It is a pleasure for me to participate today in this most important pre-budget debate. I would like to begin my remarks by saying that this debate shows the government's commitment to listen to the opinions of Canadians as well as to make Parliament a more relevant institution.
The budget being prepared by the Minister of Finance will be the most widely discussed budget in history. The previous government left the country in a desperate financial situation. Their economic policies increased unemployment and caused corporate profits to decline. As revenues declined, spending on items like unemployment insurance and social assistance increased.
With a budget deficit of $46 billion, Canadians and this government are faced with some very difficult choices. Do we raise taxes, reduce spending, cut services, or let the deficit increase? Whatever decisions are made, they must be fair to all Canadians in all regions.
The people in St. John's West are facing a number of challenges. Unemployment is very high, business confidence is low, the fishery continues to decline and people are burdened with personal income taxes.
The crisis in the east coast fishery is a problem for all Canadians. It is not just a concern for Newfoundlanders. The fisher people and plant workers are not to blame for the situation they find themselves in. The previous government mismanaged the resource and pulled the rug out from under the people who depend on the fishery for a living.
As people adjust to the new realities of the fishery they need support. The former government set up a short term assistance program that is due to run out in a few months. What people need is a co-ordinated, long term assistance plan that will meet the needs of those involved in the industry.
The people affected need income assistance to compensate for some of their lost income. Useful retraining programs are a must for those who choose to leave the fishery. As well, more research on conservation and certain harvesting methods is necessary to ensure the future health of the entire industry.
The half-measures taken by the previous government simply will not do. I am confident the ministers of fisheries, human resources and finance will design programs that meet the needs of Newfoundlanders and still keep within the government's tight financial situation.
There has been a lot of talk recently about tax increases and broadening the tax base. Increasing the tax base is not a tax grab by government. It is a way to ensure that all Canadians pay their fair share of taxes.
For the past few years Canadians have seen their incomes decline and taxes increase. Consideration should be given to measures to ensure that wealthy individuals pay a fair share of taxes. RRSPs are a common tax loophole that many people will take advantage of. While governments should encourage people to save for their retirement, it is a fact that the more money they have the more likely they are to make use of RRSPs to reduce their taxes. Tax reductions for RRSPs should not be eliminated, but we should look at lowering the ceiling and reducing the tax break to those who are better off.
The number one priority of the budget must be job creation and measures to put Canadians back to work. The people of my riding are eager for the infrastructure program to move into high gear. I applaud the Prime Minister and the Minister responsible for Infrastructure for their efforts in getting this off to a quick start. However there is a greater need for job creation.
The federal government can do a great deal to stimulate job creation directly. It cannot create every job we need. That is where small businesses come in. Small business is the engine of the economy. Unfortunately the previous government did a terrific job of hurting small business owners and keeping them from doing what they do best, creating jobs.
A mixture of the GST, high interest rates, tight credit and problems with the Small Businesses Loans Act put a crunch on small businesses, preventing them from expanding or hiring new employees.
Our new government needs to address these problems. Small businesses need an understanding federal government. Businesses need access to capital to fund product and market development. The GST must be replaced with a tax that is easier for businesses to collect and that reduces the growing underground economy. Only when small businesses find their feet will the economy really begin to pick up.
All measures of the budget should be designed to increase employment. When people start working once again they will start paying taxes again. The biggest problem faced by the government is not where to cut or increase taxes. The biggest problem is the lack of people working and paying taxes. Instead of people drawing from the system, we need to have them paying back into the government purse.
The finance minister has a difficult job ahead as he tries to balance the need of Canadians to work and the government's need to reduce the deficit. The constituents of St. John's West are watching. I know the minister will do his best to strike the balance that is necessary to get this economy rolling once again.