Province Législature Session Type de discours Date du discours Locuteur Fonction du locuteur Parti politique Colombie-Britannique 30e 2e Discours du budget 9 février 1973 David Barrett Premier and Minister of Finance New Democratic Party of British Columbia Mr. Speaker, under our Canadian system of government the motion I now move, "That Mr. Speaker do now leave the chair for the House to go into the committee of supply, " in order to consider the Government's expenditure proposals for the ensuing fiscal year, is paramount. It allows for the free and open debate and question of the Government's financial program, both within this chamber and throughout the communities of this province. It is a particular. honour for me to present this first budget of the new Government of the Province of British Columbia. The budget is a vital document for it reflects Government policies and allows citizens an opportunity to judge the success or failure of the Government in carrying through the programs upon which it was elected. This budget heralds a new era for the people of our province, an era where the rights of the individual are supreme. We are committed to make this a just and open era in the governing of this province. Your Government has been in office less than five months, yet the new direction has already been initiated through the special session convened in October last year, when important policies of this Government were enacted. These included the guaranteed $200 a month income for our citizens who are 65 or over, or handicapped, and the increase in the provincial minimum wage equalized for both men and women. The first provincial government guaranteed income checks were mailed in December to about 110,000 persons for an average payment of just over $42. We hope this additional monthly income will help in providing these persons with a basic living income in their golden years. As of December 4 last, a minimum wage of $2 per hour became effective. Further changes reflecting our position on a number of matters of concern will be evident in my budget proposals. This may be an appropriate point to offer further comment upon the general philosophy of the new Government of British Columbia., It might be said that we desire to turn attention around from gauging the province's progress quantitatively to a qualitative measurement. I have said before that the economy should serve the people, not people the economy. This approach calls for a new perspective, both in government and in private sectors. We do not desire more growth for growth's sake, but rather growth on terms suitable to this province. British Columbia is endowed with an abundance of resources, not only for production needs, but also for the enjoyment of people. We are suggesting a reevaluation of the contribution that our natural resources make to provincial development. An abundance of resources does not make it any less important for government or private business to maximize the value received for those resources, particularly resources of the nonrenewable nature. Unless their utilization can bestow social as well as economic benefits upon the province, then it is possible their development may best be left to a later date. One has but to look at the current and forecast rates of world consumption of resources of a type abounding in British Columbia to realize they will be no less valuable in the future and are realistically likely to be much higher. Mr. Speaker, that is a major philosophical point that separates this group from the Opposition over there. We're not ashamed that perhaps we may be the only jurisdiction in this country to say that we wish to protect those resources for the best interests of the people, not just for political expediency through development. Life has to be more meaningful for people. We believe it can be made so for all people in the province through participation along with the provincial government and private industry in business endeavours. We favour partnership arrangements between industry, government, and employees, rather than subsidies or loans to industry. We see a policy promoting British Columbia secondary industry utilizing our varied natural resources as a means of maximizing our economic and social rewards. Certainly, secondary industries afford us an opportunity to create the many jobs required for our rapidly growing labour force - the most rapidly growing labour force in all of Canada. Your Government is presently engaged in negotiations with industry on a major project within this economic and social framework. The Government's fiscal policies are reflective of the province's wealth in natural resources. Our budgets will be prudent, will be tailored to meet changing times, and will be balanced whenever possible and when in the public interest. We believe in maintaining cash reserves whenever possible as a safeguard against short-term developments outside the province's control. Mr. Speaker, I said at my Press conference this morning that we are being cautious. We are being cautious in estimating our revenues due to the nature of our economy. It would be fair to estimate that a growth figure of 13.5 per cent would be adequate for this province. However, we are deliberately estimating the rate at 10 to 11 per cent as a growth figure to be on caution's side because of the nature of our economy. It dictates this approach. If we are able to move into a surplus revenue position - and I expect we will be - that information will be disclosed as soon as it is available. We will not perpetuate the surprise surplus positions that were used politically in the past. It is our belief, Mr. Speaker, that our natural resources have not been returning the people of the province a fair measure of their value in both dollars and jobs. We intend to give this factor immediate attention. Since taking office, the Government has been studying the whole question of provincial government revenues from business and industry generally and resource utilization particularly. More will be said on this matter later, but it is sufficient to say here that what we desire to achieve is a fair and equitable return to all persons and parties involved. This approach to natural resource utilization typifies our approach to government generally. This Government, Mr. Speaker, will not be stampeded into doing things, but we will perform in a business-like manner In context of the national scene, the challenge in the Canadian federation today is for the national government and the member provincial governments to conjointly work toward the common goal of building a greater Canada and provide a more meaningful life for all Canadians. Mr. Speaker, we want all regions of this country to share in the prosperity from the nation's riches. We will not be initiating any frivolous non-court cases against equalization payments. While the Government of Canada and the governments of the provinces have different responsibilities assigned them under the Canadian constitution, the complexities of our society and the world economics make the division, which seemed so appropriate and clear-cut 106 years ago, subject to conflict and misunderstanding today. The representative national government, which at our founding was assigned matters of national and international concern, finds an apparent difficulty in confining itself to these areas alone. For the provincial governments on the other hand, major economic linkages have developed in the last two decades between certain provinces and foreign states. This makes it extremely difficult for provincial governments not to concern themselves about intergovernmental discussions at other levels on matters which from our beginning have been a provincial responsibility. There is a danger in a Confederation in as large and sparsely populated a country as Canada, complicated by a gross imbalance in population leverage -leverage for policies of the national government not truly in the best interests of the regions. Each region has distinct characteristics from other regions. Therefore, although the national government may have the best interests of the country in mind when establishing a national policy, unless the decision is based on a recognition of the individualities of each region, then the aspirations and goals of the people of all regions will not be met nor will a solid federal presence be maintained. Mr. Speaker, let me say that the Government of the Province of British Columbia has great faith in every province of this country in its desire to stay in Confederation, and I want to especially extend a hand to the Province of Quebec. In the years since the end of World War II, the Government of Canada has introduced a number of national programs in areas that are essentially the concern and responsibility of the provincial government, It is necessary for the federal government to set minimum national standards for government services to the people of Canada. However, whether the Government of Canada should become rigid about the means by which these standards may be achieved is subject to question when it is impossible to design a program that is appropriate to meet the needs of each region. I said at the opening of the Conference of Provincial Welfare Ministers in Victoria last fall that Canada will not survive as a nation unless the federal government learns to understand the needs of the provinces. In the area of social services I suggest that, while it was acceptable for the federal government to set minimum national standards, a province should be able to develop the programs appropriate to its needs to achieve the national standards and, therefore, should have more control over total government social assistance funds without endangering national standards. Social service programs in Canada have been developed in response to problems as they occurred, rather than on a planned basis. The programs have forced persons on social assistance to adapt to the system, rather than the system meeting the needs of the individuals. I suggest that the present programs are essentially wasteful and handled in a paternalistic way. We have indicated the direction in which government should move in this regard through our guaranteed monthly income program. There will be more specific proposals on this in the future. My Government desires to bring a new direction for British Columbia inside the Canadian Confederation. We are partners in this country and, while we may have different points of view, we must come to an agreement on the middle ground - that's what politics is all about. This calls for an awareness on the part of the national government of the distinctly different needs of each province, and on the part of the provinces on the unity of purpose necessary to preserve our unique Confederation. We will hold to the spirit of Confederation and use all available means, including proper representation for British Columbia at all federal-provincial conferences, to improve the federal government's understanding of our problems. It is also the policy of this Government to foster an understanding of neighbouring territorial jurisdictions. To this end we have initiated discussions of matters of mutual concern with officials of the Yukon and the States of Washington and Alaska. There will be no more posturing in this province as to the takeover of the Yukon or the Alaska panhandle, Mr. Speaker. It is our proposal to strengthen these relationships. I have commented earlier upon how provincial economies today have become enmeshed with other economies. I am thinking particularly of our oil and natural gas resources. Because these resources are integrated with a system that crosses provincial and national boundaries, they come under national control once outside British Columbia. However, because the resources belong to the people of British Columbia, we believe that the provincial government cannot stand idly by while questions concerning these resources are being decided elsewhere, We will continue to concern ourselves over issues affecting our natural resources. We completely reject, Mr. Speaker, any continental resource policy. I wish to report to the Hon. Members that I have asked the Prime Minister of Canada to consider initiating proceedings under the Canada-British Columbia agreement on the Columbia River to reopen the Columbia River Treaty with the United States. The purpose in doing so is to seek reimbursement for the province for the exceedingly higher costs brought about by an excessive North American inflation experienced over an eight-year construction period of the storage projects, plus the fact that the previous administration didn't take inflation into account. I have sent a letter to the Prime Minister just this week and I will make copies of it available to you. The higher construction costs increased the value of the downstream power benefits which, in our view, justifies discussions with the Americans. The Prime Minister has agreed to consider establishing a federal provincial liaison committee within the terms of the Canada-British Columbia agreement on the Columbia River to consider our case. In regard to Hydro, Mr. Speaker, I would like to say that the usual short report on B.C. Hydro is not in this year's budget. Instead, in keeping with our policy of opening all books, I will file in the House today complete financial information on Hydro as to December 31, 1972. The documents I will file will be the annual report for the year ending March 31, 1972, the nine months financial report to December 31, 1972, and comparative financial information to March 31, 1972. I think, Mr. Speaker, that the people of British Columbia and the Members of this House are entitled all the information. It is encouraging, Mr. Speaker, to note the undertaking of the Prime Minister of Canada to meet with the four western provinces on matters affecting our economies. For too long, governments of most of the major industrial countries have been obsessed with economic development, in our opinion falsely equating a high rate of economic growth with rapid social improvement. The most dramatic example, Mr. Speaker, of this particular problem is the country of Japan and we must reflect on the problems of that country if we are to learn any lessons here in British Columbia. Now many of the uncounted costs are being realized as cities disintegrate and the environment erodes - a result of inadequate social and ecological safeguards. To preserve an optimum quality of life in British Columbia for ourselves and for the future generations, we must protect and improve our natural heritage wherever possible. There is little point, in my view, in striving to achieve one of the highest incomes per capita in North America if our physical surroundings are rendered intolerable in the process. It is the avowed intention of this Government to strike hard at pollution problems, wherever they occur. Unchecked development of our physical resources can only end in waste and disorder. Rational development based on hard scientific facts and development in harmony with what already exists, Mr. Speaker, is our goal. The British Columbia government already provides various, incentives to industry and local governments to encourage pollution control programs. There is also specific legislation designed to keep environmental deterioration to a minimum. Polluters, whether they be industries, businesses or individuals, must expect to pay the social costs of pollution they cause. A study has commenced to determine the feasibility of levying appropriate financial charges against any group that initiates waste problems. Moreover, programs such as recycling of waste products are being investigated and later on in the budget a specific budget proposal will be made to encourage this particular type of activity. It is quite apparent from many successful waste-conversion products that useless materials can often be turned into profitable by-products. One of the most obvious, of course, is methane gas. Those of the Members who are left who served with me on the agriculture committee know the product that produces most methane gas. The Pollution Control Board and other government agencies have been directed to apply the most advanced scientific programs and techniques to preserve our natural heritage. An inquiry by the Pollution Control Board presently underway on industrial and municipal pollution problems will provide valuable information in establishing a sound provincial-wide pollution control code. Mr. Speaker, I would hope provincial government action to promote pollution abatement at business and local government levels will induce each member of our society to participate in perpetuating the greatest resource we have, nature itself. Turning now to the province's finances and the economy, it is the intention of this administration to disclose the financial condition of the Government and its Crown corporations in a prompt and more complete manner to allow interested citizens of British Columbia to scrutinize provincial government operations. The abridged public accounts of British Columbia for the last fiscal year, and summaries in the "Financial and Economic Review" have already been released to the public by the previous administration I submitted the detailed public accounts for the fiscal year ending March 31, 1972, to the Legislature on the opening day of this session and will now review the highlights of this report. The total provincial assets as of March 31, 1972 rose 12 per cent or by $291,739,388 over the previous fiscal year to a total of $2,726,289,233. This is the wealth produced by British Columbians, not wealth produced by Social Credit, Liberal, Conservative or NDP parties. It is the wealth produced by the people of this province. Of the total assets, the fixed assets portion, which includes provincial highways, bridges, ferries and buildings, went from $1,326,000,000 to $1,424,000,000, an increase of $98 million. The excess of assets over liabilities climbed $120 million during the year to a total of $1,777,000,000 - to the nearest figure. The provincial debt, Mr. Speaker, not brought in by the NDP, not all blamed on Social Credit, not all a Liberal nightmare, not all the Conservative estimations - just the provincial debt that we have always had all these years - as of March 31, 1972 was $47,752,571, fully covered by sinking fund investments. At the same date the contingent liability debt inherited from the previous administration guaranteed as to payment of principal and interest by the province was $2,998,184,383, offsetting sinking fund investments $257,618,439, leaving a net contingent liability debt of $2,740,565,944. That we all owe, Mr. Speaker, we all owe and we'll all pay. Yes, the assets are there, but the assets and the debt belong to the people of British Columbia. And you don't have assets belonging to one political party and the debts belonging to the people. (Laughter). An examination of provincial government revenues and expenditures for the period reveals total revenues, not including the $25,601,080 accelerated payment from the federal government on the phase-out of the Technical and Vocational Capital Assistance Program, were $1,437,115,000 - a 14.2 per cent gain over the prior fiscal year, Expenditures, including all capital outlays totaled $1,419,223,000 - up 14.3 per cent. We'd like to see the same performance next year. But we are cautious in our estimates and, as I said earlier, we will make the information available as soon as it is available to us. While the excess of revenue over revenue for the fiscal year was $17,892,000 and accelerated receipts previously mentioned totaled $25 million, the appropriation of $55 million for perpetual and special fund programs on March 31, 1972 reduced the budgetary cash reserve of $110 million to $98 million at March 31, 1972. The British Columbia economy performed strongly in 1972 with all sectors contributing to the advance, particularly consumer spending, housing construction, manufacturing, agriculture, mining and the fishing sectors. Favourable market conditions in Canada and the United States, and a more promising economic situation in Japan and Western Europe, improved the export position. Mr. Speaker, may I say that at the invitation of a number of western European industrialists and politicians, I expect in May to make a very brief trip to Europe to broaden our trade base - not only into the east but, I think, more into the west - especially Western Europe and especially now with Great Britain going into the Common Market, I intend to aggressively pursue those markets on behalf of the people of British Columbia. The gross provincial product increased an estimated $1,220,000,000 or 11.5 per cent over 1971 to $11,870,000,000. Mineral production increased 20 per cent to a record high $631 million, with copper, natural gas and coal contributing significantly to the increase. An extremely favourable lumber market in Canada and the United States and greatly improved wood product prices augmented forest product shipment values. The value of shipments of manufactured products reached a record of $4,470,000,000 - a gain of 11.4 per cent over 1971. And almost 100 per cent of those shipments went out in foreign ships manned by foreign crews. I think that's a mistake, Mr. Speaker. The foods, wood products, beverages, transportation equipment, paper and allied products were dominant. The travel industry registered a further gain in 1972. The continued movement of new residents to the province increased British Columbia population by 2.9 per cent on the latest federal estimate of 2,269,000 persons at October 1, 1972 - substantially higher than the 1.1 per cent increase in the total Canadian population from the same date a year ago. The 3.6, per cent increase in the number of employed persons and an 8.9 per cent rise in the average income, led to a record of $4,140,000,000 in retail sales - up 14 per cent in the year. Sales of automobiles, home appliances and furniture made especially strong gains. Capital investment in the province -continued near the 1971 record level and was $3,732,000,000. Gains were made in all sectors except manufacturing and primary industries, which were moderately lower. Housing capital expenditure was 7 per cent higher than in 1971. Export shipments increased 11 per cent to a record $3,075,000,000 as a result of greatly improved sales of wood products, metals and ores, concentrates, crude petroleum, coal, and natural gas -particularly to the United States and Japanese. markets. While these figures sound impressive, Mr.' Speaker, I'd like to point out to all Members of the House, that these figures continue to be a reflection of a basic position of this province - of being hewers of wood and drawers of water. While it is good for now - 25, 30 or 50 years from now it's not good enough. This Government will be directing basic policies to turn away into a more meaningful export of our products. The problem of unemployment continues to nag the whole country as well as British Columbia. This province, with the highest rate of addition to the labour force in Canada, has a challenge for the private sector and all levels of government to provide work opportunities for all who seek employment. Certainly the provincial government will do all in its power to alleviate the present situation. The federal government, however, must assist us in this regard. We look forward with hope to the forthcoming federal conference called with western provinces to deal with our special needs. We will never attend these conferences with the threat to the federal government that, because of their tenuous balance of power, we would somehow pull the strings of our political colleagues in Ottawa unless they did our bidding. We are opposed to that kind of threat, Mr. Speaker, and I want to make that very clear. We will place our, position openly and in a frank manner to the federal government of the day. That doesn't mean we're not interested in our federal fortunes, but those must be confined to the election campaigns themselves. The optimistic economic outlooks for our major trading nations promise further growth in all sectors of the British Columbia economy in 1973. The international monetary system, the movement of the Canadian dollar, the uncertain effects of Britain's entry into the European Economic Community and the continued threat of inflation are factors which could affect our performance - and will be watched carefully. In reviewing the financial affairs of the province in the current year, the Audit Act requires the Comptroller General to prepare for the House a statement of the province's revenues and expenditures for the first nine months of the current fiscal year. This is done on a accrual basis. I will table this statement at the close of my address. The present provincial economic buoyancy is mirrored by the healthy growth in revenue accruals for the nine-month period April I to December 3 1, as they totaled $1,185,205,000 - up 13.5 per cent. Expenditure accruals, including all current and capital outlays, reached, $1,134,000,000 - up 12.5 per cent. The excess of revenue over expenditure for this period, on an accrual basis, was $51 million. The growth in revenue in the first three quarters of the fiscal year 1972-73 over the same period in 1971-72 was $141 million. Major revenue gains were experienced in the following categories: Incomes taxes, $38 million; timber sales, $27 million; social service tax, $18 million; Canada's share of joint service programs, $16 million - the federal government does give some money to British Columbia, Mr. Speaker. That has not been acknowledged in the past and we acknowledge it today. Liquor profits were up $12 million. The $125 million increase in disbursements to escalate the provision of services to people were located mainly in the following sectors: Highways, $43 million - an election year; hospital and medical care, $29 million; education, $29 million. Because of the low forest fire hazard experienced last summer, fire suppression costs in the forest service are lower by $8,418,000. Mr. Speaker, I will table today separate reports on the operation of B.C. Hydro and Power Authority and British Columbia Railway. The province's Crown corporations provide the means for public ownership of those business endeavours where, because of either their unique position in the economy or the need to provide adequate level of public service, it is in the best public interest to have such ownership vested with the people. The British Columbia Hydro and Power Authority, which supplies electricity to areas of the province with over 90 per cent of the population, and the British Columbia Railway Company, which operates a vital transportation service to central and northern British Columbia, typify appropriate provincial Crown corporations. This Government proposes making these operations more relevant and more meaningful to the needs of the people of the province. Time will tell. The British Columbia School Districts Capital Financing Authority and the British Columbia Regional Hospital Districts Financing Authority are also provincial Crown corporations. The capital investment needs of the provincial Crown corporations during 1972 were provided by the Minister of Finance as their fiscal agent at market rates from internal investment funds available to the province. These comprised receipts from Canada Pension Fund aggregating $138 million with the provincial trust funds totaling $124 million. In the short time this Government has been in office, Mr. Speaker, it has found areas of neglect concerning various segments of our population. I've previously mentioned that the Government moved very quickly in one of these areas, that of aid to our senior citizens. The funds to carry out this program, together with extra funds for other urgent people-oriented programs, will be found in this budget. In addition, extra funds are provided to create jobs and strengthen the administration of our valuable resources throughout this province. Mr. Speaker, this expenditure budget, in an effort to catch up on some of the shortfalls of the past, will be by far the largest budget in the province's history, with the largest single year increase of any previous administration, I propose to add $266,946,000 alone to the current year's budget and, in addition, to take $85 million from cash surpluses mainly to stimulate employment and the economy of British Columbia. And, Mr. Speaker, I want to assure this House these massive cash infusions are being made without any danger to the financial structure of the province. They will come from current or surplus cash. They will not deplete the province's surplus cash position as of March, 1972 to any extent and will not involve any provincial borrowing. I wish to emphasize that next year's expenditure budget will be fully balanced from current revenues. While the proposed addition to budget expenditures is the largest single year increase ever for the province, it is made so because of past deficiencies and the need to restore the level of provincial government services. The increased expenditure is meant, in part, to bring social and economic stability - as a major portion is for the Government's guaranteed income program. The total British Columbia 1973-74 expenditure estimate is $1,718,909,000 - $266,946,000 or well over a quarter of a billion dollars more than the current year, Mr. Speaker. The largest single provincial expenditure commitment is again in the Department of Education, where a one-year increase of $45 million causes a total of $486 million for this one function of Government. Education, Mr. Speaker, is costly. But this Government is committed to provide our young people, our middle-aged people and our elderly people with the skills and the tools that they desire and need to face the challenges of a modern world. And we're not ashamed to spend the money. Of the increase, $20 million is allocated for grants to school districts. Somebody mentioned salaries for teachers. Salaries for teachers reflect the quality of the teachers. If we are going to get the best for our children, we must pay the best, I don't apologize for that one single bit. In addition to this, a further $12 million is provided in a separate vote as one year catch-up on the provincial government's sharing of school district budgets. Also, it is proposed to increase the basic homeowner grant from $185 to $200 and the grant to homeowners aged 65 and over from $235 to $250. Mr. Speaker, this once and for all must put an end to the false argument the previous administration had that no other Opposition party would carry on this program. I hope we end that now, These grants will require an estimated $89 million next year, or $8,330,000 more than in the current year. These increases in provincial government appropriation for public schools education, totaling more than $40 million in a single year, will assist the middle-income homeowner who works hard to help himself and his family, but has difficulty in maintaining a home with the present level of local government property tax. A method of removal of the school tax from the homeowner is currently under review. Operating grants to universities are increased by $6.5 million and to community colleges and technical and vocational schools, $7 million. It is an anachronism to us, Mr. Speaker, that at a time of high unemployment many jobs go begging because there aren't skilled people to fill those jobs. We intend to fill that vacuum with these funds. We all know the history of being short in terms of the past vocational training in this province. Well I'm certainly glad it's not grapefruit juice. I'm sure it's a B.C. product. new item of $750,000 is provided for educational research and $500,000 more must be provided by the province for teachers' unemployment insurance. The foremost one-year increase takes place in the Department of Rehabilitation and Social Improvement, where the annual increase is $90 million. I've already referred to the fact that these funds, in part, will provide for the senior citizens' guaranteed monthly income. These funds are largely recovered by the economy, as the spending potential of our senior citizens has been made more realistic. The letters that we have received from people throughout this whole province who are benefiting under this program are heartwarming. Every Member of the House should take credit for passing that program last October. The Department of the Attorney General was increased by $8 million for the administration of justice. The Department of Finance - a new item of $3.5 million is provided for the elderly citizens' renters grant, as it is the Government's intention to carry on this program. Also, this Government promised its employees bargaining rights. This promise will be kept as soon as possible. Implementation and discussion will require a measure of time. In the meantime, $8.5 million for salary adjustments has been provided in this department. The Department of Health Services and Hospital Insurance estimates of expenditure increased by $53 million. Hon. Members will note the Overall Medical Services Plan administration has- been transferred to this department from the Provincial Secretary and increased $5 million to a total, of $90 million. The public health expenditures are increased by $8,967,000, inclusive of the over-all medical services plan. The $40,165,000 more allocated to the hospital insurance service increases the hospital insurance cost to the province to a total of $272 million. Mental health expenditures are increased by $4,782,000 to provide expanded care throughout the province. A greater program of home services to the chronically ill will be initiated this year. In order to maintain a high level of employment and building and construction work around the province, the highways and public works departments are increased by $33,543,000 and $4,78 1,000 respectively. To enable the forest service to administer our valuable forest services, $5,537,000 more is provided - the blacktop where it is needed, not on political terms. The Department of Recreation and Conservation receives an additional $3.1 million. There are comparative estimates of expenditures by departments in your printed budget speech. In the Department of Municipal Affairs it is proposed to increase the per capita grant to municipalities by $2 per capita, at the estimated cost of $4 million, as an aid to municipalities to keep local property taxes down. There will be no restrictions on the municipalities. They will be free, as democratic institutions on their own, to decide properly and rightly how they wish to spend those funds. It is proposed to transfer responsibility for British Columbia House and the Agent-General's office in London, England from the Department of Industrial Development, Trade and, Commerce to the Department of the Provincial Secretary. The Hon. Members will note that the Water Resources Service and the Department of Mines and Petroleum Resources indicate decreased appropriations. The Water Resources Service reduction results from the removal of an appropriation for the Libby Reservoir preparation which in the current year amounts to $4,887,000. In the Mines Department, with the near completion of the Stewart-Cassiar Road, that vote has been reduced by $2,550,000. The financial structure of the Province of British Columbia contains $85 million in perpetual funds. These funds are for specific purposes and invested in long-term securities of the British Columbia Regional Hospital Districts Financing Authority and the British Columbia School Districts Capital Financing Authority. Annual interest earnings of these funds may be used in perpetuity for the special purpose of each fund. In addition, numerous special funds have been created from which the capital of each fund may be used for the specific purpose of the fund. As of December 31, 1972, the total capital available in these funds was $136 million. Mr. Speaker, this Government has not had time since taking office in September to assess properly the desirability of maintaining all of these funds in their present forms. It has, however, taken steps to ensure appropriate administration and control of the funds through the Provincial Treasury Board. We recognize the very useful purposes involved in some of the funds and, therefore, wish to augment some of them. Also, as long as the fund system is an integral part of our accounting procedures, we will wish to create new ones. I am therefore recommending to the House appropriations of $85 million to funds as follows: Accelerated Park Development: The main purpose of this fund is to create jobs, and I am recommending $5 million be added from current or surplus revenues to continue this program. Accelerated Reforestation Fund: Again, this is a job-creating program, and I am recommending $5 million to be added from current or surplus revenues. Provincial Land Acquisition Fund: The Government desires to acquire land for housing projects for the people of this province, Mr. Speaker, while it is still available. This land will form a bank for future housing sites to help ensure our citizens have an opportunity, for adequate housing, and I am recommending $10 million be placed in this fund from current or surplus revenues. Community Recreational Facilities Fund: The province desires to assist local communities to construct recreational facilities in their communities. I am therefore recommending $ 10 million be placed in a fund from current or surplus revenues to be used as the province's share of jointly financed community construction projects. The province will share one third of the cost of the first $1 million in any project. Mr. Speaker, I said when I originally announced this program that these grants would be open to religious and ethnic groups as well. The only condition being that the services and the facilities of such institutions must be open to every single member of the community. Canada, has never bought the melting-pot concept for its population. One of the strengths of the Canadian nation is that there is an identity of religious and ethnic groups in this country. Ethnic groups and religious groups do bring a certain stability of their own in a rapidly growing country and those who argue the melting-pot concept as the only way to develop North America must look at the tragic example of the breakdown of family life in American cities, because of the loss of cultural and religious values. I have no hesitation, as a socialist government, in saying that we will grant money to religious and ethnic organizations to build community facilities as long as they are open to all people in the community. Now, Mr. Speaker, the Provincial Research and Economic Studies Fund: It is apparent to this Government that the province needs an independent and ready source of research on specified projects as required. This would be supplied from the private or educational sector. I am therefore recommending the setting-up of a perpetual fund of $5 million from current or surplus revenues. The annual interest earnings are to be used for research as required by the Province. We will not hesitate, Mr. Speaker, to seek out advice, assistance and counsel from any location anywhere in the world. We will not define a person's political philosophy or his national origin as a limiting factor to giving good advice. We are prepared to learn from anybody and this instrument will be the avenue under the University of Victoria to get that advice and help as we need it for the people of British Columbia. Provincial Home Acquisition Fund: While the Government may not agree with all the details of the Home Acquisition Program and has it under extensive review, we certainly agree with the principle of aiding our citizens to obtain funds by providing them with financial assistance. We therefore intend to maintain the Provincial Home Acquisition Fund and I am recommending an additional $50 million be placed in the fund from current or surplus revenues This $50 million must not be locked in isolation but must be tied in to the previously announced $10 million for land acquisition. If you read our policy during the election campaign you will see that we are not tied to one method of getting people into their own homes, My friend the Minister without Portfolio (Hon. Mr. Calder) will be bringing in his report and I am sure that will probably be one of the recommendations. I am saying that this must not be looked upon as an isolated thing. We are looking for an integrated program to get people into their own homes in this province and that is a major priority with this Government. The promising 1973 economic outlook for the province offers encouragement for resulting buoyant revenues to entirely support the greatly enlarged provincial budget for the fiscal year 1973/74 without the need to borrow or resort to the use of surplus funds. The Government is studying the entire revenue structure of the province, with particular attention to the natural resource sector. We wish to secure for the people of the province an appropriate return for the use of their resources. In our review of provincial revenues, several tax concessions to industry are noted under existing legislation, which grant certain businesses advantages not enjoyed by others. Under the provincial sales tax, for example, manufacturing labour is not taxed, while it is taxed in all other provinces levying a sales tax. Also under this taxing legislation equipment used for exploration purposes in the oil and mining industries receives a 50 per cent refund of the tax paid. Logging and ore trucks, and motor vehicles hauling drilling equipment enjoy the advantage of a greatly reduced gasoline tax rate for off-highway use of vehicles. It is also noted that there are very generous allowances under the Mining Tax Act and the Logging Tax Act for processing costs. It is not this Government's intention to cancel these industrial tax incentives at this time. However, some minor adjustments in tax procedures are recommended for the consideration of this House. We believe our primary agriculture and fishing industries, developed by the small farmer and the small fisherman, are in need of incentives also. Therefore it is proposed to exempt completely from gasoline tax, motor fuels used off-highway by family farmers and fishermen and fuel used in the family farm truck on the highway. To encourage, Mr. Speaker, a reduction in pollution caused by motor-vehicles, it is recommended to decrease the tax rate applicable to liquefied petroleum gas, a nearly pollutant-free motor fuel, from 17 cents a gallon to 10 cents a gallon, Mr. Speaker. A different approach to the taxation of natural gas used in the internal-combustion engine is also proposed. An increase will be made in rural property tax mill rate which in our opinion has remained much too low in relation to the municipal general property tax levy. An exemption will be proposed under the Gift Tax Act for transfers to joint tenancy of family homes between spouses. That wasn't recommended by my wife, by the way. Mr. Speaker, I am recommending that the corporation income tax be raised from 10 per cent to 12 per cent of taxable corporation profits, effective January 1, 1973. A tax on capital utilized by companies at a rate of one-tenth of 1 per cent, similar to that applied in the Provinces of Ontario and Quebec, will also be proposed. These two measures will increase the provincial revenues by about $25 million. Mr. Speaker, it is clearly evident that the province is not receiving adequate revenues for petroleum and natural gas resources. The Government proposes to increase the petroleum royalty, which will yield additional revenue of about $9 million a year. The federal government's involvement over our natural gas marketed outside British Columbia complicates the problem of establishing an adequate return from this resource. However, this matter is currently under extensive study. The estimate of provincial revenue for the next fiscal year is $1,722,000,000, which is $268,779,000 more than the estimate for the current fiscal year. It is a cautious estimate. Because we wish to be cautious and to balance the budget. But I repeat again that if surpluses become evident, they will be made known as quickly as possible to the public. We do not Wish to perpetuate the old game. This revenue will completely provide for our expenditure programs, including all capital expenditures of the provincial government. This revenue will be provided without a single penny increase in general provincial taxes to the people of British Columbia. For the information of the Honourable Members, a table of comparative provincial government tax rates is provided. The table illustrates the ability of the Province of British Columbia to support a record budget of expenditures fully balanced from revenues based on rates amongst the lowest - still amongst the lowest - in Canada. Mr. Speaker, a brief analysis of the provincial budget on an expenditure function basis at this point is helpful to reveal the true benefit and impact of the budget for the people of British Columbia. In the coming fiscal year, $1,195,199,000 or 69 per cent of the total provincial revenues will be devoted to the social improvement of our people. This record expenditure, Which, Mr. Speaker, is more than the total province revenue as late as 1970, is for education, health, and social service, which reflects the Government's philosophy of people-oriented policies. We need a well-planned educational system which is capable of anticipating long-run changes in the required academic and technical qualifications of our labour force. A proper education will equip the individual to earn not only a living but also to enjoy life more fully, a significant point today as workers gain more and more in leisure time. To determine the best educational system for the province, a complete examination will be carried out by two commissions appointed by the Government - one to study post-secondary education and the other public schools expenditure. Next year, $495,544,000 will be appropriated for educational services, compared with $322 million in 1970. Even though over-all public school enrolment is expected to fall for the next few years, costs are still climbing as the secondary school component of total enrolment is rising, and provision of facilities in this sector takes more money than the lower grades. Enrolment in post-secondary institutions continues to grow, with the major increases experienced by the community colleges. We are particularly pleased to see the increased use of community colleges as an avenue to higher and continuing education to all our citizens. In the field of health and social services the creation of a comprehensive first-rate health service system and the provision of a progressive social services program are of major importance and a high priority to this Government. To this end we have initiated a thorough study of British Columbia's health services and are experimenting with alternative solutions to the social needs of provincial residents. Total expenditures on the broad range of provincial government health and social service programs in the next fiscal year will be $699,655,000. The $275 million appropriated for hospital care allows for addition of 246 acute and 705 extended care beds placed in service in the current fiscal year. The development of out-patient services to ease the demand for hospital beds is proceeding, and a system of nonprofit chronic-care facilities with a high priority of service, and operative under the provincial hospital scheme, is planned now. The greatly increased social services provided by the provincial government will cost $257 million in the next fiscal year. The $90 million provided for medical care is to meet the needs of the 99.7 per cent of our population voluntarily registered in the low-cost comprehensive provincial medical plan. The expenditure next year on mental health services totals $50 million and provides for expanded regional services in addition to institution services. Public health programs of the provincial government require $26 million in the next year. The economic policy of this Government is to promote development which most benefits the people of the province. This entails the encouragement of a higher degree of processing our natural resources in British Columbia. Not only is improved management of our resources necessary, but also the Government proposes using this sector to stimulate employment at this time. This next year $326 million is to be appropriated for highways and resource management expenditures. The extensive provincial highways and ferries system will receive $221 million. Management of our forests is allocated $46 million. The appropriation for recreational facilities and conservation programs will be $13 million. The important water resources and pollution control programs will receive $13 million. This Government is alert to the financial problems of local Governments and the tax burden upon property-owners. I have already made reference to the removal of the reduced provincial government sharing of school district budgets, the increase in the municipal per capita grant, and the increases in the annual homeowner grant. It will be recommended that the provincial government's annual per capita grant payments to municipalities be on an unconditional basis in the future to suit the priorities of each individual municipality. In the coming fiscal year a total of $1,014,691,000 will be devoted to helping local governments deliver services to people. Provincial per capita was $285 in 1970 and it will be $438 in 1973/74. Mr. Speaker, in concluding this rather brief budget speech, I want to take this opportunity to say a few personal words, because I didn't have the opportunity to speak in the last debate. I want to thank my colleagues in this House. I want to thank my colleagues in the cabinet. I want to give a public expression of my appreciation of the many, many hours that this group has put in their new tasks as the cabinet of the Province of British Columbia. I have been rather harsh and cruel at times with the cabinet. I have given them agendas, projects and goals that would tax any person. Not once has any single cabinet Minister come to me complaining that his work load is too heavy. I want to thank them for carrying that work all these months. I want to thank the Government backbenchers, who are not a silent group, who have very strong opinions, and who I've publicly encouraged to express those opinions, both in caucus and in public, at every possible opportunity. I want to thank the official Opposition, the Liberal Party and the Conservatives for keeping two confidences. They were extended the opportunity of having the throne speech the day that it was delivered, early in the morning, and they did not break that confidence. They were extended the opportunity of having the budget speech early today and they did not break that confidence. I welcome that new level of co-operation and understanding. Mr. Speaker, I want to emphasize this Government is committed to implement policies to solve our many problems and has received a mandate from the electors to do so, We proposed a new deal for people, and the people of British Columbia accepted this proposal. We own a wealthy province and we deserve a greater return on our natural resources. It is, therefore, not beyond our capabilities to make the changes that are required. Upon the completion of studies presently under way on the realignment of provincial government operations, other policies will be introduced in a business-like manner. We are capable of doing much more than has been done in the past and our new deal for people, Mr. Speaker, we hope will make a better life for all in British Columbia.