Mr. Speaker, I would like to thank the Minister of Finance for ceding me some of his time. I would like to acknowledge the great regard that we in Nova Scotia have for the work that he has done on this file, as well as the work that has been done by our minister in Nova Scotia, the hon. member for Halifax West. I would also commend the premier and energy minister of Nova Scotia who have sincerely tried to come to a sensible conclusion to this issue.
I would also like to acknowledge some of the great debate that has happened already today and would particularly reference the hon. member for Random—Burin—St. George's who has a very explicit and simple way of laying this out, in a way that everyone can understand because this is not generally an easy topic.
I appreciate the opportunity to speak today because it raises some key issues regarding the role of the federal government in supporting ongoing improvements in the quality of life for all Canadians no matter where they live in this country, and in my case particularly, in my province of Nova Scotia.
I would like to begin my remarks by asking members of the House to cast their minds back in time, just a decade ago, because we cannot look at the future and we cannot look at this accord in context without looking at the past. In 1993-94 Canada found itself in a very precarious situation. We found ourselves mired in debt and deficit, facing an annual shortfall of some $42 billion a year and a debt level that was growing out of control.
Likewise in Nova Scotia, an overwhelming debt and crushing annual deficits from a previous administration burdened our people, burdened our province, and burdened a newly elected provincial government. At the same time Canada's unemployment rate topped 11%. Both inflation and interest rates were high. Millions of Canadians believed they would never own their own homes or start a business. That was particularly true in Nova Scotia.
The situation was so bad that the Wall Street Journal referred to Canada as an honorary member of the third world. But what a difference 10 years can make. As we stand here today in the House, Canada has an economic and fiscal record unparalleled in the G-8. We have recorded seven consecutive budget surpluses, something that has never been done in the history of our country.
With the deficit eliminated, the government has been able to use its surplus moneys to reduce the national debt by billions of dollars. As well, the federal debt to GDP ratio stands at 41.1%, down from 68.4% in 1995-96, the lowest level in over 20 years. We are well on our way to meeting our target of reducing the debt to GDP ratio of 25%.
More than 156,000 new jobs have been created in the first nine months of 2004. Our unemployment rate now stands at 7.1%. In fact, we have had the best job creation record over the past year in the G-7. At the same time inflation remains well within the Bank of Canada's target range of 1% to 3% and interest rates are well below the levels they were a decade ago.
Perhaps the most telling evidence can be found when we look at the growth in Canada's standard of living. Since moving into surplus in 1997, our country has topped the G-7 list for growth and living standards. In fact, the statistics show the average standard of living for Canadians has increased at a faster rate in the past 7 years than it did over the previous 17.
As I said earlier, what a difference a decade can make. That difference makes these agreements possible that we talk about today. The question that needs to be asked at this stage is, how did we achieve that remarkable fiscal and economic turnaround in just a few short years? The answer is twofold: first, we must acknowledge the sacrifice and hard work of Canadians from coast to coast to coast who understood the need for our country to get its house in order. In some cases that meant short term pain. But I believe it has been alleviated by a long term gain in the form of a more stable and a more prosperous nation.
Second, our government's commitment to fiscal discipline and targeted spending in key areas made a significant contribution to ending the constant spirals of debt and deficits. Over this time period we have had to make some difficult decisions, many of which have aroused feelings of anger in some regions of Canada. Nevertheless, the wisdom of this course of action has been illustrated time and again in recent years.
Without a commitment to fiscal discipline, our government would not have been able to afford the largest tax cut in Canadian history in 2000. Our five year tax reduction package is worth over $100 billion, significantly lower in personal and corporate income taxes in a wide range of areas giving us a tax advantage over many of our international competitors, including the United States. That has been the critical point for encouraging new and expanding businesses to locate in Canada.
Tax reductions introduced since 2000 have removed one million low income Canadians from the tax rolls. Without our commitment to this discipline, our government would not have had the means to implement a host of programs aimed at bettering the lives of Canadians no matter where they lived.
We have raised benefits for low income children, provided support for caregivers of the elderly or the terminally ill, helped construct new housing for low income Canadians, and boosted funding for post-secondary education. It has been said before, but I believe it bears repeating, these are truly the fiscal dividends of our commitment to live within our financial means. These dividends benefit the people of Nova Scotia as they benefit all citizens of Canada. Nowhere is this more evident than in health care, identified as the number one priority of Canadians.
In September the Prime Minister and his provincial and territorial counterparts signed a deal that would provide an additional $41 billion in health care funding, in addition to the funding the government already invests each year for the health care of Canadians. We have created a solid blueprint for further progress and sustained funding to help reduce waiting times and to invest in new health care technologies. I hope and expect that we get serious about a national wellness plan to keep us healthy.
This new agreement will provide immediate and concrete benefits for the two provinces mentioned in the motion. Nova Scotia's share of federal health care funding will increase by $62 million in the current fiscal year and $91 million in 2005-06. That is not simply an abstract concept. It represents real increases in real dollars that could be used to address the health care priorities of Newfoundland and Labrador and Nova Scotia.
The new equalization framework agreed to by federal, provincial and territorial governments last week was also good news for both provinces. Specifically, Newfoundland and Labrador will see its equalization entitlement rise by $87 million this year and $187 million in 2005-06. The new equalization framework for Nova Scotia will see an increase of $151 million in 2004-05 and $182 million in the next fiscal year. These are impressive numbers.
I want to make one thing very clear. Our government wants to do everything within its power to provide both Newfoundland and Labrador and Nova Scotia with the moneys to which they are entitled to provide efficient services to its people. I want to make it clear that in the opinion of members on our side of the House that is exactly what the government's offer to Newfoundland and Labrador and Nova Scotia regarding offshore oil and gas is intended to do.
Offshore resource revenues are today owned and collected 100% by the governments of Newfoundland and Labrador and Nova Scotia with equalization payments coming on top of those. Let us not forget that the Government of Canada adds at least a further 30% bonus to offset equalization reductions due to offshore revenues. We are proposing to add a further 70% for a grand total of 100% in offsetting funds on top of the current 100% in provincial resource revenue. This scenario will remain in place for each of the next eight years unless a province's combined revenues from these four sources match the level of revenues of Ontario on a per capita basis.
This does not mean it will end in eight years. It can be discussed. It can be reviewed. It can be renewed. That is a fair deal. It is good for Newfoundland and Labrador and it is good for Nova Scotia. It is also good for the people of Canada. This agreement is fair and reasonable. I believe it shows that Canada does in fact work.
As a Nova Scotian I am proud that our national government understands our unique position. I am pleased that Premier Hamm and Minister Clarke are engaged in discussions that I believe will lead to an agreement. This process is working and Nova Scotians will benefit. Nova Scotia can move from a have not province to a have province, and that is the goal of all of us.
For these reasons and for those advanced by my other colleagues on this side of the House, I will not be supporting the motion.