Mr. Speaker, I am pleased to add my support to Bill C-76.
The government has done its very best in the last two budgets to avoid any increase in personal taxes. Every $1 we raised in additional taxes was matched by $7 in spending cuts in the 1995 budget and $5 in cuts in the 1994 budget. Taxes on corporations were increased and the highly profitable Canadian banks will
pay a temporary surtax on their capital. All together, new taxes on corporations will raise an additional $974 million this year.
These measures are in addition to the improvements we have made to the tax system in the 1994 budget in which where we reduced the amount businesses could claim for meals and entertainment from 80 per cent to 50 per cent and we eliminated the $100,000 capital gains tax exemption which primarily benefited higher income Canadians.
During the prebudget period hundreds of Brandon-Souris constituents contacted my office and also made indirect contacts with the ministry. They sent all of us on this side of the House a message that the Liberal government must take strong action to break the back of the deficit. Great improvements and great strides have happened in this regard.
The preference for deep cuts in government spending versus any increase in personal taxation was stressed and our government responded accordingly.
I believe Bill C-76 is tough but fair. The finance minister worked hard to ensure balanced spending reductions and that the burden of deficit reduction is shared as evenly as possible in all regions.
The Brandon-Souris area is no exception. We did experience some reductions in personnel. Our weather station was closed. Those who work in Shilo will experience some job losses. However, this is being eased to some extent by the program put in place by various departments.
The elimination of the Crow rate is probably one of the most difficult for many farmers in our area to handle but many regard the transition as necessary.
Our government has cut spending dramatically but in a way consistent with the value of Canadians, promoting jobs and growth, protecting the most vulnerable members in our society and cutting at the government level first. Bill C-76 reflects the government's commitment to reducing government spending now while the economy is still in a growing cycle.
Decisive action today will ensure continued strength of the Canadian economy, protecting future jobs and prosperity. The decisions made with respect to agriculture will ensure Canadian farmers can take the best possible advantage of new global trade opportunities. Farming is best done by producers, not governments. That is why Bill C-76 is putting decision making back into the hands of the farmers.
We are expanding export markets and helping to create new domestic markets for commodities farmers across the prairies produce. How are we giving producers more control over their environment? Bill C-76 ushers in great improvements for Canadian farmers. The prairie grain cash advances would increase by $34 million. Cash flow enhancement programs would increase by $27.5 million. The NISA program would increase by $102 million. Transition programs to whole farm support for beef, lamb and hogs would increase by approximately $6 million. A matching investment initiative will increase by $12.7 million. Expanding export markets would increase by approximately $900 million. Further efforts are being made to expand the ethanol programs, and food safety would increase by about $5.8 million.
One of the most symbolical changes in the budget is the Crow rate. It has been recognized the Crow has caused some distortions and some inefficiencies both for the producers and for the transport companies. That will soon change. The Prime Minister was correct when he said that given half a chance farmers do not want subsidies, they want access to markets and they need and want fair prices.
It is the intention of the government to help farmers across the prairies do what they do best, feed the world, to diversify and to make a decent, honest living while doing it.
I believe the removal of the Crow rate will lead to increased value added production in the prairies over time. The circulation of billions of dollars and now the incentive to add value to agriproducts will provide opportunities and financing for the food processing industry in pasta plants, ethanol plants and many more we have not as yet conceived.
People learn to adjust to new opportunities and Manitobans have traditionally been trend setters in new markets. Clearly details need to be worked out, especially on pooling issues.
There is some concern regarding compensation for land values and how land owner payouts will be reflected in new lease arrangements on the approximately seven million rented acres in Manitoba. The reform of the WGTA will not be easy. The issues are complex but I am confident the minister will continue open discussions and that the $300 million transition adjustment fund will be used as effectively and efficiently as possible. The western economy will be stronger and more diversified with the removal of the WGTA.
It gives me great pleasure to bring forward two endorsements to the WGTA program, endorsements which are rather difficult to pry out of some with different political views from those of us on this side. It is sometimes very difficult to endorse or change an idea one does not have the courage to do oneself. I am pleased to indicate to the House that the first endorsement came from the Manitoba agriculture minister. He said that changes to the WGTA would rejuvenate the rural economy of Manitoba and would lead to an added value approach to farming and the development of job intensive processing industries.
The second endorsement came from one of my opponents in the 1993 election. He was in Ottawa this week. He said that the payment to landowners represents a reasonable compromise. It is not often that the three of us agree on anything, but miracles do happen in Manitoba and a miracle did happen in this instance.
Let me reiterate that although the government has cut spending dramatically, it has been done the cutting in a way which is consistent with the values of Canadians, promoting jobs and growth, protecting the west, protecting the most vulnerable in society and cutting the government purse.