Madam Speaker, I am pleased to take part in this very important budget debate.
This is a budget that all Canadians can and should be proud of. It is a balanced budget in two ways. Not only is this our third consecutive balanced budget, but the promises made in this budget are also balanced. We have balanced the need to deliver tax relief and to repay the debt with the need to maintain our valued social programs.
Once again the federal government has proven that its commitment to fiscal responsibility is unshakeable and that this commitment does not prevent us from helping Canadians in need. On the contrary, it is because of this sound financial management that we have continued to improve the quality of life for all Canadians. Like the budget says: better finances, better lives.
Last fall I conducted a prebudget survey in my riding of Guelph—Wellington. I asked my constituents to identify their priorities for the 2000 federal budget. Their concerns were health care, tax cuts, post-secondary education, the environment, infrastructure and children. The government listened to our concerns and acted on them. Every single one of the priorities identified by the constituents of Guelph—Wellington has been addressed in this very budget.
Our health care system has been a source of national pride for many years. Guelph—Wellington chose health care as one of its top priorities and so did the federal government.
The provinces will receive an additional $2.5 billion through the Canada health and social transfer. This is the fourth consecutive time that we have increased funding for the CHST. In the last two years alone we have increased the cash portion of the CHST by 25%.
Here is another important figure. This year funding for the CHST will reach an all time high of $31 billion. Obviously the federal government is committed to health care. This is the highest amount ever that has been transferred to the provinces.
It is very important to emphasize this point because of false accusations made by Ontario's provincial government that we are not doing enough to fund health care. It is true that the federal government had to make some difficult decisions to reduce the deficit, but it is also true that federal transfers to the provinces in both cash and tax points are higher today than when we took office.
We have pumped an additional $4.4 billion over five years into health care in Ontario since balancing the budget. The Ontario government promised that every single penny of this money would go directly to health care. I certainly hope that the Ontario government lives up to its promise, instead of doing like it has in the past, using federal funding to pay for its tax cuts.
The federal government is also committed to post-secondary education. In addition to the $2.5 billion increase in the CHST funding, the federal government will increase the tax exemption for income, for scholarships, fellowships and bursaries from $500 to $3,000, meaning that there will be no federal tax on the average $3,000 millennium scholarship.
The federal government will also provide $900 million over five years to fund and sustain 2,000 21st century chairs for research excellence at Canadian universities. Funding for the Canada Foundation for Innovation will increase by $900 million as well. Research will also be supported through $160 million for Genome Canada and $90 million to improve Canada's ability to regulate biotechnology.
All of this is great news for the University of Guelph, its students and its faculty. The money is intended to help, and I sincerely hope that the Ontario government will use all of it for this purpose. Ontario tuition rates are the highest in the country and Ontario also spends the least per capita on post-secondary education because of the provincial government. Ontario has also chosen to claw back the Canada millennium scholarships, money intended to make post-secondary education more accessible. Instead of giving the money to the students in Ontario, it is using the money to fund its Ontario student opportunity grant.
It is important to point out all of this so that we can set the record straight about what five years of Premier Harris' style of governing has done to Ontario and to his residents.
On the other hand, the last seven years under this federal Liberal government have been very good for Ontario and for Canada. We have eliminated the deficit, balanced the budget and have started to pay down the debt. In short, we have turned the economy around. Thanks to the hard work of Canadians and sound fiscal management, we have been able to maintain our valued social programs and deliver tax cuts without borrowing a single penny, unlike the province of Ontario which chose to cut taxes before balancing the budget and as a result has increased its deficit by $14 billion. Ontario gave a tax cut and borrowed money.
Budget 2000 introduces the most important structural changes to the federal tax system in more than a decade. These changes will deliver at least $54 billion in tax relief by 2004 and will benefit all Canadians. Bracket creep will be eliminated by fully indexing the personal income tax system. On average, Canadians will see their personal income taxes reduced by 15% annually. Low and middle income Canadians will see an annual decrease of 18% and families with children will see a 21% drop.
Tax brackets have also been adjusted. The middle tax rate now begins at $35,000 as opposed to $30,000, and the top rate at $70,000 as opposed to $65,000, and the middle income tax rate will be cut from 26% to 23%.
Investment and entrepreneurship will be further encouraged by lowering the capital gains tax and decreasing corporate taxes. The foreign content limit for RRSPs will also be increased from 20% to 25% and then to 30%.
These tax cuts will benefit all Canadians but especially families with children. These changes will affect things like GST credits and the Canada child tax benefit. We are also helping children by allocating another $2.5 billion to the child tax benefit increasing it to more than $9 billion annually.
Maximum benefits will reach $2,400 for a family's first child and $2,200 for each additional child. Parents of children with disabilities will also receive additional assistance through an increase in the disability tax credit. We are concerned about our children's future and are making concrete investments to ensure that every child has the best possible start in life.
One way we can do this is by protecting the environment. To this end, the federal government will integrate environmental and economic policies through the development of new technologies and sustainable practices. Budget 2000 will invest $700 million in such initiatives as climate change action funds, a sustainable development technology fund, a green municipal investment fund and the national strategy on species at risk. Guelph—Wellington has always been a leader in environmental technology, and we will definitely benefit from these initiatives.
The federal government is also making a significant investment in new physical infrastructure. Most of this funding will be directed to municipal infrastructure and highways, both issues of interest to Guelph—Wellington. The Guelph council and mayor want this infrastructure program. They feel they have benefited in the past from it, and they will benefit in the future again.
We have listened to Canadians and balanced the budget first before cutting taxes. The first tax cuts went to those who needed our help the most. In last year's budget and in this budget we extended those benefits to all Canadians. This is responsible, fair and permanent tax relief.
To the critics who say that we did not fund social programs enough, I remind them that health care and education are shared jurisdictions. We give money to the provinces and they deliver the services. In Ontario, the Harris government chooses to claw back this money rather than use it to help people.
The hon. Minister of Finance has said that there will be more money for health care if the provinces are willing to come to the table. We also need assurances from Premier Harris that this money will not be used to fund his tax cuts as it has been in the past.
I am proud of the budget. It is good news for Guelph—Wellington and for all of Canada. We have done what we said we would do and we have done it well. Together we will continue to improve the quality of life of each and every Canadian.