Mr. Speaker, I am always pleased to have any opportunity to discuss tax relief. It is a subject that is very important to me and tax relief for all Canadians is a cause that I care passionately about.
The proposed legislation must not be considered in isolation since it will no doubt set a precedent for other groups that follow. When we discuss tax relief, we must ensure that it is tax relief that is practical and that will benefit all Canadians, particularly low and middle income Canadians and those raising families. To suggest anything else would be less effective and lack any sense of priority.
Even if we now have balanced budgets or surpluses and a strong economy, our financial resources are not unlimited. This government is committed to ensuring a rational and conscientious use of these resources, in the interests of the greatest number of Canadians possible.
That is why in last fall's fiscal and economic update the Minister of Finance set out clear and concrete principles that set the priorities for federal tax relief.
First, tax reductions must be fair and give priority to those who need them most, middle and low income Canadians, especially families with children.
Second, broad based tax relief should focus first on personal income taxes.
Third, the business tax system must be internationally competitive.
Finally, broad based relief should not be funded with borrowed money.
In other words, the type and size of any tax action we take must be managed so as to never endanger our continuing commitments to balanced budgets. These are the principles that have governed our actions.