Mr. Speaker, I will be splitting my time.
I am pleased to rise today to address what is the first minority budget of a government in 25 years. The budget tabled in the House by the Minister of Finance, the member for Wascana, is not only historic but unfolds a bold vision for Canada in the 21st century.
In 1995 our Prime Minister in his capacity as finance minister delivered a transformative budget, which set the course for a record eight balanced budgets and an economy which is the envy of the G-7. On this sound fiscal foundation, our government has delivered yet another transformative budget.
As a newly elected member of Parliament, this is the first budget process I have witnessed and it is impressive to see the balance the finance minister has struck between tax cuts for hard-working Canadians, the creation of opportunities for small and medium sized businesses and investments in visionary social programs.
Allow me to address several budgetary items that I am certain will be of specific interest and relevance to my constituents in Etobicoke Centre.
All Canadians will benefit from tax reductions contained in budget 2005. The most significant measure is the increase in the basic personal tax exemption rate to $10,000, which is expected to remove 860,000 Canadians from the tax rolls, 240,000 of whom will be seniors. As I knocked on doors during the last election, too often I felt an unease when greeted at a door by a senior who, although smiling, was obviously having difficulty making ends meet.
I am especially encouraged by this budget because apart from removing almost one-quarter of a million seniors from the tax rolls, this budget also improves support for our seniors with an increase to the guaranteed income supplement, which will result in an additional $400 per year for a single senior and $700 per year for a couple by January 2007. Funding for the New Horizons for Seniors program is also being increased from $10 million to $25 million to promote voluntary sector activities by and for seniors.
As an entrepreneur in my pre-parliamentary life, I spent over two decades building family businesses. With several businesses in Etobicoke and a wide circle of friends and acquaintances in small and medium sized businesses, I was encouraged by the numerous measures the budget contained for small business, the backbone of the Canadian economy and the sector in which a disproportionate amount of innovation takes place.
Although all business will benefit from the elimination of the corporate surtax, small corporations will gain more proportionately. This measure will help to maintain our tax rate advantage relative to the United States. Small and medium sized businesses with incomes greater than the $300,000 small business deduction limit will also benefit from a 2% reduction in the general corporate income tax rate, from 21% to 19%.
Many entrepreneurs can go through difficult business cycles. The small business owners in my riding of Etobicoke Centre will find comfort in the increase in the RRSP annual contribution limit to $22,000 by 2010.
As well, the increase from 30% to 50% in the rate at which the capital cost allowance can be claimed for environmental technologies acquired within the next seven years will encourage switching to environmentally friendly processes and provide an incentive to small entrepreneurs for developing Kyoto-friendly technologies and equipment.
Overall, the measures I have just outlined will help our nation's small and medium sized business sector to remain productive and competitive at home and abroad.
However, this budget also heralds a new era for our social programs. Having laid the financial and economic foundations through our previous balanced budgets, we can afford to dream a new vision for ourselves and Canada in the 21st century.
With the announcement of $5 billion over five years for an early learning and child care initiative, the government is helping to advance the creation of a national child care program based on four key principles, qualitative, universal, accessible and developmental, while delivering on a commitment we made to the Canadian people last June. It was a promise made and a promise kept.
Budget 2005 provides an additional $805 million over five years in direct federal health investments. This money has been specifically earmarked for wait time initiatives, efforts to accelerate and expand the integration of foreign trained doctors, the creation of a strategy on healthy living and chronic disease, pandemic influenza preparedness and safety measures for drugs and therapeutic products.
We commissioned the Romanow report with a promise to fix our health care system. We took to heart the Romanow recommendations and exceeded them: a promise made, a promise kept.
As well, this budget focuses, not only on our health care needs and the needs of our youngest and oldest citizens, but on the communities in which we live. The Liberal government committed to provide our cities and communities with reliable and long term sources of funding. With a transfer of almost $1 billion in gas tax revenues to the greater Toronto area over the next five years and a total of $300 million for green municipal funds, my community can expect to see better roads, improvements to our public transit system and more liveable neighbourhoods.
We have also stated that this new funding will continue beyond our five year commitment so that our cities can count on revenue streams to finance major public infrastructure projects.