Mr. Speaker, it is with great pleasure that I rise today to speak on our economy and the second budget implementation act of our government's economic action plan 2013. The implementation of these remaining provisions would have a tremendously positive impact on the lives of all Canadians. While many of the changes in Bill C-4 are technical in nature, many provide clear benefits for all Canadians.
Our Conservative government is focused on what matters to Canadians: growing the economy, helping to create jobs, balancing the budget and reducing the cost of government. We are achieving this with the longest-serving Minister of Finance in the G7 at the helm, who is providing Canada with strong fiscal leadership, management and responsibility.
Our actions have not gone unnoticed. Both the IMF and the OECD expect Canada to be among the strongest-growing economies in the G7 over this year and next. The World Economic Forum has rated Canada's banking system as the world's most sound for the fifth year in a row. Three credit rating agencies, Moody's, Fitch and Standard and Poor's, have all reaffirmed their top rating for Canada and expect it will maintain its AAA status in the year ahead. Canada's fiscal fundamentals are solid, and they are sustainable.
Canada is on a strong economic footing. Since the depth of the recession, over one million net new jobs have been created, mostly in high-wage industries. There are now 605,000 more jobs than at the pre-recession peak. This is the strongest job growth in the G7 over the course of the recovery. Almost 90% of all jobs created since July 2009 have been full-time positions, with close to 85% of those in the private sector. Also, the growth levels are above pre-recession levels, as I stated.
Jayson Myers, president and CEO of Canadian Manufacturers and Exporters, had this to say:
We have a strong Canadian dollar because investors around the world want to put their money into Canada. They see a better fiscal environment, a strong financial sector, and the strength of the resource sector.
A recent study by KPMG concluded that Canada's total business tax cost, which includes corporate income tax, capital taxes, sales tax, property taxes and wage-based taxes, is more than 40% lower than in the United States. In short, our government has created an environment that encourages new investment, growth and job creation, and ensures that Canada has the strongest fiscal position and lowest business tax costs in the G7.
Earlier this week, the media were reporting that last year's federal deficit came in at nearly $7 billion lower than projected. This is an undeniable sign that our government is on track to balance the budget in 2015-16, a promise we made to Canadians back in 2011.
As many Canadians are now aware, our government recently reached an agreement in principle on a free trade agreement with the European Union. This historic agreement will create thousands of jobs for Canadians and give Canadian business access to half a billion new customers. This is the biggest deal so far in Canadian history, and may be remembered as the biggest trade agreement that Canada has ever signed. The Canada–European Union Comprehensive Economic and Trade Agreement will open new markets to Canadian exporters throughout Europe and generate significant opportunities for all Canadians.The benefits of this agreement are equivalent to creating 80,000 net new jobs, or increasing the average Canadian household's annual income by $1,000.
On the first day that the agreement comes into force, 98% of all European Union tariffs will be eliminated, directly translating into increased profit and opportunity for Canadian businesses of all size and in every part of our country. Whether a fisherman in Atlantic Canada, a forestry worker in Quebec, an auto worker in Ontario, or an engineer in the west, each will benefit from this agreement. Jayson Myers went on to say that, “This is the Wayne Gretzky of trade deals”.
Canada's automobile industry, to name but one, stands to benefit tremendously from this deal. Currently, Canada exports approximately 13,000 vehicles a year to the European Union. This agreement will increase that number up to 100,000 units annually. It goes without saying that this increase in annual exports will have a direct correlation to the number of jobs in the Canadian automobile industry, undoubtedly adding hundreds, if not thousands, of employees to Canada's vehicle, equipment and parts manufacturing companies.
Kevin Williams, president of General Motors of Canada, had this to say:
We applaud Canada and the European Union for completing a modern, high-standard comprehensive economic and trade agreement that will provide enhanced opportunities for growth in both regions. We appreciate the hard work to find creative solutions that improve market access for Canadian-produced automobiles, while ensuring Canada continues to benefit from the integrated manufacturing sector that has developed in North America over the past 50 years.
Supporting small business is something our government takes very seriously. Small businesses make up to 98% of businesses in Canada, all of which are in the midst of celebrating Small Business Week. It makes me tremendously proud to speak about how this bill would provide support for Canada's job creators. This bill includes in it a number of key measures to support business, including extending and expanding the temporary hiring credit for small business for one year. Approximately 560,000 small businesses will benefit as a direct result of this measure. We are also increasing the lifetime capital gains exemption from $750,000 to $800,000 and indexing it going forward. The lifetime capital gains exemption will increase the reward for investing in small business.
In response to the global recession, the government froze the EI premium rate in 2010 at the lowest level since 1982. We are again freezing EI premium rates, this time at 2013 levels, for the next three years. With this freeze in 2014 alone, we are leaving $660 million in the pockets of job creators and Canadian workers. This tax relief will help provide employers, especially small businesses, with the certainty and flexibility that they need to keep growing.
Since forming government in 2006, our low-tax plan for Canada has allowed for small business to see their tax bills drop by 34%. Corporate income taxes have been lowered as well. In fact, Canada currently has the lowest corporate income tax rate in the OECD, as I referred to with regard to the KPMG report. That is a carrot that is more powerful and effective than any marketing campaign in attracting foreign investment to Canada.
In recognition of the ongoing uncertainty in the global economy, the bill also announces extending the temporary accelerated capital cost allowance for new investment in machinery and equipment in the manufacturing and processing sectors for an additional two years. This will provide the sector with support of $1.4 billion over four years for retooling, and will enhance competitiveness and economic growth and enable manufacturing and processing companies to plan and invest over the coming years.
We are delivering a new $53 billion building Canada plan to invest in Canada's public infrastructure over the next 10 years. This will create jobs, promote economic growth and provide a higher quality of life for families in every city and community across this great country. One of the new building Canada plan's three key funds, the community improvement fund, has had a direct investment in my riding of Don Valley West, by providing just under $1 million to the Canadian National Institute for the Blind. The funds are being used to renovate, and eventually reopen, the CNIB's pedestrian bridge, which has been closed since 2011. This bridge is essential for patients, visitors and employees to safely cross one of Toronto's busiest streets.
I will wrap up by saying that this bill puts forth a number of measures that are meant to respect taxpayers' dollars. While the opposition is busy focusing on issues that do not matter to Canadians, our government remains focused on the task at hand. We continue to look for ways to increase the efficiency of the inner workings of government and making sure that job creation and economic prosperity are at the forefront of any new legislation. With that in mind, this bill would make significant improvements that would benefit all Canadians.
