Mr. Speaker, through the course of today's debate much has been said about specific elements of this budget. I would like to take a few moments to put our discussion into context by reminding hon. members that the broad direction of the budget is one that has been described by the president of the Canadian Chamber of Commerce as headed in the right direction and very specific about how to get there.
This budget addresses three vital challenges. The first is to build a framework for economic renewal. The second is to restore fiscal responsibility and the third, to ensure long term viability of our social programs.
The budget takes a balanced approach to these goals because they are the foundations for what Canada needs most, growth and jobs. This budget is the first stage in a two stage process. The direct actions taken today will be followed by extensive policy reviews leading to further action in the future.
The government has taken concrete action to meet the urgent need of creating jobs and revitalizing our economy. Canada as we all know has just passed through a difficult recession. That is why we are taking immediate action to restore consumer confidence and spur growth, action such as our national infrastructure program.
Currently in New Brunswick as in other provinces we are determining the first projects to receive funding from the $153 million to be spent in our province over the next three years. This government has also announced strategic measures to help Canada compete and prosper in the new economy. This budget, for example, takes action to assist small and medium sized businesses, the driving force behind job creation in our fast evolving economy. Measures including reduction of regulatory and payroll tax burdens as well as improved access to capital and new technology are essential for continued growth and job creation in the new economy.
In keeping with the vision of this budget the standing committee on industry has begun a study on the access by small and medium sized business to new and traditional sources of financing. In the past weeks this committee in keeping with the government's pledge to consult with Canadians has heard testimony from small and medium sized business owners from across the country.
I am pleased to note that a number of Atlantic Canadian business people have come forward to give excellent testimony on this very important subject. Small business people know how hard it is to get a modest loan and this committee wants to see how the government can help.
The budget takes decisive action to bring the deficit down now and set the country on a realistic path toward a responsible target of 3 per cent of the GDP in three years, a target that no Canadian government has reached for 20 years. We will accomplish this mainly from expenditure reductions. In this area this government is leading by example.
Bill C-17, for example, freezes the salaries of members of Parliament. Over the next three years net savings from all spending cuts will reach $17 billion. This represents the most extensive program of net spending reduction of any budget in more than a decade.
We still have work to do. Even with last week's encouraging news of the largest monthly decline in the unemployment rate in 10 years, we still have too many Canadians out of work. We have an economy where one in six children lives in poverty and where social programs that were once the envy of the world no longer
meet our different needs and have outrun our ability to pay for them.
This budget sets the stage for a historic modernization and restructuring of Canada's social safety net over the next two years. The goal of this reform is to provide modern and sustainable programs that respond to contemporary needs like skills training and incentives to work.
The budget takes a critical first step toward this broad goal by initiating concrete action in two major expenditure areas: unemployment insurance and federal transfer payments to provinces in support of social programs.
Rising unemployment insurance premiums for business are a major obstacle to job creation. The changes to UI announced in the budget will lower premiums and provide the creation of more jobs. As the president of the Canadian Federation of Independent Business said: "It is a huge incentive for small business to create business".
In the recent past federal action toward the provinces appeared to be based on a strategy of sneak attacks, confrontation and denunciation. This led to federal-provincial relations increasingly charged with tension. This budget rejects this approach. Instead it provides for predictability and modest growth in equalization transfers during the timeframe for social program reform.
Throughout the course of the reform process the federal government will work with all of the provinces to redesign our social programs. We will co-operate in studying reforms and testing new approaches with extensive consultations with the public to receive their input along the way.
In the province of New Brunswick we recently announced co-operation agreements between the federal and provincial ministers to find new ways for making a better Canada: a youth jobs strategy program at CFB Gagetown to allow young people between the ages of 17 and 24 to receive skills training in different trades; the New Brunswick job corps program which provides a guaranteed income for participants in return for volunteer services. This program is targeted at individuals over the age of 50.
As the finance minister for Newfoundland said recently, all of us and every province in this country have to be part of the solution to the Canadian problem.
The spirit of federal-provincial co-operation I have described extends beyond the budget measures relating to social security transfers. Despite the co-operative and constructive approach this budget takes toward the provinces, some hon. members have expressed concern about the regional impact of specific measures. As a member of Parliament from Atlantic Canada, I believe I can bring an important and constructive perspective to this critical issue. I say this because we in Atlantic Canada realize the scope of the national problem and we know that to correct it, tough decisions have to be made.
We know we must look forward to the new opportunities provided for in this budget, opportunities like the infrastructure program and our experimental job corps, opportunities that get business working in the proper climate to create the jobs and economic security we need for the 21st century.
We in Atlantic Canada recognize the importance of taking control of our own destiny. We are spearheading the move to lower interprovincial trade barriers and have truly free trade Canada within Canada.
In concluding, I would say that this budget has been described as a road map to the future. It takes measurable, bottom line action to help build the future opportunity and solid growth. It does so with rigour but also with compassion and creativity. Therefore I urge all hon. members to support this bill.