Mr. Speaker, I will be splitting my time with the hon. member for Chatham—Kent Essex.
The 1999 federal budget is good news for the people of Guelph—Wellington. Last August I concluded a prebudget survey asking constituents what they would like to see in the budget. I sent a copy of the responses to my colleague the Minister of Finance. I am proud to say that he listened to the needs of our community.
When asked about their budget priorities, the most common answer in my riding was health care. This is a health care budget. An increase of $11.5 billion dollars over five years with an immediate transfer of $3.5 billion is great news for everyone. This infusion of funds brings the so-called health care component of the Canada health and social transfer back to the level it was before the period of restraint in the mid-1990s. It is very important to note that all of this money will go directly to health care.
A health accord was recently reached as part of the social union negotiations. There the federal government agreed to increase funding for health care. In turn, the provinces promised to dedicate all new health money to health spending. The federal government has upheld its end of the bargain. I am confident that the provinces will do the same.
The era of federal-provincial struggles is over. The social union agreement established an administrative framework for the management of Canada's crucial social programs. It established a process of dispute avoidance and resolution. It is proof that by working together the provincial, territorial and federal governments can build a better Canada. I believe that this atmosphere of co-operation will continue into the new millennium.
How will this health care money benefit the residents of Guelph—Wellington? It will be used to address the immediate problems of the medicare system, bed shortages, waiting lists and staffing difficulties. However, it will also be used to ensure the long term survival and fitness of the health care system that Canadians everywhere are so very proud of, a system that is the model for countries around the world.
One aspect of this funding increase that I find truly remarkable is that the provinces are given the flexibility to determine when they will receive the money that they need. This way every province will be able to meet the needs of its residents at its own pace.
In addition to money for front line services, $1.4 billion has been allocated to improve health information systems so that Canadians know how their health care dollars are being spent. It will also be used to promote health related research and innovation in areas like breast cancer treatment and the Canadian institutes of health research.
Finally, it will focus on prevention and ways to promote community health.
Something else that is big news for Guelph—Wellington is the equalization of transfer payments. It used to be that the have provinces, including Ontario, received a lower per capita amount under the CHST. Within three years these payments will be equalized so that every Canadian receives the same transfer payment because after all, Canadians want a society where everyone is treated equally.
In addition to health care funding, many residents of Guelph—Wellington wanted tax cuts. Once again the federal government has delivered.
Last year the federal government initiated a program of progressive tax cuts. This year we have built on that foundation by increasing the basic personal income tax credit from $6,456 to $7,131, an increase of $675. The 3% surtax has also been eliminated. Families with incomes of up to $45,000 will see their taxes reduced by at least 10%. When combined with the measures announced in the previous budget, this amounts to $16.5 billion in tax relief over three years.
These measures will also take an additional 200,000 low income Canadians off the tax rolls. Further, the federal government has allocated an additional $300 million for the child tax benefit. The threshold for benefits has been increased to allow almost $2 million for low and modest income families to receive benefits. This is an important tool in the fight against child poverty.
For the residents of Guelph—Wellington, tax relief means more money in people's pockets but not at the expense of our standard of living. It is because we have balanced the budget that we are able to do things like cut taxes and increase spending on social programs.
However, we do not believe that we should throw caution to the wind. We will not make decisions today that will run us into the red causing future generations to pay for past mistakes. No, we will continue to project two-year fiscal plans to have a contingency fund and to use that contingency fund to pay down the debt if it is not needed for other things.
This is only the second time since 1951 that a federal government has recorded two balanced or surplus budgets back to back. It is also only the third time since Confederation that we have had four consecutive years of budgets in the black. We will continue to improve on our nation's financial situation while improving the standard of living for all Canadians.
We cannot pursue either goal at the expense of the other, but rather, we must achieve balance.
The University of Guelph is one of the best post-secondary institutions in Canada and an important part of my community. It too will benefit from this budget and therefore so will the people of Guelph—Wellington.
The 1999 federal budget builds on the Canadian opportunities strategy announced last spring. Over the next three years the federal government has allocated $1.8 billion for the creation, sharing and commercialization of knowledge and innovation. This money will benefit the University of Guelph in a very real way.
The Canada Foundation for Innovation will distribute $200 million to improve research infrastructure. The Natural Sciences and Engineering Research Council will receive an additional $75 million to fund research and graduate studies. Biotechnology research will receive a $55 million boost over three years. Larry Milligan at the University of Guelph has been very involved in this field.
Once this knowledge is created the federal government will work to commercialize new technology, thereby helping to strengthen our economy and create jobs. Young people especially will benefit from this commitment to research and innovation because they will be on the cutting edge of technology and possess the skills needed to succeed in today's marketplace.
Our method is working. The 1998 budget announced the Canada education savings grant to help parents save for their children's education. I am happy to report this program has been twice as successful as projected. Between 1972 when registered education savings plans were introduced and 1997 there was a net accumulation of $2.5 billion in the plan. With the introduction of last year's CESG that amount increased to $4 billion, which is very impressive.
Another example of the success of our fiscal management program is continued job creation. Our national unemployment rate is 7.8%, the lowest it has been since 1990. In Guelph the rate is 5.8%. Last year youth employment saw its largest increase in 20 years. Canada leads the G-7 in job growth.
Over three-quarters of the new spending outlined in this budget reflects two of the highest priorities of the constituents of Guelph—Wellington and of all Canadians, health care and access to knowledge and innovation. However, it does not neglect other important areas such as funding for youth, justice, foreign aid and Canadian forces personnel.
I would like to commend my colleague, the Minister of Finance, on a budget that benefits the people of Guelph—Wellington and Canadians everywhere. This budget not only reflects the priorities of Canadians but the goals of the government. We will strengthen universal health care, provide tax relief for our citizens, fight child poverty and invest to increase our standard of living by promoting access to knowledge, research and innovation.
This budget reflects the balanced approach for which the Liberal government is known. It is one of the reasons Canadians have elected us to form two consecutive majority governments. While reducing our debt to GDP ratio is important, something we have done and will continue to do, our bottom line is people. We were elected by them to help improve their lives by steering the nation on the right course. Given the contents of this budget I would say we are definitely doing our job.