Mr. Speaker, it is my pleasure today to speak about the benefits of budget 2008 for my hometown of Oshawa. I want to thank my colleague, the member for St. Catharines, for his excellent speech and his dedication to the auto sector.
For too many years Liberal governments ignored Oshawa, but no more. This Conservative government has delivered again and again for the city of Oshawa, and through budget 2008 that legacy continues.
This is our government's third balanced budget in a row. It builds on our long term economic plan and delivers real results for Oshawa residents. The residents of Oshawa expect their government to be responsible and show strong leadership as the country goes through economic uncertainty.
We are taking the same approach to federal finances as families would with theirs. In times of economic uncertainty, we do not overextend ourselves. We pay down the debt and focus on government spending.
We understand what opposition parties do not. Government surpluses do not belong to us. They belong to hard-working Canadians, like those in Oshawa. We will not make uncosted spending promises like the Leader of the Opposition. Those promises would, without question, plunge Canada back into deficit and run up a bare minimum of $62.5 billion in new debt.
Canadians will not go back to false Liberal promises, and I am overjoyed that over two years ago the residents of Oshawa voted for change and voted for a responsible Conservative government.
Budget 2008 builds on the decisive, pre-emptive action taken in the 2007 fall economic update and during winter 2008 to lower taxes for people and businesses, pay down debt, and provide targeted support to troubled industries.
One of those industries is the automotive sector, an industry that Oshawa depends upon and one that I care deeply about. I am acutely aware of the current challenges facing this critical sector and the unfortunate job losses, which is why this government will continue to deliver real tangible results that address these challenges head on.
It was this Conservative government that had the foresight to act ahead of the curve to protect our manufacturing and auto industries.
We are creating a competitive tax environment through broad-based tax reductions that support job creation, growth and investment in all sectors of the economy, including manufacturing.
Actions taken by the government since 2006 are providing $21 billion in incremental tax relief to Canadians and Canadian businesses this year alone. This is a significant and substantial economic stimulus equivalent to 1.4% of Canada's GDP.
Specifically, the government will provide over $9 billion in tax relief by 2012-13 to the manufacturing sector. We have also responded by extending the temporary capital cost allowance for manufacturers for three additional years on a declining basis, which will assist the sector to restructure and increase investment.
Our plan is taking affect. There were approximately 18,000 new manufacturing jobs created in January and the manufacturing unemployment rate is 5.9% versus the national rate of 6.1%.
Our auto industry is a great source of pride to us in Oshawa and through budget 2008 we will take the needed steps to ensure that it will always remain something of which to be proud.
The actions taken by this government will result in over $1.6 billion in benefits for the automotive sector over this and the next five years. Moreover, the automotive sector will also benefit from over $1 billion in tax relief by 2013.
Once again, our actions are making a difference. In February 2008 General Motors of Canada saw a sales increase of 14% over the same month last year. The year 2008 is already off to a good start.
In order to ensure the auto industry continues to thrive and succeed, the Minister of Industry has recently unveiled our government's auto action plan. This approach is built on four pillars: first, a positive business climate; second, an integrated North American auto sector; third, investing in automotive research and development; and fourth, the creation of a new automotive innovation fund, a $250 million fund to lever large scale private sector R and D and innovation in greener, more fuel efficient vehicles.
This is great news for Oshawa auto workers. The Liberals ignored Oshawa's auto needs and under their watch there were significant plant closures in 2004-05.
The Canadian Vehicle Manufacturers' Association knows we are on the right track. Mark Nantais, president of the CVMA, said on February 29:
The federal government’s attention and focus on one of Canada’s most important sectors of the economy is greatly welcomed and well timed given the challenges currently faced by Canada’s vehicle manufacturers...The government's policy is positive and should assist our industry as it transforms, adapts and strengthens in response to unprecedented global challenges.
We are getting the job done for the auto industry.
I would also like to take some time today to talk about the benefits of this budget to students and hard-working Oshawa families. To date, our government has made nearly 60 tax cuts that will provide almost $200 billion in tax relief over this and the next five years, $140 billion of which will be for individuals.
Our government is establishing a proud legacy of tax relief. We have provided relief in every way that government collects taxes: personal taxes, consumption taxes, business taxes and excise taxes. We are now rounding out our tax relief package by reducing taxes on savings with a new tax-free savings account.
Oshawa residents have told me we need a mechanism that will allow them to save more of their hard-earned money and watch it grow, and this government has delivered. This is the first mechanism of its kind in Canadian history and the most important savings vehicle since the introduction of the RRSP.
Budget 2008 is also delivering for our students. As a father of three children, I strongly believe in investing in tomorrow's leaders. Budget 2008 invests in our youth and will give them the tools they need to succeed. As the Canada millennium scholarship foundation winds down, our government will provide $350 million for the Canada student grant program, growing to $430 million in 2012-13. This funding will reach over 100,000 more students from low and middle income families than the current system.
Budget 2008 is building on initiatives that have already been announced for students. These include education, tuition and textbook credits, public transit credits and an apprenticeship job creation tax credit. We are creating a climate of success for our students and budget 2008 is taking a huge leap forward.
Through budget 2008 we are also protecting those in need in our communities. To date the Conservative government has committed $1.4 billion over three years through three trusts with provinces and territories to help address short term pressures with respect to affordable housing. I have had the privilege of making housing announcements over the past two weeks, one at the Anderson House and the other at Houselink Delaware, and saw firsthand the results of this funding.
We have also committed funding to affordable condominiums in the GTA and to renovate the historic Oshawa hotel. These new units will allow lower income families and individuals in Oshawa to live in safe, quality housing at an affordable cost. We are delivering on a commitment to help those who are homeless and at risk of becoming homeless.
Regrettably, those who are homeless often suffer from mental illness as well. To that end, our government is providing $110 million to the mental health commission to support demonstration projects focused on homeless people who are mentally ill.
In addition, through budget 2008, we are providing $500 million to make further investments in public capital transit infrastructure. This funding will directly benefit the residents of Durham region through the re-establishment of the rail link between the city of Peterborough and Toronto's Union Station, which will flow through the north of Oshawa.
In February, Minister Flaherty also committed $2.5 million to the Durham region for the development of a long term transit plan. This fund--