Madam Speaker, since this government first came to office, the overall level of the tax burden and especially how it impacts the most vulnerable in our society has been a major consideration in our budget deliberations. This year is no exception.
I would like to thank the hon. member for raising an issue that is not only timely but also is of considerable importance and relevance to our underlying success and stature as a nation. It provides an appropriate opportunity to highlight actions that our government has taken in budget after budget.
Both the Prime Minister and the Minister of Finance are on record as saying that our government is committed to reducing the tax burden on Canadians. The 1998 budget gave concrete proof of this commitment and that this commitment is real, with over $7 billion over three years to the benefit of 14 million Canadians.
Both the Prime Minister and Minister of Finance have made it clear that our priority within tax reduction is to give first place to those who are in the greatest need, those in poverty or those with low incomes and especially families with children. Here again our budgets have given proof to this priority through real performance.
For example, in the 1998 budget we acted to increase the amount of yearly income that low income Canadians can receive on a tax free basis by $500. That took 400,000 Canadians off the federal tax rolls completely.
Even more important in my mind has been the work we have done with the provinces and territories in the development of the national child benefit system. Our goal is to ensure that children are always better off when their parents leave welfare. That is why the 1997 budget announced an $850 million increase in our support to low income families through the Canada child tax benefit. That was followed up in the 1998 budget with measures to provide an additional $850 million increase in the child tax benefit, $425 million in July 1999 and $425 million in July 2000. Taken together, these measures benefit about 1.4 million Canadian families with 2.5 million children.
Let me make one thing clear. Our government recognizes completely that such measures are but steps, though important steps, in a much longer journey. We make no claims that we have done enough in the battle against need and hardship, but what we have done is what we could afford to do. This is the reason that while I respect the intent of today's motion, I cannot endorse its sweeping menu of action.
We have to remember that just five years ago this nation was burdened with a deficit of $42 billion. Interest payments on our surging debt were consuming about 33 cents of every tax dollar. Our fiscal follies were exacting a painful price. It was measured in interest rates that were too high and job creation that was too low. That is why our government has constantly balanced our commitment to tax reduction and our priority to ease the burden on low income Canadians with another equally binding commitment, that is, before all else to get the government's books back in balance.
What is important to understand is that these two binding commitments are not in conflict. They actually reinforce each other. The proof of this is also very visible today. The surest form of sustained assistance for Canadians in need is the opportunity to earn a better living, and that means jobs. The surest way for the government to obtain the revenues to better assist Canadians in need is through real economic growth, the type of growth that is helped by low interest rates and marked by growing employment.
We were not going to achieve these things if we were to continue as a nation to borrow against the future. That is why we took tough consistent action to put an end to government that lived beyond its means. Our success here is also a matter of record.
In the fiscal year 1997-98 we eliminated the deficit for the first time in over 25 years and we committed ourselves to balanced budgets again this year and in 1999-2000. It was not an abstract achievement. It has helped to position us so that despite a difficult global economy, Canada is still recording moderate growth. More importantly, this January our unemployment rolls fell to 7.8%. Yes that is still too high, but it is also the best performance since June 1990. In other words more Canadians are working than we have seen in almost a decade. That is the best way, the most sustained way to hit poverty head on.
It was our fiscal success that made it possible for last year's budget to begin the process of broad based tax relief so many Canadians desire. We were able to undertake investments such as the millennium scholarship fund, an investment that will help thousands of young Canadians obtain a higher education.
I emphasize once again that there is much more to be done but we will not do it in a way that jeopardizes the sustained advances, fiscal and economic, that have been hard earned by Canadians. That is why we did not and still do not have the luxury of moving toward the menu of actions the hon. member opposite is suggesting.
The world economy is still volatile. Private sector forecasts of Canadian economic growth have been consistently ratcheted down over the last nine months. While there have been some positive indications currently, the time is much too soon to make the kind of tax reduction commitments that are being suggested in this motion which we would pay for year after year after year.
Yes we will continue our process of expanding tax relief as the Prime Minister and the Minister of Finance have stated, but we will also place continuing value on prudent planning and fiscal forecasts.
We dare not repeat the error of the hon. member's own party when it was in government of relying on rosy forecasts today that deliver economic turmoil and fiscal failure in the years that follow. No, we will continue our balanced approach because it is the approach that helps the most Canadians in the most need in the surest way. It is the approach that best ensures our government can continue to provide real assistance where it matters and in a way that can be sustained. Let me remind the House that this targeted approach to helping those in need has been a constant in budget after budget.
We know that charities are vital partners in the battle against poverty. That is why in our very first budget we lowered the threshold by which charitable donations begin to earn the 29% tax credit. We know that taking targeted action to boost assistance to students and to people trying to improve their economic condition by upgrading their education helps address poverty.
In conclusion, it is hardly strange that our government's record of tax relief may not be as dramatic or all encompassing as some opposition members say they would like it to be. It is always easy to spend money when one is not answerable to the future consequences.
A responsible government has to address more than just good intentions. It also has to face hard facts and deal with real risks. That means facing up to continuing fiscal constraints and dealing with the real risk of economic volatility.
The most important fact of all is that this government has proven year after year and budget after budget that a balanced and moderate approach delivers the results that Canadians want and that Canadians deserve. These results are positioning all Canadians for a more secure future whereby we can continue to deliver genuine gains for Canadians in need, rather than just pontificate politically as we just heard from the party opposite.