Mr. Speaker, I want to thank the hon. member for participating in the industry committee report. As he stated, it was a wonderful report. The Minister of Finance actually took the majority of the recommendations and put them into the budget. I would request that he take a look at the budget a little more carefully because we are incredibly concerned about plant closures. I believe it was Perrin Beatty who said that this is the best budget for Canadian manufacturers in recent history.
Canadians elected their new government just over a year ago. At that time, we knew there were manufacturers across Canada facing serious challenges: high energy prices, an aging workforce, a high Canadian dollar relative to the U.S., and an economic slowdown for some of our major trading partners. Our government was not content to sit back and watch one of Canada's oldest and most important industrial sectors, one that employs over two million Canadians, disappear.
As my colleague heard through our month-long manufacturing study in committee, for manufacturers to succeed they need to increasingly rely upon their knowledge advantage. They need to be innovators. They have to be able to compete in a global economy. To be successful they have to operate in an environment that promotes innovation and investment.
They need access to a knowledgeable and highly skilled labour force. That is why when Canada's new government brought forth our first budget, we introduced 29 tax cuts in budget 2006. We eliminated capital tax. We reduced corporate and small business tax rates and we eliminated the corporate surtax. Then, last November, we announced our plan to rebuild a strong economy by creating the right conditions for Canadians and Canadian businesses to thrive. “Advantage Canada” is a strategic, long term economic plan to improve Canada's economic prosperity, both today and in the future, a plan to build an economy that will benefit manufacturers.
Our plan focuses on five key advantages that will help Canada compete globally: a tax advantage that will continue to reduce taxes for all Canadians and establish the lowest tax rate on new business investment in the G-7; a fiscal advantage that will eliminate Canada's total government net debt in less than a generation; an entrepreneurial advantage that will reduce unnecessary regulation and lower taxes to unlock business investment; a knowledge advantage designed to create the world's best educated, most skilled and most flexible workforce; and an infrastructure advantage that invests in modern, world-class infrastructure to ensure the seamless flow of people, goods and services across the country and across our borders.
In budget 2007, we delivered directly to the needs of Canadian manufacturers.
The government introduced tax measures, including a temporary change to the capital cost allowance that will encourage manufacturers to invest and be more productive.
The government is working to identify opportunities to improve the scientific research and experimental development tax incentive program.
The government will put in place the programs and initiatives needed to ensure that we have the best educated, most highly skilled workforce.
The government committed to reducing the paper burden in businesses and streamlining regulations.
The government invested in the infrastructure to make Canada a North American hub for manufacturing.
We committed to aligning research investments with the real-world challenges of commercialization.
Canada's new government is providing businesses and manufacturers with the right conditions to compete with the rest of the world. Canadian manufacturers are adapting to the global marketplace and they will succeed. They are confident that the government will be there for them.