Mr. Speaker, it is certainly a pleasure to speak on the budget today.
As the member for Parkdale—High Park indicated, certainly members on this side of the House consult with their constituencies. I did on the prebudget consultation. Quite clearly what came back from my constituency was the direction to essentially focus on the tax file and ensure that Canadians are able to keep more money for their hard work and to ensure the fiscal management we have provided over the last number of years is consistent and to also pay down debt.
The member for Elk Island often speaks of debt reduction. On a constant basis we do provide that continued reduction of the debt certainly on a debt to GDP ratio basis.
Today I would like to provide brief highlights in terms of the tax file. I would also like to deal with something specific that is in the budget, something which I and others in particular sectors have worked on. That is foreign trade zones, referred to as export distribution centres in the budget itself.
I will start with the tax file in terms of what we have been able to provide. We provided some structural changes to the tax file. The reindexing of the tax system is certainly critical. Canadians at the lower end of the income scale will certainly benefit from reindexation. We have provided a reduction in the middle bracket from 26% to 23%. We will move to 24% relatively quickly. We will essentially provide a cumulative amount of $58 billion of tax reduction over the next number of years.
Personal income taxes will be reduced on an average of 15%, and over 20% for Canadian families with children. We targeted the Canada child tax benefit. Most members know that it is the government's primary means of helping families. Some 90% of all children in Canada will receive benefits. Over the past three budgets we have invested a total of some $2 billion in this particular program.
Like the Minister of Finance, and I would suspect most members in the House, I believe that assisting families is not only the smart thing to do but it is the right thing to do.
We have heard some discussion about the transfers to the provinces. The budget transfers $2.5 billion in addition to the $11.5 billion. We should make it very clear as members get up over and over in the House, as the Minister of Finance got up in question period, that the additional $2.5 billion is not the last of our commitment to health care. The ministers of health from the provinces are getting together in May. They need to put together a plan that will deal with the health care challenges in the country. Once they do, and if in fact it does require additional funding, the Minister of Finance has already said very clearly that the national government is certainly going to be there with more money for health care.
As chair of the economic development committee in caucus, we are presently studying the electronic commerce and the new economy in Canada. For me in particular I was very pleased to see the announcements in the budget concerning e-business or e-commerce. Budget 2000 has put Canada in a stronger position to accelerate its leadership in the Internet economy and to encourage Internet investment.
In the papers this morning the managing director of the Boston Consulting Group of Canada commented on the budget. He is also the co-chair of the Canadian e-business opportunities round table. He commented, “It is encouraging to see government on-line emerge as a major priority in the budget. The government is dedicating serious money, $160 million over the next two years”. He went on to comment about the improvements where we have effectively reduced the capital gains tax by taking it from 75% and reducing it to an inclusion rate of two-thirds and also the new treatment of the stock options.
In terms of research, innovation and that sector of the economy, members are certainly aware that there is an additional $900 million put in place with respect to the Canada Foundation for Innovation. There is the funding of the century chairs for research excellence. All of these areas speak to the new economy and speak to the brain drain in a lot of ways. Researchers have said over and over again that it is research money and research grants that will allow them to do the work they need to do in Canada and to not exit the country. That is the kind of brainpower we want to keep here in our great country.
I am sure members are aware of the Federation of Canadian Municipalities and its proposal with respect to the quality of life program. The Minister of Finance has responded with an infrastructure program, a quality of life program that deals with road infrastructure and certainly deals with affordable housing as well.
In my constituency of Stoney Creek there are real demands to deal with road construction, road infrastructure, urban congestion and certainly to maintain the trade corridors that we have been fortunate enough to develop in the province of Ontario.
Let me spend a few moments on what we call the export distribution centres. When we talk about foreign trade zones many members certainly associate them with the United States. We in Canada have a geographic location which we need to take advantage of. We need to exploit it in fact. Our our proximity to Europe and to Asia is such that goods that are trying to access the North American market can flow through Canada. We can become a gateway to the North American market.
There are changes proposed in this budget that will facilitate and in a lot of ways create the logistics industry that has been lacking in this country. The changes proposed in this budget will allow Canadian companies and entrepreneurs to set up shop and attract European manufacturers who are looking to access the North American market. They will allow these Canadian entrepreneurs to add value, to set up shop and to deal with products as they flow through to the North American market.
We made some changes back in 1996. We dealt with bonded warehouses. We dealt with duty deferral programs. That was initially our response to foreign trade zones. We did not see it happen. We did not see foreign trade zones begin to flourish in this country. With the additional provisions in this budget we are now providing to independent Canadian companies expanded capabilities to handle goods for overseas manufacturers and to add Canadian value and content not only free of duty but also free of GST.
We are also able to attract foreign manufacturers who themselves can establish operations in Canada within a foreign trade zone to undertake this value added activity. What does it mean? It means jobs and additional revenue for us as a country.
A number of Canadian firms are already accessing this type of provision through U.S. foreign trade zones. We need to repatriate that type of opportunity. What does that mean? For communities like Vancouver, Winnipeg, Hamilton and Montreal right through to Gander, at locations like airports and ports where there is a natural infrastructure and a natural gateway to the North American market, it means that these areas can take advantage of this type of provision.
What does this really mean? The export distribution centres provision in budget 2000 presents an excellent opportunity for us as a country with respect to economic development. I mentioned some cities but that is only to name a few. We can challenge many others to deal with this export development opportunity.
We have a geographical advantage, as I have indicated. We are closer to Europe. We are closer to Asia. We need to take advantage of that. Combined with the announced tax cuts for small business, the general corporate tax cuts, the personal income taxes and the improvements in road infrastructure that will take place when we finally come to an agreement with the provinces and the regional municipalities, we are positioned with these provisions to grow a logistic sector and a value added sector in Canada. It will increase jobs. It will improve the opportunity for jobs right across the country, from Atlantic Canada to Ontario, right through to the western provinces and certainly in Quebec as well.
I urge hon. members to look for this provision in the budget and ensure that they go back to their communities and talk about it. It is a great opportunity for economic development.
