Madam Speaker, it is a pleasure to rise in the House today to speak on the budget and what I would describe as a fiscal prescription for a healthy Canada as we enter the new millennium.
When the Liberal Party came to power in 1993, Canada's fiscal house was crumbling at its very foundation. The previous government had let the debt skyrocket out of control for years and was operating with a $42 billion deficit.
This party, unlike others in this chamber, learned the lessons of history. This Liberal Party understood that if Canada was to be an economic force to be reckoned with in the new millennium, we absolutely had to get the country back on track.
Canadians wanted a government that would actually take a leadership role and devise a new economic plan for this country, one that actually worked. Sustained by our political courage and armed with the knowledge that Canadians supported our policies, we eliminated the deficit in four years and recorded a budgetary surplus in 1998 of $3.5 billion, the first such surplus in 28 years.
We have put Canada's fiscal house in order. We delivered on our promise. However, we do not hear the opposition members recognizing the major strides this government has made over the last five or six years. No, they are much too busy trying to draft catchy sound bytes while we are developing sound economic policy.
The facts speak for themselves. Our record has shown that we have delivered the goods when it comes to fiscal responsibility. When the history of Canada is written in the years and decades ahead, I have absolutely no doubt that the historians and economists of the future will say that the last half decade of the 20th century was absolutely critical in terms of rebuilding Canada's economic foundation.
I am also supremely confident that history will record the Prime Minister and the Minister of Finance as being the people responsible for what the Economist magazine called Canada's economic miracle.
This budget is part of an overall plan, one which did not begin last year and one which will not end next year. It is part of a building process which eliminated the deficit and began producing surpluses which have allowed us to make major investments, last year in education and this year in health.
As the Minister of Finance has so eloquently said on several occasions, budgets are more than entries in the books of a government, they are chapters in the progress of a people. So true, so true.
Yes, budget '99 focuses on health. Over the next five years this government will inject $11.5 billion into health into this country so that the provinces have the proper tools to address concerns about hospital waiting lists, crowded emergency rooms and shortages of diagnostic services. This will ultimately result in a stronger health care system that reflects and meets the changing needs of Canadians. I believe that this is good news for every Canadian and I am not alone.
My riding of Nepean—Carleton is located in the national capital region. This is an area that has felt the sharp edge of the Harris Tory cutting sword. The premature Tory tax cut put us face to face with the Ontario government's vision of better health care which was less hospitals, longer waiting lists and poorer service.
With the additional federal dollars, the health care situation in Ontario is starting to move in the right direction. This is recognized by people who are close to the issue. For instance, hospital and municipal officials in Ottawa-Carleton are labelling our commitment to health care as good medicine.
Local heart surgeon and Conservative senator Dr. Wilbert Keon said that the infusion of money into health care is “very good news”. The mayor of Ottawa, Jim Watson, was even more optimistic. He said, “We could learn a lesson from this budget, that you can have more money to invest in social programs when you rein in your spending”.
Hopefully the Ontario government learns from this budget, learns that our government's commitment to health care is just what the doctor ordered. However, there is much more good news in the budget than an investment in health care.
Whether one lives in Nanaimo or Nepean, the budget provides tax relief without borrowing money to pay for it. This is something that Canadians have not enjoyed since 1965. Building upon the initiatives in last year's budget, budget '99 prescribes $16.5 billion in tax relief over the next three years for the 15.7 million taxpayers in the nation.
The government understands the tax burden on lower income Canadians. That is why we have removed 200,000 taxpayers from the tax roll this year. Over the past two years our initiatives have resulted in a total of 600,000 Canadians escaping the usual financial pain that comes with a T-4 slip.
Together the 1998 and 1999 budgets provide the largest income tax reductions to the lowest income levels. This translates into a 10% reduction for single taxpayers earning $20,000 or less, and a 10% reduction for families with annual incomes of $45,000 or less. Families with two children and an annual income of $30,000 or less will pay no net federal income tax.
This year we have also removed the 3% surtax for all taxpayers. That is good news again for every Canadian.
One very important issue this budget addresses is that of productivity, the key to achieving sustained increases in our standard of living. Over the past few months the media has focused on what it calls Canada's decreasing level of productivity. Budget '99 has a plan to promote productivity growth to improve the standard of living and the quality of life for all Canadians.
We have already taken steps to foster this important initiative, including the elimination of the deficit as has already been mentioned, putting the debt to GDP ratio on a strong downward track, and the tax cuts that have already been mentioned.
However, knowledge and innovation are the real keys for advancing productivity growth. That is why we have decided to invest in creating, disseminating and commercializing knowledge. We are building on the 1999 Canadian opportunities strategy with an additional $1.8 billion for various programs.
As members will know, my riding contains part of the city of Nepean and borders the city of Kanata. Both these west end municipalities in the Ottawa-Carleton region are the home of what has been referred to as Silicon Valley north. In fact, they are probably the most vibrant concentration of high tech companies anywhere in Canada. To say that they are enjoying explosive growth is almost an understatement.
Over the past couple of years and with the help of farsighted policies like the SR and ED tax credit and the Technology Partnerships Canada program, our high technology industry has blossomed. The TPC program alone is a $250 million per year program aimed at keeping Canada at the forefront of technological innovation.
Historically there have been more applications, unfortunately, than there have been resources available. Budget '99 adds another $50 million per year for this initiative and that is good news. It is also the catalyst to give businesses a competitive edge in terms of getting their products to market faster.
Programs like the two I have just mentioned are making Canadian high tech companies world beaters. That is why when we travel abroad we hear more and more of companies like Nortel, Newbridge and JDS Fitel. These companies are showing our flag and making sales in places as diverse as Munich, Sao Paulo, Taipei, San Francisco and Johannesburg.
The allocation of $550 million as well in another area, medical research, is extremely important, as is the creation of the Canadian institutes for health research. It marks a new and important federal commitment to medical research for scientists and researchers across Canada.
In the past our researchers have spent much of their time chasing grants and wondering where their next research dollar is coming from. This new initiative will enable these scientists and researchers to spend more time in the labs doing research extending the frontiers of human knowledge and increasing business opportunities related to scientific discovery.
Once again this budget is good for Canada. It is also providing more fuel for the growth of our local economy here in Ottawa-Carleton. This is what the regional chair of Ottawa-Carleton had to say about budget '99: “It will help create jobs and new spinoff companies that will continue to make this region the success story that it already is”.
Locally this funding will help benefit some major players in the medical research industry, including the Ottawa General Hospital Research Institute, the Ottawa Regional Cancer Centre, the Heart Institute, the Loeb Institute and the faculty of medicine at the University of Ottawa.
I should also mention a few comments about what budget '99 does in terms of the national defence budget. As vice-chair of the SCONDVA committee I am very pleased that the government has provided additional dollars to help implement some of the 89 recommendations contained in our report.
We are now past the era when governments promise more than they can deliver and, as the Minister of Finance has said, delivered more than they could afford. This is responsible budget making, future oriented budget making and affordable budget making.
From improved health care to tax relief, investing in technology to improving the quality of life for our Canadian forces personnel, this budget has all the right ingredients for a recipe to build a better Canada. This is the type of leadership that the Liberal Party of Canada was known for throughout the 20th century and the type of leadership that we will continue to provide into the 21st. This is the leadership that has made Canada a leader among nations.