Mr. Speaker, it is just now that the hon. member for Brant remarked that manufacturers are facing difficulties. It is as though this is a new reality for members opposite, yet workers have been losing jobs in manufacturing since 2002. It is sad that manufacturers, their workers, their families and their communities that depend on them have to pay dearly for the lack of leadership in the previous government.
Why did the previous government not take action when it became clear that our manufacturing industries were facing a perfect storm? With over two million Canadians directly employed in such a cornerstone component of our economy, one is left to wonder.
I want to bring forward some of the comments he made in his speech.
He did not do his homework. If he did, he would know that almost 18,000 new manufacturing jobs were created this past January. Last year wages in Canada grew. He says that in service jobs and the jobs created, the low paying jobs, overall wages grew 4%. Unemployment overall is at a forty year low. Unemployment in Canada is 6.1% and in manufacturing, the sector that he talks about, it is 5.9%. We are really getting things turned around.
Fortunately, Canadians decided for a change, for action, for leadership last year. That is why this government immediately set out to introduce measures that would benefit the manufacturing industries.
Our first budget was described by the industry as the best budget for manufacturers and exporters in five years. By the way, the member voted against it. We introduced 29 tax cuts, including eliminating the capital tax, reducing corporate and small business tax rates and confirming the elimination of the corporate surtax. We also took steps to improve productivity through investments in innovation and skills training.
We followed up November 2006 with “Advantage Canada”, a long term plan to make Canada a world economic leader. This plan announced the Government of Canada's strategic economic priorities for ensuring that businesses, including manufacturers, would benefit from advantages of competitive taxes, a sound fiscal environment, broad-based entrepreneurial opportunities, extensive knowledge resources and a modern infrastructure.
In March 2007 we introduced a budget that created a shift in attitude toward the manufacturing sector not seen in a decade. Budget 2007 introduced a new temporary investment incentive for manufacturing and processing businesses at a cost of $1.3 billion, permitting businesses to write off 100% of their investments in machinery and equipment over the next two years.
In budget 2008 we are enhancing this measure, allowing manufacturers to benefit from an additional $1 billion in support.
We committed to cutting red tape for businesses, in particular small and medium sized businesses, and we are delivering. The government took another important step in October 2007 to eliminate 80,000 requirements and obligations in 13 key regulatory departments and agencies.
We also announced the details of a $33 billion building Canada plan to modernize our infrastructure, which includes at least $400 million for the new Windsor-Detroit crossing.
Innovation is an important driver to improve productivity, and business, research and development is a pillar of innovation. This is why the government introduced a new science and technology strategy that will benefit industry. In budget 2008 we have proposed improvements to the scientific research and experimental development tax incentive program, based on the consultation we launched last year, as well as $34 million per year for collaborative research that contributes to the knowledge and innovation needs of the automotive and manufacturing sectors, among other sectors.
With budget 2008, we are providing over $9 billion in tax relief to manufacturers over the period of 2006-07 to 2012-13.
Our tax reduction initiatives will give Canada the lowest overall tax rate on new business investment in the group of seven, the G-7, by 2010, and the lowest statutory tax rate in the G-7 by 2012.
In January we unveiled the community development trust aid package of over $1 billion. We—