Mr. Speaker, I will be splitting my time today with the hon. member for Chatham-Kent—Essex.
Oshawa is often considered the Canadian ground zero for the financial crisis that gripped the world over the last 18 months. Its economic reliance on General Motors and the many feeder plants led some naysayers to believe that a mass exodus would occur and quickly turned Oshawa into the Flint, Michigan of the north.
This government's commitment to putting the Canadian economy first through the creation and implementation of the economic action plan has ensured that not only will Oshawa navigate through this storm, but she will emerge as a stronger, more economically diversified city.
Phase one of the economic action plan recognized the economic diversity of our nation and the programs introduced were tailored to meet the specific needs for the country's different regions. This well thought out approach to the global downturn allowed communities like mine across the nation to apply and receive unprecedented federal investment in aging infrastructure, parks and community centres, new and exciting economic engines, educational and research facilities. The list goes on and on.
Global economists cite the Canadian example time and time again. Our financial institutions are the mark for others in the G20. Our finance minister, the hon. member for Whitby—Oshawa, was named the finance minister of the year for drafting the blueprint, which serves as a map to economic health and future prosperity.
Investment and the creation of new jobs and growth were the goals of the economic action plan and reiterated again in the Speech from the Throne. The plan is working and we must stay the course and see it through to its completion to ensure all Canadians benefit from a newly invigorated global leading economy.
For those who would question our government's direction, I would like to cast a light on ground zero and use Oshawa as a litmus test for the economic reaction to the economic action plan.
When people think of Oshawa, their minds instantly turn to General Motors. Oshawa is home to award winning assembly plants and some of the finest manufacturing professionals in the entire world. However, their excellence would be no shield to the economic storm that would bring GM to its knees and threaten to force Canadian jobs south of the border.
Our government responded by being the first at the table with a plan to keep jobs in Canada. This investment was controversial to some, but tough decisions had to be made and our government did not hesitate. We are seeing that investment pay off. In Oshawa alone, additional overtime shifts and temporarily laid-off workers are being added on a consistent basis. General Motors sales are improving and it is paying back its loans faster than expected.
We are committed to the creation of the jobs of tomorrow, jobs that will have Canadians leading the way globally in technology and innovation. This strategy starts in the hallways of our post-secondary institutions. This initiative began last year with the creation of the knowledge infrastructure program. This program created a two year $2 billion economic stimulus measure to support infrastructure enhancement at post-secondary institutions across Canada.
The program provides funding to support deferred maintenance, repair and expansion projects at universities and colleges and responds directly to the need indicated by post-secondary institutions to improve existing campus infrastructure across the entire country. A major portion of this infrastructure is near the end of its projected life cycle and in many cases does not adequately meet the needs of today's research and teaching activities.
This program not only led to improved facilities at the University of Ontario Institute of Technology and Durham College, which both call Oshawa home, but also led to outside investment by the private sector. General Motors of Canada took advantage of increased funding at the university and entered into a partnership with the school for the founding of the Automotive Centre of Excellence, which will guarantee that the next generation of automotive innovation will be born in Oshawa.
Another program that was immensely successful in protecting economies that were especially susceptible due to heavy reliance on a single industry was the community adjustment fund. The eligible communities were defined by specific criteria, using indicators such as job losses and unemployment rate. Only communities with a population of less than 250,000 were eligible. This targeted approach added an extra shield to those who were feared to be hardest hit. Budget 2009 provided $1 billion over two years for the fund.
Oshawa again benefited from the fact that the government recognized that we, as well as similar communities, needed special measures to ensure growth alongside the larger urban centres. The city of Oshawa definitely benefited from successful applications to the CAF.
The community adjustment fund has supported activities such as the community transition plans that foster economic development, science and technology initiatives and other measures that promote economic diversification. The fund is being delivered nationally through the regional development agencies, Industry Canada as well as the newly created Federal Economic Development Agency for southern Ontario and Canadian Northern Economic Development Agency. These two newly created agencies provide expert insight on how best to promote growth in the respective regions and will continue to be a staging point for developing future growth.
The government has accelerated work to assess and remediate federally contaminated sites, with over $153 million worth of projects under way or completed. This work is helping to create jobs and economic activity in communities across Canada, while contributing to new green spaces and cleaner bodies of water and soils and enabling long-term development.
Through this program Oshawa is at the brink of a resolution to a 40-year-old dispute, which will see a once stagnant harbour spring back to life and balance both industrial growth as well as recreational use. The Oshawa Harbour was identified by name in last year's budget and has been allocated over $9 million to bring this hidden jewel back to its former natural brilliance.
These are only three examples, three programs which were able not only to allow Oshawa to provide potentially crippling economic disaster, but to emerge poised to be a leader in the fields that extend beyond our traditional excellence in manufacturing.
With the first phase of the economic action plan now completed and the positive results of the plan being reflected in Canada's strong fiscal performance among the G20, this government will now implement the second and final phase of the economic action plan.
The final phase of our economic action plan outlined in budget 2010 has three main priorities: first, to implement and confirm the remaining $19 billion in stimulus measures to help create and maintain jobs; second, to invest in limited but targeted initiatives to build jobs, foster economic growth in Canada and make Canada an attractive destination for new business investments; and third, outline our plan to return Canada to surplus and bring balance to our finances over the medium and long term.
First and foremost, the government is committed to jobs and economic growth. The government was able to effectively and efficiently get record amounts of stimulus funding out the door in 2009. Thanks to these measures, we are seeing some signs of recovery, however, the recovery remains fragile.
There are approximately $19 billion left of stimulus measures that will take effect in 2010. This $19 billion includes: $3.2 billion in personal income tax relief, including the enhanced working income tax benefit, WITB, to strengthen work initiatives for low income Canadians; $4 billion to protect Canadian workers, including additional EI benefits and more training opportunities to help unemployed Canadians in hard hit cities like Oshawa; $7.7 billion in infrastructure stimulus to create jobs; and $1.9 billion to create the economy of tomorrow. This investment will strengthen our capacity for research, accelerate private sector investment and enhance the ability of Canadian businesses to invest in the global markets. There are $2.2 billion to support industries and communities. This funding will provide support for hard hit sectors, such as forestry, agriculture, small business and culture.
Commitments are in place for almost 16,000 projects across the country. With the remaining stimulus, measures going out the door, the government is taking big steps to encourage investment in the Canadian economy to foster growth and create jobs.
Just one of the measures we have taken is to make Canada a tariff-free zone for manufacturers. This government will be eliminating all remaining tariffs on productivity, improving equipment and goods imported for further manufacturing in Canada. Manufacturing cities such as Oshawa will benefit from this policy. When implemented, this will provide approximately $300 million in duty savings for Canadian businesses.
Furthermore, the government has made it a goal for Canada to emerge from the global recession with a highly competitive tax system that will attract investment and create jobs.
This year Canada will have the lowest overall tax rate on new business investment in the G7. By 2012, Canada will have the lowest statutory corporate income tax rate in the G7. Improvements will also be made to Canada's system of international taxation to facilitate investments, cut red tape, streamline the compliance process associated with taxation of cross-border activity.
These measures will ensure that Canada's tax system is able to compete on a global scale, create jobs and help grow the economy. Economic growth will not only be targeted in our traditional markets, but also for the green industries and jobs of tomorrow.
The final phase of the economic action plan includes measures to promote energy investments and help deploy clean energy technologies. Some of the measures include establishing a next generation renewable power initiative and implementation of advanced clean energy technologies and expanding eligibility for accelerated capital cost allowance investment in clean energy.
