Madam Speaker, it is a privilege and an honour on behalf of the constituents of Hamilton West to speak on Bill C-73, an act to provide borrowing authority for the upcoming fiscal year, and by logical extension the firm but fair budget tabled on February 27 by my hon. colleague the Minister of Finance.
In keeping with the principles of fairness as promised in the 1995 budget, it reflects the government's desire to cut the deficit primarily through spending cuts rather than massive tax increases, as suggested by the third party. This is substantiated by the fact that over the next three years there will be $7 in spending cuts for every dollar in new tax increases. Consequently the budget will have an enormous impact on Canada's ongoing economic recovery.
It should also be noted that in the process of creating the 1995 budget, the minister took care to obtain the input of Canadians right across this country. This was done by means of the prebudget hearings conducted by the Standing Committee on Finance.
These hearings were held in cities throughout Canada, including my hometown of Hamilton. I am proud to say that almost 90 per cent of the recommendations of the finance committee were accepted by the Minister of Finance and are reflected in the 1995 budget.
As chairperson of the House of Commons Standing Committee on Transport, I should also mention that our committee is currently assisting the Minister of Transport with a comprehensive marine review. As indicated in a recent post-budget document released by Transport Canada, "Transport Canada's New Direction and the 1995 Budget", the House of Commons Standing Committee on Transport is holding extensive consultations on the future of Canada's marine sector. It plans to submit a report of recommendations by the end of April.
The review focuses on identifying inefficiencies in the Canadian marine system and eliminating unnecessary and counterproductive waste and mismanagement in the marine sector. This will also help eliminate unnecessary federal government expenditures by examining ways to provide competitive and efficient marine services as part of an integrated transportation system.
The finance minister went to great lengths to accommodate the opinions expressed to him directly and indirectly by his parliamentary colleagues as well.
On January 6, I issued an open letter to the Minister of Finance on behalf of the constituents of Hamilton West imploring him not to increase personal income tax. Prior to the tabling of the budget we were on a break. When walking through the malls, on the streets or stopping in a coffee shop, my constituents told me that increasing personal income tax would impose an insurmountable burden on many low to middle income families. They also said it could have an adverse effect on federal revenue targets by creating an added incentive for underground economic activity.
Clearly, the Minister of Finance listened to Canadians as far as personal income tax is concerned. We did not see a hike in personal income tax in this budget. This budget is firm in its commitment to cutting government fat, but fair in sparing the flesh of essential government initiatives designed to stimulate economic growth and job creation in this country.
The notion of budget fairness is reflected in the minister's willingness to address the historically lopsided personal income tax contributions made by individual tax paying Canadians versus the amount contributed by large profitable corporations. In the last three decades the corporate share of total taxes collected by government has fallen while the share collected from individual taxpayers has almost doubled. In light of that fact, the 1995 federal budget also includes key measures designed to establish a fair and balanced system of taxation.
For example, there will be an increase in the corporate surtax from 3 per cent to 4 per cent, as well as a 12.5 per cent increase in the large corporations tax. Furthermore, in a year when major Canadian banks reported record profits in the billions, the 1995 budget imposes an immediate increase in the existing tax on capital of banks and other large deposit taking institutions.
For the edification of the naysayers across the way, it is worthwhile to consider the opinions expressed by various reputable organizations and individuals across the nation who have expressed their support for the measures announced in the 1995 budget.
Let us go to the editorial in the Wall Street Journal : ``Canada's bold budget ought to be an inspiration to other countries struggling with overextended governments''. This is for the naysayers across. We have been listening to the Reform Party go on and on about how terrible this budget is, how awful this government is and how we do not know what we are doing.
All that is outweighed by the people who do know a little something about economics and I am sure they are not Reformers. An editorial in the Financial Times of the U.K. says: ``The Canadian budget announced on Monday brings the country back from the brink of fiscal disaster. Mr. Paul Martin, the finance minister, appears to have achieved a skilful balance between the increasingly onerous demands of investors and those of his constituents''.
An excerpt from a Reuters AFP news report in The Strait Times , Singapore's most widely read daily, states: ``Economists praised the government's efforts generally, saying it was perhaps the first serious attempt by a Canadian government to get a handle on spending''. I know that one-half of the former Tory government who is sitting in the House today would appreciate a remark like that.
How about William Dudley, an economist with Goldman Sachs, who stated on CBC Radio: "In the end you would have to say that the government has definitely gotten the message that this consolidation is required and the financial markets, I think, have to reward Canada for that". That is pretty good stuff for the government.
If that were not enough, the budget has also been endorsed by the Chartered Accountants of Canada, an organization representing 55,000 chartered accountants. It seems reasonable to assume that these people would know a thing or two about getting one's fiscal house in order. What are they saying? The Chartered Accountants, the 55,000 represented, state: "We are pleased that finance minister Paul Martin has cut spending in significant ways. In particular, the seven to one ratio of cuts in spending to taxes should signal to investors that government is addressing our fiscal situation".
Here is the one I like: "We are very pleased to note the government has not taken any drastic measures to impede the ability of Canadians to save for their own retirements. The budget brought down challenges Canadians to continue to seek to redefine the appropriate role and scope of governments as essential steps toward fiscal stability".
That is something we can be proud of. Despite the previously stated, let us say, expert opinions in the province of Ontario, Premier Bob Rae has been playing Chicken Little with the federal budget. According to that premier, the sky has been falling in Canada since February 27 when the federal budget was tabled in this House.
In response to this government's attempt to finally get this nation's fiscal house in order, Rae states that the budget will bring about "a historic change that literally ends the Canada that we have known and sets us on a much meaner course". This comes from a man who clearly knows little or nothing about managing public funds.
It is worth noting that in 1991 Ontario's accumulated provincial debt was 15.5 per cent of Ontario's GDP. This spring, Ontario's debt is expected to balloon to almost 30.5 per cent of provincial GDP. Clearly if the sky is falling, it is falling on the provincial NDP government in Ontario.
In closing, for all the doom and gloom of those who may be questioning the character of the Liberal government and in fact Liberalism itself, I quote a great Canadian and a former Prime Minister of Canada, the Right Hon. Sir Wilfrid Laurier who once said: "I am a Liberal. I am one of these who thinks that everywhere in human terms there are abuses to be reformed, new horizons to be opened up, and new forces to be developed".
I am proud to say that this government is holding true to that enlightened Liberal vision.