Madam Speaker, I will be sharing my time with the hon. member for Scarborough—Rouge River. I had the distinct privilege this year to be part of the Standing Committee on Finance and to have toured across Canada. We heard that Canadians want and expect from this government integrity, accountability, consistency and above all that their voices be heard as part of this budget process.
The finance committee met with Canadians from all walks of life. While it is important that we meet from time to time with the leaders of national organizations, we also met with grassroots Canadians across the country. One of the things they said loudly and clearly is that they do not want quick fixes. Canadians want us to operate on prudent estimates. They want us to use realistic targets which are reflected in the finance committee's recommendation that the government continue to employ a contingency reserve by setting aside $3 billion per year. As at present, the contingency reserve should be used to fund neither increased program spending nor tax cuts but that it should go toward the debt.
I did a survey in my constituency of Kitchener Centre. Eighty per cent of respondents indicated that the government needs to work on paying down our national debt. We must be attentive to this issue. Our committee also recommended that the government establish a long term target for a sustainable debt to GDP ratio.
Again we heard Canadians say “Give us realistic targets so that we can move forward in a measured pace”. This government has demonstrated its ability to do that by paying down the deficit and we are now ready to take on the debt.
Our committee also recommended the establishment of an interim debt to GDP ratio, a target of 50% to 60%, that should be achieved in this mandate.
Another issue I heard about from my constituents in Kitchener Centre was the lowering of personal income taxes.
Last spring the finance committee had the opportunity to deal with the Mintz report which looked at Canada's corporate tax structure as compared to the other G-8 countries. While the report did make some recommendations, it also pointed out that our corporate tax system is in the mid-range of other G-8 countries, roughly where we would hope to target.
Our payroll taxes in comparison to other G-8 countries, despite what we read in the media, are on the low side. As a matter of fact this government has in four consecutive moves lowered EI premiums to the point where as of January 1 of this year they were lowered to $2.55.
One of the areas where we need to be attentive is in our personal income taxes. That is something the finance committee suggested we look at as we can afford to do it. Again, it has to be a change that is sustainable and one that Canadians can count on.
Across this country in every province we heard concerns regarding health care, the universality of our health care system as well as the standards of our health care system. It is that message that the finance committee carried forward in recommendation 17, recommending that the government strengthen its involvement in health care by further increasing the cash floor by $1 billion starting in 1999 to the year 2000.
It is important that we add money and help to give a federal presence and federal leadership in health care. But the problems facing health care are far greater than merely money.
Previously I served at other levels of government as well as on a district health council. I know that health care, not only in Ontario, in Kitchener Centre, but across this nation is changing. It is evolving from an institutionally based health care system to a preventive health care system. We need to look at how we fund health care. It is not just a matter of dollars.
We also heard in many communities, my own included, that we need to be attentive to the issues of both home care and pharmacare. But again I hear the people of Canada asking for a vision, for a strategic plan, not just merely dumping money on problems.
Recommendation 19 recommends that the federal government fund health care research and that this research money be doubled. This should be achieved within five years.
The issue of standards of reporting in health care is very popular and certainly something which Canadians are interested in seeing. A demonstration that has benchmarks so that we can measure the kind of health care we as Canadians enjoy needs to have the kind of research and statistics behind it in order to make those yardsticks meaningful. Funding to medical research will help to get us halfway there.
The finance committee also heard that research, not only on behalf of government but to encourage the Canadian private sector to enter this important industry, needs to be encouraged. It is on that note that we suggested the networks of centres of excellence program have their funding raised as well as technology partnerships.
The community that I represent was largely manufacturing in its historic base. I see that base evolving. My community is looking for highly skilled technical workers. These are the workers who will be needed to partner with business in the next millennium.
The committee also recommended that the government enhance its financial support for the National Research Council. There are two universities and community colleges in my riding. There is talk about the brain drain. Giving funding to research and especially the granting councils because of the peer review aspect is the way not only to enhance research and the end product, but also the way to create a milieu where we will keep the best and brightest in Canada.
Poverty is an issue that I heard about across Canada. It is an issue I care about deeply and certainly one that I have heard about in my community. We are trying to address this issue through some of the recommendations in the budget.
The committee recommended that we build on the 1998 measures which increased the basic personal amount and spousal amount by $500 to again increase it this year by a further $200, bringing the amount to $700 of additional income that can be earned tax free.
The committee also recommended that we increase the basic personal and spousal amount by $500 for lower income people.
We also suggested that we continue to take away the 3% surcharge which was partially taken off in last year's budget, and it is an issue of credibility that we now do it for earners above the $30,000 level.
The committee recommended that the government reintroduce indexation when the fiscal situation improves. In the meantime, measures should be taken to offset the impact of deindexation.
Measurable, predictable actions of this government are what has put this nation on a stable footing. It is essential that we continue down the path that looks at the impacts of global and domestic trends and that we respond to the evolution of health care and our social system.
I am very proud to be a member of the finance committee that brought forward what I think is a very thoughtful, forward-looking prebudget document.