Madam Speaker, I am delighted to have the opportunity to speak in the House today in support of Bill C-38, the budget implementation act, which speaks to economic action plan 2012, Canada's blueprint for jobs, growth and long-term prosperity.
Economic action plan 2012 is a positive plan that grows our economy today and into the future. It provides support for innovation in research, invests in training and opportunity, families and communities and improves conditions for business investment, while ensuring the long-term sustainability of major social programs.
This is why residents in my riding of Richmond Hill, Ontario, are pleased that the focus of this budget is on creating jobs, not only for today but for the future, within a growing knowledge-based economy. The budget maintains our consistent, responsible approach to managing the economy and building confidence in our future. Indeed, our solid, pragmatic and predictable approach is building certitude and confidence among Canadian business leaders.
I was pleased to read a news release from the Canadian Chamber of Commerce last month. It stated:
Today’s budget presents a plan for economic growth that builds on Canada’s economic and fiscal advantages. The measures announced will help Canadian businesses prosper and compete.
Budget 2012 supports jobs and growth in many facets. It ensures predictability and stability in the employment insurance rate. The extended hiring credit for small business is a great boost for job creators. This initiative will save up to $205 million in payroll costs for small businesses across the country. Employers can receive a credit of up to $1,000 against an increase in their 2012 EI premiums over those paid in 2011.
Firms in my riding like Auto Technique that just opened its doors last fall and Sure Print & Design that hired new employees earlier this year are already benefiting from this initiative. Companies planning to expand into Richmond Hill, like Sabouhi Academy of Art & Design, will all benefit from the one-year extension of the hiring credit for small business. Other Richmond Hill businesses, like Cosmo Music, tell me that initiatives like the hiring tax credit for small business and the children's arts tax credit that we brought in last year help their business to expand, creating new jobs and economic activity.
Economic action plan 2012 charts the course for the future by supporting entrepreneurs, innovators and world-class research. We will do this by increasing funding for research and development by small and medium-sized business, promoting collaboration between the private sector and federal government, refocusing the National Research Council to better help Canadian businesses develop innovative products and services, increasing access to venture capital financing by high growth companies, streamlining the scientific research and experimental development tax incentive program and increasing funding for research and training through partnerships with universities, granting councils and leading research institutions.
We are supporting economic growth by investing $110 million per year into the National Research Council. This will include the doubling of support to small and medium-sized companies through the industrial research assistance program, or as it is commonly known, IRAP. IRAP is a very important program in my riding. It supports innovative companies by helping them to develop technologies and successfully commercialize them in the global marketplace. Many Richmond Hill companies have benefited from IRAP, and I look forward to seeing many more benefits from this added support.
Budget 2012 announces new investments in training to better utilize Canada's workforce and to remove disincentives that may be discouraging workforce participation. This will be done by investing in young people to help them gain tangible skills and experience, connecting older workers to potential employers and enabling more Canadians with disabilities to obtain work experience by introducing changes to the employment insurance program.
Deepening Canada's trade and investment relationships in large and fast-growing export markets around the world is key to creating jobs and growth. Under the leadership of the right hon. Prime Minister, Canada has shown leadership on the world stage by opposing protectionism and trade restrictive measures.
Since 2007, Canada has concluded trade agreements with 10 countries and is in active negotiations with 10 others. Economic action plan 2012 proposes to intensify Canada's pursuit of new investment opportunities, particularly with large, dynamic and fast-growing economies. I look forward to the benefits these new trade agreements will bring to my riding of Richmond Hill and indeed across our beautiful nation of Canada.
Canadians know that our government is delivering more than $60 billion of tax relief to job creating businesses over five fiscal years. Key actions that we have taken to help businesses invest and create much-needed jobs for Canadians include reducing the general corporate tax rate from 22% to 15%, reducing the small business tax rate to 11% and increasing the eligibility for this rate, increasing the lifetime capital gains exemption, eliminating the federal capital tax and better aligning capital cost allowance rates.
As a result of our actions, overall business investment in non-residential construction and machinery and equipment in 2011 exceeded the pre-downturn peak of 2008, and 2012 business investment intentions point to even stronger results.
I know small businesses are looking forward to our continued focus to reduce red tape. Red tape hampers economic activity, and our government remains committed to removing bureaucratic obstacles to the efforts of businesses to create jobs and growth for Canadians.
Budget 2012 proposes additional measures to reduce the tax compliance burden for small businesses and announces a number of administrative improvements by the CRA.
Investing in public infrastructure is another high priority in Richmond Hill.
Economic action plan 2012 proposes a $150 million investment over two years for a community infrastructure improvement fund to support repairs and improvements to existing small public infrastructure facilities on a cost-shared basis. This is good news for our municipal partners.
Let us not forget that it was this government that doubled gas tax funding to municipalities, from $1 billion to $2 billion, and made it permanent so municipalities now would have stable, predictable funding on which they could count. In my riding of Richmond Hill this means $5 million is automatically added to its budget each and every year.
This is great news for all Canadians, as was noted by the Federation of Canadian Municipalities, which said:
Canada's municipal leaders welcome today's commitment by the federal government to continue working with cities and communities to rebuild the local roads, water systems, community centres and public transit that our families, businesses, and economy depend on.
During my pre-budget consultations, improving the efficiency of government spending was the number one recommendation I heard from my residents in Richmond Hill. My constituents and all Canadians know the importance of living within their means, and they expect their government to do the same. That is why our government is committed to managing public finances in a sustainable and responsible manner.
Budget 2012 continues the course toward moving to a balanced budget in the medium term at an appropriate pace as the economy continues to recover from the fragile global economic situation. We are doing this by finding operational efficiencies and achieving greater relevance and effectiveness in government programs and services to better align with the spending priorities of Canadians. We are doing this without cutting transfers to other levels of government. On the contrary, major transfers will grow for the provision of health care, education and social services and to individuals for old age security and children's benefits.
As we have heard, federal support to provinces and territories will reach an all-time high of $59 billion, which is $3 billion more than last year. For Ontario, major transfers in the fiscal year ending 2013 will total $19.3 billion. This is $1.8 billion more than last year and $8.3 billion more than when we took office in 2006.
We remain focused on creating jobs, growth and long-term prosperity. I encourage all members of the House to support the implementation bill, Bill C-38, and Canada's budget 2012.