Mr. Speaker, I am pleased to participate in the debate on Bill C-30, the budget implementation bill.
I have to say that some things never change. Obviously the opposition again does not like this budget and again fails to recognize the tremendous progress the government has made, particularly in the area of managing the nation's finances. We have had seven balanced budgets or better for the first time in Canadian history. It is unheard of.
This is the only government in the western world that is paying down the national debt, which colleagues across the way have again failed to acknowledge.
The fact is that the government has made it very clear that prudent financial management is critical and we have been able to do that with seven balanced budgets or better while still investing in the social foundations of this country: investing in families, in communities and in health care while making sure that our programs are cost effective.
However we do not hear these things from opposition members because they would say that if they were in power they would do it differently. They are absolutely right that they would do it differently. They would gut social programs.
They refer back to 1993 spending levels. I would remind our colleagues in the House of the fact that one-third of government spending in 1993 was borrowed money. We are not into borrowed money. We are making sure that we have the resources to enable us to move forward on programs that are important to Canadians. I do not like hearing about the 1993 levels because clearly it is a fallacy.
On this side of the House we have cut our credit card in half. We will not go on the basis of previous Conservative governments or, indeed, of previous Liberal governments. Over the last 10 or 11 years we have said that we would make sure the finances of the nation were well managed.
We are the envy of the western world. It is unheard of to have seven balanced budgets or better. We are the only G-7 country paying off its national debt.
We are also being prudent. We are making sure we have that contingency fund back. I would ask members to remember last year when we had everything from hurricanes to fires to SARS and yet we were able to respond effectively and not go back into the red. Again, that is extremely important.
We have established for the first time a target on debt reduction. Last year $3.5 billion was saved because of debt reduction. What did that mean for the average Canadian? It meant we were able to invest money in needed social programs and to respond to issues that came along, such as SARS, the forest fires in British Columbia, et cetera.
We put over $52 billion down on the national debt and we have now set a target of 25% of GDP within 10 years, which may in fact occur before that 10 years. We have made that commitment.
This government and the Prime Minister, who was able to wrestle with and eliminate the national deficit of $42.5 billion, have made that commitment. We cannot forget that it was the Prime Minister, when he was minister of finance, who said that he was going to do it and has done it. That is extremely important.
What is also important is that the Organisation for Economic Co-operation and Development has said that we are the only G-7 country that will ever be able to again balance the books and reduce the debt, not only this year but next year and the year after. Again, other countries are looking to Canada and asking how we have been able to do this so successfully. We have done it because we have listened to the needs of Canadians.
What is one of those needs? One obviously is health care. We have heard criticism from the opposition about health care. The fact is that although we are responsible for the five tenets of medicare, the implementation is done by the provinces. What has happened over the years is that we have had agreements. Last year, as members know, we had a $35.4 billion investment, again over five years. We then added this year another $2 billion. The Prime Minister has now made it very clear that incremental actions like that are not the way to go.
What has the Prime Minister said? He has said that this summer we will meet as first ministers and we will get a funding agreement for 10 years and structural change. We cannot have one without the other. We cannot continue to put money into health care without making sure that the waiting lists are reduced and that those people who need MRIs get them. We will not do that by simply giving the provinces more money without accountability.
Therefore the Prime Minister has committed the government and has committed to Canadians that we will have that in place. He has told the first ministers that it will not be over lunch or over dinner. He has asked them to bring their bags because they will be there until we get it. This is what Canadians have said they want, what we have said we will do and what we will do this summer.
This will not be an incremental change. We will make real changes that Canadians will see. They will be measured, which is absolutely critical, so that every family that has a person who is sick, who needs to have an MRI or who needs to go to an emergency facility in a hospital, those needs will be addressed properly. That is important.
On the issue of communities, let us look at the record of the government on cities, towns and villages in Canada. There has not been a government, except for this one, that has responded so strongly to that agenda. Dating back to 1993, the establishment of the national infrastructure programs over the years, the strategic infrastructure program and the fact that the government said that it would give a 10 year commitment with $1 billion as a downpayment. It was in last year's budget. This year we have reduced it down to five years because we know that municipal governments and the Federation of Canadian Municipalities have been asking for that for many years. As a former president, I can say that it was certainly welcome news that we would be addressing those issues because cities deal in 5 and 10 year capital forecasts.
We have also said that there was an unfairness in the fact that cities, towns and villages pay GST. Yes, we negotiated with the Mulroney Conservatives when they were in. They wanted us to pay 100%. We were not happy but eventually we negotiated a 57.14% rebate.
The Prime Minister has listened and now cities, towns and villages will receive 100% rebate on any purchases that involve the GST. Again, this has a significant impact. It will be $7 billion over the coming year. It is extremely important in terms of a savings. My own municipality believes that it will save between $500,000 and $1 million a year because of that.
The Prime Minister has gone further. He said that we will develop a clear, consultative role with cities, just as we do with provinces, to ensure that if there is to be federal legislation that could have an impact on our cities, which we must remember is where 80% of our population lives, we will bring them into the process and work with them.
The Prime Minister has committed a portion of the gas tax or an equivalent. We should not forget that the gas tax is not a simple issue because we need to have the provinces involved. He realizes the important role the cities play, particularly our large cities in terms of the urban agenda and of being able to promote economic growth. He also has not forgotten rural communities. This will improve the lives of all Canadians.
We have worked very effectively, whether it is on the homeless question or on the issue of dealing with infrastructure, transit or housing. We have been able to sit down and work collaboratively with the provinces and cities. That is extremely important because the Canada of 1867, where 6% of the population lived in an urban environment, is not the Canada today where 80% of the people live in urban areas. We need to address that. The government has and continues to focus on that as one of the most important issues. The budget addresses that.
I would have expected members on the other side to stand up and say that is what we need and that they support that. However, as I said at the beginning, the opposition never, no matter what budget it is, support the provisions.
It is important that we do this all within a strong fiscal framework. To have those strong fiscal anchors is absolutely imperative. No one in the House wants to work in a deficit position in their own household. I certainly do not and I know the government does not. That is so important and probably the cornerstone of any economic policy.
There are many other areas in the budget that address the needs of Canadians. We have listened very carefully to what Canadians were looking for and we responded accordingly.
Regardless of the rhetoric we hear across the way and regardless of the naysayers across the way, the fact is that again we have seven balanced budgets or better and we are the envy of the world. It is about time that side woke up and read the budget for a change instead of criticizing it.