Madam Speaker, I am pleased to rise today to speak to the budget.
Our position is very clear. International markets have reacted favourably to this budget. Of course, the Reform Party feels that the cuts do not go deep enough. They wanted the government to slash more deeply. We remember the so-called budget they tabled a few days ago-I say so-called budget because it did not generate any positive comments. They tabled this document to convince Canadians that they were competent enough to bring down a budget. All this so-called budget did was to propose deeper cuts across the country.
And then this morning, the Bloc, the official opposition, said that we cut too much or not enough. I listened to their speeches with a great deal of attention and I am not sure that I know what they want. What do they want: more cuts, fewer cuts, different cuts? I do not know.
I have just heard a comment to the effect that the Bloc's suggestion that the size of government should be reduced was held holding to ridicule by the Liberals, and now we are told that we have finally realized that there was some fat to trim after all and made cuts. Is there not a glaring contradiction between these statements?
It seems to me that there is a glaring contradiction. If I am wrong, my hon. colleagues will no doubt ask questions and clarify their position. I would be only too happy. We find ourselves today stuck between the far right and the left-I would even say the far left at times. This is not a bad position at all.
What do the people of Manitoba have to say about this budget? I thought my hon. colleagues from both opposition parties might like to know. One paper ran the headline:"Grits Axe Spending". Another headline reads: "Western Diversification to Get New Look"; this is positive feedback. This one says: "Social Safety Net Rescued", a quote from the Minister of Human Resources Development.
And it goes on. "Tough Plan Boosts Buck, Raises Hopes". These words were not written by Liberals, I assure you. Also, "Federal Budget Turning the Corner". And this one, from Manitoba: "Budget Draws Applause". So, the response is generally positive in Manitoba. I can see my colleagues from the Bloc Quebecois are just thrilled by this positive response. I will list more positive responses in a moment.
I know how appreciative my colleagues from the Bloc Quebecois are when I mention them in my remarks, pointing out their glaring contradictions, demonstrating that the whole country, except for the official opposition party, can see some good in the budget just tabled. It is not just good, it is beyond being plain good.
As you know, this is a tough but fair budget. Not one region or group of individuals is affected unfairly. Many people are affected, but can you say they are treated unfairly? If so, please let me know.
The Minister of Finance made a special effort to distribute budget cuts equitably amongst the various regions. I must add that this budget takes necessary steps, and I stress the word necessary, to bring the deficit under control. These are the most severe budget measures taken by the federal government in fifty years. This will ensure that the deficit is going to be brought back to 3 per cent of the GDP by 1996-97.
Consequently, the budget exceeded the expectations of international traders. I should add that this is not the budget of a Conservative government. This budget does not make indiscriminate cuts: it redefines the role of the government, so that every department can concentrate on the priorities of Canadians. This is something important. We are going to do what we have to do.
I do hope that Bloc members will be pleased to see that, following the implementation of the measures announced in the budget, overlap and duplication will be reduced. Bloc members will surely be pleased to hear that, since they talk so much about that issue.
Moreover, unlike the previous Conservative budgets, we did not target the poor, absolutely not. The Liberal Party of Canada made a commitment regarding social programs.
Later this year, the Minister of Human Resources Development will table a bill on a significantly revamped UI program designed to better meet the needs of all Canadians.
Our government is also determined to provide fair, financial protection to our seniors, who have made such an important contribution to this country's development.
There is more. As I mentioned earlier, this is a tough budget but, according to most observers, it is also fair. To reach our
objective of deficit reduction, the following measures take effect immediately. That is very important.
First, the tax rate for large corporations goes up from 0.2 per cent to 0.225 per cent. As well, the surtax rate for companies increases from 3 to 4 per cent. Together, these two measures will generate additional revenues of $260 million annually. All large companies with capital assets exceeding $10 million will be affected by this tax rate increase.
The budget also provides for a temporary increase of the capital tax for banks and other large deposit institutions mentioned in Part VI of the Income Tax Act. That additional tax will bring in $100 million over a period of 20 months.
Another issue often discussed here in this House was that of family trusts. They were decried, but we are dealing with this problem. Family trusts will be eliminated as of January 1, 1999. The choice allowing one to postpone capital gains taxes according to the 21-year rule will be abolished.
The cancellation of that choice given the preferred beneficiaries will prevent people from using the trusts as an income splitting tool, a most profitable procedure.
My friends from the other side will no doubt be happy with these very progressive and, above all, fair measures. I can see it in their smiles. This is a measure they will applaud and praise.
There is no provision for income tax increases in this budget. I am surprised my colleagues have not commended on that. I am surprised they only pick out items that, according to them, will embarrass government.
I am also surprised that my colleagues from the other side have not mentioned that for each tax dollar, government programs will be reduced by $7. I am enormously surprised they have not mentioned one outstanding and very important point, which is fundamental to the process launched by the government, the fact that we ensure a simple and reasonable financing which will allow us to meet the needs of Canadians while cutting programs that are not absolutely essential.
I am also surprised they did not talk about RRSPs, an issue where we certainly found a reasonable solution. As you know, there were people on both sides: those who did not want any cuts and those who wanted RRSPs to be practically eliminated. What did the government do? It cut a little; they will be frozen and increased by 1,000 $ every year. Well-off people will be those mostly affected. I would have thought that my friends of the Bloc would have at least indicated that this was a step forward. Perhaps they will do so later on.
No taxation of dental and medical health programs. As you know, we all received letters from citizens throughout the country who did not want these programs to be taxed, and they were not. I would have thought that my colleagues across the way would have had something nice to say about that. Perhaps they forgot. It is quite likely that they will mention that very soon.
This morning I read various press clippings from everywhere in the country. I would like to quote some of them so that Canadians know about the feelings of people who are not in politics, who do not belong to any political party in the opposition, who are looking at it in a rational way in order to give Canadians some advice.
Here is from The Gazette : Belt-tightening Impresses Markets''. How interesting. AndOttawa aims to shrink deficit. Big spending cuts, modest tax hikes will be used to save $13.6 billion''.
There are others, and I know that my colleagues really appreciate the fact that I am sharing with them a rational point of view. The Globe and Mail says: Family Trust to Lose Deferment''. And it goes on, Mr. Speaker.Department Spending Reduced by 19 Per Cent'', Le Devoir , February 28. How interesting.
Then, a headline in The Globe and Mail says: ``Ottawa Axes Business Handouts. Subsidies Being Cut by Nearly $2.3 Billion over Three Years''.
Here, on the same page: "Women's Programs Dodge cuts". Surely, my colleagues are going to rise in favour of that measure. Let me go on. In today's edition of the Ottawa Citizen , one can read: ``Environment Groups Offer Rare Praise to Government''. How interesting.
Let me continue: "Average Consumer Escapes Brunt of Budget". That can be found in today's Gazette . The Toronto Star says: ``Liberals Cut Where Tories Didn't Dare''. How interesting, Mr. Speaker.
Let me continue further. Jeffrey Simpson writes, in The Globe and Mail : ``A Fine Start in Attempting to Escape the Deficit/Debt Trap''.
And on the other side of the page, still in the Gazette : Historic Budget Slays the Herd of Sacred Cows''. Then in today's edition of <em>La Presse</em> , one can read:L'économie peut de nouveau respirer''. That means that the economy can breathe again. ``Martin Budget Good First Step, but Canadians Still Face Tough Decisions''. It is true, indeed. But it is a step in the right direction.
Finally, and this is quite interesting, in a press release, chartered accountants say that they give 4 out of 5 to the federal budget. Four out of five!
This morning, opposition party members were giving us perhaps 1 or 2 out of 5. I am surprised that they did not find anything good about the budget. It is beyond me. I know that some people would like to find us to identify issues close to their hearts and would like to make recommendations to improve the situation with regard to those issues. I understand that and I respect that. That is the role of the opposition. However, I do not understand why they cannot find anything positive in the whole budget. It is beyond me.
One thing that also surprises me about the Bloc is that they think that there is a federalist hiding behind each reduction and each operation. They say that it must be a prereferendum strategy, that, yes, there is something there, that there has to be something there. They think that even if there seems to be nothing, there is surely something. They imagine that there is a federalist lurking behing each comma, each period, each word, each sentence.
The budget is reasonable, fair and tough and it is also sensitive to regions. When you take the position of the far right-
That is the Reform Party. I talk about the extreme right, the Reform Party. The Reform Party came forward with "a budget". Of course I did not see one positive comment from any responsible journalist across the country on it. The fact that it is going to sit here and criticize this budget perhaps lacks some substance in credibility.
Again I would invite its members if I am wrong to correct me. I would invite them as well to suggest how this document can be improved. That is the challenge I offer my colleagues from both opposition parties, the official opposition as well as the third party.
Do not just stand there and shoot at this budget. Stand up and make sound recommendations so that it can be improved for the benefit of this nation and for the benefit of all Canadians. That is the challenge.
I spent some time in opposition. I rather enjoyed it I must confess because one has a responsibility obviously to critique that which comes forward. That is fair. Surely the responsibility goes beyond simply taking particular issues where one feels that the government might be vulnerable or where one feels one might have a political advantage. I accept that. However, it goes beyond that and one has a responsibility to make concrete suggestions.
To my friends from both parties on the other side of this House, I would like to offer this challenge. We have a number of days to debate this budget and make progress. Criticize all you want in a constructive manner but please, make suggestions that will improve what has been proposed. Make suggestions which will meet the needs of Canadians everywhere and allow us to be much more sensitive than we might have been if we had not had a chance to share your ideas and your political wisdom had you chosen to use those qualities for something else than attacking this budget. I underline that it has been well accepted up until now throughout the country, but even more important, on international markets.