Mr. Speaker, the hon. Minister of Finance has tabled the budget Canadians asked for, a budget that is tough but fair, that will allow us to gain control of our deficit, one that has been growing out of control for decades.
We cannot afford to repeat these mistakes. Our government has looked to the future. It could be one in which Canadians are told which services they can and cannot afford by foreign creditors or it can be a future in which Canadians decide their priorities and watch them flourish. The government and the majority of Canadians have chosen the latter.
Our government has taken the necessary measures to ensure Canada's future will be bright and prosperous. Tough decisions had to be made and they were. Our government has produced a plan that is viable and attainable.
I would like to quote from the red book which is often used by opposition parties. Where our policy on Canada's fiscal situation was first outlined it says a Liberal government will adopt a two track fiscal policy, matching a drive for jobs and growth with a comprehensive approach to controlling debt and deficits. That is on page 16.
This is exactly what has been done, from our government's agenda of jobs and growth to the budget tabled by the Minister of Finance.
In producing this budget the minister has taken the time to solicit views of Canadians and all members of Parliament and has reacted to their concerns in delivering a budget that re-established its goal to meet the financial commitments and obligations, the same commitments made during the election campaign and reinforced during the 1994 budget.
The plan outlined by the hon. Minister of Finance will break the back of the deficit and enable us to reach our goal of 3 per cent of gross domestic product by 1997.
Projections indicate that our goal will be exceeded this current fiscal year when the deficit is expected to fall as low as $38 billion, $1.7 billion below our target of $39.7 billion for the end of the fiscal year.
As I listened to the Minister of Finance deliver his budget I realized that it reflected the message impressed upon me by constituents in Carleton-Charlotte. It was the same message impressed upon MPs across the country, including the Minister of Finance.
Canadians want to get their debt under control. They want to achieve this through cuts in government spending. The government has heard this message loud and clear. For that reason we have committed to cutting $7 in expenditures for every $1 in increased revenues.
To ensure fairness in the tax system, the government has closed a number of loopholes that benefit large corporations and banks and has avoided increasing the burden on individual and middle class Canadians and their families by refusing to increase personal income tax.
In 1994 a department by department review of all government programs was initiated in which every expenditure in each department was reviewed. As promised, the results of that review were announced in this year's budget.
The government has redefined its own role to ensure that departments focus on the priorities of Canadians. The new government operations will be smaller but more effective and more efficient.
This government has had the foresight to realise that small and medium size businesses are the future of growth in Canada. For this reason the $500,000 capital gains exemption has been maintained for small business and for farmers. Similarly, only minor changes were made to registered retirement savings plan contributions which benefit many working in this sector.
Government spending has been cut dramatically but in a way consistent with the values of Canadians, protecting the most vulnerable in society and cutting government first.
As I mentioned earlier, the budget also promotes the government's agenda for jobs and growth. In 1994 well over 400,000 new jobs were created, most of which were full time, permanent jobs. The economy grew at 4.5 per cent, the largest economic growth of all the G-7 countries. This type of growth will continue to flourish in 1995 as a result of the measures taken in the budget.
I quote from an article in the Ottawa Citizen on March 2:
The boom is back. And, at least temporarily, without inflation. The economy, fuelled by exports and consumer and business spending, steamed ahead at a robust 4.5 per cent pace last year, Statistics Canada said Wednesday.
And growth in the final quarter of 1994 was at a torrid annual rate of 5.9 per cent, the agency said in its latest report card on the economy, which suggests there is more growth to come, the analysts said.
The following quote was also published in the same issue:
The Wall Street Journal , one of the coolest critics of Canada's economic policies, has been warmed a few degrees by the new budget. The influential business newspaper said in an editorial Wednesday that the finance minister's budget ought to be an inspiration to other countries struggling with overextended governments.
The minister has obviously listened to Canadians from Carleton-Charlotte and from across Canada and delivered a budget they wanted; a budget that is tough but fair and will be implemented equitably.
We can now look forward certainly to a better tomorrow for all Canadians in the future as a result of the budget tabled by the Minister of Finance in the House.