Madam Speaker, I am very pleased to have an opportunity to address the House on this historic occasion. When I first came to the House of Commons as a member of Parliament almost 10 years ago, I could not have predicted that one day we would be speaking of a balanced federal budget. No one could have. At that time deficits had become a permanent part of our political culture.
Since I moved to Canada in the early 1970s our country never witnessed a balanced budget. Deficits were the reality of my generation. Younger generations grew up with them. It is the reality we lived with. This is a discouraging fact. The deficit was always a dead weight around our nations leg, slowing us down, holding us back.
The deficit robbed the government of its freedom to act in the best interest of Canadians. It clouded our vision and limited our horizons.
In my first term as a member of Parliament the only thing that was more discouraging than the existence of the deficit was the former government's failure to control it. Every year at budget time Canadians were presented with an impressive sounding plan to reduce the deficit. Then year after year after year the deficit would rise and our faith in the government's fiscal policies would fall.
Finally Canadians ran out of patience and voted for change. When the government took office it inherited a deficit of approximately $42 billion. It was an overwhelming challenge but the government did not shrink from it. From the outset the Minister of Finance brought forward budgets based on credible plans to control and reduce government spending. By sticking to these plans the government was able to slowly wrestle the deficit to the ground.
The Minister of Finance deserves our congratulations for succeeding in a task that has defeated many of his predecessors. However, let me echo what he said in his budget speech on February 24. “Canadians can be very proud today. This is their victory”.
Since the government took office Canadians have been key players in the budget making process. The public prebudget consultation introduced by the government gave every citizen an opportunity to speak directly to the government on this issue. Individuals and groups responded with enthusiasm. They came forward with their proposals for what should be in the federal budget.
Last year I participated in the prebudget consultations. The finance committee held public hearings from Vancouver to St. John's. These were complemented by prebudget town hall meetings held by members of Parliament in communities throughout the nation.
As a result, last year's exercise was the most extensive prebudget consultation to date. On behalf of the finance committee I would like to express our warmest and sincerest gratitude to the thousands of Canadians who made insightful contributions. Many of their thoughts, ideas and recommendations were addressed very clearly and precisely in the 1998 budget.
The people of Canada spoke out in a loud and clear voice. They told us that they want balance; not just a balanced budget but a balance in government policies, in its goals and in its results.
The government has listened and it has acted. The budget is the response. The 1998 budget responds to the expectations of Canadians.
Let us consider the following points. The government has eliminated a deficit which has been a priority for Canadians for many years. It has put in place a mechanism to start paying down the debt, which many have identified as the next challenge that government must attack. The government has taken some major steps toward tax relief. It has invested funds in certain key areas guaranteed to secure the maximum advantage for the resources available.
The budget is a turning point. This is the year we stop borrowing from our children. This is the year we start giving them something back. Instead of mortgaging their future we are now helping them to build their future.
With the Canadian opportunities strategy we are introducing a comprehensive approach which will ensure that all Canadians have access to an education. This is the cornerstone of our government's commitment to ensuring the future prosperity of this great nation.
Let us make no mistake. Getting an education is crucial. It will decide whether young Canadians will work as active players in the knowledge economy or they will be pushed to the sidelines.
The Canadian opportunities strategy is the key to a bright and rewarding future. It includes measures to help those who are currently students, graduates coping with student loans, the worker seeking to renew his or her skills, parents and grandparents saving to pay for students' education, post-graduates and others working in scientific and medical research, young people facing challenges in joining the workforce, and children in communities trying to gain access to the Internet.
I am personally very pleased to see the emphasis that has been placed on helping Canada's youth. It is tangible evidence of our commitment to Canada's future.
The budget contains other strategic targeted investments. For example, to help families with child care expenses the budget proposes to increase the limit on the child care expense deduction. For Canadians providing care for the elderly or disabled family members the budget proposes a new caregiver credit which will reduce federal taxes by up to $400.
Self-employed Canadians, owners and operators of small businesses will now be able to deduct premiums for health and dental insurance against their business income.
At the same time the government is moving forward in key areas. During last year's prebudget consultation Canadians told us that they support a measured approach to tax relief. They understood that as we enter a new era of balanced budgets no steps should be taken which might jeopardize the hard won victory over the deficit.
Therefore the vast majority of people who participated in the consultations agreed that in the initial stages tax relief measures should focus on Canadians in greatest need. That is what we have done. The government has taken measures to increase the basic income tax exemption. They will mean that 400,000 low income Canadians will no longer have to pay taxes. Another 4.6 million people will see their taxes drop as a result of these changes.
The budget also eliminates the 3% general surtax in its entirety for individuals with incomes up to $50,000. The general surtax will also be reduced for those with incomes between $50,000 and about $65,000.
Taken together, these tax relief measures will amount to a saving of approximately $7 billion for Canadians over the next three years. In all, 14 million low and middle income Canadians, 90% of all taxpayers, will benefit. This is only the first step. In the years ahead as resources permit, the government is committed to extending tax relief to other Canadians.
Finally, the budget addresses a third concern shared by a large number of Canadians: reducing the national debt. In the years ahead the government will continue to include a $3 billion contingency reserve in its budgets to prepare for unforeseen developments. If as was the case in recent years that reserve is not needed, it will go directly to paying down the debt.
At the same time, our government will continue paying down its market debt, the funds it has to borrow on financial markets. Already this year the government has paid down almost $13 billion of this debt.
For these reasons and many more, it is fair to describe this budget as an historic budget. Not only does a balanced budget represent something no other government has accomplished in 30 years, more importantly, it was done without destroying Canada's social safety net.
That has been the genius of the government's budgets. They have always combined fiscal responsibility with social responsibility. By doing so the government has ensured that Canadians will leave future generations with the legacy of expanding opportunities rather than one of high taxes and escalating debt.
There is no question in my mind that Canadians believe that tomorrow will be better than today.