Mr. Speaker, I appreciate this opportunity to speak to the motion by the hon. member for Beaches—East York.
There has been much criticism regarding the cuts to government expenditures announced this week. Hon. members from across the floor have attacked these measures as unfairly targeting certain groups, including women, women's programs and services. This is not true. The spending decisions were fair and distributed broadly over a number of program areas. They were aimed at improving efficiency and getting value for money.
Don Drummond, chief economist of TD Bank, predicted that Canada's new government would face baseless, unfounded criticism when he said, “critics charge the choice of spending cuts was “political”. This is utter silliness”.
We are focusing on our priorities and getting value for money for Canadian taxpayers, for Canadian women.
I ask all hon. members, what could be more of a priority than our children? Without a doubt, they represent the future of our country and we must provide them with every opportunity to succeed. Canada's new government recognizes that one of the most important investments a government can make is to support families as they raise their children. We have taken quick and decisive action to help those families, as promised in the last campaign.
Strong families are the cornerstone of a sound and prosperous society and are key to ensuring a bright future for Canada. Canada's new government knows that no two families are alike and that parents, not the government, are in the best position to make the right choices for their children.
We also recognize that Canadian families are changing and facing many new challenges. Work arrangements for both men and women are more complex and varied than ever before. In particular, families with young children must strike a difficult balance between work and family life. Any of my hon. colleagues with young children, and I look at you, Mr. Speaker, as I make that statement, are very aware that the availability of quality child care is a challenge for many working parents.
In budget 2006 Canada's new government helped these families by offering them a real choice in child care. Just look at what we did.
Budget 2006 introduced the new universal child care benefit. Starting this past July 1, Canada Day, this new benefit provides all families with $100 per month for each child under the age of six. That has been warmly received in Palliser. This benefit helps parents to choose the child care option that best suits their family's needs. That could be in formal child care, informal child care through neighbours or relatives or by a parent staying at home. The most important point is that parents and women and men now have a choice.
The universal child care benefit is, as the name implies, available to all families. However, and in response to the hon. member's motion, it will provide direct financial support to low income families with young children without reducing the federal income tested benefits such as the Canada child tax benefit and the national child benefit supplement for low and middle income families. As I have just outlined, the universal child care benefit illustrates how Canada's new government has chosen to focus on the priorities of Canadians.
What about low income Canadians and seniors? One of the priorities for this new government was to reduce taxes for Canadians. Our first tax reduction, as promised, was the reduction in the GST from 7% to 6%. This is a real tax cut for all Canadians, a tax cut that people can see in action whenever they buy something. This tax cut will save all Canadians money every time they go to the store. This will benefit all Canadians by almost $9 billion over two years, even those who do not pay income tax.
The GST cut is an important step in the right direction, but it is only one part of the government's plan to reduce taxes. In every way that the government takes money from Canadians, under Canada's new government, it will take less of it. That is a great news story for all Canadians. That is why budget 2006 reduced personal income taxes for all taxpayers. In fact, over 90% of the tax savings in this budget will go to individual Canadians and their families.
Our tax cut plan leaves substantially more money in the pockets of Canadians than the previous government's proposals. In fact, about 655,000 Canadians, many of them senior women, will be removed from the tax rolls entirely. Also for Canada's seniors, budget 2006 doubled to $2,000 the maximum amount of eligible pension income that can be claimed under the pension income credit. Effective for the 2006 and subsequent taxation years, this measure will benefit nearly 2.7 million taxpayers receiving eligible pension income, providing up to $155 per year, per pensioner, and will remove approximately 85,000 pensioners from the tax rolls.
Canada's new government recognizes the difficulties faced by Canadians with a disability. That is why in budget 2006 we fully implemented the recommendations of the technical advisory committee on tax measures for persons with disabilities, which was established to provide advice on tax measures for persons with disabilities.
We went beyond the committee's recommendations. For example, in the new government's first budget we increased the maximum annual child disability benefit effective July 2006. This benefit is a supplement of the Canadian child tax benefit for children in low and modest income families who meet the eligibility criteria for the disability tax credit. Effective July 2006, the budget extended eligibility for the child disability benefit to middle and higher income families caring for a child who was eligible for the disability tax credit, including virtually all families that are currently eligible for the Canada child tax base benefit.
Budget 2006 also increased the maximum amount of the refundable medical expense supplement for the 2006 taxation year. This supplement improves work incentives for Canadians with disabilities, by helping to offset the loss of coverage for medical and disability related expenses under social assistance when recipients move into the labour force.
In addition, the new government understands that parents are concerned with how best to ensure the financial security of a child with a severe disability when they are no longer able to provide support. That is why the Minister of Finance has appointed an expert panel to examine ways to help parents save for the long term financial security of a child with a severe disability. The panel has been asked to report its recommendations to the minister by November 9.
Canada's new government has taken real action to help those in our society who need help the most. We have moved to help families with children by providing choice in child care. We have moved to reduce taxes. We have moved to support Canadians with disabilities. The list goes on.
The new government has also taken action on very important issues of concern to all Canadians, aboriginal, immigrant, student issues, all of which include women.
In short, the expenditure cuts announced this week will help eliminate wasteful spending and allow Canada's new government to keep moving ahead, ensuring a strong and prosperous future for Canada. All the money that the government will spend will have to meet the criteria tests. It will have to meet two standards. It has to provide value for money and produce results for Canadians.
I am very proud to be part of this government that sticks by that creed. The finance minister brought in a fantastic budget. We are not only standing firmly behind Canadian women, that is very clear, but all Canadians.
