Province Législature Session Type de discours Date du discours Locuteur Fonction du locuteur Parti politique Saskatchewan 23e 1e Discours sur le budget 28 Mars 1996 Janice MacKinnon Ministre des finances Saskatchewan New Democratic Party Thank you very much, Mr. Speaker. Mr. Speaker, there are many special guests here today and I would like to welcome them all. But I want to especially welcome five special guests. First and foremost, my husband, Peter. Would you stand please. My son Alan and his friend, Tricia Mutlow. My son William. And my very good friend and veteran of the Second World War, Mr. Bill Kinloch. Mr. Speaker, this budget is about preparing Saskatchewan for the 21st century, about planning today for prosperity and security tomorrow. With this 1996-97 budget, we step boldly toward the new century. The winds of change are sweeping around us - globalization, new technologies, the new fiscal reality. But we are confident of success because Saskatchewan people do not fear change. They welcome it. Throughout our history we have met change head on and shaped it to meet our values and beliefs. Such is our tradition. Such will be our future. Saskatchewan takes on the future from a position of strength. We are blessed to live in the best province in the best country in the world. Our quality of life is second to none. Our economy is strong and getting stronger. Last year our farmers harvested one of the best crops on record. Our mining, forestry, and manufacturing receipts are all up. People are shopping at home and buying locally, pushing up retail sales nearly 5 per cent last year. That increase is higher than the national average, and even higher than Alberta which has no sales tax. Most important, last year 10,000 more Saskatchewan people were working than in 1992. There were more full-time jobs, more jobs for women, more jobs for youth. Personal incomes are rising and so is our population. Mr. Speaker, in the 1980s, we lost a generation of young people who had to seek opportunity and hope elsewhere. Today we are keeping our young people here at home where they can live and raise their families with a renewed sense of hope and optimism. Mr. Speaker, let’s not forget we were the first Canadian province in the 1990s to balance its budget. That’s a source of strength. However, those accomplishments are only part of the story why we approach the new century with confidence and determination. We can also rely on the guidance of our enduring values: cooperation - working together to build a better future; compassion - making sure that everyone, rich or poor, has access to essential services; community - seeing beyond ourselves to embrace the greater good. That spirit of community remains strong. Our government reached out to Saskatchewan people and sought their input for this budget, and they responded - in town hall meetings, on phone lines, by the Internet, and in letters. The people of Saskatchewan told us what they expect from their government and what they hope for their communities. People told us they want jobs and opportunities, more jobs in a global economy. And that’s what this budget delivers - more jobs for more people. We start by building on our strengths. Our businesses have already proven that they can compete with the best in the world. More than half of what we produce is sold beyond our borders; a third of our jobs are tied to exports. Our new economic development strategy, Partnership For Growth, builds on this strength. This budget provides funding for STEP, the Saskatchewan Trade and Export Partnership, industry and government working together with one objective: to find and develop new trade and export opportunities for Saskatchewan people. Similarly, our farmers have shown they can develop new agricultural products for the world market. That’s another strength, Mr. Speaker, and our goal is to expand value added processing. Therefore I am pleased to announce that we will invest up to $238 million over the next four years to diversify and further strengthen agriculture. But farmers have to get their products to market. With the Crow benefit gone, they have to know that there is a reliable, sustainable transportation system for future crops and farm products. This budget prepares us for that future. It provides $125 million to upgrade and maintain our highways in 1996-97. This represents an investment of more than half a billion dollars in Saskatchewan’s highway system over the next four years. Mr. Minister, farming is an occupation with many risks. We will work with farmers to redesign our crop insurance program so that it provides the security farm families want and need - today, and into the century. Mr. Minister, a related field, agricultural biotechnology, offers tremendous potential. Saskatoon is rapidly emerging as one of the world’s foremost agricultural research centres. By the turn of the century, agricultural biotechnology is expected to generate $200 million a year in sales and create hundreds of new, highly skilled jobs. This budget supports this new high-growth sector with $7 million, to expand research facilities at Innovation Place at the University of Saskatchewan. It also helps create 125 high-tech jobs. Mr. Speaker, small businesses create the vast majority of new jobs in our province. We want to support them, but we want to do it right. Saskatchewan people told us that outright grants to business are not the way to promote growth. We agree. Rather than direct grants, we are using targeted tax incentives, proven to stimulate new investment and create jobs. But we must use our scarce resources wisely. We have to identify the most effective tax incentives to stimulate investment and growth and create jobs. That’s why we reduced taxes on manufacturing and processing, resulting in more than 3,000 new jobs in this area in 1995. And that’s why I’m pleased to announce that this reduction will be continued indefinitely. Last year we reduced the aviation fuel tax on a trial basis. The result was more jobs for Saskatchewan people and improved air service in the province. Those are the results we were looking for, Mr. Speaker, and that’s why I’m pleased to announce that this tax reduction will also be continued indefinitely. Today, I’m pleased to announce another targeted tax measure. Effective January 1, 1997, we will change the tax rules to level the playing-field for truckers working out of Saskatchewan and to stimulate more repairs and equipment sales within the province. Mr. Speaker, these are the kind of responsible, targeted tax cuts that create jobs. We’re also creating jobs by investing in Saskatchewan’s infrastructure. Government departments and Crown corporations will invest over $630 million this year to build better educational facilities for students; to upgrade health facilities; to improve our world-class telecommunications network. Investments, Mr. Speaker. Investments creating jobs today and building for tomorrow. We are keeping our promise to reforest land depleted by poor forest management practices of the past. This investment will create more jobs for students. In total, we will provide funding for 2,500 summer jobs to help young people in furthering their education. At the grass roots level, we’ll provide funding for new and existing regional economic development authorities. This highly successful approach - communities coming together to identify their strengths and coordinate their efforts  will be expanded to the North. And we will carry through on the message to cut red tape for business and create one-stop centres for people who want to start a new business. Mr. Speaker, the private sector is showing its confidence in Saskatchewan’s future. Statistics Canada recently released a report that Saskatchewan is one of only three provinces where business intends to significantly increase its investment. Both business and consumer confidence can be enhanced by easing the tax burden. Saskatchewan people told us loud and clear to hold the line on taxes. We listened; we are responding. Mr. Speaker, I am pleased to announce that this budget contains no tax increases. That’s a promise made and a promise kept. This government is also keeping its commitment to cut taxes as times improve. Last year we began to reduce the debt-reduction surtax. The second phase of this reduction will be implemented in 1996. This income tax cut enhances the fairness of the Saskatchewan tax system. The greatest benefits go to middle and low income taxpayers - over 6,000 low income earners will no longer pay income tax. As well as lowering taxes for individuals and families, the tax cut will inject $55 million a year into the Saskatchewan economy to strengthen local business and create jobs. Mr. Speaker, we are working on every front to implement our plans for jobs and prosperity - building on our strength in key growth areas like manufacturing, processing, and small business; investing millions in our infrastructure; targeting tax incentives and cutting red tape for business, and reducing taxes for families. Mr. Speaker, that’s a plan for jobs. That’s a plan for today and for a better tomorrow. Preparing our province for tomorrow also means preserving and enhancing the quality of life that makes Saskatchewan the best place in the country in which to live. Saskatchewan people told us they want the security of knowing that essential public services will be there for them. They want to know that if they are sick they can receive medical services without needing a credit card. They want to know that their children can have access to advanced education, whether they come from a rich family or a poor one. They want to know that if they fall on troubled times a social safety net will be there to catch them. But, Mr. Speaker, these vital cornerstones of our quality of life are being undermined by the federal government. We understand that the federal government has to reduce its deficit. But we do not, Mr. Speaker — we cannot — agree with the way they are going about it. In the 1996 federal budget, three-quarters of the total spending cuts were to the key areas of our quality of life here in Saskatchewan: health, post-secondary education, social programs — the very areas most important to Saskatchewan people. This year we face a $114 million cut in federal funding for these essential services. Saskatchewan people warned the federal government what these cuts would mean. The Saskatoon District Health Board, for example, wrote to Ottawa and called the federal cuts potentially devastating. The North Valley Health District cautioned the federal government that further cuts to health care would have a detrimental effect on services, people, and our medicare system as we know it. The people of Saskatchewan asked us to do our very best to shield them from the impact of these federal cuts on our core social programs. Mr. Speaker, we have listened. We are responding. This budget provides $110 million of new provincial funding to replace the 1996-97 federal cuts to our social programs. It back-fills 100 per cent of the federal cuts to social services. It back-fills 100 per cent of the federal cuts to the operating funding of our universities and federated colleges. And it back-fills 100 per cent of the federal cuts to our health care system. Mr. Speaker, these programs are the priorities of Saskatchewan people; and make no mistake about it, they are the priorities of this budget and of this government. But, Mr. Speaker, that only takes care of 1996-97. Regrettably, the cuts in federal cash transfers increase each and every year for the next four years. By 1999-2000 these federal cuts will be more than a quarter of a billion dollars a year. Mr. Speaker, this province introduced medicare to North America. We will not stand by and allow Saskatchewan to enter the 21st century with its health, education, and social system undermined by these federal cuts. That is why I am pleased to present a four-year financial plan today that will provide $242 million of new provincial funding for our social programs. For every dollar that the federal government cuts from our vital social programs, this plan puts back 96 cents. As I’ve said, there are risks; our economic circumstances may change, or the federal government may offload even more of its financial problems onto the provinces. If that happens we may have to adjust our long-term plan. But this government is absolutely committed to shielding our health and education partners from the full impact of these federal cuts. But, Mr. Speaker, this does not mean shielding them from the need for change. While providing time for our partners to prepare for new fiscal realities, we must work with them to redesign our essential services for the 21st century. To change our health, education, and social services to meet the new demands of the new century. We’re already seeing the benefits of our work to renew Saskatchewan’s health system over the past four years. More illness-prevention and support services are available at home and in the community. In response to the appeal by health boards for stable funding, we will maintain total funding for district health boards at current levels for 1996-97 and 1997-98. And we will work with our health partners to find ways to maintain that funding level right through to the year 1999-2000. But, Mr. Speaker, we must continue finding new and better ways to deliver primary health services so that they can be sustained into the new century. We must continue to enhance home- and community-based services and build a client-centred health system to improve the health and well-being of Saskatchewan people. Health reform provides the vision. This budget provides the stability of funding to keep Saskatchewan a health care leader right into the 21st century. Mr. Speaker, compassion is a defining feature of this province. Working together, we can redesign our social safety nets to make them effective and sustainable. Working together, we can ensure that the most vulnerable members of our society are protected while we help able-bodied men and women seek the independence and the security that comes from a job. We want to help people move from welfare to work. We want to encourage young people to get the education and the training they need to prepare them for the future. This budget maintains funding for social assistance at current levels for 1996-97 and provides increased funding for children in need. It also provides $500,000, as promised, to help ensure that child-care workers are paid a fair and decent wage. As long as we’re fashioning our social safety net, we are committed to changing our post-secondary education and training system. In the words of the University of Saskatchewan Students’ Union: the path is clear. We must reinvent our universities. The time has come for real change. People want a flexible and accessible post-secondary system, one where there is more integration among programs or sharing of resources. They want duplication reduced, administration cut, and more resources directed to programs. While this government can maintain operating funding for universities and federated colleges this year, the increasing federal cuts will make it necessary to reduce funding by $5 million in 1997-98, and a further $5 million in 1998-99. This still means that this government is providing $75 million of new provincial funding over the next four years. Mr. Speaker, that’s a commitment to post-secondary education. The federal government is also withdrawing its support for skills training in Saskatchewan. This province cannot ignore the emerging 21st century demands for highly skilled workers. We will build a made-in-Saskatchewan skills training network to prepare people for the new technological workplace. The Minister of Post-Secondary Education and Skills Training will lead and coordinate the new training strategy. In total this budget provides $91 million to train Saskatchewan people for new and better jobs. This funding includes $5 million to continue upgrading and employment opportunities through the very successful JobStart program. Mr. Speaker, the best foundation for higher education and skills training is a relevant, high quality education system from kindergarten to grade 12. Therefore I am pleased to announce that foundation operating grants for school divisions will increase by $2 million in 1996-97, and a further $900,000 in 1997-98. Mr. Speaker, Saskatchewan people told us to find administrative savings while ensuring that our children continue to receive quality education. We will work with our partners in education to achieve savings of $7 million annually in 1998-99. The Minister of Education will consult with school divisions, educators, and parents, on how best to achieve these savings. Once again we are giving our partners as much time as possible to plan and prepare for change. But we must continue to renew and revitalize each of these essential areas. Mr. Speaker, the provincial government has also started to restructure itself. To free up money to protect the cornerstones of our quality of life, we will continue to streamline our operations. Our ongoing strategy includes: cutting administrative costs; eliminating duplication and overlap; and delivering services better. We took a fine-tooth comb to the administrative structure of government. We knew we could reduce layers of management and consolidate operations while still maintaining important services. For example, we are streamlining operations in the Department of Highways and Transportation to save $6 million a year. That’s 6 million more dollars to be used to build and preserve roads. We found another $7 million in administrative savings in the Department of Health. That’s 7 million more dollars to be used each and every year to help maintain funding for health districts. We also looked to reduce duplication of services. For example, while the government has to set the rules and guidelines for student loans, financial institutions can write and manage these loans. Therefore, a chartered bank will provide loans directly to students beginning August 1 to save taxpayers $6 million a year. That’s 6 million more dollars to replace federal funding cuts to post-secondary education. Farmers, like students, can also take advantage of other borrowing options. As one farmer from McLean asked: why duplicate the Farm Credit Corporation, a federal agency which lends money to farmers? Mr. Speaker, we agree and we are winding down the Agricultural Credit Corporation of Saskatchewan to save taxpayers more than $3 million a year. Ending duplication is one way to save money. Delivering services better is another. For example, consolidating all small vehicle safety and registration in SGI (Saskatchewan Government Insurance) will save $1.4 million a year. Saskatchewan Crop Insurance is consolidating its delivery and marketing systems to save $5 million a year. These and other changes throughout government will result in savings of more than $50 million in 1996-97. And that’s not just for this year. That’s savings of $50 million every year thereafter. Overall, the largest single reduction in this budget is to government operations. And these savings will go to protecting our health, our post-secondary, and our social programs, from federal cut-backs. Restructuring and streamlining the provincial government will eliminate 582 positions, although the actual job loss will be significantly less. We will manage the associated job losses with sensitivity and compassion through the use of early retirement, job-sharing, and other measures. Mr. Speaker, people told us to reduce the cost of government at all levels and we have responded. We have worked hard to cut administration, eliminate duplication and overlap, and find ways to deliver services better. We believe all levels of government have to consider these kinds of common-sense changes to make tax dollars go further. Mr. Speaker, this government is pleased that the federal government is responding to the request of western provinces to study the creation of a national tax collection agency to coordinate the collection of federal and provincial taxes. Such an agency would reduce the cost of collecting taxes and further cut red tape for business. As we prepare to enter the next century, municipal governments are also taking a good, hard look at their administrative structures. Saskatchewan’s municipal governments were established in the early 1900s as part of a new and developing province. Times have changed, and yet there has been no fundamental change to the structure and responsibilities of municipal government. In the meantime, taxpayers are demanding more relevant services, fairer taxation, and more efficient government. Mr. Speaker, we can maintain revenue-sharing grants at their 1995-96 level for l996-97, as promised; however, because the province must pay a larger share of the costs for health, post-secondary education, and social services due to federal cuts, revenue-sharing grants will be reduced by $20 million for 1997-98. Beyond this, the province and municipalities must deal with a number of fundamental issues. The Minister of Municipal Government is looking forward to working with municipalities on future fiscal arrangements, provincial levies, and funding for key roads and infrastructure. While we realize our partners face some difficult choices, it is important to remember that sound fiscal management is a key to protecting core programs and services. Mr. Speaker, sound financial management is already helping this province meet the fiscal realities of the 21st century. Through the cooperative efforts of Saskatchewan people this government balanced the budget in 1994-95. That was the first balanced budget in more than a decade. Meanwhile, 1995-96 brought its own special challenges - forest fires, floods, and dramatic reductions in federal equalization payments. Despite these financial difficulties, I’m pleased to announce that we will again balance the budget in 1995. And our new four-year financial plan presents four more balanced budgets. Sustainable balanced budgets - little more than a dream just a few years ago, once again the norm. It’s important to remind ourselves how we are going to balance our budgets in the future. It will not be through tax increases. It will not be by slashing our key social programs. We will achieve our goal by restructuring and streamlining government to lower our operating costs. This year we will reduce government spending by $230 million compared to 1995-96. That means we will save more than $600,000 a day, each and every day of the year. Saskatchewan people also asked us to cut costs by paying down the provincial debt and reducing interest charges. In 1995-96, interest payments totalled $851 million. Just imagine, if we didn’t have those interest costs we could eliminate the sales tax and still have money left over. So we have to get the interest costs down. That’s why the Government of Saskatchewan recently sold a significant portion of its ownership in Cameco Corporation. The net proceeds from selling Cameco shares will be used exclusively to pay down debt and reduce interest costs. This and other measures will allow us to reduce the annual interest costs on government-purpose debt by $100 million by 1999-2000. Mr. Speaker, by the year 2000 the province’s debt will be $2.4 billion lower than it was in 1995. This reduction will bring the total debt load from 68 per cent of the province’s gross domestic product down to 44 per cent. No other provincial government has reduced its debt so far so fast. Mr. Speaker, we are cutting government spending, we are balancing the budget, and we are paying down the debt while preserving the cornerstones of our quality of life. That’s the Saskatchewan formula for security and prosperity now and into the new century. That’s the formula that gives Saskatchewan people the freedom to make choices. You saw that freedom in action this year. Because we had already balanced the budget, Saskatchewan people could choose the best way to handle the federal funding cuts to our social programs. We had the freedom to choose to devote millions of dollars in new provincial funding to shield our vital services from federal cuts. As we look ahead, our new four-year financial plan gives Saskatchewan people continued freedom to control their future and to make choices. There are trade-offs and we must decide upon these together. We have to decide whether to reduce taxes by making further spending reductions, or by paying down the debt more slowly or perhaps by selling other industrial assets as we did with our Cameco shares. Just as the government consulted Saskatchewan people about ways to manage federal funding cuts, we will also ask them how best to achieve tax reductions. But whatever choice we make, sound financial management will give us the freedom to choose our own course. Mr. Speaker, this budget is about change and about the freedom to deal with change according to our Saskatchewan values. It prepares Saskatchewan for the new century by delivering on our promises. It builds prosperity and jobs for the future. It safeguards our health, post-secondary education, and social programs. It streamlines government to cut costs. And most importantly, it gives us and our children a unique privilege. It gives us all the financial freedom to decide and control our own future. That means Saskatchewan people can look forward to the 21st century with a sense of confidence and security. Confidence because their future promises more jobs, balanced budgets, reduced taxes, and less public debt. Security because the cornerstones of our quality of life - our health, education, and social programs - will be there for them, their children, and their grandchildren. Mr. Speaker, in Saskatchewan we have built a society where people and government work together to maintain our shared values of community, cooperation, and compassion. Our challenges will not divide us; our dreams must unite us. Some governments believe that all they need to do to meet fiscal challenges is to get out of the way. Mr. Speaker, Saskatchewan people believe the government can lead the way. The 1996-97 budget prepares us for the 21st century in which Saskatchewan will continue to be the best province in the best country in the whole world, in which to live. Mr. Speaker, I move, seconded by the Premier: That this Assembly do now resolve itself into the Committee of Finance.