Canada's Economic Action Plan: "Commitments made, commitments kept"

Address by the Honourable Josée Verner
President of the Queen’s Privy Council for Canada,
Minister of Intergovernmental Affairs,
Minister for La Francophonie,
Minister responsible for the Quebec City Region, and
Member of Parliament for Louis-Saint-Laurent

Quebec City Chamber of Commerce
Friday, January 30, 2009

Mr Chairman of the Quebec City Chamber of Commerce,
Ladies and gentlemen at the head table,
Ladies and gentlemen,

I am very pleased to be here today, first as the Member of Parliament for Louis-Saint-Laurent, but also as Minister of Intergovernmental Affairs, President of the Queen’s Privy Council for Canada and Minister for La Francophonie, and Minister responsible for the Quebec City Region, to talk about the Economic Action Plan our government released on Tuesday.

During what it is probably one of the worst global economic crises in the past 80 years, I am part of a responsible government that is responding quickly and effectively to the challenges we are facing.

We have assumed our responsibilities, just as we have done since January 2006. We've talked the talk and walked the walk. Commitments made, commitments kept.

Thanks to the open-mindedness of our Prime Minister, we have recognized the Quebec nation, and in that same spirit, the budget we tabled on Tuesday contains tangible measures to help y you.     

We made a commitment that the Government of Canada would work to make the celebrations of the 400th anniversary of the founding of Quebec City a success. We contributed $110 million to that cause. The people of Quebec City and visitors from around the globe experienced unforgettable moments. One has only to think of the performances of Paul McCartney, Céline Dion, Moulin à images and so many others…

I want to take this opportunity today to congratulate Jean Leclerc, Daniel Gélinas and their team for a job well done.  BRAVO!

On regional commitments, our caucus made substantial contributions in 2006. Those include the Chauveau covered soccer stadium, the airport modernization, and other major investments in the region. More recently, we have made commitments in connection with the expansion of the Musée national des beaux-arts de Québec, as well the Super Peps.

Those two projects were part of the Canada Works program announced by our two governments last fall. Make no mistake:  the money is there for the Museum and the money is there for Super Peps.  Mr Denis Brière of Université Laval confirmed in a recent interview that the project is 100% on track.

In 2007, neither you nor our government could have foreseen the scope of the economic crisis we are now grappling with.  When it became clear that the economy was beginning to slow down, and that uncertainty was intensifying, we fast-tracked the budget and made it a genuine Economic Action Plan for Canada.

Our government has acted:  first with all members of the financial community so that YOU, local businesspeople, can obtain the liquidity you need, so that YOU can invest and continue to create wealth and jobs here in Quebec City and in our region.

In that regard, I want to congratulate Quebec City's business community for its hard work and its dedication to our region's economic development. Your ingenuity and entrepreneurship will be key to helping our region get through these troubled times. Your entrepreneurial culture and your capacity for innovation and excellence will help the Quebec City region's economy to weather this economic crisis.

After experiencing continuous economic expansion in the past 16 years, the Canadian economy began to slow down last quarter, and the Government's tax revenues are already down. So tangible measures have to be taken now.

To achieve that goal, during our pre-budget consultations on January 12, you told my colleagues and me that we need to find tangible solutions together to help the Quebec City region.

This is what you suggested:

First of all, you called on us to support research and development and the productivity and competitiveness of our businesses.

Furthermore, you called on us to make sure that infrastructure investment is not only maintained, but fast-tracked, and that building projects already approved start right away. You also stressed the need to eliminate barriers among provinces. And you wanted to see tax cuts as well.

Here are some of the measures contained in our Action Plan:

• $750 million will be invested in leading-edge research infrastructure through the Canada Foundation for Innovation.

• To foster competitiveness, we will provide $1 billion over two years for a Community Adjustment Fund, through regional development agencies of Canada Economic Development (CED), here in Quebec.

In terms of immediate measures for infrastructure, we will create:

• $12 billion in stimulus funding, with $4 billion earmarked to build roads, sewers and water lines.

We will also allocate:

• $500 million over two years to build and renew community recreation facilities;

• $100 million to fund marquee festivals and events;

• $60 million to support infrastructure-related costs for cultural and heritage institutions;

• and $60 million to promote tourism.

On January 16, I was with the Prime Minister when the premiers and territorial leaders signed an agreement on labour mobility to enable Canadian workers to practise their occupation throughout the country. We are also adding $1 million over two years for unemployment insurance training. I am sure that measure will put a smile on the face of my friend and colleague, Minister Sam Hamad.

There will also be $20 billion in tax cuts in 2008-2009 and over the next five years. So starting in January 2009, our budget is giving more money to our seniors and our families. And our businesses will have the lowest tax rates on new investments in the industrialized world.

For small and medium-sized businesses, we are providing more financing options, as well as tax relief.

Our Economic Action Plan includes an ambitious package of immediate measures to get shovel-ready projects up and running. It would not be complete without structural investments sought by provinces and municipalities. In that connection, my colleague responsible for infrastructure, John Baird, met with the mayors of major Canadian cities, including a representative from Quebec City, of course.  Their message was clear:  infrastructure projects need to get underway as soon as possible.

In short, ladies and gentlemen, there are billions of dollars on the table:  now we need to decide how to get the most bang for our buck.

The Government is committed to work with provinces and municipalities. I have already had meetings and discussions with my provincial colleague, Sam Hamad. And I am delighted that Mayor Labeaume wants to work with us as well. This will further the interests of our region.

There are a number of other projects that are important to us, including HST, the Port of Québec, the Airport customs centre, and many others.

We are providing ongoing support for projects that benefit our region. But bear in mind that our Economic Action Plan focuses on tangible measures, and shovel-ready projects.

I am sure you won't mind if I say a few words about the Armoury. Our Budget earmarks up to $2 million to develop a plan for the future of that heritage building. I want to salute the Voltigeurs and tell them they are and will always be an integral part of the Armoury.

I just talked about the fast start-ups set out in our Action Plan. As promised, public consultations will be held in the spring.

I therefore invite all interested groups and individuals to make their voices heard. So prepare your projects and bring your ideas to the table, because in six months it will be too late.  

In conclusion: we all have the duty and the responsibility to do everything we can to rise to the challenge of this global economic crisis. We need to join forces and work together, inspired by the same goals.

Because failure is simply not an option.