Looking to the long term. These are the principles that underlie our plan. Providing Sound Financial Management Let me now demonstrate how these principles will be applied to sound economic management for the country. To that end, upon coming into office, the government and the Bank of Canada agreed to hold inflation inside a range of 1 per cent to 3 per cent to the end of 1998. That policy has worked.
Inflation is under firm control.
It will remain so in the future. That is why we are announcing today that we will extend the current agreement for a further three years. Canada has now established a reputation as a low inflation country. It is a reputation and a reality we will protect. Next, let me turn to the issue of the debt.