Mr. Speaker, on October 4, the Minister of Finance tabled the keeping Canada's economy and jobs growing act, which is integral to maintaining our country's economic strength and resilience. I am privileged to speak about this important legislation.
On May 2, Canadians gave this government a mandate to stay focused on what matters: jobs and the economy. Canadians recognized our government's strong track record with managing the country's finances in a fair and effective manner.
The budget is part of a process of government. Since 2006, each Conservative budget has built upon the success of previous budgets, with the purpose of ensuring Canada's economy is the strongest in the world. This legislation represents a continuation of previous budgets, the next phase of Canada's economic action plan.
The opposition would have Canadians believe that our government has mismanaged the global economic downturn, but the facts show the opposite is the truth. I can personally assert that the $60 billion in targeted stimulus did indeed work by setting examples within my own riding of Oakville. Federal contributions to a waste water treatment plant, a new Oakville transit facility and a new training facility for the Operating Engineers Institute of Ontario demonstrate the effectiveness of Canada's economic action plan. These improvements have yielded hundreds of local jobs, opportunities for upward job mobility and a general improvement in the economic outlook of many of my constituents. This is just one way in which the stimulus package is working for Canadians.
Other encouraging developments have lately materialized. On October 7, Statistics Canada announced that 60,000 net new jobs were created in September across Canada, while the unemployment rate fell to 7.1%, the lowest rate of unemployment since before the recession. Canada has now created nearly 650,000 net new jobs in total since July 2009, most of which are well-paying full-time jobs. This is a remarkable feat considering the current global economic climate.
Canada's economic strength and resilience has not gone unnoticed. Allow me to highlight just some of the recognition and praise Canada has received internationally.
The International Monetary Fund has forecasted Canada will have the strongest economic growth among the G7 countries over the next two years and praised Canada's “healthy economic fundamentals”.
The World Economic Forum's Global Competitiveness Report determined Canada's financial system to be the soundest in the world.
Forbes magazine has determined that Canada is the best place to do business, period.
Moody's has renewed Canada's triple A credit rating “due to our economic resiliency, very high government financial strength, and a low susceptibility to event risk”.
Even private sector economists are singing the praises of our government's achievements. BMO Chief Economist Doug Porter stated before the House finance committee on September 27, “Canada's economic policy-making has been exemplary”, while Scotiabank's Chief Economist Warren Jestin stated in the Journal of Commerce, “Canada is the best place to be and almost everything I look at screams that out to me”.
The recognition of Canada's economic performance has a lot to do with our goal of returning to balanced budgets. I believe if families and households have to control spending in difficult times, then so should governments.
Before the global recession, our government reduced the national debt by almost $40 billion to the lowest level in 25 years. Therefore, while other countries face serious debt challenges, our country is in a strong fiscal position with the lowest debt to GDP ratio in the entire G7.
In 2010 we developed a three-point plan to return to balanced budgets by slowing down temporary stimulus spending in conjunction with targeted spending restraints, as well as strategically reviewing the cost to operate government. By implementing specific spending restrictions, we have identified approximately $1.6 billion in ongoing savings already. Moreover, our government's commitment to returning to balanced budgets includes closing unfair tax loopholes.
By improving the fairness of our tax system, the government has identified $1 billion in potential savings by 2013-14 on that part alone. More important, the government's strategic and operating review has targeted at least $4 billion in potential savings by 2014-15. In fact, on October 13, the Canadian Press reported that our government had reduced the deficit by $2.8 billion before the original forecast for this year, which is a 40% decline in the deficit from the $55.6 billion deficit from the year before. Not only does this leave us in a strong fiscal position, but it gives our government leeway in determining economic policy should the global economy dip back into recession.
Although the forecasts and praise surrounding Canada's economy are encouraging, the global economy remains fragile. Severe economic challenges in the United States and a sovereign debt crisis in Europe could signal the onset of another global recession. It is very important that our government remain on the right path and complete the next phase of the recovery by implementing this bill.
This legislation contains important measures that will benefit families and businesses throughout the country. I would like to speak for a minute on what it means to my riding of Oakville.
Our government believes in supporting families, which is why we have included several tax credits specific to families. This includes the children's art tax credit which is a 15% non-refundable tax credit on up to $500 in eligible fees for artistic, cultural, recreational and developmental programs for children. It is an important element in keeping children involved in the arts and will help ease some of the financial strain that is caused when parents have to pay for the various activities in which their children are involved.
We are also helping families take care of their loved ones. The family caregiver tax credit represents a 15% non-refundable tax credit on an amount of $2,000 for caregivers of all types of infirm dependent relatives including spouses, common-law partners and minor children. Moreover, we have included the enhanced medical expenses tax credit which eliminates the $10,000 limit on the amount of eligible medical expenses that can be claimed on behalf of a financially dependent relative. This aims to make it easier for family members to continue to care for their loved ones, something that has been called for for decades.
Helping families is what this government has been doing since 2006. Allow me to remind the House of some of the things we have done to support Canadian families since then. We have made tax cuts over 120 times since 2006. We have cut the lowest personal income tax rate to 15%. We have reduced the GST from 7% to 5%, putting nearly $1,000 in the pockets of the average Canadian family. We have introduced the tax-free savings account, the single most important personal savings vehicle since RRSPs. Because of our government's commitment to relieving the tax burden on Canadian families we have helped a typical Canadian family save over $3,000 a year in taxes.
Support for Canadian families does not end with tax credits. Many families in Oakville earn their livelihood by operating small businesses, which can be challenging. I know of one family in my riding where both parents own and operate small businesses: a restaurant and an interior design company. The targeted measures our government is implementing will help small businesses like theirs hire employees, avoid red tape, and purchase equipment necessary to improve productivity. One of them recently expanded the business and hired 10 new employees.
The new hiring credit for small businesses is a one-time credit of up to $1,000 against a small firm's increase in its 2011 employment insurance premiums over those paid in 2010. This new credit will assist 525,000 employers in hiring people for their businesses. This hiring credit will help them expand their business while trying to keep their costs down.
In my many conversations with small business owners, several of them have voiced their concerns on the difficulties they have faced when dealing with government departments. The red tape reduction commission will help reduce the burden of navigating government departments. Any small business owner knows that red tape can slow down the growth of his or her business and create unnecessary stress. We are removing many of those road blocks. But it is not just red tape that is slowing down expanding businesses, it is also the costs of purchasing and upgrading machinery and equipment.
Oakville is home to a number of manufacturers, and like manufacturing companies throughout Canada, they are key engines of economic growth and jobs. Small- and medium-size manufacturers will receive help from the federal government through the extended accelerated capital cost allowance. This will help manufacturers allocate resources toward investing in manufacturing and processing equipment. Manufacturers also want to be able to sell their products abroad, and for this reason the government is simplifying customs tariffs to speed up cross-border trade with the United States.
Our government's recognition of the enormous contribution small businesses make to our economy has been consistent since we formed government in 2006. Allow me to take a moment to remind members on the opposite side of the House what we have done for small- and medium-size businesses.
We have increased the limit on the amount of income earned by small businesses in order to be eligible for the reduced federal tax rate, otherwise known as the small business limit, to $500,000. We have reduced the small business tax rate from 12% to 11%, not to mention the federal corporate income tax rate to 15% by 2012.
All of our government's support for small- and medium-size businesses cannot be viewed independently from our commitment to finding new markets for products and services they produce. Forty per cent of Canadian companies export their goods compared to only 1% of U.S. companies that export their goods. Simply put, we need trade to continue to grow our economy. In conjunction with this budget bill, we are pursuing mutually beneficial free trade agreements with 50 countries on top of the eight agreements we have already signed.
I have highlighted many ways in which the decision making of this government is helping put Canadians first, at both the national and local levels. It is clear we are leading the world by example. We will maintain our economic strength and resilience regardless of the direction the global economy may take.