Madam Speaker, I welcome the opportunity to address this House and to speak to the sixth Liberal budget. The 1999 budget demonstrates the dedication of the Liberal government to advance the living standards of Canadians through the creation of well paying jobs, a robust economy and equal opportunities for all. All this has built an excellent health care system and a safety net for those in need.
In the last five years I have had the privilege of serving with the Standing Committee on Finance and to take part in the prebudget consultations held throughout Canada. The great number of Canadians who took time from their busy schedule to present their views had one thing in common, their strong desire to build better lives for themselves and their families.
Canadians wish to be part of a society that not only provides opportunities for everyone but that provides support when through no fault of their own Canadians need a helping hand. This government has listened. The results may be seen in the positive turn taken by the Canadian economy.
The unemployment rate has fallen considerably since the Liberals first took office. Now it stands at its lowest level in almost a decade. I am proud to report that my own riding of Niagara Falls and the Niagara area continue to grow and to prosper. Lately we have witnessed new developments like expansions of existing places of employment and many new businesses opening their doors. This in turn translates into jobs.
In the month of November alone, 13,000 more people were employed in the Niagara area. This means 13,000 more jobs than last year. According to the last labour force survey, 2,600 additional people were employed in the accommodation, food and beverage industry. The unadjusted unemployment rate dropped from 8.8% to approximately 6%. In Niagara 70 new businesses have opened since last spring, businesses that range from large chains and department stores to small entrepreneurs finding their niche in today's market.
Existing businesses continue to expand and are making large investments in their operations. This will not only ensure that employees keep their jobs but it will create new positions. An increase of workers in the agricultural sector has seen an additional 5,000 people gain employment. As a result of previous Liberal budgets, interest rates have declined substantially. An economist will say that low interest rates encourage both investment and expansion. We have wrestled to the ground. Now it is firmly under control. All the economist indicators are telling us that it will remain so.
Canada today enjoys a solid reputation as a low inflation country. What a difference from the beginning of 1994 when Canada's unemployment rate stood at 11.5%, when our country was faced with a $42 billion deficit, the largest in Canadian history, a large deficit that we were able to eliminate in just four years. This year for the second consecutive year the government has brought down a budget that is balanced. Not only that but in this fiscal year we will again balance the books.
This is the first time since 1951-52 that Canada has been deficit free for two years in a row. A surplus of $3.5 billion, the first surplus in 28 years, was recorded in 1997-98 and it went to pay down the debt.
Today Canadians believe their government can make a difference. Despite the progress we have made in balancing the books, we are not forgetting that the role of our government is to respond to the needs of Canadians. The role of our government is to help Canadians adjust to changes and prepare for the challenges that we all have to face in the new millennium.
During prebudget consultations Canadians voiced one main concern, the importance of their health system. They expressed to us the fear that the quality of care available to them would not be there when their loved ones would need it. These concerns had to be addressed. Here, once more, we have listened to Canadians.
While budget '98 was an education budget, budget '99 makes health the largest single investment this government has ever made. Since the elimination of the deficit in 1998 three-quarters of all new government spending has been focused on health and education.
With the provisions in the budget the provinces and territories will receive from the federal government over the next five years an additional $11.5 billion specifically for health care.
The Government of Canada has made major commitments to Canadians through Canada's new social union and the new measures announced in the 1999 budget.
Now Canadians will be able to see tangible benefits such as improved health care, better programs for our children and our young people.
We share the strong desire of all Canadians to have confidence in our health care system and to see that medicare will continue to meet everyone's needs well into the 21st century. Quality health care is a priority for Canadians. We all want to be reassured that the health care system is delivering accessible, high quality care in a timely fashion.
Canadians also want to know how and where their health care dollars are being spent. When medicare was first introduced our focus was on curing illness with doctors and hospitals. Now good health care is as much about preventing illness as curing it. We know we need to develop innovative ways to provide care in the home and community for people who are ill or who have long term health problems. Good home care will free hospital beds for those who need urgent medical attention.
In the last decade patients' needs have evolved, health care needs have changed and medical technology has had to keep pace with these changes. It is normal therefore to re-examine the way we do things to continue to provide all Canadians with a superior health care system. I believe that with this budget the Liberal government has shown its commitment to medicare.
This government will never allow a two tier system of medicine to take hold in Canada, one for the poor and one for the rich. Support and research are paramount to a good health care system.
The 1999 budget builds on previous Liberal government investments in research, knowledge and innovation by injecting $1.4 billion over the remainder of 1998-99 and the next three fiscal years.
This will expand and integrate research and innovation in health care. Moreover, this funding will allow us to continue exploring with the provinces innovative approaches to rural and community health care.
This budget builds on the Canadian opportunities strategies outlined in last year's budget. The investment of more than $1.8 billion over the remainder of this fiscal year and the next three years will support the creation of employment. It will strengthen research facilities, provide more opportunities for advanced research, develop new and better uses of the information highway and directly support employment, especially for our youth. This is a very important measure in this budget. It will tell many young bright Canadians, scientists, to unpack their bags and stay in Canada.
With the provisions in this budget the Liberal government has provided target tax relief. With budget '99 we begin to broaden tax relief, thus benefiting more Canadians. Our approach is very clear.
Tax reduction should benefit those who need it most, low and middle income Canadians. Tax relief should focus on personal income taxes and tax relief should not be financed with borrowed money.
The Canada child tax benefit has been enhanced by $300 million. This will extend benefits to modest and middle income families. Two million modest and middle income families will receive higher benefits and a portion of the benefits will be extended to about 100,000 families that currently do not receive it.