Mr. Speaker, it is with a great deal of honour that I rise today to enter this historic budget debate. I do so on behalf of the residents of Waterloo—Wellington and indeed on behalf of all Canadians who recognize the tremendous work that the government has done to get our fiscal house in order, to provide tax relief and to ensure that our health care system is secured for the next generation.
I begin by outlining the strong fiscal outlook contained in the budget. It is no secret that budget '99 is an outstanding testament to the efforts and sacrifices of all Canadians to put Canada's fiscal house in order. The government is dedicated to advancing the living standards of Canadians through the creation of well paying jobs, a robust economy, equal opportunities for all and a safety net for those in need.
In 1998 Canada's economy flourished despite the uncertainty in overseas markets that has hit some parts of Canada, our western provinces particularly hard. Yet job creation in Canada outpaces the other G-7 countries. Employment growth remains strong. There were 453,000 jobs created in 1998 following the impressive gain of 368,000 jobs in 1997.
I point out that almost 40% of the new jobs created in the last 12 months were to Canada's youth who posted their strongest yearly employment growth in over 25 years. I also want to note that interest rates remain low and long term rates are nearly historically low.
It is important to note that Canada's economic success is due to sound economic and fiscal policies and the hard work and sacrifice of all Canadians. The budgetary deficit which stood at $42 billion in 1993-94 was eliminated in just four years. In fact, a surplus of $3.5 billion, the first surplus in 28 years, was recorded in 1997-98 and went to pay down the debt.
This year the government will begin balancing its books or better. For the first time since 1951-52 the government has been deficit free for two consecutive years. The government is committed to further balancing budgets in both 1999-2000 and in 2000-2001. This will be the third time since Confederation that the government will record balanced budgets for at least four consecutive years. That is truly historic and worthy of note.
The balanced books means an ability to invest more in health care. Reducing our debt is an investment in our future. Our goal is to put the debt to GDP ratio on a steady downward track. As we reduce our federal debt it means that more resources are available to strengthen health care, to provide tax relief, fight child poverty and invest in research and innovation.
In 1995-96 when the debt to GDP ratio was at its peak, 36 cents of every federal revenue dollar went to paying down the debt. Last year that was down to 27 cents. Again, it is truly remarkable. This is tremendous progress and underscores the government's commitment to debt reduction.
Canada's strong economy and bright prospects are clear evidence that strong economic fundamentals are helping us to prosper. Our record of maintaining sound economic and fiscal management has led to strong growth and a reduced debt burden which in turn has allowed the government to reinvest in priorities, especially health care.
I turn to our health care system. Canadians believe our health care system is a fundamental core value. Canada's publicly funded health care system is a pillar of our society and reflects the values shared by us all. I am pleased to see that preserving and building on our health care system's strength is a cornerstone of budget '99.
Over the next five years the provinces and the territories will receive, as everyone knows, an additional $11.5 billion for health care. This represents the largest single new investment our government has ever made. These new monies will help the provinces and the territories deal with Canadians' immediate concerns about health care, things like waiting lists, crowded emergency rooms, diagnostic services and other things. The government is committed to building a stronger health care system that reflects the changing needs of Canadians and provides timely access to high quality health care.
I take this opportunity to fully outline what this means. Of the $11.5 billion dedicated to health care, $11 billion will be provided through future increases in the Canada health and social transfer. Over the next three years provinces will receive an additional $6.5 billion. For this fiscal year, $3.5 billion will be allocated as an immediate one time injection into the CHST. Provinces and territories will be able to draw on these funds in the manner which best suits their needs and their health care systems.
The $2.5 billion increase to the CHST brings the total cash portion to $15 billion, making the health component of the CHST as high as it was before the spending restraint of the mid 1990s. Combined with the CHST tax transfers and others, federal support is expected to reach a new high by the year 2001-02. This is truly good news for Canadians wherever they live.
In addition, budget '99 invests close to $1.4 billion in improving information systems, providing health related research innovation, improving first nations and Inuit health services and preventing health problems. This will ensure that doctors, nurses, administrators and researchers have the most up to date knowledge, information, treatment and cures at their fingertips. It will also allow them to innovate and learn from each other in order to benefit all Canadians.
Health research helps prevent a wide range of diseases from polio to tuberculosis. A national task force representing the health research community has developed an innovative proposal to create the Canadian institute of health research. The institute would bring together the best researchers from across Canada in areas such as aging, arthritis, women's health, cancer and diseases of the heart.
Budget '99 sets aside $240 million over the next two years to support this proposal. While we lay the groundwork for the institute, increased funding will go to the existing federal agencies that support health research and to hospitals and universities to help create world class research facilities. That is truly important to note.
Medicare is not only good social policy, it is good short and long term economic policy. We will ensure that every health care dollar spent by the Government of Canada is used to the greatest possible extent to deliver those services.
Working with the provinces and the territories and all the stakeholders in this very important public policy area, the government then is investing in high quality and high calibre health care for all. This is something Canadians need, want, deserve and expect.
In addition to medical research the government is moving to strengthen other areas of research, innovation and knowledge. This is because we know it is very important to raise the standard of living for all Canadians. In today's fast paced world investing in Canadians' access to knowledge and innovation is crucial.
Budget '99 builds on previous efforts by investing more than $1.8 billion in innovation over the remainder of this fiscal year and the next three years. This investment will help prepare Canadians for the new economy and the new millennium.
Over the past five years our government has made important investments in support of knowledge and innovation and we will continue to do this. Budget '99 provides an additional $200 million for the Canada foundation for innovation's initial $800 million endowment which is now being used to support the acquisition and modernization of world class research infrastructure. An additional $150 million over three years will be invested in technology partnerships Canada starting in 1999 and 2000. This will help keep Canada at the forefront of technological innovation, open new market opportunities and support the creation and growth of high technology industries.
The Natural Sciences and Engineering Research Council, the Social Sciences and Humanities Research Council and the National Research Council will also receive $121 million in funding for research and support for advanced studies over the remainder of this fiscal year and the next three years as well.
Networks of centres of excellence will also receive $90 million over three years to foster research partnerships among world class researchers in the private sector across Canada.
More than 100,000 young Canadians a year will benefit from summer employment, internships and job information through the youth employment strategy. The program has been made permanent and funding has been increased by 50% to $465 million over the next three years. An additional $110 million per year will be invested in a new Canada jobs fund to create sustainable long term jobs in regions most directly affected by high unemployment.
That is very important to note and taken all together these investments represent a balanced and comprehensive approach to advancing Canada's knowledge and innovation agenda. They will help businesses, organizations and individuals to put new ideas to work in job creating industries for the future. For Canadians this means a better standard of living and a better quality of life.
This positions Canada and all Canadians for the 21st century. This helps to secure the future for our children and our children's children. This truly represents an historic budget that we as a government and all Canadians can be proud of, knowing it positions our country to enjoy the prosperity that lies ahead in the future.