Mr. Speaker, I welcome the opportunity to contribute to today's debate. In considering the question of a supposed fiscal imbalance, let me begin by suggesting that we should all take a break from rhetoric and reflect on economic reality and national responsibility.
As was highlighted in the recent Speech from the Throne and the Prime Minister's reply, Canada has acquired an outstanding record of economic achievement. In fact, our federation and its federal government are doing many things right.
Over the past 10 years we generated over three million new jobs. Since 1997 we have led all G-7 countries in the growth of living standards. Low interest rates have made home ownership easier than it has been in decades.
This has not happened by accident. It reflects the virtuous circle we have worked hard to achieve, where fiscal discipline and balanced budgets have led to increased confidence, lower interest rates and falling debt. Our better financial results have permitted the government to reduce and improve the fairness of taxes, and make new social and economic investments.
That is the central point we must recognize in today's debate. Our government has indeed made vital tax cuts, and social and economic investments. This spending underscores the obligations and opportunities that the House and Canada's federal government must continue to embrace for the continuing benefit and future prosperity of all Canadians.
It is simply not true, as the advocates of imbalance try to argue, that the needs are with the provinces and the resources with Ottawa. The clearest thing is that we face national needs. Canadians want a federal government that plays an active, accountable role in addressing those needs.
Let me remind my hon. friends of the action agenda and spending pressures that must be considered in any analysis of available federal revenues and the balance between federal and provincial resources.
To start, we must not take for granted our current economic success. In the face of advancing technology and accelerating global competition, Canada must now invest in elevating our performance to the next level.
That is why the throne speech highlighted a five point strategy to build an even more competitive, sustainable and prosperous economy.
First, we must invest in people, our greatest source of creativity and economic strength. This means investing in workers, helping them continuously enhance their skills to keep pace with constantly evolving workplace requirements.
Second, we must strengthen Canada's ability to generate and apply new ideas. We must continue our support for academic and industrial research and scholarships. We must never forget that education and R and D are just starting points for economic success.
The equal challenge is to turn more Canadian bright ideas into dynamic businesses, great jobs and growing export earnings. That is why our government wants to ensure a supply of venture capital particularly for early stage businesses in key enabling technologies such as biotechnology, information and communications, and advanced materials which will be drivers of innovation and productivity in the 21st century economy.
Third, we must invest in providing smart government to make it easier for businesses to do business in Canada. This includes a transparent and predictable regulatory system that accomplishes public policy objectives efficiently while eliminating unintended impacts.
Fourth, the government's overall economic strategy maintains a commitment to regional and sectoral development. The simple fact is, Canada's regional economies are a vital source of economic strength and stability. Support for regional and rural economic development will target the fundamentals, such as skills upgrading, support for research and development, community development and modern infrastructure such as broadband communications, by employing regional agencies and tools, such as the Atlantic innovation fund.
The government's regional objectives are being complemented right now by the most fundamental reform of the equalization program in its 47 year history. This new framework will see provincial and territorial transfers increased by some $33 billion over 10 years and provide them with the greater stability and predictability in payments they have sought so they can better plan and manage their own budgets.
Fifth and finally, our economic strategy must include the promotion of trade and investment. Canada has always been a trading nation, but never more so than today. It is therefore vital that we secure and enhance our access to markets both in North America and around the world.
To this end, the government will build on the successful smart borders initiative and also on measures designed to develop a more sophisticated and informed relationship involving business and government officials in the United States.
This is an active agenda and it is an essential one that must be backed by the funds needed, because only a growing economy can deliver the government revenues needed to meet the significant social challenges we face today and in the years ahead without forcing us back into destructive deficit spending.
This requires that all parties recognize that each level of government has fiscal pressures to deal with. Only by acknowledging this and working together constructively will all levels of government be able to best serve Canadians.