Mr. Speaker, I am honoured to have the opportunity to speak to the budget this afternoon and honoured to be splitting my time with the hon. member for Oshawa who is the Parliamentary Secretary to the Minister of Industry and who has done an outstanding job on behalf of not only his community but the auto sector and certainly industry across the country.
It is an honour to rise today in my place and speak in favour of budget 2008. This is a budget that delivers support for individuals, families, small businesses and large corporate employers. This is a budget that invests in Canada's physical capital and it is a budget that invests in Canada's human capital.
This budget, in particular, is one that speaks to the needs of my constituents in St. Catharines, a community where thousands of jobs depend on maintaining a strong and vibrant manufacturing sector, a community where thousands and more depend on trade and tourists to continue to flow across a safe and secure border and a community where thousands of students of Brock University need to work hard every day to ensure their tuition bills get paid. For my community, budget 2008 gets the job done.
We know that certain economic forces outside of our control mean that there will be challenges ahead but with this budget we have shown that we are ready.
In budget 2008, our government has laid out a strategic plan, with targeted investments in specific sectors, to ensure that our economy remains stable and that the next generation will have the skills it needs to compete in the new global economy.
I will speak to that strategy. Beginning in 2009, every Canadian over the age of 18 will be eligible to deposit up to $5,000 per year in a tax-free savings account. The money deposited will not be exempt from tax but all capital gains and investment income on those sheltered funds will be. Withdrawals can be made at any time and they will not be taxed. Unused contribution room can be rolled over and the contribution limits will be indexed to inflation. Income earned within and withdrawals made from a TFSA will not result in the clawing back of any means tested federal benefits.
Finance Canada estimates that in combination with existing registered plans, the TFSA will eventually allow over 90% of Canadians to hold all of their assets in tax efficient saving vehicles.
All good economists know that incentives matter. This proposal gives Canadians a strong incentive to save, which will help keep our economy strong.
It is important for individual Canadians to be financially responsible but it is just as important for the government to do it as well.
That is why I am proud to be part of a government that as of budget 2008 will have reduced the national debt by $13.8 billion by 2009-10. By 2012-13, total debt reduction by this government since coming into office will be in excess of $50 billion. As I am sure Canadians know, thanks to the tax back guarantee, those reductions mean $2 billion in annual interest savings by 2009-10 which will be dedicated to ongoing personal income tax reductions.
As I said earlier, this is a prudent Conservative budget with specific limited investments in targeted areas. One of those priority areas is infrastructure. Cities, like St. Catharines, need help to maintain and upgrade their physical capital. That is why I am glad to see that budget 2008 is making permanent the gas tax fund worth $2 billion in 2009-10. That means on a yearly basis for a riding like mine close to $2 million in yearly investment.
I am glad to see that budget 2008 sets aside money for public transit infrastructure. St. Catharines has already benefited from this government's commitment to infrastructure. Just last month I was honoured to announce that we received over $1.7 million to improve water mains in the city of St. Catharines. It was money that was greatly needed and the improvements will be truly appreciated.
As I mentioned, St. Catharines is also very dependent on our manufacturing sector, which is why budget 2008 is great news for our city. It extends the accelerated capital cost allowance treatment for investment in machinery and equipment for three years, with a 50% straight line accelerated CCA treatment then provided on a declining basis over a two year period following.
Then there is the additional $1 billion in support for Canada's manufacturing industrial sector that will go into the community development trust established just this past winter. Ontario received upwards of $350 million of that funding. In combination, this is a tremendous shot in the arm for an industry hard hit by the international economic climate.
One of the largest employers in my community is General Motors so it is great to see that there is support specifically targeted for the auto sector and auto makers.
First, the budget allocates $34 million per year for new research to the Natural Sciences and Engineering Research Council targeted to the needs of key industries like the auto sector. Then there is the outstanding news that we are establishing an automotive innovation fund that will receive $250 million over five years to support strategic, large scale research and development projects by automotive and parts manufacturers in developing greener, more fuel efficient vehicles. It is good news for the environment, it is good news for the economy and, most of all, it is good news for St. Catharines.
There was good news for students at Brock University and Niagara College. As the Millennium Scholarship Foundation winds down, we will provide $350 million for a Canada student grant program in 2009-10, growing to $430 million in 2012-13. Thanks to this reform of federal student support, we will now reach an additional 100,000 students from low and middle income families than we have been able to help under the current system.
Parents will be happy to hear that budget 2008 proposes to enhance the flexibility of RESPs by raising the maximum time limits that an RESP may remain open from 25 to 35 years and by extending the maximum contribution period by 10 years. In combination, those measures help make it possible for all Canadians to get the tools they need for our 21st century economy.
The budget also has a number of measures for families. It provides support for the Mental Health Commission of Canada to help develop best practices to aid Canadians facing mental health and homelessness challenges.
It provides support for Canada's food and consumer safety action plan will help prevent lead from showing up in children's toys. There is an expansion of the list of eligible expenses under the medical expense tax credit, including service dogs and training to help individuals cope with disabilities or disorders such as autism.
My riding has over 23,000 seniors who are active and involved in the political process. I know they will be happy to hear about the results delivered in budget 2008.
Like I said, good economic policy is all about incentives, which is why we are increasing from $500 to $3,500 the guaranteed income supplement exemption for earned income. In other words, we are ensuring that lower income seniors who want to stay in the workforce are not facing government disincentives if they make that choice.
In the same vein, we are extending to 2012 the targeted initiative for older workers to help even more older workers who want to stay in the workforce.
For seniors facing the risk of elder abuse, budget 2008 provides over $13 million over three years to help seniors and others recognize the signs and symptoms of this terrible phenomenon.
To recognize the debt of honour we owe Canadians and our veterans, budget 2008 expands the veterans independence program to support the survivors of veterans. It is the right thing to do.
Finally, I mentioned that my community needs trade and tourism to keep flowing over a safe and secure border and budget 2008 makes that possible. We will be investing over $15 million in Niagara over two years to establish a permanent facility to enhance the security of the Great Lakes-St. Lawrence Seaway region.
People right across the country will be glad to see that budget 2008 commits to introducing a higher security electronic passport by 2011 and doubling the validity period to 10 years when this passport is launched.
This a good budget. It shows an awareness of the challenges we face and sets our country on a prudent, responsible course that will see us through to a prosperous future. I eagerly await its passage and look forward to seeing its benefits at home in St. Catharines and right across our great country.