Paul Martin

[Budget Surplus, November 4th, 1999]

Mr. Speaker, to give an example of transfer payments, since we became the government, for the Province of Quebec alone there have been in excess of $80 billion in transfer payments, that is equalization payments and the social transfer.

Over and above that, there have been $30 billion paid out in equalization payments since we took office. That is real money.

[Budget Surplus, November 4th, 1999]

New programs, Mr. Speaker? New programs like the infrastructure program, which was developed by our government in partnership with the provinces, and which the provinces wanted to have? New programs like Technology Partnerships Canada, under which 33% of the funding goes to Quebec? New programs like the Canadian Foundation for Innovation, which is funding all the research and development in Quebec universities and hospitals?

That is what we are doing.

[Budget Surplus, November 4th, 1999]

Mr. Speaker, I made it very clear in my economic statement in London that the five year private sector forecasts were only projections.

That having been said, yesterday I told the Bloc Quebecois leader that, last year, the federal government transferred $11.5 billion strictly for health over a five year period. At the same time, Quebec alone received $1.4 billion in equalization payments.

[Taxation, November 3rd, 1999]

Mr. Speaker, a Commons subcommittee held hearings and submitted a report on this matter last spring. It was a very valuable report and one that the government has certainly taken into consideration.

The finance committee will now be out. The hon. member is certainly welcome to make representations. As before, we will listen to what the finance committee has to say.

[Transfer Payments To Provinces, November 3rd, 1999]

Mr. Speaker, this is the same question, for which I have the same answer. When the past actions of this government are examined, what was done last year for example, there has been a $11.5 billion increase over five years. It is very clear that the federal government is prepared to assume its responsibilities.

Now, as far as the committee's recommendations are concerned, I am most anxious to hear what it has to say to us.

[Transfer Payments To Provinces, November 3rd, 1999]

Mr. Speaker, all the hon. member needs to do is to look at what this government has done in the past two years.

The first thing we did after eliminating the deficit was to increase transfer payments to the provinces.

[Research And Development, November 3rd, 1999]

Mr. Speaker, what is stopping the results of what we have done from getting through to the other side?

Let us talk about the debt to GDP ratio. In the last two years, Canada has had the most substantial drop in the debt to GDP ratio of any industrial country. That is what we have done. We have cut income taxes. We have cut them in each of the last three budgets. We are three years ahead of where the Reform Party said it would be if it were in office, but of course it will never be in office.

[Research And Development, November 3rd, 1999]

Mr. Speaker, we have the most generous R and D credits of any industrial country and they are working very well.

At the same time, we have outlined the approach we intend to take to tax reduction. We intend to make personal income tax reduction the priority. We intend to make families with children a priority within that. We also made it very clear that the government intends to move on business taxes to make sure that we have as competitive an area as possible when we have the room to manoeuvre to do so.

We understand full well the necessity of improving R and D. The issue really is why does the Reform Party not understand. Why has it opposed every single measure the government has brought forth in that area?

[Economic Statement By Minister Of Finance, November 3rd, 1999]

Mr. Speaker, there is no doubt that we are enormously concerned that there are children living in poverty. This is, moreover, the reason my colleagues in Cabinet have expanded several very significant programs.

I would like to mention a few: a $2 billion increase in the national child benefit; an improved child care tax credit, for a total of $45 million yearly; expansion of the community action program for children by $100 million yearly. And we will continue to—

[Taxation, November 3rd, 1999]

First, Mr. Speaker, of course they are. They have seen a 3% reduction toward the elimination of the surtax. They have seen a $675 increase in the threshold below which Canadians do not pay any taxes. We now have a situation where a family of two earning $30,000 pays absolutely no federal taxes. Where a family is earning $50,000, there is 15% decrease in taxes.

Those happen to be the facts. What we have also said is that in each and every budget, beginning with the next one, we will continue on that path.