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TORONTO, ONTARIO, December 5, 2003 – Addressing the Diplomatic Forum, which gathers ambassadors, high commissioners, and consuls-general accredited to Canada, the President of the Privy Council and Minister of Intergovernmental Affairs, the Honourable Stéphane Dion, described the spectacular economic turnaround that Canada has known during the Chrétien government’s time in office.

The Minister demonstrated that, in terms of principal economic indicators, Canada has gone from a G-7 country with one of the worst performances to the best.

This radical change applies to the fiscal balance, the reduction in the debt load, the growth of the economy, and the growth of employment, Mr. Dion stated.

He also indicated that restoring the health of public finances was accomplished by reducing the burden of public expenditures in the economy and not by increasing taxes: “Governments in Canada now levy less tax and income tax in relation to the size of our economy than they did 10 years ago.”

Among the other positive elements he underlined were the marked increase in Canadian household income over the past few years as well as the lesser proportion of Canadians considered by Statistics Canada to have a low income.

The Minister of Intergovernmental Affairs stressed the need for the federal government to continue to help the provinces currently facing a less positive budgetary situation than its own: “This is why, over the next few years, federal transfers to the provinces will grow more rapidly than provincial health expenditures or the Canadian economy.”

We now have to stay the course, Mr. Dion affirmed, while at the same time ensuring that our new initiatives fit in with the sound financial discipline that has brought us such success. “This is the firm intention of our next Prime Minister, Paul Martin,” concluded Minister Dion.

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This document is available on the Intergovernmental Affairs Web site at the following address: http://www.pco-bcp.gc.ca/aia/