being overrun by the North American competitors? You have to tell us. The burden of proof is on you!

Mr. Parizeau, Mr. Bouchard, under these circumstances, what magic trick will protect Quebec farmers and dairy producers, our film and television producers.

What magic trick will you use to protect the industrial and regional development policies that are so important to our economy? You have to tell us. The burden of proof is on you!

What about the issue of monetary union? Jacques Parizeau said in 1991, and I quote: "Creating a Quebec currency is not very complicated, but making sure ahead of time that people have confidence in that currency is another matter altogether. What is the best way of gaining their confidence? To tell them that we are going to keep the Canadian dollar, even if Canadians do not want us to do so."

Barely five days ago, Lucien Bouchard said, and I quote: "We will control our own money; we will manage our own money."

Doesn't this contradict what they agreed upon on June 12? Doesn't this contradict their assurances that Quebecers will always have the security of the Canadian dollar rather than the unknown quality of the Quebec dollar?

Messrs. Parizeau and Bouchard: what magic trick will you use to reconcile these opposites? You have to tell us. The burden of proof is on you!

Consider the issue of international influence. Canada is a member of the most powerful decision making organisations on the planet - the organisations that make all the important economic decisions. These include the G-7 and the Asia-Pacific Economic Cooperation, the fastest growing region of the globe. I sit on the Finance Ministers' Committee for both of these groups. And I know just how important they are.

Mr. Parizeau and Mr. Bouchard, if you leave Canada, what magic trick will let Quebec preserve this influence, which is so important to our economic development? You have to tell us. The burden of proof is on you!

Now, about the debt and the deficit. To begin with, the separatists will have to take into account that Quebec is one of the most heavily taxed and indebted provinces in Canada. They must factor in the enormous costs involved in setting up a new state. They must also take into account that all credible economists agree that the deficit of a separate Quebec would be two to four times higher than it is now.

As the Minister of Finance for Canada, I have no intention of glossing over my own problems. But I do know that in 1996-97, the Canadian government's deficit-to-GDP ratio will be one of the lowest among all the G-7 countries. And I also know that for a separate Quebec, this deficit-to-GDP ratio would be one of the highest among developed countries. Mr. Parizeau, Mr. Bouchard, you have to tell us. The burden of proof is on you.

What is the use of creating a new state if the state can be used only to pay its debts?

As we can see, the burden of proof that separatists have to shoulder is immense. And it is impossible for them to give us this proof.

Why? Because what they are proposing runs contrary to the evolution of today's global economy. But anyway, the economy is not high on their list of priorities. That must be why Bernard Landry said earlier this week, and I quote: "People do not become sovereign for economic reasons."

I'm sorry, but the economy is very important indeed. Behind the figures are real people.

What kind of vision is that for Quebec workers, Quebec families and Quebec youth?

Let's be clear on every issue, a vote for separation is a vote to step backwards. To step backwards on trade. To step backwards on debt. To step backwards on the deficit. To step backwards on taxes and interest rates. To step backwards on jobs, on growth.

Making the separatist economy a success would take more than magic - it would take the ability to walk on water. We believe that Quebec deserves better than that - much better - that we deserve to ride the wave of change, nothing less. And that's why we must vote no!

A "No" vote will mean that we, Quebecers and Canadians, will be able to dedicate all our energies to the issues that really matter to us in our every day lives.

Quebec will be able to join forces with the other governments in Canada to create a climate that is conducive to employment, to join them in the unprecedented effort already underway to restore health to our public finances. That is not a step backward. That is progress and genuine change.

With the threat of separation lifted, Quebec, with Canada, can look forward to lower interest rates, which will mean jobs, investment and growth. That is not a step backward. That is progress and genuine change.

Quebecers will be able to work together with Canadians in forging new trade agreements abroad, well beyond the foundation we have already built on this continent. Instead of tearing-up agreements and putting things into reverse, a "No" vote will make it possible for Quebec to benefit from new trade agreements across the Pacific, with Japan, Singapore and Australia, agreements that are already in the works. That is not a step backward. That is progress and change.

Canada is constantly evolving, in every realm of activity. These are changes that will meet Quebec needs. These are changes buttressed by Quebec's ambitions and strengths. These are changes without a break. These are changes that would be guaranteed by a "No" vote on October 30.

The nation state is evolving. So are it's governments. There is unprecedented consensus today on the need for fundamental structural reform in the way this country works. Not only in Quebec, but everywhere in Canada. Westerners are seeking new flexibility. Ontario wants drastic reforms. The Atlantic provinces are tired of being dependent.

As Finance Minister, I am in a good position to tell you that the issue of change dominates every meeting I have with my provincial counterparts. Quebec is not isolated on the issue of change. Nobody is isolated.

These changes will make it possible to capitalize on the special "genius" of federalism: the creativity that goes hand in hand with flexibility. Instead of staking everything on a single approach that could lead to a deadlock, we can apply various approaches and maximize our chances of finding the right one. This process has served us well in the past. Our model for health insurance came from Saskatchewan. Quebec showed us how to get people off welfare, while New Brunswick's initiatives in training could prove a model for all.

The challenges Canada faces are growing ever more difficult. We must not let ourselves lose that unique Canadian attribute. In fact we need to make it stronger. This is precisely what a "No" vote will do.

(In English in original version)

Let it be absolutely clear. On every issue, a vote for separation is a vote to step backwards. To step backwards on trade. To step backwards on debt. To step backwards on deficits. To step backwards on taxes, on interest rates. To step backwards on jobs, on growth.

Today, more than ever, the costs of pulling apart are too high, the benefits of pulling together too great. Today more than ever, the values of La Révolution Tranquille will stand us in good stead. And today, more than ever, the achievements of the quiet revolution are at stake.

Our generation of Quebecers, as with others before, has the opportunity today to determine the future of the generations to come. The opportunity, in our time, to do what previous generations of Quebecers did in theirs -- to confidently choose the course of openness. To lead again.

Canada has a history of change. Change that meets the country's needs. Change that will be strengthened by the ambitions and the attributes of Quebec. It is change that a "No" vote, on October 30th, guarantees.

In 1966, I decided to move to Quebec and earn my living here. I've lived here ever since. I raised my family here. I built my career here. I launched my political career here. I came because of the Quiet Revolution. I was able to experience first-hand its power, its generosity, and its unprecedented accomplishment. Today, it is our duty to preserve all that it achieved.

A "No" vote means building on what was achieved by the Quiet Revolution, perpetuating the values of openness, drive, the forging of links and the broadening of horizons.

The conditions that allow such transformations to emerge are rare in the history of any society. Today, 35 years later, another such opportunity is at hand. A new revolution is underway almost everywhere in Canada.

It is a revolution that centers on making our federation more flexible, and building an effective form of cooperation among governments. It is a revolution that centers on building an even stronger economy, meeting world competition head-on, placing our public finances on a healthy footing. The opportunity in this revolution is virtually unlimited if we can clear away the cloud of separation.

This country will continue to change, but Canadians have always been on the leading edge of change. We did not become what we are by standing still. We were guided by the values that we share and the vision that we chose to achieve together.

The future, along with true prosperity and sustained growth, will belong only to countries like Canada that are already in the starting blocks, to the industries of tomorrow that are already prepared to rebuild tomorrow's markets: Eastern Europe, Asia, Latin America. Ultimately, the real question we must ask ourselves is: Why not?

Why not say we will completely rebuild our industrial base within ten years, not to catch up to today's Japan but, in key areas, to surpass them?

Why not say to ourselves that within ten years, we will fill the skilled jobs that now go begging because of a shortage of skilled labour, with young people trained here in Canada?

Why not say that within ten years, Canada will become the world leader in biotechnology and in environmental technology?

Why not say that in ten years the whole world will be looking to Quebec and Canada as a model?

Ultimately, the real issue is an economic one.

And that is precisely why we Quebecers with all our resources, must become not the master-crafters of stale debates on separation, but rather the master-crafters of a reborn Canada!

I believe in the potential of Quebec within Canada in every fibre of my being. For me, a distinct society is one that wants to distinguish itself. And it is to distinguish ourselves that we will stay within this ever-changing Canada.

Quebec must provide itself with the means to fulfil its ambitions and its enormous potential. It can achieve these better by being a member of a larger team.

National unity is not an end in itself. It is the natural outcome of a country that has major challenges to deal with. It is what happens when a country like Canada knows where it is going and how to get there. Not by accident, but through determination!

I say to you that Canada's best days are not yet written in the ledger of history.

I say to anyone who wants to break our country apart, that Canadians are not out of breath, short on ideas, or lacking in convictions!

I am here to say to everyone who wants to break our country apart, that Canada will be prepared in the future to make the same structural transformations that it has undertaken in the past.

Canada is at a cross-roads.

For me, the key to our future depends on the answers that we together, Quebecers and other Canadians, will find to the real political, economic and social problems that confront us.

We must stop being a country fighting against itself. We must become a country united behind one great goal: to be the best of the best!

The time has come for this generation of Quebecers, like the generation that preceded it, to determine the future for coming generations.

Once again, the time has come for Quebecers and Canadians to take charge and undertake a great leap forward.

After this referendum, I would hope Quebecers can continue to say that they would not want to live anywhere in the world except Canada, because there is no place in the world except Canada where dreams on this scale can become reality.

That is our common vision.

That is the reason to vote "No".

That is the motivation that should guide us, the real social agenda behind which Quebecers and Canadians must all rally together.

Thank you.


Last Updated: 2002-11-26

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