Mr. Speaker, I am proud to rise in support of the budget tabled by my colleague, the Minister of Finance.
In the 1996 budget we have tried to reflect the commitments we made during the 1993 election. To the House and to all those listening in Kenora-Rainy River and across the country, it
continues to put our fiscal house in order and promotes our job and growth agenda.
We all know and have to continue to emphasize that when we came to office we inherited a deficit of $42 billion, 6 per cent of GDP. We stayed firm in our commitment to reach an interim goal of 3 per cent of GDP within three years.
To meet this goal we embarked on the most thorough review of government programs and spending ever seen in Canada. As the Minister of Finance pointed out yesterday, it would have been quite easy to balance the books in one year. We could have taken the Reform Party's approach and simply hacked away at the most vulnerable in society.
Fortunately, though, we are not the Reform Party. It tries to hide its lack of ideas by irresponsibility and spouting out simple solutions to complex problems. We take our responsibility to all Canadians very seriously. We do not try to offer easy answers because there are not any.
We have met our commitments to Canadians. Through our balanced approach we have brought government spending to its lowest level of GDP since 1949. At the same time we have maintained vital programs like health care which some members across the floor would be happy to abandon.
We have not only met our deficit targets, we have exceeded them. This budget sets out a 2 per cent deficit target for 1997-98. We are on the way to a balanced budget. We will not stop, I assure the House, and the finance minister has reiterated this, until we get there.
Cutting is not an end in itself. It is a means to an end. We on this side of the floor recognize that. Our management of the economy has seen interest rates fall dramatically, a vital component of job creation which some people seem to forget. As a result, more than half a million full time jobs have been created during our mandate.
Some of us who are little bit younger may not be as wealthy as some of the folks across the way, but just think about this for a moment. If the average homeowner with a $100,000 mortgage were to factor in the changes in the interest rate for the last two years that have been possible by the changes that this government has made, the savings would be $2,400 a year. That is a significant amount of money for someone who has a mortgage. That is as good as any tax cut, the ability to say to the millions of people who have mortgages that they have saved a tremendous amount in interest payments because of the good fiscal management and policies of this government.
We recognize that we can and should do more. The budget sets the wheels in motion after the first two budgets cleaned up the Tory mess. We are going full steam ahead to provide opportunities to Canadians.
I do not have the time to go into the full details, but I want to touch on some of the key points in the budget that was presented to Canadians yesterday. The first point is youth. Young people today face great challenges both in financing their education and in finding their first job. The budget marks a major commitment to youth. Tax benefits for full time students are being increased. By doubling federal funding for summer jobs, an extra 30,000 young Canadians are being provided the opportunity to finance their education.
The government is building on the successful youth internship program and committing an extra $315 million to work with the private sector to create youth employment. Some people across the way might think that is small potatoes and something to sneeze at, but for young Canadians who know how difficult it is to get their first jobs that kind of help is welcomed news. By investing in our youth I can assure hon. members that the government and most Canadians believe we are building a stronger future.
We are also helping Canadian families, especially the working poor. Parents who want to upgrade their education and find better jobs will now be able to claim child care expense deductions. This includes parents who show the courage to return to high school. By changing the child support system, we are doubling the working income supplement of the child tax benefit. This will benefit more than 700,000 working Canadian families. This support for the working poor is one of the values that makes me proud to be a member of the government.
It is very easy to say cut and slash until the budget is balanced. However, we all know and I am sure you know, Mr. Speaker, that in your riding there are many poor people who could not survive the kind of quick action that some parties in the House advocate.
We are also showing a dedication to seniors now and in the future by introducing the new seniors benefit. By targeting resources to those most in need, benefits for seniors with incomes below $40,000 will be maintained and increased. Our seniors built this country and the government will fight to protect their independence, their benefits and their dignity from those across the floor who want to leave them twisting in the wind.
I come from a relatively lower than middle class riding in northern Ontario. These kinds of changes are going to improve the positions of the vast majority of seniors who I represent. I would have thought that people across the House would have been quick to get up on their feet and say that this is a welcome change and something of which all parliamentarians should be proud, that we have made seniors more secure in their golden years.
I am also proud that we have set out a plan which will not only stabilize but will increase transfers to the provinces for health care and post-secondary education. After all, our party created medicare and will not see it destroyed. That commitment is what differs members on this side of the House from other members.
I would also like to touch on aspects of the budget that will directly affect rural Canada. As a rural member of Parliament I have spoken many times in the House and in caucus about rural Canada and its unique problems, as opposed to the problems some cities have.
The community access program helps rural and isolated communities develop and expand Internet access. In northwestern Ontario it is a real opportunity for us to overcome our isolation and compete with the world. This program has already benefited several communities in my riding, including Ear Falls, Ignace, Sioux Lookout and Dryden. The budget provides an extra $30 million to the vital program and I applaud the Minister of Finance for this.
Sometimes the very basics of infrastructure that people from major centres take for granted do not exist in the rural parts of the country. For us in rural Canada to compete not only with our friends in some of the major centres in Canada but around the world we must have the tools.
Private sector companies like Bell Canada will not put that kind of investment into rural Canada because there is no return on the investment. Therefore the government has a very legitimate role to play. I applaud the Minister of Finance and the government for recognizing that without government help these links would never take place.
Another vital sector that members have heard me speak about on several occasions is mining. The rural caucus my colleagues and I belong to has spent many afternoons and evenings in meetings with various ministers trying to convince them of the need to help the mining sector.
The new tax provisions concerning flow-through shares and capital cost allowances will spur exploration and investment. Rural Canada has been asking for these measures and the government has responded to the need.
Finally, the budget allows a 2 per cent increase for Indian Affairs and Northern Development. I know the members of the Reform Party are going to criticize that increase. Before they do, they should learn a little history. They should visit some First Nation communities and have their blinders removed.
There are 46 First Nations in my riding, more I believe than any other riding in Canada and I am proud to represent these First Nations in the House. I have seen firsthand the poverty and despair brought on by decades of neglect and mistreatment by governments of all stripes. I have also seen the determination that First Nations have to take control of their destiny and break the cycle of despair.
We cannot rewrite history, but we can and must help toward a better future. Through our commitment to aboriginal Canadians we are writing a better future. I quite frankly applaud the government for recognizing the poorest of the poor in our country.
In conclusion, we have listened to the Canadian people. We have reduced spending. We have held the line on taxes. We have protected and enhanced the programs and benefits that provide opportunity for Canadians.
The Minister of Finance has lived up to his commitment and I want to congratulate him. Once again, I reconfirm that I support the budget and the government. We are on the right track and we are going in the right direction.