Mr. Speaker, it is my pleasure to speak to the budget which was introduced by my hon. colleague, the Minister of Finance.
There has been much discussion both in the House and in the homes of Canadians since the budget was brought down in early March. The overwhelming consensus is that truly this is an outstanding budget. Editorials from St. John's to Vancouver have hailed it as a major step forward in the fight against the deficit and to protect social programs. I know the Reform members would not know much about social programs.
Let us look at the economic and fiscal framework in which the budget is presented. We should take a moment to recognize the achievements of this minister. First of all, his tenure in the finance portfolio has been marked by a measured, balanced and disciplined action.
Let me just repeat for some of my colleagues that this is a balanced and measured approach. I know some members would say that we have to cut and chop everything out of government. However, Canadians see that the position the government and the minister have taken to have a balanced approach. An approach where we deal with the deficit on a year by year basis is the right approach, instead of ignoring the problem which some of our members would like to do. Other members would like to slash and burn. As Liberals we know that is not the right way.
When the Liberals took office, the country's finances were in a disastrous state. There was no vision and no plan. Under the finance minister's stewardship, the government has worked with Canadians to craft a sound economic vision for the future.
The Liberals realize that the deficit, employment, economic growth, inflation and taxation are all interrelated. That is why we need a sound economic vision for the future of our country. That is why the budgets have been structured with an integrated economic framework.
Just two and a half years after the Liberals assumed office the outlook for Canada is much brighter. The results of the fiscal framework are the following.
For example, short term interest rates have fallen by three percentage points in the last year alone. Imagine how much money Canadians are saving. People who have mortgages, people who finance their automobiles are saving a lot because short term interest rates have dropped. Something which I did not think would happen has happened. Overnight, interest rates are now lower than those in the U.S. This is a sign that the markets have confidence in this government and its economic policies.
In the last 13 months 263,000 jobs have been created. Since 1993 some 600,000 jobs have been created in the Canadian economy. Inflation is the lowest it has been in 30 years, reflecting solid productivity growth and virtual absence of cost pressures.
Let us compare Canada to other countries. On an international basis relative to other G-7 countries, our finances appear to be on a sound footing. Our financial requirements, deficit to GDP, our rate of inflation and unit labour costs are all looking good when we compare them to the G-7 countries. Of course, we cannot rest on our laurels for there is still work to be done but these numbers are sure signs that progress is evident.
We have seen in the international community how much more confidence there is by looking at interest rates, by looking at the targets we have met. So far we have been able to meet and do better on every target. The international community has a tremendous amount of confidence in us for when we say we will deal with the deficit we do, not through words but by action.
This budget represents another important part of our coherent and integrated plan to modernize government and to put in place the fiscal ingredients for a prosperous Canadian economy.
The major thrust of the budget is the future. Specifically, it speaks to our future by restoring health to public finances, defining a more appropriate role for the federal government in today's economy and federation, and by taking direct action to secure social programs for the future. It is very important to emphasize that we are taking direct action to secure our social programs, laying out a plan to restore confidence in our public pension system.
As the finance minister indicated in his budget speech on March 6, this budget is about addressing problems before they arise. It is about managing ahead and continuing to put in place new building blocks for security and prosperity. This is important because as we know we are in an age where social and economic transformation is occurring at a frightening speed.
Looking at the budget we can recognize the change that is coming in our society, the roles that information and technology are playing. That is why we are investing in those areas. That is why we are investing in our young people who are getting involved in helping small businesses take advantage of the information technology.
In British Columbia young people are working with small businesses. We as a government along with the private sector have said that we need to make sure that small businesses take advantage of the existing technology. That is why we are trying to bring our youth and small business together on programs that will take advantage of the information technologies.
That is why Canadians have given this budget glowing reviews. It minimizes the uncertainty of our future by simultaneously creating economic opportunity and safeguarding our cherished social programs.
British Columbians are very satisfied with the budget. I want to take this opportunity to explain why this budget is a good one for British Columbia.
Many of the Reformers are very supportive of this budget, particularly on our success in dealing with the deficit. Reformers have to understand that this government will not gut our social programs like they would do, nor would we destroy our cultural industries like Reformers would do. We will continue to ensure that we have social programs and that we support our cultural industries as this budget does.
The reaction in my home province and in my riding has been overwhelmingly positive. That is why the Liberals are over 50 per cent in the polls in British Columbia and Reformers are down to 20 per cent or less in British Columbia. They only have one issue and that is the deficit and it is no longer an issue because we have broken the back of the deficit. They are looking for other issues all the time and are unable to find them.
There are three or four issues which are near and dear to the hearts of the citizens of my province and the people of my riding. We all know the figures by now so there is no need to reiterate them. Perhaps we should ask why our success in reducing the deficit is important. There is a link between deficits and our goal of jobs and growth. That is our ultimate goal, jobs and growth. We want to create an environment where the private sector can create those jobs and growth.
Pursuing a lower deficit helps to keep our inflation and our interest rates low. Low inflation helps to smooth the bumps of the boom and bust economic cycle. It also helps to keep interest rates low. Low interest rates in turn help to stimulate demand in interest sensitive industries, foster high levels of investment and keep Canada competitive relative to our global competitors.
We have started this process of fiscal recovery. By doing this we can eventually attack the debt, and we will attack the debt, which as we all know consumes more than one-third of federal revenues. For the first time in decades, British Columbians know that when the finance minister says he will balance the books there is real substance behind the promise.
This budget speaks volumes about the differences that exist between this government and other parties in the House. The Liberals are a true national party which effectively represents all Canada's regions and people across the political spectrum.
Members of the Reform Party say theirs is a national party but we have not seen that. In every byelection the Reform Party has
not been able to prove it is a national party. It has been a disaster. In not one of the byelections was the Reform Party able to make any substantial effort or win any seats. Reformers have a long way to go to prove it.
The Liberals are a true national party which effectively represent all of Canada's regions and people across the political spectrum. We do this by providing government that is open, honest, forthright and rational. We recognize there is a fundamental need to change the way government works. We have not retreated from the task of bringing Canada into the 21st century. Instead we have enthusiastically embraced this challenge by recognizing that difficult decisions must be made.
In making these decisions we have found the balance between retrenchment and social justice. We have shown Canadians and indeed people around the world that it is possible to protect the social safety net while restoring integrity to our nation's finances.