The 1999 Speech from the Throne:
Dynamic Economy for the 21^st Century

October 12, 1999

The 20^th century has seen Canadians build a strong and dynamic economy. One that is the cornerstone of our quality of life – providing Canada with the means to continue building a more equitable society, a healthier population, and stronger communities.

Our goal is to take the steps needed, with partners, and make the investments necessary to build on that strength and dynamism in the 21^st century. To make Canada the place to be in the global, knowledge economy.

To keep building an innovative Canada with high levels of productivity -- which adopts the latest technology - quickly - invests in skills development, and seeks out new trade opportunities around the world.

We will do so using the comprehensive, balanced, economic strategy that, in six years, has transformed Canada from a candidate for the Third World into a nation that has one of the strongest and most fundamentally sound economies in the G-7.

A balanced approach that has conquered the deficit and in which we will invest our surpluses 50:50 -- 50 percent in tax and debt reduction and 50 percent in economic and social needs.

A Record of Achievement

We have ended an era of skyrocketing deficits and public debt -- for good. We have brought down back-to-back balanced budgets for the first time since 1951-52. We have put the debt-to-GDP ratio on a permanent downward track.

The fiscal turnaround, coupled with low inflation and interest rates, has helped power the longest economic expansion since the 1960s: creating 1.7 million new jobs since 1993; and, reducing the unemployment rate from above 11% to below 7.5%.

In the last two budgets, taxes have been cut by $16.5 billion over three years -- 600,000 low-income Canadians will no longer pay federal tax.

We have made key investments to boost innovation and skills development, such as:

• The Canada Foundation for Innovation -whose $1 billion endowment is helping to build a leading-edge national system of innovation;

• The Canada Millennium Scholarship Fund: a $2.5 billion endowment that - in January 2000 - will begin generating over 100,000 scholarships each year for low- and middle-income post-secondary students.

In the 1999 Budget, we made our largest single new investment since coming to office by committing an additional $11.5 billion over five years to the provinces and territories, specifically for health care.

We implemented the National Child Benefit – the most innovative new social program since medicare.

We have modernized social programs including establishing a new Employment Insurance program and restoring the financial sustainability of the Canada Pension Plan.

Through Team Canada and Team Canada Inc. we have helped Canadians gain access to global markets. And we have promoted long-term investment opportunities by signing trade agreements like NAFTA.

1999 SFT Commitments

• We are committed to never letting the nation's finances get out of control again. We will keep the debt-to-GDP ratio on a permanent downward track.

• We will further reduce taxes to increase the after-tax incomes of Canadians. The next budget will lay out a multi-year plan for tax reductions.

• We will continue to create opportunities for Canadians to access foreign markets and to promote Canada as an ideal place in which to invest.

• We will increase our support for life-long learning to continue building the most highly skilled workforce in the world that is part of the Canadian advantage in the knowledge-based economy.

• By helping to build the knowledge, information, cultural and physical infrastructure for the 21^st century, we will help expand Canada's capacity to create new ideas, to communicate and share ideas, to use new technologies to connect Canadians to their culture, and to move people and goods safely and efficiently around the country.