Mr. Speaker, this past June nearly 13 million Canadians voted in the federal election which established this 36th Parliament and our government, and that is a fact. It is one of those facts that today's opposition motion strangely ignores.
In that election our government looked to the day when, thanks to the foundation we put in place with four years of consistent effort and tough decisions, the federal government will no longer need deficit financing. That will be the day when we do not have to borrow to cover the cost of federal spending and debt charges.
The prospect of that tremendous turnaround raised an obvious issue. What should the federal government do when tax revenues begin to exceed our costs? As the prime minister said, and he proposed a very clear and concrete answer, one-half of the surplus should go to a combination of reducing taxes and national debt. He proposed that the other half be invested in addressing the social and economic needs of Canadians.
That proposal was made in the first week of the campaign. It allowed for weeks of debate and discussion by candidates and by commentators. Mr. Speaker, I am sure that you and other members of this House were out there debating at local debates in your constituencies. Most important, this issue was debated by Canadians themselves. The single largest group of Canadians said that is the approach they want.
Yet today the hon. member for Medicine Hat seeks to condemn this government for making that 50:50 pledge without adequate debate. Did he not engage in that debate during the campaign? Where was he during that debate in his campaign? I am sure the issue came up. I am sure he debated with other candidates who were seeking election. I am at a loss to explain why he now seeks to condemn the government for this proposal.
Perhaps he did not read our platform. Maybe that was it, I am not sure. Perhaps he just did not want to debate it. Maybe that is it. Perhaps he only has ears for his own rhetoric, but I have a higher regard for Canadian voters.
Our government has been addressing these issues, the size of government, taxes, debt, from the first day that we came to office. That is why we have cut the size of government and federal program spending by more than any other government in 50 years. That is in absolute terms, real bottom line dollars. That is why we have not increased tax rates in three consecutive budgets, because we know the tax burden Canadians carry is too high. That is also why we have lowered employment insurance contributions in each of our four budgets, and that is why we have introduced selective tax measures for those most in need, to help disadvantaged children and to assist charities.
And then there is the debt, a topic that has not escaped the notice of this House and our government no matter what the opposition would like Canadians to believe. We have made clear in budget after budget that deficit elimination is not the end of our fiscal journey. We also have to bring down Canada's debt as a share of our economy. We had to deal with the deficit. We have dealt with the deficit as we have said we would. We will be balancing the budget in 1998-99. The debt is still much too large as a percentage of GDP and we will continue to bring down Canada's debt as a share of our economy.
These actions and positions are a matter of record, just the fiscal turnaround we have worked so hard to put in place. They have been analysed, debated and critiqued for four years. After all that, Canadian voters decided last June that this record of achievement and commitment deserved a new mandate, the mandate they gave to this government.
This motion should fool no one. It is not about adequate debate. It is not about how the 50:50 pledge should be applied. It is not even about irresponsible spending. Instead it is really an attack on a concept of balanced government. It is an attack on the idea that government does have a role to play in investing in a stronger, more innovative economy, and it is an attack on the belief that government does have an obligation to help those in need and at risk.
We know that market forces alone will not do the job. There was reference earlier by previous speakers about the fact that Alberta is now out there consulting with Albertans on what to do.
The Reform Party should also acknowledge that for the first time Premier Klein is actually saying that there is a role for government and that government needs to invest in the future of Albertans, in his particular case. We as a government have always believed and will continue to believe that we need to invest in the future of Canadians and ensure that the investments pay dividends.
We have made clear that our government will reduce taxes when it is affordable, when a fiscal surplus is certain and secure, because we will never jeopardize the progress that we have made on the deficit. We will not jeopardize the rewards that this progress is delivering and the achievements that we have made over the last number of years.
One of those benefits is the low interest rates, the lowest rates in 30 years. It is as a result of the fact that this government has been successful in reducing the deficit and gaining a handle on the fiscal management of this country.
Clearly that is not good enough for the opposition. The motion obviously implies that any new spending is bad spending. It raises the spectre of the return to surging deficits, a staggering debt and renewed taxation. Let me say that this reform motion is wrong and it is misguided.
The official opposition may worship at the altar of laissez-faire, but we and the majority of Canadians know that laissez-faire economics can too often become the let them suffer public policy.
We are not prepared to nor do we accept that proposition by the opposition. That is why we have set out in the last budget, during the election and in last week's Speech from the Throne concrete priorities where a share of the fiscal dividend should go.
Members of the opposition say that is why we have such a big problem in this country. Members of the opposition can continue along that track and can continue to keep their heads buried in the sand and talk about the way it was. We are talking about the way it is going to be. The progress that we have made, the benefits that progress is bringing to this country and how we are going to bring this country into the next millennium, that is the discussion we will have.
There is ample opportunity for discussion in this House and there will be ample opportunity for continued discussion outside of this House, as every member of the government will be out in their constituencies consulting with their constituents, consulting with Canadians about the priorities and whether we have these priorities right and what we should be doing with our fiscal dividend when that dividend appears.
We established concrete priorities in the throne speech last week to children through further increasing the child tax benefit. Our goal here is working with the provinces to allow low income families to get off the welfare trap that creates a disincentive for work and that punishes children most of all.
On investing in quality health care and good health, our health care system has become a vital part of our national fabric, providing the security that represents both a social and an economic benefit.
We pledged to invest in measures to help Canadians respond to the expanding need for home care and community care and to improve the quality and effectiveness of health services and delivery.
We have placed the priority on creating opportunities for young Canadians. We have placed the priority and are demonstrating that priority through investing in knowledge and creativity.
It reflects the fundamental fact that in today's fast evolving, global economy there are initiatives that must be taken on a national scale. It is incumbent on a national government to take on that role. We cannot rely only on pockets of success in the face of tidal waves of international competition. We have to mobilize on a Canada-wide basis, drawing on all the stakeholders, the private sector, governments and community groups. We need to engage and we are engaging Canadians at all levels in ensuring we mobilize together.
An example of that is the Canada foundation for innovation. It is an $800 million investment that has been applauded right across this country. We have been able to make that investment because of the fiscal progress that we have made in this country. It is about having a vision. It is about investing in Canadians in ensuring that the future of Canadians is bright. That is the role of the government.
More recently the prime minister has pledged the scholarship initiative, an even greater investment in what is the ultimate natural resource in this country, our young people. This is just one initiative, the scholarship fund, but there are many others that we have engaged in through the ministers of human resources and finance who have put forward a youth strategy to assist the youth of this country. It is not just members of the government. It is members across the floor as well. Youth are an issue that is important to every Canadian and every member of this House.
By working with members across, with Canadians, with the private sector and with all levels of government, we are beginning to deal with the issue. It has not been solved. It is still an issue. Unemployment for young people in this country is still too high. Canadians have said that to members across and to members of government. We know that but we are making progress and are taking initiatives to deal with the youth unemployment issue.
We will continue to do that and as the government continues to improve and balance the budget and as funds become available for strategic investments, one of the priorities we have set forth is youth and we will continue to deal with that issue.
I go back to today's opposition motion. It essentially implies that such investments in youth and in the Canada foundation for innovation will be a threat to our nation's fiscal future and long term economic prosperity. I disagree. The Canada foundation for innovation will add to the long term economic prosperity for this country. Investment in youth strategy and youth initiatives will add to the long term economic prosperity of this country.
I do not think we will find Canadians anywhere who will disagree with investing in youth, investing in innovation and ensuring we are equipped to move into the next millennium, ensuring this country is equipped and able to compete with companies and other countries around the world. I am confident that the majority of Canadians will see them as vital investments in our national growth and security.
We have worked hard for four years to bring Canada's finances to the point where we can begin to plan new initiatives. We will never jeopardize that achievement and the benefits that it has brought, low interest rates, impressive economic growth, hundreds of thousands of new jobs.
As the throne speech stated, we will continue to be vigilant and responsible about keeping the financial affairs of the country in order. We will implement tax reductions and lower the debt. However we have never lost sight of the companion obligation to use the resources that we do have in intelligent and effective ways to strengthen our society and advance our economy.
It reflects what Canadians across the country continue to support. I submit that a balanced approach is the best approach. It is the approach that Canadians have consistently said they support and will continue to support. That is why the House must reject this motion and the philosophy that it represents.
In the remaining moments I have, it would be incumbent on me to address some of the points that were made earlier today by the member for Medicine Hat. He stated that the government is playing games. Let us talk about the games the government is playing.
We have announced that we will balance the budget in 1998-99. The debt is on a downward track. We are committed to reducing the debt to GDP ratio. The economy is growing and we are leading the G-7. I submit that we are winning this game. To use the words of the hon. member for Medicine Hat that the government is playing games, we are winning the game. The member should read again what we accomplished in our past mandate and what we intend to do in the future.
The core issue which is raised continually is that there is no consultation with Canadians. Let me also say that Reform has no monopoly on consultation. For Reform to make that statement and think that other members of the House are not speaking with Canadians I submit is unfair. We all speak with our constituents and consult with Canadians. I do not understand it.
We began prebudget consultations back in 1993. And we are not speaking to Canadians? Was he in the same place he was during the election campaign? Did he miss out on what was going on or is this just an opportunity to put something forward without any real thought?
The member talked about irresponsible spending. What about our priorities on health care, education, youth and children? This is not irresponsible spending. These are the priorities of Canadians. They want to see a strong national government making investments in priorities. However, the Reform Party apparently disagrees.
Reform members disagree with the fact that there has been $1.5 billion put back into the Canada health and social transfers. They disagree with that reinvestment in the health care system and with investments in scholarships for young Canadians. I am at a loss. They apparently disagree with the concept of youth internship and lifelong learning.
Let me close by saying that as the fiscal situation has allowed, the government has pursued new spending initiatives in priority areas, health initiatives, R and D support, tourism. It is the essence of good management. The bottom line is that Canada is now on a track toward eliminating the deficit with a smaller and better government.