Mr. Speaker, today is March 31, the end of fiscal year 1997-98. Today the budget book of the federal government is balanced for the first time in almost 30 years. It will be balanced in the forthcoming two years, resulting in three consecutive balanced budgets in almost 50 years.
It can be said that the post-deficit era has begun. It is an era of new optimism and expanding opportunities for Canadians as we prepare for a new century.
We now have an economy with historically low interest rates and inflation. Thanks to lower interest rates, the monthly payment on a $100,000 mortgage is now over $250 less than it was in January 1995, a savings of over $3,000 per year. The monthly payment on a $100,000 small business loan is now over $180 less than it was in April 1995, an annual savings of over $2,200.
We now have an economy that has created over one million new jobs since the Liberals took office in October 1993. It is an economy with which the OECD says Canada will lead the G-7 nations in economic and job growth in 1998.
Indeed we have reason to be proud as Canadians. Not only will we be putting the debt to GDP ratio on a permanent downward track. Our debt reduction plan will reduce the absolute level of debt, which I say to answer the anxiety of the opposition.
Earlier I spoke of the expanding opportunities for Canadians as we enter the new millennium. The budget builds on action taken in previous budgets by proposing a Canadian opportunities strategy. The aim of the strategy is to provide Canadians, especially young Canadians, with greater opportunities to prosper in a new knowledge based economy. This strategy takes action on seven fronts. Let me name them.
The first is the Canada millennium scholarships and Canada study grants.
The second is increased funding for advanced research to granting councils: the Medical Research Council, the National Research Engineering Council and the Social Sciences and Humanities Research Council.
The third is tax relief on student loan interest and improvements to the Canada Student Loans Act.
The fourth is measures that promote lifelong learning.
The fifth is helping Canadians save for their children's education through Canada education savings grants.
The sixth is supporting youth employment through an employment insurance premium holiday for employers who hire young Canadians in 1999 and 2000.
The seventh is expanding access to advanced technology by increasing funding for SchoolNet, the community access program and the Canadian Network for Advanced Research.
On the Canadian millennium scholarship program part of the budget let me say that the foundation for the program would be the centrepiece of the Canadian opportunities strategy. It is a comprehensive strategy designed to help create new opportunity for Canadians by expanding access to the knowledge and skills needed for better jobs and higher standards of living as we enter the 21st century.
The role of the Canada millennium scholarship foundation is to remove the barriers for low and middle income Canadians, especially young Canadians so that they can get the post-secondary education or the advanced technical training they need to get good jobs in the new economy.
Beginning in the year 2000 Canada millennium scholarships will be awarded to over 100,000 full time and part time students each year over the next decade through an initial endowment of $2.5 billion from the federal government. This is the single largest investment ever made by a federal government to support access to knowledge and skills for all Canadians. It truly reflects the commitment of the government to the youth of the country.
For full time students the scholarships will average $3,000 a year. Eligible students will be able to receive up to $15,000 in millennium scholarships over a maximum of four academic years of study toward undergraduate degrees, diplomas or certificates. The Canada millennium scholarship foundation is about access, not jurisdiction, with a challenge that is crucial to the future prosperity of Canada. All levels of government have a legitimate role to play and a responsibility to work together.
Let me touch on another item in the budget concerning allocating the fiscal dividend. The fiscal dividend is the projected surplus of total revenues over total spending that would arise in the absence of any new tax and spending actions since the 1997 budget. In our 1997 election platform, “Securing Our Future Together”, we pledged that over the course of our second mandate we would allocate our budget surpluses on a 50:50 basis. Half would go to investments in social and economic priorities. The other half would go to a combination of tax relief and tax reduction. This rule of thumb reflects the balanced priorities of Canadians. The government remains committed to this formula.
The 1998 budget, the first in our new mandate, reflects that commitment. The formula will be used as a guiding principle for planning purposes. Although the annual split may vary from year to year, already the impact for the 1998 budget over three years is 40% investments on social and economic priorities and 60% on tax relief and tax reduction.
Let me go to another topic on tax relief if I may. The budget delivers $7 billion of tax relief over the next three years. Yes, tax relief for low and middle income Canadians through an increase in the basic personal exemption and the elimination of the 3% general surtax on Canadians with incomes of up to about $50,000. These are two measures that will take 400,000 Canadians off the tax rolls and reduce taxes for 14 million Canadians by the year 1999 and the year 2000.
In conclusion, let me ask all colleagues in the House to give their support to Bill C-36 which may be cited in short as the Budget Implementation Act, 1998. When we do this I am sure Canadians will be proud of all of us.