Mr. Speaker, it is fair to say, based on the comments I heard from people in my riding, that Canadians do not want another election. With few exceptions, they would not accept an alternative government and prime minister that were not elected by the people.
Therefore, it is time to move ahead, take a collective breath and find the means and path to move forward in a strong and decisive manner. This, more than anything, is what I believe Canadians want us to do, especially at this delicate time for our economy.
Our newly elected government assembled Parliament quickly, a little over a month after the election. We laid out our agenda in the 40th Parliament in the Speech from the Throne. That agenda received the support of the House last Thursday. On the same day, the Minister of Finance delivered his economic and fiscal statement, a statement which informed Canadians about current economic conditions Canada was encountering, a statement that framed the government's intentions for the term ahead on matters of financial priority and plans.
The statement signalled a commitment to deliver additional measures in the months ahead to protect and strengthen our economy. It recognized that these additional measures must be done in concert with the provinces and with our G20 partners.
However, to put that current situation in context, and as I mentioned earlier, Canada is already in a much stronger position of all the G7 countries. We took action early, ahead of the curve, to bring stimulus to Canada's economy. We did this with tax cuts to individuals and businesses, which will total some $31 billion next year, equivalent to 2% of GDP, equivalent to the recommended stimulus that all G20 countries have agreed to implement going forward. These are permanent, sustainable tax reductions that keep money in the pockets of Canadians and Canadian businesses this year, the year after and the year after that.
Since 2006, we have reduced the tax rate on new business investment to the lowest level in the G7 by 2010. We have made historic investments in job-creating infrastructure and invested in science and technology, education and training. On the infrastructure front, we have embarked on the largest infrastructure program since World War II. The depth of these interventions, the ones we have taken and are prepared to take, are unparalleled in the world's advanced economies.
History teaches us that government responses to these types of economic downturns are best to include stimulus in the form of investments like infrastructure, but also to keep credit available for consumers and businesses. Credit is an essential and integral part of the economy for it to function well.
In the last months we took prompt action to keep credit flowing without putting tax dollars at risk. We created liquidity for our financial institutions, building on the solid position our banking system already enjoys in the world.
As the world economy deteriorates, however, there is little doubt that we are going to feel the negative impacts. Our forecasts show us dipping into recession this quarter and perhaps the first quarter of 2009. This is consistent with private sector forecasts also.
Even with these lapses in growth, the first in almost 18 years, Canada has among the best economic outlooks among industrialized countries. Therefore, part of a prudent way forward must also include prioritizing government expenditures in line with the priorities of Canadians. This will give us more capacity to invest in the economic futures of Canadians and our businesses without running up the national mortgage.
That is the approach we have laid out in the throne speech and in the economic fiscal update. It is an agenda to build on the hard-won success of our economy over the last decade or more, build on the sacrifices and determinations that individuals Canadians and innovative Canadian businesses have taken, the ingenuity they have shown to dig in, work hard and improve their lot in life.
At times like this we owe it to them not to squander Canada's strong position, but to stay on the course that has, in fact, delivered that position with fiscal discretion, paying our way and targeting our investments for the long-term competitiveness of the economy. This is how we can ensure Canadians will be afforded the greatest opportunity to earn a good living, support their families and realize their dreams and aspirations.
Let us get to work and do well by all of them now. We have not a moment to lose.