Mr. Speaker, it is a great pleasure to speak to Bill C-28. This budget is full of good news for the people of Canada and the people of Edmonton Centre. I intend to highlight the benefits that it will have in my community.
I am very proud to represent the constituency of Edmonton Centre. This is a time of great economic growth in the province of Alberta, but that growth also comes with great challenges that must be met if we are to enjoy the benefits of growth. The vibrant and diverse people of Edmonton are up to this challenge, and I am pleased to see in this budget that the government is giving them the tools that they need for this task.
First, I would like to talk a little about the constituency of Edmonton Centre. The riding includes the downtown core as well as some of the oldest residential neighbourhoods in the city. It includes part of the scenic river valley, one of the oldest municipal golf courses in Canada, and the oldest municipal airport in Canada, Blatchford Field.
A tour of the riding will show us the Alberta legislative buildings, as well as the Royal Alberta Museum, the Art Gallery of Alberta, the Citadel Theatre, the Francis Winspear Centre for Music and the historic Hotel Macdonald. There are corporate headquarters, along with a thriving small business community and the World Trade Edmonton Centre.
We have two of the busiest hospitals in the city, as well as two of the largest post-secondary institutions in the province. There are new condo developments in historic old houses. There are many shops devoted to antiques, as well as many private galleries showing off the best that western Canadian artists and artisans have to offer.
Edmonton's menu of fine restaurants rivals any city in Canada. There are industrial areas and beautiful parkland. The area is as rich and diverse as Canada itself. There are many seniors' residences alongside condos where young families are moving to bring up the next generation.
There has always been a large immigrant community in Edmonton Centre. Where once Ukrainians came to build better lives for themselves and their children, we see the same thing happening with new Canadians from China, Vietnam, Somalia, Sudan and many other places around the world.
I would like to touch upon the importance of students and the measures that the government has taken for their benefit. At schools, like Grant MacEwan Community College, I am extremely pleased to note that post-secondary students will now have their entire scholarship, fellowship and bursary incomes exempt from income tax. For many of these students, that money represents their entire income and this will free them from having to juggle a part time job while studying for exams. More than 100,000 students will be affected by this measure.
Another institution that is important to Edmonton is the Northern Alberta Institute of Technology. This school is the largest supplier of skilled trades and apprentices in the province and supplies fully 17% of apprentices for the entire country.
Several measures in the budget will apply specifically to students at NAIT. I have been to many forums at NAIT and I have been fortunate to be part of a major funding announcement for new programs and services. I have talked to the students at these events and have listened to their concerns. People accept that tuition fees are part of getting a good quality education, but one of the single biggest costs associated with getting an education and which affects the students' standard of living is the cost of textbooks. It is for that reason that budget 2006 has instituted a new textbook tax credit. This will help students where they need it most, and this credit applies to both full time as well as part time students.
Apprentices are critical to the future of the Alberta economy and, in fact, Canada's economy. There is a surge in demand now and this government is moving to ensure that that demand is sustainable. That is why we have introduced the $2,000 job creation tax credit. Eligible employers will now receive a tax credit equal to 10% of the wages paid to qualifying apprentices in the first two years of their contracts, to a maximum of $2,000 per apprentice per year. This helps maintain a supply of apprentices by ensuring that people look at this training as a stable opportunity for future jobs. It will also encourage employers to grow their businesses with a steady supply of skilled labour.
Once the students leave NAIT, they will also receive a benefit from this budget in the form of a $500 deduction for tradespeople's tool expenses, as has already been mentioned. This measure recognizes the cost of tools beyond the $1,000 that is covered by the new Canada employment credit and provides yet another helping hand exactly when and where it is needed.
Successful students are vital to our future and are represented in the budget by several measures, but I also want to highlight another segment of our population that needs a helping hand.
Our senior citizens have lived and worked through some of the darkest times as well as the brightest. They have raised families. They have fought Canada's wars in the cause of freedom. They have started and run businesses and they have paid a lot of taxes. For too many of them, however, life is a struggle, being caught between the rock and a hard place of a fixed income and a rising cost of living.
It is for this reason that the initiative to raise the maximum amount of pension income, which can be claimed as pension income credit, is so important. Since its inception 30 years ago, the credit has been $1,000. Recently we measurably increased it to $2,000, affecting 2.7 million taxpayers and taking 85,000 taxpayers off of the tax rolls altogether. Those people have worked so hard so we can enjoy our prosperity. It is critical to know that 85,000 pensioners will no longer face the burden of income tax due to this budget, and I am extremely pleased to be able to say that.
Another new credit in the budget will help seniors, but it will also help students and all of us. I am referring to the $500 public transit pass credit. One does not have to spend a lot of time in Edmonton Centre to see how important the public transit system is to that community. Whether it is students making their way to college or school, seniors shopping for groceries or businessmen heading for downtown, the Edmonton transit system covers all parts of the constituency and is relied on by a very large number of people.
This new credit will increase ridership and, thus, also increase the frequency of services. It will also reduce the amount of air pollution that is caused by the large number of cars on the road. This is a tangible measure to conserve our environment and protect the health of Canadians and its value will be felt by those who need it most.
The budget has measures to help out the thriving small business sector in Edmonton. Small and medium enterprises are the real engine of our economy and they need a clean and sustainable supply of fuel on which to run. That fuel is capital and our new government wants to keep their tanks full.
Specifically, the government is reducing the current tax rate of 12% on qualifying small business income to 11.5% in 2008 and to 11% in 2009. In addition, we are increasing the amount of income a small business can earn before it has to pay federal tax from $300,000 to $400,000 as of January 1, 2007.
I take great pride in going back to the riding to tell business owners that we are listening to them, that we understand their concerns and that we are taking steps to help them solve their business problems and develop even more jobs and prosperity. Some of these small businesses are companies that provide tax advice to people who are fighting the high cost of living and the high cost of taxes at the same time. They are the ones who have known for a long time that there is an inherent advantage to being a small business owner when the tax man comes knocking.
There are many more deductions that people can claim and a variety of options for lowering the overall tax burden. Those who receive regular employment income rather than owning a small business have always suffered in comparison, but budget 2006 recognizes that unfairness and treats the problem properly with the Canada employment credit. The new credit covers things like personal computers, stationery, uniforms, clothing and a long list of items that people sometimes are required to purchase for their work. If they were small business owners, this would all be deductible as the cost of doing business.
Now the people who earn employment income will be recognized as well. Every Canadian who receives employment income will get up to $500 for the 2006 calendar year and $1,000 for 2007. This benefit will be felt by all working Canadians, especially the low income earners who face barriers in the form of work related expenses.
This budget makes a difference. It is targeted and focused on helping those who need help while providing much needed tax relief for all Canadians.
The seniors and students in my riding will see a significant difference in their cost of living when these tax measures take effect. Working Canadians will take home more of their money at the end of the day. Small businesses will be able to grow without extra penalties and be able to increase employment. In short, this budget is good news for Canada, good news for the province of Alberta and good news for the riding of Edmonton Centre.
I am privileged and proud to be part of the government that has delivered this budget to the people of Canada and I encourage all opposition parties to help us in making the bill become law as soon as possible.