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Budget 2017Building a Strong Middle Class

Mr. Speaker,

As Canadians come together to celebrate Canada 150, we proudly reflect on the generations that
came before us.

Generations that built a country on the belief that with hope and hard work, they could deliver a
better future for themselves, and for their kids and grandkids.

That optimismand that confidencehelped define us as a country.

Sharing those beliefs with others made Canada a beacon of diversity, openness, and generosity
around the world.

Yet, over the last few decades, the middle class and those working hard to join it have fallen
behind.

Everyday folks who work hard to provide for their families are worried about the future.

Theyre worried that rapid technological change, the seemingly never-ending need for new skills,
and growing demands on our time will mean that their kids wont have the same opportunities
that they had.

And who can blame them?

For a decade, middle class struggles were simply swept under the rug.

People were left without a clear vision for growth at a time of unprecedented change.

But the good news is that Canadianson their own accordworked hard and persevered.

We have always been resilient and innovative, able to adaptand prosperin the face of
change.

Knowing that, we put together a plan to ensure that, in a changing world, Canadas middle class
and those working hard to join it canand willsucceed.
A year and a half ago, our Government set out to deliver the kind of change that would make a
real difference for Canadians.

We said we would help people retire with dignity.

We said we would ask the wealthiest 1 per cent to pay a little more, so we could cut taxes for the
middle class.

We said we would make smart, responsible investments in our communities.

Thats exactly what we did.

Weve delivered on behalf of Canadians.

And were just getting started.

Now, we realize that there is much more work ahead of us than behind us.

But I remain inspired that were on the right path.

One of the most memorable moments Ive had as Canadas Finance Minister happened in a taxi
cab in Toronto.

On my way home one night, my taxi driver, Mian, recognized me, and we started chatting.

Then he did something that surprised me.

He called his wife and put her on speakerphone.

They wanted to talk to me about the difference the Canada Child Benefit had made in their lives.

Youll remember, Mr. Speaker, that this benefit gives 9 out of 10 Canadian families more help
with the high cost of raising their kids.

In Mians case, with three children aged 11, 9, and 10 months, the Canada Child Benefit means
that he and his wife receive about $300 more per month than they did a year ago.

Thats an extra $3,600 every year, tax-freemoney that can be put toward groceries, school
supplies, and new clothes.

There are countless other stories like this one across the country, each a sign that confidence is
building and that our plan for middle class prosperity is working.

Stories like Davesa plumber from British Columbia who took advantage of a training
program supported by the federal government to get his Red Seal certification last year. Now he
has a well-paying job and is able to return to work in his community.

And Nebis, a mother of three from a remote Algonquin community in Quebec.

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The Canada Child Benefit has helped keep her three kids enrolled in hockey this season.

Mian, Dave, and Nebis, like millions of middle class Canadians, want to see progress for
themselves and their families.

They want a government that puts people first.

They want a government focused on creating good jobs today, while also preparing Canadians
for the jobs of tomorrow.

They want a government that puts our skilled, talented, and creative people at the heart of a more
innovative and globally competitive Canada.

Mr. Speaker, heres how were doing it.

Infrastructure

Across the country, were building stronger communities.

Were doing it by creating jobs, shortening commutes, ensuring clean air and water, and
improving quality of life for millions of Canadians.

In the last year and a half, 744 public transit projects have been approved and are creating good,
well-paying jobs for Canadians.

In Calgary and Ottawa, long-awaited and transformative light rail transit projects are underway.

In Montral and Vancouver, riders can look forward to a more enjoyable commute thanks to
rehabilitation work being done to the metro and SkyTrain systems.

Were repairing nearly 50,000 social housing units, to make sure families have a safe and secure
place to live.

Weve lifted 18 long-term boil water advisories in First Nations communities, getting us closer
to our ultimate goal of ensuring that every child in Canada has access to clean drinking water.

Ten years from now, our cities, towns, and northern and rural communities will be healthier and
better connected.

Our air and water will be cleaner.

More Canadian goods will get to international markets.

And modern, efficient public transit systems will get hard-working parents home more quickly at
the end of a long day.

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Innovation and Skills

Mr. Speaker, as we look to the coming decades, we see the potential of new innovations to
transform our lives.

Self-driving cars, artificial intelligence, genomics, quantum computing, mobile payments, the
sharing economy

These ideas are changing our world for the better, just like the innovations that have
preceded them.

A few decades ago, we never could have imagined how mobile computing would impact
our lives.

Today, a 5-year-old in Victoria can video chat every night with his snowbird grandparents in
Florida on a phone or tablet.

Thanks to e-commerce platforms like Alibaba, an Alberta farmer can sell top-quality beef to
300 million potential buyers in China.

And cutting-edge research from Montral has led to breakthrough treatments for
multiple sclerosis.

Mr. Speaker, we must see the immense opportunities that these changes bring with them.

Opportunities for progress and prosperity.

And while the rapid pace of change can seem dizzying at times, we must never lose sight of
whats driving these breakthrough innovations: people.

People like Mian, Dave, and Nebis.

And so, as we create the jobs of tomorrow, we will support a culture of lifelong learning and
skills training to help workers and their families adapt to the changing demands of our time.

We will help students get the skills and work experience they need to kick-start their careers.

We will make it more affordable for thousands of adult workers to learn new skills while raising
their families.

And we will give people whove lost their jobs the chance to go back to school for further
training, helping these Canadians advance their careers, and turn challenges into opportunity.

To give our young people the best possible start, we will promote hands-on learning in science,
technology, engineering, and math, especially for young women, girls, and Indigenous youth.

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Building on work being done by impressive organizations like Ladies Learning Code and Actua,
we will encourage students to learn coding in the same way they learn to read and write,
preparing our kids for the jobs of the future.

Mr. Speaker, Budget 2017 is about creating good middle class jobsnow, and in the years
to come.

And to do that, we need to focus on our strengthsareas where we can lead globally and create
good jobs for Canadians.

In this budget, we are making investments in six economic sectors where Canada will lead the
way: digital, clean technology, agri-food, advanced manufacturing, bio-sciences, and
clean resources.

Mr. Speaker, in the realm of digital technology, I know two things to be true. One: Canada can
be a world leader in digital innovation. And two: we cant afford not to be.

Thats why we will launch a Pan-Canadian Artificial Intelligence Strategy, and bring together
Canadas main centres of AI expertise to drive investment and job creation across the country.

In agri-food, too, were positioned for success.

By 2050, global demand for food is expected to rise significantly.

That means more demand for Prairie canola, Atlantic crab and lobster, and B.C. berries.

It also means more jobs in the fields of southwestern Ontario, and on the maple syrup farms of
Quebecs Eastern Townships.

We will help farmers, producers, and processors build their businesses globally, and do
so sustainably.

Mr. Speaker, Canadians know that our environment and our economy go hand in hand.

Its why weve worked with the provinces and territories to adopt the Pan-Canadian Framework
on Clean Growth and Climate Change.

This not only means cleaner air to breathe; it means business and investment opportunities, too.

It means that jobs installing solar cells, manufacturing electric cars, or developing cleaner fuels
will be in high demand.

Luckily, our energy sector is already well positionedto not only compete, but to lead.

By investing in clean technology and responsible resource development, we will preserve our
environment for future generations, create great jobs, and re-stake our claim as a leading supplier
of energy to the world for the next 150 years.

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A Real and Fair Chance at Success

Mr. Speaker, our plan is clear.

Smart, ambitious investments in people, communities, and high-growth industries lead

Opportunities lead to jobs.

Jobs lead to a more confident and growing middle class.

And a more confident, growing middle class is the only path to strong and sustained
economic growth.

The Governments role in all of this is to lend support to those who are driving us forward, and
to make sure everyone has a real and fair chance at success.

This means ensuring our most basic needs are met.

Health

And health and well-being are at the top of that list.

Though our universal health care system is a source of pride for many Canadians, we know that
more can be done for families caring for aging or disabled loved ones.

Its why this budget provides support for caregivers helping loved ones at home, and makes it
easier for Canadians living with disabilities to get the tax relief they need.

Mr. Speaker, we believe that, whether their ailments are physical or mental, Canadians from
coast to coast to coast deserve the best possible care that we can provide.

They deserve our help.

And Im pleased that, with leadership from the Minister of Health, over the last several months
we have reached health agreements with nearly every single province and territory.

Through these landmark agreements and historic health transfers to provinces and territories
which represent over $200 billion over the next five yearswe will reduce stress for families,
and ensure that every young person under the age of 25 gets the mental health support they need.

Housing

Mr. Speaker, having had the honour of representing and meeting families in St. James Town and
Regent Park, Ive seen first-hand the challenge of affordable housing.

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And so, it is my privilege to announce that the Government will be investing over $11 billion
the largest single commitment in Budget 2017in support of a National Housing Strategy, to
help ensure every Canadian has a safe and affordable place to call home.

Our Government has shown, and will continue to show, national leadership on housing.

And we will prioritize support for vulnerable citizens, including: seniors, Indigenous Peoples,
survivors fleeing domestic violence, persons with disabilities, those dealing with mental health
issues, and veterans.

Empowering Women at the Heart of Our Economy

Mr. Speaker, the decisions we make, and the policies we create, impact men and
women differently.

In order to make laws and develop policies and programs that are in the best interests of all
Canadians, we have to know what kind of impact theyll have.

We know, for example, that while Canadian companies are getting better when it comes to hiring
more women, theyre still less effective at promoting women to senior roles.

And we know that fewer women join or stay in the workforce than men.

That means that as a country, we arent taking full advantage of the talents, insights, and
experience of more than half of our population.

It seems unfathomable. But its true.

Its why we need to do better.

And so, as a first step, weve asked the Canada-United States Council for Advancement of
Women Entrepreneurs and Business Leaders to quickly advise us on how we can better empower
women entrepreneurs, and remove barriers for women in business.

But not all obstacles to progress are as obvious.

So, in Budget 2017, we did something that, frankly, should have been done a long time ago.

We published the Governments first ever Gender Statement, an assessment that ensures all
budget measuresnot just those aimed specifically at womenhelp us advance the goals of
fairness, stronger workforce participation, and gender equality.

Mr. Speaker, we realize that this is just the start, and we look forward to feedback on this first
effort, which well then build into future budgets.

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Child Care

Another one of those barriers, Mr. Speaker, is access to quality child care.

Too often we hear stories of single parents living in poverty because the cost of child care is so
high, they cant afford to go back to work.

And thats not right.

To help low- and middle-income families with the costs of child care, we are committing
$7 billion over the next decade to increase the number of high-quality child care spaces available
across the country.

In order to provide immediate relief to Canadian families, we could create up to 40,000 new
subsidized child care spaces over the next three years by working with the provinces and
territories.

Canadian parents deserve our support, and theyre going to get it.

Indigenous Peoples

Mr. Speaker, we know that strong partnerships between the federal government and Indigenous
communities are crucial for our success.

By 202122, as a result of the investments made in this budget, funding for Indigenous
Peoples will be over $3 billion higher than when we took office. This represents an increase of
27 per centwell in excess of what would have been provided under the decades-old 2 per cent
funding capand will contribute to a higher quality of life on reserves. All this, while setting
Canada on a path toward true reconciliation with Indigenous Peoples.

This work continues today, both because it is a recognition of the rights of Indigenous Peoples,
and because its essential to our economic future.

Together, we will build stronger, more resilient communities and renew our nation-to-nation
relationship with First Nations, Inuit, and Mtis.

We will help break down employment barriers, with a focus on skills development, training, and
better education.

And we will provide greater access to mental health, wellness, and suicide prevention services,
while working with Indigenous communities to combat substance abuse.

Fairness for the Middle Class

This is our plan for Canada.

For it to succeed, we all have to do our share.

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Mr. Speaker, I have been very fortunate in my life to have had a successful career in business.

And Ive always paid my fair share of taxes.

But it can be tempting for some to take someones advice here, and plan a little more
strategically there.

Our review of federal tax expenditures, for example, highlighted a number of issues around tax
planning strategies using private corporations.

Strategies that can result in some very wealthy individuals getting unfair tax breaks at the
expense of others.

Mr. Speaker, Canadians expect a fair tax system. Our Government is committed to taking action
on this issue, and we will have more to say on this in the near future.

One of our Governments very first actions was to raise taxes on the wealthiest 1 per cent of
Canadians, so that we could cut taxes for the middle class.

And because of this tax cut, 9 million Canadians see more money on every single paycheque.

That, Mr. Speaker, is change that makes a real difference in peoples lives.

We also gave the Canada Revenue Agency more resources to detect, audit, and combat illegal
tax evasion and aggressive tax avoidance.

Going forward, we will close loopholes that result in unfair tax advantages for some at the
expense of others.

We will eliminate inefficient tax measures, especially those that disproportionately benefit
the wealthy.

And we will work with the provinces and territories to crack down on those who hide their
identity to avoid paying taxes.

Because, Mr. Speaker, let me be clear:

All Canadians must pay their fair share of taxes.

Period.

Canadas Role in the World

Mr. Speaker, Canada has always played an important role on the international stage.

And, going forward, as needs change, so too will our approach.

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In international assistance, for example, we remain committed to helping the worlds poorest and
most vulnerable. And we will continue to modernize our efforts so we can deliver better results,
improve transparency, and foster innovation around the world.

To support our women and men in uniform in increasingly complex and unpredictable times, our
Government will soon release a new defence policy for Canada, following extensive consultation
and analysis.

Mr. Speaker, we know that as a trading nation, our future depends on openness and investment.

And that means never missing an opportunity to remind the world of what makes Canada a great
place to live, play, and do business.

Nowhere is this truer than with our neighbours to the south.

Canada and the United States have the most successful economic relationship in the world,
supporting millions of middle class jobs on both sides of the border.

Were proud of this fact.

And were also proud to have recently concluded the Comprehensive Economic and Trade
Agreementa free trade agreement that will create jobs, reduce red tape, and give Canadian
businesses preferred access to half a billion potential customers across the European Union.

And as we prepare for the global economy of tomorrow, we will put our best foot forward,
always looking to develop strategic partnerships to attract talent and investment.

Partnerships that will help our companies succeed globally, and create good middle class jobs
here at home.

Conclusion

Mr. Speaker, Canada 150 reminds us that we have a lot to be thankful for.

Economically, our talented, skilled, educated, diverse, and innovative workforce gives us
tremendous potential for growth.

Our values, our stories, and our cultures shine for the world to see.

Our official languages are flourishing.

Our natural resources, and natural beauty, are unparalleled, allowing us to share the joys of
building a campfire with our kids, hiking with a college friend, or swimming in cool,
clean waters.

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In fact, this year were putting our national parks, historic sites, and marine conservation areas on
full display as we invite Canadians and families from around the world to enjoy them, free
of charge.

Most importantly, Mr. Speaker, weve begun to see signs of confidence and optimism return to
our middle class.

Consumer spending is up since we introduced the Canada Child Benefit.

In the last seven months, the Canadian economy has created a quarter million new jobsthe
largest seven months of job gains Canada has seen in a decade.

Unemployment has fallen in the time since we took office.

These are good, early signs of a plan that is working.

Thats why we will continue to invest in our people, our communities, and our economy while
maximizing every dollar and ensuring it is well spent.

Mr. Speaker, our approach to investing deliberately will enable us to maintain our enviable
position as the G7 nation with the best balance sheet.

Most importantly, at the same time, we will have built a better future for our kids.

But Mr. Speaker, we know there is more work to do on behalf of middle class Canadians.

Middle class Canadians like Mian, Dave, and Nebis.

Working together, we will embrace the change in front of us, and deliver prosperity for all.

Thank you, Mr. Speaker.

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