Mr. Speaker, I consider myself very fortunate to be given an opportunity to speak to Bill C-48, a very important bill building on government priorities.
I have had an opportunity to listen to some of the comments made by members of the opposition. There has been a great deal of rhetoric and a lot of partisan comments have been made. We need to deal with some of the facts. How did we get to this particular point? How did we get to this point in the House of Commons where we can debate a budget bill that would allow the government to spend billions of dollars on social programs?
I think it is important to acknowledge the hard work of the government after it inherited billions of dollars worth of deficit in the early nineties. This government reduced the deficit. It then went above and beyond that and started to reduce the debt. We have saved about $66 billion or about $3 billion worth of interest payments and savings on an annual basis.
Above and beyond that, the government conducted a recent internal expenditure review which was in the 2005 budget. That is also the foundation of this budget bill. We saved $11 billion over a five year period on that as well. The government has saved billions of dollars which has enabled it to now make investments.
The backdrop of this particular debate has to do with the economy. The opposition talks about productivity and about having sound fiscal management in place. It talks about the importance of being accountable to taxpayers. Let us look at the economic story here and deal with some of the facts.
Canada led the G-7 nations in average annual growth in employment from 1997 and 2004 at 2.2%. The Canadian unemployment rate is currently at 6.8%. In the month of May, not too long ago, the government, through its policies and its initiatives, helped generate 35,000 new jobs for Canadians from coast to coast. That was a tremendous achievement.
The Canada-U.S. gap in terms of the unemployment rate was at five percentage points in 1996 when we inherited the deficit and the fiscal problem from the Conservative government and it is now down to 1.5%.
Canada's average productivity performance has improved significantly in recent years. Overall, from 1997 to 2004 the average business sector labour productivity growth was 2.1% per year, up from 1.2% from 1990 and 199696.
Those are some of the economic indicators as to where we are headed as a nation. Where do we come from and how did we get to this particular moment in time where we are in a sound financial position to make investments?
The opposition continuously asks us what government is all about, where we are headed and what we want to accomplish. We are a party that is socially very progressive, although I do not want to get into social issues, we also are financially very sound. We have the trust of the Canadian public. Which party reduced the deficit? It was our party. Which party helped reduce the debt? It was our party.
We are now in a position to invest in key initiatives. We took it upon ourselves to work with the NDP and come up with a deal to further enhance areas of common interest. It was not a new budget. It did not come out of the blue. It was based on common ground. This new deal focused on areas where both parties could work together to make sound investments. It amounted to a $4.5 billion investment four key areas: affordable housing, post-secondary education, the environment and foreign aid.
I just do not understand what the opposition members are concerned about. Are they concerned about affordable housing? People in Mississauga--Brampton South and in other parts of the country need affordable housing.
Are they concerned about post-secondary education? Not too long ago I did my under-grad at York University and my MB at the University of Windsor. I recall the increasing tuition fees so I know firsthand that we have an obligation to students.
Are the opposition members concerned about the environment? We have heard about the smog in Toronto and other parts of the country. The environment is an important issue so I do not see what the problem is from the opposition side.
Is the opposition concerned about foreign aid? Even today the opposition talked about the 0.7% for foreign aid. The only way we can get there is by investing so we invested in those areas.
What does $4.5 billion amount to? Those members make it seem like we are out of control and our expenses are out of control but that is not the case. The $4.6 billion will come out of the anticipated surpluses. How do we generate those surpluses? Some economists think we are too conservative. They believe that in our approach we are too cautious in that we do not want deficits. They are exactly right, of course we do not want deficits.
We were the government that came into power and eliminated deficits. Therefore it is based on our methodology and on the way we calculate our budgets that we come up with these surpluses.
By the way, the $4.6 billion amounts to approximately 1% of our base budget over a two year period because we spend approximately $200 billion on an annual basis. I cannot understand why the opposition would lose sleep over 1%.
On top of that, we have made a commitment to further reduce the debt by $4 billion over a two year period.
As I have said before, in the four areas in which we will be investing money, $1.6 billion of the $4.6 billion amount will go toward affordable housing. It will definitely help a lot of low income families in my riding who are having difficulties. My colleagues in the past have talked about some of the initiatives that we are taking. This is a sound investment above and beyond what the government has committed in the budget already.
It will also be investing in post-secondary education. Not in my riding per se but in a riding nearby is the Erindale campus for the University of Toronto where I meet many of the students. Some of them even help me out during my campaign. It is just ridiculous the amount of debt they have after they complete their studies at post-secondary institutions, especially the students attending the University of Toronto. For them this bill will be a huge relief.
We talk about the fact that youth are not engaged in politics. This is an issue that speaks to youth concerns. This is a concern that they have and the fact that we are making a sound investment speaks to the fact that we are listening to them.
Then there is the environment. We are spending about $900 million in that area and the focus is on public transit. I know in the riding of Mississauga—Brampton South that is very important. The fact is that the region is growing at a very fast pace. When we look at it on an annual basis, we have 240,000 immigrants that come to this country and close to 100,000 choose to call Toronto, or the GTA, their home. Naturally that has caused the growth in that area. We need to make sound investments in transit so people have a viable alternative as opposed to driving their car and that definitely has an impact on our environment.
I recall a couple of weeks ago a few constituents came to my office. They said that they had come from countries abroad and they were talking specifically about India. They were astonished about the fact that we care about the environment, that we invest money in the environment, that it is a priority of ours and it speaks to the kind of country we have built. They were very proud of that fact because of where they came from. They came from a large urban centre. One person was describing a particular instance of going out wearing a white T-shirt. He said that after a couple of hours he came back and his T-shirt was dark black. That is the kind of environmental concerns they have in other countries.
Therefore the environment should be a priority and I am glad we are spending $900 million in that area as well.
The fourth plank in this agreement that we had with the NDP is foreign aid. We will be investing $500 million in foreign aid.
As I have said before, the government has a responsibility and a role to play not only in domestic affairs but a role to play abroad as well. We have an obligation to those countries that need our assistance and to those people who rely on us for assistance.
I think $500 million in foreign aid is a sound investment. It is something that speaks to again the type of country we are. We are the country that our former prime minister, Mr. Pearson, helped to build and develop our role in the world. That tradition has continued for many years and is resonating with our current Prime Minister as well. He has had the ability to travel abroad.
I have had the privilege of travelling abroad as well with the Prime Minister to Southeast Asia during the tsunami disaster and the fact that it devastated the lives of so many people. Many people lost their homes, many were displaced and many needed aid and assistance.
Because we are a privileged country and a country that is in a sound fiscal management position where we have millions if not billions of dollars in surplus, we have a responsibility. Again, this speaks to the Prime Minister's commitment.
Today we are here debating not about the budget but we are debating the kind of country we want to build. An additional $4.6 billion investment into the economy and into social infrastructure is very important.
Through this budget, the government will be investing in key areas and those key areas have been further enhanced by our coalition with the NDP to get the budget through. It was not a sign of desperation. It was a sign of our philosophy and our commitment to the Canadian people.
We are part of a minority Parliament because people wanted us to work with opposition members. They wanted us to work with other parties so we made a deal with the NDP. Where did we make it? We made a deal on education. I do not see what is wrong with that. We made a deal on the environment and we strengthened our role in the world. I am very proud of that and I stand by the budget.
I again want to commend the Prime Minister and the Minister of Finance for their hard work in putting together this budget.