Mr. Speaker, I thank my colleague from Vancouver South for splitting her time with me. It is a pleasure to rise in the House today to speak in favour of our government's economic action plan. Allow me to start by quoting just one of the many positive assessments of our recent budget.
David Frum of the National Post wrote that under this Prime Minister, “...Canada can fairly claim to be the best-governed country among advanced democracies in the world” and that the recent “federal budget locks up Canada’s lead”. He explained that the world's major economies share a common economic problem. How do we nurture a fragile economic recovery while returning to a balanced budget?
In the United Kingdom we see the danger of moving too quickly: the economic recovery falters. In the United States we see the danger of moving too slowly: dangerous debt levels and the loss of the country's AAA credit rating. Canada has the pace just right. We are on track to balance the budget in the medium term. The Canadian economy continues to grow. In fact, Canada's economy has expanded in nine out of the last ten quarters. Since July 2009, the Canadian economy has created nearly 700,000 net new jobs, the strongest job growth record in the G7.
Contrary to the assertions by the members opposite, these employment gains have been in high quality jobs, with 90% in full-time positions, and over three-quarters in high-wage industries and in the private sector. For the first time in more than three decades Canada's unemployment rate is well below that of the United States.
Among major industrialized countries Canada has an enviable economic record. The world has taken notice. The World Economic Forum has ranked Canada's banking system as the soundest in the world for the fourth consecutive year. Forbes magazine ranked Canada number one in the world for business to grow and create jobs. Our economy outperforms our major trading partners. Canada is well ahead of other G7 countries in returning to balanced budgets. The International Monetary Fund projects that by 2016, Canada's total debt-to-GDP ratio will remain at about one-third of the G7 average and more than 20 percentage points below that of Germany, the G7 country with the next lowest ratio.
This afternoon I will speak to three reasons why I believe MPs should support our economic action plan.
First, the economic action plan continues our focus on creating jobs, growth and long-term prosperity for all Canadians.
Second, our action plan will ensure Canada's social programs are sustainable in the long term so that they will be there for future generations when we need them.
Third, we will return Canada to balanced budgets by achieving fair, balanced and moderate savings.
Our action plan proposes a number of measures to create jobs and opportunities for Canadians. I will focus on one measure, our responsible resource development initiative. Here are some important facts. In 2010, natural resource sectors employed over 760,000 workers. In the next 10 years, new investments of more than $500 billion are planned across Canada. The problem is that those who wish to invest in our country have been facing an increasingly complicated and cumbersome set of rules that add costs, delay projects and kill jobs.
In my home province of British Columbia, in the government's 2010 Speech from the Throne, it was noted that some $3 billion in provincially approved projects were “stranded in the mire of federal process and delay.” The B.C. Minister of Finance, Kevin Falcon said, “We have many projects on the table today that are in the billions of dollars that could have important ramifications for jobs and employment and revenues.”
There are numerous examples of economic opportunities missed and jobs lost due to needless bureaucratic duplication and red tape. I will provide one such example. There is a proposal to develop a 396 megawatt offshore wind energy project in Haida Gwaii in British Columbia. The proponent estimates that the project would have a capital investment of $1.6 billion and would create up to 200 construction jobs. The federal decision to approve the process came 16 months after the provincial decision.
Our action plan 2012 proposes to remove these impediments that are unnecessarily delaying responsible resource development and costing Canadians jobs.
The Conservative government would focus on four major areas to streamline the review process for major economic projects. We would make the review process for major projects more predictable and timely, we would reduce duplication and regulatory burden, we would strengthen environmental protection, which is very important to note, and in British Columbia, as across the rest of the country, it is very important that we would enhance our consultation with first nations people.
As has already been established, Canada's financial situation, compared to other advanced democracies in the world, is enviable. Our government is not content to rest on our laurels and ignore the challenges that will face Canada in the coming decades. Our action plan is proposing necessary changes to our retirement system to ensure that it will be there for all Canadians.
Here is the challenge that we will be facing in the not too distant future. In the 1970s, there were seven workers for every one person over the age of 65 collecting old age security. Today, there are four workers for every senior collecting OAS, and in 20 years the number will be only two. In addition, in 1970 life expectancy was age 69 for men and 76 for women. Today it is 79 for men and 83 for women. At the same time, Canada's birth rate is falling. Given these demographic changes and realities, the cost of the old age security system will grow from $38 billion in 2011 to $108 billion in 2030. This program is funded out of general revenue every year and this increase is simply unsustainable.
Our action plan 2012 would put the OAS program on a sustainable path by proposing legislation to raise the age of eligibility for OAS and GIS benefits gradually. The phase-in period would begin in April 2023 and it would not be fully implemented until January 2029. Let me be very clear. These proposals would not impact those currently collecting benefits or those nearing retirement. An 11-year notification period followed by a six-year phase-in period would ensure that individuals have significant advance notification to plan their retirement and make necessary adjustments.
At least 34 other countries are increasing the age of eligibility for their programs. They all realize that they need to ensure the sustainability of those programs for future generations. Our actions would ensure that OAS remains strong and is there for future generations when they need it and is available for all seniors today who are currently receiving the benefits.
Finally, our action plan 2012 would keep Canada on track to a balanced budget over the medium term. We would not raise taxes. Doing so kills jobs. We would not cut transfers to individuals, nor would we cut transfers to other levels of government for health care, education and social services, as was done by previous governments. Our government would return to balanced budgets while continuing sustainable increases in transfers for health, education and social programs. Federal transfers to my home province of British Columbia would total over $5.6 billion in 2012-13. This represents a 23% increase, over $1 billion more, than the province received from the former Liberal government.
Canada is a very blessed country. Due to the leadership of our Prime Minister and the Minister of Finance, our country has avoided the worst of the global economic storm and is on a sound financial footing. The measures I have discussed today—responsible resource development, long-term sustainability of our social programs and modest cost savings to return to a balanced budget—are part of our action plan that will create jobs, economic growth and prosperity for all Canadians.
I would ask all hon. members to join with our government and support economic action plan 2012.