moved:
That this House take note of the Canadian economy, and
(a) recognize that Canadians' top priority remains economic growth and job creation; and
(b) commend the government's economic record which includes the creation of more than one million net new jobs since July 2009, a banking system recognized as the safest and soundest in the world for the past six years, and the lowest debt-to-GDP ratio among G7 countries.
Mr. Speaker, I want to thank all parties for the speeches that have just been given in congratulations of the birth of Prince George.
It was an important moment to sit here and listen to all parties being on the same page. I am optimistic. We are moving into debate on the throne speech, and maybe it will carry on and we will all be able to support this very good throne speech.
I am very pleased to rise in the House on this day and take part in today's debate. Two and a half years ago, Canadians elected our government with clear instructions: navigate the global economy; create jobs; create growth; keep taxes low.
Canada has faced challenging times, and we have made some tough decisions. I am pleased to say that we have made the right decisions, the right choices, for Canadian employees, businesses, families and communities.
The results of these choices are clear. Debt is low and deficits are falling. Businesses are creating new jobs, new opportunities for Canadians, and Canadians are working today more than ever before. Under the strong leadership of the Prime Minister, and as we all know, the world's greatest finance minister, Canada has weathered the economic storm well, and the world has noticed.
Both the International Monetary Fund and the Organisation for Economic Co-operation and Development expect Canada to be among the strongest growing economies in the G7 over this year and next year. For the sixth year in a row, the World Economic Forum has rated Canada's banking system as being the world's soundest. Real gross domestic product is significantly above pre-recession levels, the best performance in the G7. In addition, three credit rating agencies—Moody's, Fitch, and Standard & Poor's—have reaffirmed their top rating for Canada, and it is expected that Canada will maintain its triple A rating in the years ahead.
Since the depth of the recession, over one million net new jobs have been created, an outstanding achievement for Canada and the best record in the G7. In fact, we are not only leading the G7 in job creation but also on the strength of our balance sheet and in political stability. However, as we all know, and are too often reminded, the global economic recovery is fragile, and global economic turbulence remains. Our largest trading partners, the United States and Europe, continue to wrestle with serious challenges and are struggling to find lasting, effective solutions. Not only is the global economy uncertain, it is also increasingly competitive. Canada faces increasing competition from a host of rising powers.
In addition to the threats to the Canadian economy that lie beyond our borders and beyond our shores, I am concerned about the potential threats to the Canadian economy from within our own nation, such as the threats we hear from the leader of the New Democratic Party. As if imposing a $20-billion carbon tax was not enough, the leader of the New Democratic Party has another multibillion dollar tax hike that he would love to impose on Canadians. Last week, the New Democratic Party leader reaffirmed his plan to take over $10 billion each year out of the pockets of Canadian entrepreneurs, out of the pockets of Canadian business, to fund big, bloated government schemes.
As I traveled throughout my constituency this summer, I did not hear anyone suggest that Ottawa needed more money and that they needed less. Everyone wanted just the opposite. The New Democratic Party tax hike would target job creators, especially small and medium-sized companies, with a nearly 50% increase in their tax bill.
This NDP tax scheme would kill jobs and stall the Canadian economy, all of this during a time of global economic uncertainty.
Canadians know better. That is why Canadians gave our Conservative government a mandate to keep their taxes low. I am pleased to report that this is exactly what we have done and continue to do.
Dan Kelly, president of the Canadian Federation of Independent Business, said:
At a time when the economic recovery is still quite fragile, it’s important that governments focus on balancing their budgets and not hitting entrepreneurs with payroll tax hikes.
We agree with him.
Year after year we have lowered taxes not just for business but for families and indeed for all Canadians. For example, we have cut the GST from 7% to 6% to 5%. We have established a $5,000 tax credit for first-time home buyers. We have reduced the lowest personal income tax rate and have increased the basic personal exemption. We have introduced income splitting and pension splitting for seniors. Overall, the federal tax burden is at its lowest level in 50 years. As a result of our government's low tax plan, in 2013 the average family now pays $3,200 less in taxes than it paid in the past.
Not only are we delivering on our promise to keep taxes low, we are also delivering on our commitment to balance the budget. Last year's deficit was less than forecast. Our government will balance the budget in 2015.
Unlike the opposition members, who support reckless tax-and-spend policies, our government knows that Canada needs responsible fiscal management. Responsible fiscal management ensures the sustainability of public services and lowers the tax rate for future generations. In an uncertain global economy, the most important contribution our government can make to bolster confidence and growth is to maintain a sound fiscal position.
I will quote Denis Mahoney, chair of St. John's Board of Trade, who said:
We are pleased that the federal government is staying the course of their long-term plan. There is still much volatility in the global economy and a prudent course of action is a safe course of action for our federal economy.
We agree with him.
Just as our government manages debt, we are also tackling spending. We are reducing the size and cost of government to ensure that tax payers get value for their money. Through economic action plan 2013, we announced further savings in government spending totalling $2 billion through numerous common-sense improvements. These include reducing wasteful departmental spending, reducing travel costs through the use of videoconferencing and other technology, and eliminating tax loopholes.
Economic action plan 2013 announced a number of measures to close tax loopholes to address aggressive tax planning, to clarify tax rules, to combat international tax evasion and aggressive tax avoidance, and to improve tax fairness. Ensuring that everyone pays their fair share helps to keep taxes low for Canadian families and businesses, thereby improving the incentive to work, improving the incentive to save, and improving the incentive to invest back in Canada.
By 2017-18, both program expenses as a share of gross domestic product and the federal debt-to-GDP ratio are expected to fall to pre-recession levels.
Our government's commitment to sound public finances will help to ensure that Canada will by far maintain the lowest debt burden among the G7 countries. This is just one of the many ways we are leading the G7. I mentioned earlier that we lead the G7 in job creation.
In regard to economic action plan 2013, Lori Mathison, chair of the Government Budget and Finance Committee of the Vancouver Board of Trade, commented that our government is “...demonstrating a commitment to returning to a balanced budget in the short term, but at the same time, supporting economic growth and job creation”.
Ms. Mathison is correct. Since we introduced the economic action plan to respond to the global recession, Canada has recovered more than all of the output and all of the jobs lost during the recession. Since July 2009, employment has increased by over one million and is now 605,000 above its pre-recession peak, the strongest job growth among the G7 countries over the recovery. Almost 90% of all jobs created since July 2009 have been in full-time positions. Close to 85% of those jobs are in the private sector, and about 60% of those jobs are in high-wage industries.
These statistics are just a few of the many examples that demonstrate our strong record on job creation, but they also demonstrate that we have not been willing just to stay there, just to stop there.
Economic action plan 2013 also helps connect more Canadians with available jobs. This includes the creation of the Canada job grant, providing $15,000 more per person in combined federal, provincial or territorial and employer funding to help Canadians get the skills they need for real jobs that are in demand. We have strengthened the apprenticeship program, making it easier to get needed experience for journeyman status. We are supporting job opportunities by providing tools to persons with disabilities, youth, aboriginals and recent immigrants to help them find a job. Economic action plan 2013 will not only help individuals to find employment, but it will help all business, small, medium and large alike. It will help them to succeed.
For example, the hiring credit for small business will be expanded and extended for one year, allowing Canadian small business to reinvest $225 million in job creation. Our plan will increase support for small-business owners, farmers and fishermen by raising the lifetime capital gains exemption to $800,000 in 2014 and indexing the new limit to inflation, thereby providing federal tax relief of $110 million over five years.
In the forestry sector, we will provide $92 million over two years, starting in 2014-2015, to continue to support the industry's ongoing transformation to higher value activities and its expansion into new export markets.
Our government is also announcing economic and security initiatives that will implement Canada's commitments under the Canada–U.S. beyond the border action plan, with a view to ensuring the secure and efficient flow of legitimate goods and people across the border.
I could go on, but I also want to say a few words about our government's investments in world-class research and innovation. Since 2006, our government has provided more than $9 billion in new resources to support science, technology and the growth of innovative firms, helping to foster a world-class research and innovation system that supports Canadian businesses and economic growth. Canada's entrepreneurs and risk takers are confronted with the many challenges of a globally competitive marketplace. As the global economy becomes more competitive, Canada must continue to break through with new ideas, so our businesses can become more competitive and create and sustain high-paying, value-added jobs. By supporting advanced research and technology, our government is choosing to invest in the current and future prosperity of Canadians.
To ensure that Canada remains a global research and innovation leader, economic action plan 2013 announced a number of investments, including $225 million to support advanced research infrastructure and the Canadian Foundation for Innovation long-term operations.
In addition, there will be $37 million annually to strengthen partnerships between industry and researchers, to help transform knowledge into innovative new products and services; $20 million over three years to help small and medium-sized enterprises access research and business development services at a not-for-profit research institution of their choice; and $325 million over eight years to Sustainable Development Technology Canada to support the development and demonstration of new clean technologies, which can save businesses money, create high-paying jobs and drive innovation. By consistently supporting advanced research and technology, our government is choosing to invest in the current and future prosperity of Canadians.
We are also choosing to invest in infrastructure. That is no secret. We have been doing that over the period of the global downturn. Infrastructure investment creates jobs, supports trade, drives productivity, and contributes to economic growth and prosperity. For Canadians, our government's infrastructure investments will mean less pressure on daily work life, less congestion and shorter commutes, which mean more time at home with their families.
That is why this year our government launched the new building Canada plan, the largest long-term federal commitment to job-creating infrastructure in our nation's history. Over the next decade, we will invest $70 billion in federal, provincial, territorial and community infrastructure. This includes projects such as making improvements to Highway 63 in Fort McMurray, Alberta; building subways in the Greater Toronto Area; replacing Montreal's Champlain Bridge; building a new Windsor-Detroit crossing; and the twinning of Highway 11 in Saskatchewan. All of these projects will create jobs and are welcomed by communities across Canada.
Let me quote the mayor of Regina, who said he is “glad there's a long-term, predictable, sustainable infrastructure investment in Saskatchewan, in Regina, and right around the country”. The Toronto Region Board of Trade “commends the federal government for making important, long term enhancements to infrastructure development while supporting economic growth”. It agrees that “Long-term, predictable and sustainable infrastructure financing is imperative to helping build the Toronto region transportation plan...”. The board stated that it is “pleased the federal government has renewed its commitment to helping meet this objective”. Mark Gerretsen, Mayor of Kingston, said he is “pleased to see infrastructure spending“ and that our government's long-term commitment to infrastructure investment allows Kingston to better plan for infrastructure priorities.
Of course, there are many other steps we are taking to create jobs, many other steps that are promoting growth and many other steps that are helping to realize long-term prosperity for Canada and for Canadians. I have only had time this morning to highlight a few. Thanks to our strong leadership, Canada is universally recognized for its resilience through the global recession and recovery, its low-tax environment, its highly educated and skilled labour force, its natural resource endowments and a financial sector that is the envy of the world.
By staying the course, the Government of Canada will continue to promote economic growth, continue to work toward job creation and continue to plan for the prosperity of all Canadians.