Mr. Speaker, I am pleased to stand in my place today and speak in support of the budget brought down on February 22 by my hon. friend and colleague, the Minister of Finance.
We should congratulate the minister on his first budget since this government assumed office. He has steered a wise and careful course. He has set in motion a measure which will lead to major changes in the years to come.
As members are aware the Minister of Finance consulted widely with Canadians before he brought down his budget. It is clear that he was listening. I can tell because I have been listening to my constituents and to the people of Prince Edward Island.
They told me they want action to build the economy and create jobs. They want a social security system that is fair and compassionate, but they also know that Canada needs social security that is affordable. They told me that government has to get its finances in order.
This budget responds to those concerns. It sets the foundation for growth and jobs in the future. At the same time it balances the need for social reform and deficit reduction.
I know many veterans were concerned about the impact this budget might have on them. These men and women have served our country well. They devoted the best years of their lives to Canada and they have personal memories of the devotion of comrades who made the final sacrifice for Canada and the values we hold dear.
I can tell members there is no group of Canadians more passionately concerned about Canada's future than our veterans. There is no group more outspoken about our need to preserve our quality of life. I know that veterans across Canada welcome the measures to reduce government spending.
We are going to launch a review of the government's operations so we can get things done more efficiently. We are going to look at all our programs and find out where we can reduce overlap and duplication.
In Veterans Affairs Canada we will be looking at our own operations. That is how it should be. We are going to find ways to trim administrative costs just like other departments in government.
However, we are not going to touch veterans pensions or allowances. We want to ensure that veterans who need and are eligible for benefits receive them. Veterans deserve their pensions and allowances and this is the time when many veterans need them most. As they grow older many veterans rely on us to maintain the quality of life they so richly earned.
All members in this House have veterans in their constituencies. I am sure no matter what region of the country they come from hon. members will recognize the fairness of the government policy to provide for veterans. It has often been said that Canada provides veterans with the finest package of veterans benefits in the world. We are second to none.
I would like to take a few minutes to talk about my own region, Atlantic Canada, and what this budget means to my home province of Prince Edward Island.
I am very proud that this budget contains provisions to locate a demonstration project in Prince Edward Island. This joint undertaking by the Department of Human Resources Development, the Government of Prince Edward Island and the Canadian Association of Community Living will look at ways to create opportunities for individuals with disabilities.
Canada cannot ignore the potential of its citizens who have disabilities, not at a time when we need everyone to contribute his or her skills to building Canada's future. The government hopes that what is learned with this project in Prince Edward Island can be applied in other areas for other persons with disabilities.
Another budget measure many of my friends, neighbours and constituents in Prince Edward Island have talked about with me are the changes to the unemployment insurance system. As this House knows these changes are the first step in a bigger strategy
to reform social security in Canada so that it is both fair and affordable.
Above all we have to rebuild the system so it does not make it harder to create jobs. A good job is the best social assistance available to any person in this nation. Therefore some of my constituents welcome the steps we have taken in the budget to reduce the cost of UI to employers.
Unemployment insurance is a payroll tax. If it is left too high it kills jobs. Back in 1989 the unemployment insurance premium was $1.95. This year it is $3.07. Maximum premiums have more than doubled for employees. They have more than doubled for employers as well.
These are taxes. Most important these are taxes on small businesses. In my province of Prince Edward Island virtually all businesses are small businesses. My constituents cannot afford to see the UI premiums increased. The small businesses in P.E.I. need some relief from taxes so that they can get on with the job of creating jobs.
That is why so many of my constituents support the budget measures to roll back UI premiums to $3 next year. That is a substantial tax cut from the $3.30 that would be in place if this government had not made that move.
At the same time many Prince Edward Islanders rely on unemployment insurance payments to help them get by until they find work again. These are tough measures for those who are on unemployment insurance and I am not afraid to admit it.
My constituents agree they would certainly rather be working than on unemployment insurance. We are going to do what we can to use the social security system, including unemployment insurance, to help Canadians get back to work.
In the meantime, we know some people rely on UI not only to take care of themselves while they look for another job but they also must look after dependants. That is why the budget improves UI benefits for those who need them most, people who have to take care of a child or a needs parent, or who support a non-working spouse.
After the budget changes to unemployment insurance are in place Atlantic Canada will still receive more unemployment insurance per capita than anywhere else in Canada.
Unemployment insurance recipients in Atlantic Canada will receive an average of $970 compared with $540 elsewhere.
It shows that the government recognizes the special needs of a region where chronic unemployment presents special problems. Nowhere are these more evident than in the fishing industry.
The previous government did nothing to provide funding beyond May 15 to assist those individuals whose livelihood comes from the Atlantic ground fishery. This budget provides for an Atlantic ground fishery industry renewal and adjustment strategy for help over the long term.
This government is working hard to find a method of supporting some 35,000 Atlantic Canadians who will have no income after the current program expires. The Minister of Fisheries and Oceans and the Minister of Human Resources Development are working on measures that will treat these people fairly and with dignity.
I have spoken about some of the measures in this budget that affect the people in my home province of Prince Edward Island and in the Atlantic region as a whole. I have talked about what Canada's veterans can expect from this budget.
There is one message I hear loud and clear from my constituents and from veterans. It is that Canadians know that we need to change the way government operates and they want to have a voice in the way these changes will be made.
The government is on the road to a new approach to job creation and social programs and we are going to make sure that Canadians have a voice in how those changes will be made.
The budget represents the first phase of major reform and the government looks forward to our continuing discussions with Canadians on how best to reshape our great country to meet the challenges of the next century.