John Maloney

[Canada Pension Plan Investment Board Act, October 8th, 1997]

Mr. Speaker, I am pleased to be able to join in the debate on the Canada pension plan.

In February of this year the Liberal government acting with the provinces took the lead to place the Canada pension plan on a solid financial footing. The recent changes to the Canada pension plan will do two important things. It will secure its sustainability and will stabilize the contribution rates.

We should not forget that the plan is jointly managed by the federal and provincial governments, and changes can only be made to it if approved by two-thirds of the provinces representing two-thirds of the population. All provinces, with the exception of British Columbia and Saskatchewan, support the reforms. Yes, let us look at it. The reforms are supported by Newfoundland, Nova Scotia, New Brunswick, Prince Edward Island, Quebec, Ontario, Manitoba and Alberta.

The consultation process was very extensive. During the 33 sessions held in 18 cities throughout the country, more than 270 formal presentations were held to find out what Canadians thought should happen to their plan. Canadians had no hesitation. They asked to have the plan preserved, its finances strengthened and its investment practices improved.

Those who advocate scrapping the CPP and moving to a privatized system with mandatory retirement savings plans do not understand two things. First, Canadians want the CPP to remain. Second, the CPP provides protection not available through private RRSPs, such as disability benefits, provision for women of childbearing age and survivor and death benefits.

The CPP premiums are insurance premiums paid by working Canadians into a public pension plan from which they draw benefits when they retire. To insinuate otherwise by calling the rate increase in contributions a tax grab is misleading and confusing. The CPP revenues are not revenues of the Government of Canada. The fund is jointly administered by the federal and provincial governments for the benefit of citizens, not for the benefit of governments.

Critics who maintain that the CPP is an insufficient public pension plan conveniently forget that it is only one of three pillars of our retirement system. The old age security and guaranteed income supplement system and private retirement savings plans such as RRSPs are the other two pillars. Action has already been taken by this government to consolidate the OAS and GIS into what we call the proposed seniors benefit which is designed to help those most in need. Taken together, these systems provide a good balance of government and individual responsibility for retirement income security.

These changes in the CPP reflect the long held Liberal values of providing stability for and protecting those in need. It is a balanced approach.

Today the 5.85% legislated CPP contribution rate is shared equally between employees and employers. Contributions are levied on earnings between $3,500 and $35,800. Under the existing legislation, rates were to rise to 10.1% by the year 2016. Yes they were to rise to 10.1%, although people forget that. However the chief actuary of the CPP indicated that without these changes the CPP fund would be depleted by the year 2015 and contribution rates would have to increase to 14.2% by the year 2030 to cover escalating costs. Clearly the CPP was not sustainable and something had to be done.

The federal and provincial ministers agreed on a three part approach to restore the financial sustainability of the CPP and make it fair and affordable for future generations. They did this by moving to fuller funding by accelerating contribution rate increases now so they will not have to exceed 10% for future generations. We have come in at 9.9% They are improving the rate of return for the CPP fund by investing it prudently and by having a diversified portfolio of securities at an arm's length from the government. They are slowing the growth in costs by tightening the administration of benefits and changing the way some are calculated.

Speaking about fuller funding, when the CPP was introduced in 1966 it was financed as a pay as you go system. The prospects of rapid growth in real wages and labour force participation promised that the CPP could be sustained and remain affordable. As well, building up large reserves in a world of real low interest rates would not have been much help. The pay as you go CPP system made sense given those circumstances.

Since then however the slowdown in wages and workforce growth and higher real interest rates have completely changed the circumstances in which the CPP must be financed. The pay as you go financing is no longer fair, appropriate and possible. Building up a larger fund, fuller funding, and earning a higher rate of return through investment in the market will help pay for the rapidly growing cost that will occur once baby boomers begin to retire. Accordingly the CPP will move from a pay as you go financing system to fuller funding to build up substantially larger reserve of funds. The fund will grow in value from about two years of benefits currently to about four or five years of benefits.

Indeed contribution rates will rise in steps over the next six years from the current rate of 5.85% to 9.9% of contributory earnings and then remain steady, instead of rising to 14.2% by the year 2030 as projected by the chief actuary. In dollar terms an employee earning $35,800 a year now pays about $945 in annual contributions. In 2003 that employee will contribute about $1,635. This is $450 more than what is currently legislated for that year. However by 2030 an employee would be paying $565 less a year than if we had not acted now.

Increasing rates more rapidly now will cover the cost of each contributor's own benefits plus a uniform share of the unfunded burden that has built up. These costs will not be passed on to future generations.

At present the CPP has a fund equal to about two years of benefits. Funds not required immediately to pay benefits are invested in non-marketable provincial government securities. Provinces pay interest at the federal long term bond rate when the bonds are purchased.

Fuller funding of the CPP means that the fund will grow substantially from about two years of benefits to about four or five over the next two decades. A new investment policy is required to secure the best possible return for contributors. A higher investment return on the fund will keep contribution rates down.

Thus our ministers have agreed that the CPP funds will be invested in a diversified portfolio of securities in the best interests of contributors and beneficiaries, much like private sector plans. The fund will be managed professionally at arm's length from government by an investment board accountable to both the public and government through regular reports. The board will be subject to investment rules similar to other pension plan funds in Canada. The foreign property limits of the pension funds will also apply to the CPP fund.

When the provinces now borrow from the CPP, they will pay the same rate of interest that they do on their market borrowings. This is a very welcome step.

Let us review some of the changes to the benefits and their administration I indicated earlier. The formula for adjusting previous earnings in calculating retirement benefits will be based on the average of the year's maximum pensionable earnings over the last five years instead of the three currently, prior to starting the pension. The amount of the pension will continue to depend on how much and for how long a person contributes to that plan.

To be eligible for disability benefits, workers must show greater attachment to the labour force. They must have made CPP contributions on earnings over $3,500 in four of the last six years prior to becoming disabled. Prior to 1987 disabled coverage was available to those who had contributed for at least five of the last 10 years.

Retirement pensions for disability beneficiaries will be based on the maximum pensionable earnings at the time of disability and then fully price indexed to age 65. This measure is consistent with how other CPP benefits are calculated and will apply only to the people not yet over the age of 65.

The death benefit will be equal to six months of retirement benefits, up to a maximum of $2,500. Currently the maximum is set at 10%, $3,508 in 1997. The option of eliminating the benefit was rejected.

Stewardship and accountability was a concern that has been responded to. To improve stewardship for the CPP and provide for more accountability so that the sustainability of the CPP will no longer be at risk has been accomplished as follows. Federal-provincial reviews will be required every three years instead of every five. Any future improvements will be fully funded.

There have been criticisms to which I would like to respond. Some say these payroll taxes are job killers and why are we planning on increasing the CPP contributions by almost 70% over the next six years.

Governing is about making choices and sometimes these choices are difficult. If the CPP is going to be there for young generations, we have no choice but to start paying our way for the CPP now rather than passing on an insupportable burden to our children. As I pointed out, if we did nothing, CPP contributions would rise to 14.2% by the year 2030. We have held them to 9.9%. The increase in the contribution rate is being phased in over six years to minimize the impact on the labour market.

Unlike the CPP contributions that are a savings toward pensions, EI premiums are an additional payroll tax that finance current expenditures. We have also said that we will bring down the EI premiums as soon as and as fast as it makes sense, and we are doing that as well.

This legislation represents a significant step forward to fulfilling our commitment to a secure Canadian retirement income system. These changes will strengthen our pension system so it will continue to give Canadians the opportunity to build sufficient incomes for their retirement.

[Speech From The Throne, September 29th, 1997]

Mr. Speaker, Quebec is a fine province that we are proud to have as part of Canada. It is unique. It is different. We enjoy going there. We all have relatives there. In my area of Erie—Lincoln there are many French Canadian people who have family in Quebec.

However Quebec does not have the monopoly on the French culture. My area is one. St. Boniface is another and the Acadians in New Brunswick are another. There are areas throughout Canada. We respect the French factor in Canada, but Quebec is not the sole governance of that.

[Speech From The Throne, September 29th, 1997]

Mr. Speaker, I would like to take this opportunity to publicly acknowledge your appointment to the Chair. It certainly will be enlightening to have you there. I am sorry we have lost you as a member of the opposition to comment on our debates. You always had a very practical approach. We are very glad to see you as perhaps the first non-member of the government sitting in that position. It is a welcome and refreshing step.

In response to the member for Crowfoot, I agree there is too much violence in society, domestic violence and violent criminal activities. While I support the removal of conditional sentencing for violent offenders, I think it certainly has merit. We would have to examine it very closely, but I am inclined to agree with the member that a message has to be sent to the citizens of country that violence cannot be tolerated in any way, shape or form.

A tap on the wrist is insufficient for that type of behaviour. I would like to see the private member's bill I am sure the member will propose.

[Speech From The Throne, September 29th, 1997]

Mr. Speaker, on June 2 of this year I received a mandate from the people of Erie—Lincoln to represent their concerns in the House. I am honoured to have been given this responsibility by my constituents and I am proud to be the first member of Parliament for the riding of Erie—Lincoln.

I would like to take this opportunity to thank the people in the areas of the Niagara peninsula that supported me in 1993 and then became parts of new ridings due to redistribution. I enjoyed working with the warm people and progressive municipalities of the town of Pelham and Welland South. It was an honour to serve you. I have many fond memories of events I attended and friendships made.

The new riding of Erie—Lincoln brings in two fine new areas, the town of Dunnville and the town of Lincoln. The town of Dunnville is located on the Lake Erie shore and is dissected by the friendly Grand River. It is a picturesque community of greenhouses, mixed farming, light industry and most importantly, great people.

The town of Lincoln is located on the southerly shore of Lake Ontario in an area renowned for its tender fruit and vineyards and yes, great people as well. The excellent wines that are produced in the town of Lincoln are a testament to the unique micro climate found in the peninsula.

During my travels to the new areas of the riding I have been impressed by the number of small businesses that are actively exporting their products around the world. I welcome both communities to the Erie—Lincoln riding and look forward to representing them to the best of my ability.

The riding of Erie—Lincoln truly runs from lake to lake to river. It runs from the Niagara River and the American border at Fort Erie down the shore of Lake Erie to Port Colborne and Wainfleet and on to Dunnville, then up into West Lincoln to the heart of the peninsula and on to Lincoln on the shores of Lake Ontario. It is a wonderfully diverse and unique riding, a virtual microcosm of Canada. I look forward very much to working for my constituents in the upcoming mandate.

I would also like to take this opportunity, as I did in my maiden speech in January 1994 to thank my family, Sherrie, Megan, Patrick, Alanna, Andrew and Sarah, my parents and my siblings for their ongoing support and understanding. All those present in the House know of the sacrifices that an elected official must make and the toll that an election campaign and representation in Ottawa can take. My family cannot be thanked enough.

During the spring campaign and throughout the summer months the constituents of Erie—Lincoln delivered a very clear message that something must be done about unemployment. I was pleased to hear in the speech from the throne that “Stimulating job creation and economic growth has been, remains and will continue to be a major objective of the Government of Canada.” I applaud this initiative.

While the job creation figures are impressive, 947,000 jobs since October 1993, and while many of these jobs are well paying, full time jobs, in my riding where unemployment remains too high, this is little consolation. The government must continue to seek out the opportunities that will put Canadians back to work and which will put many young Canadians to work for the first time in productive and fulfilling jobs.

We must continue to look abroad to market our excellent competitive Canadian products. We must investigate partnerships with the private sector. We must break down interprovincial trade barriers. We must continue to cut the red tape for small businesses and entrepreneurs. Most of all we must continue to see the unemployment situation for what it is, a battle, a war that must be fought until every Canadian who wishes to work and can work is afforded that opportunity.

The fiscal course is set. The budget is to be balanced in 1998-99, a truly remarkable achievement that has earned the admiration of the world community.

I fully support the direction the government has pursued. As difficult as it was we implemented many necessary cuts, all the while keeping in mind the values Canadians hold dear, those values that set us apart from other nations. The government's values are clear: responsibility, compassion, fairness and respect.

I caution the government with the words written by a constituent. My constituent wrote “Canada is a country, not a corporation”.

We cannot be driven by the bottom line at the expense of the livelihood, dignity and welfare of Canadians. Unemployment strikes at the very essence of an individual, leaving him or her unable to provide for self or family. Families can be traumatized by joblessness whose lives are seriously affected, sometimes irreparably.

No level of unemployment is acceptable. I will continue to examine ways in which Erie—Lincoln can seize the opportunities available to it and shall have the same access to services and programs as large urban centres.

Many Canadians and Erie—Lincoln residents are concerned about the unity of our fine country. The large French Canadian population in my riding has close ties to Quebec. We believe that la belle province is a fundamental part of our Canadian heritage.

In the address the right hon. prime minister spoke of a disturbing study showing that Canadians knew very little about one another. I am convinced that an increased knowledge of the other would bring greater understanding to those who are ambivalent about Canadian unity. Despite language, race or religion the day to day concerns of Canadians are the same from coast to coast to coast: family, employment and the economy. We are all more alike than we may realize.

I embrace the desire to be innovative as we look at national unity. I commend the premiers and territorial leaders on the recent Calgary initiative. Oftentimes a fresh approach is required. At all times an open mind is required.

Children are our most precious resource. Some say they are our future, and I agree. I would also point out they are very much a part of our present. Throughout the past year as a member of the Standing Committee on Justice and Legal Affairs I was part of a group committed to studying the youth justice system. The message in what we heard rang loud and clear. The most effective way to stem youth crime is not always tougher sentencing, corporal or capital punishment, but by preventing young people from falling into a life riddled with criminal activity.

Moneys carefully spent on programs dealing with children from their prenatal period through their elementary school years is crucial to preventing young people from committing that first petty crime, a first crime that can lead very often to a lifetime of criminal behaviour and incarceration at enormous cost to Canada and Canadians.

There is little doubt in my mind after visiting with young offenders, police, judges and youth workers from coast to coast to coast that child poverty proves to be a major setback for many young children that may lead to learning difficulties, adaptation problems and potential criminal activity.

The government has acted by increasing the contribution for the Canada child tax benefit by $850 million per year with higher payments to begin July 1 of next year. It is a step toward the very necessary eradication of child poverty.

I was pleased to hear in the Speech from the Throne that the government is committed to working with provincial and territorial governments to develop a broader agenda for children including clear outcomes in measuring their success. Our children ask little of us. They want only to have strong support of families and safe communities in which to develop. This is the very least we owe them.

In my riding of Erie—Lincoln it was announced that all four hospitals would be either closed or their services downgraded substantially. This is unacceptable. Many of my constituents have very real concerns about the present state and future of our medicare system. They are worried the high quality of health care they have come to expect and deserve will not be there for them when they most need it.

We have responded to these concerns and will continue to respond as we must. The government is committed to providing a minimum transfer of $12.5 billion to the provinces and territories for health care. This increase will see the cash payment entitlements to the provinces and territories rise by $700 million in 1998-99 and $1.4 billion the year after.

With the nation's finances in good shape we will soon be in a position to make choices and investments that support this Canadian priority.

Also being examined are innovative ways to provide health care to an aging population that is on the whole healthier than the last generation and much more able to live at home for longer periods of time.

We are expanding home and community care, providing Canadians with better access to medically necessary drugs, and examining the quality and effectiveness of health care across the country through the health transition fund.

The government is also working hard to prevent the many diseases and illnesses that are very costly to treat once diagnosed. Funding for initiatives such as breast cancer, HIV and AIDS and tobacco reduction are key elements in the prevention strategy. We must work with the provinces to ensure universal and accessible health care is available for all Canadians, rural or urban.

It is no longer possible for an economically viable nation to live in isolation of world affairs and events. Canada has been renowned over the years for its contribution to peacekeeping efforts. As a country we believe in the values of collective responsibility as seen through our public pension system, publicly funded health care system and equalization payments.

As one of the have nations of the world we have a responsibility to the have nots to help them through conflict and struggle by providing some security for the innocent civilians and to help provide safe havens for refugees, hopefully contributing to a resolution that will see them return home.

These are all part of our responsibilities to our friends and neighbours around the world who through no fault of their own are not fortunate enough to have the stability and prosperity we find in Canada.

Canada is not only a peacekeeper. It is a peacemaker and a leader. From Lester B. Pearson in the 1950s to my hon. colleague, the Minister of Foreign Affairs, in his humanitarian efforts to rid the globe of the hideous and maiming land mines, Canada has shown itself to be an independent leader in this arena. December's conference in Ottawa will demonstrate again to the world the honesty and tenacity with which we tackle these controversial issues.

In conclusion, too often it is easy to talk about the negative or the work to be done, but I cannot help but to think that we as Canadians get too wrapped up in it. Canada is the best nation in the world to call home and we have that privilege.

Admittedly there will always be work to be done and the best can always get better. I am committed to working to make Canada a better place to live. My constituents and family provide much of the enthusiasm that fuels my efforts.

I welcome the new members of the House of Commons to this institution. To serve the public is perhaps a calling, definitely a right, and truly a responsibility we all have. I look forward to working with all my colleagues in a constructive fashion that will build on our successes as a country and will make Canada stronger than ever as it enters the new millennium.

[Petitions, September 26th, 1997]

Mr. Speaker, pursuant to Standing Order 36, I am pleased to rise on behalf of the constituents of Erie—Lincoln and Niagara Centre to present two petitions, both on the same subject.

The petitions call to the attention of parliament the fact that 38 percent of our national highway system is in disrepair. It also refers to the benefits of a national highway system such as job creation, economic development and, most important, the saving of lives and the avoidance of injuries.

The petitioners call on parliament to urge the federal government to join with the provincial governments to make the national highway system upgrading possible beginning in 1997, and I agree with these motions.

[Justice, April 8th, 1997]

Mr. Speaker, my question is for the Parliamentary Secretary to the Minister of National Revenue.

Over the last several months concerns have been expressed about an enforcement gap at our borders that allows drunk drivers, child abductors and other individuals suspected of criminal activities into Canada.

What is the government doing to apprehend suspected criminals and to prevent them from crossing our borders?

[The Budget, March 21st, 1997]

Mr. Speaker, child poverty is a family who does not have the necessities of life. Each week that family lives from pay cheque to pay cheque which is very little. They wonder where the milk money will come from or extra money, perhaps, for a school lunch. This is child poverty.

[The Budget, March 21st, 1997]

Mr. Speaker, I would like to thank the hon. member for his question. I appreciate the statistics that he has shown us this morning. Indeed, the deficit was $42 billion when we assumed office and it is now down to approximately $19 billion, truly a phenomenal reduction.

Interest rates have come down. Yes, it is from market forces but market forces are the result of stability in the economy and a feeling of confidence once again. All of this contributes to a vibrant and wonderful economic future.

Contingency plans? I think we hypothesize. We do not have a slush fund that we can worry about. We do not have to worry about it. This country is moving forward and moving forward fast. Of the G7, we have the best economy going and it is going to keep on going because of all the initiatives we have taken.

[The Budget, March 21st, 1997]

Mr. Speaker, it is an honour and pleasure to address the House this afternoon on the fourth budget of our mandate.

As with the case of our first three budgets, the good news continues. The fourth Liberal budget continues the plan of competent fiscal and economic management that is reducing the deficit. It creates a climate for jobs and economic growth in both the short and long term and ensures the long term future for effective sustainable social programs and investing in a stronger society through education, health and our children.

Our fourth budget announces that this year's deficit is the lowest in 15 years. It represents the largest ever year over year decline in the federal deficit. By 1998-99 we will no longer need to borrow new money from the financial markets and we will have the lowest deficit in the G7, a truly amazing economic turn around in four short years.

When we took office Canadians knew that tough decisions on fundamental reforms were required. They did not want tinkering. They wanted lasting solutions. They want us to develop a plan. They want us to stick to it. We have done just that. We are continuing the job with our fourth budget.

This budget is a plan for wise and thoughtful investment in Canada and Canadians. It is an investment in post-secondary education. It is an investment in a stronger society. It is an

investment in immediate jobs and growth. Allow me to address some of these points.

The annual costs of post-secondary education are truly astronomical; $10,000 to $12,000 a year for under graduate studies when all expenses are included. Canadians want and deserve the opportunity to equip themselves and their children with the knowledge, skills and education necessary to succeed an prosper in the global world; necessary for Canada to succeed and prosper in the global world.

The measures in the budget designed to ease the financial burden of post-secondary education are commendable. Let me deal with a few.

The budget provides assistance for parents saving for their children's education by amending registered education savings plans, or RESPs as they are commonly called. The full benefits of these tax sheltered plans are reaped by parents who start saving when their children are very young.

The budget proposes that annual contribution limits to RESPs be doubled to $4,000. This will assist parents who are not able to start saving for their children's education when they were young and therefore have fewer years to make contributions. It will also provide major incentives for increased savings for education.

Under current RESP provisions, all RESP income must go for education purposes. The family loses the investment income in its plan if their child does not pursue higher education. Since this can discourage parents from starting an RESP, two measures are proposed to address this problem.

First, individuals winding up an RESP will now be allowed to transfer all or part of their RESP income into their registered retirement savings plans, provided they have unused RRSP room. Alternatively, individuals without RRSP room or who do not wish to make RRSP contributions, will be allowed to change the investment directly, subject to an appropriate charge. This charge will ensure that assistance is not provided to those who might use RESPs for tax deferral purposes unrelated to either education or retirement savings.

This is a tremendous incentive for parents to save for their children's education. This is a tremendous relief for parents who are worried that they will not be able to afford the costs of their children's education.

To assist students currently enrolled in post-secondary education, the budget has further welcome news. The amount used to establish the education credit will increase immediately to $150 per month from $100 and to $200 for 1998 and subsequent years. The budget proposes to extend the tuition tax credit to mandatory fees set by post-secondary institutions to cover the costs of education although this will not include fees levied by student bodies.

To ensure that all students can use these credits fully they will now be allowed to carry forward all unused portions of these credits to be applied against any future income. This measure will also benefit workers who are returning to school.

Through the Canada student loans program the federal government provides financial assistance to students who need help to pursue post-secondary education. Often this is the only avenue that many students have to finance their higher education. The problem arises when our best and our brightest graduate with a heavy debt load but have difficulty obtaining immediate employment or are underemployed. Admittedly students facing hardship are allowed to defer making payments on their loans for up to 18 months. Notwithstanding, some students are still unable to meet their obligations.

To better recognize that some students still may not have the capacity to repay their loans, the budget will extend from 18 months to 30 months the period of time during which students are allowed to defer making payments. The government will pay the interest that the student would have paid over this extended period.

Combined with the initial six months after graduation when no payments are required, students will have up to three years of help in dealing with their loans. This measure will be effective August 1, 1997 and will provide an additional $20 million a year in assistance to students. These measures are investments in our greatest asset, our children.

The budget also reflects a strong investment in the health care of Canadians. Our publicly funded health care is studied and emulated by countries throughout the world. It is one of our finest achievements. We must be ever vigilant against those who would seek to destroy it.

The government is committed to the principles of the Canada Health Act. We must not only protect medicare but work with the provinces to improve it, to strengthen it, to respond to changing health needs and advances in medicine. We must ensure that our health care dollars are spent effectively and efficiently, but we must also ensure that our health care facilities, our hospitals, be kept open to serve our citizens. Canadians deserve not good health care, but excellent health care, the best health care the world has to offer.

In October 1994 the Prime Minister established the National Forum on Health to develop a vision of the health system that will meet the health needs of Canadians into the 21st century. In February 1997 the forum issued its report.

In response to the forum's report the government has acted and acted quickly. The 1997 budget provides $300 million over the next three years for additional health care initiatives. Each dollar of this new money will be devoted to improving the delivery of health

services to Canadians. We will provide $150 million for a health transition fund to help provinces launch pilot projects to investigate new and better approaches to health care. Projects could include, for example, better ways to provide medically necessary drugs and home care services. The assistance regarding expenditures will be made jointly by Canada's health ministers.

The national forum emphasized that health care providers need timely access to quality health information in order to provide the best possible care. We have allocated $50 million over three years to put in place a new Canada health information service. The national forum also spoke in favour of stronger community based programs and the need to invest in a healthy future for our children today. We agree.

We currently fund two community based programs directed at improving the health of children. The community action program for children supports hundreds of groups, for example, in providing parenting education, child development centres and family resource programs, all directed to addressing the needs of children at risk up to the age of six years. As a member of the justice committee, which has just completed a study of the Young Offenders Act, I can confirm that this is a very wise initiative.

The Canada prenatal nutrition program promotes the birth of healthy babies among high risk pregnant women. The 1997 budget increases funding for these two programs by $100 million over the next three years, money very well spent.

Time and time again we are told that our children are our most precious resource and I agree. Yet the country has too many children and their families living below the poverty line. This is not right and this is not acceptable. This must be changed and we must not stop until there is not one single child living in poverty.

The budget is one further step to this end as we propose to allocate $850 million to increase existing spending under the child tax benefit. This includes $600 million of new funds as of July 1998, in addition to the $250 million increase in child benefits announced in the 1996 budget. This initiative will require partnership with the provinces, a partnership on behalf of our nation's children. We will provide additional resources when we can afford it.

Why are we doing this? The reason is clear. I quote the Minister of Finance: "Opportunity denied in childhood too often means chances lost as an adult. The future of Canada's children is a future of this country itself". Nothing more needs to be said.

With the new Canada child tax benefit, provinces will have room to provide more services and benefits to children and low income working families. For example, in kind benefits such as medical or dental care that are now available only to welfare recipients could be extended to low income working families. Positive steps, positive developments and a positive budget.

As I conclude, I wish to point out that the government has set its priorities over the last four years and has stuck to them. It is continuing to bring down the deficit, to restore economic stability and vitality to the country by providing substantial new resources to invest in jobs, in health care, in education and in children. The journey is not over. We have come far and our vision will carry this country forward into the next millennium.

[Copyright Act, March 13th, 1997]

Madam Speaker, I also came in late. I guess the vote was moved up a bit. Had I been here I would have voted with my party as well.