Mr. Speaker, before I start, I would like to join my colleagues in congratulating you on your appointment as Deputy Speaker. I look forward to working with you.
It is an honour for me to rise this afternoon in reply to the Speech from the Throne. Earlier last year, following World Trade Organization negotiations in Seattle which I attended as a member of the Canadian delegation, I hosted a public meeting in my riding to discuss among other things world trade and globalization.
Like many Canadians, constituents of mine who attended this meeting did not know a great deal about the WTO or NAFTA. What they did know was that Canada has prospered from its involvement in international trade. Globalization and Canada's involvement in the global economy were not viewed as inherently threatening but simply a natural progression brought about by freer markets and advancements in communications.
Certainly there were questions about what globalization meant for Canada's sovereignty or our ability to make policy decisions in the public interest.
A common theme of this meeting was that globalization should bring prosperity to all countries and people of the world. We know globalization has led many developing countries to increased prosperity and wealth. However, for many others globalization poses a challenge. The question for Canadians is how best all countries can grasp opportunities offered by globalization.
I strongly believe that freer trade and expanding local economies are the best engines for development and prosperity. The best hope for developing countries has always been to find ways of tapping into the vast resources of private capital. We must stop thinking of government as the permanent engine driving overseas assistance and instead view the government as a facilitating partner. Canadians should be encouraged to contribute directly to NGOs involved in foreign assistance. Governments can then match contributions given by the private sector.
An excellent working example of this system in practice is the Canadian Food Grains Bank. The Canadian Food Grains Bank accepts donations of grains to send overseas for people in need. The Canadian International Development Agency, CIDA, matches the donations received by the CFGB on a four to one basis. The government money is used to either purchase additional grains in Canada or to purchase grains closer to the area in need. Through the Canadian Food Grains Bank and its partners, 98% of the food donated to the organization makes it to the people who desperately need it. That is a true Canadian success story.
Naturally, Canada must also continue to provide assistance for emergency relief efforts. The minister responsible for CIDA was quick to respond to devastating earthquakes in El Salvador and India with $1 million and $5 million respectively. I applaud the government for its prompt response to this crisis.
Although the November 27 federal election was dominated by domestic issues like taxes and health care, Canadians have come to expect that their country provides assistance to countries and people less fortunate. Having said that, Canadians expect a certain level of performance, results and accountability for tax dollars budgeted for foreign aid.
The auditor general in his 1993, 1996, 1998 and 2000 reports was critical of CIDA's mismanagement and institutional culture characterized by confusion and lack of focus. It seems that over the years change has not come easily to CIDA The Canadian Alliance believes that CIDA is simply not capable as presently structured of fulfilling its mandate effectively or efficiently.
I mentioned earlier in my speech it is freer trade and expanding local economies that are the best engines for development and prosperity. Globalization continues to be the engine bringing countries together. Globalization has helped to promote sustainable development and prosperity around the world. Globalization represents opportunities and challenges for all countries in the world, including Canada.
Canada entered the new century with some significant economic strengths. However, it also has some troubling weakness. The country's strength includes a labour force that is among the most highly educated in the world and a well developed infrastructure that includes advanced information and communications technology, both necessary requirements in a knowledge based economy. However, we have some glaring weaknesses including the relatively low rates of research and development, a capital investment rate that is far below the level of the United States, a high personal and corporate taxation and our relative slowness, again compared to the United States, in adapting advanced technologies and in seizing the new economic opportunities.
The federal government announced a program in the throne speech to double the investment in research and development by 2010. This is a step in the right direction. However, the government missed a critical opportunity in the throne speech to introduce real tax relief and encourage our best and brightest to remain in Canada. Again the government has ignored the reality of the brain drain. It is a fact that every year more and more of our best and brightest are attracted to the high earnings, lower taxes and better job opportunities offered in the United States.
As we look to the future, the United States is poised to introduce substantial tax reductions and to pay down the debt within the next 10 years. Our finance minister has introduced tax cuts which are marginal at best and has an unambitious target of paying down Canada's debt. Canada cannot hope to remain competitive with the United States if our fiscal structure is so terribly out of line with the others. The government needs to make fiscal competitiveness with the United States a current priority. This means real tax relief and a dedicated paydown schedule. None of these important steps were mentioned in the Liberal throne speech.
Critics of globalization fear that economic integration is leading to a loss of Canadian sovereignty. As policymakers we must adhere to our obligations under NAFTA and WTO which attempt to prevent policy actions that might create an unlevel playing field. Similarly, Canada's policymakers must give careful attention to how their actions will impact the country's ability to attract investment and highly skilled workers. There are concerns about foreign ownership.
Our undervalued Canadian dollar has given Canadian exporters an advantage in exporting their products and services to the United States. However, it has made Canadian companies a bargain for American investors. Former Alberta Premier Peter Lougheed has expressed concern about Canada's sovereignty since the signing of NAFTA.
In conclusion, I would say that globalization is extremely important. With the summit of free trade of the Americas coming pretty soon, even the president of the United States is very keen to promote free trade, the issues and challenges of globalization must advance.
The Leader of the Official Opposition has asked me to chair an advisory committee to address globalization and Canada's competitiveness. I will talk with NGOs and Canada's business leaders to develop a sound plan for Canada to deal with some of the questions surrounding globalization. I look forward to hearing from anyone who has something to add.