Madam Speaker, I want to follow up on the comments of the hon. member for Toronto Centre, who said that there were considerable changes between the economic statement and our budget. If there had not been any changes, it would have shown we were out of touch with reality. In just a few months, the global recession has had a very negative effect on our country. The budget had to take these extremely important events into account.
We started with a budget running a surplus of nearly $1 billion only to quickly find out it was all melting away. The expected deficit was now nearly $1 billion. When a government starts with a budget forecasting such a surplus and ends with an expected deficit of $34 billion for the next year, something major has happened.
Our government believes it is important to support Canada’s economy at a time when the private sector is reducing its investments. We are an exporting country. Our businesses are seeing people buy less of what they produce. They are forced to cut production and even let employees go. It is important, therefore, for our government to offset this decline in the private sector through massive investments in infrastructure. We are going to invest $12 billion in it over two years.
We have also provided support for the automobile industry, just as we are helping the forestry sector by providing a tax credit for people who renovate their homes. When people renovate their homes, economic activity increases and this helps companies in the manufacturing and forestry sectors that produce all kinds of products used in renovations. We are also encouraging people to buy their first home by providing another tax credit. There is an array of measures here similar to those on the employment insurance side.
The hon. member for Toronto Centre and his party felt that this was a good approach to take. A budget is never perfect, of course. We cannot do everything, but a least the hon. member has recognized the efforts we are making to try to support Canada’s economy, our employers, our working people and the disadvantaged.