Madam Speaker, I am pleased to have the opportunity to address the 1996-97 budget.
Since the beginning of our mandate in 1993 the government has been faced with many significant challenges. These challenges have been met directly, openly and honestly with the people of Canada.
We all know that too many Canadians are unemployed, that Canadian businesses are still having a hard time, that we must get down to work right away to maintain social programs that are the envy of the world. We all know this, and our government intends to deal with these issues that concern all Canadians.
Much progress has been made to date in achieving the goals of job creation and economic growth, and the sustainability of social programs. The unemployment rate has declined two full percentage points since the Liberals formed the government. Over 600,000 jobs have been created and inflation is at its lowest level in 30 years. Interest rates have remained low largely because of the successful action on deficit reduction. Interest rates are critical to the maintenance of job creation and economic progress.
We have also tackled the maintenance of the health care system and social programs through progressive reviews in consultation with Canadians.
The 1996 budget accomplishes much to complement the work that has been done to date. To progress with the job creation and economic growth agenda, the government has in the budget focused on three priorities: youth, trade and technology.
Despite reduced spending in virtually every area of government activity, spending on youth has been substantially increased. This budget will provide an extra $315 million over the next three years toward creation of jobs for young Canadians. An additional $165 million is being provided for students. The federal government will work closely with provinces and businesses to help young Canadians find that crucial first job.
Since we came to office, Canada's exports have soared. This increase in trade has been the driving force behind job creation and economic growth. Team Canada's trade missions have been highly successful, generating $20 billion in sales for Canadian businesses.
The 1996 budget will further aid the development of exports by giving the Export Development Corporation $50 million in new equity capital for export financing and the Small Business Development Bank $50 million to assist small and medium sized businesses, in particular, to participate in international trade.
I said the third priority was science and technology. Leadership in the knowledge industries means more jobs, lasting jobs and better jobs for Canadians. High knowledge industries have contributed more to recent job growth than all other industries combined.
Over the long term, businesses using new technology will create new jobs faster than old jobs disappear. This is why technology is a key element of the job strategy.
Through the 1996 budget special support is being provided to key sectors such as aeronautics, biotechnology, environmental technology and the development of the information highway. Just one example is the student connection program which will hire 2,000 students to show 50,000 small companies how to use the Internet to help their businesses.
This is an area of investment of scarce dollars that is particularly important for my community and for the national capital region. The region has been significantly affected economically by downsizing in the public service which will amount to a total of 15,000 jobs disappearing over three years starting with the last budget. As we seek to diversify the local economy, local governments, the business community and the federal government working in co-operation, the importance of high technology development to our region is absolutely crucial.
At the same time the government is making efforts to improve the situation of the public service. The wage freeze legislation will expire this year. It will not be renewed. It will not be extended. Beginning in June annual increments to public service employees will again be the order of the day. A return to collective bargaining as the wage freeze legislation expires is something to which we all look forward.
I want to speak very briefly about a couple of things that are of particular concern to my constituents because deficit reduction without tax increases does not come easily and does not come without pain, nor does ensuring the sustainability of social programs like our pension system.
The government is acting to ensure that the public pension system, which has done so much to alleviate the poverty of seniors, continues. It will be done by increasing benefits to the lowest income seniors and by ensuring that those now receiving benefits or within five years of receiving old age security or other retirement benefits will continue to have the right to those benefits.
As the minister looks toward the development of this legislation I want to raise with him some concerns that have come to my attention. First is the very short time frame for implementing the rollover of RRSPs into RRIFs or retirement income. This is causing great concern to people who have made investment plans under the rules that existed. They are saying we need a better phase-in period.
I also want to draw to the minister's attention my concern that the legislation implementing the changes to pensions as well as to RRSPs should pay attention to the need to improve the economic status of retired women. Ninety per cent of the poorest elderly in this country are women. I do not think any of us need an
explanation as to why that happens; work history and a variety of other situations.
We have an opportunity as we implement changes to the pension plan to also equalize the retirement income of women. I urge the minister to do that. I would be happy to share with him some ideas on how that might be done.
In conclusion, this has not been an easy budget. It has involved some difficult choices as has every one of our budgets since 1993. It is a reasonable balance between the kind of compassionate, caring society we want and the fiscal restraint that currently is necessary to get us to a much better future for the entire country. I am pleased to speak today in support of it.