Mr. Speaker, I would like to inform you that I will be sharing my time with the member for Argenteuil—Papineau—Mirabel.
I would first like to thank the member for Parkdale—High Park for her excellent motion that summarizes the NDP's positions very well and contrasts them with the Conservatives' values and priorities. I would also like to remind my Conservative colleagues on the other side of the House that Quebeckers gave the NDP a strong mandate to represent them over the next four years. They must take this into consideration.
In discussing this motion, members are making many references to the uncertain financial and economic situation in Canada in the next few years. A number of financial institutions are concerned about the economy. I am referring to the International Monetary Fund, for example, which is forecasting that Canada's unemployment rate will rise again this year. Therefore, it is very problematic that the Conservatives are telling us that Canada's economy is in good shape, that we should not worry, and that we should have faith in them. We see that it is not true.
The International Monetary Fund also indicated that the economy would grow much more slowly than forecast. That is another sign that greatly worries the NDP. The organization also revised downwards its forecasts for Canada's economic growth, now estimated at 2.1% for this year and 1.9% for next year. Those watching know very well that the cost of living is increasing at a higher rate, which suggests that there may be another recession. It is very worrisome because we have not yet bounced back from the 2008 recession.
That is why the NDP believes that the absolute priority must be to not cut stimulus funding, but instead to invest in the Canadian economy. This would be carried out in two main ways, although there are others, including investing in infrastructure.
I will speak a little about my region, Saguenay—Lac-Saint-Jean. My riding includes nine municipalities. During the spring and summer, I met with some of the mayors, and many of them talked to me about their tremendous infrastructure needs. My region is not particularly urban. It is primarily rural. Many small municipalities have limited administrative and financial means. That is why it is important for the Conservative government to invest in small municipalities across Canada, Quebec and Saguenay—Lac-Saint-Jean. It would be very welcome.
However, I get very worried when I see that the Conservatives want to cut stimulus funding. In Canada, infrastructure is very important, and I am concerned.
Other organizations agree with the NDP's calls for the Conservatives to maintain stimulus funding. BMO's chief economist, Sherry Cooper, said that this is not the time for the government to adopt austerity measures. I completely agree with Dr. Cooper. I remember a few years ago Canada was in a good economic position and had a surplus. That was the time to reduce our debt, to reduce our deficit. Today, we have still not yet recovered from the 2008 recession. So it is very important to continue to invest in infrastructure and worker transition programs, and to invest money in targeted sectors where employment can be stimulated. All of these measures will strengthen the Canadian economy in the coming years.
Sherry Cooper added that the misplaced belief that the road to economic prosperity is paved with near-term fiscal tightening, as espoused by our own Prime Minister and the British Prime Minister, shows we have learned nothing from Herbert Hoover's inappropriate response to the Great Depression.
The NDP is not alone in calling on the government to think again about its second phase of Canada's economic action plan. TD Economics has also said that any unexpected downward shift in the markets could plunge Canada into another recession.
That is worrisome. I can just imagine what Canadians at home who lost their jobs during the recession are going through. If they are lucky, they found a job that is likely less stable and lower-paid and now they see all these economic leaders announcing that they might have to relive everything they have gone through in the last few years. That is very troubling. I urge the Conservatives to take this into consideration and remain flexible in their economic stimulus program.
What is more, Scotiabank has said that “we're faced with the distinct possibility that the Canadian economy could be the first to stumble”. I do not really understand why the Conservatives tell us from time to time that the economic situation in Canada is good, to trust them and that they received a strong mandate from the Canadian public. Canadians and Quebeckers are not blind. I would kindly ask the Conservatives to review their economic action plan and to take into consideration not only what we in the NDP are saying, but also what Canadian economic leaders are saying about this.
Scotiabank has also published a report saying that the Canadian economy could enter a recession even without a further unexpected drop in the U.S. economy. We know that the U.S. economy has already had many problems with regard to economic recovery, which is very slow. Again, according to Scotiabank, even without a decline in the U.S. stock market and real estate market, Canada could enter into another recession. That worries me greatly. In my region we have a high rate of unemployment. Many of the jobs are not secure. I am really worried about Canada's economic situation.
Then there is the Conference Board of Canada. Glen Hodgson indicated this week, at a meeting of the Standing Committee on Finance, that this is not the right time for the government to cut spending. He emphasized the fact that the government should remain flexible in its approach. That is what the NDP and I are asking of the Conservatives. He also repeated a number of times that tax expenditure—in other words, the inefficient tax cuts the Conservatives are giving to corporations—should be included in the scrutiny of government spending.
The Bank of Canada is very reputable. I encourage the Conservatives to pay attention to what the Bank of Canada is saying and what it is doing. The Bank of Canada is also very worried about Canada's economic situation. And for that very reason, it recently decided not to harm the economy by reducing demand. Thus, it kept interest rates low. It is very important for the Canadian economy that interest rates remain low to encourage spending and exports.
However, the government really needs to be doing its part by investing in the Canadian economy and in infrastructure. Private investments are limited right now because private companies are worried about the same things that concern the NDP when it comes to the Canadian economy. Companies are not yet ready to invest their hard-earned money for fear that another recession is coming and they will lose money. That is why it is so important that the Conservative government set an example and fund infrastructure programs.
I want to share some key numbers. I know how much the government likes numbers. I will tell it like it is; I will read out the real numbers.
The number of officially unemployed Canadians is still 1.4 million. If we include those who are discouraged or underemployed, that number is closer to 2 million. So, 2 million people in Canada are out of work. That is very worrying.That is the reason the NDP wants so much to stimulate the economy. We want the government to invest in small business. We spoke about that last spring. It is important for us that the government cut the small business tax rate by 2%. Small businesses in Canada create more than half of all new jobs. By investing in this sector rather than in large corporations, Canada will be able to create jobs, sustainable jobs. It will solve the problem of the Canadian economic crisis and instability.
