Mr. Speaker, I am pleased to speak today to Canada's economy and how the Conservative government's policy and initiatives are delivering, in a significant manner, for Canada's manufacturers and our forestry industry.
Less than two years ago, Canadians voted for a change. Canadians voted for a government with clear priorities, for leadership, for accountability and for action, which is exactly what the Conservative government has done. This government stepped up to the plate, assumed its responsibilities and is getting the job done.
Because of the leadership of our Prime Minister, Canada's economy has never been stronger. Despite the rhetoric of the opposition parties, Canada's economy is rock solid. Contrast this to most of our closest trading partners that are experiencing economic uncertainty and flirting with recession.
Canadians now enjoy the lowest unemployment rate in 33 years, 5.8%, which includes the lowest unemployment rate in years for Quebec. This year alone overall employment in Canada has increased by nearly 350,000 jobs and most of these are full time, high quality, good paying jobs. Business investment is expanding and we are experiencing the second longest economic expansion in our nation's history.
We are the only country in the G-7 that has ongoing budget surpluses and a falling debt burden. As our government continues to pay down our debt, we will ensure that the interest payment savings are returned to hard-working Canadians in the form of tax cuts, similar to the $60 billion tax cuts announcement made by the Minister of Finance just two weeks ago, which, by the way, the hypocritical Bloc voted against.
Our economy continues to grow at a solid pace. During the second quarter of 2007, the Canadian economy grew by 3.4% and following first quarter growth of 3.1%. Private sector forecasters expect continued solid growth over the next five years. The world is bullish on Canada and with good reason.
Who is responsible for this success? The answer is very simple. Canadians from all walks of life and across all communities, those who every day are developing and adding value to our resource industries, those working in our manufacturing industries, those innovating and developing in our schools and universities, those maintaining our critical infrastructure, our construction industry and those other Canadians who provide the goods and services that make this nation what it is today.
It is thanks to these Canadians that we can stand up with pride and say that Canadians from coast to coast to coast are building a better, safer and stronger Canada.
What was the role of the Bloc Québécois in attaining these economic feats? The answer is and forever will be that of a bench warmer. The Bloc will always be relegated to the opposition benches and will never be able to deliver a single result for la belle province.
In stark contrast to the party that will always be in proverbial opposition, this government understands the vital role played by the manufacturing sector. We have acknowledged its challenges and have delivered meaningful results.
Manufacturers employ over two million Canadians in our cities and in our rural communities, in small businesses as well as in large firms. Manufacturing directly represents one-sixth of our economy. The economic spin-offs from this important industry reverberate throughout the entire economy. Without a doubt, a strong manufacturing sector is crucial to a vibrant national economy.
If the Bloc had researched the topic, it would have realized that nearly everything in its motion has already been addressed by either the industry committee's manufacturing report or one of the Conservative government's major economic or innovation announcements.
The industry, science and technology committee, which included two Bloc members, heard first-hand how this vital sector has faced challenges over the past several years, including higher and more volatile commodity prices, intense international competition and a slowing United States economy. On top of this, Canadian manufacturers have had to adjust to the sharp rise in the value of the Canadian dollar.
Last February, my good friend and colleague, the member Edmonton—Leduc and chairman of the House of Commons Standing Committee on Industry, Science and Technology. presented the results of our committee study on the challenges facing Canadian manufacturers. The committee heard from over 100 witnesses and, thanks to the hard work of the member for Edmonton--Leduc, the committee produced 22 unanimous recommendations to our government. These recommendations cover taxation, energy, labour, trade and intellectual property rights protection, as well as regulatory, infrastructure, research and development and commercialization policies.
What was the response of the Conservative government? In budget 2007, we successfully delivered on 21 of 22 of the recommendations, which is why many consider budget 2007 the most manufacturing friendly budget ever delivered. Long before the Bloc conceived this petty attempt at playing politics with this critical sector, our government delivered meaningful results.
Our response, “Manufacturing: Moving Forward - Rising to the Challenge”, was a comprehensive and overwhelmingly positive report, demonstrating our commitment to manufacturers, their employees and the communities in which they live. Our response demonstrates leadership and a willingness to act with urgency at a time when manufacturers need it most.
The government's response was quick and decisive and spoke directly to the needs of manufacturers. Our response delivered immediate tax relief. It secured Canada's place as a leader in the production and use of clean and renewable energy sources through strategic investments. It introduced new initiatives and improvements to existing programs to help ensure that Canadian manufacturers have access to a highly skilled and a well educated workforce.
Last November, the government set in motion its long term economic plan to create five advantages to improve the quality of life and succeed on the world stage: first, a tax advantage that reduces taxes for all Canadians in establishing the lowest tax rate on new business investment in the G-7; second, a fiscal advantage that eliminates Canada's total government debt in less than a generation; third, an entrepreneurial advantage that reduces unnecessary regulation and red tape and increases competition in the Canadian marketplace; fourth, a knowledge advantage that creates the best educated, most skilled and most flexible workforce in the world; fifth, an infrastructure advantage to build the most modern infrastructure that we need; and, sixth, to build a tax advantage, budget 2007 spoke directly to the needs of Canadian manufacturers by introducing tax measures and initiatives that benefit them.
First and foremost, the Conservative government provided a shot of adrenalin to manufacturers by delivering on the number one recommendation of the industry committee report and Canadian manufacturers and exporters of an accelerated capital cost allowance for the purchase of machinery and equipment, allowing for a two year writeoff on these investments. We also increased the capital cost allowance rate for buildings used in manufacturing or processing to 10% from 4%, as well as for other assets. These measures will allow our manufacturers to invest in the buildings, machinery and equipment that will help them remain innovative, productive and competitive.
Budget 2007 also accelerated the elimination of the federal capital tax by two years and eliminated the corporate surtax for all corporations. Again, it was this Conservative government that delivered these measures, while the Bloc will always play the benchwarmer.
Two weeks ago, in his economic statement to the nation, the Minister of Finance announced that our government would further stimulate the manufacturing and processing sectors with additional corporate tax reductions that will provide $2.6 billion in tax relief. This was another bold fiscal measure that was praised by Canadian manufacturers and exporters, again another measure the Bloc could never deliver because it will always be in opposition.
Our bold new tax reduction initiative will lower the general corporate income tax rate to 15% by 2012 from the current rate of 22.1%. With these tax reductions in place, Canada will achieve the lowest overall tax rate on new business investment in the G-7 by 2011 and the lowest corporate statutory income tax rate in the G-7 by 2012. These measures were welcomed by business and manufacturers as an extremely important step in building upon Canada's ability to compete internationally to retain and attract new business investments.
The commitment to eliminate Canada's net debt within a generation will provide for further tax relief in the future. Our Conservative government has committed to return any interest savings from reducing debt back to Canadians directly in the form of lower taxes.
It is imperative to note the height of the Bloc's hypocrisy at this point. Despite the Conservative government providing lower corporate, business and personal taxes, two weeks ago the Bloc stood in this House and voted against each of the measures that will provide substantive assistance to manufacturers when they need it most.
This government has delivered many other measures and initiatives that are enhancing Canada's economy and assisting manufacturers.
A major element of our plan to build an entrepreneurial advantage is to relieve businesses from the paper burden imposed by bureaucracies, which is why we are cutting red tape for small and medium sized companies that often bear a proportionately higher regulatory cost than the larger companies.
Last month, my colleagues, the President of the Treasury Board and the Secretary of State for Small Business and Tourism, took another giant leap toward the reduction of red tape for businesses by eliminating 80,000 requirements and obligations in 13 key regulatory departments and agencies. Our goal is to reduce the federal paperwork burden for businesses by 20% by November 2008. Again, a measure the Bloc will never deliver for Quebec manufacturers.
Another important initiative the government has provided was the announcement of the competition policy review panel as promised in budget 2007 last July. The creation of this panel is another example of how this government is taking seriously Canada's economic place in the world and another sad reminder of the uselessness of the Bloc.
Last week, the competition policy review panel released its consultation paper “Sharpening Canada's Competitive Edge”. The panel will listen to Canadians and make recommendations on how to create the conditions to foster the development of Canadian-based global businesses and how to position Canada to be a world-leading destination for talent, capital and innovation.
To compete in today's global marketplace, manufacturers must be innovative and have access to highly skilled employees. This Conservative government is creating an environment where Canadians firms can harness knowledge, commercialized research and produce innovative products and services.
Canada's long term competitiveness and our standard of living depend on research and development of new ideas. This is why it was no accident that Prime Minister Harper released the national science and technology strategy--