Mr. Speaker, I always enjoy the member's commentary. It is very important for members to put an opinion on the floor that allows others to differentiate themselves. The member has ably labelled the Conservative Party as, let us have tax cuts for our friends and let us anticipate revenue and if tax cuts are given then good things will happen in the economy.
It is a good wish but Brian Mulroney, the Conservative prime minister, found out what happens when a government makes tax cuts but does not take care of other things like paying down debt. As an example, he introduced a $100,000 capital gains tax exemption that was not even grandfathered. It was not even for prospective gains. This was $100,000 freebie to people who had holding gains of $100,000. Then of course it disappeared.
During the Mulroney years, the last Conservative years of government, no debt was paid down and in fact the record is clear that the national debt went up. The difference between the Conservative Party and the Liberal Party is that in good times we must pay down some debt, as well as give some tax cuts, as well as deal with programs and the needs of people.
Yesterday the Governor of the Bank of Canada was asked a question about how we should deal with the looming demographic of Canada which will hit the fan, as it were, down the road. He said that we should deal with that by paying down debt at a reasonable basis and that a target of 25% debt to GDP ratio should be able to generate the savings on interest expense, which is the single largest expenditure of the Government of Canada. Therefore, when the baby boomers reach retirement age the savings would deal with that bubble that the member talked about. That is a responsible strategy.
The difference here is do not anticipate revenues but to deal with not only tax cuts but also good, solid, responsible social programs and debt repayment. It is a balanced plan.