Mr. Speaker, I wish to begin by thanking my colleague from Kitchener Centre for sharing her time with me because it gives me an opportunity to add my comments on budget 2004. I hear from my constituents and friends in Toronto, Scarborough and other parts of the country that given the circumstances and given what has happened to our economy and the worldwide economy, we are not doing too bad.
This gives us a opportunity to reflect on the fact that not too long ago, just a short 10 years ago in October 1993, this Liberal team assumed the responsibility of running the government and the country. It is important to take just a moment to reflect on where we were then and where we are today so that some of the figures mentioned in the budget will really make sense. As well, there is what has happened in the past couple of years.
It is important to say that in 1993 when this Liberal team took office we had a deficit of slightly over $42 billion. We were running a very high debt of close to $600 billion. The unemployment rate was close to 12% and our EI payouts were enormously high.
Let me say very quickly what today is like. As my colleague from Kitchener Centre mentioned earlier, we eliminated the deficit in 1997-98. Suddenly the books were balanced. Speaking about balances, as the Minister of Finance mentioned in his presentation, we have had seven consecutive balanced budgets. This has never been done, not since Confederation in 1867, not federally, provincially or municipally. Therefore, I think that we can take pride in ourselves as a nation and as a government for being responsible in addressing the economic woes of the nation.
I also would like to compare things for a moment. The previous Conservative government, here prior to us, did not once meet a budget target. The Conservatives talked a lot about balancing the books, but instead the deficit kept going up. As a result, the debt kept going up as well. I am not here to blame them or to blame anybody; I am simply here to point out the differences.
What has that done for us? In essence it has secured our economic sovereignty, because we no longer find ourselves in danger in regard to the bond market, for example, knowing that year in and year out we have brought forth not just balanced books but surpluses. There are several reasons for that.
Yes, the economy did well, but why did it do well? Why were over three million jobs created in the last 10 years? Instead of a 12% unemployment rate, the rate is now 7.1%. Many people are working and paying into the system as opposed to drawing out of it. That of course helps the government generate revenue. In turn, the government can then put that revenue into various programs, which I will outline in my speech as well.
It is also very important to talk about our economy in terms of our debt to GDP ratio. In 1993-94 it was hovering around 69% or 70%. Today it is at around 42%. Surely Canadians who follow the activities of the government can look at that figure and say that we have really made a quantum leap toward better times. We have made a leap toward better times, especially for seniors, as was outlined by my colleague from Kitchener Centre, and for our youth in regard to the types of investments she mentioned and which I will also cover.
When we compare that economic position with others in the G-7, we can take pride in ourselves by saying that Canada stands number one in terms of economic activity, job creation, and prospects for the future in terms of our investments in research and development and in terms of our environment as well.
Our environment is a very important issue. Let us look at the investment in the environment that the government has made most recently. In the budget, the government announced an investment of $4 billion over 10 years to clean up contaminated sites. The Sydney tar ponds is one of those sites. This issue is important to all Canadians, not just members from the Atlantic provinces. It is going to be addressed today.
Our contingency reserve today is at $1.9 billion. Sometimes people say “big deal”, but I would rather have something on the plus side than something on the minus side. We know that in years past there was a contingency reserve of about $3 billion. If there was no need to access that money of course it went into debt retirement continuously. That is one of the main reasons why the debt has been reduced continuously on a year to year basis.
What benefit have we received as Canadians? Very clearly, a reduction in interest payments of close to $3 billion, which on a yearly basis permits us to put that money into various programs such as the education funds and the Canada millennium scholarship fund. I touch upon that because it was mentioned earlier by my colleague from Kitchener Centre in terms of wanting to create a smart Canada. In order to compete today, not only do we want to attract the best and the brightest, but we want to create and retain the best and the brightest.
Yes, it is very important that we tell our audiences that education is indeed a provincial jurisdiction. All we can do from this side as the federal government is support it. I have not heard too many complaints from post-secondary institutions and the people who run those institutions. I have heard nothing but praise in terms of the moneys that we have been able to put toward universities in terms of the research chairs right across the country, in which we have invested in the past.
With respect to the Canada pension plan and what was mentioned earlier, I think it is very significant to touch upon that as well. Indeed, in years past, the Canada pension plan was in jeopardy. What have we done? We have restructured it, of course, and today, actuarily speaking, we have secured the pension program for the next half century. God willing, in future years we will continue to improve, sustain and maintain it for the next half century after that.
I know that the budget was not everything to everyone. I know that no government, neither ours nor any other government, can do everything to satisfy everyone. Governments, through their programs and their investments, try to create a climate whereby each and every citizen of the said nation, in this case Canada, has the opportunity to create and to sustain and improve the lives of themselves, their families and their communities.
Part of that, as was mentioned earlier, is accountability and integrity. I know that the debate before us in the past has been in terms of the sponsorship issue, the sponsorship affair. I think we have done a disservice to the nation by not putting the facts out as they are, because Canadians today are saying that a hundred million dollars was wasted--
