Archives - Paul Martin

June 02, 2005
Montreal, Quebec

Check against delivery

Ladies and gentlemen,

I would like to begin by thanking the organizers of this tremendous event, Claire O’Connell and her volunteers, and all of you for such a good turnout this evening.

I would like to mention the presence of our riding presidents here with us tonight to represent all the riding associations and to thank them for all their efforts.

I can’t tell you just how pleasant it is to be home. To find myself among friends, Quebecers united by their unshakable attachment to Canadian values. Liberals, united by their confidence in the future of our country.

In July, I will be going to Scotland to attend the next G8 Summit.

There will of course be an official agenda, but the informal discussions will inevitably turn, as they did at other recent international meetings I have attended, to one subject.

The fact that our world, which is currently dominated by the United States, Europe, Russia and Japan, will soon be seeing two new economic giants join in this ascendancy: China and India.

And what I would like to speak about with you this evening is precisely how this will affect Canada.

Between them, China and India represent over one third of the world’s population. As you know, they are going through a meteoric economic rise that will give birth to a new middle class of over a billion consumers.

For many industrialized countries, the emergence of China and India is a source of both promise and peril. For Canada, given our small domestic market and our enormous export capacity, I believe that in spite of increased competition, the new reality will provide us with unprecedented opportunities.

On one condition.

For us, as a nation of 32 million, we need to rely on our strengths and be in the forefront of change if we want to succeed among these Titans. We need to make sure that our country is ready at all times to face the new challenges, and that is what I want to speak about this evening.

How can we do this?

We have to begin by protecting our fiscal integrity.

I remember touring the financial capitals of the world in 1994, and
meeting representatives of the institutions who held Canada’s debt.

At the time, every single one of them told me not only that Canada was in a disastrous financial position, but also that they saw no way out for us.

Quite an experience for a new Finance Minister.

We managed to succeed when no one thought it was possible.

Today, our books are among the healthiest in the world.

And we have learned a very important lesson from this period. We can no longer allow the government to live beyond its means.

The price to be paid for doing so is too high.

And that is the background to what I would like to speak to you about – my government’s plan to build for the future. But first, I would like to say a word about the sponsorship issue.

When we speak about public finances, what we are talking about is the taxpayer’s hard-earned money. What happened in this affair is unacceptable. The taxpayer’s money was badly used and badly spent. I understand the disappointment of Quebecers. I also understand the disappointment of Liberals.

We, the Liberals, put our government finances in order. And we didn’t do it so that a group of people could tarnish the reputation of our Party and cause people to lose confidence in our country’s political class.

That is why I am determined to get to the bottom of this. That is why our government established the Gomery Commission. That is why our government is committed to putting our house in order, as we are now doing. And we won’t stop until we are sure, not only that the new measures introduced will forever prevent a repetition of such events, but also that those who abused the system are held accountable for what they did.

As Prime Minister, I will do everything in my power to ensure that your government deserves your respect.

That said, let us now return to our plan for enabling Canada to take its place in a world of economic giants. As I already mentioned, the plan is based on our country’s economic integrity.

Everything begins with an unshakeable commitment never to return to the years of fiscal darkness.

For decades, Canada not only ran deficits, but it had a culture of deficits. And it didn’t matter whether the government was Liberal or Conservative.

We put an end to all that. We balanced the budget. Today, Canada’s economy and public finances are national strengths that increasingly set us apart.

We have the best growth in living standards among the G-8. The fastest job growth. The best rate of debt repayment. Low inflation. Low interest rates.

Unemployment that’s 30 per cent lower than a decade ago.

For Canadians, it’s easier to find a good job, buy a house, pay the bills. Canadians can be optimistic again.

We did a lot over the past decade to achieve these economic successes. But we can’t rest on our laurels. We have to do even more.

Because the world beyond our borders is changing fundamentally, it is absolutely essential for us to develop the flexibility required to address unexpected problems.

We must never go back to deficits. We must continue to have surpluses.

Economists will tell you that it’s fine for governments to run the occasional deficit, so long as things balance out over the course of the economic cycle. I do not agree with this approach. I did budgets for nine years, and I know that the most important tool to control spending is discipline.

In talking about our plan to succeed against the economic giants, I have thus far spoken to you about the importance of continuing to have surpluses.

Now, I would like to discuss a few of the choices we will need to make. Ways of re-investing in Canada to make it more productive and more competitive. Ready to face the future.

What are these investments?

First of all, we have to reduce the debt. As a government, we have already reduced it by over $60 billion. But with an aging population, we cannot coast if we want to continue to perform effectively.

In the ‘90s, our debt was nearly 70% of our GDP. It is now 38%. If we compare this percentage to that of the provinces, we can see that it is higher than the provincial average, and higher than in Quebec.

Therefore, over the coming years, we need to continue to reduce our debt to GDP ratio. We would like to get it down to 25%.

Then, we need to reduce taxes. We have already reduced them by over $100 billion over the past five years. It is the largest tax reduction in the history of Canada. But we need to continue.

Third, re-investing in Canada means investing in innovation. Since 1997, we have doubled support to research in universities and hospitals. For example, we have invested in the creation of 34 new research chairs at Quebec universities. The laboratories of our universities in Montreal, Sherbrooke, Quebec City, Rimouski, Saguenay and Abitibi will see research that will have a direct impact on the lives of Canadians, and will create the industries of tomorrow. And there is more to come. We need to continue to invest in research in Canada.

Why?

Because ingenuity and specialization are essential if Canada, a nation of 32 million, is to prosper among the Titans of tomorrow. Re-investing in Canada also means working with the provinces and territories. For example, here in Quebec, cooperation took the form of an agreement on parental leave, an agreement that acknowledges that the Quebec system is innovative. It also demonstrates the commitment of both governments to help parents who want to achieve a healthy balance between work and family.

We have signed other agreements, in other fields, with other provinces and territories. I am sure that we will be signing more with Quebec and the other provinces as the need arise.

Why?

Because in a country as diverse as Canada, it is in the national interest to meet regional needs. It is of course true that the national interest will mainly lead to national solutions, but it is also in our collective interest to help each region to be strong, depending on their specific needs.

For example, when we invest in the aeronautics industry, as we did with the C series project, we do it not only for Bombardier and its headquarters in Quebec, but we also do it because if Montreal is strong, Quebec will be strong. And if Quebec is strong, Canada is strong.

Moreover, making sure that Canada succeeds means reminding the Americans that free trade really means free trade.

Two months ago, I was in Texas, where I signed a new partnership for prosperity with President Bush and President Fox of Mexico. The agreement says that it is in our common interest to react to the rise of China and India by building a more integrated North American economy.

But it will only work if the Americans refrain from violating the spirit of the agreements that govern trade among our countries. NAFTA was a success, but there are still worrisome problems, such as the repercussions of the mad cow crisis and repeated attacks on our lumber exports. We cannot tolerate this situation.

In short, NAFTA needs an objective and binding mechanism for the settlement of differences. A mechanism that will make it possible to resolve disputes within a reasonable time span.

Paying down our debt, lowering taxes, investing in research, working together with the provinces and territories, and defending free trade, are all essential to Canada’s competitiveness.

Nevertheless, our productivity and competitiveness also depend on our determination to re-invest in programs that improve quality of life for Canadians.

We do not share the Conservative ideology of every man for himself, which the Bloc has signed onto as well.

It has also become clear that the Bloc places its obsession with a referendum ahead of the interests of Quebec.

Gilles Duceppe places his personal ambitions ahead of the ambitions of Quebecers. If the Bloc had really wanted to defend the interests of Quebec, they would have voted in favour of the budget.

Gilles Duceppe said that there was nothing for Quebec in the amendment to the budget. Has his referendum obsession blinded him?

How can he say to Quebecers that he doesn’t believe investment in our universities, affordable housing, the environment and international aid are good for them?

If Bloc MPs had been serious in standing for Quebec’s needs, they would have voted for the budget. Simply because the budget priorities are directly linked to Quebec’s priorities.

It’s clear that Bloc MPs have one priority, and one priority only, and are absolutely not concerned with Quebecers’ needs. Their objective is to destroy the country.

And in that, they will never succeed.

The person I cannot understand is Stephen Harper.

He doesn’t appear to realize that his underhanded dealings with Gilles Duceppe are threatening our country’s stability.

We know that he wanted to take part in the Iraq war and re-open the anti-missile shield file, and that he does not believe in protecting the rights of all minorities, but how to explain his common agenda with the separatists?

But let’s get back to what I really want to focus on, our priorities.

Because we understood that the provinces were facing financial pressures, we introduced a new equalization agreement. That is also why we signed a new health agreement last fall.

For years, the two levels of government used health care financing as a political football. Every year, we were back where we started.

In September, we decided that the only way to remedy the problem was a long-term agreement. That is what we did.

The agreement provides $41 billion in federal transfers over ten years.

These investments are for the most pressing needs, such as access to care, shorter wait times and accountability to citizens.

By working with the provinces and territories, we reached an agreement that was signed by every single Premier.

To achieve common objectives, Jean Charest and I signed an asymmetrical agreement that allows us to build on the diversity that characterizes our country.

For next year only, this agreement means $471 million more in Quebec’s coffers. A total of $9.6 billion over ten years.

Now that is an investment for our collective future.

Then there is our new Pact with cities and communities.

For years now, cities and communities have fought to maintain infrastructure and utilities.

And they have done so with limited resources that do not keep pace with economic growth. Our government understands that the quality of life for Canadians is influenced by the vitality of our communities.

We want our cities to be among the best and most secure in which to live, work, and raise a family.

To accomplish this, we need to make sure that they have the income they need.

That is why we looked for a long-term solution.

To begin with, we have put in place a GST rebate. And now, we will transfer a portion of the federal gasoline tax.

This will direct billions of additional dollars to local projects.

We have already signed agreements with British Columbia, Alberta and the Yukon. We want to sign such agreements with every province and territory, including Quebec, as rapidly as possible.

That too is an investment in our collective future.

Our national program for early learning and child care. I certainly have no need to explain to Quebecers how important such a program is.

The Quebec experience with early childhood is one that the rest of the country can learn from.

The Canadian federal system provides a flexible framework that allows good ideas that a province has experimented with to be implemented throughout the country.

That is the same approach that led the governments of Jean Lesage and Lester Pearson, in the ‘60s, to provide security for our seniors, with the Quebec Pension Plan and the Canada Pension Plan.

Such is the very essence of cooperative federalism in Canada. Creativity and innovation at the provincial level can lead to cooperation on a national scale. A skillful balance between the principles of solidarity and autonomy.

Today, we can flexibly and creatively do the same thing with early learning and child care.

That too is an investment in our collective future.

When we speak of a Canada that is ready to take its place among the economic Titans around us, it is essential to speak about Canada’s role in the world.

I see no contradiction between a Canada that is successful and a Canada that does good in the world. On the contrary, these concepts go hand in hand. Canada would clearly benefit from a world that is more secure and more prosperous.

In developing and pursuing its foreign policy, Canada has wanted to have an independent voice in the world. An original voice that reflects what it is and the objectives that unite us.

That is also the voice that was heard when we were the first country to send troops and decided to invest $16 million towards the deployment of police officers to maintain security in Haiti, when we decided not to participate in the Iraq war, and when we decided not to participate in the anti-missile shield.

That is also why Canada is very active in Afghanistan and why we agreed to run the International Mission for the Iraq elections.

That is why Canada is playing a key role in combating HIV/AIDS and why we are playing a leadership role in our support of the African Union to promote long-term peace in Darfur.

It is our desire to build for the future that led Canada not only to ratify the Kyoto Agreement, but also to begin playing a leading role in international negotiations following Kyoto.

Which is why Montreal will be hosting the eleventh Conference of the Parties to the United Nations Convention on Climate Change in Montreal next December.

With Quebec and Quebec ministers playing a crucial role in drawing up Canada’s positions, our stances on issues as wide ranging as refusing to participate in the anti-missile shield and ratifying the Kyoto Protocol are no coincidence.

I would like to take this opportunity to thank the MPs, Ministers, and Senators from Quebec, who defend and promote the interests of Quebec every day.

Unlike the Bloc, these people take part in the decisions that shape our future.

Through its progressive ideals, its social values, and its innovative ways of doing things, Quebec plays a key role within Canada.

As a Quebecer and a Canadian, it is impossible for me not to see just how lucky we are to live in a federation that allows us to reconcile our diversity with our common ambitions; and when I look to the future, it is impossible not to see the enormous potential of our country.

We have so many assets, united in our determination to build for the coming years, and everywhere you look, there are Canadians who are prepared to seize the opportunities that arise.

That is why I believe in a government that identifies the forces that will be influencing our world and that works to ensure that we will succeed.

That is why I believe in a Canada that represents our values and our interests on the world stage.

That is why I believe in a Canada that is fiscally responsible and will do what is required to achieve a flourishing economy.

That is why I believe in a Canada with affordable day care and a better health care.

A Canada with dynamic cities and communities.

That is why I believe in a Canada with a cleaner environment, a Canada that makes a difference in the world.

That is why I believe in a Canada in which Quebecers feel at home, and in which they can achieve their aspirations.

That is the Canada I believe in.

That is the Canada we will build together.

Thank you.