care, our children's future, and education and knowledge.
$3.30 per $100, as had been planned by the previous Progressive Conservative government.
This rate has since been reduced from $3.07 in 1994 to $2.95 in 1996, and to $2.90 in 1997; it will be further reduced to $2.80 in 1998. We have also reduced the maximum earnings base on which the premium rates are applied. We will keep reducing such premiums to ease the tax burden on workers and businesses in a way that is fiscally responsible.
In November 1996, we announced aNew Hires Program to help 900,000 eligible small businesses to hire new workers without having to pay EI premiums for them. Byreducing payroll taxes, we have made iteasier for Cana-dian businesses to hire more employees and to create jobs.
This government's goal is lower taxes, and our record speaks of our commitment to that goal. We have n~t increased personal tax rates.
Targeted tax cuts have been implemented already, and more selective tax cuts will be made. The time for a broad-based tax reduction will come, when we can afford it as a society and when Canadians can be assured that such cuts can be permanent.
Reaping the Rewards of Sound Fiscal Management
Canada isnow a country on the rise. Today our economy is growing and strengthening, and the trend of economic indicators ispositive for the first time in a long while. The strong economic growth in the second half of 1996 isexpected to carry into 1997 and 1998. Inflation is under
control, and business confidence is at its highest level in years.
Sacrifices have been made to get us to this stage, but our approach to managing the econ-omy isclearly beginning to payoff. Lower inter-est rates and a stronger economy are generating more consumer and business confidence. Private analysts expect that the stronger economy fore-cast for 1997 could generate up to 300,000 jobs by the end of 1997.
We have made significant progress in managing Canada's finances, but our journey is not over. Our finances are finally being brought under control, and the era of cuts is ending.
A government's values are reflected in how it chooses to use its resources, particularly when those resources are scarce. The Liberal govern-ment's values are clear. We are guided by balanced policies and a belief in the unlimited opportunities that await Canadians.
Continuing to create the climate for jobs and economic growth, as we have for the last four years, anew Liberal government will continue to bring down the deficit and the debt-to-GDP ratio while directing substantial new resources to investments in jobs, health care, our children's future, and education and knowledge.
We will continue to make prudent investments that contribute to the country's well-being with-out jeopardizing the progress we have all made in putting our country's finances in order. This is a course that we are committed to following as we lead Canada towards renewed and lasting economic health.
A new Liberal government will create a Trade Promotion Agency that builds on the Team Canada approach to promoting international business.
R
e.storing responsible management to the country's finances is a prerequisite to creating jobs and growth. But far more must be done to create the conditions for more jobs in the 21st century.In addition to restoring confidence in the management of our public finances and our direct job creation activities, we have concen-trated on three priorities in the first mandate:
building an economy that creates and sustains jobs, expanding trade, and increasing the knowl-edge and innovation base of our economy. We will build on these priorities in a second mandate.
Building a working economy for the 21st century requires setting priorities and focusing energy, attention, and resources on them. It is not good enough for us, as a government, to plan only for next week or next month or next year. We have to prepare Canada for the next ten, twenty, and thirty years.
The Liberal government has developed a new ethic of cooperation and partnership among governments and with the private sector. This has become our way of conducting the country's business. It is a better way, and it is one on which we intend to build as we expand opportu-nity for jobs and growth in an innovation-based economy.
Jobs Through Trade
Developing new markets for Canadian products and services around the world means more and better jobs for Ca~adians. Every $1 billion in exports supports some 11,000 jobs in Canada, underscoring the importance of securing and expanding Canada's trading relationships.
The Liberal government has demonstrated its commitment to trade expansion through the highly successful Team Canada missions abroad, led by the Prime Minister and the provincial premiers, which have brought home $22 billion in business deals since 1994. We have also signed free trade agreements with Israel and Chile, reduced tariffs for business and consumers, and increased the ability of the Export Development Corporation to lend to Canadian companies, particularly small and
medium-sized businesses, seeking to enter higher-risk emerging markets. Investment Part-nerships Canada is also attracting more interna-tional investment to Canada.
These efforts are bringing home good results. Canada's merchandise trade surplus was a record $34 billion for 1996, and the volume of Canada's exports has soared by 50 percent since 1992.
Canada needs a strong, flexible approach to trade that takes us beyond North America to areas such as Europe, Latin America, and the Asia-Pacific region. We are dedicated to expand-ing our markets because trade with the world means jobs for Canadians at home - good jobs, jobs that last.
The Liberal government has been a strong champion of liberalized trade. Canada has assumed a leadership role in the World Trade Organization; we have strongly opposed the U.S.
Helms-Burton Act; and we are actively support-ing free trade in the Americas. In 1997, Canada's Year of Asia Pacific, Canada assumes the chair for the fifth Asia-Pacific Economic Cooperation (APEC) leaders' meeting in Vancou-ver, providing the opportunity to build further on the progress already made towards free trade in the'Asia-Pacific region.
In a second mandate, we will continue to build public-private partnerships through the Team Canada model, which has brought together Canadian business men and women, educators, and government leaders to improve Canadian competitiveness abroad and generate more jobs at home. The participation of small and medium-sized businesses in Team Canada missions has been invaluable to smaller firms seeking to enter foreign export markets.
We will explore new forms of trade promo-tion, learning from what has worked so well thus far. A new Liberal government will create a Trade Promotion Agency that builds on the Team Canada approach to promoting interna-tional business. The agency will integrate trade promotion functions across various government departments to provide better service to Cana-dian businesses.