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This budget builds on the government's long-term plan for a stronger economy and a more secure society, but it also responds to the short-term concerns of Canadians.

In short, it is about helping Canadians through the current global economic slowdown - made worse by last September's events - and positioning them to take full advantage of the recovery expected next year.

This budget acts to build personal and economic security by keeping Canadians safe, and terrorists out.

It recognizes the vital importance of our borders, and acts to keep them open and more efficient.

It delivers new affordable measures under the government’s long-term plan and provides a timely boost to the economy.

And, it gives Canadians a full accounting for the nation’s finances and shows the government intends to balance the budget - this year and in each of the next two years.

The government has put together a comprehensive $7.7 billion package, for security and border measures.

First, let’s look at the security measures it introduces -- to protect Canadians where they live and when they travel.

These measures total $6.5 billion, which includes initiatives for air travel safety, intelligence and policing, emergency preparedness, and improvements to Canada’s immigration and refugee system.

The budget increases resources to improve air travel and safety. This includes armed undercover police on Canadian aircraft, as well as improved passenger and baggage screening.

Furthermore, it will provide for enhanced federal policing at airports, tighter security in handling facilities and on airport tarmacs, and the replacement of cockpit doors on aircraft.

It substantially increases funding for intelligence and policing, including for agencies such as the RCMP and CSIS.

It provides new resources to enhance emergency preparedness and support Canadian military participation in the international war on terrorism.

It expands the anti-terrorism unit in the Canadian Forces, and improves laboratories and equipment so that we can better respond to biochemical and other unconventional threats.

It allocates major new funding to make Canada’s screening of visitors, immigrants, and refugees quicker and more effective.

The goal is to keep Canada open to those who legitimately need a safe haven, but closed to those who would do harm. For example, it will provide for better security checks, as well as more Immigration Control officers posted abroad. Also, this budget will mean more staff for the Immigration and Refugee Board, to shorten the waiting period for hearings, clear the backlog that currently exists, and send back those who don’t deserve to stay.

Canada is a trading nation. Our economic security depends on an orderly and free flow of goods and services between our country and major markets, particularly the U.S.. The budget recognizes the importance of keeping our borders open to legitimate trade and travellers, but closed to terror.

To that end, it invests more than $1 billion for border initiatives.

For example, the government will speed up implementation of pre-screening and pre-clearance programs that will allow frequent travellers and commercial shipments to move more quickly and easily from one country to another.

It will also introduce state-of-the-art technology and increase infrastructure support necessary to create the most modern border in the world, as well as establishing RCMP-led Border Enforcement Teams to enhance security.

A second major component of Budget 2001 is to meet the immediate needs of Canadians in a way that provides a timely boost to the economy, while pursuing the government’s long-term plan to make our economy more competitive, productive and innovative.

Last year the government introduced several measures that are providing welcome stimulus in the midst of the current global economic slowdown.

For example the government’s $100 billion tax cut plan is fully protected, and will proceed intact and on schedule.

It is putting an additional $17 billion in the pockets of Canadians this year and will put another $20 billion in their pockets next year.

The government will also proceed with its $23.4 billion commitment to support health care and early childhood development agreements with the provinces and territories, as announced in September 2000.

That means an additional $2.8 billion in transfers this year, rising to $3.6 billion next year, and more than $4 billion the year after that - money that can be used to reduce waiting times and improve delivery of health services to Canadians.

Budget 2001 introduces several new measures under the government’s long-term plan that will help move the country forward on both the economic and the social fronts.

A consistent priority for Canadians is health care.

The budget will dedicate more funds for the Canadian Institute for Health Information and the thirteen Canadian Institutes of Health Research, which are doing ground-breaking work in areas such as aging, cancer, diabetes, arthritis, and women’s health. Their research today will mean a healthier Canada tomorrow.

Budget 2001 takes further steps in giving Canadians greater access to skills and knowledge in variety of practical ways.

It increases support to industry-led Sector Councils that help identify skills required in the workforce, develop training programs and point workers to new job opportunities.

This budget enhances Canada Study Grants for students with disabilities.

It expands Youth Entrepreneurship programs. Through partnerships with the private sector, the government will build on existing initiatives which will enable talented young people to gain valuable insights into the world of science, technology, and business.

And, it provides new tax incentives to encourage Canadians to pursue educational opportunities. These include a new deduction for the extraordinary cost of tools for apprentice vehicle mechanics, and extending the education tax credit to include people receiving E.I. benefits.

Recognizing that research and innovation are keys to success in today’s global economy, this budget provides universities $200 million to cover the indirect costs of research.

The budget puts additional resources in support of research in the natural sciences, and engineering as well as the social sciences and humanities through their respective granting councils.

And, it increases funding for the National Research Council’s network of regional technology centres.

These measures build on significant investments the government has made over the last several years, including the creation of the Canada Foundation for Innovation and the Canada Research Chairs.

The goal has been to make Canada a leader in the new frontiers of knowledge and to ensure that the fruits of research become a source of jobs and growth for Canadians, not just a source of ideas for others.

The budget also builds on initiatives to connect Canadians to information and knowledge.

It invests $110 million to build CA*Net 4 to keep Canada at the forefront of electronic networks supporting research in universities and colleges, including smaller ones.

The government will extend both the Schoolnet and Community Access programs that give students across the country access to online learning.

This budget also extends funding for the Government On-Line strategy to improve the delivery of information and services on-line to Canadians.

Recognizing the need for additional support for large infrastructure projects, the government will commit $2 billion to the new Strategic Infrastructure Foundation. The Foundation will encourage partnerships between federal, provincial, and municipal governments, as well as the private sector - providing both stimulus in the short-term and economic and social benefits in the long-term.

This fund will complement the $2 billion Infrastructure Canada Program, announced in Budget 2000, which has approved funding for more than 800 municipal infrastructure projects so far.

These measures, combined with the border infrastructure measures announced in this budget, as well as the $600 million for highways announced in Budget 2000, will provide significant stimulus to the economy in 2002-03, as well as adding lasting value to the country for years to come.

Budget 2001 also increases support for the environment.

It doubles the funding for both the Green Municipal Enabling Fund and the Green Municipal Investment Fund, which are designed to help municipalities address environmental challenges.

The budget also launches a new long-term program to promote the production of a key renewable energy source - wind power.

The budget recognizes the importance of small businesses to the economy.

In order to help them meet immediate cash flow needs in the current economic slowdown, the government will defer their corporate tax instalments for January, February and March 2002 - expected to total about $2 billion - for six months without interest or penalty.

As part of the government’s new border initiatives, the budget will also assist small businesses by making it possible for them to file and pay import declarations over the Internet, and by offering one-on-one, personalized assistance through small business desks.

Businesses will also benefit from the most recent reduction to Employment Insurance Premiums, which will save workers and businesses $400 million in the next year. This makes for a total savings of $6.8 billion in 2002, compared to the 1994 rate.

he budget provides additional support for First Nations communities. It allocates $185 million over the next two years to increase funding to help children on reserves who have special needs at schools, enhance programs that support early childhood development, and intensify efforts to reduce the incidence of fetal alcohol syndrome on reserves.

In Budget 2001, the government recognizes that, while it is important to invest in our prospects at home, we must not forget those who have the greatest needs beyond our borders.

The budget provides $500 million to create the Africa Fund, which will help reduce poverty, and provide primary education on that continent.

It also provides $100 million for humanitarian emergency assistance to the people of Afghanistan, and increases our commitment to international aid by a further $400 million, for a total increase of $1 billion over 3 years.

Not only is the budget addressing needs in all the areas just mentioned, it also ensures that significant stimulus is being provided to the economy.

First, strategic investments announced in this budget or coming on stream this year will amount to $9 billion this year, rising to $11 billion next year.

Second, as mentioned earlier, there is the major impact of the government’s tax cut plan.

Taken together, tax cuts and spending provide total stimulus of almost $26 billion, or 2.4% of GDP this year, and $31 billion, or 2.8% of GDP, next year.

In addition, stimulus is coming from a third source: the Bank of Canada has cut interest rates to their lowest levels in 40 years.

The third major component of Budget 2001 is to give Canadians a full accounting of the nation’s finances.

For 2001-02, the government announces its fifth consecutive balanced budget.

Based on current projections, and even using the average of the four most pessimistic private-sector growth forecasts, it also expects balanced budgets or better in each of the next two years.

As indicated in the budget, the government is sticking to its strategy of sound fiscal management.

It will maintain a Contingency Reserve to guard against deficits. However, given the unforeseen circumstances of a global slowdown and major new security requirements, portions of the reserve will be used this year and in the next two years.

The Reserve will be $1.5 billion for 2001-02, rising to $2.0 billion in 2002-03 and $2.5 billion for 2003-04.

The government has made it clear that it intends to rebuild its normal Contingency Reserve and economic prudence as soon as possible.

The government’s planning approach is paying real dividends today.

For example, over the last four years the government has reduced the debt by nearly $36 billion.

This has freed up about $2.5 billion a year in interest payments - money which can now be used for other priorities.

Furthermore, the burden of federal debt has fallen substantially. Next year, our debt-to-GDP ratio will fall below 50% for the first time in seventeen years.

In the past eight years Canadians have made the tough choices necessary to accomplish great things - including eliminating a crippling deficit, paying down massive amounts of debt, cutting taxes, investing in health care, education, and innovation.

As a result, we face the current economic slowdown in much better shape than the last one - in the early 1990s.

The plan that brought those benefits will see Canadians through the challenges of today, and help them enjoy a better tomorrow.