Mr. Speaker, I will be sharing my time today with my hon. friend, the member of Parliament for Don Valley West, who is particularly well suited, and I think very keen, to speak to the budget.
I would like to begin by complimenting our outstanding Minister of Finance, my neighbour and the member of Parliament for Whitby—Oshawa, on the latest budget. He and his team have once again set an extremely high standard. By continuing to look a little ahead, he is following the example of Sir John A's great finance ministers, Alexander Galt and Sir John Rose, Hincks, Tilley and Sir George Foster, who looked to the whole world for Canada's economic opportunity. By putting responsible resource development, manufacturing and innovation front and centre in successive budgets, they have articulated a truly national policy for the 21st century.
I would like to speak briefly today about four issues: debt, jobs, markets and the future.
Let us be clear from the start: as the minister said, the past seven years have belonged to Canada, from the performance of our troops in Panjwai, Afghanistan, in 2006, to the G20 summit in Toronto, in 2010, where worldwide fiscal consolidation was on the agenda. That is when the world started to see Canada in a different light. At the height of the crisis, the world turned to Canada for its economic leadership. The Prime Minister and the Minister of Finance have never failed to provide that leadership.
The Muskoka initiative has delivered an ambitious global partnership for maternal, newborn and child health, even as we have launched the most ambitious trade liberalization agenda in our country's history, all the while remaining the best in the G7 for job creation, growth and government-funded research. The key to all these achievements, above all else, is fiscal responsibility.
If one compares our deficit projection for this year, $18.7 billion, with that of the U.S., their current projection is $901 billion, with many variables ahead in Congress and elsewhere. The U.K. is £108 billion for this year. As the lesson of Cyprus has shown in the past week, the world is still on a sovereign debt precipice. Many of our allies and partners are already exceeding the 90% threshold for debt to GDP, beyond which growth has historically slowed on average by 1.2% per year, even in conditions of low interest rates, as Reinhart and Rogoff have recently shown in a now famous paper.
Every country that has an average per capita income that is higher than Canada's also has a debt level that is lower than Canada's, be it Sweden, Denmark, Switzerland, Australia or other small countries.
This budget resists the temptation to throw caution to the winds and to sacrifice fiscal consolidation on the altar of short-term advantage to saddle our young people with an unnecessary burden. However, that is exactly what both opposition parties would do with their uncosted proposals, their inconsistent statements, their bureaucratic reflexes and their politics of instant gratification.
The Conservatives will not travel this path. We will not miss this opportunity to continue Canada's economic leadership in mining, where we continue to be the world leader in new financing of exploration and development.
In the aerospace and defence sectors. we have the capacity to produce the best products and develop future capabilities, and those sectors just received new support in this budget.
Nor will we miss this opportunity in advanced manufacturing, where we are taking action to promote innovation.
In the area of finance, Toronto and other very dynamic centres of Canada's financial sector—Calgary, Montreal and Vancouver—now rank among the top 10 financial centres in the world.
Also in agriculture, our exports of meat, grain, fish and other food products continue to grow. All of these sectors are creating high-paying jobs from coast to coast to coast, in urban areas and rural.
It is one thing to want to have a low-tax, high-skill jurisdiction; it is quite another to deliver on such a commitment. This Prime Minister and this minister have done both. International investors have been watching. We have the best business plan, according to Forbes Magazine. We have the soundest banks, according to the Davos forum. Over the past seven years, portfolio investment in Canada has grown 67%, while many other advanced economies have lost the confidence of investors, or stumbled. Direct investment by Canadians in the world has grown from $806 billion to $980 billion, while direct investment in Canada has advanced from $802 billion to $947 billion.
These are some of the keys to our recovery. These are the facts that underpin the creation of 950,000 net new jobs, most of them in the private sector and most of them high-quality, since the low point of the last recession. However, we must do more to ensure all Canadians have access to economic opportunity. That is why this budget also includes new measures to tackle homelessness, to build new affordable housing, to empower those with disabilities and to help young aboriginal Canadians find a trade or start a new business.
Let us be clear about our record to date. Canada's growth over the past seven years has been balanced and inclusive. Let us recall what TD Economics told us in December 2012. It stated:
Income inequality is both persistently lower and rising more slowly in Canada than in the United States. In fact, inequality in Canada has been flat since 1998, as measured by the Gini coefficient.
That is another record of achievement.
Let us look at the numbers showing the opportunity that Canada has. According to Statistics Canada, our GDP in 2012 was at $1.833 trillion. Again, according to Statistics Canada, as of now the estimated population is 35 million. That is $52,288 of GDP per Canadian, well ahead of larger countries in the G7 and well ahead of most of our peers.
Unlike the opposition, we harbour no illusions about the role that international trade has played in our success.
Let us be clear on what international economic experts are saying. Robert Z. Lawrence of the Peterson Institute said:
Trade has improved...living standards. With the exception of oil, emerging economies have been mainly complementary rather than competitive....
This is not what we hear from the NDP, who want to shut down all of our trade agreements in North America and beyond. The NDP is not coming clean with Canadians about what this would do to our living standards, our prosperity and to our future. Instead, the government is pursuing an ambitious trade agenda, building a powerful economic relationship with China.
We are pursuing free trade with India. We are negotiating an unprecedented free trade agreement with Europe for Canada.
We are multiplying free trade agreements with Latin America, and we are driving with the U.S., Japan and others toward a trans-Pacific partnership.
With regard to CIDA amalgamation with foreign affairs, I think all of us on this side of the House welcome it. It will help us to be more strategic about our position in the world, to have an effective policy for partnering with low income countries while trading and investing with developing middle income and high income countries coherently and powerfully.
Is it not a huge advantage for Canada to have a development commitment to the 54 countries of Africa, and to have mining companies that have invested, not $5 billion in 2005, but $32 billion-plus in Africa today? Does that not do more to raise living standards and to secure Canadian leadership?
What does this mean for a riding like Ajax—Pickering? It means young people will be considering apprenticeships in the many sectors where nearly a quarter of a million jobs are still going unfilled. It means small businesses will be seeking Canada jobs grants to plan for new hiring, even while welcoming the extension of the tax credit for new hires.
It means that investment in industrial equipment will continue. In 2010, there was an 11% increase and in 2011, the increase was nearly 25%.
It means that those who attended our pre-budget round table on youth, women and unemployment last fall with the Parliamentary Secretary to the Minister of Human Resources and Skills Development now know that they have been heard. It means commuters, families, and public transit and municipal authorities in Ajax—Pickering can now have confidence that the largest long-term commitment to infrastructure in Canada's history, $70 billion over 10 years, will benefit them. It means that those who believe in a strong defence industry for Canada will be looking to opportunities in shipbuilding, aerospace, and defence procurement to harness new ideas and support the next technological breakthrough in blast resistant materials or low emission propulsion.
During the ministry of Sir John A. Macdonald, Canada represented only 1.3% of global GDP. Today, we represent something like 2.6%, after a crisis that has seen the share of other advanced economies slide and as emerging economies have seen unparalleled growth.
Global GDP has risen from $41 trillion in 2000 to over $70 trillion today, but Canada's place remains prominent. Canada's prospects remain bright. Canada's leadership remains strong, thanks to this budget.