Notes for an Address to the Mississauga Board of Trade

February 17, 2000
Mississauga, Ontario

Over the past weeks and months, thousands if not millions of words have been written and spoken about the end of one millennium and the beginning of another. The dawn of a new century may be symbolic. But the new world and the new economy in which we live is very real.

The information highway is revolutionizing business, government, society and citizen participation. We are in a global race where national vision is essential. Where partnerships are key. Where government provides the framework, but where the private sector builds. Where global thinking is a must. And where speed wins.

When we assumed office less than 7 years ago, e-commerce was just a spelling mistake. Today, it is a multi-billion dollar force that is transforming the way the world does business. The Internet was a gleam in the eye of some Pentagon researcher. Then there were 50 pages on the World Wide Web. Today there are 50 million. The Internet is the most dramatic example of the sweeping global changes being triggered by the emergence of the global knowledge-based economy.

When we took office, we knew that we had to prepare Canada for the new century and the new economy. We knew that government cannot do everything; that government must focus on those areas where it can make a real difference. And we began with a plan. A plan that has worked.

Getting the books in order. Promoting trade and investment. Improving the environment for doing business. Increasing productivity. Sustaining our public pension system and our public health care system for the long term. Investing in knowledge, children and health. Reducing taxes.

We have worked very hard to be prudent, professional and competent managers of public money. And like all businesses in the private sector, we too have auditors who always tell us how to improve the way we manage our records. Who always show us what we have to do better.

And I can assure you that we take what our auditors say very seriously. Before we took office, the Auditor General reported to Parliament once a year. We have authorized him to report four times a year. I am committed to making all the improvements we possibly can in our record-keeping and in the management of public money, while at the same time serving the public without undue bureaucracy, regulatory burden and red tape. But let us put some of the headlines in perspective.

When we took office, we had a $42 billion deficit. Today the books are balanced. And will continue to be so. The economy is growing rapidly. Close to 4 per cent in 1999. Our debt burden is falling. Interest rates are low. Inflation is low and stable. Incomes are rising. Hundreds of thousands of jobs are being created every year: 1.3 million from the end of 1996 to January 2000; 425,000 last year alone. When we took office, the unemployment rate was 11.5 per cent. Today the unemployment rate, at 6.8 per cent, is the lowest it has been in a quarter of a century. Business and consumer confidence is high.

We have the most advanced fibre optic network in the world. We have the lowest telephone rates. Canada is Number One in home computer, cable and telephone penetration. We are the first major country in the world to have connected all our schools and libraries to the Internet.

Our approach as a government has been step by step. But we have taken a lot of steps in the last six years. And thanks to the courage and discipline of Canadians we have accomplished extraordinary things in the last six years. We are now well positioned to take advantage of the new economy and to prosper in it. We are now well positioned to move forward with boldness and vision.

Last fall, the Speech from the Throne set out a comprehensive strategy for Canada to be a leader in the knowledge-based economy. To make Canada the place to be in the 21^st century. With a dynamic economy. An innovative population. Where prosperity is not limited to the few. But is shared by the many. Where every child gets the right start in life. Where young people have the chance to be the best at whatever they want to do. Where citizens have access to the skills and knowledge they need to excel. Where citizens, regardless of income, receive quality health services.

In less than 2 weeks, the Minister of Finance will bring down the first budget of the 21^st century. It will be a bold budget. A forward-looking budget. A budget that builds on the accomplishments of 6 successful budgets. The fourth balanced budget in a row. A budget where not only the books are balanced, but where the approach is also balanced.

A budget that continues to address the priorities of Canadians in health and education. A budget that recognizes that our standard of living and our quality of life are directly linked to our success in fostering knowledge creation, innovation and adaptability, and maximising educational opportunity. A budget that integrates the economy, social policy and the environment.

A budget that speaks to creating opportunity for our under-graduates, our graduate students and our graduates. To creating opportunity for the 25 year old and 30 year old innovator with business ideas that need to be turned into flourishing enterprises. A budget that encourages risk and rewards success. A budget that will make Canada the place to be for creativity, enterprise and entrepreneurship. A budget that rewards the discipline that Canadians have shown. A budget that addresses the need of families with children for tax relief.

A budget that sets out a comprehensive multi-year tax reduction plan. A plan that will lay out clear targets and achieve them. Just as we did in reducing the deficit. With the same determination. And the same success.

But a budget that also recognizes that tax reduction is only one part of the equation. That success in the global economy requires investment as well as tax reduction. That success depends on our human talent, our ability to learn, to adapt quickly to new opportunities, to make new discoveries. The budget will balance all these essential elements. It will provide for investment in children. In knowledge. In creativity. In innovation. In health. In the environment.

In ten days you will see what our budget does to create a climate for creativity, enterprise and entrepreneurship. But governments themselves are not entrepreneurs. The best we can do is to help create a climate that supports entrepreneurs.

But the private sector has the responsibility to deliver. And so I challenge business in Canada to change its concept of risk. To improve access to capital and particularly venture capital. To give greater priority to start up companies. To be more aggressive in seeking out new markets around the globe. To invest more in research and development and in training their manpower to meet the challenges we face.

Canadians, per capita, are greater users of the Internet than Americans. But our business community is very slow to get on-line for e-commerce. While we are putting in place the right policy framework for electronic commerce, I challenge the private sector to work towards the goal of capturing 5 per cent of the world share of e-commerce for Canada by the year 2003. And do over $200 billion of business this way.

We have enormous challenges and enormous opportunities in Canada. To be successful, we all have to work together, all levels of government, the private sector, the voluntary sector, non-governmental organisations. Even governments with different approaches to public policy.

I frankly do not find it useful or productive when Premier Harris sponsors partisan advertisements by the Tory Party about what the federal government should have in our budget. Or when he lectures us about how to run the federal government. Because if he continues to do so, I might have to respond.

I might have to tell him that tax cuts are important, but should not be paid for with borrowed money. I don't always agree with Ralph Klein and Lucien Bouchard. But the three of us believe that first, deficits should be eliminated. And only then should taxes be cut. Unlike Ontario, which has financed its tax cuts by increasing its cumulative deficit by $14 billion over the last 4 years. That goes straight into the debt of the province.

I might have to tell him about the importance of a balanced approach to preparing Ontario and Canada for the 21^st century. I might have to remind him that federal transfers to Ontario - cash and tax points - are higher today than when we took office, although overall, federal spending is lower. I might have to tell him that, yes, tax cuts are important, but not at the expense of Ontario's health system.

Yes, tax cuts are important, but not at the expense of Ontario's system of post-secondary education. Do you know that Ontario universities have the highest tuition fees in the country and that Ontario spends less per capita on post-secondary education than any other province? Is this the best way to prepare people in this province for the knowledge-based economy?

I do not want to score too many debating points. I'll try to resist the temptation. But you know me well enough to understand that when I am attacked, I respond.

Having said this, there is too much that we can and must accomplish together to waste our time in political fighting. The people of Ontario have elected both of us. They expect us to work together. You should know that Mike Harris and I have worked very well over the years despite our disagreements. And I tell him today that we must continue to work together. That we must put aside political partisanship. And it is not hard to do so. Fundamentally our objectives are the same. Even if our approach to achieve them is different.

We both want to make Canada the place to be in the 21^st century. The place where people want to come and stay. To open new frontiers. To reward success and excellence. To pursue opportunities. To raise children. To enjoy natural beauty, safe communities and a clean environment.

A country that promotes peace, cultural diversity and the human purpose and benefits of the new global economy. A Canada that is a leader and an example to the world.