Mr. Speaker, it is my pleasure today to rise to speak to Bill C-38, the budget implementation act. Before I get to the specifics of the budget, I want to give an overall view of the budgetary plan that we have been on for a number of years and leading into 2012.
We did two years of stimulus spending in 2009-10. Now we are on a path toward eliminating the deficit over the medium term through our deficit reduction action plan. While doing so, we are continuing our transfers to the provinces and to persons.
We have taken a path to ensure that social programs are sustainable in our country, in part by ensuring that elderly and family benefits continue, but also in terms of ensuring that health, education and social services, with our transfers to the provinces, continue on as well. With transfers to the provinces, we have been funding at 6% year over year, and that will continue for another number of years and then it will proceed at nominal GDP with a base of 3%, which is responsible funding for health care going forward.
At the same time, we will continue our funding at 3% for the Canada social transfer, year over year funding, which funds education and social services of the provinces, so provinces can plan long term in how they want to fund health care, education and social services.
I also point out that we are continuing our long-term plan with respect to taxation, a plan that began in the fall of 2007 with the fall fiscal update by the Minister of Finance, in terms of reducing our business tax rate to 15% federally, encouraging provinces to move to a 10% business tax rate, then moving to a small business tax rate of 11% from 12% and increasing the amount that companies can earn and still pay that lower rate of tax at 11%. They used to be able to earn $300,000 of business income and now they can earn $500,000 of business income.
It is important to point this out that we have had some very long-term strategies in place in lowering taxes, making Canada more competitive, drawing investment back to the country and moving toward a balanced budget over the medium term, something that has been recognized by international organizations as the right path.
I will focus my speech on the issue of innovation. Going back to the release of the science and technology strategy in the spring of 2007 by the government, we are trying to focus our research efforts in four main priority areas and also by investing in research and development, science, technology and innovation.
If we look at the investments we have made over the past number of years, these have been recognized by university and industry leaders across the country, and that is an important point. Many people will say that these are simply austerity times, that we have had our stimulus spending and now we are in austerity times, and that is not correct. We are looking for efficiencies through our deficit reduction action plan, but at the same time we are continuing to invest in innovation.
I will quote at length from a letter from the president of the University of Alberta, Indira Samarasekera, a very distinguished individual. We are very lucky to have her in Edmonton because she is an outstanding person. She says she would like to thank our government for:
—your outstanding support for advanced research in science, technology, and education and training in Budget 2012....Budget 2012 reaffirms the Government of Canada's commitment to post-secondary education and research while further encouraging innovation in the private sector.
As Budget 2012 outlines, innovation is integral to competitiveness in the global knowledge economy. While Canada is a world leader in many advanced research fields, forming stronger linkages between public and private stakeholders will yield important dividends for both sectors. The provision of $37 million to the granting councils to form industry, academic-partnerships is thus very timely. An additional $500 million in funding for the Canada Foundation of Innovation will also ensure that Canada's research infrastructure, which is an important element in attracting talent from around the world, remains state-of-the-art and world-class. By doubling the industrial Research and Development Internship Program, more talented graduate students will gain valuable experience in and exposure to the practices of the private sector.
Given the economic restraint occurring around the globe, Canada is fortunate to have strong economic fundamentals. Budget 2012 reinforces these advantages by recognizing the important role innovation plays in Canada's long-term economic prosperity. The investments included in Budget 2012 provide Canadian entrepreneurs and innovators with access to the resources they need to create jobs, make ground-breaking discoveries and form important linkages around the world.
It is important to note what one of our most distinguished university leaders has to say in terms of continuing to invest in innovation, research and development.
Also, the Association of Universities and Colleges of Canada warmly welcome budget 2012, as did Polytechnics Canada. I will quote from its press release:
Specifically, we welcome:
the doubling of funding for the Industrial Research Assistance Program (IRAP), which benefits many of our small and mid-size company partners.
This was one of the things that was identified in the Jenkins report. Frankly, need to double this program has been identified by many small and medium-sized businesses across the country. This program is very effective in providing not only financial assistance but mentorship to these small and medium-sized companies that are growing in Canada, which is one of our main challenges.
One of our main challenges is that a lot of our smaller companies have some real challenges in growing into larger companies, or as they grow into larger companies and increase their sales and net volume, they experience some challenges. A CEO said to me recently that with a one million dollar company he could operate fairly well, but when sales increased to $7 million, he had some real challenges. In fact, the IRAP program mentored him through that transition.
I will continue with the press release from Polytechnics Canada, which states:
additional funding for the Strategy for Partnerships and Innovation—a key plank for the Natural Sciences and Engineering Research Council's...industry-facing programs; and
the new multi-year funding for the Canada Foundation for Innovation with its explicit intention to continue the very recent College-Industry Innovation Fund.
This is an important point of which many Canadians should be very proud. If we look at the early or mid-1990s, there was a real problem in Canada that we called the brain drain. Many people, scientists and researchers, left Canada to go to the United States or other countries because they felt they had better opportunities abroad. In fact, I think that has been reversed and I would credit the previous government in part for a lot of the initiatives during the mid-1990s and on, like the Canada Foundation for Innovation, which has been expanded and extended by our government with enhanced funding.
We have introduced a number of new programs in terms of research and development and continue to fund basic research through the granting councils. We are also focusing on the main challenge we have in this area, which is commercialization, to ensure that our small businesses can grow into larger businesses and continue to compete. That is why we set up the Jenkins report. I want to thank Mr. Jenkins for his panel's report and the important work in this area. We are continuing to invest in innovation.
The other area I want to point out is in respect to labour challenges. Whenever I do round tables in my riding of Edmonton—Leduc, the number one issue I hear from businesses is access to labour, skilled and unskilled people. I would love to have members come to my riding to do round tables. I would ask around the table how many people would be needed today and one business person might say that he or she needed 75 people or 125 people today of all types, skilled and unskilled.
This was a crisis about four or five years ago in Alberta and western Canada as well as in parts of Atlantic Canada. In Newfoundland, it is getting to be a serious situation in the lack of labour. This is why we have made a number of changes.
The Minister of Human Resources and Skills Development was in my riding in Nisku recently to announce changes to the temporary foreign worker program. It was an excellent announcement in terms of addressing some of the issues. However, we have to address both the immigration side and the employment insurance side. The Minister of Citizenship, Immigration and Multiculturalism and the Minister of Human Resources and Skills Development are addressing both in terms of enabling people to access the workers they need.
The Minister of Citizenship, Immigration and Multiculturalism has spoken very openly about trying to move to a system similar to what Australia has where employers and employees can match very quickly and people could come to our country. However, we also have to engage and work with groups like Polytechnics Canada to ensure that Canadians have the skills and training in the fields that will enable them to move forward and have a very good quality of life.
