Mr. Speaker, I will be sharing my time with the hon. member for Winnipeg South.
I am pleased to have the opportunity to speak on Bill C-10, which provides borrowing authority. The budget is an outstanding document. It is balanced and fair and comes to terms with our deficit while creating opportunities for Canadians.
I begin with a matter of deep concern to my constituents as well as to the constituents of Waterloo, the neighbouring riding, the announcement having to do with the insurance industry.
The announcement that the present restrictions will be maintained governing the selling of insurance by banks has been warmly welcomed in my riding of Kitchener. It was an important announcement. It has been applauded by large insurance companies such as Manulife, the Mutual Group and Economical Mutual, and by the many hundreds of agents who sell insurance in our area. It was an important decision which reflects the importance of the diversity in the financial services sector and which recognizes also the importance of insurance as the lifeblood of our communities.
The insurance industry, other businesses in Kitchener and the citizens of Kitchener are gratified that the budget takes an important step toward restoring Canada's confidence and toward restoring a sense of hope among Canadians.
Moreover, it addresses their worries about security. It has done this in so many ways, in direct responses in the changes affecting seniors security and in the broader questions of economic security. It addresses, in short, our fears and our hopes. Most important, it addresses a question which very much concerns my riding, the problem of youth and their future.
Let us admit that under the Liberal government the economy has shown significant improvement. Our interest rates have declined by three percentage points in the last year, a remarkable achievement. We were challenged to meet the American rates. We have done so and we will improve on that.
We have achieved a level of inflation which was unimaginable five years ago. It is the lowest level in 30 years. There is every indication that it will be lower.
The competitiveness of the country has been greatly improved. We are now a trading country setting a mark for the world to match. Our improvement in trade not only with the United States with which we have an agreement but with the rest of the world is improving rapidly.
Moreover, since our election in 1993, we have created 600,000 new jobs. In the last three months alone we have created 137,000 jobs. These are all real accomplishments but as the finance minister pointed out, much work remains to be done and we are doing it. We are assuring a future for our youth which can give them the kind of opportunities we had.
During the Christmas break I had the opportunity to speak at many schools in the Waterloo region and in my riding of Kitchener. I also spoke with many young people in my constituency office, over family dinners and at other gatherings during the holidays.
What struck me very strongly were the deep concerns of our youth. They do not have the opportunities we had when we were younger. They have legitimate fears about their futures. The youth unemployment rate is much higher than it was 20 and 30 years ago and it is very unacceptable for all of us. We are fulfilling our obligation to deal with these questions. The unemployment rate in my riding for youth under 25 is roughly 14 per cent. It is lower than the national average but is still absolutely unacceptable.
The stories I heard during my Christmas vacation were often very sad. I heard about individuals who studied for many years but who found no opportunities to use their degrees. There were fears of technological change which youth recognized could not be avoided. I sensed in their comments that although they had these fears, there was an enormous commitment to the challenges of the future and a recognition that learning and training were fundamental to the kinds of opportunities that our youth would have in the future.
The transition to work has been recognized as critically important in this budget and in all government policies: from school to the workplace, from the classroom to the shop floor. In this respect, the Waterloo Region Roman Catholic Separate School Board and the Waterloo County Board of Education have been leaders in Canada in co-op education. I have been privileged to have co-op students work in my constituency office. These students have learned computer and filing skills which supplement what they are learning in the classroom. I am confident my hope will be reflected in reality that this experience will lead them to job opportunities in the future.
As I have said, the government has recognized the concerns and the problems and has striven to create opportunities. Let me indicate how it has done so. First, the government has reallocated $315 million in budget savings to help create employment opportunities for young Canadians.
Second, the government has devoted $160 million to youth internship programs and Youth Services Canada. In the Waterloo region, Lutherwood has a program under Youth Services Canada which brings together youths with seniors and the police to work at finding job opportunities in the broadest possible sense within the community. It is a very successful program carried out by an esteemed institution within our region.
Third, there has been a doubling of funds to $120 million for student summer employment.
All of these things are extremely important but ultimately success will depend on encouraging a climate of innovation within Canada and within our region. In this case, the Waterloo region and Kitchener are models. Kitchener was the centre of traditional industry and manufacturing. Thirty years ago Kitchener was called the Akron of Canada and tires were its major business. Tires are still made in Kitchener but far more people are employed in other industries and far fewer make tires. Textiles was another industry, as was furniture.