Province Législature Session Type de discours Date du discours Locuteur Fonction du locuteur Parti politique Saskatchewan 16e 2e Discours sur le budget 18 Février 1969 David Steuart Trésorier provincial Saskatchewan Liberal Party Mr. Speaker, it is the tradition I am wearing a different tie. It is a tradition I understand that has been set in this House for many years. I got this tie that I am wearing from the Hon. Member from Souris-Estevan (Mr. MacDougall) just before I delivered my last Budget, my first Budget last year. Two minutes after I delivered it he tried to take it away from me, but I managed to hold on to it so I am wearing it again this year. I hope that when I finish this Budget he will feel differently than he did, and all Members will feel differently than they did after the last one, except for the Opposition and I hope that they feel worse. Mr. Speaker, it is with pride I present the fifth balanced Budget to be brought before this Legislature since our present Liberal Administration was elected in 1964. Five balanced Budgets in the last five years is a record few governments in Canada have achieved. In fact, Mr. Speaker, I can tell this Assembly that today the Government of Saskatchewan is in a sounder financial position than any other Government in Canada today. Mr. Speaker, this did not happen by chance, but resulted from five years of sound budgeting, responsible tax changes and the broadening of our tax base through increased industrialization. However, we still face financial problems caused by rising program costs, withdrawal of federal revenue and continuing inflation. The most serious of these is brought on by pressures to push education, health and welfare costs far beyond the increase in our productivity or our financial capability. These forces are active at the community, provincial and federal level, and are to a large extent led by professionals in the fields of education, health and welfare. Our Government does not question the right of these people to fight for a larger share of the tax dollar, nor do we question the high priority demanded for these programs. In fact, we have given and will continue to give them the largest share of our revenues. Nevertheless, I am convinced that an objective observer of this country would seriously question our sense of values and many of our priorities. Mr. Speaker, in too many areas of our country, we see children and adults by the hundreds of thousands coming out of run-down shacks, wading through mud and dust to get to palatial schools, luxurious hospitals and elegant nursing homes. No one questions the idea that these buildings should be modern, well built and attractive. But an ever-growing number of people are questioning the amount and the way their tax dollars are being spent on these buildings and the level of service they generate. The public is looking to the leaders in these fields to show a greater awareness of the over-all needs of society and to limit their demands on the public purse. Too often, rather than facing up to the issue at hand with practical action, the problems are deferred by endless studies. The growing and increasingly complex needs of education and health can and must be met by a more sensible use of present facilities and personnel and with a slowdown in the impractical cost increases of the last few years. Mr. Speaker, this Budget reflects our concern in these areas, for, while we continue to give education and health top priority, we have also attempted to balance the scales with more help to some of our under-privileged citizens and with programs to increase the wealth of our economy. I hope our professionals in the field of health and education will take the huge sums of money we vote them, less than they demand, but more than we allocate to other programs and show the kind of leadership necessary to keep Saskatchewan in the forefront in these vital fields. Mr. Speaker, this problem is compounded by the recent developments in our Federal-provincial fiscal relations. In the coming year we will again lose $5 million in equalization grants and $500,000 in national health grants and as well be forced to pay the total cost of a number of smaller programs formerly cost-shared but now dropped by Ottawa. Mr. Speaker, while the loss of this revenue is serious, it is not nearly as important as the apparent motive behind these moves by the Federal Government. While I will go into this subject in more detail later in my speech, I have highlighted the problem because I am convinced our national unity demands a higher level of integrity than now exists in Federal-Provincial fiscal negotiations. At times Ottawa seems to be trying to hoodwink us and in truth the Provinces often have been less than honest with the Federal Government. In spite of these and other obstacles, we will balance this year's Budget and next year's Budget as well, if we are given a vote of confidence. The fact that we will emerge this year with a small surplus, in spite of a serious drop in agricultural income, is a tribute to the diversification of our economy, accomplished these last few years. The unfortunate drop in agricultural income, rising demands for increased Government spending, a further withdrawal of Federal revenue and continuing national inflation combined to place an added strain on our fiscal outlook for the coming year. Mr. Speaker, our goal for the 1969-70 year was to keep our expenditures and revenues in balance with no increase in taxation to individuals. At the same time we are determined to move ahead with the progressive platform for which we received a mandate in 1967, and this means new programs. The only feasible answer lay in the closest possible review of our present programs to see what, if anything, could be cut down or cut out without seriously affecting the real needs of our people or the worthwhile goals of a progressive government. We began this review or stock-taking last summer and it consumed thousands of man hours and produced excellent results. Mr. Speaker, I would like to pay the highest compliment to the men and women of the Treasury Department in general and the Budget Bureau in particular. These people are bright, hardworking and dedicated and a great deal of the credit for our excellent financial position belongs to them. We also had fine co-operation from the Cabinet Ministers, their deputies and staff. To request departmental people to take a hard objective look at their own programming and then accept the decision to curtail or reduce some of their activities in order to accommodate over-all government priorities is asking a great deal, but we did this and the response was outstanding. We asked these and other questions about every program, every project and every grant: When did it begin? Why was it started? What need did it fill? How much money and how many people were originally involved? How much money and how many people are now involved? What is its present purpose and does the need for this program still exist? Well, Mr. Speaker, we found proof of what we already knew that government has grown at an unbelievable pace over the years. While this is not a very startling statement, when you see the growth traced, program by program, it is disturbing and poses serious questions about how to control the growth of modern government. We also found that while there has been, over the years, a very high birth-rate of government programs, the death rate has been almost nil. We decided after careful examination of all the facts that some programs had outlived their usefulness and, as I will point out in detail when I come to departments, we put them quietly away. Mr. Speaker, I predict our Opposition will not treat them so quietly because I am sure they can point to some good in every program. After all it is almost impossible to spend money without doing something for somebody. I would remind those who would criticize this approach, to balance what we have discontinued against the programs we have retained and the new programs we will be proposing and also to remember that the taxpayer could do with more consideration than he has had in the past years. Mr. Speaker, after reviewing our revenue projections for 1969-70, we were faced with the necessity of keeping our overall expenditure increase within about seven per cent. Realizing that education, health and welfare would have to be given a larger percentage than this in order to maintain our high standards, we were forced to ask some departments to accept no increase and in fact asked others to take a decrease. In view of wage and cost increases our goals could only be achieved by program cuts or greater administrative efficiency. On top of this, most departments wanted to implement new programs to meet changing conditions and we agreed that this made sense. To the programs that survived this scrutiny we added our new plans. The result is, I believe, a responsible, well-rounded Budget. It is also an optimistic Budget that reflects the sound position that we are in today and the great prospects opening up for Saskatchewan in the years ahead. Mr. Speaker, before going into details concerning the Government's plans for spending and raising funds in the coming year, I would first like to review the highlights of Saskatchewan's economy. Perhaps, Mr. Speaker, more than in any previous year the performance of the Saskatchewan economy in 1968 demonstrated the enormous benefit of the program of economic diversification our Government has promoted since taking office. Even though a very large part of our crop had to be harvested in a damp condition, personal income achieved a record level, equal to the per capita income which was reached in the bumper-crop year of 1966. In 1968, labor income was the highest in the history of the province and we had the lowest unemployment average of any province in this nation. In 1969 we expect non agricultural income to be increased by about $100 million to well over $1 billion, another record for this province. Investment in new machinery and equipment will continue at a high level as our mines and industries continue expansion programs and replace worn-out equipment. Moisture conditions throughout the province are excellent and give promise of a good start to this year's crop. We are confident that 1969 should see a further advance in our economy. Mr. Speaker, I would like to deal now with some aspects of federal-provincial-municipal relations. I believe it is timely to weigh the significance of the Federal Government's attitude to the effect that the Provinces should look after their responsibilities and the Federal Government would look after its. This statement would not be unreasonable if all three levels of government were starting from a base where the expenditure responsibilities were in line with the revenue potential. However, studies have confirmed that there is a fiscal imbalance between the responsibilities and the revenue potential of provincial and municipal governments and that this gap will continue to increase. The present situation is aggravated by the recent decision of the Federal Government to phase out national health grants over a three-year period. This will result in a loss to the province of $4 million in Federal revenues. Of this amount half a million dollars would be effected in 1969-70. Not only did we object to the loss of these revenues, but we also questioned the integrity of the Federal Government in this regard. For example, on the same morning that the Federal Minister of Finance assured the Provinces of fiscal compensation for the Federal withdrawal of the national health grants, the Federal Minister of Health and Welfare announced the withdrawal of the national health grants without any transferring of funds. We have maintained our position that any transfer of responsibilities should also contain a guaranteed growth of funds to meet the projected cost increases of these programs. Mr. Speaker, if the present imbalance between our fiscal resources and responsibilities were corrected, and we can obtain these guarantees, we will accept the principle that the government which spends the money should raise the money. Then we will be in a position to establish our own priorities which up to now have been distorted by the Federal Government enticing us with 50 cent dollars. This will also eliminate the uncertainty of the Federal Government suddenly terminating shared-cost programs. It is even possible that both levels of government might even be able to reduce the number of civil servants, many of whom it appears have been hired to dream up detailed conditions of eligibility for cost sharing. As well, reductions might even take place in the countless number of auditors, many of whom audit the audits of other auditors. Mr. Speaker, if we are not offered a fair share of revenue, then I suggest we should hand the full responsibility for health and welfare over to the Federal Government along with our present inadequate financial resources. Because Provinces do not have adequate tax resources it makes it extremely difficult for them to fully meet the fiscal needs of their municipalities. The fundamental solution appears to be a realignment of provincial municipal responsibilities and the allocation and sharing of our tax sources to properly meet our respective responsibilities. As well, all levels of government must take positive steps to slow down their spending and put their financial houses in order. I think that the Government of Saskatchewan has displayed leadership in this area by sharply controlling our Government's spending. Mr. Speaker, we ask all local governments, including school boards and hospital boards, to display the same restraint even when this means making difficult decisions. Hopefully as a nation we can agree on the division and the sharing of our total responsibilities and then have the common sense to allocate and share our tax resources, so that each level of government is able to fulfil its responsibilities in a capable and a self reliant manner. Mr. Speaker, I turn now to our fiscal position for 1968-69. I will comment first on our revenue position. This year total budgetary revenues may exceed the original estimate of $338.8 million by some $5 million or over one per cent. It appears that receipts from consumption taxes will be very close to the estimate. Receipts under the Federal-Provincial tax arrangements will exceed estimates by over $4 million. Bonus bid sales of Crown oil reserves will likely be down by $1 million from the estimated $6.5 million. All other revenues are likely to exceed the estimates by over $2 million. On the other hand, Mr. Speaker, we estimate that in the current year total net expenditures will be approximately $5 million higher than we anticipated. Major over expenditures were incurred in several programs. For example, welfare services will exceed the estimates by slightly over $1 million. Fire suppression costs will be up by $1.3 million. Highway winter maintenance costs and other ordinary expenditures will be overspent by some $600,000. The highway capital program was increased by $650,000 for northern development roads. An additional $1 million will be required to pay commitments under the mineral resources exploration incentive program as a result of the unusually high level of activity in the north. As well, $1.5 million will be placed in the Saskatchewan Hospital Insurance Fund to cover the increase in nursing salaries. And a further $1 million was allocated to the Medical Care Insurance Commission Fund to meet the increase in the schedule of doctors' fees. Under expenditures in several capital programs not only offset some of these over expenditures, but also permitted the Government to set aside another $1 million for the South Saskatchewan Hospital Centre. In summary, Mr. Speaker, we expect to be able to finance all of our over expenditures and balance the Budget for the fourth successive year of Liberal Administration. Before outlining the major expenditure proposals I will first turn to the Government's fiscal forecast. We will continue to follow past practice and base our revenue forecast on the last 10-year average wheat crop of 19 bushels per acre. On this basis we expect revenues in this coming year to total $364.3 million, that is for 1969-70. Taking into account the full year's impact of last year's increase in the Education and Health Tax and the broadening of the base of the tax, we estimate total sales tax revenues will be $68.8 million. Gasoline tax revenues should increase by $3 million to $48.9 million. Liquor profits should yield $25.5 million, up by $1.5 million. Tobacco tax revenues are expected to remain the same at the current year's level of $5.6 million. In total, we expect revenue from the consumption taxes to yield $148.9 million. Mr. Speaker, in the Federal-provincial Tax Agreement the Province's share of income taxes, excluding the Federal Government's unconditional transfer of funds based on post-secondary education costs, will total $70.6 million. Twenty-nine percentage points of the individual income tax should yield $53 million, an increase of $5 million over the current year's estimate. The 10 per cent Provincial corporation Income Tax will produce $17.6 million, an increase of about $700,000. We estimate that we will also receive $23.2 million from the Federal Government based on 50 per cent of eligible post-secondary operating costs, an increase of $3.2 million over the current year's revised estimates. Our equalization payment will be, however, reduced again in 1969-70 to a guaranteed amount of $12.3 million, down again this year by $5 million. Mr. Speaker, mineral resource revenues should be slightly higher than this year's receipts. We assume that bonus bids in 1969-70 will be $5 million, a decrease of $500,000 from this year's revised estimates. We expect that potash royalties and other potash revenues will increase by $1.2 million to a total of $3.6 million. This increase will offset the decline in bonus bids and oil royalties. We estimate that all other revenues will increase by about $9.5 million. Of this increase, $3.3 million is a bookkeeping adjustment because national health grants received from the Federal Government this year will be considered as budgetary revenues rather than a refund to vote as was the practice in previous years. In total we forecast all revenues assuming no changes in taxation will be $364.3 million. This represents an increase of $25.5 million of 7.5 per cent above this year's original estimate. This forecast then established the over-all target of total Government expenditures set by the Treasury Board for the coming year 1969-70 assuming a balanced Budget. Mr. Speaker, I now intend to outline our major spending plans for 1969-70 as well as to mention some of the expenditure reductions which were made to finance new programs and improve others. In outlining the highlights of our expenditure program, it seems only reasonable to begin with the expenditures on education, since education accounts for the largest share of our budgetary expenditures and is an area which our Government considers to be of highest priority. Mr. Speaker, in the forthcoming year, the people of this province will devote 235 million tax dollars to the educational system in this province. Expenditures of this magnitude provide ample justification for concern by the people of this province over the spending of their dollars allocated to education. In the coming year, our Government's net expenditures on education are expected to reach $121.4 million, up by $10 million over this current year. Grants to local schools will take the largest portion of this amount, $68.8 million as compared to $65.9 million in the current year. Of this amount operating grants will account for $62.3 million, up $4.4 million over the current year's estimate. While this amount does not increase the proportion of total school costs borne by the Government, it will maintain the share established in past years. It is our hope that local authorities will face up to their responsibilities and try and hold these costs in check. Our proposed increase is entirely reasonable, due to the fact that enrolments in the school systems are expanding at a slower pace than has been the case in the past years. Mr. Speaker, the distribution and allocation of these grants will reflect changing patterns in modern education, as well as bringing into better balance the needs and resources of urban, separate and smaller non-formula districts. Construction grants will total $13.5 million gross or $6.5 million after Federal reimbursements. These grants will provide for the construction of comprehensive high schools in six centres. The amount of these grants is down slightly from the current year's estimate due to a levelling off of the construction of new comprehensive schools. In regard to northern schools, our Government intends to carry out an extensive construction program to improve our northern schools. A provision of $738,000 has been placed in this year's estimates for construction for schools in the following areas: Stanley Mission, Patuanak, Stoney Rapid, La Ronge, Wollaston, Fond du Lac, Camsell Portage, Cumberland House, Buffalo Narrows, Ile-a-la-Crosse. Also in the coming year our Government proposes to begin the first phase of an addition to the School for the Deaf in Saskatoon. This will provide more classroom accommodation and related space for the increasing enrolments. We have allocated $300,000 for this addition as well as $441,000 for regular operating expenditures of that school in 1969-70. In regard to technical-vocational education, major emphasis in this Budget will again be on technical and vocation education which will result in accommodation for over 2,400 new students in our technical-vocational schools. provision has been made for expansion and consolidation of existing programs in the technical institutes in Moose Jaw, Saskatoon and the vocational centres at Regina, weyburn and Prince Albert. Our Government, Mr. Speaker, plans to spend $8 million on technical and vocational training, an increase of 15 per cent over last year's high. Mr. Speaker, this program coupled with the added millions to be granted to the University is the most positive kind of proof that our Government recognizes the value of all levels of education and backs that belief with action and with money. Mr. Speaker, in 1969-70, the University of Saskatchewan will receive by far the largest percentage increase of any program of our Government, some $5.5 million over the current year's operating and capital grants. Total operating and capital grants will be $36 million, which is almost 10 per cent of our total Budget. There can be no doubt that the Government is giving the highest priority to investing substantial sums in our young people. In the coming year, the Government will provide $24 million for the operating grant to the University. This is an increase of $4 million or 20 per cent. To meet the capital expansion requirements of the University, we propose to increase the construction grant by $1.5 million to a total of $12,025,000. Included in this total is $500,000 to meet the Government's commitment of matching up to $1.5 million to assist the University in its private fund-raising campaign. Now, Mr. Speaker, taking into account all sources of capital funds, the total university construction program in 1969-70 will be $16.1 million, an increase of 33 per cent above the current fiscal year's program. Mr. Speaker, I am convinced that our University can take these huge sums of money and, by a sensible use of present facilities and a reasonable amount of work on the part of the faculty, provide a high level of education to every student who qualifies for entrance in the coming year. We turn now to the provincial library services. During 1968-69, the fourth regional library system, known as the Parkland Regional Library, was established in the province and is already serving 50,000 persons through 25 branches in the Yorkton area. In 1969-70, our Government intends to continue this program of providing improved library services to the residents of Saskatchewan. One example of duplication of programs, which we noted during our budget review, is the direct lending service provided by the provincial Library to individuals within the boundaries of organized regional libraries. The Government has accordingly decided to discontinue this service in areas now served by regional libraries. Mr. Speaker, I am pleased to announce that as a step toward the development of the larger libraries as resource centres, we will increase from 15 to 20 cents per capita grants to city libraries which are not within the regional library system. These grants to city libraries, coupled with the increased sums provided for the development of the regional libraries themselves, are an indication of the progressive approach taken by our Government in the development of library services for the people of Saskatchewan. Mr. Speaker, I turn now to the Health Department. Health costs continue to increase at an almost unbelievable rate. The over-all cost of the Government's health program in 1969-70 will be $150.3 million, which is an increase of $20.8 million, or 16 per cent over the amount approved for the 1968-69 fiscal year. The amount is allocated to the Government's health programs on the following basis: Saskatchewan Hospital Services Plan, last year $70.7 million, this year $77 million. Medical Care Plan, last year $27.4 million, this year $32.6 million. Mental Health, last year $14.8 million, this year $16.1 million. Frazier Report Recommendation, last year $.5 million extra, this year another $.5 million. Hospital Building and Expansion Fund, last year $3.9 million, this year $9.1 million. Other health programs, last year $11.7 million, this year $14.2 million. Capital Works Budget for Health, last year $.5 million, this year $.8 million. In other words we spent $129.5 million last year. This year we will spend $150.3 million. Now, Mr. Speaker, last year we introduced utilization fees in an effort to slow down the increase in health costs and thus protect these important programs. In spite of an almost hysterical and totally irresponsible opposition instigated by the Socialists, these fees have worked and our health plans are being used in a more sensible manner. We promised that no one would be denied health benefits through lack of money and to our knowledge no one has. However, to ensure that these fees will not work undue hardship on anyone, we will introduce a ceiling on utilization fees of $180 per family for any twelve consecutive months. Mr. Speaker, even though utilization fees have slowed down the rate of growth in health costs, these costs continue to rise so fast that, if allowed to go unchecked, they could either endanger our economy or pre-empt most other Government services. As a result, we are considering other alternatives for financing certain benefits under the Hospitalization Plan that are not now cost-shared by the Federal Government. This move will affect physiotherapy services provided by private physiotherapists, radiology services provided by doctors other than certified radiologists, and community clinics which provide similar services including laboratory facilities. I must immediately point out, however, that the money saved by these actions, as well as additional sums, will be used to finance other health services. Now, Mr. Speaker, before announcing our new and improved health programs, I would remind the House of another reason that forced us to review all health expenditures in a most responsible manner. As I pointed out before, on October 25th we were advised by the Minister of National Health and Welfare that most of the national health grant program would be phased out over a three-year period beginning April 1, 1969. As well, the hospital construction grant will terminate March 31, 1970 with the exception of those projects approved and under construction at that time. The only grants the Federal Government will continue are for professional training and public health research. In anticipation of this phasing out, we have transferred nation al health grant projects totalling $3.7 million and resulting Federal revenue totalling $3.3 million into the 1969-70 Provincial Budget along with 148 national health grant positions. Mr. Speaker, in spite of rising health costs and reduced nation al health grants, I am pleased to inform the House of the following new or expanded health 'benefits. The Federal Government's withdrawal from the national grant program is placing additional strain on city health departments as well as on the Province. To compensate the cities of Regina and Saskatoon for a portion of this loss, we will be increasing the grant to these cities from 75 cents per capita to $1 per capita. In addition, the Government has assumed responsibility for testing raw milk and milk products at processing plants in these two cities to reduce their expenditures. In the psychiatric Services Branch in the 1968-69 Budget, $500,000 was approved for the first phase of implementing the recommendations contained in the Frazier Report, particularly in areas of community services. In this regard, 37 additional positions for the psychiatric program were approved during 1968-69. Substantial salary increases have also been approved for professional positions in the psychiatric Services Branch. These measures have not only enabled the Branch to recruit more successfully for vacant positions, but have also enabled it to attract more highly qualified applicants. It is the Government's intention to proceed further with the implementation of the recommendations contained in the Frazier Report and, in addition to amounts allocated to specific programs, we have allocated a further $500,000 for this development. It is also proposed to develop a more community-oriented program for the mentally retarded. It has now been clearly established that a great many retarded are brought to a higher level more quickly in a home environment than they do even in a well-run institution. Another important event in the new fiscal year will be the opening of the Prince Albert Psychiatric Centre. As well, Mr. Speaker, as recognizing a need to improve existing facilities it has been agreed that dietary renovations will be carried out at the Saskatchewan Hospital-North Battleford at a cost of $650,000. The Legislature is being asked to approve $16.6 million for the mental health program for the 1969-70 year, an increase of $1.3 million over the current year, an increase of 23 per cent. Let no one say we are downgrading our mental health program in this province. Mr. Speaker, the intensive community program which is being developed in Saskatchewan is probably the most active in North America and continues to attract visitors from other countries. As you all know legislation passed at the last session of the Legislature created the Alcoholism Commission of Saskatchewan and charged that agency with developing a program to combat one of our most serious public health and social problems. The Commission is laying plans for a three-to-five year program which will provide a decentralized community-based program of education, research and rehabilitation. Mr. Speaker, our grant to the Commission for next year will be $445,000, 82 per cent more than this year's Budget and by far the highest in Saskatchewan's history. I would look for a moment now to the Saskatchewan Hospital Services Plan. In the coming year, expenditures under this plan will rise to $77 million, nine per cent up over last year. Most out-of-Canada care is obtained in the United States of America where extremely high daily rates place a considerable burden on beneficiaries who receive care in that country. Now to ease this burden I am happy to announce the rates for out-of Canada in-patient care are to be revised to provide maximum rates of $30 per day for adults and children and $7.50 per day for newborns, instead of the maximum rates now in effect of $20 and $5 respectively. In regard to hospital construction, financial support for hospital construction continues to be an important program. Emphasis is being given to the replacement and updating of existing hospital facilities in order that a high standard of hospital care might be made available to the people of this province. An amount of over $4 million will be allocated to hospitals, particularly in urban centres to enable them to upgrade their hospital plants. The 1969-70 estimates include $3 million for the South Saskatchewan Hospital Centre, bringing the total set aside for this project to $8.2 million. As well $1 million for the University Hospital in Saskatoon has been set aside, bringing the total for this project to some $3 million. In an attempt to improve present health coverage, assistance to home-care has been extended. Over the past year we have approved three new home-care programs located at Willowbunch, Swift Current and Yorkton. The purpose of these programs is to assist communities or hospitals in providing home-care services for individuals in their immediate environment where such services will either avoid hospitalization or shorten the period of hospitalization. This should help to relieve the pressure on hospital facilities in the province and also provide a type of medical care best suited to the patient's needs. Mr. Speaker, experience indicates that home-care per diem costs run approximately 25 per cent of hospitalization costs. Looking now to Saskatchewan Medical Care Insurance commission, in the 1968 Budget Speech, it was reported that benefits under The Saskatchewan Medical Care Insurance Act were being extended to include refraction services provided by ophthalmologists (July 1, 1968) and optometrists (September 1, 1968). I also announced that coverage was being extended to include Treaty Indians (January 1, 1969) and recipients of war veterans allowance (July 1, 1968). Now the full impact of these extensions and of the new centennial fee schedule, negotiated in this fiscal year between the Government of Saskatchewan and the College of Physicians and Surgeons, will be felt in the fiscal year 1969-70. The full year cost of the new fee schedule will result in increased payments of $5.2 million. Total medical care expenditures in 1969-70 are estimated to rise to $32.6 million, an increase of 19 per cent over the 1968-69 Budget. Mr. Speaker, I would like to challenge the people engaged in the health field as I did their counterparts in education. I am confident they can, with the money provided them, ensure for our people the highest quality of medical care. I am also sure that to do this without endangering our economy, they must make better use of the personnel, the facilities and the money allocated to them than they have in the past. Our Government again gives the health and education needs of our people top priority, but, as the costs continue to mount, it must be obvious to all responsible people that a greater effort has to be made by everyone concerned to hold down these cost increases. This responsibility belongs to doctors, nurses, hospital boards, and to hospital administrators and public health officials as well as to politicians. If every cent of the $150 million we will allocate for health was well spent to provide the best care for our people, I would have no objection to the amount or to the increase. But we will see hundreds of thousands of dollars wasted on unnecessary service, on unused facilities and unnecessary duplication. I think it is high time the professionals in the field of health, in and out of the Public Service, showed a little more leadership in putting an end to this waste. Mr. Speaker, in the field of welfare our Government has two main goals: firs~ the provision of financial assistance to meet the actual needs of people; and second, the creation of opportunities and support services so that the less fortunate will be able to help themselves. In recognition of these goals, we are budgeting $23.9 million gross for the Saskatchewan Assistance Plan for the coming year. This is a projected increase of $2.8 million over the amount estimated for the current year. I am pleased to announce that the rates for foster homes are to be increased in the coming year by $7 per month. This will be the third increase in foster home rates since we have taken office. Mr. Speaker, we are justifiably proud of our group-home program for children. In this Budget, we are providing for seven group-homes with a total capacity for 52 children. I remind the House that there were none when we took office in 1964. Mr. Speaker, I am pleased also to tell this House that we have established a Roy Wilson Centre at Sedley for the care and treatment of problem adolescent girls. This is the first institution of its kind in Saskatchewan. In the past we have had to rely on out-of-province facilities for the care and treatment of these girls. In 1969-70 we are providing $199,000 for the Roy Wilson Centre. I also wish to announce that legal assistance granted under The Deserted Wives' and Children's Maintenance Act will be raised from $25 to $75 to ensure legal aid for persons falling in this category. In the field of corrections, additional parole and probation services are planned. We are providing for increases in this area to ensure that the interests of society and the individual are amply protected, and to rehabilitate offenders so that they may assume a useful and productive role in the community. The family therapy program at the Regina Correctional Centre has been most successful and will be extended to Prince Albert at an initial cost of $35,000. The Lebret Farm program will be expanded ~o provide training opportunities for a greater number of our Indian and Metis people. The Adopt Indian and Metis program has, since its inception in 1967, found homes for close to 100 children. This program has been so effective that the Government has decided to continue and expand it, despite the fact that we expect a reduction in the financial participation by the Federal Government. In 1969-70 we will extend the program to the Saskatoon area. Mr. Speaker, it is obvious, especially in some of our northern communities, that a new approach to welfare must be found. The degeneration that develops among people when they are allowed to exist on social aid as a way of life cannot be tolerated. The Federal authorities have shown an almost unbelievable reluctance to face the facts of life in their refusal to consider sharing the cost of practical work and wage projects, as an alternative to continuing social aid. This is a prime example of the stupidity of cost-shared programs that force provincial authorities to ignore local conditions in order to comply with Federal bureaucratic red tape, just to qualify for Federal grants. We will continue to fight against this criminal waste of people's lives and taxpayers' money in the year ahead. Mr. Speaker, in 1969-70 the Saskatchewan Youth Agency will extend the Teen Power program to Saskatoon, Moose Jaw and North Battleford. The purpose of this activity is to provide summer employment to students in co-operation with Canada Manpower. The Government has also extended an invitation to Saskatchewan cities to host the 1971 Canada Winter Games. The cost of facilities for these games would be shared by the three levels of government involved. This project will have the short term benefit of providing greater opportunities for our athletes, and in addition it will have long-term advantages of providing these sports facilities in the various communities. I turn now, Mr. Speaker, to our Highway Department. To put an end to the slaughter on our highways demands bold new programs, not the least of which must be a system of roads built and maintained to accommodate modern vehicles as well as today's heavy traffic. Coupled with this is the need to supply our growing industrial complex with the highways needed to move goods to market. As well, we require roads in the North to harvest our forest resources and to extract our mineral wealth. Modern agriculture also places an ever-increasing load on our entire highway system, especially if diversification is to be encouraged. These are the major reasons we committed our Government to a four-year $300 million road program, $250 million to be spent by our Highway Department and $50 million through the Municipal Road Assistance Authority. But since we are holding expenditures in every department as close to last year's level as possible, we decided to limit our highway capital spending to the 1968-69 level of $42.5 million. However, we will raise the amount spent on maintenance and other ordinary highway expenditures by over $2 million beyond the amount that we actually spent in 1967-68. Mr. Speaker, common sense dictates that we should increase maintenance expenditures at a rate necessary to protect the tremendous investment that we now have in our highway system. Thus, expenditures on public highways will again be increased in 1969-70. An amount of $60.2 million will be provided, which exceeds the record estimate for this current year. Incidentally, Mr. Speaker, this compares to a total of $63.1 million which will be received in revenue from gasoline tax, driver licences and motor vehicle registration. In four-lane highway construction, Mr. Speaker, we now have a total of 146 miles off Durlane divided highways in the province. An additional 20 miles will be added in the coming year. Sixty miles of highway is to be constructed in Northern Saskatchewan in 1969-70 to serve northern residents and to provide access to additional mineral-rich areas. A total of $2.7 million will be spent in this area. Our Government will again be giving assistance to cities for the construction of streets and other urban connections, $3 million being provided for this project. provision is also made for paving or recapping 447 miles of highway, oiling or reoiling 884 miles and grading 525 miles. In addition, one new bridge over the Saskatchewan River has been planned with construction to begin in 1969. Regarding Municipal Assistance, Mr. Speaker, I mentioned earlier the Government's intention to establish a Saskatchewan Municipal Financing Corporation. As well, I would like to announce today that in recognition of the problems facing municipalities, and in fact all local governments, Premier Thatcher has agreed to call a Provincial-local government conference this year, probably in June. At this conference I hope we can lay out a practical time-table for the modernization of local government. I believe that this will call for a realignment of the boundaries, the responsibilities and the revenues of all local government. Our Government will not force, and I repeat, will not force any changes on the municipalities, but we must all realize that we will never solve today's problems with solutions developed over half a century ago. In the meantime this Budget reflects our willingness to help all forms of local government. Mr. Speaker, I mentioned earlier our pledge to spend $50 million on the construction of municipal roads during this four-year term of office. I am pleased to report that in 1969-70 a total of $12.6 million will be provided for this purpose. We have for some time as you know, Mr. Speaker, assisted cities with their roads and streets through our Highway Urban Assistance program. Our Government recognizes also that towns and villages face a very difficult financial problem in providing adequate streets for their residents. To assist them in meeting this need and to ensure that the town and rural dweller can enjoy some of the amenities of the city resident, our Government is initiating a new program of assistance whereby towns and villages can receive financial assistance for the gravelling of their streets. A total of $1 million will be made available for this purpose in the future. The appropriation for this new program in the coming year will amount to $200,000. I also wish to mention today, Mr. Speaker, that equalization grants will be increased from $2.4 million to $2.5 million for 1969-70. At the end of 1968, more than 15,000 miles of grid roads had been constructed, an indication that this program is now nearing completion. Emphasis will now be shifted to the construction of 15,000 miles of the main farm access roads. Total funds provided for these two construction programs for 1969-70 will amount to $5.7 million, a substantial increase over the current year's provision. Mr. Speaker, I am also pleased to indicate that a sum of $250,000 is being provided jointly by the Provincial and Federal Governments to construct roads to grid standards in Indian Reservations. This is $150,000 more than the amount provided in the current year and will provide for construction of some 35 miles of roads on these reserves. I'm sure the Opposition will be pleased to hear that the homeowner grant will be continued. The homeowners of this province will receive grants to the extent of $8.7 million in 1969-70. This is an increase of $500,000 over the amount spent in the first year of the program and it reflects additional, new homeowners and widened eligibility. A program of grants to towns and villages and hamlets to provide water and sewer facilities is being continued at the same level as for the current year provision has been made in this Budget for the development of a townsite near Jan Lake on the Hanson Lake Road. This town site, Mr. Speaker, is intended to provide the necessary services for mining operations in that area, but will also assist in the development of tourist industry. The program of providing loans to industrial towns to assist them in critical stages of their development is being continued and approximately $200,000 has been provided in the Budget for this purpose. Mr. Speaker, our 1969-70 provision for grants to industrial towns includes a grant to La Ronge in the amount of $25,000 to provide that community with a source of treated water. I look now at housing. The public housing program under the Department of Municipal Affairs now includes self-contained units for senior citizens as well as rental units for people of low income. The gross Provincial investment in this program for 1969-70 is estimated at $1.5 million and will increase our total subsidized housing stock by approximately 37 per cent. The Government is pleased with the marked success of a new program to purchase fully-modern older homes in the larger cities, for rent or purchase by employed persons of Indian ancestry. This is a joint program with CMHC and it is our intention to continue the program and expand it to include other growth centres. We have provided $500,000 in the Budget for this program and for the construction of housing units for sale to people of Indian ancestry under the northern housing agreement with CMHC. Mr. Speaker, in the program of land acquisition and land development, the Province proposes to invest $700,000 during 1969-70. This program will facilitate the provision of serviced land for housing at reasonable prices. I look now at agriculture. Our Government will continue to encourage diversification in agriculture so that a crop failure or continued poor export markets will not totally cripple the farm economy. To help farmers divert marginal land from grain production to grass and to further support our growing livestock industry, we are more than doubling the appropriation which provides for grants to farmers for this purpose. Further support to the livestock industry is provided by continuing the grant to assist in building or modernizing hog production facilities. This program has met with considerable success and we have already paid out more than $350,000 in 150 grants. The estimates for 1969-70 include $350,000 to extend this program for another year. I am pleased to report, Mr. Speaker, that arrangements have been completed wherein we will contract with the Federal Government to inspect some local abattoirs and we will share the costs with the plant involved. I am also able to report continued progress on development of the irrigation system served from the Gardiner Dam, in accordance with the terms of the 1958 agreement. This Budget includes $3.25 million for this purpose. Construction schedules anticipate major completion of the 40,000 acre Broderick area during 1970. Besides this we are including in our estimates the sum of $90,000 plus additional staff to commence the development of the Conquest area which includes a possible 30,000 acres. It is planned to make available over 70,000 acres of good soil and a first-class modern irrigation system by about 1975. We believe we have every reason to be optimistic about the contribution this investment will make to the economy of that area as well as to the province as a whole. Mr. Speaker, this Assembly is aware, I'm sure, that the Government has been increasingly concerned over the plight of our people of Indian ancestry. Agricultural development is one approach that has shown success and, accordingly, a substantial portion of the Budget for the Department of Agriculture is devoted to this purpose. With regard to Indian Reserves, we are budgeting for two programs. The first is for the development and construction of community pastures on Indian Reservations. The second is for the development of land on reserves for the use of individual Indian farmers. We are setting aside $180,000 in the 1969-70 Budget for these two programs. Mr. Speaker, we have also established a farm program for people of Indian ancestry not living on reserves. I am sure you are aware of the Cumberland House Farm project operated by the Department of Agriculture and the Green Lake Farm project operated by the Department of Municipal Affairs. It is proposed that all farm projects for people of Indian ancestry, except the Lebret Farm which will continue under the Department of Welfare, will in the future be operated by the Department of Agriculture. In addition, the estimates provide for development of farm projects at Ile-a-la-Crosse and La Loche where current employment opportunities are almost nonexistent and as well an additional project south and west of Green Lake. The emphasis which this Government is giving to this program is reflected in the following estimates which are included in this Budget. Cumberland House Farm, $162,000; Green Lake Farm, $137,000; Ile-a-la-Crosse Farm, $101,000; La Loche Farm, $96,000; New Green Lake Farm, $60,000. Mr. Speaker, this Budget also provides for increased assistance to agricultural societies. We propose to increase the grants to these societies which stage pari-mutuel racing from 50 per cent to 60 per cent of the pari-mutuel tax collect ed. In addition, the ceiling for this grant to "B" fairs will be raised from $1,500 to $1,800. In summary, Mr. Speaker, the agriculture ordinary budget will amount to $8 million, an increase of 18 per cent over the 1968-69 estimate. On the other hand, now that our capital outlay for irrigation works in the Broderick area has passed its peak, the agriculture capital budget will decrease by $900,000. Mr. Speaker, this Budget provides for an expansion of 25 per cent in the number of crop insurance contracts to be let by The Saskatchewan Crop Insurance Board in the coming year. We expect the number of contracts to increase to 15,000 in the forthcoming crop year. This increase will allow the Board to complete coverage in those areas where insurance is already available and to extend insurance to areas not previously covered. For 1969-70, we estimate $411,000 to administer these contracts. Turning now to mineral resources, when we became the Government in 1964, one of our first acts was to eliminate the tax on individual farmers who held mineral rights on the land they owned. The balance of mineral rights not held in the name of the Province is for the most part in the hands of relatively few large corporations. The CPR, the CNR, and the Hudson Bay Company are three among others, which hold vast mineral rights in our province. The tax on mineral rights has been almost nominal, only three cents an acre and has not changed in the past 25 years. We feel the time is long overdue when the owners of these mineral rights should be paying a tax more in line with their potential value. As a result, the Mineral Acreage Tax will be increased to 10 cents an acre and will generate an additional $800,000 in 1969-70~ I would indicate two points of interest regarding this tax increase. First, it will have very little effect on the potash industry, costing them in total less than $30,000 a year. Second, and most important, is that it is the only tax increase contained in this Budget despite allegations from all quarters that taxes would be increased in a major way. Mr. Speaker, the Legislature will be asked to provide funds for the mineral exploration incentive program in the form of a $1 million supplementary appropriation for the 1968-69 fiscal year and a further $1.1 million for next year. These amounts will provide for the Government's share of the cost of exploration programs which were approved at the beginning of the current fiscal year. This program, which was introduced by the Government in 1965, was designed to stimulate exploration activities in the Pre-Cambrian Shield of the province. It has been successful to the point where it has sparked the recent land rush in the north. Exploration permits have been taken out on more than 40,000 square miles in that area following the announcement of a possible rich new uranium discovery. In the light of the fact that each exploration permit carries a work commitment, the need for further incentives is considered unnecessary. Consequently, the mineral exploration incentive program will be discontinued when existing agreements expire at the end of the 1968-69 fiscal year. Mr. Speaker, we recognize that we may be criticized for terminating this program so abruptly, but we are convinced that when any government program has accomplished its purpose it should be discontinued. New mines expected to go into production in 1969-70 include two potash mines near Saskatoon, a uranium mine near Uranium City, and a copper-zinc mine near Flin Flon. We are confident that with the tremendous interest now being shown in Northern Saskatchewan the mining industry in our province has a very bright future. Mr. Speaker, in regard to natural resources, we are proposing a level of expenditure for the Department of Natural Resources below that estimated in the current year. Capital expenditures on recreational facilities will be reduced to $1 million from $1.9 in the current fiscal year. This is an example of the difficult decisions we were required to make if our Government was to act in a responsible manner and balance the Budget. The fact that we plan to spend less on the development of recreational facilities does not mean that we feel such facilities are unnecessary, but rather they are not as high a priority as our other expenditure proposals in the coming year. Furthermore, it must be remembered that for every dollar spent on capital works, at least an equivalent amount must be spent in future years to maintain these facilities. Even with the lower level of expenditure on capital facilities, we hope to meet the most pressing recreational requirements of our citizen. Consequently, we propose to start development of the Blackstrap recreational project to meet the needs of the Saskatoon area. We expect to spend about $100,000 on this project in 1969-70. We are also planning improvements in most of our other provincial parks. Our Government will be asking the Legislature to vote a substantial increase in the funds available for tourist development. These extra funds will be used to provide the necessary promotion to make "Homecoming 1971" a success. This campaign is designed to put Saskatchewan in the national spotlight and enhance our competitive position in the tourist trade. In the current fiscal year we will spend $20,000 on the promotion and a further $80,000 in 1969-70, and possibly more in 1971. Our Government, Mr. Speaker, as you all know has been very concerned about one particular group of people in this province. I refer to the Indian and Metis people, who, because of historic problems of location and lack of education and skills, have been unable to take part fully in the economic growth of our province or nation. In 1965 the Indian and Metis Branch was established in the Department of Natural Resources. While this Branch has had reasonable success in finding jobs for native people, the Government is determined to accelerate its programs to assist people of Indian ancestry. With this end in view, legislation will be introduced to provide for the establishment of the Saskatchewan Indian and Metis Department. We are well aware that government programs alone cannot solve all of the problems facing our native people. To assist in gaining the support of all of our citizens, we invited private industry, church groups, educators, and other organizations of many kinds to participate in the Saskatchewan Task Force on Indian Opportunity. Three meetings have been held and a remarkable amount of work has been done by committees and sub-committees to determine what job opportunities are available in private industry and government, to recommend what training and educational programs should be undertaken to survey the labor force and to review housing programs. Mr. Speaker, this Legislature will be asked to vote over $1 million for the Saskatchewan Indian and Metis Department for 1969-70. Of this amount, $650,000 is for the continuation of present programs and the remaining $420,000 will be for the implementation of the recommendations of the Saskatchewan Task Force on Indian Opportunity and other approved programs. As I have previously mentioned, agricultural and housing programs will be emphasized and will be carried out by the departments concerned. Mr. Speaker, I am pleased to inform the House that we have also made provision in this Budget for the Department of the Attorney General for a number of programs which will safeguard the rights of individuals and the community at large. I would like to just take a moment to review some of the highlights of the Budget of the Attorney General. We are providing over $4 million net for the services of the Royal Canadian Mounted Police. This is an increase of approximately $.5 million over what we provided this year. The increase in the cost of this program has been brought about by an increase in our share of the cost per man, and the fact that we have contracted for more men in the coming year. The Expropriation Procedure Act as you know was passed last year and calls for a Public and Private Rights Board which will act as a liaison between the government agencies and the landowner provision of $50,000 has been made in this Budget to cover the operation of this Board. Legal aid to indigents will be continued in the coming year. We figure it will cost us $115,000. An amount of $35,000 has been set aside to provide compensation for victims of violent crimes. As well included in this Budget is an amount to cover the costs of a new program which will provide for the consolidation and orderly payment of small debts. Our Government is pleased that the legislation dealing with the drinking driver that went into effect this past autumn has, to date, shown impressive results. However, we are very much aware of the need to establish further effective methods of improving the level of driver safety in this province. We have carefully reviewed all government programs relating to driver safety with the intent of increasing the utility of public funds being spent in this regard. As a result, this Government has decided to terminate the safety lane program operated by the Highway Traffic Board. This decision was reached because the voluntary nature of this program did not subject all vehicles to examination and further, when defects were found, repairs could not be ensured. To replace this hit-and-miss program we have under active study a project which will call for compulsory and regular mechanical check-ups for every vehicle allowed on our highways. Mr. Speaker, I promised no tax increase to individuals in this Budget. And there is none. It is now my pleasure to announce a major tax reduction. Our Government will introduce legislation at this session to provide a rebate of 75 per cent of the Estate Tax paid with respect to property sited in Saskatchewan. We feel that the cost of this program to the people of Saskatchewan is well warranted when the alternatives are considered. It is our opinion that without such a rebate the continuing existence of the family farm or family business would be seriously jeopardized. Inflation has forced up the value of these units to the extent that even a modest-sized operation would be liable for a substantial amount of Estate Tax. The tax liability on such an estate could make the transfer of the unit to the next generation extremely difficult, if not impossible. Today it is not unusual for a family farm or business to be assessed as high as $100,000. Under the new Federal legislation the Estate Tax liability could be in excess of $13,000. In many instances estates would not have the ready cash for such a payment and the possibility of forced sale exists. It is evident that our proposal will substantially reduce the tax burden and eliminate the threat of forced sale of our family farms and small businesses. Mr. Speaker, the need for this tax relief is imperative in light of the new Federal Estate Tax legislation which calls for a higher effective rate of tax. In the forthcoming year we anticipate paying out over $1.5 million under this program. We expect that this amount will increase to as high as $4 million a year when we have rebate applications and payments covering a complete fiscal year. In summary, Mr. Speaker, total budgetary expenditures in 1969-70 will be $364.9 million, an increase of $26.2 million over the original 1968-69 Budget. If we excluded the expenditures financed by national health grants which were added to the Public Health budget and are offset by Federal revenues of $3.3 million, the percentage increase over the original 1968-69 expenditure is 6.8 per cent. We predict this rate of increase will be the lowest of any Provincial Government in Canada. This is a positive indicator of this Government's responsible consideration of the taxpayers and the health of our economy. Mr. Speaker, education spending will increase by $10 million to $118 million and will again receive the top priority in terms of percentage of the total Budget. We will spend 33 per cent on education. To health will be allocated $71.1 million, an increase of $6.9 million or over 19 per cent of our total Budget. Highway expenditures will increase by $1.7 million to over $60 million, again over 19 per cent of our total Budget. Welfare spending up almost $2 million which is six per cent of our total Budget. Mr. Speaker, if we compare the total budgetary expenditures of $364.9 million with projected budgetary revenues of $364.3 million, assuming no tax increases, we would face a $600,000 deficit. However, the increase in Mineral Acreage Tax, which I previously announced, will increase revenues by approximately $800,000. Mr. Speaker, this will leave us a surplus of $221,000 for the fiscal year 1969-70, the fifth successive balanced Budget presented by this Liberal Administration. Mr. Speaker, on concluding this address, leading up to the traditional motion of supply, I want to highlight some of the main proposals in this Budget. We have provided for a rebate of the Province's share of the Estate Tax which will bring relief of $1.5 million in the coming year and eventually $4 million to the taxpayers of this province. We have established The Saskatchewan Indian and Metis Department with a budget of $1 million which includes $420,000 ~or implementing recommendations of the Task Force on Indian Opportunity. We have provided another $.5 million to continue the implementation of the Frazier Report. We will increase payments to hospitals under the SHSP by $6.3 million and we will raise the operating and construction grants to the University of Saskatchewan by over $5.5 million. Mr. Speaker, we have provided for a sizable expansion of courses and staff at our provincial technical and vocational centres at an additional cost of $1 million. We will introduce a new program of gravelling streets in towns and villages, and a new program of grants to cities for the installation of sewage treatment plants, all of which will cost a quarter of a million dollars in the first year. We will increase the provisions for grid road and farm access construction, equalization payments, and grid construction in Indian Reserves by almost $1 million provision is made in the Budget to increase grants to city health departments and city libraries by $90,000. We will increase the maintenance payments to foster homes by $7 per month, a total of $200,000 annually. Our Government this year will reform our probational and parole services, making them the most advanced programs in Canada, another $40,000. Mr. Speaker, agricultural grants will be increased by $130,000. And I remind this House that all of these increases, along with many other new programs included in this Budget, will be financed without any increase in direct taxes to the individual Saskatchewan taxpayer. Mr. Speaker, I am convinced that our approach this year of reviewing and challenging each program, of weighing the priorities first within departments and then throughout the entire Government, enabled us to reduce costs and still make room for new programs within a balanced budget. I believe the taxpayers, the politicians, and hopefully even the Opposition, have at long last recognized that government services can only increase at a rate which is related to the productive capacity of the economy. If they do, Mr. Speaker, they will appreciate that this is not only a progressive Budget, but a responsible Budget and they will support it.