Mr. Speaker, I will be sharing my time with the hon. member for Northumberland—Quinte West.
I am pleased to rise today on behalf of the constituents of Fleetwood—Port Kells to participate in debate on budget 2008. This year's budget is a balanced financial plan that builds on our Conservative government's strong foundation of lowering taxes, reducing debt and focusing on the clear priorities of Canadians.
Under the leadership of our Prime Minister, taxes are at their lowest level in nearly 50 years. The unemployment rate is at its lowest level in 33 years. Canada's debt burden is at its lowest level since the 1970s. Thanks to our careful management, Canada is in the strongest economic position of the G-7 countries to go through a time of economic turbulence.
Budget 2008 builds on our record of responsible leadership. It is a balanced, focused and prudent budget to strengthen Canada and British Columbia amid global economic uncertainty. It continues to reduce debt and taxes, focuses government spending, and provides additional support for sectors of the economy that are struggling. It is a budget that responds to our country's current needs.
With regard to taxes, this budget builds on last fall's economic statement, offering further assistance to hard-working Canadians and their families. In October, the finance minister announced $60 billion in tax cuts, including $12 billion for this fiscal year. We have cut the GST from 7% to 6% to 5%, increased the basic personal amount deduction to $9,600 with another $500 increase for next year, and cut the lowest personal income tax rate to 15%. Almost three-quarters of all tax relief implemented by our government benefited individual Canadians and their families directly.
Our broad based tax reductions are providing substantial tax savings for Canadians at all income levels, with proportionately greater savings for those with lower incomes. By increasing the basic personal exemption and cutting the GST, our government is helping those Canadians who are more most in need. We are making sure that low income Canadians, including the working poor, single mothers and seniors, who are struggling to make ends meet, have more money in their pockets to pay for the essentials of life.
Since coming to office 24 months ago, our government has taken action that will reduce the overall tax burden for Canadians and businesses by $190 billion.As well, we have removed hundreds of thousands of Canadians from the tax rolls.
The tax-free savings account introduced in this budget provides further financial support by giving Canadians a new savings vehicle. This will allow individuals to contribute up to $5,000 a year in a registered account that grows tax free. Withdrawals can be made tax free and at any time. The money can be used for anything from retirement to the purchase of a new car or a vacation. These accounts will encourage Canadians to save for the future and improve their standard of living.
The government's comprehensive ecoAction plan is making progress on preserving and enhancing the environment, improving air and water quality, reducing greenhouse gas emissions and addressing the health effects of environmental contaminants.
This budget includes new measures to strengthen and ensure effective implementation of Canada's ecoAction plan. It provides funding to implement regulations that will lead to significant reductions in greenhouse gas emissions and improvements in air quality and proposes additional incentives that will advance progress on cleaner energy generation and use. With this budget, we are also improving Canada's capacity to enforce environmental laws and support conservation.
The budget provides: $66 million over two years to set up the regulatory framework for industrial air emission targets; $240 million to develop a full scale commercial demonstration of carbon capture and storage in the coal-fired electricity sector; $250 million for an automotive innovation fund to develop greener and more fuel efficient vehicles; and $10 million for research and analysis on biofuel emissions.
After years of empty rhetoric and broken promises by previous governments, we are moving forward with sensible initiatives to improve our environment for future generations of Canadians.
Our government is making the largest single federal investment in public infrastructure since World War II through the building Canada plan. This includes a total of $33 billion over seven years for roads, bridges, water systems, public transit and international gateways.
In this budget, we have announced our government's intention to permanently extend gas tax funding to the municipalities to give our cities and towns a guaranteed source of revenue for their infrastructure needs. To help entice people out of their cars and onto public transit, we are providing $1.3 billion in support for public transit capital investments and a tax credit for public transit passes.
The budget provides $500 million for further investments in public transit. This money will assist with the completion of the Evergreen Light Rapid Transit line, which is a vital component of B.C.'s lower mainland transportation system. Investments in public transit are about preserving our environment and making our communities more livable. It is about taking cars off our crowded streets and improving the quality of the air we breathe.
In these challenging times, it is important for the government to focus on its core responsibilities and prepare Canadians to excel in an increasingly competitive world. Our government is therefore investing $350 million per year in a new Canada student grant program that will reach 245,000 college and university students. We will be helping over 100,000 more students from low income and middle income families than under the current system.
We are also providing $100 million for the Vanier scholarships, $21 million for Canada global excellence research chairs and $123 million to improve the Canada student loans program.
For seniors, this budget increases the exemption for employment earnings for those collecting the guaranteed income supplement.
For aboriginal Canadians, the budget provides: $330 million to improve access to safe drinking water; $43 million to improve child and family services on reserves; $70 million to establish a new framework for aboriginal economic development; and $147 million for first nations and Inuit health programs.
The budget also includes $22 million to modernize the immigration system to allow for speedier processing of permanent residents and shorten wait times.
As well, it includes $400 million to hire 2,500 new frontline police officers.
Needless to say, my constituents are interested in the impact the federal government's spending decisions have on their own province. I am happy to report that as a result of restoring fiscal balance British Columbia will receive $5.1 billion this fiscal year, an increase of $367 million over the previous year. This includes $3.3 billion through the Canada health transfer and $1.4 billion through the Canada social transfer.
For B.C., this transfer payment represents an increase of $400 million or 16% since the 2005-06 fiscal year. This is just further evidence of how our government is responding to the real needs of British Columbians. Not only are we putting more money into B.C. infrastructure, helping fight B.C. crime and working to improve the province's environment, but we are also giving the provincial government the money it needs to serve the needs of British Columbians.
This budget sends a clear a message about the importance of prudence in uncertain times. With increasing economic turmoil in the U.S. and elsewhere, it is more important than ever that Canada's government keep its fiscal house in order.
What Canada cannot afford is weak leadership and risky spending that will jeopardize Canada's fiscal position and the jobs that depend on it. Some would have us go down the path to higher spending, higher interest payments and higher taxes. That approach is misguided.
Our government is taking on challenges that require focus, prudence and discipline. The Prime Minister and our Conservative government will continue to set clear priorities and follow--