Mr. Speaker, I will be sharing my time today with the Parliamentary Secretary to the Prime Minister.
It gives me great pleasure to rise today in support of the 1998 federal budget. When we took office on October 25, 1993 our government was faced with a very difficult decision. In 1993 our government had three choices. The first was to continue spending without any concern for the future as the past Conservative government had done. We could have continued to add to the deficit. This choice would have been irresponsible and our country's future would have been at risk.
The second choice could have been to make deficit elimination our number one goal. This was the Reform Party's position. The most vulnerable in our society would have been abandoned. The young, the elderly, the sick, they would all have been abandoned by this approach. Instead, what choice did our government make back in 1993? We chose the most difficult option. Our choice was to reduce the deficit while preserving social programs. This approach required sacrifice from all Canadians.
Where are we today, five years later? We are in this House discussing a balanced budget for the first time in 30 years. It is the first time since 1969 and 1970 that there is no deficit.
Not only are we committed to balancing the budget this year, it will be balanced the next year and the next. It is the first time in almost 50 years the budget will be balanced for three consecutive times. I am delighted to be a part of a debate highlighting our dramatic and historic balanced budget.
This budget of balance addresses the needs and concerns of residents of Guelph—Wellington. Guelph—Wellington asked for a zero deficit. They got it. Guelph—Wellington asked for tax relief. They got it. Guelph—Wellington asked for increased spending on education and health care and they got it.
By dedicating 80% of this budget spending to health care and education, the government is addressing the priorities of all Canadians. The first and largest increase was for health care. This increase in funding acknowledges the many people in Guelph—Wellington who have asked us to make health care a priority.
When the Minister of Finance announced that assistance for advanced research had been increased, he was speaking directly to the University of Guelph and Guelph Conestoga College.
In this budget the minister increased the funding for the three granting councils. It was an increase of more than $400 million over three years.
Who in this House is going to stand up and say no to research and development? I should hope no one. The Liberal government recognizes the importance of research and development. These new research and development resources will provide increased support for the many students and faculty at the University of Guelph.
In a letter to the Minister of Finance, this is what Mordechai Rozanski, the president of the University of Guelph, had to say about this funding increase: “I am writing to applaud the initiatives you announced in today's budget to reinvest public funds. The University of Guelph is a research intensive institution with a growing reputation world wide. We appreciate the leadership shown by the federal government in today's budget announcement”.
The 1998 budget provides $1.4 billion in tax relief to 14 million low and middle income Canadians. This is good news for Guelph—Wellington and for Canada. Beginning July 1, 1998 the amount of income that low income residents of my community can receive on a tax-free basis will be increased by $500. This means that residents of Guelph—Wellington will be among the 400,000 Canadians that will be taken off the tax rolls.
Beginning July 1, 1998, 13 million Canadian taxpayers will no longer pay any federal surtax. This means that 83% of all Canadians will pay no surtax whatsoever. This type of tax relief is directed at those whose needs are the greatest. It is tax relief for Guelph—Wellington's working parents with low incomes, for students, for the disabled and for our local charities. Again, how can anyone fight against it? How can anyone oppose it?
The federal government has always recognized the importance of volunteers. For this reason the 1998 federal budget announced that the tax-free allowance for volunteer firefighters would be increased from $500 to $1,000. Not only that but the tax-free allowance has been extended to other emergency service volunteers.
I ask this House, why is the government taking such progressive action? The answer is simple.
We know that volunteers are important. Volunteers are what make many, many communities go round.
Our government has always recognized the importance of self-employed business people. Starting in 1998, those who are self-employed will be allowed to deduct premiums from supplementary health care and dental costs against their business income.
This measure addresses concerns residents of Guelph—Wellington had with the inequity that allowed owner-managers to receive tax exempt private coverage, but not the self-employed.
Since being chair of the Liberal economic development caucus a year and a half ago, I have been working hard to combat the underground economy: many, many meetings.
This budget ensures that mandatory subcontracting income is reported. This measure has been included to ensure fairness and equity in the tax system for all contractors. There are many contractors in Guelph—Wellington who will benefit from this measure.
With this budget, the Minister of Finance has made the job of the opposition extremely difficult. How do you criticize a balanced budget? How do you criticize tax relief that assists 90% of all Canadians? How do you criticize 80% budget spending on health care and education? The answer is you don't.
The opposition should be congratulating the Minister of Finance who took an out of control deficit, balanced it as promised and, may I add, one year before the Reform had promised—the Reform had promised much, much harsher measures—while protecting our social programs. There is the key. We are protecting our social programs. That would not have happened under the Reform's proposition.
This budget stays the course. Canadians are now seeing the results of all the hard work and sacrifices they have made since October 1993. This budget takes a balanced approach that is delivering real benefits for the residents of Guelph—Wellington and all Canadians together are making a stronger country. We are making a difference.
I hope every member in this House is willing to stand up and applaud this budget. It is an important one and it is unique.