Bruce Stanton Delivers Remarks on Budget 2008

March 05, 2008

Mr. Speaker it is a great privilege to speak this afternoon as part of the Budget 2008 debate. Our Budget builds on the strong performance of our country and its government in recent years – while it prepares us for the realities of slower economic growth.

The measures we took in the Fall Economic Statement – ahead of the curve – are helping to cushion the country’s economy in a responsible way – in a balanced way – that will keep our economic fundamentals strong.

Mr. Speaker, Canada, has come a long way from the volatile economic times we experienced in the 70’s and 80’s with high inflation and interest rates, high taxes, and burgeoning public debt at both levels of government.

But lessons were learned, and eventually, with a lot of pain and hard work by governments, businesses, and indeed Canadian families and workers, we emerged to see our country on the strongest footing we’ve enjoyed since the 60’s.

We’re a stronger trading nation; a more educated nation that’s investing in research and the knowledge economy; a nation that’s investing in public infrastructure; and a nation that puts its provincial partners on a fairer, predictable funding base.

Taxes are lower than they’ve been since the 60’s

Inflation and interest rates are low and stable;

Public debt is tracking to its lowest rate against GDP in my lifetime

and the Canadian dollar is strong. That poses some challenges, but the stronger dollar reflects our stronger position in the world – and Mr. Speaker that is something we can take some pride in.

Comme conséquence de cette question financière prudente, l’économie va bien, les Canadiens travaillent fort, ils paient leurs impôts, ils élèvent leurs familles, il y a quatre-cent mils (400,000)
nouveaux emplois depuis deux ans, et le chômage est á son plus bas – et á son meilleur depuis trente-trois ans.

And as a consequence of this prudent fiscal management, the economy is in good shape; Canadians are working hard – paying taxes, raising their families; 400,000 new jobs in the last two years – and unemployment is lower – and the best in 33 years.

We are well positioned to cushion the slowing down of the global economy – a position that will auger well into the future. In fact, Mr. Speaker, the only sure thing we know, looking forward, is that once the US gets back on a stronger growth curve, and it will; from time to time there will be other events that occur in the world that may impact Canada’s economy negatively.

We’ve seen them before; the weakening of Asian capital markets; 9-11; the tech bubble; SARS/ BSE, and now a US slowdown after what was a long and sustained period of growth.

The very best way for Canada to withstand these pressures – that are for the most part outside of our control – is to keep our economic fundamentals strong and competitive. That approach will attract investment and keep jobs in Canada – keep opportunity for Canadian families – to improve their incomes; and improve their standards of living against any measure.

So it is for these reasons that I have been surprised and concerned at the nature of political discussions in this place during the weeks leading up to the Budget. We had Opposition Members calling for major government interventions – as if to somehow backstop the US slowdown – believing somehow that Canada could spend its way to preventing a recession south of the border. It’s bizarre Mr. Speaker.

They seem to favour going back – going back to the days of higher taxes – and bigger government handouts – the kind of interventions that played havoc with our economy before – and would surely get us in trouble again.

Mr. Speaker – we can’t go back. We won’t go back. Budget 2008 builds on the already proper and successful approaches we’ve taken in Budget’s 06, 07 and last Fall’s Economic Statement.

It also falls directly out of the most masterful and visionary economic plan this country has seen – certainly in all my years – and that is the Advantage Canada Plan introduced in November 2006.

It gives us the Advantage – so that as the world changes – and it will – Canada can continue to be more prosperous and strong. It’s realistic – it’s practical – it will give Canada and Canadians a competitive Advantage.

a tax advantage; - with the lowest rate on business investment in the G7
a fiscal advantage – by reducing our debt – and leaving the next generation on a stronger foundation
an entrepreneurial advantage – by making Canada a good place to do business – with less red tape and paper burden
a knowledge advantage – improving skills; awarding excellence in education and research, and
an infrastructure advantage – with the most robust investment in public infrastructure we’ve seen since the 2nd world war

As Parliamentarians, we’re given the responsibility to shape public policy and public expenditures so that all Canadians have access to a better quality of life. Advantage Canada – its five pillars – and our last three balanced budgets – aim directly at achieving that Advantage for all Canadians.

For the benefit of those tuned in from my riding of Simcoe North – and for all viewers this evening/afternoon, I would just like to take a moment to highlight some of those key improvements to our Canadian advantage that were announced in Budget 2008:

To help all Canadian families and seniors protect their savings and maximize their own incomes, we’ve introduced the first major innovation in Canadian savings policy since the RRSP in 1957 (a very good year Mr. Speaker) with the new Tax Free Savings Account. You can now put up to $5,000 per year, from age 18 on – into a savings account and the earnings will grow in that account - tax free. If you can’t use your whole $5,000 in one year, the unused portion carries forward for future use.

For the heart of the manufacturing economy in Simcoe North – especially in Penetanguishene, Midland and Orillia – we’ve extended the accelerated depreciation allowance out for another 3 years – on a declining scale – so new capital equipment can be written off quicker – to save taxes – to invest more. We know the future health of our manufacturers requires new investment in the kind of machines and tools we’ll need to compete with the very best in the world. Our government is helping to do that – and it doesn’t hurt that those purchases can now be made with a more valuable Canadian dollar.

This is on top of a new $250 million Automotive Innovation Fund – that will help our automotive sector invest in the kind of green, fuel-efficient products that are certain to lead the market in this new economy – and develop the kind of tooling and systems to keep Ontario as the very best place in the world to assemble automobiles.

To expand our knowledge advantage, we’re helping 245,000 college and undergraduate students a year with a bigger and better Canada Student Loan program; with $350 million by 2009/10 – rising to $430 million in 2012-13.

For the many seniors in Simcoe North and across Canada; in addition to the tax savings we’ve brought from bigger tax credits, smaller tax rates, and pension splitting, Budget 2008 gives those seniors who have some extra earnings the ability to declare up to $3,500 per year of earned income – before which their GIS would be affected. It used to be that anything over $500 per year was clawed back off your GIS – well not anymore.

On the infrastructure front – the Gas Tax Transfers that flow to our municipalities, and which will reach a record level in the next fiscal year – will now be permanent, dependable, predictable transfers directly from the Government of Canada to help with municipal infrastructure improvements. We had extended the gas tax funding in Budget 2006 – to 2014 – but now it won’t stop. This measure amounts to about $4.5 million per year coming into the 8 municipalities of Simcoe North each and every year – and amounting to about $26 million by 2014.

For law enforcement and police services, indeed to keep our communities safer, Budget 2008 commits $400 million for the hiring of 2500 new police officers. For Ontario, and of interest to the OPP who’s headquartered in our riding, there will be $156 million of that dedicated to Ontario policing – in a trust fund that can be drawn down over the next five years as the Province determines.

Finally, there is going to be some ground-breaking work underway by the Mental Health Commission in five Cities across Canada – where a new commitment of $110 million will be spent to develop best practices and a new model for dealing with Canadians facing mental illness and homelessness. I’ve had the privilege to team up with some of our excellent support workers in Orillia and Midland where I’ve seen firsthand the people who, just as in the larger cities of Canada, need our help. This work, flows from the recommendations of the Honourable Michael Kirby, Chair of the Mental Health Commission of Canada – and will most certainly be instructive for our communities in Simcoe North and the urgent issues we face with homelessness – often occasioned by mental illness.

So Mr. Speaker – these are some of the hi-lights of Budget 2008 that I know the great people of Simcoe North will take some interest in. It is a tremendous honour to serve the people of my riding – and I am proud to serve them as part of a government that is taking strong and decisive actions to bolster our economy even in the face of economic uncertainty.

Je remercie mes collègues de leur attention, et j'invite maintenant mes collègues à me poser leurs questions.

I thank my colleagues for their attention and I now invite my colleagues to pose their questions to me.

Merci Beaucoup. Thank you very much.