Mr. Speaker, I wish to engage in some dialogue with the member for Peace River, but if that is not possible, I have quite a different perspective on this budget than he does.
One of the key themes of the budget clearly is not spending beyond our means. It is spending within our limits, ensuring that we do not go into deficit again. Those of us who have lived through that once do not want to have to go through it again: the cuts, the damage to programs and the impact on lives of people that were necessary to get us to the point of balanced and then surplus budgets.
There is no question that in recent months the issue of management of public money has been at the forefront of the public's mind. I would like to reflect on the history.
The member for Peace River talked about the need for fiscal prudence. The party for which he was originally elected, the Alliance Party, recently merged with the Conservative Party, a party that never could quite manage fiscal prudence.
I sat in the House in opposition through five Conservative budgets. Terrible cuts were made to programs and to the jobs with the promise that it would get the deficit under control. Well, the deficit did not get under control. That party kept adding more and more every year to the debt and more and more to the amount we were paying out in interest, leaving less and less for programs that were important to Canadians.
Let me contrast that five years up to 1993 with what happened since. We no longer have a deficit. We have begun paying off our debt to the tune of $52 billion. We are now paying $3.5 billion less in interest every year, leaving money available for things like health care, education of our young people and investment in research and our economic future. We now have low interest rates. We have low inflation. We have three million more Canadians working now than were employed in 1993.
We are the only G-7 country since September 11 that has managed not to return to deficit financing and adding to our debt. Notwithstanding the struggle to get to a much better fiscal situation for the country and establish a sound foundation for the future, we have been able, through two provincial agreements with the provinces and the territories, to put over $60 billion back into health care. That is in addition to the $2 billion added through this budget.
We have been able to start the first new national social program in a generation, the national child benefit. In the budget, notwithstanding new investments that are being made, we have been able to restore a contingency fund that has provided a cushion to ensure that unexpected circumstances, SARS and BSE through this past year, and unexpected downturns in what we think will be economic growth will not again force us into taking decisions that would put us back into deficit financing.
These are important accomplishments. They are the foundation on which this budget starts. Yes, it is a modest budget. People have criticized us for what we are not doing. However, the essential message of this budget is we will live within our means. We have a program. It was delivered in the Speech from the Throne, and we will deliver it as we can afford, as most Canadians do with their own personal and household budgets.
There has been much made of the fact that there are no tax reductions in this budget. May I remind Canadians and those in the House that we are in the fifth year of a five year tax reduction plan that has reduced taxes by $100 billion. In this year alone, personal income tax will be $22 billion less than it would have been had these changes not been made.
The member for Peace River spoke about the employment insurance fund. He seems to be unaware that every year employment insurance premiums have gone down. The reduction in employment insurance premiums this year alone is $15.2 billion.
Let me talk about what this tax reduction plan means for Canadians, particularly for Canadian families.
The actions taken on taxes since 2000 have removed one million low income Canadians from the tax roll completely. I make no apologies that our emphasis has been on low and modest income Canadians. For instance, a typical family of four, with one individual earning $40,000, will pay $2,000 less in annual net federal income tax, a saving of 60%, over what they would have paid this year had the changes not been made.
Full indexing of income tax brackets is something that has not happened for a number of years. For families with children, these changes have been especially important. In combination with the child tax benefit, for a family earning under $35,000, in general their child benefit exceeds any tax payable. This is not only an investment in the income of households. It is an investment in our children, especially those children living in families with the most modest incomes.
There is another important message in the budget. A sound economy depends on investing in our social infrastructure. A sound society depends on a solid economy. The two are interdependent. We cannot have one without the other, as the old song goes.
The budget continues some of the themes of the Speech from the Throne in firming up our social foundations. I am particularly pleased about the investments in children and in more early childhood programs. As a former teacher and as a mother, I know that a child's prospects for life are shaped in those first years before they begin school generally.
We are investing more in those early year initiatives, and we have already started in partnership with the provinces and territories. We are investing more in identifying children at risk at an early age so we can do the best to ensure that when they are finally school age, they will be able to benefit from the opportunities that education offers and to become productive citizens.
There are a number of measures in the budget for Canadians with disabilities, and that is extremely important. The proposal to focus on public health is vital to the long term sustainability of our health care system. We all know we face an aging population and increased health care costs. A smaller proportion of our population will be working and contributing through taxes. The initiatives in the budget to establish a chief public health officer for Canada and a Canada public health agency are vital.
I will admit that one reason this is happening now is because of the experience with SARS and the need to be better prepared to address unexpected epidemics. However, in my view the goal has got to be to promote a healthier population. Hopefully, what we do this year, by investing in a Canada public health agency, will lead us to focus on developing a healthier population and prevention programs. In the budget alone we provide money for immunization programs for children. By developing a healthier population, we will be able to reduce the burdens on our health care system and continue to offer fully publicly funded accessible health across Canada to every Canadian who needs it, not just to those who can afford it.
There is a fair bit in the budget as well about strengthening our economy. We all know how important research is to creating the knowledge on which our future prosperity depends. We also know, however, that a good proportion of research is done in Canada. It is excellent work, and it is something that the government has invested in quite generously. However, that research by and large is not getting developed and commercialized in Canada by Canadian companies to the benefit of Canadians and the Canadian economy.
One of the themes in the Speech from the Throne and one of the things on which we deliver in the budget are measures to help the commercialization of research in Canada.
My friend from Peace River made disparaging comments about the venture capital fund of $250 million. I am not sure though if he has talked to small and medium sized companies in his constituency or in his region about the difficulty they have in bringing their products to market or about the difficulty companies with bright new ideas have, in a country that does not have a huge market, in going that step from brilliant ideas, and the research that has gone into it, to getting them on the market. The investment in research can pay off in jobs and in prosperity for those companies and for their communities in which they are located, and for the Canadian economy.
I encourage the member to speak a little more to the companies in his riding and in his region about how important venture capital is. This is not just government money. This money is intended to leverage another $750 million in venture capital; in other words to generate a total of a billion dollars for investment in those companies.
There are a number of measures in the budget as well to assist small companies. Smaller companies still provide 80% of the jobs in Canada. There are measures to assist them by speeding up the increase in how much money can be earned before it becomes taxable, better access to the scientific research and development tax credit for small companies and a more economical tendering process for small and medium sized companies.
Finally, in the few minutes I have left I want to speak a bit about a subject that is important to me and to all my constituents. As I said earlier, the budget recognizes that a sound economy and a sound society are interdependent. It also recognizes we cannot have economic progress at the expense of our environment, that we have to invest in a way that is sustainable.
One of the key measures to be taken in terms of more responsible decision making is to incorporate environmental indicators into all decision making. That is a landmark decision that will change how government programs, decisions and legislation are founded. If we cannot breathe the air, drink the water and have clean soil in which to grow our food, and if we destroy the biodiversity of our planet, then we will be leaving a poorer future for our children.
The money we are putting into sustainable development technology in the budget is extremely important; investing in the technologies that will help solve our environmental problems, that will help prevent environmental problems so we can leave our children a better world.
Developing these technologies is a good economic investment because the world is looking for these technologies. It is a theme of mine often when I speak about this country that Canada does well in the world by doing good in the world and encouraging the development of sustainable development technologies, and a way to clean up or prevent damage to the environment is one of those.
Our Kyoto commitments are crucial because we are destroying the atmosphere on which life on this planet depends by our activities as human beings and particularly by our use of fossil fuels. The $3.7 billion we have already allocated for meeting our Kyoto commitment is vital.
What we have done in this budget, by committing an equal amount to clean up contaminated federal sites, is extremely important. I am particularly happy about the $500 million that has been set aside to share with others in the clean up of other sites that are not federal sites. This means we will leave many communities with a cleaner neighbourhood in which to live and less concerns about health problems. I only need to mention the Sydney tar ponds as the priority site for this funding and Canadians will know that this is an important initiative. We have left federally contaminated sites across our north and this fund will help clean up those sites.
Socially, environmentally and economically, I am proud to talk about the budget today and I am proud that this is the budget we have produced for Canadians.