Excerpt from Federal Budget Speech
by Paul Martin - February 28, 2000

Furthermore, we are announcing today that in order to preserve natural habitats and species, we are cutting – by half – the capital gains tax arising from the donation of ecologically sensitive lands.

Mr. Speaker, in 1998 we, along with the other orders of government, non-governmental organizations and the private sector, launched the process required to develop a national climate change strategy. These consultations are concluding and the strategy should be unveiled by the end of the year.

However, within the context of a budget seeking to prepare our economy for the 21st century, there are a number of things we can and we must do now.

The unequivocal fact is that climate change – indeed, the entire environmental spectrum – will provide challenges, but for an innovative economy it presents many more opportunities.

Indeed, those nations which demonstrate how to truly integrate environmental and economic concerns will forge new tools and develop new technologies that others will have to adopt.

Tremendous rewards await those nations that get there first, for those which do it best.

Given the importance of natural resources to our country and because of the severity of our climate, leadership in this area of the new economy is not a matter of choice for Canada.

Quite simply, we must apply the same innovative thinking, the same spirit of enterprise, the same technological ingenuity, to protecting and enhancing our environment, as we have to becoming world leaders in the fields of telecommunications, transportation and so many others.

Technology is key.

Make no mistake, if we are to successfully tackle climate change, if we are to cut costs and boost productivity, if we are to transform ourselves into the world leader in the field of clean energy, then we have to employ every bit of the skill and knowledge we possess.

Accordingly, this budget takes a number of targeted actions.

First, we are announcing today the creation of the Sustainable Developmenta Technology Fund. This fund will foster innovation by helping companies develop new technologies and bring them to market in areas such as clean burning coal and new fuel cell developments.

Second, we are announcing that we will create the Canadian Foundation for Climate and Atmospheric Sciences – a network of institutes which will link researchers from across the country in order, for instance, to further our understanding of the impact of climate change and air pollution on human health.

Third, this government is beginning to change its procurement policy to move, as much as possible, to more environmentally friendly energy, stimulating market demand for green power.

Fourth, the Federation of Canadian Municipalities and La Coalition pour le renouvellement des infrastructures du Québec have worked on excellent proposals in the area of green infrastructure. These allow us to extend the hand of partnership to those on the front lines of the fight for a cleaner environment.

One of these proposals is a Green Municipal Enabling Fund to help communities assess where their environmental needs are greatest.

A second is a revolving fund, leveraging private sector investment in areas such as waste management and water conservation at the municipal level.

This budget, Mr. Speaker, gives effect to both proposals.

Finally, as we move to more fully integrate economic and environmental policy, we must come to grips with the fact that the current means of measuring progress are inadequate.

Therefore, we are announcing today that the National Round Table on the Environment and the Economy and Environment Canada, in collaboration with Statistics Canada, will be provided funding over the next three years to develop a set of indicators to measure environmental performance in conjunction with economic performance.

In the years ahead, these environmental indicators could well have a greater impact on public policy than any other single measure we might introduce.

Mr. Speaker, when all of these measures are taken together, this budget will invest $700 million in environmental technologies and practices. We are making this investment because protection of the environment is a fundamental value of our country. But let us understand as well, it is also good economic policy. It is a key element of our plan to build a more innovative economy.

Make no mistake, far from being a cost we cannot afford, environmental protection is an opportunity we cannot forego.