Mr. Speaker, I will be sharing my time with the member for Palliser.
Before discussing the federal budget, I want to congratulate all the men and women who took part in yesterday's election in Quebec. In particular, I want to congratulate Premier Jean Charest on his reelection, and Mario Dumont on his fine campaign.
I am pleased today to be able to address this House to discuss the merits of the excellent budget tabled a week ago by my colleague, the hon. Minister of Finance. This budget reflects the Government of Canada's unwaivering support for our agriculture and agri-food sector. Our government has confirmed its intention to ensure a prosperous future for our farmers. Quebec's agriculture sector is a major contributor to the Canadian economy. We know that Quebec's producers, just like the producers in the rest of the country, are not asking for a handout. We want them to be able to benefit from solid, predictable programs in order to face the growing challenges they encounter. The new Government of Canada is keeping its promises to improve farm support programs and encourage the production of renewable fuels. We are supporting our producers and protecting the environment at the same time.
The 2007 budget contains an additional $1 billion for producers. Once the cost-shared agreement for the new savings account program is signed with Quebec and the provinces, the government will give $600 million to producers for them to put in their new savings accounts. To help compensate for the increased cost of production over the past four years, the budget also includes an immediate $400 million payment.
The launch of a program focussed on savings accounts for producers is a major step in replacing the Canadian agricultural income stabilization program, commonly referred to as CAIS, with programs that are more predictable and better suited to our producers' needs. As I was just saying, we have entered into negotiations with the provinces in order to implement a savings account program. Together, this new program, the disaster relief framework, improved production insurance, and an improved margin-based program will replace CAIS.
That was an election promise and we have kept it. Investments in renewable fuels production will allow Quebec and Canadian producers to help the bioeconomy grow. Budget 2007 will provide $2 billion over seven years for the production of renewable fuels, including $1.5 billion for incentives to produce renewable fuels such as ethanol and biodiesel. In addition, $500 million will be made available to Sustainable Development Technology Canada to invest with the private sector in setting up large facilities producing renewable fuels. These actions show that the Conservative government listened to producers. We keep our promises and we deliver.
I would like to take a moment to explain how the investments this government is making will help producers in Quebec. Budget 2007 builds on the proven ability of the new Government of Canada to provide Canadians and their families with tax relief, including a new working income tax benefit of up to $500 for individuals and $1,000 for families, to reward work and strengthen incentives to work. Workers in Quebec will receive $106.7 million under this new initiative. We also have a new child tax credit that will provide more than 3 million Canadian families with up to $310 in tax relief for each child, resulting in savings of approximately $297.2 million for Quebec parents, and an increase in the basic spousal amount that will provide tax relief of up to $209 to a supporting spouse or a single taxpayer supporting a child or relative. This initiative will translate into savings of approximately $55.7 million for Quebeckers. Also, raising the age limit for registered pension plans, or RPPs, and registered retirement savings plans, or RRSPs, to 71 years of age will save Quebec taxpayers $28.4 million.
The correction of the fiscal imbalance brings unprecedented levels of federal support to Quebec and the provinces. For Quebec, transfers total more than $15.2 billion for 2007-08. Once again, we are keeping our word and delivering the goods. Under a new and improved equalization system, payments will total $12.8 billion in 2007-08, including nearly $7.2 billion for Quebec.
In 2007-08, the Canada health transfer will give Quebec and the provinces cash payments of $21.3 billion in 2007-08, including $5.2 billion for Quebec. The Canadian government will pay $9.5 billion in 2007-08 through the Canada social transfer, including $2.2 billion for Quebec.
In 2008-09, all provinces and territories will benefit from an additional $250 million in the form of permanent CST funding for the creation of child care spaces, as well as an additional $800 million for post-secondary education.
The combination of those two transfers means that Quebec will receive $410.4 million, with an annual increase of 3%.
Furthermore, in 2007 and 2008, all provinces and territories will benefit from an additional $250 million for the creation of new child care spaces. This funding is meant to round out the CST, and includes $97.5 million for Quebec.
Budget 2007 provides $500 million a year for labour market training beginning in 2008-09, including $117 million for Quebec. We have accomplished a great deal, for Canada as well as Quebec.
Overall, Quebec farmers should receive $896 million through various programs begun in 2006. The payments made to Quebec producers during the first three years of the Canadian agricultural income stabilization program should total $598 million. Additionally, Quebec will receive over $51 million of the total budget of $1.5 billion announced for agriculture in budget 2006.
Quebec producers will also benefit as follows: $50 million to cover the additional costs related to changes in the criteria respecting coverage of the negative margin under CAIS; $90 million under the cover crop protection program; and $550 million under the Canadian farm families options program. Quebec’s producers will also benefit from the payment of $46 million under the grains and oilseeds payment program. In addition, the federal government contributed some $22 million to production insurance premiums in 2006 to help Quebec producers manage their production costs.
For Canada’s new government, the long-term prosperity of farm producers also depends on a firm defence of their interests internationally. In fact we think it is crucial to fight the trade distortions caused by domestic aid policies, to work for improved market access and to oppose all export subsidies.
Canada’s new government has demonstrated over and over again that it is prepared to stand up for farmers in Quebec and Canada where our supply management system is concerned. These past years, American corn subsidies have risen to $9 billion a year. That worries us. That is why, last February, Canada held formal consultations at the WTO with the United States about the financial assistance paid to American corn producers with respect to the total level of support for agriculture, which gives rise to a trade distortion, and about some of its export credit programs.
More recently, the Minister of Agriculture once again demonstrated our commitment to defend our supply management system by announcing that Canada’s new government will announce negotiations under GATT Article XXVIII to restrict imports of milk protein concentrates.
I wish to conclude by expressing my pride in this government’s achievements in the agricultural sector in both Quebec and the country as a whole. Thanks to our ongoing action in this sector, we can look forward to a prosperous future for agriculture in our country.