Paul Martin

[Interest Rates, March 23rd, 1994]

Mr. Speaker, the interest rate projections are simply part of a series of projections within the budget. We remain confident that we are going to attain the objectives of the budget.

We are going to have the opportunity to sit down some time after Easter with members of the Reform Party, as has been described in discussions with Mr. Speaker and myself. We are quite prepared to go through all of the various scenarios and discuss a multitude of contingencies.

Let me say one thing to the member. We are confident that we are not going to need a contingency plan because we are going to hit our targets.

[Interest Rates, March 23rd, 1994]

Mr. Speaker, we remain very confident in the objectives and our ability to attain the objectives that have been set out in the budget.

As I mentioned, the deficit projections that we made, the question of revenues and expenditures, are based on a series of projections. While the member is obviously right in terms of long term interest rates, the fact is that we are nonetheless easily within the safe side on the vast majority of our projections.

I would like to say one other thing. The member made reference to my use of the word conservatism and the use of the same word by my parliamentary secretary. I share that difficulty. I wish I could find another word, Mr. Speaker.

[Interest Rates, March 23rd, 1994]

Mr. Speaker, the member's statement in terms of the short term interest rates is a little out of date as of the present time, although the numbers he cited were good as of about ten o'clock this morning.

The member is nonetheless right in one area and that is on the long term rates. The long term rates are higher than those which we projected.

When one looks at the degree of conservatism which we built into all of the forecasts, that is to say in terms of growth, inflation and interest rates, we are very confident that the projections we have made in our budget will be attained.

[Job Creation, March 23rd, 1994]

Mr. Speaker, there is no doubt in our minds that job creation is our number one priority. That is why we were so happy to see that 66,000 new jobs had been created in Canada in February, as I just mentioned, 15,000 of which are in Quebec.

Let us assess the situation: consumer confidence has grown 13 per cent during the fourth quarter; retail sales increased by 1.2 per cent in January, following a 1.1 per cent increase in December; and car sales have increased significantly. Our economy is growing, and that is because of the confidence Canadians have in us.

[Job Creation, March 23rd, 1994]

First of all, Mr. Speaker, I must say we were better off before the hon. member put his question. I want to congratulate him on the way he read the quote.

As far as the question is concerned, is the hon. member going back on what his own leader said? Is he telling us that maybe we should not preserve what has been achieved in the fight against inflation, at the price of so much effort, as we know? Is the hon. member actually saying that we should not have low interest rates in this country? Should we not take advantage of these lower rates to stimulate employment in Canada? Is he denying all he has learned as an economics student? Not likely. Maybe. He says he denies it. What is he denying, the denial or having studied economics?

[Government's Credit Rating, March 23rd, 1994]

Mr. Speaker, regarding our fight against unemployment, our job-creation plan was endorsed by the G-7 countries, by France, Germany and the United States.

When we look at the results for the month of February, 66,000 new jobs were created, including 15,000 in Quebec. And when we look at what we did by lowering unemployment insurance premiums, everything we did for small and medium-sized businesses, the high-tech networks, when we look at the action plan to create jobs, it must be said that this government is doing the right thing.

[Government's Credit Rating, March 23rd, 1994]

Yes, I am looking at you, Mr. Speaker. It is much better than looking elsewhere.

First of all, interest rates even today are much lower than they were three months, six months or a year ago. Second, as you know full well, the increase in interest rates is due to international reasons that have nothing to do with the situation here in Canada.

As far as budget cuts are concerned, we gave the Leader of the Opposition and his colleagues the opportunity to make suggestions in a pre-budget debate; they did not take that opportunity, so what are they telling us now?

[Government's Credit Rating, March 23rd, 1994]

Mr. Speaker, I cannot believe that the Leader of the Opposition who criticizes us at every turn because we have cut military bases, reformed unemployment insurance, and trimmed government machinery, who spent three months criticizing our cuts, suddenly rises to tell us we did not cut enough.

So I ask you this: Where do you want us to cut? Tell us exactly in what areas!

[Hyundai Plant In Bromont, March 22nd, 1994]

Mr. Speaker, the money provided, that is $23 million by the federal but $46 million in total by the two levels of government, is guaranteed. It is protected. What we will do really depends on the outcome of the discussions which will be initiated on Friday with the company.

[Hyundai Plant In Bromont, March 22nd, 1994]

Mr. Speaker, this Friday, officials from the Quebec Government, the Federal Office of Regional Development and Hyundai will meet, and we hope that the company will propose a recovery plan or some options. Following this meeting, senior officials from both governments will meet with us, that is myself as minister responsible for the Federal Office, the federal Minister of Industry, and Quebec government's officials, at which time appropriate decisions can be made.