Mr. Speaker, this motion recommends that the government dedicate all the revenues from fuel taxes to just one purpose, maintaining Canada's rural road system.
First let us make it clear that from day one this government has recognized the importance of Canada's infrastructure to improve our quality of life, unlike the hon. member across the way.
One of the first actions we took upon taking office in 1993 was to launch the $6 billion Canada infrastructure program together with the provinces and municipalities as partners. The program was extended last year with an additional $425 million federal commitment. This joint effort has benefited both urban and rural communities by strengthening their competitiveness with improved infrastructure, including rural roads.
Let us also be very clear about the consequences of supporting the motion we are debating today. In 1996-97 excise taxes on fuel amounted to $4.4 billion. By earmarking these funds for rural road maintenance, the government would then have three options: reduce spending in other areas by the same amount; raise taxes by $4.4 billion; or let the deficit re-emerge, one thing that the hon. member is very familiar with given the fact that he is from the Conservative Party.
Canadians do not want their health spending, education assistance or old age security cut by $4.4 billion. They do not want their taxes increased by $4.4 billion. And they certainly do not want the deficit to reappear after having made so many sacrifices to get rid of it. Clearly none of these options is acceptable.
Equally important, earmarking taxes is an idea that is fundamentally flawed. It would curtail the government's ability to respond to new and emerging priorities. It could result in overfunding of some initiatives and underfunding of others.
To be effective, government has to be flexible so it can adapt quickly to changing priorities. That is why the government's current policy is to direct all revenues into the consolidated revenue fund from which all initiatives are funded. Simply put, earmarking taxes would tie the government's hands by limiting its ability to address important priorities as they arise. It is simply bad policy.
It is clear that the government is in much better fiscal shape than it was even several years ago and that it will have more room to manoeuvre in the years ahead and more resources to address important issues, but we must maintain a realistic perspective in this regard. In an era of limited resources government must be focused. It must work in partnership and it must only act where it can make a difference. It must take a balanced approach to the overriding objective of building a strong economy and a secure society.
The 1998 budget announced a historic fiscal achievement and reconfirmed our balanced approach to building a strong economy and a secure society. It announced that the federal books would be balanced in 1997-98 for the first time since 1970. We will also balance the budget this year and next year. It is the first time in almost 50 years that Canadians will see three consecutive balanced budgets.
Our commitment to fiscal responsibility to put an end to credit card government does not end there. We will reduce Canada's debt burden through a two front strategy of stronger economic growth and a concrete debt repayment plan.
Our government has always recognized that a healthy bottom line is a means to an end and not an end in itself, unlike the Reform Party. The 1998 budget uses our new leverage for strategic investments in areas where government can make a difference.
For example the budget launched the Canadian opportunities strategy. The strategy, including the Canada millennium scholarships, will improve Canadians' access to knowledge and skills, something that the Reform Party is not in favour of.
The budget provides funding to increase the Canada child tax benefit by an additional $850 million in two steps.
Improving Canadian health care is one of the government's core priorities. That is why as our books improve one of our first and most significant initiatives was to introduce legislation to increase the Canada health and social transfer cash floor from $11 billion to $12.5 billion.
Finally the 1998 budget also begins the process of general income tax relief which is a key priority for Canadians and for the government. We all know, as it has been said often in the House, that at the outset tax relief measures would be modest because the financial dividend that makes them possible is modest as well. The budget announced reductions in taxes for those who can least afford to pay them, low and middle income Canadians. These measures will provide close to $1.6 billion in tax relief to 14 million low and middle income Canadians, that being 90% of all income tax filers.
These are the government's priorities. We believe that they reflect what Canadians want.
Our goal is to build a strong economy and a secure society, one that can provide Canadians with the opportunity and the ability to succeed in an ever evolving economy while still ensuring their security and well-being. Our approach is delivering real benefits for Canadians today and a robust outlook for Canada as we look toward the new millennium. We saw the unemployment numbers just the other day.
Governments have to make choices. We have to make choices about what priorities we should pursue as a government and ensure that those priorities reflect what Canadians tell us.
Earmarking over $4 billion in revenues for rural highway maintenance would not be the best choice for Canada or Canadians. That is why I urge all members to reject the motion before the House. It is bad policy. It is a policy that does not reflect Canadian priorities.
I respectfully submit that what the government has done since 1993 does reflect what Canadians have asked for. We see the fruits of our labour. We see that Canadians have made sacrifices. The government is not about to squander the sacrifices Canadians have made by imposing a policy upon them that would not reflect what they want.
The government will not start to earmark money and get into the whole scenario where it is overfunding in one area, underfunding in another area and ultimately having to make choices. To do what the hon. member is asking we would have to raise taxes. We would have to make cuts in other areas in order to fund $4.4 billion to do what the hon. member is asking. That is not what Canadians are asking for. It is certainly not what the government is prepared to do.