Mr. Speaker, I am pleased to rise in this House today to respond to the motion by the member for Sault Ste. Marie.
The member is concerned about jobs and the economy. I would remind him that the unemployment rate has not been this low for 30 years. Indeed, 325,000 jobs have been created during the past 12 months.
I also want to point out that family income is increasing steadily. In fact, real family income has increased twice as quickly in the five years between 2000 and 2005 as it did in the previous 20 years. The low income rate dropped from 15.7% in 1996 to 10.5% in 2006. That represents a great achievement.
However, as members of this House have discussed many times, there are industrial sectors where current economic conditions have muddied the waters. It is now recognized that the United States is in a recession. That was caused, in large measure, by the collapse of the residential mortgage market, which, in turn, had major consequences for the forestry sector. In addition, the rise of the Canadian dollar and higher energy prices have dealt a severe blow to the Canadian manufacturing sector.
On numerous occasions in recent months, this House has debated motions concerning the effectiveness of government programs to help communities and older workers affected by these economic conditions. The government has survived these motions.
We have proved many times that this House has confidence in the government’s programs. These include the $1 billion national community development trust and the targeted initiative for older workers, which has proved very effective in assisting workers in need.
But let me remind members of this House of certain facts as we prepare for a vote of confidence on the member’s motion.
Let me remind them that agreements under the national community development trust have been signed with all provinces and territories. Provincial and territorial governments will use those funds to provide occupational training, to prepare community transition plans and to carry out infrastructure projects to help diversify the local economy.
May I also remind members that the targeted initiative for older workers has been extended to March 2012, and that the total investment for this initiative has been increased to $160 million.
I want to remind them that we provided a billion dollars in tax relief to the manufacturing and processing sector in Canada by extending the accelerated capital cost allowance period.
I remind them as well of the new labour market agreements we signed with British Columbia, Ontario, Saskatchewan, New Brunswick and Manitoba. They will make it possible to provide training to people who do not qualify for employment insurance. Further agreements are currently being negotiated with other provinces and territories and will be signed in the coming months. The funding provided under these new agreements amounts to a total of $3 billion over six years.
Our government is clearly taking action to help the people who work in certain key sectors that are going through difficult times. Contrary to what the hon. member’s motion says, the government is reforming employment insurance. We are helping Canadians who have lost their jobs retrain for others. We are helping Canadians who are not eligible for employment insurance.
In response to the motion of the hon. member for Sault Ste. Marie, I hope that we can rise above the kind of debates we have heard over the last few months as the opposition parties attacked the government. The hon. members know all about the national community development trust. They know all about the targeted initiative for older workers. They also know all about the tax relief we have provided for manufacturers and processors, as well as the changes made to employment insurance.
I want to remind them, though, of all that the government is doing to ensure that the next generation of Canadian workers has the skills needed for a knowledge-based economy.
We are taking care of older workers and communities dependent on industries that are experiencing difficulty, while at the same time we are preparing the next generation to meet the challenges of the future.
Our goal is to create the best educated, most skilled and most flexible workforce in the world. We talk about the knowledge advantage, and it is our youngest people who will be the basis of it. We are giving the next generation of Canadians a chance to excel in the knowledge-based economy by investing massively in post-secondary education.
We made some major commitments in the last federal budget to encourage young people to pursue post-secondary studies and invest in lifelong learning. By post-secondary education, we mean college and university as well as learning a trade.
We improved the Canada student loans program. We spoke with students. Their message was very clear: they need immediate, ongoing financial assistance. And we listened to them.
We introduced the new Canada student grant program, which will come into effect in the fall of 2009. The 2008 budget provides for an investment of $350 million in 2009-10, rising to $430 million in 2012-13. Students from low- and middle-income families who qualify for student loans will automatically be given a grant. It will cover all years of an undergraduate or college program.
The grants will be based on family income, and unlike the Canada millennium scholarships, they will help students in technical schools to continue their education, as well as students in colleges and universities. If a student comes from a low-income family, he or she will be given a grant of $250 per month. If the student comes from a middle-income family, he or she will receive $100 per month. Students will receive this money for each year they are in school. In the first year alone, we believe we will be able to assist 245,000 students. And let us be clear, these are grants, not loans.
This government will invest over $123 million in financial aid to students in the next four years, and $350 million in the Canada student grant program in 2009-10 alone. We will be investing in post-secondary education under the Canada social transfer through transfer payments to the provinces. Transfers will rise to $3.2 billion and will continue to rise by 3% per year until 2013-14.
We are also helping students and their families to save for their education and pay tuition fees and other expenses, through tax measures totalling $1.8 billion, which includes registered education savings plans.
This government is investing $2.7 billion in research and other related activities. This will allow us to prepare a new generation of Canadian workers to take their place at the head of an economy that runs on innovation and knowledge.
To conclude, we know that even with a dynamic economy, some sectors have been hard hit. We have taken measures, by using the tax system, by investing in communities and by introducing a program to help older workers, to meet the needs that are there.
But in the meantime, we are helping a new generation of Canadians to take their place in the new economy, a generation of workers who will have the training, the knowledge and the skills to meet the challenges to come.
It is to this government’s credit that it has introduced and administered a broad range of programs and projects to address the present economic situation, while at the same time building the economy of tomorrow.