Mr. Speaker, I am pleased to speak in support of the first budget tabled by the new Minister of Finance, and the government's seventh balanced budget in a row.
I want to take the opportunity to thank all members of my non-partisan community advisory council, representing all segments of my riding, for its valued support and input.
Budget 2004 demonstrates prudence and financial responsibility, something that members of my community advisory council called for during our annual prebudget consultation meeting earlier this year.
The budget begins to address the goals outlined in the throne speech and reflects the priorities of Canadians, with significant investments in public health, education, our communities and research and development, while maintaining a balanced budget and paying down the mortgage.
Contrary to what the NDP is telling Canadians, paying down the mortgage is extremely important not only because we cannot leave our children and grandchildren an unbearable debt burden that will choke their ability to deal with future challenges, but because the millions of dollars that we will save on servicing the debt can and will be reinvested in the priorities of Canadians.
This too is something that members of my community advisory council have repeated to me year after year.
Budget 2004 strengthens medicare by reconfirming the $2 billion investment in Canada's health care system, bringing to $36.8 billion the funding provided under the health accord. This translates into an extra $778 million in health funding for Ontario.
It provides an immediate investment of $665 million for the new Canada public health agency to be a national network for disease control and emergency response. This is on top of the $400 million that will be transferred to the provinces over the next three years to support a national immunization strategy and to reduce stresses on provincial health systems.
The budget is also providing support for families and children with the introduction of a new Canada learning bond, as well as other grants targeting students from low income families and students with disabilities. It also proposes speedier implementation of the multilateral framework on early learning and child care.
I am pleased to see that the Minister of Finance has acknowledged the hard work of our men and women serving with the Canadian military and police in high risk areas around the world, by exempting them from paying income tax.
I have spent time on the ground with and under the same living conditions as members of our military. I can tell members that they deserve this tax exemption not only for their service, but for their bravery and for the tremendous toll their absence takes on their families.
It is also important to recognize the additional resources being made available to support Canada's participation in peacekeeping missions in Afghanistan and Haiti, as well as the further $650 million for security issues and additional capital funding.
The implementation of the government's commitment to fully rebate the GST paid by municipalities is great news to my riding of Cambridge. For Ontario, the additional benefit to municipalities will be $243 million in the first year alone.
Coupled with this is an acceleration of the $1 billion municipal rural infrastructure fund, vital to North Dumfries township in my riding. This means that our cities will have $7 billion in available money over the next 10 years.
In my own riding of Cambridge, federal infrastructure support has gone to major projects like the University of Waterloo School of Architecture, as well as critical priorities like road improvements.
The $8 million infusion and the annual $10 million to the new horizons for seniors program is welcomed news. The goal is to keep seniors active in life by providing them with a wide range of community based projects and social activities.
Just yesterday, StatsCanada reported on the composite leading index, an early measurement of economic performance, which rose in February as manufacturing picked up.
Another news report yesterday in my riding of Cambridge and the region of Waterloo, known as Canada's technology triangle, reported a 20% increase in exports from 2000 to 2002. That is $10.7 billion worth of products. The regions of Cambridge and Waterloo made up 5.2% of Ontario's total exports and 2.7% of all Canadian exports in 2002.
Our economy has remained competitive while others have faltered because the government recognized long ago that Canadian businesses and workers must have the tools they need so that they can build a 21st century economy. That is why I welcome the support in budget 2004 to increase commercialization of the research conducted at our institutions of higher education.
Many companies in my riding, like those in the printing industry, will welcome the increase in the capital cost allowance rate for computer equipment to 45% and, in the rate of broadband, the Internet and other data network infrastructure equipment to 30%.
With one in six Ontario jobs directly or indirectly related to the auto sector, more so in my own riding of Cambridge, and with the changing patterns of auto investment, the announcement to work toward a national strategic framework for the Canadian auto sector in the 21st century is very important.
I want to thank the Minister of Industry, the Minister of Finance and the Prime Minister for listening to the members of the auto caucus, as well as the national caucus on the importance of the auto sector.
As the chair of the auto caucus, I am pleased that all those voices were heard before the budget was announced. The budget's emphasis on research and development, commercialization of research, and other initiatives will help support innovative work in the next generation of smart, fuel efficient, hybrid, and fuel cell vehicles and renewable fuels.
Let me provide some facts to the House on how important the auto sector is for the Canadian economy. In that sector we have presently 217,000 employees and they are employed in motor vehicle manufacturing, motor vehicle trailer manufacturing, and motor vehicle parts manufacturing. Of those, 97% are permanent workers. That sector's manufacturing GDP is 12% of Canada's total GDP.
Six assembly plants are located in Ontario and about 550 auto parts plants are located in Ontario, resulting in 97% of Canada's automotive production originating in Ontario. These facts are very important for many of us. That is why I am especially pleased that the auto sector is mentioned and that the Minister of Industry will take the next step in the very near future to fulfill the obligations that were mentioned in the budget.
This budget comes on the heels of a $1 billion investment to help Canadian farmers and beef producers, something extremely important to the agriculture sector in North Dumfries township of my riding.
Canadians recognize that unexpected challenges can and do arise and that the government must be prudent with its plans if it is going to be able to respond. That is why the Minister of Finance has emphasized fiscal responsibility and prudent planning.
The leader of the New Democratic Party thinks we should have spent more money. The leader of the former Canadian Alliance, now Conservative Party, said that we should give tax cuts and spend more money on health. However, they do not have an answer as to where they would get that money.
The government is investing in the priorities of Canadians in a moderate manner and that is what the people want. For the last 10 years, Canadians were telling us that we should be accountable as a government, that we should take care of finances, and balance our books. The opposition at that time, the Reform Party, promised that it would balance the books by the year 2000. We did it by the year 1998.
I have nothing to be ashamed of in being a member of the Liberal Party, a member on this side and a member of the team that listens to Canadians and balances our books. Even today, I am more proud to be a member on this side because I have full confidence that the present Prime Minister will listen to Canadians and respond responsibly.