Mr. Speaker, I am pleased to rise in my place today to debate the economic and fiscal update.
Canadians understand that there are certain sectors of the Canadian economy that have been more severely impacted than others by the global credit crisis, including the manufacturing sector in this country that has deep roots in the U.S. economic system.
The manufacturing sector is of great importance to our Canadian economy. Faced with global economic uncertainties, many industries are undergoing considerable transition as they respond to global pressures. The tightening of international credit, a slowing U.S. economy, volatility of energy prices, and the dollar: these are serious challenges with which industry is faced in this current economic climate.
Unlike the opposition which ignored the problem for the last three years, our government acted quickly to provide effective assistance to this sector. From the moment Canadians voted for change, we stepped up to the plate and demonstrated leadership to ensure that this country has the right business climate so that our industries can be more productive, more innovative and secure jobs for Canadians.
Everyone agrees the manufacturing sector has to become more modern, more efficient and more productive. Some of these adjustments will be difficult, but they are necessary for the long-term competitiveness of this sector and of Canada's economy.
The success of manufacturing in Canada will increasingly be determined by the ability of our industries to make adjustments in their production capabilities, to respond to and capitalize on new global realities, including the need to innovate, be more competitive and participate in global value chains. Today this message becomes ever more important.
This government has taken action to help. We are working to ensure that Canadian businesses affected by current circumstances have access to capital to help support their success.
We developed a plan to purchase $75 billion in insured mortgage pools by the Canada Mortgage and Housing Corporation, therefore freeing up much needed credit to help these manufacturers have access to finance.
Furthermore, we have increased the borrowing authority limit for the Business Development Bank of Canada from $9.7 billion to $11.5 billion, ensuring that the BDC has the necessary flexibility to assist small and medium size business in Canada.
By approving a $2 billion increase in Export Development Canada's borrowing authority, our government is ensuring that companies have access to the financing they need to continue to grow, innovate and take advantage of business opportunities in Canada and abroad.
I am very proud that the Minister of Finance announced yesterday in the economic and fiscal update that our government is providing EDC with an additional $350 million in capital to support up to about $1.5 billion in increased credit capacity for those most affected by the current financial crisis. EDC will now be able to add nearly $80 billion in exports and investments it helps to make possible for Canadian enterprises, including $4 billion for the auto sector alone.
We are also providing BDC with an additional $350 million in capital so that it can increase its credit capacity by about $1.5 billion for term lending activities, and a new time limited facility providing guarantees to financial institutions for their lines of credit for viable small and medium size businesses.
These are concrete and effective measures that will make a real impact on the manufacturing sector. They were applauded yesterday by the Canadian Manufacturers and Exporters which stated that the economic update “gave Canada's manufacturing and exporting sectors much needed oxygen and short-term breathing room”.
I am very disappointed that the opposition wants to vote against these important measures supported by the Canadian Manufacturers and Exporters. It is typical of the opposition to put its own self-interests ahead of the interests of Canadian families, workers and business, but I cannot understand how it is that the opposition can disapprove of these measures which are so vital to our manufacturing sector.
It is important to note that these actions are part of a much larger series of measures that this government has taken since 2006, important measures that the opposition has consistently voted against. We acted much earlier, and for those industries and workers affected by the changing economic circumstances, we introduced the $1 billion community development trust to support our communities affected by economic difficulties.
We are assisting older workers in vulnerable communities through the targeted initiative for older workers, TIOW. For the TIOW, we have extended funding to a total of $160 million over five years.
We are working to provide over $9 billion in tax relief for manufacturers and processors. I repeat, that is $9 billion in tax relief for manufacturers and processors. I did not say banks and energy; I said $9 billion in tax relief for manufacturers and processors.
This includes broad-based tax reductions and increasing for three additional years the temporary accelerated capital cost allowance on the investments in machinery and equipment. We have improved the scientific research and experimental development tax credit program.
Let me put this in context and emphasize the impact these measures are having on stimulating the Canadian economy. Actions taken by this government mean that in 2009 Canadians and Canadian businesses will pay $31 billion less in taxes as a result of the tax cuts we have introduced since 2006. That is just in 2009. Canadians will pay $31 billion less in taxes. That is equivalent to about 2% of Canada's GDP and it is permanent structural relief. It is not some flash in the pan, throw some money at it, see if it sticks, we do not know if it will work. That is what the opposition proposes. We propose permanent structural stimulus for the Canadian economy.
We have shown that working on sound economic management, tax relief and strategic investments will help the Canadian industry weather current economic uncertainties and remain competitive.
What the government will never do is write a blank cheque, as the opposition advocates. Canadians have grown tired of short-term and ineffective policies of the Liberals and others. Our government is working with the manufacturing sector to ensure the plan is in place that will ensure the innovation and long-term sustainability of the sector and at the same time provide value for money for hard earned taxpayers' dollars.
Our government continues to take action to create the conditions necessary for business success. Through the measures introduced in recent budgets, combined with the government's long-term economic plan, “Advantage Canada”, the government will deliver on its commitment to help companies in the communities in which they reside to both innovate and succeed.
Our actions will help all sectors of the economy, including manufacturing, the automotive and the forestry sectors. We will indeed take specific steps to respond to specific challenges in specific industries. By providing this long-term foundation, we will provide a stronger economy for all Canadians.
We must keep our eye on the future. Canada will weather this economic storm and we will come out stronger, more innovative, more competitive, and sooner than any other G-7 nation.