Mr. Speaker, it is great for me to participate in these prebudget consultations. I think it is paramount that all of us in this House have that chance to speak for all Canadians.
As everyone in this House is quite aware, we live in a global economy with very fierce competition and growing uncertainty from time to time. In an environment like that, government needs to find bold and innovative ways to stay ahead of the curve. Part of that process is, as insinuated early, listening to Canadians. That is why we hold these prebudget consultations every year.
We look to Canadians for ideas to help the government create an environment that rewards hard work, encourages growth and improves our quality of life. We are well on our way down that road.
We are making broad-based, long term tax reductions.
We are reducing record amounts of debt. That is something that we have to continue to do. We have to look at the debt that this country has incurred and that has been added to since the 1970s as mortgages on people's houses that they pass on to their children and their grandchildren. I do not want my granddaughter and any possible future grandchildren to have that debt. We need to work on it all the time.
We are spending responsibly and efficiently.
While Canada is certainly on a solid financial footing, we are mindful of the various challenges that confront us; global pressures and domestic challenges that vary from region to region and certainly from sector to sector.
Some examples that come immediately to mind are: the appreciation of the Canadian dollar that has left a variety of sectors struggling; increasing economic competition from abroad, especially from emerging economies like China, Brazil and India; and, aging infrastructure and increased gridlock. We have to address these issues.
These challenges require a clear plan to guide us into the future. That plan is our long term economic plan called “Advantage Canada”.
The “Advantage Canada” plan focuses on creating five key advantages: a tax advantage, a knowledge advantage, an entrepreneurial advantage, a fiscal advantage, and an infrastructure advantage.
On the last point, an infrastructure advantage, Canadians have told the government that they are concerned about the state of Canada's infrastructure: our roads, bridges and public transit.
I can tell members that those concerns are no less warranted in my riding of Bruce—Grey—Owen Sound. I hear from my former colleagues in municipal government, the mayor and councillors there today, that it is one of their biggest concerns at that level and I certainly understand that. We are going a long way toward addressing that.
In addressing that, we are making the largest investment in infrastructure since World War II, $33 billion over seven years, through this building Canada plan. This is new money to build roads and rapid transit lines, rehabilitate bridges and water systems, and upgrade our international gateways, trade corridors and sewage treatment plants.
So, what exactly is our building Canada plan? Building Canada would fund strategic investments in projects designed to produce results in three areas of national importance: a growing economy, a clean environment, and strong and prosperous communities.
Building Canada would provide long term, predictable funding right up to the year 2014. It would provide the provinces, territories and municipalities with the certainty they have been looking for. In fact, over half of the funding under the building Canada plan would be provided directly to municipalities.
Specific elements of the plan would include maintaining the increase to 100% in the GST rebate, which, combined with the GST rate reduction, would provide municipalities with $5.8 billion in predictable revenue from now through to 2014 that could be used for infrastructure priorities.
I remember my 12.5 years in municipal government. It always irked me that municipalities had to pay GST on any of the projects and any of the purchases that they made. We did get 58% of it back, but it still was not right. It took staff time and government staff time as well. This is clean and it should have been done years ago.
We would also maintain and extend the federal gas tax fund, providing municipalities with $11.8 billion over the next seven years for a range of infrastructure investments such as public transit, water and waste water infrastructure, and local roads.
The plan will create an $8.8 billion Building Canada fund that will in part support larger strategic infrastructure investments of national and regional significance, such as improvements for the core national highway system.
As well, the Building Canada fund will provide the necessary financial support to smaller community-based infrastructure projects. I have a lot of those in my rural riding.
Building Canada focuses on upgrading our border crossings and gateways through our $2.1 billion gateway and border crossings fund. This includes a significant investment in a new crossing between Detroit and Windsor to improve the flow of traffic at our most important gateway.
The plan will provide $1 billion for our Asia-Pacific gateway and corridor initiative. Through this initiative we are making important infrastructure investments that will allow Canada to take advantage of the growing Asia-Pacific market.
Each province and territory will be provided with $25 million minimum in base infrastructure funding annually, which amounts to $175 million each over the next seven years.
The plan establishes a $1.26 billion public private partnership fund, the first initiative of its kind in Canada, something that really excites me. We are also providing $25 million over five years to set up a federal public private partnership office.
On this public private partnership, or P3s as it is commonly known, the government is doing its part by providing long term, predictable infrastructure funding. There are not many instances of a better way, a different way, of doing business than the use of public private partnerships.
There are many success stories in other countries around the world. Perhaps one of the best known in Canada is the Confederation Bridge linking Prince Edward Island and New Brunswick. I had the privilege of crossing that bridge this past summer. It is quite a sight. This kind of public private partnership has worked very well there. Another good example is the Royal Ottawa Hospital right here in Ottawa.
When managed properly, P3s can help close the infrastructure gap. We have to be innovative in finding ways to address the infrastructure deficit in this country. I would like to emphasize that smart investments in infrastructure drive productivity, support trade, and fuel economic growth.
In today's highly competitive, just in time world, modern, efficient infrastructure is not a luxury; it is a necessity. Replacing our aging infrastructure is going to be a challenge. It is also a priority if Canada is to continue to be competitive in today's global economy.
We need our roads, our bridges, and our trade corridors in order to move our goods efficiently. We also need public transit to move our people quickly and safely but also to decrease the effect and harm to the environment.
We need our water systems to provide us with clean water.
Following our “Advantage Canada” plan, our government has developed a forward looking infrastructure renewal plan that balances regional needs with national priorities.
Building Canada provides historic and long term funding for provinces, territories and municipalities, so they can build modern and healthy communities today and for future generations.
