John Manley, Deputy Prime Minister and the new Minister of Finance predicted a $6 billion surplus for the current year in his speech to the House of Commons Standing Committee on Finance.

Manley said that final numbers will not be available until September, but he said, “we can reasonably expect” a surplus of around $6 billion for 2001-02. “This surplus will be used to further pay down the debt,” he said. He also suggested that stronger economic growth will mean that the financial position for 2002-03 will be better than was forecast last December. However, he said it is premature to comment on fiscal 2002-03.

Manley also hinted that he is paying attention to the financial industry’s woes, noting, “By focusing on increasing productivity, providing access to financing and improving our capital markets, we will help ensure that Canada creates the kind of business environment that encourages Canadian companies, the jobs they create and their high-value activities to remain in Canada.”

He also tried to draft his character as finance minister. “I am before you today as a new Finance Minister. Some will wonder what to expect from me. In part, this is simple: a continuing and determined commitment to balanced budgets and a declining debt burden, while Canadians continue to see their tax load decline. But more than this, I want to see us pursue policies that make of Canada a “Northern Tiger” — a country that is a magnet for investment, for skilled knowledge workers, and for cutting-edge research, science and innovation.”