Mr. Speaker, I am honoured to have the opportunity to speak today in support of budget 2008. It has been said before and it deserves to be restated: this budget is balanced; this budget is focused; and this budget is prudent. I would like to extend my congratulations and thanks to the Minister of Finance for his continued fine work on behalf of all Canadians.
We have heard from many sectors that are giving their strong support to this budget. Kevin Dancey, president and CEO of the Canadian Institute of Chartered Accountants, stated of budget 2008:
This is a prudent, steady as she goes budget from the government. Coming at a time when the Canadian dollar is strong and the U.S. economy is struggling, the federal budget follows through on the government's commitment to reduce debt while targeting program spending, job creation and encouraging savings by Canadians.
This is a budget that clearly demonstrates financial responsibility.
Mr. Perrin Beatty, the president of the Canadian Chamber of Commerce said this:
The Canadian Chamber of Commerce is pleased that the budget addresses a number of our recommendations in critical areas such as infrastructure, immigration, creation of an Employment Insurance Financing Board, and education and training.
He continued:
The current and foreseeable Canadian and global economic climate dictates prudence and responsibility.
I would like members to please note those two words “prudence” and “responsibility”. That is what this budget is about. He went on to say:
The Canadian Chamber of Commerce supports the government's commitment to reallocate program spending to higher priority areas and to invest in productivity enhancing measures. Combined with last fall's Economic Statement, which addressed personal and corporate income taxes, as advocated by the Canadian Chamber of Commerce, the creation of a Tax-free Savings Account will encourage savings, a measure which the Chamber has sought for many years.
The number of positive initiatives in this budget will certainly take more than 10 minutes to outline, but I will do my best to at least start by highlighting some of the great news that this budget contains.
Budget 2008 builds on the success of the two previous budgets and economic updates. For example, the GST reduction from 7% to 5% means $12 billion in savings for Canadians every year from here on in. For Waterloo region with 500,000 people, that means more than $180 million in savings per year. For my riding of Kitchener--Conestoga, it means an additional $40 million is available to be reinvested in the local economy each year.
The current global economic uncertainty cannot be ignored. This government has acted responsibly, decisively and early to ensure that Canada is in the best possible position to weather the storm. Our pre-emptive action in the fall of 2007 and the winter of 2008 to lower taxes, provide targeted support to troubled industries and pay down debt has done just that.
As the father of three and the grandfather of seven, the last thing I want to do is leave those generations of Canadians saddled with the mistakes of the past. Despite 13 years of careless spending under the previous Liberal government, we are working diligently to ensure that we leave things in good order for generations of Canadians to come.
Debt reduction is the responsible thing to do. It helps cut interest costs and stimulates investment. It strengthens our ability to deal with economic shocks and it reduces the share of tax dollars devoted to interest payments. The money we save by paying down debt goes right back to Canadians through our tax back guarantee. Canadians deserve, and they now have been given, a direct benefit from debt reduction. Rather than squandering the surplus, as opposition members charge, we are doing the responsible thing in giving people back their hard-earned money.
Under the tax back guarantee, the government dedicates the interest we save from federal debt reduction each year to permanent and sustainable personal income tax reductions. By 2010 the reductions provided by this measure alone will amount to $2 billion. This makes a huge difference for all taxpayers, not just this year, not just next year, but for every year from here on in.
The current cost of our national debt is $33 billion per year. Imagine what we could do as a country without those huge interest payments.
We all know the relief and freedom we feel personally when a debt is paid off, be it a credit card or student loan or when we finally own our homes free and clear. Imagine the freedom of future Canadians if they do not need to pay for the debt that this generation has accumulated.
Another way this budget looks to the future is in its commitment to invest in public infrastructure. Of the $1.6 billion planned for infrastructure initiatives, my own province of Ontario will receive $515 million.
These initiatives have significant support under the building Canada plan, which includes the gas tax fund, the building Canada fund, the increased GST rebate for municipalities and the provincial-territorial equal per jurisdiction fund. In the Waterloo region these combined programs will result in approximately $63 million of investment in 2009-10 for infrastructure projects.
In their February 26 press release, the Canadian Urban Transit Association said it was delighted that the budget commits significant new support to invest in public transit infrastructure. The allocation of $500 million in 2007-08 dedicated to public transit is a major boost to future access and mobility in Canadian communities.
Extending the gas tax fund as a permanent measure is an excellent response to the ongoing needs for municipal infrastructure investment. “This is a good news budget for transit”, said Michael Roschlau, CEO of CUTA.
I would be remiss if I did not mention the new tax-free savings account. This powerful savings vehicle is another fine example of how this government is showing responsible leadership to Canadians. In the same way that debt reduction is a sound fiscal principle, so too is saving for the future. This measure will make it easier for all Canadians to save.
Through the tax-free savings account, Canadians will be able to deposit $5,000 to grow tax-free, and it will remain tax-free when it is withdrawn. This is a flexible plan, designed to reflect the realities of everyday life. The ability to withdraw money when we need it without tax penalty and the flexibility to reinvest will prove to be quite beneficial for those who choose to participate.
Canadian Taxpayers Federation federal director John Williamson had this to say:
The new tax-free savings account is a pro-growth policy that will encourage Canadians to save, reward individuals and benefit the economy. This is an excellent policy proposal. Canada needs to reward people that save because their investments fuel economic growth and job creation.
For a moment I would like to focus on aboriginal affairs. I have the honour of serving on the Standing Committee on Aboriginal Affairs and Northern Development, so this area is of particular interest to me.
Ontario will benefit from $660 million in federal investments aimed at strengthening partnerships with aboriginal Canadians through a new framework on economic development, enhanced education outcomes, better health and family services, and first nations water and waste water action plan.
“Advantage Canada” recognized that the most effective way to address the gap in socio-economic conditions faced by aboriginal Canadians is by increasing their participation in the Canadian economy.
In his book, Dances with Dependency, aboriginal author Calvin Helin warns against government initiatives which encourage aboriginals to become dependent on welfare and social assistance. In contrast, he offers this bright perspective:
The aboriginal business sector is expanding dramatically with the number of self-employed Aboriginal people in Canada increasing by 30.7% since 1996.
He concludes:
With the appropriate environment, Aboriginal business is poised to be a major contributor to the Canadian economy.
We know there are fantastic economic opportunities across the country. In particular, the mining and resource sectors could provide new and historic possibilities for many aboriginal Canadians to move out of poverty and dependency, and to become full participants in the labour force and the economy.
Budget 2008 takes another important step to help aboriginal people to make the most of these opportunities by committing to establish a new framework for aboriginal economic development by the end of 2008.
To continue our progress in providing access to safe drinking water on first nations reserves, budget 2008 invests over $330 million over the next two years to extend this plan of action.
I would finally like to touch on the money that has been allotted for international assistance in this year's budget. In my work with the Christian Medical and Dental Society and other international service organizations, I have had the privilege of visiting several countries, including Zambia, Zimbabwe, Nepal, Honduras, Dominican Republic. I have witnessed firsthand the joy in a middle-aged woman's face when she received new eyeglasses and was now able to see clearly.
I have been able to personally use my dental training to improve the health of those who had suffered for years with chronic pain.
Canada is a blessed country and Canadians are world renowned for our generosity and compassion.
I am especially encouraged that budget 2008 provides the resources and direction required to enable Canada to reassert its influence in global affairs.
One of the hallmarks of leadership is knowing how to face challenges ahead with responsible and wise action. I urge all members of this House to give their enthusiastic support to this budget. This budget clearly demonstrates responsible leadership.
