Province
Législature
Session
Type de discours
Date du discours
Locuteur
Fonction du locuteur
Parti politique
Saskatchewan
22e
4e
Discours sur le budget
17 Février 1994
Janice MacKinnon
Ministre des Fnances
Saskatchewan New Democratic Party
Thank you, Mr. Speaker. 
Mr. Speaker, I know there are many special guests in the legislature today. There are four whom I would like to mention specifically. First, my husband, Peter, who is the dean of law at the University of Saskatchewan; my son Alan, who is a student in grade 9; my son William, who is a grade 6 student; and my long-time neighbour and friend, Bill Kinloch, who is also a veteran of the Second World War. 
Mr. Speaker, I'm pleased to present through this Assembly, to the people of Saskatchewan, a budget that delivers the promise -- the promise to meet our deficit reduction targets, the promise of no major program cuts, and the promise of no new taxes. 
Last year our government presented a balanced budget plan; a plan which contained all the major revenue and expense measures needed to balance the budget by 1996-97. A plan which is achievable because it's based on realistic economic and financial forecasts, and a plan which is on track. 
Today I'm pleased to report that the 1993-94 budget deficit is $294 million -- $2 million less than forecast in our balanced budget plan, 50 per cent less than last year. Saskatchewan now has the lowest per capita deficit in all of Canada. 
I'm also pleased to report that the budget deficit for 1994-95 is $189 million, another 36 per cent reduction. This is the lowest budget deficit in Saskatchewan since 1982. 
Our success rests with the people of this province who understood the need, realized that difficult choices were required, and were determined to make the sacrifices necessary to ensure the province's financial future. 
Deficit reduction is not easy. I understand that. But as I've travelled around this province and listened to Saskatchewan people, I've been impressed with their spirit, their willingness to pull together and keep their eye on the long-term benefits of difficult choices. This budget shows that as we gradually turn this province around, Saskatchewan people can begin to see the benefits of their choices. 
Meeting our targets means freedom -- the freedom to invest more in jobs. I understand why the number one concern of Saskatchewan people today is jobs. This budget shows that jobs are also our number one priority. 
Together we have made tremendous gains. When this government came to office we inherited the largest per capita debt of any province in Canada -- $60,000 for a family of four. We faced a projected deficit of $1.3 billion. 
Three years later our deficit is $189 million. That's a turnaround of more than a billion dollars. No other government in Canada has achieved such a turnaround. 
With the support of Saskatchewan people we took three basic steps that involved reducing the cost of government administration at every turn; renegotiating the previous government's megaprojects; and making the expenditure of public funds more open and accountable to ensure that no government will ever be able to mismanage tax dollars again. 
First let me talk about cutting the cost of government. Mr. Speaker, this government led by example. Since coming to office we have reduced cabinet ministers' salaries by 5 per cent; cut MLA (Member of the Legislative Assembly) communication allowances; and introduced legislation to cut the number of MLAs in this legislature by more than 12 per cent. 
Last year almost $18 million was saved by making common sense changes to the day-to-day operations of government. For example, instead of sending out brand-new health cards to all Saskatchewan residents, we sent a sticker so that people could keep using the cards they already had. This simple measure saved taxpayers $200,000. This is the kind of practical change we are making every day throughout this government. 
By cutting the cost of administering government, we can redirect those savings to higher priority areas like jobs. Again this year we've worked hard at every level to reduce administrative costs. For example, simply using highway signs two years longer before we replace them has led to savings of $400,000 a year. 
By making common sense changes like this we will spend $12 million less this year on administering the Government of Saskatchewan. 
At the national level, we're prepared to work with the new federal government and all provinces to reduce the cost of delivering public services while protecting the quality of those services. In short, we're working on every front to cut the cost of government. 
Our commitment to streamlining our administration is ongoing and we will continue to consult with you, the people of this province, about ways to do this. 
Mr. Speaker, that's also why we have renegotiated so many of the previous government's megaprojects. During the 1980s one and a half billion dollars were committed in the form of equity, loans, and loan guarantees to such projects. 
We came to office on the promise to renegotiate these deals wherever possible, to restore the public interest. We have delivered that promise. 
So far, we've reduced taxpayers exposure by over $400 million and we will continue to search for more ways to reduce these financial risks. 
We also promised to make government more open and accountable to the people we were elected to serve. We have opened the meetings of the Board of Internal Economy to the public and will appoint an independent commission to review the salaries and benefits paid to MLAs. 
We provide the public with audited financial reports for each and every Crown corporation, agency, board, and commission. 
We provide the public with a mid-year financial update to tell them whether or not we're meeting our budget targets. We provide the public with summary financial statements to give taxpayers the complete picture of our financial position. 
The auditor in his annual report said this: 
The Government moved from providing what the Financial Management Review Commission viewed as the weakest and least useful financial statements to providing one of the most useful financial statements issued by a senior government in Canada. 
We are delivering our promise of more open and accountable government and we will keep delivering that promise. 
Reducing the cost of government, renegotiating the megaprojects, making government more open and accountable, are the steps we have taken which have helped turn our province's finances around. Although we've made significant progress, there are still risks: one, a legacy of the past; the other, an uncertainty about the future. 
While we have reduced taxpayers' exposure for the previous government's megaprojects, there is still the potential for problems. Additional write-downs may be required so that our accounts continue to reflect the true value of these assets. But these will be one-time problems which will not prevent us from delivering our promise of a balanced budget by 1996-97. 
The other major risk rests with the federal government and the potential for further offloading. To date we have had some success with the new federal government in our efforts to convince them that offloading simply doesn't work to solve the Canadian debt problem. For example, a revised equalization formula has been agreed to for the next five years. The formula is more fair to Saskatchewan and will provide our province with a more secure source of revenue. 
While this provides some stability in one of our major transfer payments, I have to say that offloading remains the biggest single risk we face in our effort to balance the budget. For example, a 5 per cent reduction in federal funding for health and post-secondary education alone would cost $37 million a year. That's the equivalent of a 3 cent per litre increase to the provincial gas tax and more than all of our funding in any one year for student aid. 
There are risks. But despite these risks, we are determined to maintain the integrity of our balanced budget plan. And we'll do it the way we've been doing it from day one -- by controlling government spending, by managing better, and by setting the right priorities. 
Today in Saskatchewan that means jobs. Our priority is jobs. Our plan is to act on all fronts to promote the economic recovery which is occurring in this province. 
Mr. Speaker, the most recent report from the Conference Board of Canada estimated that our economy grew at a faster rate in 1993 than the national economy. In the first 11 months of last year, manufacturing shipments rose by 6 per cent, retail sales went up by 5.7 per cent, and wholesale trade increased by 10.4 per cent. The forecasts for the future are also positive. 
External agencies have projected that there will be consistent, steady growth in our economy. But in spite of this growth, the number of new job opportunities has not been as great as either the government or Saskatchewan people had hoped. Now is the time to strengthen our investment in jobs. Now is the time to act to help the economic recovery take hold. 
In this budget there are small, targeted increases in spending designed to support our strategy for economic development and jobs. 
Our economic development plan, Partnership for Renewal, involves focusing on our proven strengths through a revised royalty structure for the oil and gas industry to encourage new investment; a north-west forest renewal partnership plan with funding of $226,000 in '94-95 and $104,000 in '95-96, to support reforestation in north-west Saskatchewan; the elimination of the tax on direct agents to promote processing and manufacturing; the continuation of the planned reduction in the small business income tax rate. Mr. Speaker, over four years we will have reduced the small business tax rate by 20 per cent. We have done this because co-ops and small businesses create most of the jobs in this province. 
Mr. Speaker, jobs are also the reason we're participating in the federal-provincial infrastructure program. By redirecting or accelerating funding, we can undertake projects sooner than previously planned and at less cost to Saskatchewan taxpayers. More than $173 million will be spent by the three levels of government, federal, provincial and local, over the next two years to renew our infrastructure and to create jobs. 
I'm pleased to announce that Crown corporations and the government will spend over $700 million on needed capital projects in 1994-95. This is almost $140 million more than was spent last year. 
While this will help to create jobs for the short term, our economic development plan means jobs and opportunities for the long term. It means exporting more Saskatchewan products and services to the world market-place. This budget will help to do that with total funding of $6 million this year for the new Saskatchewan Opportunities Corporation. 
The corporation will provide equity financing, loans, and guarantees to Saskatchewan businesses that are geared to the export market. It is designed not only to promote Saskatchewan business, but also to protect Saskatchewan taxpayers. 
There will be strict due diligence and a 25 per cent loan loss provision to ensure that there are no unexpected drains on our future tax dollars. Mr. Speaker, northern Saskatchewan is a region which deserves special attention for jobs and economic development. Despite its rich resource base, this region has high levels of unemployment, and experiences the many social problems which unemployment creates. Restoring hope to Northerners will take many years. I understand this. But we are determined to make progress. 
Mr. Speaker, I'm pleased to announce that this budget redirects over $4 million to a strategy for economic renewal in northern Saskatchewan. 
This strategy will focus on the unique strengths of the North by creating jobs and opportunities through the following measures: assisting local people to process and market products grown or produced in northern Saskatchewan; helping local businesses to supply northern mines with the goods and services they require; providing training programs for northern people so that they can take advantage of these new opportunities.
Northern people will be directly involved in the planning and priority setting. This investment in northern Saskatchewan means jobs for Northerners today and hope for Northerners tomorrow. 
Any strategy to create long-term jobs in this province means making an investment today in agriculture. We have recently released Agriculture 2000, a strategy which emphasizes stability, growth, and diversification in our most important industry. 
Saskatchewan farmers have already made major efforts to diversify. For example, in the last crop year there was nearly a 70 per cent increase in specialty crops grown. Our strategy aims to foster diversification and to enhance opportunities to add value to Saskatchewan's primary products. 
Mr. Speaker, I'm pleased to announce this budget provides funding for the new agri-food equity fund. Over the next four years $20 million will be invested in value added projects to strengthen rural Saskatchewan by providing new markets for the products of Saskatchewan farmers, new exports for the Saskatchewan economy, and new jobs for Saskatchewan people. 
I'm also pleased to announce the introduction of a program to help promote Saskatchewan's beef industry. The beef industry development fund is being established in cooperation with the federal government. This we will invest $1.4 million to improve products and to enhance markets for the beef industry. 
We're also working with Saskatchewan farmers and the federal government to develop a new whole-farm safety net program. 
The Saskatchewan Farm Support Review Committee has recently released a report on safety net design. This report will be the basis for discussions with other provinces and the federal government over the coming months. 
While these discussion are under way, we need to act now within our limited financial resources to enhance farmer security. Accordingly crop insurance, a key program for farmers, is being improved. Spot loss hail coverage will be introduced. 
I'm pleased to announce that for the first time farmers will be able to purchase whole-farm crop insurance. Rather than purchasing insurance for each crop separately, farmers can now insure all their crop production in one package and as a result pay less for their insurance. 
We are also introducing a special diversification option for minor crops currently not covered by crop insurance. This option will contribute directly to the diversification efforts of Saskatchewan farmers. Agriculture 2000 is a strategy that provides the stability Saskatchewan farm families need now as it helps them build for the future. 
Mr. Speaker, self-reliant families are fundamental to our quality of life. The 1994-95 budget provides over $4.4 million through Saskatchewan's action plan for children for measures to support children, families, and communities. 
Consultation for this action plan began in 1992. Since then more than 1,200 people and organizations have been involved in its development. Community forums have been held around the province with school divisions, health boards, municipal governments, and service organizations to assess local needs and resources. 
The plan brings communities and government together to improve the well-being of children by strengthening their families and the communities in which they live. The guiding principles of the plan are prevention and support. Mr. Speaker, by taking preventative action now to avoid problems before they occur, we not only better protect our children, we also reduce the need for higher cost services later. 
For this reason, we've established pre-schools in Prince Albert and La Loche for children who we know are at risk of developing social, education, or health problems. We are establishing a children's advocate in the Office of the provincial Ombudsman to ensure that children's interests are protected and their voices heard. 
We're also enhancing crime prevention programs at the community level. And for the third year in a row, we are providing more infant care services for teenage parents attending high school. Evidence has shown that young parents with access to infant care services remain in school longer, thereby increasing their opportunities for economic independence in the future. 
Mr. Speaker, while prevention is a key element in building stronger families and maintaining our quality of life, we must also support families facing crisis and breakdown. 
Family violence is a growing problem in our society. Far too many women are the victims of violence and many simply have nowhere to turn. We are providing small, targeted funding increases to support services for women who have been the victims of violence, to help them begin to rebuild their lives. 
Mr. Speaker, in this, the International Year of the Family, it is appropriate that we respond to the broad range of challenges facing Saskatchewan families. More needs to be done, I understand this. However, despite our financial constraints, we have taken small but significant steps to show our commitment to supporting and maintaining strong, stable families. 
We are doing it by working with communities to plan and provide for both prevention and support that will help our children when they need it. 
Community-based decisions and community action must be the foundation of the social programs of the 1990s, whether in family support services or in health services. Our wellness reforms are based on the concept of community decision making. Local people are the best ones equipped to make decisions for their communities. 
This year marks an important landmark in community decision making. For the first time, funding will be paid directly to district health boards in the province. These district health boards will be able to plan and deliver health services that meet local needs and they will be able to offer a broader range of services than was available in the past. In this area, as in others, we can begin to see some benefits from our progress to date. 
Some of the savings from decreasing our dependence on institutions can now be redirected to health services in rural Saskatchewan. I'm pleased to announce the introduction of a $10 million rural health initiatives fund to provide for the expansion of community-based services in rural Saskatchewan. 
Health boards are now in the process of assessing the health needs of the people in their districts. This fund will help ensure that rural health boards meet these locally determined needs through such measures as enhanced emergency services, home-based palliative care, or disease and accident prevention. 
Mr. Speaker, our health reforms are based on wellness. They shift the emphasis from merely treating illness to preventing it. Cancer devastates many families and part of the hope in dealing with this disease lies in prevention. Breast cancer strikes one woman in eleven and mammography is a vital preventative procedure. I am pleased to announce that the breast cancer screening program will be now available on a province-wide basis for the first time. 
These enhancements in health care are some of the benefits of the difficult choices Saskatchewan people have made in the past two years. 
These choices mean a stable financial situation and a growing economy. Our economy is showing signs of positive growth and government revenue for this year will be $4.8 billion, an increase of over 3.2 per cent. The increased revenue will be realized without any increase in taxes. No increase in the gas tax, no increase in personal income tax, no increase in the sales tax, and no base broadening. 
Total provincial government expenses for this year will be $5 billion, a modest increase of less than 1 per cent. The increase is less than the forecasted growth in the Saskatchewan economy and less than the estimated growth in our revenue for this year. It should also be emphasized that this increased spending is due largely to our commitment to jobs. 
Because we are on target with our balanced budget plan, I can confirm today the previously announced third-party funding for 1994-95. Barring any unforeseen circumstances, this will be the last year the third parties will have to make do with less. 
Third parties, I know, have been our partners in deficit reduction. They too have had to make difficult choices and I want to sincerely thank them for their cooperation. 
Mr. Speaker, I'm very pleased to announce that for 1995-96 there will be no further reductions in revenue-sharing grants for local and northern governments, no further reduction in funding for local school boards, universities, regional and federated colleges and SIAST (Saskatchewan Institute of Applied Science and Technology), and an increase of 1.6 per cent for district health boards. 
Mr. Speaker, I've presented through this Assembly to the people of Saskatchewan the first budget of this administration in which we can see some of the benefits of renewed financial stability; the first budget that allows us to be guided more by the priorities of the people and less by the dictates of an inherited financial crisis; the first budget that gives us the freedom to invest more in jobs and opportunities for Saskatchewan people. Jobs can be the priority today because Saskatchewan people made difficult choices to get us to this point. 
As we've always said, Mr. Speaker, balancing the budget is not an end in itself. Our goal is to ensure that we can sustain a high quality of life here for future generations. As provinces around us struggle to get their financial houses in order, we can take some pride and feel some security in knowing how far we've progressed in restoring our financial house. 
Today we are on the road to recovery and we're on that road because of the people of this province. 
Mr. Speaker, it is because of Saskatchewan people that the 1994-95 budget delivers the promise of no major program cuts and no tax increases, delivers the promise to meet our deficit targets and balance the budget in two years' time, delivers the promise to make jobs the top priority. 
Mr. Speaker, in conclusion, I ask my colleagues to rise with me and thank the people of the province. 
Mr. Speaker, I move, seconded by the hon. member from Riversdale: 
That this Assembly do now resolve itself into the Committee of Finance.