Good afternoon, Madam Speaker, thank you for the opportunity to speak with you during a critical period for Canada. I would also note that I am sharing my time with our distinguished member for Kamloops—Thompson—Cariboo.
A synchronized global recession is hitting every economy in the world. Canada, as a great trading nation, is feeling its effects. I have certainly noticed the pain in my home town of Barrie as well. We have lost jobs in the manufacturing sector, as have many towns in Ontario.
It is my sincere belief that the economic action plan delivered by the finance minister on January 27 was an appropriate and meaningful answer to the economic challenges we are facing. It is Canada's plan to stimulate our economy, to protect Canadians during this global recession and to invest in our long-term growth.
Our government built this plan after one of the broadest and deepest consultation processes in Canadian history. We heard Canadians' concerns about their jobs, their savings and their families. We listened to their concerns and took their advice. Now we are taking immediate and meaningful action.
We are giving more tax relief by letting Canadians earn more money before paying higher tax rates. We are building on the benefits that exist for low-income Canadians. The working income tax benefit is being increased as an added incentive for Canadians to join and remain in the workforce.
I was at the Terraces seniors home in Barrie last weekend for the 90th birthday party of my friend Raymond Blackett. I was told as I left his birthday party to make sure that we did not forget seniors in the budget. I am pleased to say that the budget certainly did not. Seniors will see new support. We are increasing the age credit amount by an additional $1,000, and we are also reducing by 25% the amount Canadian seniors are required to withdraw from their registered retirement income funds for 2008.
The bottom line is that this year and over the next five years, our personal income tax measures will put about $20 billion back into Canadians' hands and back into the Canadian economy to keep it moving forward.
When I think of tax relief, I think of my grandfather. He is very much the typical resident in Barrie. I have dinner with my grandfather every Sunday. He is 92 years old. He has been working every day all his life. He gives me the same message every Sunday: “Tell those folks in Ottawa we pay too much tax”. I think his sentiment is shared by many Canadians. I am glad the budget recognizes that we need to put more funds back into Canadians' pockets.
Let me paint a picture of how tax relief helps the local economy. I give the example of a family in Barrie. Garry Perkins, on Crompton Drive, is a pilot in Barrie. His wife Karen is a local nurse. The Perkins family resides in the north end of Barrie.
Cutting taxes means they will have more money available to support their family. I asked Garry what this tax relief would mean to him, and he gave me an example. Maybe it means he could get his son Andrew a new set of hockey equipment from Garner's, a local sports store on Dunlop Street, so by supporting local business, we are protecting a job that might have been imperilled during the slowdown. The cycle provides tremendous synergy for our economy when we put money back into the pockets of Canadians. Plain and simple, putting tax dollars back into the economy works.
I was particularly encouraged by another aspect of the budget, an aspect that I think is important to note from the perspective of an Ontarian. When I looked at the breakdown of health care across the country, I noticed Ontario is getting a $139 million increase in health care transfers. Canadians coast to coast are seeing an increase as well. It is important to note that point, because the last time Canada and the world faced a significant global recession, the approach taken by the government of the day, a Liberal government, was to significantly cut health care transfers to the provinces. The pain caused by those cuts was quite dramatic. The doctor shortages we are facing today, and some of the catastrophic crunches hospitals are facing, are a direct result of the beating the health care system took during that government's attempt to hide fiscal problems by attacking the health care system.
This government has shown a lot of leadership by managing to continue to increase health care funds despite the economic challenges we are facing, to such an extent that the Liberal Premier of Ontario, Dalton McGuinty, actually commended the Prime Minister two days ago for the budget, which he believes is positive for the country and the province of Ontario.
I am pretty excited about that aspect of the budget. I was touring the ER ward at Royal Victoria Hospital with the head of the nurses' union, Tracey Taylor. I talked to a local nurse, Betty, from Dunsmore Lane in Barrie, and they are already working beyond capacity. It would be the wrong choice to cut health care funds at this time. I am glad this government is not repeating the dreadful mistake that occurred in the 1990s when that government made that error.
Housing and renovation are important aspects of the budget to highlight. Our plan gives a shot in the arm to the home construction and home renovation industries. Both are key drivers of our economy. It allows first-time home buyers more flexibility to withdraw from RRSPs to make their purchase and gives them a break through a tax credit on their closing costs.
Our plan also includes a new measure to let Canadians invest in the value of their homes while putting tradespeople to work and giving a boost to businesses that make and sell building products. For the next two years, the new home renovation tax credit will apply to the costs of labour and supplies. It could save Canadians up to $1,350 when they improve their homes. This should certainly create jobs across the country.
I look at this through the lens of the city I represent. Just two weeks ago I was touring the facility of Yanch Heating in Barrie, one of Canada's leading producers of geothermal technology. I went on the tour with company owner Chris Yanch, who told me residents are taking up this notion of geothermal, which reduces energy consumption by 75%. He said the missing link was that there was not enough incentive to make those changes, and he wished we had a budget that would provide a little more help.
I am very pleased to be able to call that company and say that a resident in Barrie or anywhere in Canada who wanted to install geothermal would now get $1,350 more. We are helping people become active environmental stewards of their own homes.
On that same note, I remember meeting in the summer with people from another company in Barrie, Dommelvalley. They produce solar panels, and they also said that they could do so much more if there were a little incentive to help Canadians make these retrofits to their homes.
This budget does just that. It is important, and Canadians should certainly take the government up on it and make these changes. This incentive supports local businesses, creates jobs, benefits the value of people's homes and benefits the environment, particularly if they choose some of the new technologies available.
Another aspect of the budget that is particularly encouraging is the record investment in infrastructure. From 2000 to 2005, prior to my election to Parliament, I was a city councillor in Barrie. For two of those years I was the finance chair. When we were doing budget every year, I remember how constrained municipalities were with infrastructure needs that existed in Canadian municipalities.
A government that gets it and acts is a tremendous step forward for municipalities. Make no bones about it: this is an all-time record investment in infrastructure, and it is going to make a tremendous difference by not only creating jobs through the construction that this infrastructure will entail but also by helping and strengthening the vibrancy of municipalities in this country.
As Canadian families take steps to build infrastructure in their own homes, we are taking action to build infrastructure across the country. We know that getting shovels into the ground today will create jobs for Canadians now while providing the framework for Canadians to grow upon in the years to come. We are building and renewing municipal, provincial and territorial infrastructure, our post-secondary research and health infrastructure, and our key federal assets. This money will flow quickly, and the shovels will hit the ground quickly. We will see a smoother approval process for projects, and less bureaucracy and red tape.
We are talking about infrastructure that people generally identify quickly. Barrie has several shovel-ready projects, and I see examples that could turn into job creation projects in the future, such as the Allandale train station and even Georgian College, since part of this budget allocates $2 billion for college and university infrastructure upgrades. This budget is a win on numerous fronts.
I will quickly add one last point. The fund available for rinks will be a boon for Canadian communities that could not afford outdoor or artificial ice rinks. Barrie tried a few times, but the money was not available. Now communities like Barrie will be able to have that recreation. This is a tremendous budget for Canadians. It is going to make our communities stronger and I am excited to support it.