Mr. Speaker, it was in budget 2006 that the Minister of Finance actually brought in 40-year no-down-payment mortgages to Canada, and that had a significant effect. By the first half of 2008, over 50% of new mortgages issued in Canada were 40-year mortgages. His decision to introduce U.S. style loose money mortgages to Canada actually changed the culture of borrowing and lending in Canada.
Now we have record debt levels and a softening housing market, and Canadians are looking to the government for leadership. Budget 2013 will not help middle-class families who are struggling. Instead, the Minister of Finance's recent demand that banks increase mortgage prices will only make it harder for middle-class families to make ends meet.
I will give an example. Increasing the mortgage rate from 2.89% to 3.09%, which is exactly what the Minister of Finance asked Manulife to do, would actually cost someone with a $400,000 mortgage an extra $12,000 over the next five years. That is an extra $12,000 that a Canadian family would have to set aside and it would add an extra $12,000 to the profits of banks or financial institutions, simply because the Minister of Finance decided to meddle in mortgage prices, trying to undo the damage he did with his loose mortgage policies in his first budget.
Unlike the Conservatives, a Liberal government would never have jeopardized the economy and Canada's housing market with a risky mortgage scheme. Unlike the Conservatives, the Liberal Party and Liberal governments have a strong record of economic and fiscal competence. It was a Liberal government that turned a $43 billion deficit that it inherited from the previous government into nine consecutive budget surpluses and paid down more than $80 billion off the national debt.
Today, a Liberal government would prioritize measures that would kickstart the economy and help create jobs. Thanks to the hard work of the 1990s, the Government of Canada's finances are strong enough to allow some flexibility. We could support economic growth now and still balance the budget in the medium term. We could afford to freeze EI premiums in order to protect Canadian jobs.
We could afford to remove the 2% funding gap on post-secondary education for aboriginal Canadians. In fact, we cannot afford not to. Aboriginal Canadians represent not only the youngest and fastest growing population in Canada, they are also the most economically and socially disadvantaged. In fact, only a third of young aboriginals are graduating from high school, and that is why it is horrendous that the government has not devoted one penny in this budget to K-to-12 education for aboriginal youth.
A Liberal government would also end the Conservatives' wasteful and ineffective advertising campaign. The government's spending has exceeded half a billion dollars of Canadians' money on Conservative ads. We see economic action plan ads every night on TV, even during the most expensive airtime, such as NHL playoffs, Super Bowl and the Oscars. A Liberal government would introduce new rules to ensure that government advertising is non-partisan and provides real value for taxpayers' money.
There are some measures in budget 2013 that we have been calling for, and as such are willing to support. Last year, I tried to amend the budget bill to increase the maximum threshold for the hiring credit for small businesses from $10,000 to $15,000. We warned the government that continuing to freeze the threshold at $10,000 was punishing small businesses near that threshold and creating a perverse situation that encouraged them not to go over it and hire more people.
The Conservatives were too stubborn to support our amendment last year, but I am glad to see that it is in their proposal exactly as we proposed it a year ago. Freezing EI rates for all businesses would have been even better, but fixing the hiring credit for small business is better than nothing.
We have also been asking the government to listen to the manufacturing sector and extend the accelerated capital cost allowance for at least five years. The Conservatives have partially listened and extended the program for two years, which is better than nothing.
Last November, on the eve of Black Friday, my colleague from Cape Breton—Canso stood in this House and asked the Minister of Finance to reduce tariffs on hockey equipment. He asked the government to get rid of this $20 job-killing hockey tax, and we are pleased that the Minister of Finance has listened to the Liberal member for Cape Breton—Canso.
Despite these individual measures we cannot support the overall direction, or perhaps lack of direction, in budget 2013. Instead of delivering measures to kickstart the economy, the Conservatives are making short-term spending cuts their priority.
Instead of introducing a real plan to create jobs, budget 2013 would increase job-killing EI taxes, freeze money for training at 2007 levels and cut new funding for infrastructure.
Instead of cutting Conservative waste, the budget would devote even more money to advertising the government's economic action plan, with this year's television ad campaign beginning mere hours after the finance minister delivered his budget speech.
With this in mind, I move, seconded by the member for Winnipeg North, that the motion be further amended by adding the following:
That the amendment be amended by adding after the words “hospital parking” the following:
n) imposes three more job killing employment insurance tax hikes by 2016 taking an additional $4 billion out of the pockets of Canadians;
o) does not provide a dedicated waste water infrastructure fund to help municipalities meet the new federal waste water regulations;
p) fails to bring the provinces together to create a supplemental voluntary Canada Pension Plan;
q) downloads new costs onto the provinces and territories to pay for job training;
r) provides no new funding for critical water and waste water needs in First Nations communities;
s) fails to provide a comprehensive approach to addressing mental health needs of Canadians;
t) fails to expand the scope of the Last Post Fund to include post-Korean War Veterans;
u) fails to restore funding to the Department of Fisheries and Oceans for search and rescue;
v) fails to find the funding to keep open the Experimental Lakes Areas, the world renowned freshwater research facility;
w) fails to restore funding to the Interim Federal Health Program for refugee health care;
x) does not renew the critical Extended Employment Insurance Benefits Pilot Project; and
y) commits even more funding to wasteful partisan advertising.