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Prime Minister's remarks to the Rivière-du-Loup Chamber of Commerce

7 December 2007

Rivière-du-Loup

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It is truly a pleasure for me to address the members of your Chamber of Commerce today. Yours is a dynamic organization, befitting the dynamic region in which you play such an important role. Your warm welcome is typical of a community that is proud of its heritage, and the natural beauty for which Rivière-du-Loup and the surrounding region are known is just icing on the cake. But another reason why I’m here today – the clincher, if you will – is that the very first person to occupy my office, Sir John A. Macdonald, maintained a summer residence in Rivière-du-Loup for a number of years. So, when it comes to hospitality, your region has come by its reputation honestly, and judging by your welcome today, deservedly, I am honoured to say.

While Rivière-du-Loup and its surroundings possess some unique characteristics, your city has a number of similarities with other communities in Quebec and Canada as a whole. Your enterprising spirit is well entrenched and you exhibit determination to ensure your continued prosperity. You look to the future and its many challenges, mindful of the many possibilities it offers as well.

Quebecers – and all Canadians – want a government that sets clear objectives and delivers real results: a government with integrity, one that puts citizens and families first and keeps its word. Our main promise during the last election was to change the political culture in Ottawa and, more specifically, to end the culture of entitlement associated with the previous government.

It was against this backdrop that the Federal Accountability Act came into being.
This law can be summed up in two simple words: never again. Bogus reports? Never again. Phoney invoices? Never again. Sponsorship scandal? Never again. Our Federal Accountability Act has forever changed the way business is done in Ottawa. We’ve really cleaned house and this is how Ottawa has changed: today, when the opposition wants to talk about scandals, they are forced to talk about what may or may not have happened 15 or 20 years ago.

This type of controversy – the influence of big money on politics – is now a thing of the past because donations from large corporations, powerful unions and overly generous donors have been eliminated from federal politics - thanks to our Federal Accountability Act. This law is ushering in a new era. I’ll let the opposition dwell on what happened a generation ago. I, for one, want to talk about the future – and the direction our government is taking this country.

In a speech before the Montreal Chamber of Commerce in April 2006, I laid out the objectives that our newly elected government planned to achieve. I also indicated the principles that would guide our actions in pursuit of these aims. And I added that the time had come to open a new chapter in our history and set out anew for the future. This fresh start can be summed up in two words: open federalism.

I could talk about our philosophy of the federation or of the economy – it does not matter. What I mean is this government’s philosophy is the very opposite of the centralist philosophy espoused by successive federal liberal regimes, from Mr. Trudeau right up to his current successor, Mr. Dion. Rest assured, our federal government is doing what it knows best. Within our own areas of jurisdiction, we are seeking to create an environment in which the other levels of government can do their jobs and in which the private sector and ordinary Canadians can prosper in a global, open and competitive economy. For Quebecers, open federalism means the era of polarization has come to an end.

For over 30 years, Quebecers had to choose between centralization and separation. They don’t want to make that choice any longer, and our government gets the message. Quebecers want a strong Quebec within a united Canada. It is not enough to reject separation. You also have to change the debate, change the agenda – in a nutshell, change the federation. That’s what we’re doing.

On December 19, 2005, just over a month before we came to power, I said this to the Quebec City Chamber of Commerce: "A new Conservative government will practise an open brand of federalism. We will recognize provincial autonomy, as well as the special cultural and institutional responsibilities of the Quebec Government."

Quebec’s seat at the UNESCO table – secured by an agreement with the Government of Quebec and supported by the Leader of the Opposition – is an excellent example of open federalism. It allows is for Quebec’s development to go hand in hand with the rest of Canada’s. It gives Quebec a full and permanent seat within our delegation to UNESCO. In short, the UNESCO pact reflects Quebec’s cultural and linguistic distinctiveness and we, of course, fully recognize this cultural and linguistic distinctiveness.

It’s been more than a year now since Canada’s Parliament, at my invitation, made an historic gesture by recognizing the Quebec nation within a united Canada. I’m aware that when you’re part of a nation, it’s entirely normal to be a nationalist. It’s entirely normal to want to preserve – and develop – your language, your culture and your institutions. But nationalism does not mean separatism. You can be proud of your region and love Quebec without wanting to break up the Canadian federation. Real nationalists don’t want to tear anything down – they want to build. Real nationalists don’t want to shut the door on our young people’s future – they want to open the door wide. Real nationalists don’t fear reality - they want to improve it. Recognizing that Quebecers form a nation within a united Canada reflects reality – the reality of our past and the reality of our future. The Canadian State was founded 400 years ago next year - in Quebec City - and so it will be that Canada, with Quebec firmly in tow, will continue to grow!

I want to spend a moment to acknowledge that, when Parliament recognized the Quebecois as a nation within a united Canada, some genuinely worried that this would undermine the unity of our country. The result has been completely the contrary. This recognition has clearly strengthened the unity of Canada and the place of Quebec within it. Ladies and gentlemen, this is the message that I continue to repeat, in both official languages, throughout our country.

I never tire of stressing the importance of this recognition of Quebecers, in both official languages, wherever I go in Canada – and even in Australia. But nationhood isn’t the only thing we’ve recognized when it comes to federalism. We recognized that the fiscal imbalance did exist – even before coming to power. We did so because we simply couldn’t, as a government, let the situation deteriorate further.

For years, the federal government spent gobs of money in areas under provincial jurisdiction. At the same time, it cut transfers to the provinces and started to rack up huge surpluses. With Budget 2007, we resolved the fiscal imbalance – for real. This means predictable, long-term transfers. In this budget, the move to restore fiscal balance has brought federal aid to the provinces and territories to unprecedented levels. For Quebec, this aid totals more than $15 billion in 2007-2008. This will rise to over $16 billion in 2008-2009. Of this amount, Quebec will receive $7.2 billion this year thanks to a new and improved equalization formula, and roughly $7.6 billion next year. It will receive upwards of $5 billion for health and over $2 billion as part of the renewed Canada Social Transfer. And I would be remiss if I didn’t mention the $350 million earmarked for the Quebec government under the Canada EcoTrust for Clean Air and Climate Change.

This money will allow the Government of Quebec to honour its commitments in this area. It was our government that finally allocated the federal funds that Quebec was asking for to make meaningful reductions in greenhouse gas emissions. Just as it was our government that set the very first mandatory targets for reducing emissions from all Canadian industries, including the petroleum industry. Ensuring access to quality infrastructures is another key priority in resolving the fiscal imbalance. This is why we launched our Building Canada infrastructure plan, to the tune of $33 billion over seven years, half of which will be used as core funding to respond to municipal needs. I don’t need to remind you that when he had the chance to act on the fiscal imbalance, the Liberal leader took a pass. In fact, he even refused to recognize its very existence. Meanwhile, the Bloc couldn’t do a thing. With an eye to strengthening the federation, we begun to place limits on federal spending power.

The recent Speech from the Throne stated that legislation would be tabled to impose limits on the use of federal spending power for new shared-cost programs in areas exclusively under provincial jurisdiction. This legislation will allow the provinces and territories to opt out of these new programs, provided they offer comparable ones, with fair compensation. This will mark another major improvement in the way our federation works, and will garner new respect for the role and responsibilities of each level of government.

If I may, I’d like to take a few minutes to talk about open federalism and the economy. In the grand scheme of things, ours is a small – albeit open – economy. We must be able to sell our goods and services in a competitive world in order to offer good jobs to Canadian families and communities. Our government is committed to maintaining one of the most competitive and attractive business environments in the world. That goal underlies all our economic actions, including the recent Economic Statement and the major tax reductions announced for individuals, families and business. We are taking many actions to ensure a strong economy over the long term. But nothing is more important than sound fiscal policy, results-based expenditure, repayment of the debt, and lasting tax relief.

By February, we will have paid down $37 billion of the federal debt since we came to power. At the same time, since forming a government 22 months ago, we have taken action to cut overall personal and corporate taxes by nearly $200 billion over five years. There were also several pieces of good news in the Economic Statement delivered by the Minister of Finance on October 30. Taxes are being lowered for everybody: families, workers, business people, investors and consumers. Thanks to the fiscal measures announced on October 30th, purchasing power will go up, take-home pay will increase, and Canadian businesses - from small entrepreneurs to global giants - will flourish and create jobs.

You are business people in this region and were no doubt happy to hear that federal tax on corporate income will drop from 22 per cent this year to 19.5 per cent on January 1, and 15 percent by 2012. This is the lowest corporate income tax rate among the major developed economies.

Individual Canadians are also benefiting from tax relief. The basic personal exemption has been raised again and the lowest individual tax rate has been lowered. Over 600,000 low-income Canadians have been taken off the tax rolls. Another eagerly awaited action is, of course, the cut in the GST, three years ahead of what I promised in the last election, from seven to six to five per cent. Finally, the universal childcare allowance of $100 per month for each preschool-age child will continue to be paid to parents in Quebec, and the $2,000 child tax credit is now available for all children 18 years of age or younger.

As a result of the actions of this government, the tax burden will be at its lowest level in nearly 50 years—since before the policies of the late 1960s and, of course, the Trudeau era. It is no coincidence that unemployment is currently at its lowest level in 33 years, either.

Our government is also committed to defending traditional industries that face serious challenges. We have taken action and we will take even more in the next budget. I am talking about key sectors such as the forest and manufacturing industries which are being forced to change in response to a demanding business environment. We have taken action to support these industries, their communities and their workers, and will continue to work in this direction.

Our government has already invested in the Forest Industry Long-Term Competitiveness Initiative to promote innovation and investment and expand market opportunities. We have also invested in programs for older workers. These investments will help forest industry workers living and working in vulnerable communities, including six regional county municipalities in the Bas-Saint-Laurent. This is in addition to the $5 billion that the Canadian forest industry has recovered as a result of the softwood lumber deal, which will ensure stable, predictable access to the US market for at least seven years.

Moreover, the new accelerated capital cost allowance for the manufacturing sector announced in Budget 2007 provides for write-off of expenditures for equipment over two years, thereby fostering new investment and job creation. And the capital cost allowance rate for buildings used in manufacturing and processing is being increased to 10 per cent from 4 per cent. In addition, the rate for computer equipment is being raised to 55 per cent from 45 per cent. I have noted that, despite problems in some sectors, the unemployment rate in Quebec is at its lowest rate in 33 years. Nearly 130,000 new jobs have been created in Quebec since January 2006. We will continue to take action to ensure regional vitality and to support Quebec businesses by helping them to become more innovative and competitive.

As stated in the October 16th Speech from the Throne, our government will stand up for Canada’s traditional industries. We are well aware that key sectors such as the forestry and manufacturing are facing challenges. Our government will continue to take action to support them in the next budget. We firmly believe that Canadian businesses’ competitiveness in the global market is one of the keys to our prosperity both today and in the future. That is why it is important to invest in companies like Rivière-du-Loup’s Premier Tech, which enhances our knowledge by finding innovative solutions to environmental challenges.

To this end, last year our government last year made a commitment to repayable investment in research and development projects by Premier Tech and its employees. In addition, between now and 2010, the city of Rivière-du-Loup will receive $2 million in federal funding through the gas tax transfer, part of our Building Canada Plan. The Rivière-du-Loup region will receive a total of over $5 million between 2006 and 2010.

We are also encouraging the development of the Bas-Saint-Laurent region as a whole. Funding has been provided:

to the Régie intermunicipale des infrastructures portuaires de Trois-Pistoles et Les Escoumins;

to Sainte-Anne de La Pocatière for the inauguration of the business incubator for agri-food processors, a central component of the Bas-Saint-Laurent agrobiopolis; and

to carry out repairs to the ports of Matane, Gros-Cacouna, Cap-aux-Meules and Rimouski, to maintain the safety of facilities and ensure continued port activities.

These investments show how the open federalism practiced by our government can help build a stronger economy, a healthier environment, and more prosperous communities across Quebec.

Ladies and gentlemen, the government I lead has made great strides in a short period of time, but it has no intention of resting on its laurels. We intend to keep up the momentum through policy that promotes the growth of our economy, as we have done since we came to power, and we will do so in cooperation with our partners in the federation. Ladies and gentlemen, I know Quebecers are people of their word and they know the value of keeping one’s word. We made some promises during the last election campaign and they were not empty promises. We have taken real action and have delivered on those promises, with confidence and resolve. Almost two years after taking office, we have made good on almost all of our commitments and I am proud to say that we did this with a minority government.

Our results since forming a government are clear: the economy is strong, the government is clean, the country is united and Canada is back on the international stage. But I came here today to tell you that it is not over—it has just begun! With our shared values and principles, we can build a stronger Quebec and a better Canada.

Thank you.

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