Mr. Speaker, I will be splitting my time with the member for Esquimalt—Juan de Fuca.
I would like to preface my remarks with my deepest appreciation to the people of Don Valley East for my re-election to the House. It is an honour and privilege to serve as their representative. I would also like to congratulate all the returning members and new members. It is definitely a privilege to be here.
If we were one of those unemployed Canadians who once worked in Canada's manufacturing or auto sectors or if we were a recent graduate searching for the first break in the job market, yesterday's Speech from the Throne offers very little in the way of substance or hope for the future. This is truly a shame.
The reason the speech contains nothing in the way of substantial assistance to Canadians is because the federal government is broke. In fact, this particular Speech from the Throne will go down in history because it is the first one that actually forecasts a federal deficit in advance of next week's economic statement.
Canadians have a right to be angry. It was just a few weeks ago during the federal campaign that the Prime Minister swore that his Conservative government would never run a federal deficit. On October 7, 2008, the Prime Minister addressed the Canadian Club in Toronto and issued the following statement:
A Conservative Government will not be raising taxes. We will not cancel planned tax reductions for business. We will not be running a deficit. We will keep our spending within our means.
I guess the Prime Minister should have mentioned that the Conservative campaign promises come with a caveat because this one has already passed its expiry date. This is a promise that the Prime Minister made just six weeks ago.
Furthermore the Conservative campaign platform released just a week before election day stated the following:
Our plan's budgeting is based on the revenue projections in Budget 2008. These are the most up-to-date projections released by the Department of Finance....
If the Prime Minister had the benefit of the most up-to-date information, why is he suddenly changing his tune today or the day after the election was held? The official excuse that we have been hearing all around today from the government side is that there is a downturn in the global economy, but nothing could be further from the truth. This is a made in Canada federal deficit, courtesy of the Conservative Party.
Less than three years ago, the Conservatives inherited a $13 billion federal surplus from the Liberals. Unemployment was at its historical lows and the Liberals had put in place contingency funds to cover unforeseen budget costs and to pay down the federal debt at the same time.
How did the Conservatives blow that $13 billion surplus in such a short period of time? First, in spite of the advice of leading economists across Canada, the Conservatives went ahead with a bunch of tax gimmicks that did little to benefit Canadian taxpayers, yet created a massive hole in the public treasury to the tune of $11 billion. These tax measures did not create jobs, spur consumer spending or boost productivity. Instead, they created a hole.
Second, the Minister of Finance went on the largest spending spree in Canadian history with his budget 2007. Now Canadians will have a tough time swallowing the Conservatives' apology in next week's economic statement. In fact, the Conservatives will be hard pressed to explain why the cupboard is bare with little or nothing to offer Canadians in advance of an economic recession.
Although the Prime Minister has a background in economics, he sadly lacks the basic fundamentals to run a fiscally sound government. The Liberals ran healthy federal surpluses so that we could pay down the federal debt and our children and grandchildren would not have to pick up the tab with interest added on.
Unfortunately, those fiscal fundamentals have gone out the window with the Conservatives.
The Governor of the Bank of Canada has already indicated that moderate growth forecasts for the Canadian economy have virtually evaporated in less than a month. In other words, Canadians cannot expect too much from the Conservatives in terms of tax cuts or economic assistance because the federal government is broke. Once again, it is a Conservative government that is quick to whip out the federal credit card and start running up the public debt at taxpayers' expense.
The Speech from the Throne says so in the following paragraph:
Ongoing, unsustainable deficits are quite rightly unacceptable to Canadians. These structural deficits must never return. At the same time, in a historic global downturn, it would be misguided to commit to a balanced budget in the short term at any cost, because that cost would ultimately be borne by Canadian families.
That statement is truly astounding. A deficit is essentially an unpaid bill for our children and our children's children to eventually pay off.
I would like to know how much of the federal debt the Conservatives plan to pay off in the upcoming budget. The answer would have to be nothing. Few Canadians are aware that the largest single federal expenditure is interest payments on the federal debt. In budget 2008, that represented $33.9 billion or 14.5¢ of every tax dollar. We still owe $500 billion in federal debt and now the Conservatives are pulling out the government's credit card and piling on more and more.
Philosopher George Santayana is often remembered for the following quote, “Those who cannot remember the past are condemned to repeat it”. Unfortunately, this is true of the Conservative Party.
In 1993, the Liberals inherited a $42 billion deficit from the Conservatives and were given the unpleasant task of cleaning up eight years of Tory mismanagement. The Liberals did a very fine job. They cleared off the deficit and brought Canada back as the strongest and most fiscally responsible country in the G-8.
Now we may need to clean up the Conservatives' mess because they are going down a slippery slope. As the official opposition, the Liberal Party pledges to make this minority Parliament work but we need to look after the interests of Canadians who will eventually demand a fiscally responsible government that is accountable, reliable and lives up to its campaign promises.