Madam Speaker, it gives me great pleasure this evening to speak in the prebudget debate. I will reflect my concerns and the concerns of my constituents in Oak Ridges.
Governing means that one has to make choices. Canadians have indicated consistently that they want to see additional dollars for health care. They want to see further tax reductions. They want to see further debt reduction.
The government under the leadership of the Prime Minister and the Minister of Finance has responded effectively to the economic situation in Canada. When the government was elected in 1993 we had a $42 billion deficit. Through strong fiscal management, leadership and determination we now have balanced books, renewed economic consumer confidence and a strong growth rate. Success in eliminating the deficit has given us the financial ability to deal with other key issues.
Like many Canadians, I am concerned about future of medicare. This government is unequivocally committed to preserving Canada's publicly funded health care system. I support the recommendation of the Standing Committee on Finance that the federal government strengthen its involvement in the health care system by further increasing the cashflow by $1 billion starting in 1999-2000. If the cashflow is raised by $1 billion dollars the 1999-2000 total entitlements will increase by $6.3%. As a result when compared to 1998-99 we will have $27.6 billion compared to $25.7 billion. Provinces will have received $4 billion extra by 2002-03. The total CHST entitlement will reach $29.5 billion in 2002-03. I support additional funding for the proposed Canadian institute of health research. I support doubling research for health in Canada.
However, Canadians want accountability. Transferring millions of dollars to the provinces without some form of accountability and the ability to measure the quality of care needs to be part of the formula. Canadians want to know where those dollars are going. This is something we as a federal government should be committed to.
Canadians want further tax reductions. The government responded in the 1998 budget with a $7 billion tax cut over three years to low and middle income families. I support the elimination of the temporary 3% surtax. I also believe it is time to announce a timetable for the elimination of the 5% surtax starting with a 1% decrease this year.
The finance committee recommends and I support the 1998 budget measures that increase the personal and spousal amount by $500 for low income taxpayers. I think it should be increased a further $200, bringing to $700 the amount of additional income that can be earned tax free. I support the view that this $700 increase of the basic personal spousal amount be available to all.
I have had many calls and letters regarding the 20% foreign property rule. Canadian taxpayers want, and I believe should have, an increase by 2% increments to 30% over a five year period. I think this is the right thing to do. It will allow Canadians to achieve higher returns on their retirement savings and reduce their exposure to risk, which I believe will benefit all Canadians when they decide to retire.
Debt reduction is the third area that Canadians have signalled their support for. I have spoken many times about debt reduction in the House and I believe the government has a firm commitment to debt reduction and has a debt reduction plan in place. The government has made significant strides in debt reduction and this year the debt to GDP ratio was projected to be reduced slightly below 63% from almost 72% in 1995-96.
Leadership and commitment to Canadian values, governing with a social conscience and providing leadership on tough economic issues has been the hallmark of this government, whether the issue is homelessness, infrastructure or health care.
I believe that the government should continue the Canada infrastructure works program that was launched in 1994. We have a $40 billion deficit in infrastructure. In Canada roads, bridges, sewer and water systems need to be addressed, in spite of the federal-provincial-municipal cost shared program which generated investments exceeding $8 billion, with federal contributions of $2.4 billion. It supported over 16,000 infrastructure projects. It created 125,000 short term and 10,000 long term jobs across this country. It is an excellent example of governments and the private sector working hand in hand. That is what Canadians want. That is what Canadians expect and that is what the government delivered.
The program assisted municipal governments in upgrading Canada's physical infrastructure and it promoted rapid job creation to accelerate the economic recovery.
I believe that this program was a good unifying model. It demonstrated a shared purpose and accomplishment among all orders of government. Sixty-three per cent of all projected funds were for physical infrastructure, at 31% for water and sewer works and 32% for roads and bridges.
The program addressed environmental, economic competitiveness and job creation issues. The Silverman report, the finance department's evaluation and the auditor general's evaluation all indicated that it was a great success.
I believe that we need to develop a five year minimum strategy to national infrastructure and continue to work with our partners to eliminate this infrastructure deficit.
I also urge the Minister of Finance to consider making employer provided transit passes an income tax exempt benefit, similar to what already exists in the United States and western Europe. I believe this would eliminate as many as 300 million kilometres annually of urban automobile traffic within 10 years. It is also expected to reduce by 35% the expected growth in peak period travel in our major urban areas, as indicated both by the Federation of Canadian Municipalities and the Canadian Urban Transit Association. It will also help to achieve our Kyoto commitments.
Another area that I believe should be addressed is providing targeted tax relief for those Canadians who must bear large expenses as a condition of employment. Such is the case of mechanic's tools.
I know that the Minister of Finance must respond to many demands and many needs. This government has a five year mandate. Not everything was done last year. But we are going in the right direction. We are committed to keeping Canada's finances in the black, providing sound fiscal management that all Canadians can be proud of. The pace may not be as fast as some may like in some areas, but the goal is shared by all. The direction is clear and I believe that this budget will certainly address many of those key issues that Canadians have been calling for.