Mr. Speaker, on February 16 the finance minister presented the 1999 budget. The budget is fiscally responsible and it invests in Canada's social priorities. It provides tax cuts and health care funding. The budget is good news for my constituents of Vancouver Kingsway and for all Canadians. Today I would like to address three aspects of the budget that will increase our standard of living and enhance our quality of life: health care, research and development, and tax relief for all Canadians.
Health care is the first priority of this budget. As a member of the finance committee I have heard from many Canadians that more resources should be devoted to health care. This is also a key issue in my riding. This year's budget has answered this demand. It has been called the health care budget because it greatly increases federal government support for health care. An additional $11.5 billion will be transferred to the provinces through the Canada health and social transfer over the next five years. In addition to the CHST enhancement, the 1999 budget allocates $1.4 billion over the remainder of the fiscal year and in the next three fiscal years. Those funds will improve access to quality health care information and increased support for research and innovation in health care.
The second important aspect of this budget is research and development funding. While the government is strengthening the health care system, it is also working to expand and integrate research in health care. Our government recognizes that innovative ideas are essential to maintaining a successful and competitive economy. Medical research can ensure the highest quality of health care for Canadians now and in the future.
This budget provides significant increases in funding to the Canadian Foundation for Innovation for biotechnology research and development, to the Natural Sciences and Engineering Research Council of Canada, to the Social Sciences and Humanities Research Council of Canada and to the National Research Council. There will be increased support for the successful network of centres of excellence, technology partnerships Canada and the Canadian Space Agency.
The third important aspect of the budget is tax relief. It is because our government has acted responsibly in recent years that we are in a position to implement tax reduction measures. Last year tax measures for low and middle income Canadians were introduced. Now we have begun to offer broad based tax relief to all Canadians.
Every Canadian who pays taxes will get a tax cut this year and 600,000 Canadians will not have to pay any income tax at all. Important initiatives include the phasing out of the 3% surtax on personal income, increased benefits to middle income families and increased child benefits to two million modest and low income families. The basic personal exemption has also been increased to $7,131. For the first time since 1965 nothing has been borrowed to pay for the tax relief.
While I do not have the time to discuss other elements of the budget in detail, I would like to mention several important areas. Highlights include support for learning opportunities and employment, broadening the child tax benefit and continued debt reduction.
I am happy to report that this budget will have a great impact on the province of British Columbia. That is where I come from. It will add $270 million a year during the next five years to B.C.'s provincial revenues in addition to tax breaks to individual British Columbians.
The cap on B.C.'s share of transfer payments has been lifted. For many years B.C. was one of the three provinces getting a lower per capita share than other provinces. Now the finance minister has lifted the cap so that over the next three years all provinces will receive the same amount on a per capita basis. Over five years it means that B.C. will get an additional $1.4 billion plus $471 million for health care. This is tremendous.
Tax breaks will result in B.C. taxpayers sending $200 million less to Ottawa in 1999. Even B.C.'s finance minister called this budget good news. It is great news for all of us.
As an MP from Vancouver Kingsway and a member of the finance committee I am proud of the budget our government has delivered. It will ensure that Canada maintains a strong economy and invests strategically in key economic and social priorities. Finally, it provides tax relief for all Canadians.
I congratulate the Minister of Finance, the Prime Minister and all my colleagues for the thoughtful and well planned budget for Canada.