Madam Speaker, budget 2005 is not just about numbers. It is about people. That is why I was very pleased to see in budget 2005 measures to assist seniors, children and persons living with disabilities.
I would like to take a moment to outline some of the measures focused on our senior population, something on which I, together with the Liberal women's caucus, have worked very hard for two or three years to bring about change in some measure. By the way, the Liberal Party is the only party that has addressed directly seniors issues in the last few years. This budget begins to address them very directly and I am sure that in future programs we will do even better. My colleagues and I began serious work on seniors issues a couple of years ago. Hard work has paid off. We are now seeing through budget 2005 significant investments across a wide range of policies that matter to seniors.
Budget 2005 investments include increases in the guaranteed income supplement, or the GIS as it is known by most people. The budget proposes to increase maximum yearly GIS benefits by over $400 for single seniors and almost $700 for couples. Half of this increase will take effect January 1, 2006 and the remaining installment will take effect on January 1, 2007. A total of 1.6 million GIS recipients will benefit from this increase, including more than 50,000 seniors who will become eligible for benefits as a result of the change.
It is important to mention that the increase in the GIS will be of particular benefit to senior women, who account for more than one million of the seniors receiving GIS benefits. This assistance means being able to buy food and medicine as well as pay rent in many places like the city of Toronto.
Budget 2005 also proposes to expand funding for the new horizons for seniors program to promote voluntary sector activities by and in support of seniors. Funding for the program will increase by an additional $5 million in 2005-06, $10 million in 2006-07, and $15 million in 2007-08.
Budget 2005 also proposes to set aside a further $13 million over the next five years for a national seniors secretariat to be established within Social Development Canada. The organization will serve as a focal point for collaborative efforts to address the new challenges for seniors. This will allow the Government of Canada to tackle issues such as seniors housing in my riding. The Government of Canada has invested $1.25 million toward the construction of a new 25 unit apartment building for seniors, as I said before.
Budget 2005 will further support seniors by increasing the amount of income that Canadians may earn without paying federal income tax, which will remove about 240,000 seniors from the tax rolls.
Budget 2005 also proposes to double the amount that caregivers may claim for medical expenses from $5,000 to $10,000. As we all know, this is a very important part of reform that is required. Home care is one of the areas that we must work on and must deliver.
In addition to these things, we must continue to work to reform the pension system and also to provide proper home care across this country. One such thing is to look at RRSPs. Today RRSPs only benefit certain people who can put away a great deal of money throughout their working lives. They do not help the average Canadian, as most people know.
We must look at renewing and reforming our pension system as well as affordable housing, home care and many other things to make sure that seniors can live independently, with dignity and with respect in our society and continue to contribute to our society.
After fighting for Canadian children for the past 10 years, I was extremely pleased to see the Liberal government propose a budget bill that includes funding to establish the foundations for a national early learning and child care program. Investments in early childhood development pay off far more than any other educational investment at any other time in a person's life.
My constituents of Beaches--East York made it very clear to me that they wanted this agreement. There are parents who have told me that they cannot work because they do not have child care. This investment is good for Canada's children. It is not only a social investment but it is also an economic investment. It is an investment in the future of our children, which means that it is an investment in our health care system, as well as crime prevention and a great many more things that we could talk about. At the end of the day, it is an investment in the future of our country.
Some of the most vulnerable people of our society are not discussed very often. I want to touch on this area for a moment.
I am proud of the steps we are taking in the budget to develop a fairer tax system for our fellow Canadians living with disabilities. In recent years the government has taken significant steps to enhance tax fairness. Budget 2005 builds on those actions by improving the tax recognition of the costs associated with a disability, caregiving and adoption.
In budget 2003 the government established the Technical Advisory Committee on Tax Measures for Persons with Disabilities to advise the Minister of Finance and the Minister of National Revenue on how to address tax issues affecting persons with disabilities. The committee's final report contained 25 recommendations. The government is acting on the committee's recommendations.
New measures in this area include the extension of eligibility for the disability tax credit to individuals who face multiple restrictions which together have a substantial impact on their everyday lives. It also means a credit to ensure that more individuals requiring extensive life-sustaining therapy on an ongoing basis are eligible. The budget also clarifies eligibility criteria for the disability tax credit to include the provisions dealing with impairments in mental function.
This budget also adds physiotherapists to the list of health professionals who can certify eligibility for the disability tax credit. It expands the list of expenses eligible for the disability support deduction to include costs such as for job coaches, deaf-blind intervenors and Braille note takers.
Another important measure for students who are eligible for the disability tax credit is the extension of the contribution period. The maximum amount of the refundable medical expense supplement has been increased to $750 from $571 per year. The annual child disability benefit has been increased to $2,000.
These are areas that I am extremely proud of. Not only does the budget deal with children, seniors, families, people with disabilities, but it goes beyond that and addresses broader issues such as the environment which affects our health and our economy. The future direction of our economy affects just about everything.
The new deal for cities is another area in which we have made a commitment and on which we are delivering. It is an area that has been crying out for action for some time. We are bringing the cities to the table. There will be tripartite agreements. The cities will be at the table to decide, together with the Government of Canada and the provinces, how moneys will be spent in those cities so that their needs are attended to directly. This is very important.
The municipal green fund is another area that addresses the environment and the municipalities. In fact, not only are we renewing this program, but it has existed for quite a few years. This program is not new to this budget; it is one which we have had for quite some time.
The latest decision by the Supreme Court also reminds us that we must not forget that while we have made a commitment of $41 billion to renew our health care system, we must now fight to ensure that the health care program remains a publicly funded, publicly administered universal program and that privatization does not creep into the system. That means we may have to push forward the wait time limits. We have to push forward the reforms together with the provinces and put pressure on our partners in the health care system to make sure that the deficiencies that exist are fixed as soon as possible.
We have to also look at the Canada Health Act. Perhaps it needs amendments and strengthening. We also have to look at other potential powers and strengths that we have at our disposal. Our health care system is not only a social program, but it is very much an economic program. We have recently seen the differences at General Motors between the costs per car here in Canada and the costs per car in the United States. It makes our businesses that much more attractive, that much more cost effective. Productivity is something the hon. members opposite talk about a great deal. Educating children, early education, health care, training and education go to productivity.
Even Mr. Dodge, the governor of the Bank of Canada, said very clearly two or three times during his hearings before the finance committee that if he only had one penny left to spend, he would invest it on children. He said that at the end of the day that is where he would get his biggest reward, his biggest return on long term productivity, lower costs to health and a much more productive society. That is where he would invest.
The former deputy of the Department of Finance and head of the Bank of Canada stated that.
As I say, this is fundamentally important. These are programs that finally address the social justice issues in our country but also very fundamentally address the economic policy as well. They are intertwined. Social policy and economy policy are not two separate things. They are one and the same. One cannot deal with one without addressing the other. If that is done, it is done at our peril, and we would not have a society that functions, is prosperous or current in today's modern society.