Mr. Speaker, I will advise the House that I will be splitting my time with the member for Central Nova.
It is a pleasure to rise in the House today to speak to how the Government of Canada is building a strong middle class and a strong economy for Canadians. Before I talk about the Canadian economy, let me begin with a few words about the global economy.
After roughly six years of lacklustre performance, global economic growth is expected to strengthen in the near term. However, the recovery and pace of growth since the global financial crisis has been slow in many corners of the world. Rising inequalities, an aging population, and rapid technological changes have become the defining policy challenges of our time. Coupling those challenges with the anxiety felt by families around the world and their concern for their children's futures has fuelled a very powerful movement. People are looking at the pace of technological changes and the need for new skills, and are undoubtedly anxious about the future. It is hard to feel confident and face every day with optimism, when we cannot see what is just around the corner.
In Canada, we have chosen to meet these challenges head-on with a positive and generous response.
We are doing what confident countries do: investing in people and in our future. The Government of Canada has an ambitious plan that involves making smart investments to create good middle-class jobs; build modern, more resilient neighbourhoods and communities; grow the economy; and provide more opportunities for all Canadians. We know that when we have an economy that works for the middle class, we have a country that works for everyone.
That is why, when our government first took office in late 2015, we immediately implemented measures to strengthen the middle class.
We began by asking the wealthiest 1% to pay a little more so that we could lower taxes for the middle class.
We then implemented the new Canada child benefit, which, compared to the old system of child benefits, is simpler, more generous, and better targeted to help those who need it most.
We then signed a historic agreement with the provinces to help people live with more dignity in retirement by strengthening the Canada pension plan.
We did even more to support Canadian families by committing to invest $6 billion over 10 years in home care and $5 billion over 10 years to support mental health initiatives.
In short, we have taken the necessary first steps to give back to the middle class. We have done this by making Canadians our first priority and by making the types of investments that will promote their talents, improve their communities, and ensure the long-term growth of our economy.
The action taken by the government, such as cutting taxes for the middle class and introducing the Canada child benefit, has played a major role in supporting household spending.
Canada’s economy saw 3.7% economic growth in the first quarter of 2017, which is very interesting. The unemployment rate continues to drop. It is now around 6.6%, compared to 7% early in our term in fall 2015. Since then, Canada’s economy has created about 350,000 new jobs. That is an impressive number.
This is all very encouraging. However, we remain vigilant and are fully aware that a lot of work remains to be done.
We will continue to focus on sustainable growth, better-paying jobs, greater opportunities for the middle class, and greater prosperity for future generations.
We are doing this by getting people ready for jobs of today, but also for the jobs of tomorrow. We call it our innovation and skills plan. To ensure that skills training effectively helps unemployed and underemployed Canadians get good jobs, budget 2017 significantly boosts federal support through labour market transfer agreements with provinces and territories by an amount of $2.7 billion over six years.
For Canadians looking for work, this means more opportunities to upgrade their skills, gain experience, or get help to start their own business. It also means more support like employment counselling to help them plan their careers.
For Canadians who have lost their jobs, we will make it easier for employment insurance claimants to pursue self-funded training, while remaining eligible for their benefits.
For Canadians going back to school for retraining, budget 2017 will expand eligibility for student financial assistance so each year an additional 10,000 part-time students and a further 13,000 students with dependent children can get the financial help they need to pursue post-secondary education.
This comprehensive set of skills and training measures will help Canadians at every stage of their career make Canada's greatest resource, our people, even greater.
Also part of the plan, the new venture capital catalyst initiative, will increase late-stage venture capital available to Canadian entrepreneurs. With funds leveraged from the private sector and depending on the proposals received, this investment could inject around $1.5 billion into Canada's innovation capital market. A strong investment culture coupled with free trade agreements are a critical component to creating good, well-paying jobs and substantial economic growth.
Over the past year and a half, Canada has strengthened its relationship with its top five trading partners: the United States, Mexico, China, Japan, and the European Union. The work continues.
Our government was elected to help the middle class and those working hard to join it. There are positive signs throughout the economy that show that our plan is working. Canada is in the best fiscal position among G7 countries, and the federal debt-to-GDP ratio is expected to remain low.
In the first quarter of 2017, the Canadian economy had a 3.7% growth. In the past six months, the Canadian economy has more than 250,000 new, full-time jobs.
Lastly, the Government of Canada will continue to concentrate on making sound and necessary investments in Canadians, our communities, and our economy. These investments will strengthen long-term growth and will build a solid middle class and a more promising future for all Canadians.