Mr. Speaker, before discussing today's motion I would like to take this opportunity to briefly point out to members of the House the reaction of my constituents in Richmond to the finance minister's 1996 budget.
The budget is further proof that the voices of my Richmond constituents are being heard in Ottawa. In my town hall meetings, in discussions with community groups and in my regular meetings with the non-partisan community liaison committee in Richmond the message has been very consistent: maintain vital social programs but reduce the deficit with spending cuts, not tax increases. That is the message I brought to Ottawa.
This budget delivers. After a lower than projected deficit last year, the government is on track to meet or better its target for 1996-97, reducing the deficit from 6 per cent of gross domestic product to 3 per cent within three years of taking office. As a Liberal candidate I made a promise to the people of Richmond that we would meet this target. We are on track to deliver on that commitment, but our work does not stop there. Our ultimate goal has to be deficit elimination and paying down the debt.
Also in the budget the government reallocated funds to new initiatives to support youth, technology and international trade, which are areas critical to future jobs and growth. If our future is to be brighter and more prosperous, we have to invest in it. We have to apply our successful Team Canada approach right here at home to establish partnerships with the private sector that will create opportunities for young people.
The budget also announced a system of secure, stable and growing federal support for medicare, post-secondary education and social assistance which will see Canada health and social transfer payments increase within a few years.
The deficit is on a permanent downward track. The finance minister's firm but steady approach to deficit reduction is working. It is improving the economic environment for jobs and economic growth. Let us look at the evidence.
Short term interest rates have declined by about three percentage points since March 1995. Canada's cost competitiveness is the best it has been in 45 years. Our merchandise trade surplus has reached record levels and the current account deficit as a share of GDP is at its lowest level in 10 years. Canadian dependence on new foreign loans has fallen from $29 billion in 1993 to $13 billion in 1995. Every year that dependency will decline more and more.
At the same time we are restoring growth to provincial transfer payments and we have guaranteed that the cash component of the CHST will not go below $11 billion per year for the next five years.
Jobs and economic growth remain our government's priority. We are investing in three priority areas: youth, technology and trade, areas critical to future growth and jobs.
People I have talked with in Richmond are worried about the sustainability of the public pension system. They want us to act now. The new seniors benefit targets help to seniors with low and modest incomes, ensuring the system is fair and sustainable for the future.
I believe Canada is on the right track. The federal deficit will continue to decrease. Our dependency on foreign lending markets is going down. Personal income tax rates have not gone up and we are restoring growth to provincial transfers for social programs. In my continuing discussions with constituents, they support the measures this budget takes to secure Canada's social and financial future.
The budget reflects our government's commitment to put in place the strongest possible economic framework for sustained growth and jobs. We are also providing funding to encourage development in key fields such as the aerospace sector and biotechnology, important industries for Richmond and British Columbia.
Securing our financial future is not just about cutting spending. It is also about creating an environment where business can grow
and create jobs. The federal government plays an important role in creating that environment. We have to ensure the tax system is as fair and as simple as possible.
Canadians want a system that encourages economic growth and job creation. To that end the finance minister announced in his 1996 budget the establishment of a technical committee to consider ways in which Canada's business taxation system could contribute to the creation of jobs. Given the complexity of this task the government has decided to undertake a review of those aspects of tax law that most affect the creation of jobs.
The technical committee will consider ways to: improve the tax system to promote job creation and economic growth; simplify the taxation of businesses to facilitate compliance and administration; and enhance fairness to ensure that all businesses share the cost of providing government services. The committee will also consider the interaction between taxes paid by business, including corporate income tax, capital and payroll taxes, and taxes paid by individuals on income derived from investments.
The motion put forward by the member for Saint-Hyacinthe-Bagot clearly questions the integrity of the members of the technical committee on business taxation. The finance minister has brought together a distinguished and capable group of professionals who will meet the challenging mandate that has been set before them. The technical committee will be composed of a panel with legal, accounting and economic expertise in the tax field.
It is also important to remember the technical committee will report to the Minister of Finance later this year and that public consultations will follow the release of this report. This government has consulted Canadians on all three of its budgets. We are consulting Canadians on changes to public pensions. Canadians will also have a say on the technical committee's report.
An effective business tax system should be designed to create jobs. It is time for a comprehensive look at these issues. The technical committee's first objective should be to identify any obstacles to job creation in the tax system and to suggest reforms. All of our efforts to cut costs, reduce the deficit, redefine government and reform the tax system have a common goal: the creation of secure, meaningful jobs for Canadians. Every effort of government, including the technical committee on business taxation, should be directed toward that end.