Paul Martin

[Government's Credit Rating, March 22nd, 1994]

Mr. Speaker, the only inflation I hear about in this House is that party that wants to inflate the number of members of Parliament who are in this House.

Let us be very clear. Prior to Christmas the Government of Canada and the Governor of the Bank of Canada arrived at a set of monetary targets which we did within the first month of taking office, something that it took the previous government two and a half years to arrive at. Those monetary targets are among the most stringent of any industrial country in the world and we are very proud of them.

This is a low inflation country. We have paid a great penalty to get there. We are not going to lose the benefit. We are going to remain a low inflation country.

[Government's Credit Rating, March 22nd, 1994]

Mr. Speaker, first of all our budget was well received by the majority of the rating agencies.

Second, we very clearly set out that in the first stage of our budget that we were going to arrive in three years at a deficit target of 3 per cent of GDP and it will be the first time in the last 15 to 20 years that that has been attained.

Furthermore, we said this is the first stage of a two-stage budget. We also said that cutting at the margins and nibbling at the edges does not apply. Fundamental reform to unemployment insurance, to defence, and the way the government operates is what is required and that is what this government is going to do.

[Government's Credit Rating, March 22nd, 1994]

Mr. Speaker, what the DBRS said was that we have a high level of foreign debt at the federal-provincial level, that is the corporate level. That is true. That is the situation. We as a country are heavily indebted at the federal and provincial levels and it is going require co-operation with the provinces which we have already begun, and that is true.

The Dominion Bond Rating Service said that our productivity is up, our inflation rates are down and there is great room for strength within this economy. It also said that it was putting the downgrade on but 2 per cent of our foreign debt and it maintained the triple-A level on our Canadian debt.

[Government's Credit Rating, March 22nd, 1994]

Mr. Speaker, I have not heard the Bloc Quebecois propose any cuts. All I heard was: "Do not touch military bases. Do not touch unemployment insurance. No reform. No restructuring. Do not do a single thing." That is the Bloc's position. So, we have no lesson to take from them.

[Government's Credit Rating, March 22nd, 1994]

Mr. Speaker, in lowering this rating, the

DBRS was following the lead taken by another agency last year, that is to say before our budget. So, no connection can possibly be made between our budget and what has just happened.

Second, this rating relates to only 2 per cent of our debt, namely foreign currency. As for the budget, it is very unequivocal. Our goal is to bring the deficit down to 3 per cent of the gross domestic product within three years. We will achieve our goal and ultimately eliminate the deficit. That is our goal and we will achieve it.

[Mil Davie Shipyards, March 21st, 1994]

As you know, Mr. Speaker, the Federal Office of Regional Development-Quebec has decided, not only because resources were scarce but also to focus more on those areas which create the most jobs, to concentrate its efforts on small business and new technologies.

Therefore, as the Minister responsible for the Federal Office, I will concentrate on small business and new technologies, and let other ministers deal with shipyards and transportation issues.

Let the hon. member have no fear. There are 19 of us from Quebec in our caucus, including the acting Minister of Regional Development, Mr. Massé, the Minister of Foreign Affairs, the Minister of Canadian Heritage and the Prime Minister. All of us are here to take care of Quebec's interests.

[Ethanol, March 21st, 1994]

Mr. Speaker, every time this particular Minister of Finance has speculated he has got himself into a lot of trouble. Let me say to the member for Leeds-Grenville and indeed to all members of the House-I see the member for Kent, as an example-who have spoken to me about this very important issue that we recognize, both in terms of its contribution to the environment and its contribution to agriculture, the tremendous potential that exists in ethanol as a fuel.

Given that and because of the representations made we certainly have no intention of reinstituting any kind of an excise tax on ethanol. That was said in the budget. I can tell the member unequivocally that is our current intention and will be so certainly for the duration of this particular government, at least as long as I am the Minister of Finance, but I do not know how long that is going to be.

[Hyundai Car Plant, March 21st, 1994]

Mr. Speaker, this would certainly be the objective of our government and of the Government of Quebec. This is why we have begun discussions with the provincial government and with the company, to see whether we can come up with an alternative proposal should the plant remain closed.

[Hyundai Car Plant, March 21st, 1994]

Mr. Speaker, this is a very valid question. As I stated in an earlier answer, we are extremely disappointed that Hyundai has delayed the reopening of its plant. The federal office has already begun discussions with Hyundai and the Minister of Industry also plans to take up this matter with the company. With respect to grants-and the question is perfectly relevant-we are now in the process of determining, along with the Government of Quebec, what our exact position on this matter will be.

[Child Care, March 21st, 1994]

Mr. Speaker, there are substantial expenditure cuts within our budget.

It does not take a close observation of the numbers to understand that we are not going to eliminate the deficit unless at the same time that we are cutting we are getting the economy going, creating jobs and getting some growth.

Let me say one thing. We as a government have said that the major element of job creation is the private sector. The element of the private sector which is going to do that is small and medium sized business. The member opposite ought to realize that women entrepreneurs do the majority of successful start-ups in small and medium sized businesses. They are the ones who want the child care.