Madam Speaker, I am pleased to participate in the debate today on the budget implementation act 2003. This bill, once enacted, will implement the measures of the budget that was delivered by the finance minister in this chamber on February 18. That budget built on the very fine work of the former finance minister, the member for LaSalle—Émard, as he built the economy into a sound footing. We got our government books back in order and eliminated the deficit. This budget builds on those successes and the contribution of all Canadians in dealing with a very serious fiscal situation which we encountered when our government came into office in 1993.
For example, by paying down roughly $46 billion or $47 billion on the debt, our debt to GDP ratio has fallen to 46.5% from a high of roughly 71% not too long ago. This will go to 40% within the next two to three years. That is saving Canadians $3 billion a year in terms of interest costs. The $3 billion is an annual annuity and those moneys can be reinvested in other priorities.
This budget does just that, $3 billion for example in sustainable development initiatives and in the environment. It also builds on the $100 billion tax cut that was brought in the budget 2000 and the mini budget of the same year. It also introduces some new tax measures which I will touch on later.
Economic growth in Canada is the best in the G-7 and is predicted to be the best in the G-7 again next year. Of course, it depends to some extent on the economy in the United States and the war in Iraq. We wish our American friends the very best of luck and the very best in terms of results in the war on Iraq. That will have economic consequences as well but so far the Canadian economy is predicted to grow at a very fine rate again this coming year.
I should have said at the outset, Madam Speaker, I am splitting my time with the member for Ottawa Centre.
We have made major investments in health care, $34.8 billion over five years. Our economy has created 564,000 jobs in the last year, the best again in the G-7. Unemployment, although we never like any unemployment, is at 7.4%. Although there are inflationary pressures, and inflation has risen somewhat, we still have a relatively low inflation rate. We also have good monetary policy that will manage that situation going forward.
One thing that the proposed budget implementation act will implement is the new Canada health transfer and Canada social transfer which will replace the existing CHST. The existing CHST was introduced by our government and it replaced established programs financing and the old CAP program. Now we are making another change. This is to ensure that the health funds are segregated, that there is a greater accountability in what the provinces do with the moneys that are transferred to them for health care.
As part of this transfer this new money for the provinces, the $34.8 billion over five years, there will be a greater accountability to Canadians on what the provinces do with that money. Frankly, I think we are moving to the day perhaps, and there have been pressures already from the post-secondary education stakeholders, to have segregated funds of that new transfer for post-secondary education. We have seen a deterioration there as well in terms of rising tuition fees and students with increasing debt. The provision that starts the process where the funds are segregated in the first cut. The health care funds will be separate and then the social funds will include post-secondary education and other social transfers.
We cannot forget also the tax points and the direct delivery that the government provides through Health Canada and other agencies and foundations.
The value of this most recent initiative is that the Government of Canada has said it wants to target certain health care initiatives like home care and prescription drugs. These are two areas that are growing considerably and need to be managed better. Home care can be a very effective, lower cost alternative to institutional care. To this point in time, the provinces have been slow to put the community care into the system. This targets those funds and says that we want to have more home care. It is a lower cost alternative and actually has a better patient care result as well.
We have also indicated that we are going to be putting more funding into equipment. This budget would implement $1.5 billion that would go into a trust to be used for acquiring diagnostic and medical equipment. I am assured by the government that this time around this fund will have a greater sense of accountability. We heard stories about lawn mowers being acquired under the previous $1 billion fund. In any large organization or fund there will be the odd story and the odd case of mismanagement. I am assured that this time around there is a much stronger regime to ensure that those accountabilities and funds are targeted and will go to the right places. I am very encouraged by that.
This proposed budget implementation act also implements important changes to the Canada Student Financial Assistance Act. One particular aspect is very relevant in my riding, where I have a large number of convention refugees, many from Somalia. A lot of the young people are now at an age when they need to go to college or university. They were unable to access the Canada student loan program. This budget and this act would change that so those who had the convention refugee designation would be eligible to apply for Canada student loans. This is a major step because many of the refugees in my riding and their children were unable to receive a decent education, and this deals directly with that. I am very happy that is part of the budget implementation.
The budget implementation act also would implement a number of very important changes in the Employment Insurance Act. One particular aspect is the introduction of compassionate care benefits. These new provisions pay up to six weeks of special benefits to claimants who provide care or support to a gravely ill family member. Many of us in the chamber and many people across Canada have faced the situation of someone being gravely ill, either dying or in a very precarious position, who seek the support of their family members. Many family members work and this provides an opportunity for family members to support the ailing member of the family. That is a very positive thing.
The budget also sets the premium rate for the year 2004 at $1.98. Since the government launched this program, every year for the last seven or eight years it has reduced the employment insurance rate. That has saved employers and employees about $9 billion since we started this program. The Minister of Finance has also indicated his intent to come up with a new rate setting process, one that is more transparent and reflects the true cost of insurance. That has to be looked at over a business cycle because we do not want to be in a situation where we have to go back and increase the rate if the economy moves into a slower pace of growth.
That is a very important announcement and one that I think helps to clarify for many Canadians the fact that there is no employment insurance fund. I believe it was in 1984 or thereabouts when there was an employment insurance fund and it was in a deficit. At that time, under the previous administration, the government was in deficit. The auditor general said that the unemployment insurance fund, as it then was called, needed to be consolidated with the consolidated deficit of the government to paint a truer picture. Therefore the fund at the time was consolidated in with the consolidated accounts of the government.
That fund does not exist any more. In fact seven out of the last ten years or thereabouts that the employment insurance notional fund has actually been in deficit. The Canadian taxpayers have subsidized or supported that deficit in the notional employment insurance fund. It is true that over the last few years the surplus has grown quite considerably.
However I notice there is some business in the Senate and presumably I will be able to finish my remarks when we get back.