House of Commons Hansard #56 of the 39th Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was million.

Topics

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

February 28th, 2008 / 12:20 p.m.

Liberal

Roger Valley Liberal Kenora, ON

Mr. Speaker, the member talked at length about the first nations issues. In my riding, the riding of Kenora, we have a severe problem with some of the policing issues. The Nishnawbe Aski Nation is policed by the NAN for all of Treaty 9. It has severe underfunding issues. It basically puts prisoners in plywood boxes, which is dangerous.

In budget 2008, there are a number of initiatives for front line officers and to provide more policing. Could you give me your opinion? Is there anything in budget 2008 for first nations?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:20 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

I will not give the hon. member my opinion, but I will allow the hon. member for Kitchener—Conestoga to do so.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:20 p.m.

Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

Mr. Speaker, I am glad the member did point out that in budget 2008 we have set aside a large amount of money to recruit more police officers. I cannot say specifically where these will be allocated, but I know the government is committed to working with territorial, provincial and municipal partners to help increase the number of front line police officers to improve the safety and security of all of our communities.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:20 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

Mr. Speaker, in his speech the member started speaking about Liberal spending. I would like him to comment on the following quote. John Williamson of the Canadian Taxpayers Federation, one of the big critics of the Liberal Party policy in the past, stated:

Under Mr. Flaherty, the size of the federal government has grown by an astounding--

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:20 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

Order, please. I have to remind the hon. member that we cannot use proper names, even if we are quoting a third party reference. So, please refer to the member by his riding or title.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:20 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

I apologize, Mr. Speaker.

Under [the finance minister], the size of the federal government has grown by an astounding 14.8 per cent. How is this fiscally conservative or even responsible...Amazingly, the Conservatives have bested Liberal spending. This is a spend-thrift government.

I would like to give the member an opportunity to correct the opening remarks in his speech.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:20 p.m.

Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

Mr. Speaker, I think one thing that almost all of the members in this House and the opposition parties continue to ignore is the rapid debt repayment that this government has embarked upon. By the end of this year, just a few weeks from now, we will have paid down over $37 billion of debt. That amounts to an incredible amount of interest.

Currently, $33 billion of our budget goes toward servicing that debt. I find that incredibly unfair, not only to this generation but to the generations that are going to follow. It is up to us to pay down that debt and I think that is reflected in our current economic updates and also in this budget.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:20 p.m.

Liberal

Larry Bagnell Liberal Yukon, YT

Mr. Speaker, I appreciate the member's interest and support of first nations people. I suggest that he might cross the floor because he suggested, I think, that it was $660 million in expenses, but his party has taken away $5 billion from the Kelowna accord for aboriginal people. It is good that the Conservatives put something in, but it is too bad they took so much away.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:25 p.m.

Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

Mr. Speaker, the government has moved ahead with action on aboriginal affairs issues. I pointed out the water issue. We have addressed over half of the outstanding water issues in first nations communities that have critical concerns.

There are a number of other initiatives on which the government has moved ahead with action. As I pointed out, most aboriginal people, first nations, Inuit and Métis people, are not asking for further government handouts. They are asking for economic development opportunities. They are asking for educational opportunities.

If the member has time to look at the budget, he will see that those are the two primary areas that this government is addressing. I think we are on the right track as it relates to giving aboriginal people the tools that they are asking for in order to allow them to play a role in the economy that the member and I enjoy.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:25 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

Mr. Speaker, it is my pleasure to rise today and speak on the government's recently tabled budget. I would like to inform you, Mr. Speaker, that I will be splitting my time with the member for Brant.

From my perspective, as vice-chair and the former chair of the Standing Committee on Finance, the budget process has given me a unique insight into the importance of the federal budget and its effect not only on the daily lives of Canadians but on the long term prospects for Canadians as well.

As a member of the finance committee, I have been privileged to have the opportunity to hear from Canadians from all walks of life and all regions of the country in an unfiltered manner, be they non-profit, business groups, organizations or individuals.

The reason I bring up the finance committee is due to the fact that under the House of Commons Standing Orders the finance committee is obligated to prepare a report to Parliament on what it heard during its pre-budget consultations.

Therefore, since we do most of the leg work for the Minister of Finance before he tables his budget, the minister should be paying closer attention to what Canadians are saying.

Once again this year the finance committee held its pre-budget consultations and as witnesses spoke to us, actually to me, since I was the only member to be present at all the pre-budget consultation meetings. In fact, I even had to chair half the meetings while our committee travelled since the government was here in Ottawa trying to figure out how to get last year's budget bill passed in the House and moved to the Senate.

I listened to Canadians. They voiced their opinions and concerns for the Canada of today and shared with us aspirations for the Canada of tomorrow.

Canadians are passionate about the future of Canada. Like our Liberal leader says, “Canadians want the Canada of the future to be more just, to be fair, to be greener and to be economically sustainable”. That is vision.

This budget has no vision. It is nothing more than a hodgepodge of credits and spending of public money with no real vision or plan. Even the government's highly touted one year old “Advantage Canada” and money back guarantee plan has now been officially shelved based on its own 2008-09 estimates.

Therefore, how can I in good conscience support a budget that has no vision? The answer is simple. Being the optimist that I am, I am able to find a few elements that I genuinely like, but upon further analysis, I now realize the reason I say this is due to the fact that many of the Conservative proposals that have been adopted in the budget are actually Liberal initiatives.

For example, it is the Liberal Party that advocated that the gas tax transfer ought to be made permanent. It took a while but the Conservative Party has finally come around and done just that in the budget.

Even Quebec's finance minister applauded the decision to make the gas tax transfer permanent. She also liked another idea that came from the Liberal Party: investing an additional $500 million in public transit. Quebec would receive $116 million of that amount.

Another initiative that originated with the Liberal Party is the decision to extend the accelerated capital cost allowance for manufacturing companies for three years. This should promote investment in machinery and manufacturing equipment, and the extension makes it easier for companies to plan large purchases over the long term.

For my colleagues in Ontario, one positive budget proposal is the direct support to Canada's automotive sector. We in the Liberal Party for months have been highlighting not only the downturn in the automotive sector but the entire manufacturing sector in central Canada where it has suffered job losses.

That is why we immediately proposed that the Government of Canada should provide support to the manufacturing sector and not just the automobile sector in this difficult time.

It would appear that the learning curve for the government has shrunk considerably in recent days. The Conservatives seem to finally be grasping, ever so slightly, what the Canadian people have been telling them for two years, that a minority government is a mandate to work with its political opponents, not to try to run roughshod over them.

I do not know what they have started putting in the water at the Conservative Party's headquarters, but the next step is to increase the dosage and the frequency of consumption.

It comes down to vision. It is quite easy.

It comes down to vision. Some have it; others do not. The Liberal Party had a solid majority in the 1990s because Canadians saw that we had a vision to lead the country. The sound fiscal policies of successive Liberal governments turned record deficits into record surpluses. Liberal policies enabled Canada to begin paying down the national debt.

In short, it was the Liberal Party that did what had to be done and put Canada's fiscal house in order. When it came to power in 1993, the Liberal Party saw that Canada was being crippled by debt, and it set about addressing the debt problem. We can say proudly that, thanks to the efforts of the Liberals, the level of our national debt is the envy of the other G-8 countries. The Liberal Party understood that maintaining a budget surplus is a responsible way to govern.

We believe that any budget must contain a reserve fund of at least $3 billion to protect Canadians from unexpected economic shifts during a fiscal year.

That is one of the weaknesses of this budget. When the economy is healthy, this reserve is not used but is applied to the debt. It is a very simple concept.

As I said, we think it is necessary to have a reserve of at least $3 billion in the budget each year. Obviously the Conservatives do not agree, because in these times of economic uncertainty, they have left out the reserve and are predicting a surplus of only $2.3 billion for 2008-09, and $1.3 billion for the following year. This shows a clear lack of vision.

On page 214 of the budget—I know some people have not managed to read to page 213, because they fall asleep after the first few pages—the Conservatives themselves talk about the “Estimated impact of a one-year, 1-per-cent decrease in real GDP growth on federal revenues, expenses and budgetary balance”.

This means that if there is a 1% change in the GDP, it will cost our government $3.3 billion and show up on the bottom line. This means that if there is a 1% decrease in GDP growth, the government will have a deficit the following year. No reserve has been set aside. So we can comment on whether the government will be in a positive position next year.

Today, at this very moment, this Parliament needs to address a new issue, which is that Canada is now being crippled by crumbling and outdated infrastructure. The Liberal Party proposed using $7 billion out of this year's surplus to make a badly needed investment in Canada's infrastructure, but the Conservative government did not see fit to take this path, simply because it wants to appear to be the champion of debt reduction.

The Liberals wrote the book on debt reduction and we do not need a lecture on the subject. We simply recognize that the national debt is under control and Canada's next major challenge is addressing the infrastructure deficit that is sorely in need of an upgrade.

The Conservatives are not prioritizing properly and are throwing away a golden opportunity to invest in Canada, just so they can gain political advantage. Again that is a lack of vision.

The Conservative government introduced the Canada graduate scholarship program in this budget, which quite admirably attempts to attract top students from around the world. The problem is that there is no strategy laid out by the Conservative government to try to keep these students in Canada once their studies are completed. As it stands, these students will only be allowed to remain in Canada for a maximum of two years after they graduate. What is the logic behind investing in bright young students and then not providing them with opportunities and incentives to stay?

When it comes to education, the Conservatives have remained in the dark regarding the millennium scholarship fund. They have just decided to let it die, when it actually has an excellent track record of providing services, and according to the Treasury Board, its operating costs are only four per cent.

The long and short of it is that the government has in one instance created a program to attract good foreign students to Canada, but it did not have the foresight to provide avenues to keep these students in Canada in the long term, and in another instance, it is allowing a successful program that helps hundreds of thousands of homegrown students, many of whom have demonstrated a strong dedication to Canada already, to fade gently into the night. This is not a good vision.

Finally, this budget proposed by the government is hardly visionary. It is definitely a Conservative budget, a problem that repeats itself time and time again. When the government sets extremely low goals for itself, this is what we get.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:35 p.m.

Liberal

Rodger Cuzner Liberal Cape Breton—Canso, NS

Mr. Speaker, my colleague, who has spent most of his tenure on the finance committee, certainly holds a great deal of respect in this House for his down to earth approach to financing. I have a question for him concerning the savings plan that was introduced as the next best thing since RRSPs were introduced in this country.

I know the finance minister, during his delivery of the budget, said that this savings plan would be a great thing. However, since it has come out, people have weighed on this program and, whether it is apprehension or doubt, are wondering whether it will have any type of impact. Some have even said that it is a lot to do about nothing, that it will be like the Y2K bug where there was a lot of talk and hype around it but who will actually have access to it. In my riding, anyone with an extra $5,000 will probably put that into an RRSP or RESP to avoid the immediate tax.

I would like the member to weigh in and offer his opinion to the House on this program. What degree of success does he anticipate from this program?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:35 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

Mr. Speaker, I purposely did not speak about this program because there has already been a lot of time attributed to it. However, the short answer to his question would be, what about it. This program will probably make the banks and the brokers richer because a separate account will need to be set up. We will also need to track separate investments or a separate fund but we are not sure how it will be created.

When CCRA officials were before the finance committee yesterday I asked them how much this would cost. They had no idea about the cost but I think somebody said that it would probably save taxpayers $10 or $15 a year. I am not sure what the cost involved is.

If the government were genuine in trying to have Canadians save, first, it never would have cut the GST two months ago, and second, all it needs to do is provide Canadians with their first $500 of investment income tax free. It would just be an extra line on the income tax return. We would not need to set up accounts, fill out forms or monitor them separately.

This is just another way of Conservative bureaucracy which the Conservatives say they do not like but actually decide to implement even more bureaucracy.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:35 p.m.

Liberal

Larry Bagnell Liberal Yukon, YT

Mr. Speaker, I have two quick questions, one on poverty and the other on going into deficit.

When this is such a wealthy country and in a great economic situation, why would there be nothing in the budget to deal with poverty? That is when a country helps those most in need, especially when we can afford to. We just had the Senate committee on poverty come to the Yukon and also Ken Dryden on his national poverty tour. All sorts of witnesses gave evidence of women's homelessness, aboriginal needs and homeless youth, all of whom could have been helped by one of the wealthiest countries on earth.

Second, the member said something very scary. He said that after the Liberals came to power and got rid of the huge deficit, this budget now puts us on a hairline very close to going into deficit again, which Canadians, after fighting their way out, do not want to do.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:40 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

I would remind the hon. member for Yukon not to use proper names.

I will allow the hon. member for Saint-Léonard—Saint-Michel to answer. He has about one minute left.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:40 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

Mr. Speaker, it is always interesting when the member decides to partake in this debate. Both of his questions are related in the sense that I understand from one point of view where the government does not want to invest and make a long term plan for trying to address the poverty challenge, but the fact is that the present government has over $13 billion to do something with right now before March 31. If it had taken action, it could have done something to help relieve the poverty in Canada.

Our leader, on more than one occasion, has made some speeches relating to poverty and I think he had a plan for it. The finance minister could have taken an example and utilized that to address some of the issues regarding poverty.

Regarding the deficit, it is a scary situation. As I said in French, if anyone were to read page 214, although I know many members would probably fall asleep after the first five pages, the Minister of Finance's own document states:

Estimated Impact of a One-Year, 1-Percentage-Point Decrease in Real GDP Growth on Federal Revenues, Expenses and Budgetary Balance.

A 1% reduction would cost $3.3 billion. Next year, if the GDP goes down 1% as forecasted, we will be in a deficit.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:40 p.m.

Liberal

Lloyd St. Amand Liberal Brant, ON

Mr. Speaker, I rise today to comment on the budget delivered by the Minister of Finance, a budget that sprinkles some minor benefits to a few sectors but, on balance, has done relatively little for any sector and nothing whatsoever for many sectors.

The task of government is to address imbalances and unfairness. Economically, the fundamental task of the federal government is to, however incrementally, narrow the gap between those who have enough and those who have too little; between those who have abundant resources and those, for instance, who are homeless; and between those who have abundant opportunities for employment and those who have lost employment through no fault of their own. On balance, the gap between these various groups has not been narrowed by this budget, or at least has not been narrowed to an extent which could have been achieved.

The Minister of Finance himself has conceded that Canada's manufacturing sector, particularly in Ontario, has been dealing with unprecedented forces, aligning itself against manufacturing; forces including the Canadian dollar, essentially at par with the U.S. dollar; the significant growth in manufacturing in other countries, including China, Brazil, India and Mexico; the difficulty in locating skilled workers; and, in addition, the reality that our manufacturers are forced to compete on a playing field that is most definitely not level.

The harsh reality is that manufacturers are in very serious difficulty and certainly the auto industry is in particular difficulty. In my riding of Brant, hundreds of high quality, well paying jobs have been lost as a result of plants closing their doors and relocating or simply closing their doors as they could no longer be profitable in light of the combination of factors which have confronted them.

I am referring to Canadian Blue Bird Coach, Easton Coatings, Genfast, Dura Automotive and others. Some of these plants were in existence for many decades and provided solid, well paying jobs for hundreds of individuals and, by extension, their family members. Certainly the city of Brantford and the surrounding area of Brant county benefited greatly from these jobs, which are obviously accompanied by spinoff benefits for entities such as retailers and restaurants.

Most important, it is obviously jarring and upsetting, to say the least, for an individual who has worked most of his or her adult life at the same plant to be told after 20, 25 or 30 years that the job is no longer there, that head office has decided to expand into South Carolina or has relocated to Mexico or Brazil. There is an obvious economic loss for these individuals who hoped for and counted on finishing their productive working lives at the plant or factory to which they had devoted their time, skill and energy.

Capital is the most portable commodity in the world but capital is not patriotic nor is it sentimental. Capital will be invested where it will receive the most yield and it is important for the government to understand that on occasion particular sectors of Canada's economy need assistance. The manufacturing sector, including the auto sector, needs assistance now and the budget does not provide the necessary assistance.

For companies that are showing large profits, a reduction in the corporate tax rate is of assistance. For companies that have the financial resources to purchase new equipment, the accelerated capital cost allowance is of some assistance. However, for companies that are not showing a profit and do not have the current resources to buy new equipment, those measures, although widely trumpeted by the Minister of Finance, are essentially of no benefit whatsoever.

Although the government seems to have an aversion to providing help to particular sectors, it has clearly forgotten the very beneficial effects that have been felt by communities such as Oakville, Woodstock and Alliston in Ontario.

In Woodstock, for instance, just outside of my riding, the former Liberal government saw fit to invest $60 million in Toyota's investment in Woodstock and the surrounding area. How tremendous has that federal government assistance been for the entire community? Growth is occurring at a rapid rate and well paying jobs are being provided all because the former Liberal government, in partnership with Toyota, saw fit to invest.

The $250 million spread over five years, as mentioned in the Minister of Finance's budget this week, is only $50 million per year. This sum will only very marginally help the auto sector. Would that the Minister of Finance understood that the sector is in real difficulty and needs help.

He continually talks about the number of jobs that have been created, but does not paint the full picture. The full picture would show jobs being created, yes, but a majority of those jobs are in the service industry, paying significantly less than the jobs that are being lost. The jobs being created are often accompanied by no benefits, no pensions and no security.

Quite apart from the auto sector, manufacturing generally is facing difficult times. I conversed recently with Dennis Hewko, the chief executive officer of Eagle Precision in Brantford. Mr. Hewko is an astute business person and is well familiar with the manufacturing sector, certainly familiar with the problems faced by the sector. He advances the thought that a decrease in employment insurance would have been of assistance, but unfortunately the Minister of Finance chose not to realistically assist the manufacturing sector. There ideally would have been programs available for manufacturing. Without federal government leadership, the sector will continue to deteriorate.

The government seems rather obsessed with the so-called free market, ignoring the fact that the market worldwide is not so free after all. It is well recognized, for instance, that governments in the United States, the supposed free market capital of the world, are providing substantial inducements to industry to locate in the United States. Governments at both the federal and state level are providing incentives. At a minimum, Canada's government should provide assistance to the manufacturing sector so our manufacturers can compete on a playing field that, if not perfectly level, is at least more level than would otherwise be the case.

I have some other points.

No mention was made in the federal budget of assistance for tobacco farmers, in spite of the comment from the Minister of Agriculture and Agri-Food in the House only two weeks ago that action would be taken sooner rather than later and that tobacco farmers should, in his words, stay tuned. Tobacco farmers have stayed tuned and there has been no show for them to watch. They have been left completely out of the budget and their disappointment was expressed in a tangible fashion by their demonstration yesterday afternoon at the office of the member for Haldimand—Norfolk.

Other groups have been left completely out of the budget. There is no support for arts and culture and local museums, no measures whatsoever to deal with the reality of physician shortage and no mention of incentives for companies and employers to hire persons who are disabled.

Last, there were $11 million per year to accelerate the waiting times for immigrants. There are 900,000 people waiting to come to Canada. Many of those are in the skilled worker category such as physicians and engineers. The wait time is 64 months to come to Canada.

If one is a 30 year old professional, an engineer for instance in Asia or another country, who wanted to go elsewhere to pursue a career, he or she could go to New Zealand in one year. One can be accepted into Australia in 18 months. In Canada it takes almost five and a half years. It is a problem that the government has not faced. It has done nothing except to provide a measly $11 million per year to accelerate the wait times, $11 million from a government that spends $240 billion a year. It is not enough. It is clearly inadequate.

Other sectors have also been left out.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:50 p.m.

Calgary East Alberta

Conservative

Deepak Obhrai ConservativeParliamentary Secretary to the Minister of Foreign Affairs

Mr. Speaker, the hon. member nitpicks areas where he thinks the budget has not impressed. However, look at the whole the budget, the economy and what the government has done. I do not understand why he has difficulty with reducing the GST by 2%, or income splitting for pensioners. Now we have a new savings plan. The budget addresses the issues of ordinary Canadians.

During the long 13 years of Liberal rule, taxes were going up and Canadians were feeling the pinched. Now, for the first time, when tax returns are done, Canadians will see more money returned to them. More money in the pockets of Canadians is more wisely spent than in the pockets of the bureaucrats.

I fail to understand why the member or his party would not support the budget when we take into account the global picture of what is happening with the Canadian economy, what we are targeting toward aboriginals, students, seniors, as well as reducing the GST, which benefits everyone. It is beyond our understanding. Canadians keep asking what is wrong with that party and why can it not support good policies.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:50 p.m.

Liberal

Lloyd St. Amand Liberal Brant, ON

Mr. Speaker, the GST reduction clearly benefits the wealthiest Canadians. Those who have the most disposable cash, those who spend the most and those who can afford luxuries, then yes, they will largely benefit from the 2% reduction in the GST. However, those Canadians who are at the lower income level, expenses for whom are free from GST in any event, groceries, et cetera, the reduction in the GST will not benefit them at all.

I do not know about the riding of the member opposite, but in my riding of Brant many seniors live on their own. They have been widowed. I presume it is the same in the riding of the member opposite. I have heard from a number of single seniors who have said, in so many words, “What about me?” They are entitled at age 75 or 80 to say to the government, “What about me? I do not have a partner. I have been widowed.” Pension splitting, income splitting, is of absolutely no benefit whatsoever for the single senior. That is the short-sightedness, frankly, of the government's approach to assistance for seniors.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:50 p.m.

Bloc

Thierry St-Cyr Bloc Jeanne-Le Ber, QC

Mr. Speaker, I have one major concern about this disappointing budget with respect to post-secondary education transfers. From 1995 on, the Liberal Party viciously cut transfers. Students across the country, and particularly in Quebec, felt the devastating effects. The Liberals surely had a lack of vision when they decided to go after post-secondary education.

Would the member have liked the Conservatives to fix this mistake?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:55 p.m.

Liberal

Lloyd St. Amand Liberal Brant, ON

Mr. Speaker, the former Liberal government did a great deal for students. The Liberal Party has well understood the importance of education and investing in it.

I agree with the question of the member opposite, at least in so far as, yes, the federal government should have done more in this budget to make it easier for Canada's students to continue their education. Brain power is the order of the day. Without assistance from the federal government, Canada's students, and by extension the economy at large, may well be left behind.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

12:55 p.m.

Conservative

Dave Batters Conservative Palliser, SK

Mr. Speaker, I am proud to rise in the House today and speak in favour of our Conservative government's 2008 budget. I will be splitting my time with the member for Nanaimo—Alberni.

I am especially honoured to support the budget for my constituents in the great riding of Palliser. Canadians like them will benefit most from the government's economic plan. I have already received a lot of positive feedback from my constituents about the budget. These constituents, like other Canadians who watched the unveiling of budget 2008 on television or who heard it on the radio, found something in our economic plan for them.

The budget offers all Canadians a reason to celebrate, regardless of age, income level, geographic location or marital status. Even though budget 2008 has something for everyone, it is also balanced, focused and prudent.

Aptly entitled “Responsible Leadership”, it lays out our Conservative government's blueprint for careful stewardship of the Canadian economy in the face of challenges presented by global economic uncertainty. The Regina Leader-Post stated in its editorial yesterday:

This was not a sexy, free-spending budget that saw the federal Conservatives buy Canadians' votes. It allowed them instead to say they are managing Canadians' hard-earned money well.

The budget builds on our decisive, pre-emptive action taken in the 2007 fall economic update and during winter 2008 to lower taxes for people and businesses, pay down debt and provide targeted support for troubled industries. We are building on a record of soundly managing Canada's finances.

Since the Conservative government came to office in 2006, we have reduced the overall tax burden in Canada to its lowest level in nearly 50 years. We have paid down our federal debt by $37 billion and instituted a tax back guarantee to ensure that any interest savings on debt repayment would returned to Canadians in the form of personal income tax cuts.

Under the Conservative government, Canada's unemployment rate is at its lowest level in over three decades. If we want to continue this economic success, it will require a steady hand on the rudder as we navigate the current volatility in world markets.

Our Prime Minister, the Minister of Finance and our Conservative government have demonstrated our commitment to the required prudence in budget 2008.

In this fiscal year we will pay an additional $10.2 billion down on our national debt. By 2012-13, our Conservative government will have reduced the debt by $50 billion. We believe that future generations should not be shackled by the debt of previous generations.

We are taking the same responsible approach to federal finances that Canadians apply to their own family finances. In times of economic uncertainty, people do not overextend themselves by running up bills that will need to be paid later. Instead, they pay off their bills to give themselves and their families peace of mind and security in the future.

In budget 2008 we have also given Canadians an inventive new tool to allow them to save and also an incentive to save. Our new tax-free savings account is the most significant personal financial innovation since the RRSP. It will allow all Canadians over 18 to invest up to $5,000 per year for their own priorities. They can withdraw that money whenever they need it and any interest, dividends or capital gains will not be taxed. Any unused contribution room will be carried forward to future years and no amount earned in or withdrawn from the account will count against Canadians when determining their eligibility for federal income tested benefits, such as the child tax credit, GST tax credit or the age credit. This tax-free savings account offers all Canadians a powerful incentive to save for their individual future goals and priorities and watch their savings grow tax free.

Through the establishment of this account, our Conservative government has truly provided something for everyone. All adult Canadians can benefit from this measure: young people saving for their first car; couples saving for their first home or a wedding; families looking to fund home renovations; or seniors who want to stretch their retirement savings further or save for a trip south in the winter. This is great news for all Canadians who want to invest in their goals, their families and their futures.

Through this budget, our government is also investing in the future. We know that one province with a very bright future is my home province of Saskatchewan. Budget 2008 introduced several measures that will help sustain that growth.

Our Conservative government is committing $240 million for Saskatchewan to develop one of the first and largest clean coal and carbon capture demonstration projects in the world.

According to the Government of Saskatchewan's announcement yesterday, the proposed SaskPower demonstration project is a seven year, $1.4 billion government-industry partnership that rebuilds and then re-powers a major coal-fired power generation unit at Estevan's Boundary Dam. I am very proud to say one of my first summer jobs was at Boundary Dam in Estevan, Saskatchewan, the sunshine capital of Canada, so I take particular pride in this investment.

In terms of carbon capture, there has been some very exciting work done in this field at the University of Regina. I am encouraged to see our government's commitment to this kind of endeavour for Saskatchewan and for our environment. The new Government of Saskatchewan has asked our federal government for funding of this nature and we are delivering. With this commitment, we see the dawn of an encouraging new era of cooperation between the Government of Canada and the Government of Saskatchewan.

Budget 2008 delivers for our communities in Saskatchewan and across Canada. We are making the gas tax fund a permanent funding measure for our municipalities to allow them to better plan and finance their long term infrastructure needs.

Also, Saskatchewan will receive $36 million through the community development trust to help vulnerable communities adjust to global economic uncertainty. It will receive $15 million over two years through the public transit capital trust 2008. Saskatchewan will also receive $64 million for infrastructure initiatives, $15 million for labour market training, and $10 million for the Canadian Light Source synchrotron.

Budget 2008 is also investing in the future of Saskatchewan's agricultural producers. Since 2006 our government has provided $4.5 billion to farmers. With this funding, we have put in place an improved package of farm income stabilization programs that are responsive, predictable and bankable.

In this budget, our Conservative government is providing funding of $72 million over two years for farm programs. We have also improved producers' access to $3.3 billion of cash advances, a move that will help our livestock producers in particular. In addition, Saskatchewan will receive $4.2 million through the cull breeding swine program to alleviate financial pressures faced by the Canadian hog industry.

This is all very good news for the agricultural producers in my riding, in communities such as Pense, Avonlea, Caron, Rouleau, Wilcox and Mossbank, who are so vital to Saskatchewan's economy.

The good news for Canadians does not stop there.

Our Conservative government has introduced new measures in this budget to assist our valued senior citizens. The budget provides for a full exemption of the first $3,500 of earned income from the guaranteed income supplement, or GIS, calculation for seniors. This is up from a previous maximum exemption of $500, a significant increase that will make a difference for many seniors.

I am proud to have the military base 15 Wing Moose Jaw in my riding of Palliser. As such, there are many families in Moose Jaw and area who are survivors of war veterans. Budget 2008 will provide $282 million over this and the next two years to expand the veterans independence program, or VIP, to support those survivors. This is a move that I know will benefit many seniors in my riding.

Further, budget 2008 will continue this Conservative government's commitment to fighting the largely hidden problem of elder abuse. We will direct an additional $13 million over three years toward this issue.

I would like to congratulate Senator Marjory LeBreton, Secretary of State for Seniors, for ensuring that this important initiative was included in budget 2008. When Senator LeBreton recently visited my riding and with seniors in Regina, elder abuse was a key concern discussed at those meetings.

We are also funding other initiatives to keep our communities safe. In budget 2008 our Conservative government is giving the province of Saskatchewan $12 million to recruit frontline police officers to protect our citizens. In addition, we are providing over $60 million for crime prevention and prosecution nationwide. I could go on, but my time is almost up.

It is worth mentioning as well that we are investing in our Canadian Forces, providing stable and predictable new funding to ensure that our CF members--

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

1:05 p.m.

Conservative

The Acting Speaker Conservative Chris Warkentin

Questions and comments, the hon. member for Yukon.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

1:05 p.m.

Liberal

Larry Bagnell Liberal Yukon, YT

Mr. Speaker, you are doing an excellent job in the Speaker's chair. It is a new career for you.

The member started out fairly well by saying that he wanted to have a fiscally responsible government, unlike the previous Conservative governments that had such huge deficits. However, that lasted about 30 seconds and then the rest of the 10 minute speech listed spending, spending and spending, mostly in one province. We can imagine what that adds up to.

I suppose that is why John Williamson of the Canadian Taxpayers Federation said:

Under [the Minister of Finance], the size of the federal government has grown by an astounding 14.8 per cent. How is this fiscally conservative or even 'responsible'?...Amazingly, the Conservatives have bested Liberal spending. This is a spend-thrift government.

What is said in this budget is very scary for Canadians: if the GDP were to go down by 1%, next year we would be in deficit. Canadians fought so hard to get out of deficit under Liberal governments that the fact a tiny change in the economy could put us into deficit is very scary. With the problems in the United States economy, what are the chances of a possible 1% decrease in GDP? This would be coupled with the problems in the manufacturing sector.

It is a very worrying prospect for Canadians, who have already incurred so much pain with deficits, to be so close to that again.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

1:05 p.m.

Conservative

Dave Batters Conservative Palliser, SK

Mr. Speaker, certainly I am very happy to see all of the money that the Minister of Finance has dedicated to the province of Saskatchewan. This is great news for our province. Certainly we are deserving of these investments. They are investments in the future of the people of Saskatchewan.

Regarding debt repayment or a possible deficit situation, this budget is prudent. Let us keep in mind, though, that the main goal is to get this country out of debt so that we do not shackle not only our kids but their kids and their kids' kids with the huge debt that exists in this country. This is a very bold move to reduce the debt by an additional $10.2 billion. We have reduced it by $37 billion since getting into power. The saving in interest amounts to about $2 billion per year and will be passed on to ordinary individual Canadians in the form of tax cuts.

Talking about spending, when the member for Wascana delivered one of his budgets in the 38th Parliament, we were up to about $60 billion in promises. Of course, it is tough to remember which budget we are talking about, whether it is the original one or the one from the NDP--

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

1:05 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

Questions and comments, the hon. member for Lac-Saint-Louis.