Mr. Speaker, I am pleased to speak to the budget, which I have not had a chance to speak to before. I will be sharing my time with the member for Terrebonne—Blainville.
I will divide my speech into two sections. First, I will talk about why we do need, not only debate but much more information about the direction in which our economy is going in relation to what we are doing within the budget.
The budget was first put forward in March 2011 and then re-entered in virtually the same form in June 2011. Since then, we have seen many changes to the world situation, including Canada's situation.
The budget was based on projections of an increase to the GDP of about 3% a year. We hear that the IMF has said that it will be 2%. What does the budget say about that? The Conservatives talk about it here, and it is something we should address in the debate and in the information going forward. In their plan to return to balanced budgets, they talk very specifically on page 208 on the estimated impact of a one year, one percentage point decrease in real GDP growth on federal revenues, expenses and budgetary balance.
Within that, we see quite clearly that in year one we will be short, from what we had projected as a deficit, of another $3.3 billion. Those are the figures of the Conservatives. That goes on to minus $3.6 billion next year.
We have an economic turndown. Things were not as rosy as the government was presenting in a budget delivered before an election.
Now we are in a situation where the increased deficit will likely match up to what government is proposing to cut out of expenditures, which is $4 billion. Where will that leave Canadians in the future? What pressure will it put on the government to continue to cut services, to continue to knock back on Canadians and not address the real issues, which, quite clearly, are finding ways to increase the revenue of the government in a way that would assist Canadians in righting their fiscal imbalance. The NDP has proposed that we not cut the corporate tax rate to the extent that we are.
There has been debate about Manitoba cutting the corporate tax rate. Provinces are very poor examples of a corporate tax rate. Corporations move their head offices from province to province in order to attract the lowest corporate tax rate in a particular province. I saw that phenomenon in the Northwest Territories in the year 2002-03, which upset the balance of our territorial budget by about $300 million. So I know what I am talking about.
When we talk about provinces, they are the worst collectors of corporate taxes in the country because they are under constant pressure to lower their rates in relation to other provinces. The responsibility should lie with the federal government to collect the corporate taxes uniformly across the country.
Where is the debate about what is happening to our economy and to our budget in a real good fashion? We can approve these expenditures but do we understand where they are leading the country? Yes, we should debate the budget.
I will now turn to a more hopeful sign. There was an item in the budget in March and carried forward to June of $150 million for a road between Tuktoyaktuk and Inuvik, an important part of the infrastructure of the north. It is a part of the infrastructure of the north that in 2007 I introduced the idea to the previous minister, Chuck Strahl, in a meeting that we required these roads and this particular road. I am glad to see that the government has taken this on. However, the $150 million will not build that road. The $150,000 will build part of the road. The rest of the cost of the road will be assigned to the Government of the Northwest Territories.
In March of this year, I had a private member's bill in front of the House. The government, a person, voted against raising the borrowing limit for my Government in the Northwest Territories to fund valued infrastructure projects in the Northwest Territories. Since then, the Minister of Finance has promised our finance minister over and over again that he would give us some answers on the borrowing limit so that we can invest in the north, make choices on infrastructure and support our economy at a time when the recession is hitting us.
The Mackenzie Valley Highway is a project that the whole north supports. Up and down the valley, aboriginal land claims organizations have taken a section of the highway, have done the preliminary estimates, have the material together and are ready to go, in the very near future, to environment assessment on the whole Mackenzie Valley Highway, a distance of some 1,200 kilometres from the southern part of the territory to Inuvik and then on to Tuktoyaktuk. It is a road that, over the next two decades, would open up, and I am not exaggerating, tens of billions of dollars of development that would impact all Canadians in a positive fashion.
We have a great made-in-Canada project where likely very little of what we spend on the project will escape Canada to other businesses in other countries. It will occur in Canada. It is a great project that will provide relief to many communities that do not now have roads up and down the Mackenzie Valley, that have incredibly high costs of living and have isolated conditions that are really not appropriate in this day and age.
We have a great opportunity but we need to improve the fiscal capacity of the Government of the Northwest Territories. The federal government would not support my private member's bill in that regard. It stood up to a person against it. We need it and we need to understand the direction we would take with it. The government needs to come up with a better plan for investing in that highway.
In the April election, I was proud to see that my party, the New Democratic Party, had identified in our platform $400 million over five years to invest in northern infrastructure, which is quite a bit more than the $150 million that was put forward for the Tuktoyaktuk-Inuvik road. That is the kind of investment that is needed from the federal government, as well as from the Government of the Northwest Territories.
We have a vision of what we want to accomplish in the Northwest Territories. Aboriginal treaty organizations up and down the valley are supporting this effort. It is time. This is a great opportunity for Canadians. It is a great opportunity to help our economy at time when we need stimulus in the economy.
We need to recognize what we can do in the next few years that will improve our economy, whether it is green jobs, which will return to us and make us a stronger and better society, or a project like the Mackenzie Valley Highway that is needed to serve the orderly development of very important resources. These are things that we should be investing in and talking about right now.
This is a time when we need plans and leadership. We need to understand how this country can avoid what is clearly a gathering storm of fiscal recession that will eventually fall onto the land of Canada. We need this kind of positive debate about the budget. It is a budget that, after four months, is not really accurate and does not provide all the answers, which is why we are standing here today.