Province Législature Session Type de discours Date du discours Locuteur Fonction du locuteur Parti politique Nouveau-Brunswick 50e 2e Discours sur le Budget 17-04-1984 M. J.B.M Baxter Ministre des Finances PC Mr. BAXTER, presenting the budget, spoke as follows: Mr. Speaker, before beginning my budget address, I would first like to compliment you on your excellent work as Speaker of the Rouse. I am sure all members will agree when I say that your sound judgment, your fairness and your funny bone are recognized and appreciated by this Assembly certainly, one of the memories that I will treasure regarding this, our Bicentennial year, will be the wigged adornment of Mr. Speaker on opening day. I am pleased to report at the outset that the government has succeeded in slowing the growth in debt which, if left unchecked, would have a negative effect on both the provincial economy and our financial posit ion. The $191 mi11ion Ordinary Account deficit budgeted in 1983-84 was reduced to $171 mi11ion by the third quarter of last year and the 1984-85 budget demonstrates continued real progress in reducing the deficit. The deficit on Ordinary Account in 1984-85 will be $97.5 million or over $93 million, down from the $191 million deficit budgeted for last year. Financial requirements in 198485 will amount to $380.3 million, down from the $465.4 million budgeted last year. In addition to the usual details about our plans for the fiscal year immediately ahead, I will outline our broad objectives and plans for the two years beyond 1984-85. The government believes that people understand the nature of the difficulties that we face and our efforts to bring provincial finances back into balance. There are many difficult decisions still before us and this government wants the people of New Brunswick to be aware of the road ahead as we see it and the steps that we feel must be taken. A gradual approach to reducing the deficit will give us time to find more savings through product invite improvements, and will thus minimize the effects of such reductions on public services. Following last year's measures to reduce the deficit, 1984-85 is the next step in a plan of action to eliminate the deficit that will take until 1986-87 to fully implement. Mr. Speaker, the fiscal plans and projections that will be outlined to you today are not coloured by vague hopes that something will turn up. The budget does, however, contain strong incentives for the private sector which should bolster the economy and generate more provincial revenue than is currently projected. I have hope that more revenue may be forthcoming from the federal government than is in the budget plan. As proposed in the budget address last year, New Brunswick's structural deficit has been discussed with the federal Minister of Finance who gave our case a sympathetic hearing. As our plan to restore the province's fiscal health bears results over the next several years, it will be possible to free more resources to tackle our economic problems. However, even within the limitations imposed by restraint, the positive measures which are outlined for 1984-85 will help to restore economic health. Before describing our plans in detail I would first like to briefly review the 1983-84 fiscal year. Mr. Speaker, the economic projections for 1983, on which the 1983-84 budget was based, have materialized largely as forecast. Gross Domestic Product - GDP - grew at 2.2% on an inflation adjusted basis last year, which is very close to the forecast of 2%. Last year's turnaround in economic circumstances was led, as expected, by a pickup in exports and consumer spending. Employment growth was better than expected, but larger labour force growth due to net in- migration resulted in an unemployment rate somewhat higher than anticipated. Inflation fell substantially from the previous year's level, with the Saint John consumer price index - CPI - increasing by 6.8%. This is slightly higher than the projected increase of 6.3%. The financial situation of the province has improved steadily since the first quarterly report of late last summer. The third quarter report, released in January of this year, revealed a deficit on Ordinary Account of $171.2 million or $19.4 million less than budgeted and $46.7 million less than estimated in the first quarter report. All of this was caused by a drop in expected Ordinary Account spending. The third quarter estimate of revenues for 1983-84 was $1.7 million lower than budget. The improvement in Ordinary Account spending is due primarily to two factors. First, restraint measures in the civil service and lower demands for certain programs have resulted in significant savings. Secondly, some programs originally included in the budget were altered or delayed because of the deficit problem. At the end of the third quarter, several departments were estimating that their spending would be significantly Lower than budget: The Community Improvement Corporation, by $6.7 million; the New Brunswick Housing Corporation, by $9.5 million; the Department of Social Services, by $12.6 million; Service of the Public Debt, by $8.7 million, and the Department of Youth and Recreation, by $3.7 million. However, major increases were anticipated in the Departments of Health and Education where actual spending was expected to exceed budget by $8.1 million and $4.8 million respectively. Although forecast revenues were down in total by less than $2 mi Ilion, a major decline in federal equalization payments was offset by increases in personal income tax, municipal real property tax, lottery revenues and the Established Programs Financing payment. Net capital spending was estimated at $206.2 million, up by $5 million from budget. Net loans and advances were estimated to be down slightly at $25.8 million. These items, together with sinking fund payments estimated at $47.3 million, yielded a third quarter financial requirements estimate of $450.5 million. Mr. Speaker, recent information suggests that the trend outlined in the third quarter will continue. Final expenditures will likely be lower than estimated in January and revenues may show some increase. Overall, it is expected that the end of year financial statement will reveal a financial picture somewhat better than the third quarter report. Mr. Speaker, I will now provide the details of the financing program last year. During the fiscal year the province issued debentures for amounts equivalent to $328.2 million in Canadian dollars. The New Brunswick Municipal Finance Corporation raised a total of $42.8 million in Canadian dollars. With the completion of Point Lepreau, the New Brunswick Electric Power Commission's capital financing requirements were minimal and no debenture financing was required during the year. The Municipal Finance Corporation placed two serial debenture issues on the Canadian capital market. The relatively low cost of these financings demonstrates the savings available to municipalities resulting from large-scale borrowing and the use of the province's guarantee which were made possible by the establishment of the corporation. In our continuing efforts to m1nimize borrowing costs, the province introduced two significant financing innovations: a Treasury Bill auction and a currency swap. In August 1983, the province began selling $7 million of 91 day Treasury Bills every week. The bills are offered to the bidder having the lowest cost through a competitive tender involving banks and investment dealers. The program has been highly successful with New Brunswick consistently borrowing at relatively attractive rates. Treasury Bill rates ranged from 9.19% to 10.52% throughout the year. The second innovation arose from the province's need to use foreign currency markets because of the large size of our borrowing program. Initially we intended to borrow United States dollars directly as part of our total financing program. However, in investigating financial markets we determined that by borrowing Swiss francs and exchanging our obligation in Swiss francs for an equivalent United States dollar obligation we could obtain substantial savings. As a result of the exchange, we were able to obtain United States dollars at an interest cost to maturity after all commissions and fees of 12.07%. If we had obtained the funds directly by borrowing in the United States domestic market we would have paid approximately 12.50%. Another measure taken to reduce financing costs was the successful negotiation of lower underwriting fees for debenture issues placed by our Canadian borrowing syndicate. Mr. Speaker, I shall now review the more important developments in federal-provincial fiscal relations during 1983-84. There was a joint federal provincial meeting of Ministers of Finance and Labour in June 1983 and a federal-provincial meeting of Finance Ministers in December of last year. At the June meeting, attention was focused on inflation and possible problems posed by the termination of several public sector restraint programs then in place across the country. The December 1983 meeting concentrated on the economy and the respective fiscal positions of the provinces and the federal government. All ministers were in general agreement that it was important to continue public sector spending restraint in 1984-85. It was at that meeting that I described New Brunswick's serious structural deficit to the federal Minister of Finance. This was done because New Brunswick will need additional federal assistance in order to give us latitude to eliminate our deficit while maintaining services comparable to the Canadian average. Our situation and concerns have been spelled out in detail to officials of the federal Department of Finance. I believe we have established a strong case in support of the position that equalization revenues are inadequate and we have advanced some ideas for adjusting federal programs to help us achieve a more stable financial position. New Brunswick is not alone as far as deficits are concerned. In 1983-1984 all provinces and the federal government ran large deficits. That is, of course, no reason for us to be ageless concerned about our situation. We will continue to work on these problems and press the federal government for assistance that is fair and reasonable. I am pleased to report that the Minister of Finance has given us a fair and receptive hearing and further communication with him is expected over the coming months. On other fronts of federal provincial fiscal relations, problems remain largely unresolved. Over the past 12 months the provinces continued to press the federal government to work out an acceptable arrangement for health care financing. The federal government refused a request by the ten Premiers for a joint meeting of health and finance ministers. Instead of compromise, the federal government introduced a new Canada Health Act which has the potential to make it more difficult and costly for us to operate our health care system. While the federal government has moved in some fields unilaterally and has not shown any inclination to reverse its 1982 decision to cut transfers, the tone of federal provincial fiscal relations has been less strident recently. It is to be hoped that this signals an improvement in relations this year. I will now outline the budget plan for 1984-85, dealing first with the economic outlook. An acceleration of internationa1 economic growth, especially in the United States, is expected to sustain a more broadly based economic recovery in New Brunswick this year with real GDP increasing by 4.2%. Continued expansion of exports, consumer and government spending, as well as capital investment, are anticipated to lead the province's stronger recovery. All industrial sectors are projected to have higher output in 1984. Mining, forestry, manufacturing and construction are expected to be the province's strongest growth industries. Capital investment is forecast to increase by 11.3% in 1984. Major industries anticipated to provide a positive stimulus to export growth include mining, pulp and paper, food and beverages, and electricity generation. Important contributing factors to output growth include the first full year of production from the Potash Company of America and Mount Pleasant tungsten mines, as well as significantly stronger markets for pulp, and good demand for lumber anticipated from a projected high number of housing starts, especially in the United States. For 1985 and 1986, real growth is now forecast to be 3.8% and 2.8% respectively, reflecting slower growth projected for the United States and Canadian economies. During this period, some of the factors contributing to economic growth in New Brunswick will include the frigate construction contract at Saint John Shipbuilding and Dry Dock, the opening of the new Denison-Potash Company of Canada potash mine, high operating rates at the province's newsprint mills, the opening of the Chatham metal reduction pilot plant, increased production from recent expansions in the food processing industry, as well as the possibility of re-opening the Heath Steele and Consolidated Durham mines. Gross fixed capital format ion is expected to be strong in 1984 due to higher projected levels of investment by governments and utilities. During the 1985 and 1986 period, however, investment will decline as a number of projects, including the federal special capital recovery projects and the Renous prison, are completed. As a result of sustained economic expansion, fairly strong personal income growth and anticipated lower savings rates, retail trade in the province is forecast to show steady growth over the 1984 to 1986 period. The Saint John consumer price index is expected to decline and remain relatively stable during 1984 and 1985 and gradually increase in 1986. Because of growing employment, the province's unemployment rate is projected to decline from 14.8% in 1983 to 13.8% in 1984, and continue falling to 12.2% in 1986. While this projected progress is encouraging, the government is fully aware that it is far from sufficient. The government knows that the economic recovery is not nearly as strong as we need. We are concerned about the longer term implications of the projected weakness in private sector investment. New Brunswick badly needs this investment to create more jobs, expand our tax base and maintain the momentum of economic growth. It has to be accepted that the government of New Brunswick can have only a limited impact on the economic difficulties facing the people and industry of the province. What we can and will do is set a clear course of action that, in our view, is supportive of long-term economic growth. Mr. Speaker, I will now describe our fiscal strategy. It is important for all of us to bear in mind the larger Canadian context of our economic and fiscal circumstances. Our country has been buffeted by a series of difficulties that are far too complex to be easily capsulized. The symptoms are high unemployment, a weak dollar, high government deficits, high interest rates, the threat of recurring inflation, lack of investment, and generally a poorer economic performance than that of the United States. It is not possible for New Brunswick or any other province to free itself of the shackles that constrain the Canadian economic and fiscal system. In fact, being part of a slow growth region, we tend to suffer a somewhat more severe version of the national ailment. One of the things that has gone wrong in Canada, as elsewhere, is that governments have committed themselves to more public spending than the growth in the economy can support. As is now well known, the recession of 1982 was far more severe than anyone anticipated and governments found themselves facing much larger expenditure demands with fewer resources than expected. The result has been large government deficits, even for provinces like New Brunswick, that have traditionally achieved a surplus on their Ordinary Account. The burden of these deficits threatens to abort the economic recovery, sending the country back into a recession. Governments in Canada are now trying to reduce their spending and their share of the economic pie. The adjustment process will not be easy. However, I am convinced that Canada will be better off after this adjustment process if government, business, labour and various interest groups put more emphasis on increasing wealth. We have to establish a way of working together in which we can collectively improve our lot. Mr. Speaker, in New Brunswick's case we have very limited tax room, thus the only sensible fiscal strategy is one which reduces the deficit by restricting the growth of government spending and encouraging growth of the private sector. This strategy will yield permanent productive jobs and a larger tax base from which improved social programs can be financed in the future. Accordingly, the budget plan for 1984-85 has the following elements: (1) a three-year strategy to correct the deficit problem; (2) economic initiatives; (3) social initiatives; (4) internal management initiatives, and (5) revenue measures. I will deal first of all with the strategy to correct the deficit problem. There are reasons for urgency in dealing with our deficit problem. First, interest on the debt is a serious drain on provincial resources. In 1981-82, just three years ago, interest on the public debt amounted to $157 million or 8.9% of Ordinary Account revenue. For 1984-85 we are budgeting $333.5 million for interest on the debt, which will amount to 13.9% of Ordinary Account revenue. If we allow these large deficits to continue, more and more of our tax revenue will be used for interest on the debt. If we do nothing, our debt will continue to increase and more of our resources will go to pay interest on this debt. Our traditional practice has been to maintain a surplus on the Ordinary Account and not allow our debt to expand more rapidly than our tax base. We departed from this practice in order to help people weather the recession. The unexpected severity of the recession created the financial difficulty which we now have to grapple with. As the economy picks up we must restore our financial situation to what it was before the recession in case we have to face further economic setbacks in the future. The government is therefore following up on last year's thrust to reduce the deficit with a plan to reduce spending sufficiently over a three-year period to wipe out the deficit problem. In preparing this year's budget, the government was able to cut over $60 million from the level of spending required to implement existing programs, enabling us to achieve a cut in the Ordinary Account deficit of nearly 50% from that budgeted last year. This is a major achievement, especially in light of the measures provided in the 1984-85 budget to boost the economy and improve social programs. The task has not been easy and much remains to be done, as I shall outline. This is the first budget in which three-year economic and fiscal projections are being published. I consider the targets we are setting here essential to our commitment to deal with the deficit and to solicit public input and support in achieving this strategy. I also view this as an important part of our effort to create a climate favourable to economic growth. If the government was to take no further actions, our projections indicate that the deficit on Ordinary Account will be $118 million by 1986-87 and the net debt will increase by nearly $480 million, to about $2.5 billion. If we should have to contend with another recession in the meantime, our financial situation would be worse than projected. It is imperative therefore to strive to restore our financial situation to what it was prior to the 1982 recession. The following plan will achieve this: - a reduction in expenditures of $80 million in 1985-86 to achieve a balance on the ordinary account; a further reduction in expenditures of $70 million in 1986-87 to achieve a sufficient surplus to cover our sinking fund instalment, thus ensuring that we do not borrow to retire debt. An attached Budget Paper provides more details on our projections and strategy. Even though resources are exceedingly scarce, it is no time to abandon effort s to expand our economy, for it is only through a growing economy that revenues will be available for financing needed government services. Furthermore, during this period when the public sector is shrinking in relative size special attention must be given to encouraging expansion of the private sector to replace government as an employer. Mr. Speaker, we are providing several major initiatives to encourage private sector growth, one of the most important of which is a tax holiday for small business. Effective January 1, 1984, the current New Brunswick small business corporate income tax rate will be reduced from 9% to zero. At a cost of $5.4 million, this tax break will benefit about 5000 businesses. Prior to the next budget, this measure will be assessed in light of its effectiveness and changes to federal legislation which may take effect as early as January 1985. We believe this tax break has several advantages. First, it is aimed at small business where growth and job creation prospects are considered to be the brightest for the next few years. Secondly, it will return capital to profitable businesses encouraging them to expand their operations, and may trigger investments many times larger than the value of the tax relief. Thirdly, by increasing the profitability of business, it will encourage entrepreneurship and business initiative. A second initiative 1S a venture capital program, another avenue by which we are encouraging the growth of private enterprise and job creation by the business sector. The Minister of Commerce and Development will be announcing the details of this new program shortly. Thirdly, our small industry financial assistance program, which provides forgivable interest free loans to qualifying small business, is being expanded from the manufacturing and processing sectors to certain types of businesses in the other sectors of the economy. This program, widely acknowledged as being an effective assistance program to small business, has already assisted 883 projects at a cost of $17.7 million, resulting in the creation of 3900 jobs and a total capital investment of $43.1 million. Details of the expanded program are being released by the Minister of Commerce and Development today. Fourthly, funding for the government's short-term job creation program for 1984-85 is being established at $12 million, with $3.25 million of this amount being earmarked for job protection. This program will complement the measures I have outlined for assistance to the private sector by focusing on specific target groups such as employable social assistance clients, those who have exhausted their unemployment entitlements, youth and students. Fifthly, $3.9 million has been budgeted as the provincial share for new sub-agreements in agriculture, forestry, minerals and planning. Budgeting for these new sub-agreements is extremely difficult because of the change in the federal approach to regional development. The federal government is moving from cost-shared activities to direct delivery. Assuming that federal efforts will represent 80% of the cost of development projects, as was the case under the General Development Agreement, this budget provision should trigger some $15.5 million in federal expenditures under these agreements in New Brunswick in 1984-85. Funding for sub- agreements in other sectors will be provided during the year when the federal government is prepared to enter into these agreements with the prov1nce. Mr. Speaker, we have provided for a number of other smaller measures which I now would like to itemize: An amount of $390 000 for a new hog assistance program which will provide financial grants to swine producers of $2.50 per weanling produced and $2.50 per feeder sold, based on production from July 1, 1983 to December 31, 1983. This assistance will help to alleviate badly eroded working capital resulting from extremely low hog prices, thus protecting more than $7 million in mortgages under the Farm Adjustment Board. An amount of $275 000 to implement a new fish health management program for aquaculture and to assist present growers who have incurred setbacks due to storm damage to cages, destruction of fish stocks by seals, and inadequate financing. This program, together with loan assistance and development of new potential sites, represents the initial year of an aquaculture development program capable of producing potential income of $27 million in five years. An amount of $938 000 to initiate a new French language computer engineering technology training program, in the Department of Community Colleges. This program is already offered 1n English and will complement training programs in computer aided design and computer aided manufacturing introduced by the Department of Community Colleges in the last year. An amount 0 f $390 000 for the Department of Community Colleges to provide additional courses in areas of high demand such as academic upgrading, computer literacy and second language training. Mr. Speaker, the government's capital budget is a major factor in the provincial construction industry's workload and supports many jobs in that industry. I am pleased that we have been able to budget for $263.9 million in total capital spending, an increase of 11.4% over third quarter estimates for 1983 84, providing a much needed boost to the provincial construction industry. Of this, $180.1 million is in economic development, an increase of $26.7 million over 1983-84. Major projects in support of economic development include: a major highway construction program - $121.6 million; the completion of the Woodstock Community College campus - $3.5 million; the start of construction of the Sud-Est Community College $4 million; the continuation of the Greater Moncton sewage treatment plant - $4 million, and Phase 1 of an integrated radio communication system in the province - $4 million. Before concluding a review of economic initiatives, I would like to comment briefly on our assistance to municipalities. A major feature of the 1983-84 budget was to request municipalities to share in the burden of restraint in government spending. I want to thank municipal leaders for the excellent spirit of cooperation they have exhibited in meeting this very difficult challenge. In nearly all cases, municipalities were able to maintain their current level of services without significant tax increases. I will now outline some of our initiatives in the social field. Mr. Speaker, the government is very pleased that even in these times of restraint we have been able to achieve gains in social program areas. The measures that I shall now outline reflect the government's continuing commitment to improving the social programs that are so important to the citizens of this province. The extramural hospital program, which already exists in Woodstock, Moncton and Pointe-du-Chene, will be expanded in the coming year to Newcastle, Bathurst and Neguac, with a support unit for palliative care in Saint John. Family planning clinics are being expanded to the major regional centers of the province. A major la-year program will begin this year for the replacement and purchase of highly specialized and sophisticated hospital equipment, such as X-ray machines. $34 million is budgeted to improve and expand hospitals in the province with major hospital construction in Campbellton, Edmundston, Moncton and Sackville. A schools' capital budget totalling $27.6 million, featuring $17.6 million for new schools, $8 million for major repairs and $2 million for capital equipment is provided. The special education program for children requiring special education instruction will be expanded. Improvements in the second language programs will provide every student with the opportunity to participate in a second language program totalling a minimum of 1200 classroom hours. The Maritime Provinces higher education grant to New Brunswick universities will increase by 6.3%. A baccalaureate program in forestry will be introduced at the University of Moncton. The maximum rent level used in calculating assistance for elderly and disabled renters eligible for the rental assistance program will be increased. Funds have been included in the budget to allow rate increases in the basic assistance program to ensure that individuals and families in need are provided with a basic standard of living. These changes were implemented on April 1 of this year. Provision has been made for sport development and improved student aid. Funds are provided for the 1985 Summer Games in Saint John. Provision has been made to improve the energy efficiency of arenas. Money has been budgeted for implementation of the new federal Young Offenders Act this year. Mr. Speaker, I would now like to outline some of the measures that will be introduced in 1984-85 to make the administration of government more efficient and cost effective. In my own department: An investigation and compliance unit to ensure that all businesses which are supposed to collect tax are doing so and remitting it to the government. Additional auditors to help provide better audit coverage throughout the province on a consistent and equitable basis. Additional staff to help manage our pension and sinking funds which now total about $1.2 billion. This should result in increased rates of return on these funds. Across the government, special emphasis will be placed on productivity improvement. A productivity improvement task force of senior government managers will be established on the recommendation of the Office of Government Reform. A productivity improvement fund of $1 million will be set up to help implement cost saving projects. The 1984-85 budget contains three items which will increase revenue. Effective September 1, 1984, all non sponsored students will have to pay a tuition fee for regular Community College programs of one and two years' duration. The government believes that students enrolled in Community Colleges, like students enrolled in universities, should pay a portion of the cost of the training. This measure will generate about $1 million. The second measure is a change in the standard corporate income tax rate. Effective January 1, 1984, the standard corporate tax rate will increase from 14% to 15%. This change will put our rate at or below that of five other provinces and will yield an additional $3.4 million in the 1984-85 fiscal year. The government has reviewed the Metallic Minerals Tax Act to ensure that the province is receiving an adequate return from the sale of its mineral resources. We concluded that a graduated net profit tax similar to that in Ontario and Quebec is in order. The Metallic Minerals Tax Act will be amended so that effective January 1, 1984, the 16% tax on net profits above $100 000 will be altered as follows : 16% on net profits between $100 000 and $3 million, 20% from $3 million to $10 million, 25% from $10 million to $20 million and 30% over $20 million. This will add an estimated $700 000 to revenues in 1984-85. Mr. Speaker, in any area of endeavour it is a good idea to step back occasionally from the day-to- day rush of events to evaluate progress and to consider the future. This is particularly true of the tax system which goes on from year to year with only occasional changes in rates or exemptions. Fundamental changes have occurred in the Canadian economy over the past few years which should be taken into account in any review of the tax structure. Our concern in this regard will be with the longer term and the potential that exists in our economy to encourage permanent job creation. We intend to look at alternative ways of raising the necessary tax revenue) bearing in mind considerations of fairness and incentives to economic growth. As well, an essential element of the review will be to draw on external advice on how to improve the tax system while not decreasing revenues. This year's Ordinary Account expenditure of $2495.8 million is an increase of only 4.4% over the amount budgeted for 1983-84. Our capital budget of $263.9 million is an increase of more than 17% over last year's budget. Because of much higher capital recoveries this year, net capital expenditures have increased by only 3.5%. As a result, total budgetary spending will increase by only 5.5%, a rate of increase much less than the growth in the economy and only slightly greater than the inflation rate. We have succeeded in cutting the Ordinary Account deficit almost in half, from a budgeted level of $190.6 million in 1983-84 to $97.5 million this year. The budgetary deficit is now $305.7 million, down 28.2% from last year's budget. Financial requirements in 1984-85 will amount to $380.3 million, 18.3% lower than last year's budget and 28.4% lower than the final outcome of 1982-83. The 1984-85 budget makes significant further progress in reducing the size of the government deficit and borrowing requirements and outlines how we propose to deal with the deficit problem by 1986-87. Our emphasis must be on measures that will increase production and wealth. Policies that emphasize redistribution of wealth as a permanent cure for unemployment are doomed not only to failure, but eventually to making the problem worse. Social development programs depend on first creating a strong economic base to support them. We have recognized that the private sector will have to expand as the relative size of the public sector is contracted. A strong incentive for such expansion has been provided in this budget. As a government, our options to address the unemployment problem are limited by our financial resources as well as being constrained by lack of growth in the Canadian economy. Our strategy is to create a climate of confidence by spelling out our fiscal plans for the next several years and by offering broad incentives to establish and expand business enterprises. Through such growth, our tax base will be increased and permanent jobs will be created. Mr. Speaker, this is a budget that focuses on the longer term and the measures that we can adopt now to ensure a prosperous future and continuing social progress. I am particularly proud of our progress in turning our financial situation around. While the task is not yet completed, it is a big step forward in ensuring the kind of future we would like to see for ourselves and our children.