Mr. Speaker, I commend my colleague from Oxford for his maiden speech. It was very well done and certainly very timely in this Chamber.
As I rise this afternoon to place some comments before this House with regard to the budget of the finance minister, I think that it is a credit to the people of Canada that they elected the government they did that keeps its promises.
Within four months every single item we proposed in the red book has been met or budgeted for. I can tell my constituents in Souris-Moose Mountain that there are no new taxes. For farmers and small business in my riding, it is good news. They were concerned over the $500,000 capital gains provision, that it not be touched.
For many farmers their farms are their pension plans. The exemption is a legitimate means of financial security. This budget is an investment in the future of Canada. It is fair, it is pragmatic and it is progressively oriented.
I was very pleased that agriculture was given careful consideration in this budget. Again the citizens of Souris-Moose Mountain are greatly affected by the agricultural industry. Every livelihood in our riding is affected by it.
It therefore pleases me very much to see that many programs affecting the industry were kept in place. The people of Souris-Moose Mountain are responsible and they are compassionate people. They want to contribute their share to this country, to the reduction of the deficit and to the development of our economy. They are willing to shoulder their share of the burden. However, they want to know that the contribution they make is handled responsibly by this government.
That is what pleases me about this budget. It is a balanced responsible approach to problems of the future. We are reducing the deficit while stimulating jobs. We are supporting those in need while closing loopholes and eliminating waste. We are putting our own house in order, just what my constituents asked us to do.
In that same spirit of co-operation and contribution my constituents are saying to me with respect to agriculture that they will make their contribution but we should handle things responsibly, guard the industry from disaster and collapse.
This budget is addressing those concerns. Although grants and contributions will see a 5 per cent across the board cut, essential agricultural insurance programs will not be affected. The gross revenue insurance plan, the net income stabilization account and crop insurance were exempted from these cuts. This is very good news for the people of my riding. They have been severely affected by circumstances far beyond their control in the field of agriculture. The exemption of these programs from the restraint measures is much needed and appreciated.
As well the finance minister has announced that there will be a study of the taxation of capital gains as it applies to small business and farmers. We have been given assurance by the minister that no changes will be made to the current exemption without the agreement of the farming community.
The grain farmers in my riding have one concern. That is with regard to cuts in the Western Grain Transportation Act. The report of the producer payment panel is still outstanding. The agriculture community would like to have a chance to agree on a new process before any cuts to this program are made.
With respect to the impact of the budget on growth and jobs, the budget provides funding for a number of programs mentioned in "Creating Opportunities" which will create jobs immediately and build the foundation for job creation in the future.
The infrastructure program is now being implemented and agreements have been signed with every province. Over the next three years the programs will create 50,000 to 65,000 new jobs. There are other initiatives in the budget that offer hope to young people. For example, the Canadian Youth Services program will put together a place where young Canadians get meaningful work experience and develop personal skills.
In addition, new youth internship programs will be developed with the province which will help to provide young people with alternative training.
It is important to note that there are no changes to the access to RRSPs for first time home buyers. That was a major concern to the people of my constituency and one that the budget delivers well on.
With respect to social programs, I am very pleased that the government intends to overhaul Canada's outdated social security system within two years. It will build bridges to work and support independence and not dependence. The budget calls for an investment of $800 million to test innovative new approaches to release Canadians from dependency and get them back to work.
As promised in the government's platform, the budget provided funding for the aboriginal head start program, a centre for excellence for women's health, the creation of the Canadian race relations foundation, the reinstatement of the law reform commission and the court challenges program and a prenatal program for low income pregnant women.
As an alderman and a former mayor of the city of Estevan, I have always believed in fiscal responsibility and fiscal restraint. This budget addresses both. For every dollar raised in new revenues, the government will cut $5 from government spending, resulting in a $23 billion cut over three years. The cancellation of the EH-101 helicopter added another $1.7 billion over three years.
In addition to focusing on fiscal restraint, we also have focused on budget loopholes. Through incentives we are going to bring together fairness to Canada's tax system.
The corporate income tax deduction for meals being reduced from 80 per cent to 50 per cent is a good direction to travel in. The $100,000 capital gains exemption which primarily benefits high income Canadians is eliminated immediately, another right direction.
The Liberal government promised to create jobs and to this end the budget addresses economic renewal. We encourage innovation and technology development and the government is supporting the vital small business. Canada's investment program, venture capital, and Canada's technology network program are excellent moves.
For years governments have promised more than they can deliver and delivered more than they can afford. We are confronting a deficit head on. In three years we will reduce that deficit from $45.7 billion to $32.7 billion. As a government committed to cutting expenditures, we intend as an example cutting $3 billion from government operations and putting on salary freezes.
Finally, with regard to UIC, the move from $3.07 to $3 will add $300 million for new investment by small business.
I want to assure this House and all Canadians that we will be taking home the gold. Never has so much been done by such a finance minister as the present Minister of Finance. I am pleased to stand here and support the budget this evening.