Ms. Cheryl Gallant (Renfrew-Nipissing-Pembroke, Canadian Alliance): Mr. Speaker, paying down the debt with budget leftovers is no plan at all. Taxpayers need more assurance than the whim of the finance minister that the debt will be repaid. After all, debt represents nothing more than future taxes on our children.
When will the government commit to following the lead of the provinces of Alberta and Ontario and putting in place a legislated repayment plan of the debt so that Canadians will have a guarantee in law that our debt will be repaid?

Mr. Roy Cullen (Parliamentary Secretary to Minister of Finance, Lib.): Mr. Speaker, that is very characteristic of the party opposite. It wants to have its cake and eat it too. It wants investments in Chalk River and it wants to pay down the debt.
The government is paying down the debt. In fact we have exceeded the targets that were set by the Alliance Party. We are paying down debts faster than any G-7 country, and we will continue to do so.
The member opposite did not listen to the finance minister last year when he said that every fall he would proactively decide whether we would pay down the debt. We will have paid down more than $30 billion by the end of this fiscal year.

Ms. Cheryl Gallant (Renfrew-Nipissing-Pembroke, Canadian Alliance): Mr. Speaker, the government could learn from the provinces. It was our leader, as the finance minister of Alberta, who changed the debt repayment legislation to raise the bar, to increase the debt repayment target.
For our children, why will the government not commit that the $10 billion it says will go to debt repayment will become a yearly minimum amount of debt reduction for the rest of its mandate?

Mr. Roy Cullen (Parliamentary Secretary to Minister of Finance, Lib.): Mr. Speaker, the standard accounting principle is that any surpluses left at the end of the year automatically go to pay down the debt, but last fall in an economic update the Minister of Finance said he would proactively decide what would be paid down on the debt. This year he announced a minimum of $10 billion against the debt [on May 17 a further $15 billion was set aside for debt repayment] .
As a result of the actions of the government we have reduced the amount of revenue dollars from 36 cents per  revenue dollar down to about 25 cents per revenue dollar on servicing the debt, and we will go further, faster.
 
Hansard, May 4, 2001
 
 
 

The Liberal government's prudent fiscal plan delivers budget surpluses, debt reduction, tax cuts, and investments in health care, children, and innovation, despite the recent economic slowdown, reported Finance Minister Paul Martin in his Economic Update of May 17.  Even with changing economic conditions, ample funding for contingency, and prudence reserves, confirm the government’s plan is on track.

Wise management of our finances means that our economy is better able to weather global economic storms, and despite the slowdown, we are still in the longest period of economic expansion since the 1960s - some 22 quarters of growth.  But more than 40 per cent of Canada's gross domestic product (GDP) is generated by exports, so it follows that many of us, especially those working in the automobile industry and in the information and communications technology sector - are affected by what happens outside our borders.  On the other hand, other sectors of the economy - services, aerospace, energy and construction (especially housing) - continue to grow at a strong rate and help offset other less performing sectors.

Low Inflation
Minister Martin also announced that the Bank of Canada and the Government of Canada are extending for a further five years the current agreement on inflation targets to between one and three per cent.  This sets the stage for longer-term financial stability that benefits all Canadians - those buying a house or a car, starting a business, planning for their children's education, or living on a fixed income.

Tax Cuts
We are on track to deliver the $100 billion in tax cuts announced last October.  These cuts - the largest in Canadian history - will put more money into the hands of Canadians, especially middle-and low-income earners. This year alone tax cuts will provide the Canadian economy with $17 billion in added stimulus.  One of the steps we took to help make Canadian businesses more competitive was to cut corporate income tax rates by one percentage point.  Further cuts - two points in each of the next three years - will bring corporate rates below levels in the U.S.

Debt Repayment
Canada's economic performance also boosted revenues for a surplus $5 billion greater than anticipated - money that will be used to pay down the federal debt by at least $15 billion for the year just ended - the largest debt repayment ever.  The Liberal government's commitment to repaying Canada's debt - more than $33 billion over four years - will save Canadians close to $2 billion in interest payments every year.  These are resources that can be spent on the priorities of Canadians such as health care, children, education, the environment, and further tax cuts.

Quality of Life
Minister Martin re-affirmed the Liberal government's commitments to improving the quality of life of all Canadians.  These include a federal contribution of $21.1 billion following last September's Health Accord; $2 billion for infrastructure, with a focus on the environment; $600 million for highways; and $500 million this year to promote knowledge, skills, research and development.

From tax cuts, to debt reduction, to investments in the priorities of Canadians, the Liberal government continues to steer our economy forward - through smooth and troubled waters - with prudence and judgement.  It's a course that has led us away from the danger of deficit toward the promise of opportunity and a better quality of life for all Canadians. 

I believe that community-based crime prevention initiatives such as these are key to ensuring safe homes and streets. This initiative shows how members of the community in Etobicoke North can work together to make a difference in the fight against crime. As we know, the best way to fight crime is to prevent it in the first place, and so I am pleased that the Government of Canada is supporting the efforts of these three great organizations to reduce crime in Etobicoke North. Their efforts will in turn benefit all Canadians.

The three projects were reviewed and recommended by the Ontario Joint Management Committee, consisting of representatives of the federal Department of Justice, the Government of Ontario, and members of the community.

The real experts on crime prevention in any community are the people who are part of that community. The projects announced today are about community members developing crime prevention solutions that meet their unique needs.

The funding for these projects is being provided under the federal Community Mobilization Program of the National Strategy on Community Safety and Crime Prevention. Phase II of the strategy, announced on June 2, 1998, includes $32 million per year in federal funding to help Canadians undertake crime prevention initiatives in their communities.
 
 

Parliament had a busy legislative calendar this year and our Liberal government is proud to have brought forward a number of important initiatives in the areas of Health Care, Immigration, Justice, and Economic Policy, to name a few.  Some of the highlights include:

• A federal/provincial Health Accord & Early Childhood Development Initiative, worth  $23.4 billion over five years;

• A New Immigration Act: designed to be tough on criminals
— while strengthening our efforts to attract skilled immigrants;

• $100 billion in tax cuts over the next 5 years, and a record debt repayment of $15 billion this year —for a total of $33 billion of debt reduction since 1995-96;

• A new Youth Criminal Justice Act focussed on crime prevention and designed to better distinguish between minor offences and those that are serious or violent;

• New anti-gang legislation to strengthen our fight against organized crime;

• A $2.65 billion Infrastructure Program to improve the quality of life of Canadians in communities across the country;

With the end of the Parliamentary session, I look forward to getting back to the riding and meeting with the constituents of Etobicoke North over the summer months.

Please accept my best wishes for a safe and happy summer.    

Roy Cullen, M.P.