Mr. Speaker, I would first like to congratulate you on your appointment as Acting Speaker. I look forward to working within the rules of this House and supporting you in your role.
It is an honour and a pleasure for me to be able to comment on the recent throne speech. For the second time in fourteen months, the people of Etobicoke North have given me the opportunity to represent them in the House of Commons. I thank them for their strong vote of confidence and I promise to do everything I can to perform my duties with honesty during this 36th Parliament of Canada.
The throne speech sets the government's directional course and lays out the priorities for this Parliament. I believe it has done this very well. It has responded to the needs of Canadians and to the needs of the constituents in Etobicoke North.
People in my riding frequently refer to three major concerns and priorities: first, the need for the economy to generate more jobs so that more Canadians, in particular young Canadians, can re-enter the workforce; second, the need to resolve our national unity problem so that we can move forward and remove the last major impediment to economic growth in Ontario, Quebec and the rest of Canada; and third, the need to restore confidence in our health care system.
The throne speech addresses these key issues very completely but before I expand on that, I would like to comment on the overall context of the throne speech. That is where we are today and where we have come from. When charting a course for the future, we really need to know where we are today and where we have been.
Our journey to fiscal responsibility and economic renewal has been a very difficult one. The road was rough and winding. We had to make difficult choices about which way to go but I am proud to say that our destination is in sight. If we stay on this road, our children's future and Canada's future will be secure.
We are seeing the very positive results today. Canadian interest rates are at their lowest in decades. Inflation has been beaten down and is firmly under control. We are more competitive as a nation. Consumer spending is up and so is business investment. Make no mistake, good jobs are here and more are coming. In summary, the hard work of all Canadians is beginning to pay off, but our job is not yet complete.
In my riding and in other regions of Canada, there are business representatives that tell me they are unable to recruit people with the necessary skills for new positions. The tragic irony of all this is that this is happening at a time when many Canadians, and particularly young Canadians, are unable to find quality jobs.
I was delighted therefore to note that our throne speech committed our government “to work with the provinces, universities and colleges, the high tech industry and other rapidly growing sectors of the economy to better forecast the number and types of jobs that will be available and to develop a plan for ensuring that young people are appropriately educated to fill them”.
I was particularly pleased to see the reference to colleges. I believe that there are many opportunities available for technicians and people with trades in a number of our industrial sectors.
That is why I am supporting the establishment of a telecommunications learning institute in Etobicoke in association with Humber College. Such an institute will focus on research and training so that our workforce skills are leading edge and we are prepared for the latest advancements in communications technology.
While our colleges have a major role to play, clearly our universities do as well. The jobs of the future will increasingly be knowledge based jobs and our ability as a nation to foster a culture of innovation through research, development and entrepreneurship will determine our future economic growth.
That is why the formation of the $800 million Canada Foundation for Innovation that our government established in the last budget is so important. So too is the recent announcement in our government's throne speech to establish a Canada millennium scholarship endowment fund. These scholarships will make post-secondary education more accessible and affordable and will help young Canadians prepare for the knowledge based society of the next century.
There is another serious issue that in my view is still a threat when it comes to job creation and unemployment. I refer to it as structural unemployment.
Gone are the days when the Canadian economy was expanding and thousands of jobs were created automatically. Sure, our economy is currently vibrant and it creates many jobs. However, the country and the government are facing the challenge of bringing unemployment back to the lowest possible level.
Perhaps we can never achieve an unemployment rate of 5 percent but perhaps we can. We should look very carefully at those countries that have achieved very low rates of unemployment without triggering unwanted inflation, countries like the United States, Holland, Great Britain and others. To be sure, because of our unique Canadian society we cannot transplant these solutions here but surely we can learn something from their experiences.
Changes in the global economy and changes in the workplace are at the root of structural unemployment. Countries that understand these developments are best positioned to create the public policy environment to deal with them. There are certainly many changes occurring.
Automation is replacing people with technology. We see it every day of our lives whether it is at the supermarket, or when we do computerized banking or whether it is robotics in the manufacturing sector. Organizations throughout the western world are making their organizations flatter by eliminating levels of management and by redesigning, re-engineering and rightsizing, as the term is used, their structure. There are changes occurring in the workplace such as the use of overtime hours, the use of part time versus full time workers, more contract employees and there are many other trends.
Many of these changes are characterized as necessary because of the increasingly competitive global economy. At the same time however it is interesting to note that stock markets in Canada and the United States and industry analysts are discounting the positive impacts of downsizing initiatives. In fact the evidence seems to point to the fact that companies that are focused more on growing their business and not so much on cost cutting have experienced better profitability performance over the last few years.
I applaud Canadian business leaders like Courtney Pratt, the president of Noranda, when they speak about business' multi-stakeholder responsibilities and the need for business to invest in people.
We know that in Europe, the exceptionally high unemployment rates in countries such as Germany and France are due to what economists call, and this is an understatement, the labour market's lack of flexibility. The expression refers to social benefits, manpower mobility, the ability to cope with flexible work patterns, etc.
We should learn something from these experiences.
There are a number of other initiatives that I believe would spur employment in this country. For example in Canada we could introduce tax incentives at minimal cost to the federal treasury to encourage employees to own shares in their own company. In the United States and elsewhere these schemes are referred to as employee share ownership plans or ESOPs. There is a very aggressive and well developed tax incentive program for ESOPs in the United States and in the United Kingdom. In Canada at this point in time we have no similar regime.
Studies in the United States and Canada comparing ESOP versus non-ESOP companies have consistently shown ESOP companies to be superior performers in profitability and job growth. ESOPs if properly implemented across Canada would make good public policy and would inspire and encourage Canadians to build a better and more compassionate Canada for all Canadians. The results would be both immediate and long term.
To conclude I must say that at the same time that we move aggressively on the economic front we must work very hard on the political front to ensure that we remain a united country from sea to sea. Constituents in my riding are tired of this continuing debate and they want to put the national unity issue to rest. They see how the uncertainty about Quebec's future in Canada is having a negative impact on the economic prospects in Ontario, in Quebec and in the rest of Canada.
At a public meeting I called in my riding a number of months ago to coincide with the release of the health forum report, I was made very aware of the concerns many Canadians have about the responsiveness and the accessibility of our health care system. Medicare is uniquely Canadian and very worthy of our support and attention. We must initiate public policies to restore the confidence of Canadians in our health care system and I pledge to do my utmost to achieve that end.
Mr. Speaker, I have exhausted my time and I thank you and this House for this opportunity.