Mr. Speaker, I will be sharing my time with my hon. colleague from Winnipeg North.
I am pleased to take part in the debate on the government's third budget, one which gives credence to the three main goals of the agenda since it was elected: job creation, economic growth and deficit reduction.
First, I would like to commend the Minister of Finance for respecting the will of the voters which was clearly expressed regarding taxation. Canadians did not want a tax hike because they believe they are already paying their fair share of taxes.
Given the delicate state of the Canadian economy at the present time, the federal government could have opted for harsher measures. In fact, some provincial governments such as the present Ontario government have chosen this path which I believe does nothing but increase the economic problems we face.
The Liberal government rejects any solutions based on narrow minded ideologies. Instead, the guiding principle to making the changes that have to be made are based on pragmatism and fairness to all levels of society. As an example, the Canadian health and social transfer will be characterized by secure and stable funding over the next five years.
It is important to remember that the government will legislate a floor to provide a sound guarantee that cash transfers will never fall below the $11 billion mark at any time during the five-year period. This guarantee demonstrates the Liberal government's strong commitment to secure Canada's health system, social safety net and to build a renewed social and economic union.
The government recognizes that Canada is a rich country, rich in natural resources and its people. It also recognizes that it is the government's responsibility to create opportunities for present and future Canadians and that is what it has done. The challenges that face our youth are clear. The youth unemployment rate is roughly double the national average. Approximately 45 per cent of the new jobs created between the years 1990 and the year 2000 will require more than 16 years of training and education.
This budget provides an additional $165 million over three years to help students and their families deal with the increased costs of education. This will be done through increased education tax credits and an increased limit on parents' contributions through their children's registered education savings plan. Eligibility for the child care expense allowance has been broadened to help more parents undertake education or retraining.
Funding for summer student jobs has been doubled. An additional $315 million over three years will be provided in addition to the
existing fund to create new youth employment opportunities. We are committed to a new domestic Team Canada style partnership between businesses and governments to create entry level jobs for Canada's youth.
Canadians know direct job creation must come from the private sector, but it is incumbent on the government to make sure the economic context is the best possible and favours the continuous economic growth necessary for job creation.
Deficit control requires, among other things, that inflation is kept low. This contributes to reducing pressures on interest rates and helps control the other costs of doing business. It makes Canada more competitive in foreign markets.
We can also see dividends from the ability to control the deficit and inflation. Short term interest rates have diminished by three percentage points since last year's budget. This means a saving of $2,400 a year on $100,000 mortgage. Increased competitiveness means a strong increase in exports with a record export surplus of $28 billion.
Canada's trade performance in recent years has been remarkable. Exports have soared. The Team Canada approach has proven to be a major success with $20 billion in new business deals resulting from three major trade missions led by the Prime Minister to Asia and Latin America. We all know exports are vital to job creation in Canada. Every billion dollars in exports sustains 11,000 to 12,000 new jobs. Continued progress begins with further fiscal improvement and the 1996 budget delivers.
The steps proposed in the March 6 budget consolidate and extend the first two budgets and further contribute to the economic and financial objectives. The government is maintaining its focus on reducing program spending because the debt is a problem created by government and the solution has to focus primarily in our own backyard. That is why of the fiscal actions taken from 1994-95 to 1998-99, a full 87 per cent have been through expenditure savings. Together the three budgets will contribute $26.1 billion in savings for 1997-98.
However, the 1996 budget goes beyond the bottom line calculations. As Liberals we know that financial reform must never be an end in itself. The steps taken to get our fiscal House in order are a means to an end. What is the end? It is lower interest rates, better job growth and the maintenance of cherished social programs. These steps are a means to ensure the Canada that all Canadians want can be preserved.
Many seniors have asked us to address their concerns about security for their grandchildren and security for themselves. I am pleased to see a new tax free benefit for seniors that will replace the old OAS and the GIS benefits and will ensure the long term stability and sustainability for seniors' pensions. These proposed improvements to seniors' benefits reflect what the great majority of my constituents in Lambton-Middlesex have been asking for, as indicated in a survey I conducted last November.
The seniors benefits will help those who need it most while streamlining the program. It will make the system fair. It will guarantee that all current seniors, in fact those who are 60 years of age now, and their spouses will receive no less than the current pension benefits. Most seniors will receive the same or more money under the proposed new system.
I am very pleased the Minister of Finance made a decision not to allow charter banks to sell insurance from branches. This issue was a major concern to my constituents. Keeping the status quo means that Canadians will continue to have many choices depending on where they live and what their particular needs are.
As the member for Lambton-Middlesex, I look forward to working with my colleagues to help implement the government's commitment to bettering the lives of rural Canadians, a commitment that was renewed in the February 27 throne speech. This year's budget will build on this foundation through a number of initiatives to provide for economic growth and new opportunities for the agri-food sector.
For example, the government will create a single food inspection agency to be responsible for all federally mandated quarantine and inspection services. This initiative will reduce overlap and duplication by consolidating resources now in the three federal departments of agriculture and agri-food, health and fisheries and oceans, and will lead to an annual savings of approximately $44 million starting in 1998-99.
While phasing out the remaining dairy subsidies starting August 1, 1997, the government has made a commitment to supply management as part of a long term dairy policy intended to maintain a strong and viable Canadian dairy industry. This will include a strong defence of Canada's position in the NAFTA dispute settlement process. We are also committed to finalizing arrangements with the provinces for cost shared safety nets, including a whole farm income stabilization program, currently NISA, crop insurance and province specific companion programs.
Another major announcement of the March 1996 budget was the decision by the government to sell its fleet of 13,000 grain hopper cars. It is extremely important that the terms and conditions of the sale are established for the maximum benefit of Canada's farming community. As stated in the budget, the federal government will consider all proposals put forward for the acquisition of the cars.
In a country as diverse as ours, it is a real privilege for all of us to be able to be part of a team that sets objectives and goals, and meets them. We do not just talk about them. We meet them. We have set the challenges for the years to come. Through the Minister of Finance and all who are involved in the process, we will continue to meet each and every one of these challenges.