Province	Législature	Session	Type de discours	Date du discours	Locuteur	Fonction du locuteur	Parti politique
Manitoba	36e	5e	Discours sur le Budget	27 avril 1999	Harold Gilleshammer	Ministre des Finances	Progressive Conservative Party of Manitoba


I am pleased to present the 1999 budget to the Legislature and the people of Manitoba. This budget affirms our government's commitment to meet new challenges as we build the future of our province, a future in which our children will enjoy even greater opportunities than we do today. Madam Speaker, this afternoon, I will outline a number of key budget highlights. The printed budget speech which I have tabled presents a more detailed version of our plans.

We are at a pivotal point in history, marking the end of one century and the beginning of the next. We also have reached a critical junction in our province. With a vision, solid plans and the support of Manitobans, we have come a long way, and we look forward to an even brighter future. But there is no room for complacency.

Even though we have successfully met many challenges of the past, new challenges have arisen which, if not addressed decisively, threaten to undermine all that we have achieved.

For our government, the status quo is not an option. The 1999 budget tackles head-on the challenges of maintaining a competitive tax environment, of improving health care for Manitobans and of increasing opportunities for our children and youth. It also puts forward our plans to meet these challenges by building on the momentum generated through our diverse and growing economy.

Madam Speaker, the timing of the last budget of this century gives us an opportunity to pause and reflect on the careful stewardship that has brought us to where we are today.

The favourable financial position in which we find ourselves is due in no small measure to the leadership, vision, and energy of my predecessor, the Honourable Eric Stefanson. I want to point out that the results of his work as Minister of Finance over the past five years will favourably affect the quality of life of Manitobans well into the future. I thank him publicly here today not only on my own behalf, but also on behalf of all Manitobans. I wish him well as he tackles new challenges in health care.

Madam Speaker, the basis for a better tomorrow is a strong economy today. At the foundation of our government's commitment to building a stronger future for our great province is our record of fiscal management.

Prudent stewardship has strengthened business and investor confidence in our province. The Investment Dealers of Canada recently described Manitoba as having the "best-managed public finances during the 1990s." Nesbitt Burns gave our government "full marks for fiscal integrity."

Madam Speaker, our record speaks for itself. It proves conclusively that balanced budgets and competitive taxes are essential for a strong and diversified economy.

Just listen to these impressive results:

Manitoba's economy outpaced the national economy in 1996, in 1997 and again in 1998.

Manitoba has the lowest unemployment rate in Canada and the lowest in our province in almost 20 years.

Manitoba continues to experience record levels of manufacturing shipments, exports and consumer spending.
But things have not always been this good. Since our government took office, our province has faced some significant challenges, not the least of which was overcoming the legacy of deficits, high taxes and growing debt left by our predecessors. Manitobans also have had to cope with significant federal cutbacks to transfers for key social programs such as health care.

Madam Speaker, our government worked hard to meet and overcome these challenges.

In 1995, we tabled the first balanced budget the people of our province had seen in 22 years. We followed up that budget with balanced budgets in 1996, in 1997 and again in 1998.

Balanced budgets, lower debt costs and a strong and dynamic economy continue to give Manitobans real choices in setting budget priorities. During our annual budget consultations, we received input from over 1,200 Manitobans. This budget acts on their thoughtful advice.

Manitobans told us they value our government's careful financial management. Madam Speaker, I am extremely pleased to present our government's fifth straight balanced budget. This is the first time in a quarter century that a government in Manitoba has tabled five consecutive balanced budgets. I am proud to be a part of this accomplishment.

Manitobans told us their highest priority for action was increased resources for health care. Madam Speaker, this budget devotes significant additional resources to further improve health care services.

Manitobans told us to continue cutting taxes to fuel our growing economy by keeping more money in people's hands. Madam Speaker, the 1999 budget makes further cuts to personal and small business taxes.

Manitobans told us to continue to pay down the debt. Madam Speaker, I am pleased to announce that this budget allocates $75 million for debt repayment. We have put this payment, along with the other funds that were set aside in the Debt Retirement Fund to good use. Earlier this month, our government made a $305-million payment on Manitoba's debt.

As I stated before, Manitoba is at a critical junction. The problems and challenges our province faces today will not disappear overnight. But in building on our sound financial and economic foundations, we can set priorities and be prepared to meet new challenges.

This budget looks ahead to the next century and charts a path that reflects the priorities of Manitobans. This is the path of fiscal fitness, a strong and growing economy, competitive taxes and less debt.

By taking this path, we will secure the resources we need to make further investments in health care and to continue building an education system that offers our children and youth the knowledge and skills they need to be successful, now and in the future.

We believe that the path we have chosen will make Manitoba an even more dynamic province, where our children will enjoy opportunities even greater than those we enjoy today.

Madam Speaker, the present era offers unprecedented freedom for our citizens to move, and we know we must take decisive steps to ensure Manitoba remains a desirable place to live and do business. With neighbouring provinces like Ontario, Alberta and Saskatchewan taking steps to cut taxes, we know we must act immediately, and be prepared with a longer-term plan for maintaining a competitive tax environment.

Competitive taxes today mean a stronger economy tomorrow. In our budget consultations, we heard clearly that Manitobans want sustainable tax reductions.
In particular, they indicated a strong preference for personal income tax cuts.
Madam Speaker, we are acting on this advice. I am pleased to announce further across-the-board income tax cuts for all Manitobans. Manitoba's personal income taxes will be reduced in line with changes to the basic personal credit that were announced in the recent federal budget. On top of this, we are dropping the personal income tax rate by an additional three percentage points. For 1999, we are cutting the rate to 48.5 percent. This will increase Manitobans' take-home pay starting July 1st. On January 1, 2000, we will cut the rate again, to 47 percent.

In total, Madam Speaker, our government is cutting the income taxes of Manitobans by $70 million this year, and $112 million next year.

These income tax cuts leave Manitobans with more money to provide for their children, more money to save for retirement, more money to pay down mortgages, more money to spend in local businesses and more money to invest in our province.

Madam Speaker, as fiscal circumstances allow, we will look at opportunities to further reduce taxes in budgets to come.

Madam Speaker, our government has always promoted a positive and competitive environment for small businesses. To maintain this competitiveness today, I am pleased to announce that our government is slashing the small business income tax rate from 9 percent to 5 percent. On July 1, we are cutting the rate from 9 percent to 8 percent.

We will then reduce the small business income tax rate an additional 1 percent on January 1 in each of the next three years. When fully implemented, this measure will save Manitoba small businesses $24 million annually.

Madam Speaker, Manitoba has an impressive record of fiscal responsibility which has allowed our economy to flourish. However, we have to ensure that we continue to offer a competitive environment for further economic growth.

As was recently announced, a Lower Tax Commission will consult with Manitobans, and then identify options for a tax system for Manitoba that not only reduces the tax burden, but is fairer, simpler and competitive.

Madam Speaker, all across Canada, provinces are dealing with growing pressures and changing needs in health care. We must meet the challenges in health care by focussing available resources where they will do the most good.

During budget consultations, Manitobans told us that health care should continue to be our government's top priority. Madam Speaker, I am pleased to announce that this budget responds by increasing health care funding by $194 million, a 10 percent increase over last year. We are making the largest single investment in health care services by any government in Manitoba's history.

In the coming year, we will spend $5.8 million every day in support of healthcare.

I would like to take a few moments to explain how the additional resources will be used to implement the next steps in our overall plan to meet the changing health care needs of Manitobans.

Madam Speaker, the first objective of our health care plan is to reduce waiting lists so that Manitobans have faster access to tests and to treatments. To meet this objective:

We will allocate a further $5 million to purchase additional equipment to meet clinical and patient care needs.

We will provide an additional $62 million to expand surgery capacity and acute care services. As a result, our health care system will provide 11,000 more mammograms, 15,000 more dialysis treatments and up to 600 more hip or knee replacement surgeries, and, Madam Speaker, we will provide an additional $1.3 million to increase by 30 percent the number of radiotherapy treatments for cancer patients.

These initiatives will significantly reduce waiting times and ensure that Manitobans have access to the treatments they need on a timely basis.

As the second objective of our health care plan, Madam Speaker, our government will continue to work diligently to address the shortage of health care professionals in our province.

For example, we are taking proactive steps to address the shortage of nurses. Through the Nursing Fund, we have set aside $7 million to encourage former nurses to re-enter the profession, to recruit new nurses and to assist nurses who wish to upgrade their skills.

In addition, this budget provides over $32 million to fill 650 nursing positions, including existing vacancies and new positions.

We are also providing a further $55 million to expand medical services such as cardiac care, obstetrics, intensive care, and additional physician resources.
Our plans will help to ensure that Manitobans continue to receive the quality care they need and deserve.

Madam Speaker, the third objective of our health care plan is to provide more options for community-based care. To meet this objective:

We are providing almost $3 million for the development of primary health care centres.

We are increasing funding for home care services to $147 million, allowing us to extend care to 32,000 Manitobans, and we are allocating $15 million more for personal care home services.

Expanding community-based care options free up hospital beds and make it possible for more Manitobans to remain in comfortable, familiar surroundings.
Madam Speaker, as my colleague the Minister of Health recently announced, our health capital commitment for 1999-2000 will total $123 million. Projects to be undertaken include a major expansion of the Gimli Hospital, significant renovations to the Flin Flon Hospital and the construction of over 200 more personal care home beds.

Since 1997, our government has increased the number of personal care home beds in Manitoba by over 850.

Madam Speaker, we are changing health care for the better. Manitoba’s health care system will deliver more high-quality health services this year than ever before. It will offer more options for appropriate, flexible and responsive care, and our government will continue to implement high standards of service across our province. Madam Speaker, Manitobans are already seeing the difference.

Investing in our children is simply the best way to invest in Manitoba's future. Our government's commitment to children is set out in our ChildrenFirst policy.

Consistent with our policy, this budget allocates an additional $25 million for programs designed to identify problems early, and to help families meet the needs of their children. In part, this funding will be used: to improve the diagnosis and treatment of children with fetal alcohol syndrome; to expand BabyFirst and EarlyStart; to increase funding for early literacy programs; to provide more accessible, quality child care; and to provide more services for children with special needs.

Our government recognizes it is expensive to provide for all the needs of growing children. Madam Speaker, today, I am pleased to announce that the provincial retail sales tax exemption limit on clothing and footwear for children is being raised from $100 to $150 per item. This change, which takes effect at midnight tonight, will save parents an estimated $1 million per year.
Madam Speaker, as a parent, and a former teacher and school principal, I fully understand that the education of our children is one of the best investments we can make in Manitoba's future. During the budget consultations, Manitobans emphasized that a quality education system that focuses on results was key to a successful future.

To give Manitoba students the tools they need to excel in the new economy, we are increasing Information Technology Grants from $10 to $40 per pupil. In fact, the total funding available for a variety of technology-related purposes is up by almost $8 million this year.

We are also increasing support for curriculum and standards development by a further $3 million. Since 1994-95, our government has committed over $17 million more for education renewal.

Madam Speaker, this budget also increases funding to school divisions so they will have more resources to meet the needs of our children. We are increasing public school funding by almost $18 million, a 2.3 percent increase. We also have made a commitment to increase overall education funding again next year by at least 2 percent.

We want our students to receive quality instruction in a quality learning environment. Toward this end, we have committed almost $48 million toward the Schools Capital Construction Program in 1999-2000.
Our young people and indeed all Manitobans must be prepared to take advantage of future opportunities. Low tuition fees, along with our Learning Tax Credit, our Scholarship and Bursary Initiative, and our student financial assistance programs continue to keep post-secondary education in Manitoba among the most accessible and affordable in Canada. Madam Speaker, in 1999-2000, our government will provide $339 million in support of post-secondary education, an increase of almost 5 percent over last year.

During the past several years, our colleges have developed an impressive track record. Our new $4 million Colleges Growth Plan dedicates $4 million to help our colleges develop and expand programs that respond to current labour market needs.

Madam Speaker, looking forward to the 21st Century, a challenge for our province now lies not just in job creation but also in assuring sufficient numbers of skilled workers, workers that our businesses need to keep growing. To help Manitobans take advantage of this growth, we are expanding our Apprenticeship Program by an additional $2.4 million, and we are targeting $6.5 million to our Making Welfare Work Programs.

Our government also will deliver $50 million in targeted training programs to assist unemployed Manitobans in finding jobs. In addition, our youth employment programs will help 16,000 young Manitobans take advantage of the growing job opportunities in our province.

Madam Speaker, we recognize that living with a disability poses an additional challenge for many Manitobans. We offer support to these Manitobans through a variety of services, including our Income Assistance for the Disabled Program. I am pleased to announce that this budget provides an additional $1.4 million to increase the support provided by this program by $10 per month. Almost 12,000 Manitobans with a disability will benefit from this increase.

This budget also increases funding for Adult Services programming by almost $9 million. These funds will extend services to more Manitobans with a mental disability and provide additional resources to community organizations.
Madam Speaker, our government continues to support partnerships among governments, aboriginal organizations, the community and the private sector as the best way to address the education, training and employment, and other needs of aboriginal peoples.

One successful initiative that has emerged from a co-ordinated partnership is Partners for Careers. Madam Speaker, this budget directs an additional $100,000 toward this program which has helped place 520 aboriginal graduates in jobs with private sector employers.

We also are developing an Aboriginal Education Strategy to improve graduation rates from both high school and post-secondary institutions. In the coming weeks, my colleague, the Minister of Education and Training (Mr. McCrae), will provide further details on this strategy.

Our government is helping to foster a greater level of autonomy within northern communities through our Self-Reliance Initiative. I am pleased to report that a recent success of this $1.6-million initiative was the incorporation of South Indian Lake. Through incorporation, this community gained the powers and responsibilities of a municipality.

Madam Speaker, preventing crime is the first and best way to protect our citizens and our communities. Our challenge is to make our urban centres, particularly Winnipeg, safer and more attractive places for our families. As was recently announced, we are developing a Take Back The Streets Initiative. The initiative will create Neighbourhood Renewal Committees to find innovative solutions to the problems of Winnipeg’s inner city.

Winnipeg’s community policing program keeps police visible in neighbourhoods, helping to prevent crime and to provide positive role models for children and youth. Our government will continue to provide $2 million to offset the cost of an additional 40 police officers in the city of Winnipeg. In total, our government is contributing almost $56 million to provincial police services.
Madam Speaker, Manitoba is widely acknowledged as a leader in dealing with domestic violence. We moved swiftly to implement the recommendations of the Lavoie Inquiry Report. This year, we have allocated a further $1 million toward the implementation of the Lavoie Inquiry Action Plan. This brings our total commitment to this initiative in the last two years to almost $3 million.
To ensure that staff are working in safe and secure environments, this budget commits over $20 million for improvements, expansions and upgrading of our adult and youth correctional institutions. This budget also allocates an additional $4 million to increase staff at correctional institutions.

Madam Speaker, our government continues to work closely with local governments to make Manitoba the best place in Canada to live. Manitoba is the only province to allocate a portion of provincial personal and corporate income tax revenue directly to local governments. This year, Provincial Municipal Tax Sharing payments will total almost $71 million, up 10 percent over last year's budget.
We also continue to support the Rural Economic Development Initiative, which was established by our government in 1992 to stimulate economic development and diversification. I am pleased to report that this budget allocates $21 million for this initiative.

As part of our six-year, $96-million capital funding commitment to the City of Winnipeg, we are directing almost $19 million toward urban capital projects. In addition, Madam Speaker, I am pleased to announce that for the second year in a row, we are providing the City of Winnipeg with $5 million to be used for residential street repairs.

Madam Speaker, in 1994, our government introduced a retail sales tax rebate program for first-time buyers of new homes. To date, this program has helped more than 1,500 Manitoba families to purchase their first house, and they have saved over $3 million in taxes. Today I am pleased to announce that this program will be extended for another year.

Madam Speaker, to create jobs, businesses need access to capital. For the Manitoba economy to reach its full potential, there must be a well-developed capital market. That is why our government has introduced a number of initiatives to facilitate investment by Manitobans in Manitoba businesses.
Since 1992, when our government introduced the 10 percent Manufacturing Investment Tax Credit, manufacturing investment in Manitoba has tripled. More than 10,000 new manufacturing jobs have been created. Today I am pleased to announce that this tax credit will be extended for a further three years. The successful Manitoba Film and Video Production Tax Credit has been instrumental in promoting Manitoba as a prime location for the making of films and videos. Between 1997-98 and 1998-99, production budgets almost tripled. In light of these strong results, we are also extending the Manitoba Film and Video Production Tax Credit.

And today, Madam Speaker, I am pleased to announce an important new initiative. The Manitoba Equity Tax Credit will encourage local investors to purchase new shares of small- and medium-sized Manitoba companies on the Winnipeg Stock Exchange. The credit will be 5 percent per year for up to three years, and the maximum credit for an individual in any year will be $1,500.
Madam Speaker, Manitoba enjoys unsurpassed transportation links. We are served by three continental railways. We are home to a number of Canada's major trucking firms. We have a seaport at Churchill, and Winnipeg International Airport is an important centre for cargo.

To help Manitoba's transportation system support our growing economy, our government will spend almost $180 million on infrastructure programs related to highways and transportation.

Our government has participated in a number of initiatives in recent years to help secure the future of the Port of Churchill, including our $6 million contribution toward the harbour dredging program. Effective at midnight tonight, motive fuel purchased by international vessels in Manitoba will be exempt from the motive fuel tax. This measure will boost the Churchill economy by making refuelling at Canada's northern port more attractive to shippers.

Despite low commodity prices, Madam Speaker, the Manitoba agriculture and agri-food sector continues to achieve significant success in diversifying and adding value to primary production.

To provide farmers with access to the capital necessary to diversify into more profitable commodities, we are extending the Diversification Loan Guarantee program. We are also contributing $2.6 million to the Agri-Food Research and Development Initiative to help Manitoba’s expanding agri-food industry develop new products.

In recent years, Manitoba's livestock industry has experienced very strong growth. Madam Speaker, to support this growth, I am pleased to announce that manure slurry tanks and lagoon liners for use in farm livestock operations will be exempt from retail sales tax from midnight tonight until December 31, 2000.
Our government is committed to providing safety-net programming that helps farmers overcome the risks inherent in agriculture.

In 1999-2000, we will provide over $53 million in crop insurance related support to farmers. In addition, as part of our contribution to the Agricultural Income Disaster Assistance program, we have committed up to $62 million over two years to help Manitoba producers cope with depressed commodity prices. In total, Madam Speaker, Manitoba producers will have access to as much as $155 million in assistance.

Madam Speaker, the mining sector is a major employer, especially in the North. To ensure Manitoba's mineral extraction sector remains attractive, I am pleased to announce that the mining tax rate will be reduced from 20 percent to 18 percent of mining profits. Our government also will provide over $9 million to encourage mining investment and exploration in Manitoba.

Madam Speaker, this year, we celebrate the spirit of Manitoba as we host numerous sporting events and activities. Because of our enormous success with the 1997 Canada Summer Games in Brandon, and the 1999 World Junior Hockey Championship, Manitoba has proven to be a prime location for national and international sporting events.

Manitobans are proud to host the Pan American Games this summer. With 5,000 athletes and thousands of visitors from 42 participating countries, the 1999 Games will be the largest celebration of sport and culture ever staged in Canada. The international exposure the Games provide is an opportunity for Manitoba to promote new economic and cultural relationships.

Madam Speaker, our government established the Fiscal Stabilization Fund in 1989 to act as a savings account for Manitoba's future. During this year's budget consultations, Manitobans told us that the fund must remain to provide protection against unforeseen developments. However, they also told us that they placed a higher priority on increased spending on health care and education than on increasing the balance of the province's savings account.

In 1999-2000, a $185-million transfer will be made from the Fiscal Stabilization Fund to finance a number of priorities, including capital initiatives. This transfer will bring the balance of the fund to approximately $226 million on March 31, 2000. Manitoba's savings account continues to be one of the key features of our fiscal strength.

Madam Speaker, the 1999 budget meets the priorities of Manitobans. This budget provides sustainable tax reductions. It directs significantly more resources to health care, education and services to children and families, and it makes a deposit to the Debt Retirement Fund.

Total regular expenditure in this budget is $5.9 billion. This is a 5.7 percent increase over last year. Almost two-thirds of this increase is allocated for health, Madam Speaker.

Manitoba's total revenue is expected to be up $309 million or 5.4 percent higher than in last year's budget.

In total, Madam Speaker, this budget invests significantly in Manitoba's future and projects a surplus of $21 million.

Looking ahead, our Medium-Term Plan charts our fiscal course over the next four years. In doing so, Madam Speaker: it extends our string of consecutive balanced budgets to eight; it provides resources to pay down Manitoba's debt; and it continues support for priority social programs.

There are occasions where people naturally pause to reflect on their achievements and their goals. The last budget of a century, Manitoba's first full century, surely is such an occasion.

In a young province like ours, many of us have met the pioneers whose dreams led them to our beautiful province and whose hard work built the foundation of the Manitoba we enjoy today.

I am sure those early pioneers did not foresee all the advances in knowledge and technology we have at our disposal today.

They would not be surprised, however, that Manitobans now enjoy all the amenities of the most advanced societies in the world. This was their goal and they were confident it would be achieved.

In the 20th Century, Manitoba took its place with the best in the world, and with our vision, hard work and the support of Manitobans, in the 21st Century, we will take the lead. Our government's vision for Manitoba has been instrumental in building the confidence and the social and economic momentum that will make our children's future better and brighter than we can imagine today.

We brought the finances of our province under control, and we are lifting the burden of debt from the next generation.

But there is no room for complacency. To simply try to maintain the status quo would cause our province to slip into decline, bringing with it all that a decline entails. As new challenges arise, we must act decisively to meet them. Madam Speaker, this budget takes another important step to meet new challenges.
We are building a stronger future for our province by cutting taxes. This leaves more money in the hands of Manitobans, makes Manitoba's businesses more competitive, and creates more jobs. Balanced budgets mean our government can cut taxes even more in the future.

We are building a stronger future for our province by investing $5.8 million each day to change health care for the better. Balanced budgets mean we can devote more funds to health care to ensure Manitobans have timely access to quality health care services.

We are building a stronger future for our province by renewing the education system and increasing education funding. We want our children and young people to have the knowledge and skills they need to take full advantage of the opportunities the future holds. Balanced budgets mean we can devote more resources to equipping Manitoba's children and youth for the new economy.
The investments we make in our children, in our youth and in our province in the 1999 budget will guarantee a brighter future for all Manitobans. As the next century approaches, Manitoba stands ready to meet new challenges.

Thank you, Madam Speaker.