Mr. Speaker, the Government of Canada does recognize the important contribution made by the arts and culture to Canadians, their communities and to Canadian society as a whole. It also appreciates the role played by the Canada Council for the Arts in supporting professional artists and non-profit arts organizations in the country, which is why the government was proud to include in the recent budget a total of $50 million of additional support over the next two years for the Canada Council.
As we all know, the budget focused on five key priorities of the government. The announcement of additional investment in the arts reinforces the government's view that culture is key to building the economic and social health of our communities. But there is more.
The budget also announced exemption from capital gains of charitable donations of publicly listed securities to public charities. This is good news for any arts organization involved in securing support from private donors. In fact, this tax break should lead to a new donation total of roughly $300 million annually, and we expect that arts and culture will benefit significantly from this support. This measure is effective immediately. With this announcement, Canada now provides more tax assistance than the United States for both cash donations and donations of listed securities to registered charities.
These two complementary measures were announced by the government because we believe in the contribution that artists make to our country and because we believe that adequate support for the arts and artists should also be the result of a strategic collaboration between government funding and private sector support.
The arts and culture play an essential role in stimulating our social and economic development. Cultural activity contributed more than $39 billion to Canada's GDP in 2002. Support for artists and the arts has led to the development of outstanding Canadian talent in the literary, visual media and performing arts, thereby enriching the lives of Canadians and laying the foundation for our cultural industries to thrive.
Many studies point to the fact that the arts help to build internationally competitive communities that are attractive to knowledge workers and investors. Our artists also serve as influential ambassadors abroad, projecting the image of a modern and cosmopolitan country. They affirm Canadian identity, critical in an increasingly integrated North American and global environment. We are proud of their achievements in Canada as well as in other countries around the world.
Canadian arts institutions perform at a level that is internationally competitive. Not only are they on stages upon which our most talented artists can perform, they are symbols of Canada's maturity and capacity for excellence. They have improved the quality of life in Canadian communities, providing them with a shared appreciation of the power of the arts and the diverse tapestry of perspectives that make up Canada.
Investing in the arts means investing in our cultural industries and economy. Communities across Canada, from the largest to the smallest, are investing in the arts and culture as an economic lever, as a means to attract investment and as a way to improve Canadians quality of life. They recognize the power of the arts and culture in creating a sense of place and in enriching the lives of their citizens. They are taking advantage of the tremendous creativity and cultural vibrancy that exists within their communities and are building strong partnerships with their local arts and heritage organizations to foster artistic and cultural expression in Canada.
This is why the Conservative government so proudly supports the arts and culture in Canada.