Mr. Speaker, the budget proves that this government has rejected the economic theories of the Reform Party and that it has put most of its emphasis on its belief, and quite rightly so, that what we are facing today in our economy is a crisis of revenue. It is not a crisis of expenditure as the Reform Party would like Canadians to believe.
At the next election we will be able to demonstrate to those who voted for the Reform Party that they placed their confidence in the wrong party. Let me stress the fact that the crisis of revenue is going to be tackled by this government by stimulating the economy, by creating jobs and by bringing back confidence in the economic system of Canada which for many years has been the object of decreased confidence. This has resulted in the formation of an underground economy.
The budget places an emphasis on increasing revenue through a number of initiatives, not believing that our economic situation can be remedied through cuts alone. It is an encouraging and well received statement by Canadians at large.
The budget also contains a green strategy, so to speak. It is modest but it is timely. It is the first step but it promises others because the minister announced changes that will encourage companies to contribute to mine reclamation funds, commitments to improve the tax treatment of a certain type of tax conservation equipment and enhanced incentives for newer and cleaner technologies.
The Minister of Finance announced that the strategy for encouraging the growth of environmental technology and services will be revealed later this year. These announcements outline the fact that there is a willingness and a commitment to turn our budget making into a green colour as the years go by.
There are many items that are still to be considered in future budgets. One is the introduction of green taxes. Time does not permit me to go into detail. Let me only say that a graduated taxation system which would recognize the environmentally friendly role of certain products would be helpful and well received by Canadians.
Lower taxes, for instance, for products approved by the environment choice program would be a highly desirable step which has been adopted in other jurisdictions. In the United States, to give members another example, there is an annual vehicle registration fee that is geared to the weight of the vehicle. There is a recognition that the tax system should reward those who use vehicles that weigh less and are more fuel efficient.
There is a whole range of initiatives that could be taken and I hope will be taken under the general heading of green taxation.
It is interesting to note, when it comes to natural resources, a white paper produced by the European communities a few weeks ago. It states: "Market prices do not incorporate sufficiently the limited availability of natural resources and the environmental scarcities related to their consumption". The result is a systematic overuse of our national resources. Here again a graduated taxation on a resource demanding products and services would serve as an incentive and would be highly desirable.
Next the minister announced in the budget speech his commitment to create a task force to examine certain subsidies and taxes which are harmful to the environment. They are commonly called perverse subsidies. Although they are well intended, over time we have discovered they are damaging.
This task force has a terrific opportunity to examine existing and major federal subsidies, programs, expenditures and the like, including federal-provincial agreements from the perspective of development and growth that is sustainable environmentally speaking.
There will be an opportunity for the task force to examine, for instance, the budget of the Canadian International Development Agency and the budget of the energy department. The incentives that have been and are being provided in agriculture, in forestry, in fishery and in trade will be examined with the hope in mind or with the intent of ensuring long term sustainability through fiscal and other measures, including policies in the field of energy. Fossil fuel subsidies and programs will be at the core of the particular task force.