Articles

08 12 05 - Parliamentary Report

ECONOMIC CRISIS? DANGER WITH OPPORTUNITY
 
We live in interesting times, as the Chinese proverb would observe.  To further borrow from that tradition I suggest that we may define our present circumstances with the character for "crisis" that expresses in a single word not only "danger" but also "opportunity".   This Parliament has before it both danger and opportunity - and the Speech from the Throne recognized both the dangers and the opportunities.
 
It clearly addressed the economic challenges which define the work of this Parliament.  As we speak, Canada continues to enjoy the only budget surplus among the G7 nations.  Our average hourly wage rate has continued to increase by 4.3% in the last year.  Our unemployment rate remains near historic lows.   For the first time since 1981 we have less unemployment than the United States. 
 
The fiscal prudence of our Government undoubtedly contributed to these advantages.  Paying down $37 billion of national debt in just two years, reducing almost $200 billion in taxation, and investing in infrastructure were pro-active measures to ensure the health of our economy.  Available infrastructure funding was increased by 40% this year and another 40% next year, totalling $10.5 billion. 
 
These measures provide ongoing economic stimulus.  The GST cuts didn't just put more money in consumers' pockets last year, they continue to do so.  The benefit of these tax reductions and infrastructure investments could not be greater if the government had waited until now to implement them.  Quite the opposite is true.  Because we were ahead of the curve, we are already enjoying the benefit and have delayed the onset of recession far longer than our neighbours.
 
We cannot escape the economic downturn.  The economic problems afflicting our largest trading partner will inevitably affect us.  We are a trading nation.  The health of the global economy impacts the health of the Canadian economy.
 
The government has already demonstrated its keen awareness of the necessity for international cooperation.  Our Prime Minister has already met with world leaders and worked with them on general principles which will be implemented by our government.
 
My personal hope is that two approaches will become priorities and I am certain that I speak for the people of Kitchener Centre in expressing these priorities. 
 
The first is an acceleration of investment in infrastructure.  The second is ensuring support for those whose livelihood or whose essential savings are lost by the economic downturn.  These two priorities are emblematic of the Kitchener traditions of industrious community improvement and of socially innovative concern for our neighbours.
As to infrastructure, the government has already wisely budgeted for $33 billion of infrastructure investment over the next several years.  It is now important to provide much of that economic stimulus over the next 12 to 24 months.  This is an opportunity to address real infrastructure needs.
 
It is equally important to ensure that no Canadian is left behind.  In Canada we do not abandon the less fortunate.  Clearly the economic downturn will make itself felt in the Employment Insurance fund and in provincial social assistance programs.  This is an opportunity to strengthen our social safety net. 
 
I confidently expect that our Government's new budget  will address these very important needs.