Canada’s Economic Action Plan

February 16, 2009

Good afternoon, and thank you for the opportunity to speak with you during this critical period for Canada.

Here in Athabasca, and across the country, we are passing through an extraordinary period.

A synchronized global recession is hitting every economy in the world.  Canada, as a great trading nation, is feeling the effects.

On January 27th, Finance Minister Jim Flaherty delivered Canada’s Economic Action Plan.

It is Canada’s plan to stimulate our economy, to protect Canadians during the global recession; and to invest in our long-term growth.

Our government built this plan after one of the broadest and deepest consultation processes in Canadian history.  We heard Canadians’ concerns about their jobs and their savings; about their families, businesses and communities.

We listened to their concerns, and took their advice.

Now we’re taking immediate action.

Canada’s Economic Action Plan will provide almost $30 billion in support to the Canadian economy this year.

First, we’re taking action to help Canadian families and stimulate consumer spending.
Our record of tax relief is substantial, and it is providing stimulus to Canada’s economy as we speak.

Canada’s Economic Action Plan builds on our substantial tax relief record by increasing the basic personal amount to $10,320 from $9500 and extending the first two income tax bracket ceilings from $37,885 to $40,726 and from $75,769 to $81,452 respectively.

Seniors will also see new support through an increase in the Age Credit Amount by an additional $1000 and a reduction in the RRSP withdrawal amount.

The bottom line is that this year and over the next five, our personal income tax measures will put about $20 billion back in Canadians’ hands, and back in the Canadian economy to keep it moving forward.

And that’s not all we’re doing to jumpstart the economy.

Canada’s Economic Action Plan freezes Employment Insurance payroll taxes for the next two years, and gives a shot in the arm to the home construction and home renovation industries – both key drivers of our economy.

We’re also taking significant action on infrastructure.

We know that getting shovels in the ground today will create jobs for Canadians now, while providing the framework for Canada to grow upon in the years to come.

The money will flow quickly, and the shovels will hit the ground quickly.  We will see a smoother approval process for projects, and less bureaucracy and red tape.

For communities like ours all across the country, it will mean real benefits.  More people working, more people selling their products, and a better quality of life.

Roads, bridges, water and sewer systems, yes.  But also recreation and community infrastructure. 

In addition to the $33 billion infrastructure commitment of Building Canada, our Economic Action Plan will provide almost $12 billion in additional stimulus for our economy.

With regard to specific sectors of the economy, we are offering targeted support for a wide range, including forestry, manufacturing, tourism, agriculture, fisheries and the automotive industry.

For those Canadian families who will face job loss, we are taking immediate action.  We are strengthening Employment Insurance with new benefits and increased availability of training for those who lose their jobs.

The support and training for those who find themselves looking for work means very little if businesses lack access to the financing they need to invest, grow, and hire new people.

Canada’s Economic Action Plan creates a new Extraordinary Financing Framework. 
This consists of $200B in measures to support the extension of financing to Canadians and Canadian businesses.

Alberta will continue to receive historically high and growing federal transfers in 2009-10 that will total $3.6 billion including growing health and social transfers of $1.9 billion and $1.2 billion respectively.

Our Economic Action Plan provides Alberta, specifically, with over $8.7 billion through its various investments including the Skills and Transition Strategy, infrastructure, tax relief, the Clean Air and Climate Change Trust, and the Police Officers Recruitment Fund.

Canada’s Economic Action Plan meets the challenges of our time.  It is balanced between stimulating our economy for the short term, and building our capacity for the long term.

It is balanced between putting money back in the hands of Canadians, and new investments.

With this stimulus plan, Canada will emerge from this recession with a more modern and greener infrastructure, a more skilled labour force, lower taxes and a more competitive economy.

I look forward to seeing it pay off for businesses, for families, and for you, for years to come.