Mr. Speaker, I believe in Canada, in Canadians, in our industries and in the budget. This budget positions us for the future and meets this moment. It protects Canada's sovereignty and safety, and it meets our global commitments. It is protecting and growing our economy. It is meeting our climate goals. It is building major projects, community infrastructure and homes. It is protecting important services and making life more affordable for Canadians.
More than 75% of our actions this year are to respond to significant global economic shifts. Protecting Canada's sovereignty and meeting our global commitments are critical. Canadian defence experts are very clear: There are several pressing challenges facing Canada, including immediate threats in the Arctic. As the assistant deputy minister Wendy Hadwen told the Standing Committee on Industry and Technology, “it's not peace time.”
We must meet Canada's 2% NATO commitment, and we must protect ourselves here at home. That is why we are making the largest investment in Canadian defence and security in decades, providing nearly $82 billion over five years to position our Canadian Armed Forces for success in an increasingly challenging environment.
At home, we are securing our borders and ensuring community safety by hiring 1,000 new RCMP officers and hiring 1,000 new CBSA officers. That defence spending is more than security; it is creating jobs for Canadian workers through our defence industrial strategy. It is catalyzing economic growth and innovation. It is strengthening our collective resilience and increasing the capacity and competitiveness of Canadian suppliers. This contributes to protecting Canada's economy.
Let us be very clear: We are in a trade war. Our largest trading partner is openly attacking key industries. It is creating a lot of uncertainty, and it is tough on Guelph families, where one in five families relies directly on a manufacturing job. We are the fourth-highest exporter to the U.S. per capita and one of the cities in Canada that are most vulnerable to tariffs. This government cares about those families. I do too. That is why I sit on the industry committee and chair the auto caucus.
Budget 2025 would help protect what we have. It helps us chart a course, a more resilient path forward, with $5 billion in supports for affected sectors to save jobs and industries, as well as the regional tariff response initiative to support tariff-affected businesses of all sizes in all affected sectors. Many Guelph businesses have already applied.
There is funding for expanding EI and work-share programs, with benefits and eligibility enhanced to provide additional support if people need it. It is true that Canadians would rather have a great job than expanded EI, but it is there if they need it, and so too is a new re-skilling package for up to 50,000 workers.
However, the key to more great jobs is to help Canadian businesses invest at home and attract foreign investment. We believe in Canadian business, so budget 2025 would introduce the productivity superdeduction, a new tax incentive to help businesses write off a larger share of capital investments immediately, making it easier to invest in machinery, technology, growth and clean tech. This 100% first-year writeoff for manufacturing or processing machinery and equipment is essential for Guelph manufacturers and food processors. They can immediately expense clean energy generation and energy conservation equipment, as well as zero-emission vehicles. This is great for our climate commitment and good for businesses to reduce their costs.
The productivity superdeduction brings Canada's effective tax rate to 5% lower than that of the U.S. and 12% lower than the G7 average. It gives our manufacturers and processors an exceptional advantage. The accelerated depreciation was a recommendation I heard when I held business round tables, and we heard it at the industry committee during our study on productivity.
To support those innovative businesses, budget 2025 also introduces the expansion and acceleration of the scientific research and experimental development tax credit, or SR&ED. It also opens more procurement pathways for small and medium-sized businesses, which constitute 98% of all employers in Canada.
This growth and innovation can be green. That is why we are also launching Canada's new climate competitive strategy. With clean economy investment tax credits, we can supercharge affordable net-zero energy projects, turning Canada's natural wealth into lasting prosperity while protecting the planet.
We are delivering the clean electricity investment tax credit to expand our clean power grid. We are enhancing tax credits for clean technologies, clean-tech manufacturing and carbon capture. We will also finalize enhanced methane regulations for the oil and gas sector and for landfills, update clean fuel regulations and mobilize capital for the transition to net zero through sustainable finance tools. These steps will cut emissions faster and give Canadian companies the certainty they need to invest in clean tech.
We can see the climate commitment through Canada's major projects, such as the wind west Atlantic energy project and the much-anticipated Alto high-speed rail from Toronto to Quebec City, which was a priority for Guelph's active transportation advocates at an event I attended earlier this fall.
Closer to home, budget 2025 would build homes and vital infrastructure, with an investment of $13 billion over five years. It will attract investment, focus on innovative construction. This could double the speed of construction, reduce costs and lower emissions. It will protect existing affordable housing through the Canada rental protection fund. It will provide $1 billion for transitional and supportive housing for people who are homeless and at risk of homelessness.
We have already met with supportive housing providers, such as Kendal, Wyndham House, the Guelph Community Health Centre, Stonehenge and Stepping Stone, and with the co-op housing sector to talk about opportunities. Guelph has very strong leadership in supportive housing and will no doubt have great projects to come.
Budget 2025 is about building stronger communities. As a former city councillor, I know how essential infrastructure is, and I know what that infrastructure backlog looks like, at least in Ontario. First, budget 2025 proposes $17 billion over 10 years to support provincial and territorial infrastructure projects and priorities. Second, and of vast interest nationally, $5 billion of that would go to a health infrastructure fund to help provinces and territories build and upgrade hospitals, emergency rooms, urgent care facilities and medical schools. Canadians have been asking for this. Third, we would create a direct delivery stream, with $6 billion over 10 years to support regionally significant projects, large building retrofits, climate adaptation and community infrastructure.
The Canada community-building fund will also provide nearly $28 billion over 10 years and $3 billion per year, ongoing, to support local infrastructure projects that make neighbourhoods vibrant and livable. I am already taking a lot of calls on that funding.
Members may ask, who is going to build these major projects, homes and infrastructure? We are investing in people, with $75 million over three years to expand a union training and innovation program, while creating workforce alliances to bring together employers, unions and industry groups. We are going to recognize international credentials faster. We are investing to attract the best talent in the world to our universities. We are investing in Canada summer jobs, the youth employment and skills strategy, the student work placement program and the youth climate corps. We are staying true to our values of being there for one another when times are tough.
The morning after the budget, I heard an economist on The Morning Edition describe the budget. He said that the language is honest and stark. He added that it is changing the direction of the ship without throwing anybody off. That is a brilliant analogy.
Budget 2025 would protect all the essential services that people rely on. We are adding the school nutrition program. We are making it permanent. We are cutting income taxes by 1%, eliminating the GST for first-time homebuyers on new homes under $1 million. It is ambitious; it is leadership, and we have the wherewithal to do it.
Budget 2025 is more than a fiscal plan. It is a blueprint for Canada to meet this moment. If members believe that we need to meet our NATO commitments and properly fund our military; that we have to protect our industries and support our workers during this trade war; that we need to boost productivity, attraction, growth and retention of Canadian business; that we need clean energy; that we need to do something about housing availability and affordability; that we urgently need more tradespeople; and that we need to protect our social programs, then they must support this budget. We are protecting our country, our economy, our planet and our people.