Mr. Speaker, I will be sharing my time with my hon. colleague from Elgin—Middlesex—London.
I am proud to speak in full and complete support of the government's budgetary measures. On behalf of my constituents I am also pleased to express their points of view on the budget. I have heard from many local residents in the month since the budget was first delivered on February 24 by the hon. Minister of Finance.
To me, families in rural Canada are the biggest winners in this budget, with $7 billion in tax cuts, $13 billion in debt reduction already this year and appropriate investments in health care and education. These are some of the items that my constituents have mentioned to me. I believe we are on the right track and must continue this course.
This budget is a balance between new spending and tax or debt reduction. The Minister of Finance has clearly accomplished that. For example, the elimination of the 3% income surtax for people earning under $50,000 and increasing the basic personal exemption are two measures that will reduce taxes for 90% of Canadians, especially low and middle income earners who form the vast majority of constituents in my riding of Lambton—Kent—Middlesex.
My riding is an assortment of small towns, villages and hamlets, with the two largest centres having populations of approximately 12,000. I was delighted to declare that rural and small town families are getting relief.
With the first balanced budget in 28 years and two more predicted to the year 2000, the Liberal government has targeted its efforts on the economic and social priorities that are important in my riding. These are items such as support for families with children, support for looking after ailing family members, increased access to knowledge and skills with more money for rural Internet access, help for small business owners to hire young people, and to enable them to deduct their own dental and health insurance.
As the Minister of Finance and the Prime Minister have stated, Canada has cut up its credit card. The era of overspending is behind us forever. I know that my constituents are breathing a sigh of relief. They want their hard-earned tax dollars to be spent wisely and prudently. People should expect nothing less from their government. We are delivering and will continue to do so.
As well, our goal is to put the horrendous national debt on a permanent downward track. Last year it dropped for the first time in a generation with more reductions to come to preserve our financial future as a country.
More help for families came in the form of an enriched child tax benefit. The 1997 budget allocated $850 million to the benefit. This year we will increase that by another $850 million over the next few years.
To help working Canadians with children, we will increase the child care deduction limit from $5,000 to $7,000 for children under the age of seven, and from $3,000 to $4,000 for children between the ages of seven and sixteen. This will assist about 65,000 Canadian families with children. It is yet another piece of good news from the budget.
Small business is the backbone of my riding. Entrepreneurs, service providers, corner stores, farm implements dealers and the farmers are all involved in our communities and make a positive economic impact.
If a small business hires someone between the ages of 18 and 24 in 1999 or 2000, their employment insurance premiums will be reduced to zero for those new hires. This will reduce payroll costs for the employers by $100 million a year. This is on top of the EI rate reductions announced in January. Both these actions could reduce payroll costs by $1.4 billion.
To improve equity in the tax treatment of self-employed Canadians, all owner operators of businesses will be able to deduct premiums for health and dental insurance against their business incomes. This is certainly an excellent step forward. In addition, the federal government will benefit the nearly 500 volunteer firefighters in Lambton county and the many more in Kent and Middlesex which are in my riding.
The tax free allowance has been doubled from $500 to $1,000. Mr. Don Crocker, Moore township's fire chief and Lambton county's fire co-ordinator, says: “It is a big deal for them, a big impact for the volunteers, manning the county's 20 primary rural Lambton stations. It is a big plus for volunteers. They are spending an awful lot of time and getting very little for it. I think it is wonderful”.
There are nearly 22,000 volunteer firefighters in the province of Ontario, so we can plainly see this budget is positive for rural Canada.
Camalachie fire chief Gerry Dochstader can attest to the low wages paid to volunteers. Some are paid on a points system, others get compensation from their municipality. The extra tax deduction will help, he says, in a February 26 article in the Sarnia Observer : “It is like compensation for the wear and tear of your car, tearing down to the fire station at 3 o'clock in the morning, whipping out on Sunday calls while still in your good clothes. For what we ask the rural firefighters they are given very, very little in return”.
The tax allowance covers the cost of clothes damaged in fires, special equipment, steel toed boots and other expenses they incur as volunteer emergency workers.
Many of Canada's important industries such as agriculture are based in rural communities. These primary industries account for almost half of Canada's exports. My riding includes some of the best dairy farmers in Ontario. Kent County is the number one corn growing region in the country and Middlesex is home to chicken, egg, beef and pork producers. Agriculture is the lifeblood of my riding and of southwestern Ontario.
The 1998 budget confirms the four year $20 million Canadian rural partnership initiative. This will support innovative programs to help rural Canadians find community solutions to challenges such as maintaining good soil and water and charting a successful course in a rapidly changing economy.
In addition, $30 million over three years has been provided to an expanded community access program. This excellent program will provide an Internet connection for virtually every community with 400 or more residents by the end of the year 2000.
I was pleased to recently announce on behalf of the Minister of Industry up to $15,000 in Internet funding for several libraries in my riding. I am confident that all of them will be hooked up to the information highway very soon.
Children and adults alike are using the services provided and I have heard nothing but great reviews.
Rural communities will also benefit from the $50 million capital injection in the Farm Credit Corporation announced in the 1997 budget. These additional funds will be used to encourage economic growth and diversification.
With fiscal discipline, targeted tax reductions and strategic investments, the 1998 budget is working for rural Canadians and all Canadians.
The budget marks a significant accomplishment for Canada. Tough fiscal control has gotten us this far, and we are not about to let up. Spending must continue to be constrained and federal spending has dropped to its lowest level in 50 years relative to the GDP. For the first time in half a century the Minister of Finance will be produce three consecutive balanced budgets, a remarkable symbol of financial stability on the world markets.
I am proud to be a part of the building of Canada and Lambton—Kent—Middlesex for the 21st century. We will lead all industrialized nations in economic growth this year and next. We can finally look forward to the future with renewed hope and optimism.