Madam Speaker, I am pleased to have the opportunity to speak in favour of Bill C-73 and to express my thoughts on the budget delivered by the finance minister on February 27.
I will make a short response to the comments made by the Bloc Quebecois and the Reform Party in debate. It is worth recalling the climate or the mood in the country before the budget was brought down on February 27 and the political instability posed by the possibility of Quebec separation, which continues to be a problem.
The BQ complains that we cut too much and that we singled out Quebec for the cuts. The Reform Party claims we did not cut enough and that we were unfair to western Canada. If Bob Rae, the New Democratic premier of Ontario, had his say, he would tell us the budget was unfair to Ontario.
These three groups were disappointed by what happened in the budget. The BQ is disappointed because the budget is no help to it in the upcoming referendum, where it will destroy Canada as we know it, as well as the economy of Quebec. The Reform Party found that its tax revolt did not materialize. The Reform Party has been doing its best to add a couple of percentage points
to borrowing costs by forever preaching that our fiscal situation is not sound. As for Bob Rae, he is also disappointed because he does not have a launching pad for the election in Ontario.
The finance minister is putting Canada's fiscal house in order. The budget outlines concrete measures for real deficit reduction and fulfils commitments made by the Liberal Party during the election campaign. The government had to make difficult decisions in the budget process. The Kitchener-Waterloo Record from my community said the budget showed how tough it is to eliminate the deficit. The budget is tough but it is also fair. Everyone must share the burden of deficit reduction.
The Minister of Finance has worked hard to ensure that spending reductions are balanced evenly in all regions. The government's deficit targets are reasonable and achievable. The Reform Party should learn from the lessons of previous governments. We cannot balance the budget with unrealistic deficit targets.
Over the last few months I have spoken to many constituents about what they wanted in the budget. They wanted the government to reduce the deficit through spending cuts and not through tax increases to the average citizen; do not tax health or dental plan benefits; do not tax RRSP contributions; increase taxes on large and profitable corporations; make the public service more efficient and effective; eliminate the waste of hard earned tax dollars.
The budget shows the government has listened to the concerns of ordinary citizens. The Minister of Finance has focused his efforts on spending cuts. He recognizes the heavy tax burden borne by average Canadians. The minister has not raised personal income tax rates and has not taxed health or dental plan benefits. For most Canadians the RRSP contribution limit has not changed. The budget also makes taxation more equitable. Large corporations will pay their fair share of taxes. The profitable banks will pay a new temporary tax. The taxation of family trusts will be tightened. Individuals will no longer be able to defer tax on business or professional income.
The Minister of Finance has also made a commitment to reduce the size of government and eliminate unnecessary expenditures. The minister has said a basic philosophy of program review was the federal government should not be doing what someone else can do better.
I urge the government to stop the military's rip off of taxpayers' dollars by inefficient management of government moves. The government should implement its own reports and contract out move management, as was recommended by so many of the government's committees.
The government has consolidated its transfers to the provinces for health, post-secondary education and social assistance. The new Canada social transfers will be more effective and more sustainable than the old program funding. The CST will mean a drop of about 3 per cent of provincial revenues. However, it will also give the provinces more flexibility to structure and innovate their social programs.
This small change in funding to the provinces will not affect medicare. The federal government will still enforce national standards for health care. Medicare will continue to be universal, comprehensive, portable and accessible.
The government has protected the average senior citizen with full indexation to protect them from inflation and old age security on the basis of family income.
Education is an important concern to my constituents. The riding of Waterloo includes the campus of Conestoga College and two of Canada's leading universities, the University of Waterloo and Wilfrid Laurier University. The concentration of post-secondary students in the Waterloo region is the highest in the country.
Post-secondary institutions have played a crucial role in my community's economy. The residence of the Waterloo riding are proud of Canada's record of excellence in post-secondary education. They also know our education system must continue to develop in order to meet the challenges of the next century.
I am pleased the government has reaffirmed its commitment to our internationally renowned system of higher education. We need to ensure our post-secondary institutions are accessible to our youth who must compete in the international marketplace. We must maintain accessibility through the income contingent loan repayment scheme.
The University of Waterloo and Wilfrid Laurier University are renowned for excellence in research. Because of their efforts the Waterloo area has become a breeding ground for entrepreneurs and information technology.
Waterloo riding is home to 125 export oriented information technology companies. These companies have revenues of more than $600 million annually and employ 5,500 people in knowledge based jobs. By the year 2000 they project that 25,000 to 30,000 people in the Waterloo region will be working in the area of information technology.
It is imperative when we talk about wealth generation that we recognize our post-secondary institutions are vital to this effort. The government must make a strategic long term investment in wealth creation through research funding. The government has worked hard to limit the cuts to research and development. This is not enough. I encourage the Minister of Finance to do everything possible in these difficult times to continue to fund vital research that will help us compete in the next century.
My constituents and all Canadians demanded a fair and equitable budget. This is what the government has delivered.
There is an area in the budget on which I must express a bit of personal disappointment, the budget of the Solicitor General. That is one area which was not cut. There was a slight increase.
I am concerned that there is more and more push in the climate of the House for longer sentences and putting more people in jail. This is a waste of resources. It costs much more to keep somebody in a federal penitentiary than to put somebody through a Ph.D. program. There are far too many people serving time in jail for non-violent crimes.
There are much better ways of dealing with that. I hope in this session we will start working toward that and start implementing some programs we have talked about in the House such as crime prevention and community safety. We know every dollar we spend on prevention results in savings of $5 to $6 at the end of the line and we are not wasting the money on penitentiaries.
Last year Canada once again was declared the best country in the world in which to live. The job we in the House have, not just the Liberals but all parties, is to make sure Canadians from coast to coast and in every province enjoy that kind of lifestyle in the future.