Mr. Speaker, I am sharing my time with the Parliamentary Secretary to the Minister of Human Resources Development.
The residents of Etobicoke-Lakeshore join me today as I stand to participate in the discussion of the 1996 Liberal budget. This is a budget which clearly demonstrates the government's ability, not only to listen but, more important, its ability to act.
In my town hall meetings, in discussion with community groups, and my regular meetings with various community leaders, the message has been consistent: maintain vital social programs but reduce the deficit with spending cuts, not tax increases. This is the message that my constituents in Etobicoke-Lakeshore told me to bring to Ottawa.
Without digging into the pockets of Canadians, the budget has managed to offer something for everyone. It reinforces a secure, stable and growing system of federal support for medicare, post-secondary education and social assistance. At the same time it re-emphasizes jobs and economic growth while creating investment in three priority areas; youth, technology and trade. These areas are essential to future jobs and future growth in my constituency.
I invited 50 of my constituents to meet with me this morning to hear what they had to say about the 1996 budget. I held a forum in order that we may continue on in our important dialogue, addressing the needs and concerns of our community. We met and we will continue to meet because a budget is not an end in itself but a means to a better future for all Canadians.
I would like to take this opportunity to tell the House that my constituents were very pleased that the Liberal government, for the third consecutive year since its election, has not introduced personal income tax increases. Businessmen and businesswomen drew more encouragement from the fact that no new corporate taxes were introduced.
Many of my constituents wrote to me and expressed their concerns about gasoline taxation. I remember letters from Mr. Victor Rowland, Mr. and Mrs. William and Jean Christie, Mr. and Mrs. Andy and Theresa Manuel, about gasoline taxes. They were
told this morning that their voices were heard. The government did not increase the price of gasoline or any other excise tax. Less taxes translate to more money in the pockets of individual Canadians. Etobians and other Canadians have every reason to be encouraged by the fiscal process the government is making on the national agenda.
The Minister of Finance reaffirmed our deficit reduction plans in the House. We have delivered on the red book commitment to reduce the deficit to 3 per cent of GDP, down from the 6 per cent that existed when the government took office slightly over two and a half years ago. Over the horizon we can already identify evidence of the inevitability of the new 2 per cent goal.
Fiscal progress should always be a means to greater public ends, to lower interest rates, to more jobs, to a more prosperous and secure Canada.
Of equal importance, our fiscal progress will better enable us to move forward on other priorities and issues so important to our citizens. Clearly one of those high priorities must be the preservation of Canada's network of social programs. These are programs which offer life long protection to Canadians. These programs have helped established us as one of the most envied nations in the world.
To achieve that end, as the Prime Minister promised, we had to provide a long term funding arrangement for health and social programs that is growing, stable, predictable and sustainable. The Canada health and social transfer was introduced in last year's budget as the single largest federal means of providing financial support to provinces for health care, for secondary education and social assistance.
One of my constituents, Ms. Barbara Center of the Lakeshore area multiservice program, which in Etobicoke we fondly call LAMP, articulated her concerns on the effects of possible reductions in federal transfer payments for health care at my Etibocoke-Lakeshore prebudget consultation in early January of this year. She will be pleased to know that not only the present parliamentary secretary to finance but also the Minister of Finance heard her remarks.
My constituents are pleased to hear that the 1996 budget now acts to extend the CHST, and furthermore that there will be no further cuts to the CHST. Following consultations with the provinces, the new budget sets out a new five-year funding arrangement for the CHST in which transfers grow and the cash component is stabilized and increased over time.
The CHST entitlements will grow from $25.1 billion to $27.4 billion over the next five years, an actual projected increase of $2.3 billion higher than in 1997-98. This will mark the first time the federal government has taken action to increase the growth in these transfers since the age of restraint instituted in the mid-1980s.
It is also important to note that the government will legislate a floor to provide a sound guarantee that cash transfers will never fall below the $11 billion mark at anytime during those five years, and this is important for us. These proposals demonstrate the Liberal government's strong commitment to secure Canada's health system and social safety net and to build a renewed social and economic union. This is a system that many Canadian seniors have helped to build.
In this light, the 1996 budget takes the necessary action to safeguard the public pension system not only for present seniors but also for our youth who will one day become seniors.
Our system faces many challenges. Canadians are living longer and hence receive pension benefits over a much longer period. There will be fewer working Canadians to support the escalating cost. These factors and others will increase the cost of our public pension faster than our capacity to pay for them unless we act.
The government in partnership with the provinces and territories has already launched a major public consultation program on changes needed to the Canada pension plan.
The Ontario Coalition of Senior Citizens was also represented and did submit its concerns at the Etobicoke-Lakeshore prebudget consultation. The coalition will appreciate knowing that while the OAS and GIS programs have been subject to taxation, the new seniors benefits will be completely tax free. They will incorporate the existing age and pension income tax credits. Seniors will not have to report the benefit on their tax forms. Furthermore, payments to couples will be made in separate and equal cheques to each spouse. As the benefit will be fully indexed to inflation, a vast majority of seniors will be better off.
It should be emphasized that savings will come from slowing the rate of growth in program cost, not at the expense of those in need. While the savings at first will be small, they will build year by year to about 11 per cent of program cost by the year 2030.
Public consultations will be held on legislation which will be introduced in the future. We are ready to participate. The constituents of Etobicoke-Lakeshore can be assured that I will once again offer their input toward the construction of a more sustainable public pension system. Their participation is critical to us as we move forward with these changes.
I end by underscoring my belief that the government is on the right track. In 1993 we ran on a balanced platform. We made a commitment to restore fiscal sanity to the country while focusing our efforts on protecting vital programs and improving opportunities. The budget shows we are firm in our resolve. The federal deficit will continue to decrease and the economy will continue to
grow. Most important, I am especially pleased that we are not cutting spending on the backs of those who can least afford it.
I am confident that as I continue to discuss the budget with the residents of Etobicoke-Lakeshore they will support the measures the budget proposes to secure Canada's social and financial future. I therefore call on all of my colleagues in the House to join with the government in support of the budget.