Mr. Speaker, the debate that has been taking place has been very helpful and useful to all members of Parliament in expressing some views on what has happened within the House over the past three years. The debate has actually changed to a debate on what is the record of achievement of the government and what is the reaction of the opposition parties to that.
The national political party, the Liberal Party, presented its detailed election platform in a red book. I recall during the election campaign that the Prime Minister was grilled on that book, on each and every point, particularly on page 111, the page where the financial specifics were included regarding the cost of the various programs and the commitments that the government was going to make.
I will never forget that the Prime Minister said to all openly and publicly that during the mandate we would be able to go through the red book page by page by page, point by point, dollar by dollar to see where we were in terms of the commitments that we made and the record of achievement that we have made.
At this point, the government has indeed put forward a report on its level of achievement on its campaign commitments. If members would look carefully, they would find within that book several sections that indicate areas where the government has gone beyond those platform undertakings, and other areas that were not specifically committed to but on which the government has made significant progress in the first three years of its mandate.
The primary areas of the platform had to do with the creation or stimulation of an environment to promote job creation and economic growth. Our approach to restoring the health of that has been measured, deliberate and responsible. The approach has been balanced: carefully reducing spending, restructuring government and strengthening the economy. Using rolling two-year targets is the right way to reach our ultimate goal of eliminating the deficit. It keeps the government's feet to the fire.
The deficit for 1995-96 was $28.6 billion, $4.1 billion below our target. This is the second year in a row that we have beaten our targets. We are on a clear path to fiscal health. We are also on a track to meet or better our deficit target of $24.3 billion in 1996-97 and to meet our deficit target of $17 billion in 1997-98. Our deficit target for the following year, 1998-99, is $9 billion or 1 per cent of GDP.
This is down from $42 billion or 6 per cent of GDP when we took office. We have reduced the deficit by $33 billion or nearly 80 per cent in those five years. It will mean that in 1998-99 the federal government will no longer have to go to the financial markets for new borrowing requirements. That is the way most G-7 countries, including the U.S. and the U.K., measure their deficits.
We have used spending cuts, not tax increases to reduce the deficit. Spending cuts in the last three budgets account for almost 90 per cent of actions taken to bring down the deficit. By 1998-99, program spending will be 14 per cent lower than the peak level of the 1992-93 year. Program spending will then represent only 12 per cent of GDP, its lowest level since 1949-50. Between 1993-94 and 1996-97, the percentage decrease in federal program spending will be three times larger than the percentage decrease in overall provincial program spending.
Reducing the deficit is essential for job creation and growth. Our strategy is beginning to pay off. The government's number one priority has been and continues to be job creation. Getting interest
rates down is the most effective way for the government to help create jobs. There is no more effective way to get interest rates down than to get government finances under control. The strategy is already beginning to pay off. Short term rates are down by more than 4.5 percentage points since early 1995. They were 2.5 percentage points above the U.S. rate in early 1995 and they are a full 1.5 percentage below.
Canadians interest rates are below the U.S. rates for maturities up to five years. Except for five weeks in early 1994 the bank rate has not been at its current level of some 4 per cent or a little lower now, down to 3, since October 1964.
Lower interest rates produce real savings for Canadians. That is an important point. Earlier this day one of the members said: "We don't need lower interest rates. We just need tax cuts". Lower interest rates to Canadians are effectively a tax cut because they put real dollars after tax in the pockets of all Canadians. In fact, consumers are saving almost $500 annually on a $15,000 new car loan over a four year term. To someone renewing a $100,000 mortgage this means saving over $3,000 annually.
A new report by the Royal Bank says that owning a home is the most affordable it has been in 10 years. Payments on a five year $100,000 mortgage now costs $765 a month.
In 1990 the same mortgage would have cost more than $12,000 and according to the report that is equivalent to getting an $8,000 raise. Clearly the economy is improving.
Two hundred and twenty thousand jobs have been created in the private sector since last November, housing starts and resales are up sharply, business investment intentions are improved, GDP was up by .5 per cent in July, and for the first time in 12 years Canada has had a surplus in its current account.
The private sector forecasters are expecting the economy to strengthen during the rest of 1996-97 and the International Monetary Fund in its latest world economic outlook predicts that the Canadian economy will grow faster than any other economy of the G-7 countries.
I know there are many other members who would like to get up and share some of the great successes that this government has achieved in the first three years of its mandate. I would urge all members to stand up and let Canadians know, let their constituents know, let the Reform Party know, let the Bloc know, let the NDP and the Tories know that the Liberal government is doing a very good job for the people of Canada.