We know that in the United States the personal savings rate is almost half of ours. They have a higher rate of absolute spending and a lower personal savings pool on which to draw on a per capita basis. That has been pushing up their interest rates. The kind of competition that exists in the money markets in the United States has not been experienced here, but it has been affecting our interest rates because the United States is such a huge magnet on our interest rates.
I see you signalling me that it is time to finish, Mr. Speaker. I would like to take a look at some areas where I believe we should be putting some of our efforts in the future. I would emphasize a continued development of Canadian trade. I agreed with the Hon. Member for St. John's West when I heard him say that earlier. I believe that every Canadian recognizes that trade has been a vital part of our economic recovery. We have seen some particularly strong performances in that area over the last couple of years. It should continue as a high government priority.
I would personally continue to emphasize tourism. We run a deficit in this area that is too big. Being in a northern country, of course our people want to go south to Florida, the Caribbean and Mexico in the winter. But we must find ways to counteract the attractiveness of those areas in order to keep our people here in Canada and to draw Americans into this country so that we can turn a tourism deficit into a tourism surplus.
I would continue to emphasize the high technology and joint production that we have seen in such areas as defence spending programs. I believe that we not only need to share the technology and to offset the costs, we also have a far too great domestic deficit in that area. We are importing too much for our own good. We need to start sharing the technology, developing our own industry, and then exporting our own goods.
Finally, I agree that we need to lower the deficit. Later this year we will be introducing some new taxes at the federal sales tax level, but I do not believe that we need to lower the deficit on the backs of the poor. I do not believe that there is a magic formula that we can use to slash the deficit. It must be lowered carefully. Government spending must be reviewed, which is our obligation. At the same time such a review must be targeted and conducted with an eye on the impact of the cut on the lives of ordinary citizens. Those who stand up here and
May 15, 1984
say that they would cut the deficit by some blanket amount are wrong and insensitive.
Those are some of the positive steps we have taken for our economy. I look forward to hearing some of the ideas of some of the hecklers on the other side.
Topic: GOVERNMENT ORDERS
Subtopic: BUSINESS OF SUPPLY