Mr. Speaker, the budget of this year is a landmark budget. I think what some Canadians do not understand is the balance between fiscal responsibility and social programs. There are some who would suggest that we should spend, spend, spend.
On a certain level, that is perhaps attractive. We have many needs in our country such as homelessness, poverty, people who would like to find jobs, individuals with drug problems and children in poverty. There are a whole host of social issues with which we have to be grapple, as in any country. Some people would suggest that we should pour money into many different areas and spend without taking into consideration the bottom line.
Why is the bottom line important? Why does the Canadian government not print money? Why does the Canadian government not simply pour money into all these programs without due responsibility to the bottom line?
When our government came into power in 1993, we had a mess on our hands. We had massive deficits and huge debts that were left by a Progressive Conservative government. Those deficits were added on to a debt. What does that do to the social programs? What does that do to the most vulnerable in our society? What does that do to the major income generators in Canada, which is the private sector? It crushes all of those.
To be fiscally irresponsible is to be socially irresponsible. To spend more than we take in and to engage in deficit spending hurts the most vulnerable in our society, damages the private sector, eviscerates our competitiveness and it destroys the pool of funds that we receive from our private sector, our tax base. By deficit spending and increasing our debt, we increase the amount of money we must pay in interest. That takes money from the sharp edge of what we need for our social programs and puts it into debt repayment, on the interest on the debt. That is irresponsible.
When our government came into power, we had to make some very difficult choices. We had to engage in a process of belt tightening to ensure we could get into a surplus situation. The Liberal government has over the last eight years produced those surpluses.
If we look at this internationally, it is very intriguing. The last few Economist magazines have shown that Canada is leading in the G-8 countries in terms of our economy, and that is exceedingly important. By having a strong economy, we can provide the tax base and engage in what are called the ying and the yang of what this job is all about: having strong fiscal management and a strong tax base which provides us with the moneys to provide the social programs that our neediest require. That is the responsible thing to do.
To do the alternative, which is to overspend, as some people would wish, or to go ahead and spend moneys that we do not have would only hurt the most vulnerable and damage our ability to pay for needed services.
I was formerly a part of the Conservative government. One of the reasons I left was the income and the economic plans for that party were absolutely irresponsible. Quite frankly, it shocked me.
A parallel to this is what is happening south of the border. The Republican party, a party that one would think would be right of centre and would have good fiscal management, is doing the exact opposite. It has engaged in a $470 billion deficit spending this year. That will crush the economic backbone of the United States. It is an irresponsible thing to do.
Mr. Greenspan, head of the Federal Reserve Bank in the United States, came out in the last 48 hours and made a very strong statement to the U.S. government, saying, “You must get your spending under control”.
That is what I found in the Conservative Party's missive before the last election. The economic budgetary plans for a Conservative government would have put us into a deficit situation. That is a line that we absolutely cannot cross.
It is simple to be in opposition and promise the earth, as the Conservatives did in its defence plans. One reason I left them was that their defence plans were so large and expensive. In combination with the massive tax cuts in the spending priorities, that they would have put the country into a profound deficit situation. This would have eroded and removed the ability of a government to pay for needed programs, including defence. That is something a government in the 21st century simply cannot allow.
We need a government that spends within its means so it can do what it has to do. Indeed, we have made promises and we have fulfilled them.
Just this week we introduced a comprehensive veterans' benefit package, the best package in decades. We are helping those veterans and their families who have given so much for our country, a wonderful country in which to live. These Canadians have given their lives to preserve our peace and security.
We owe them for their service and our government delivered on that promise this week. Much of the information in the package came from veterans, many of whom live in my area of Victoria, British Columbia and my riding of Esquimalt—Juan de Fuca. I am profoundly grateful for the input of those veterans.
As well, we have delivered on a balanced budget for the eighth year in a row. We also will introduce new legislation for homelessness. This will happen in the next few weeks.
We have put into place the largest investment in defence in the last 20 years to ensure our men and women in uniform, who do a yeoman's job, will have the personnel, the equipment, the training and be taken care of when they do their job for our nation.
We have done a lot more. We have reduced taxes for some of the poorest people to address poverty. The Minister of Social Development and others are working on plans with respect to child care and early learning. To ensure our children have the best chances for the future, we must reduce the number of social problems such as fetal alcohol syndrome and youth crime. We must ensure that children stay in school longer and that they have a healthy start, or head start. They need to live in a loving and caring environment that is secure, with discipline parameters and good nutrition. They need to be engaged by their parents or parents.
We are working on this with the provinces, and we are committed to doing that. By engaging in that healthy start, that head start program, we will ensure that a whole host of social issues and challenges will be reduced.
I have seen that clinically on the ground as a physician. We can look at the work that has been done in the last 20 years, from programs in Ypsilanti, Michigan to the work done by former labour minister of New Brunswick and her husband Doug. This will ensure that kids will become well-adjusted, functional adults and that social problems will be reduced substantially.
Also, my province of B.C., of which I am very proud, is the first province to sign on with respect to the gas tax rebate. Those moneys will go directly to the municipalities for critical infrastructure. This is extremely important because the needs on the ground are extensive. Municipalities know the needs in their areas. The moneys will be directed to these critical infrastructure needs, in cooperation with the province and the municipalities. I want to thank the minister involved for that.
I am very proud of the budget put forward by our government. For the eighth year in a row we have surplus budget, which is the perfect compromise and match of good fiscal responsibility and social responsibility. I think all Canadians will see that in the future and they will see it in the next election.