Mr. Speaker, I take the floor today as the member for Beauce and as Minister of Industry to discuss the importance of the budget for my constituents and for all Canadians. I will be sharing my time with the hon. member for Wetaskiwin. My great thanks to him for expressing his point of view.
Last February 6, the Prime Minister formed a new government, a government that has a clear mandate to meet the important challenges facing all Canadians. The budget has given shape to many of our commitments, and we will continue to keep our word.
The first decision of this government has been to move quickly to enhance accountability to Canadians and ensure that government operations are more transparent. The federal accountability action plan, released last April 11, presents a wide range of reforms which were necessary after 13 long years of Liberal regime.
We promised to cut back the GST. The budget provides for a one-percent reduction of the GST as of July 1. We also promised to introduce the universal child care plan in Canada. As of July 1, Canadian families will receive $100 per month, or $1,200 per year, for each child under age six, to pay for child care expenses. In addition, there are concrete measures to improve health care and combat crime in Canada.
The hon. finance minister has tabled a budget which fulfils the commitments made in the last election campaign. Like the great majority of Canadians, I am very pleased to support this budget today. I would like the opposition to give the budget its support as well. In addition to respecting our priorities, this budget contains more tax reductions than the last four federal Liberal budgets combined.
Allow me now to speak of the budget measures which more particularly concern the department I head, the Department of Industry. First of all, the budget establishes a much more transparent planning framework, as it has a realistic two-year planning horizon, instead of the five years used by the former government.
Furthermore, it puts the government’s finances in order by providing for control over increases in the rate of spending. Our expenditures will target concrete, tangible results. Taxpayers’ money will be spent under strict guidelines, thereby helping us find ways to save.
For years, the previous government generated surpluses at the expense of taxpayers. It then looked for ways to use those surpluses and its tax revenues by interfering in provincial fields of jurisdiction.
This government, however, recognizes that this money belongs to Canadian and Quebec taxpayers, including the people of Beauce, and that it should be given back to taxpayers. Sound financial management also means that we must pay for costs from the past. Thus, the government intends to reduce the federal debt by $3 billion a year. Yes, you heard correctly, $3 billion each year. Our goal is to reduce Canada's debt-GDP ratio to 25% by 2013, which is one year earlier than planned.
The federal government's communication of financial information will also be improved, in order to give Canadians the transparency they expect from us, their elected members.
Let us take a moment now to talk about productivity and competitiveness, two terms that are very important to me as Minister of Industry. Tax rates have a considerable impact on the productivity and competitiveness of businesses in Canada, Quebec and the Beauce region. My background is in business and I know that every entrepreneur will have their own suggestions for dealing with the economic factors that affect their business. However, I can assure you that all entrepreneurs in my riding and throughout Canada agree on one thing: the importance of reducing the tax burden and the importance of reducing taxes. The 2006 budget does just that.
The new Conservative government's budget facilitates the competitiveness and productivity of Canadian businesses by leaving more money in the hands of entrepreneurs so that they can properly manage their business.
They know better what is good for their businesses than we do here in Ottawa. That is why we are cutting taxes so that they can reinvest this money and create jobs.
Canadian businesses are applauding our decision to cut back the corporate tax rate, which will fall from 21% to 19% by 2010. These businesses are also applauding our decision to eliminate the corporate surtax by January 1, 2008.
Some of these tax changes particularly affect small and medium-size businesses, which drive the economy in the regions and create jobs everywhere in Canada.
After years of half-measures and programs developed by the previous government that never kept its promises, and after listening to concerns of small and medium-size businesses about tax rates, our new Conservative government took action. It took action in this budget. First, we are going to raise the maximum revenue threshold for eligibility for the small and medium-size business tax rate from $300,000 to $400,000 by next January. Better yet, we are going to cut the tax rate for small and medium-size businesses to 11.5% by January 2008 and then cut it again to 11% by 2009. These tax cuts will enable businesses to create jobs and be more competitive on the international scene.
Our new government knows as well that the innovative companies which help our economy grow must sometimes work for years—sometimes many long years—before they are able to penetrate international markets. These companies will benefit from our decision to allow non-capital losses and investment tax credits to be carried over for up to 20 years. This includes the scientific research and experimental development tax credit, which is one of our government’s most important measures to support innovation.
Another important aspect of the budget is the support our government provides for research and development in Canada. This budget provides $100 million a year in additional funding for this area, which is crucial for the Canadian economy.
This new funding includes an additional $400 million a year for the three large granting agencies that support much of the research done in Canada. The Canadian Institutes of Health Research and the Natural Sciences and Engineering Research Council will each receive an additional $17 million a year, and the Social Sciences and Humanities Research Council will receive an additional $6 million.
Beyond these commitments, our government has selected two other approaches to meet the needs of our research institutions. First of all, we are increasing the funding paid to universities to defray indirect research costs. The budget dedicated to indirect research costs will rise from $260 million to $300 million a year. Second, the government is undertaking to build a dynamic research community by contributing $20 million to the Canadian Foundation for Innovation’s Leaders Opportunity Fund for 2006-07 and 2007-08.
I am very happy to talk today and let the House know about an important commitment in our budget, namely fiscal balance. There is another reason why I am pleased to support this budget: our new government understands the importance of restoring the fiscal balance in Canada. Unlike the former government, our government’s budget contains a clear and precise road map for getting there.
Our government has been working hard since the first day and is fulfilling its commitments. We have already accomplished much for Canada in a short time. The 2006 budget shows that we are determined to get even more results for Canadians. This is why I am asking all the members in the House to support the budget.
