Province Législature Session Type de discours Date du discours Locuteur Fonction du locuteur Parti politique Manitoba 30e 1ère Discours sur le Budget 21 mars 1974 Saul Cherniack Ministre des Finances New Democratic Party of Manitoba Mr. Speaker, I have been here for a fair amount of time. I follow precedent which is more recent and that is that the motion comes at the end. So I intend to speak first. Mr. Speaker, four and a half year sago, I had the privilege of presenting our government's first budget to this Assembly. That budget began a process of economic and fiscal reform which helped the people of Manitoba realize unparalleled returns from our province's development in the years that followed. In June of 1969, the citizens of this province entrusted the New Democratic Party with the responsibility of bringing a new kind of government to Manitoba - a government fully committed to working for real political, social and economic equality for the average wage-earner, the old-age pensioner, the widow with small children the local businessman, the farmer, and the residents of the north. The people of Manitoba wanted a government that would not be afraid to challenge the status quo and to implement basic reforms - even though such reforms would be unpopular with the wealthy and the influential, and were certain to be opposed by those with a vested interest in preventing change. Last June, Manitobans reaffirmed their support for our policies of social and economic justice, and gave our government a renewed mandate to pursue our program of reform – by an increased majority and popular vote. Our budget for 1974/75 fiscal year has been formulated in the context of this mandate. It is a budget which relates new program initiatives and taxation reforms to the requirements of our citizens for new and improved services - and to their ability to pay for these services not to abstract theories about the appropriate size of the public sector, or the desirability of "incentives" for a small number of wealthy individuals or corporations. Our government is proud of the substantial progress achieved by the people of Manitoba in the last few years, but freely recognizes that greater efforts will be necessary in the future, to rectify many inequities which still characterize our society. The new policy directions which our government has already introduced will ensure a firm foundation upon which to base these efforts. The budgetary proposals I will place before the House tonight will build on this foundation and strengthen it. In 1973, our economy expanded at a pace which outdistanced even our most optimistic forecasts. Although the data are not yet complete, virtually every indicator thus far suggests that 1973 war a "Boom Year" in the truest sense. We now estimate that the total value of goods and services produced in Manitoba in 1973 reached an all-time high of close to $5.2 billion - an increase of some 15.4 percent over the total recorded in 1972. When the effects of inflation are netted out, it appears that the real growth in our economy's output last year was at least 8. 5 percent compared to 7.1 percent for Canada as a whole. Manitoba's gross provincial product in 1973 was nearly 50 percent greater than total the output in the year we took office. For the third year in a row, growth in production in our province has exceeded the national rate - both in current and in constant dollars. For the record, and for those who lay great stress on statistics, I feel I should also list the year-over-year percentage increases in some of the major sectors of the Manitoba economy between 1972 and 1973: Total personal income - up over 14 percent. Personal income per capita - up over 14 percent. "After Tax" income per capita - up over 14 percent. Value of agricultural output - up nearly 90 percent. Value of mineral resource output - up about 30 percent. Value of manufacturing shipments - up more than 20 percent. Total retail trade - up around 14 percent. New capital investment - up about 16 percent. These are but a few of the areas where new records have been set. There are more and a detailed set of economic statistics will be appended to the text of this address. We believe, of course, that individual growth measurements should not be regarded in isolation as self-evident indicators of economic advancement. It cannot be assumed automatically that favourable aggregate statistics mean that everyone in our province has benefited equitably from the gains which have been recorded. But, no one can deny our progress toward that goal. Despite nation-wide problems, it is clear that our economy is growing increasingly stronger and more balanced. Although we should not ignore the impact of national inflationary pressures, we must also recognize Manitoba's gains compared to other regions in Canada. Our jobless totals and the rate of increase in prices have remained well below the national average. During 1973, a year in which net out migration dropped, our province's average unemployment rate - 3.9 percent was the second lowest of any province in Canada, and was well below the national average of 5.6 percent. Similarly, the increase in the "All Items" consumer price index for Winnipeg from December, 1972 to December, 1973 was the second lowest recorded for any major city in Canada. Well inflation and unemployment are national problems. This is obvious from the statistics I referred to earlier. It is also clear that some of Canada's cost of living difficulties reflect trends in the United States and elsewhere. If full employment and a reasonable degree of price stability are to be achieved throughout this country in the foreseeable future, major new initiatives will be required at the federal level. Without such initiatives by the federal government, all any single province can do is try to offset the negative impact of rising prices and high levels of unemployment, as best it can, within the limits of its jurisdictional authority and its fiscal ability. Although Manitoba's budgetary capacity is comparatively small, our government has done much in the past few years to deal with inflation and unemployment. In fact, we have probably done significantly more, in relation to our size, than any other province in Canada for example: The elimination of Health Insurance premiums, giving families a tax cut worth $200 a year; Our Property Tax Credit Program, with benefits up to another $200 a year; Our new $200 guaranteed minimum monthly income for those over 65; The provision of insured nursing home care; The pharmacare program for the elderly; The drug substitution program to hold down or reduce prescription drug costs; and Our massive efforts to provide low-cost housing for those who need it. We have also implemented a number of major new employment and training programs, including The Provincial Employment Program, encompassing Pensioners' Home Repairs, plus Special Community, Northern and Native Employment Measures; The Student Temporary Employment Program; Special Municipal Loans; Accelerated capital projects; The Northern Manpower Corps; The New Careers Program; and Various work activity projects. The positive results of all these measures are evident in the rapid increases in per capita disposable income and the relatively low unemployment figures to which I referred earlier. It is critically important that our government sustain and strengthen these expansionary policy thrusts. And attached, as an appendix to tonight's budget, will be a statement I made two months ago at a Federal-Provincial Conference of Finance Ministers in Ottawa in which I expressed serious concern about the possible impact of current economic pressures on our citizens. I suggested that the Federal Government consider the effectiveness of the fiscal and economic policy measures introduced in Manitoba in the past few years and adopt similar initiatives on a Canada-wide basis. I also pointed out the recent dramatic increases in corporate profits in this country in relation to increases in the cost of living. Between 1972 and 1973, the rate of growth in corporation profits before taxes was the highest in some 25 years, roughly 37 percent following increases of 21 percent and 16 percent in the two previous years. These increases account for a substantial portion of the inflationary pressures in Canada today. And yet, the Federal Government is continuing to reduce corporate taxes every year on a regular schedule which started in 1972. We estimate that current corporate tax advantages total about $2 billion a year in this country. MR. CHERNIACK: The honourable member - I interrupt my speech to recognize that the honourable member seems to have one important thing on his mind. I'll leave it on his mind. In addition, Mr. Speaker, I called for early implementation of a proper low-designed and enforced combines policy to end profiteering, as well as for some form of increased tax on profits resulting from monopolistic practices. This would hold down prices and ensure that the corporate sector of the economy would begin to bear a fair share of the cost of financing public services in Canada. I also joined other provincial finance ministers in requesting an immediate inquiry into oil company prices and profits. In recent years, our government has advocated selective controls as a means of dealing with inflation, along with subsidization where necessary. This type of approach should include adequate home mortgage funds at reasonable interest rates, and extension of the two-price system now in effect for oil to some other primary products. There is an obvious need, as well, for the Federal Government to take effective steps to regulate advertising and packaging because of their influence on prices in general, and on food prices in particular. Mr. Speaker, although there is still over a week remaining before the end of the 1973-74 fiscal year, and approximately a month left until the accounts are closed formally, it is now clear that the government will end the year with a substantial revenue surplus. It appears that approximately $32 million of the total surplus will represent recent, and yet-to-be confirmed recalculations by the Federal Government in respect of certain transfer payments - including at least $25 million in equalization adjustments for the current and previous years. The balance of the surplus will be a direct result of the buoyancy of our province's economy in the past year. Under the authority provided by the Financial Administration Act, an amount of $ 32.5 million from the surplus will be carried forward and included with current revenues for the 1974/75 fiscal year, as compared with a carry-forward of $42 million last year. In addition, surplus funds will be used to develop a special multi-purpose housing program, whose primary objectives are: To assist in the assembly of land for housing in major urban areas and larger rural communities; To enable the Manitoba Housing and Renewal Corporation to service land for residential and related purposes; and To provide mortgage financing for new and existing housing in smaller rural and remote communities, which are un-serviced or partially- serviced, and in which the CMHC will not provide loan funds. I am howdy to announce that $20 million from the 1973/74 surplus will be allocated to a newly-created land servicing and home mortgage fund for this purpose. Further details will be made available by the Minister responsible for the Housing and Renewal Corporation. Any residual surplus revenues will be set aside as a contingency reserve in accordance with the 'Special Loans and General Emergency found Act. Mr. Speaker, the members of this Assembly have already begun to consider our government's main expenditure proposals for the fiscal period beginning April 1, 1974. Since most program plans have not been reviewed in detail, I wish to draw attention to some of the major initiatives in the main estimates, including: New and expanded stay option programs for agricultural producers; Additional funds for expanded legal aid services; Further support for universities to keep tuition costs down; Increased assistance on an equalized basis for local school divisions and their taxpayers, including a reduction in the foundation levy on farm and residential property to 3 mills; and A continuation of our highly- successful property tax credit program, which will cost $42 million in 1974/75 MR. CHERNIACK: In the past few months, we have been able to secure the first detailed statistics concerning the operation of the Property Tax Credit Program in its first year, when it applied only to school taxes. These dates have been summarized in a technical paper as an appendix to my address. They reveal that about 2 out of 5, or 40 percent, of homeowners and tenants in our province had their 1972 school taxes completely offset by their 1972 tax credits. (Applause) Nearly half of those Manitobans who received credits either obtained benefits of $140.00 or had the full amount of their school taxes erased. MR. CHERNIACK: About 84 percent of pensioners, some 62 percent of farmers who claimed credits received maximum benefits of $140 or had their entire school property tax burdens offset. Of course, higher credit benefits of up to $200 in 1973 and 1974 are providing even greater school and general property tax relief. Last year, Manitoba became the fir st province in Canada to provide direct income tax revenue sharing for municipalities. The amount of the revenue sharing grants was set at five percent of income taxes at current rates in the fiscal year ending in the year for which the grants apply. Under this formula, the 1974 interim grant payments to municipalities will be $10. 61 per capita. In 1975, we estimate that the interim payments to municipalities will be about $12. 60 per capita, subject to an adjustment for the previous year based on actual revenue totals. And in addition to these increased unconditional grants for municipalities, the estimates tabled in February also contain an allowance of some $1. 8 million for special experimental urban transit projects such as: Dial-a-Bus, electrically-operated vehicles, and heated bus shelters. The Health and Social Development Estimates provide for our government's plan to "Index" social allowance benefits in line with increases in the cost of living - a basic reform in our income security system. We have recently announced the agreement between our government and the Government of Canada with respect to the jobs guaranteed annual income experiment to be carried out in Manitoba during the next few years. The project will cost about $17 million, of which the Federal Government will pay 75 percent. It is now acknowledged that our experimental program is perhaps the best-designed of any yet undertaken in North America. The "Mincome Manitoba" experiment will make possible the evaluation of a number of income support and work incentive alternatives, and will also provide valuable insights into the impact of both federal and provincial fiscal policies, including our current system of taxation. The estimates provide $4 million for the experiment in 1974/75. At the conclusion of my address tonight, I will table the Government's estimates of current revenues for the fiscal year commencing April 1, 1974. As members are aware, the energy situation has led to a degree of uncertainty throughout Canada. No decision has yet been made with respect to oil and natural gas prices for the period following March 31. In addition, no decision has been made as to the allocation of any increased returns from higher prices later in 1974. And, perhaps most important of all from the standpoint of our budgetary position, no decision has been made concerning the treatment under the national equalization formula of any increased returns which producing provinces may realize in the coming year and those which follow. Another area of concern relates to our income tax collection arrangements with the Federal Government. Recent federal income tax changes have reduced provincial revenues substantially - so much so that Ottawa has agreed to compensate us for a portion of these losses up to the end of 1976 and this explains the "Income Tax Revenue Guarantee" item in the fiscal arrangements section of the estimates. Unfortunately, the federal compensation arrangements will not cover the very serious revenue shortfalls resulting from the new system of "indexing" income tax exemptions and tax brackets which started on January 1st of this year. For those members who were not aware of it, Manitoba's personal income taxes are now also being reduced under this indexing system. We expect indexing will reduce our potential revenues from progressive income taxes by $9 million in 1974/75 alone, and by $100 million in total between now and 1977/78. At the finance ministers' conference in January, I said that our government feels this is too high a price to pay for a tax change which produces grossly unfair results. Because the indexing plan is based on exemptions instead of credits, it favours the rich and almost completely disregards the effects of inflation on those with low and fixed incomes. MR. CHERNIACK: In view of the magnitude of the revenue losses now facing us – and the resulting negative implications of these losses for our own tax reform plans - we have asked the Federal Government to consider adopting a realistic compensation scheme or some other arrangement whereby provinces that feel indexing is inequitable could replace it with a different system, such as a tax credit plan, to help offset the effects of inflation on the real incomes of their taxpayers. Despite our concerns about these problems, our government plans no personal tax increases in the coming year. Certain changes will be proposed, however, to improve the overall equity of our revenue structure. At present, our revenue tax act and some other tax statutes provide for vendors' commissions - in effect, a share of tax revenues - for those individuals or businesses which act as tax collectors on behalf of the government. Because of the methods used for calculating these commissions, some inequities have resulted - with a few large collectors receiving disproportionately high commissions in relation to collection costs. MR. CHERNIACK: Some years ago the Smith Report on Taxation in Ontario recommended the abolition of these commissions in that province, and in 1972, the Ontario Government adopted this recommendation eliminating all commissions and thereby increasing its revenues significantly. It is not our government's intention at present to recommend a complete abolition of vendors' commissions in Manitoba. Instead, we will propose new formulas under which all collectors of provincial taxes will continue to receive commissions, but on a more equitable basis. The present revenue tax act commission formula permits vendors to retain 3 percent of tax collected under $200 for each remission period, and 2 percent of the balance. We propose to change this formula effective June 1 to permit the retention of a higher percentage, 5 percent of tax collected, on totals under $200; but a lower amount, 1 percent on the remainder. This change will give many small businesses increased commissions and will reduce the amount paid to certain large collectors. I again, Mr. Speaker, interrupt my formal address to accept the congratulations which I believe are being offered by the Member for Swan River. Details of changes in the commission rates under Other Tax Statues will be included in an appendix to the Budget. Overall, these commission adjustments should result in yearly revenue increases for the government totalling about $1 million. For a number of years, representatives of Manitoba's native people have called on the Province to remove the 5 percent sales tax from purchases on Reserves, or for use on Reserves, by Indians with treaty status, in line with practices in our neighbouring provinces of Saskatchewan and Ontario, and some other jurisdictions as well. Amendments to the Revenue Tax Act will be proposed in order to effect such exemptions for purchases of certain special categories of tangible personal property - excluding motor vehicles, alcoholic beverages, and assets acquired for resale or commercial purposes. Because of the need to establish a satisfactory system for administering this exemption, no date has yet been set for its implementation. The present maximum exemption for restaurant meals under the sales tax is $1. 99. Because of the increases in the costs of restaurant meals, we have decided that the exemption should be raised so that all meals under $3.00 will no longer be taxed. I again depart from my text, Mr. Speaker, to point out that this change is not designed to assist particularly members of the Legislative Assembly. This new higher exemption level will take effect on April 1st. The increase in the restaurant meal exemption will result in a yearly sales tax revenue loss of about one half million dollars. In recent months, our government has completed an intensive study of the provincial Amusement Tax. In the course of this review, we identified a number of anomalies related to current exemption practices. We also considered various alternative methods of rectifying these inequities, including expansion of the tax base to cover many types of admission expenditures which are not presently taxable. In addition, we looked at the possibility of incorporating amusement taxes into our sales tax legislation, as Ontario has done. And, finally we noted that some other provinces - Saskatchewan, Quebec and Newfoundland - have transferred certain amusement tax powers to their municipalities. After consideration, we have concluded that collection and enforcement may well be left at the community level. Accordingly, the Provincial Government intends to discontinue its general 10 percent Admissions Tax on December 31, 1974. If it appears that municipalities are desirous of increasing their revenues by adopting this tax, we are prepared to bring in the necessary enabling legislation, as well as to assist in an orderly transfer of taxing power and administration. The Province will continue to levy the taxes at race tracks as well as certain specific fees under the Amusements Act. Over a year ago, our government announced its willingness to provide municipalities with any help they might require in studying and implementing taxation measures designed to discourage land speculation. Specific reference was made to the possibility of adopting a levy on the enhanced value of land resulting from rezoning. The apparent reluctance on the part of the City of Winnipeg representatives to follow up this suggestion was somewhat surprising to us, given their continuing concern about budgetary problems and the rising cost of housing. Our government wishes to repeat its offer of assistance to any municipality which may now want to consider applying such a tax, and if there remains little interest at the municipal level, the Province, which is presently studying this matter, may decide to enter this field itself in order to lessen further speculative profiteering. MR. CHERNIACK: Mr Speaker, my colleague, the Minister of Mines, Resources and Environmental Management, has presented a major statement to this House on mineral resource policy. In his statement, he emphasized our government's determination to secure for the people of Manitoba a fairer share of the wealth derived from the extraction and processing of the natural resources which are their birthright under our Constitution. The current situation with respect to energy has helped to make all Canadians aware of the urgent need for better management of our non-renewable resources and of the immense potential benefits which can result from a carefully-planned development policy. In the last year other provinces, such as Saskatchewan, Alberta and British Columbia, have taken important new steps to implement such policies and to utilize added returns to improve the quality of life of their citizens. During our government's first term in office, we adopted several measures - including changes in royalties - to ensure that the people of Manitoba would gain greater advantage from their resources. This year, as my colleague has already announced, we propose to undertake a number of new initiatives designed to increase the benefits accruing to Manitobans. Legislation will be introduced shortly to permit the implementation of a variable system of volumetric taxation related to a base price and price fluctuations. This system will help to make certain that, in the future, the people of Manitoba will retain an equitable proportion of the economic rent or the "super profits" inherent in our natural resources. At the same time, it will guarantee that mine operators will continue to realize a fair return on their investment. The legislation will permit specific tax rates to be established by authority of the Lieutenant-Governor in council as circumstances warrant. Amendments will also be introduced to the Mining Royalty and Tax Act. Included among these amendments will be provision for similar rate-setting authority for the Lieutenant-Governor in Council in respect of Royalty Tax Levels, effective July 1. This will parallel current practices with respect to production from oil resources in Manitoba and other western provinces. As a result of these changes and in light of the rising value of our minerals, mining taxation revenues are expected to total some $30 million in 1974/75. For the year now closing, we expect revenues from this source, at existing tax rates, to be about $15 million$18 million. In addition to these changes in mining taxation, our government will also take steps to prevent oil producers from profiting unduly from the current energy situation. We are now considering legislation which may be introduced in this session - depending on federal actions with respect to oil pricing and other matters. Overall, it is expected that provincial revenues for the 1974/75 fiscal year will total some $834.5 million it has already been noted that this amount includes an allowance of $32.5 million in respect of the anticipated revenue surplus in the current year, which will be carried forward. Mr. Speaker, I have already referred briefly to the Main Expenditure Estimates for 1974/75 which are now before the Committee of Supply. At the conclusion of my address tonight, I will also table Supplementary Estimates for the next fiscal year totalling some $35.8 million. The Supplementary Estimates include an amount of $3. 7 million to be allocated to the Manitoba Health Service Commission to cover the cost of the recently-negotiated increases in doctor's fees. These estimates also provide for an additional $1 million for mineral exploration in 1974/75. An allowance of $6.8 million has been included in the Supplementary Estimates to cover a portion of Manitoba's share of planned Current Expenditures in 1974/75 under a new general development agreement and sub-agreements which should be signed very soon by our government and the federal Department of Regional Economic Expansion. Other funds are contained in the Main Estimates. The new agreements with DREE represent an important advance in the co-ordination of federal and provincial economic development efforts. One sub-agreement, dealing with Agro-Manitoba, will include programs to improve livestock production, to establish agricultural services centres, to undertake land and water use studies as well as new conservation efforts, to provide general training, and to upgrade existing infrastructure. A second sub-agreement, dealing with Manitoba's northlands, will encompass a variety of initiatives in the areas of manpower programming, cultural, recreational and youth services, infrastructure development and housing, as well as detailed general economic and community planning. A third sub-agreement, dealing with industrial and commercial opportunities, will involve possible developments in transportation, forestry agricultural machinery, and steel production. Provision has been made in the Supplementary Estimates for further assistance to urban areas as well. An additional amount of $3.3 million will be made available under the Department of Highways Appropriation for: An increase of over 70 percent in public transit grants to help offset operating deficits, Increased contributions to the City of Winnipeg for Street Maintenance; and Certain other purposes, including equipment acquisition. Some urban transportation problems can be extremely complex, but a few main policy issues are clear - and common to every major city in the world. Decisions have to be made between more freeways and better public transit. The substantial new assistance for urban transit included in this Budget reflects our government's position on this question. We do not want to see Manitoba's cities split up - and whole neighbourhoods destroyed - by expensive and inefficient expressways, or "beltways", or "throughways", We intend to work with urban government representatives and planners to ensure that this does not happen. The Supplementary Estimates also contain provision for three important new health and social development initiatives. To augment funds of approximately $1 million already in the Main Estimates, an amount of $3 million has been included in the Supplementary totals to help finance a major new Day Care Program. Under this program, substantial income related subsidies will enable many families to take advantage of child care services on a regular basis. Start-up assistance will also be made available to individuals and groups wishing to provide day care. The Federal Government has now indicated it will help underwrite the cost of the new program. When final arrangements regarding federal financial participation are completed, more details of the program will be made available. An amount of $2 million has been included in the Supplementary Estimates to launch a new province-wide ambulance service program. Under this program, our government will cooperate with municipalities and District Health Authorities in setting up co-ordinated ambulance services. The Province will share operating costs and certain initial capital costs, including improved communications equipment and vehicles where necessary. A further sum of $2 million will be allocated to expand the Provincial Pharmacare Program to make it applicable to Manitobans, regardless of age. The system of deductible amounts and provincial contributions which applies in respect of the Elderly Persons' Pharmacare Plan will be extended to the universal program. More complete information on the New Ambulance Service and Pharmacare programs will be provided by the Minister of Health and Social Development at a later date. Earlier in this address, I described our government's plans to guarantee that Manitobans will realize far greater benefits in the future from the development of their natural resources. For 1974, additional revenues from mining royalties will finance an important new tax reduction to give further help to those who are suffering the greatest hardship as a result of inflation. I am pleased to announce that our government will be introducing a new $14 million Cost-of-Living Tax Credit Program this year. Our Cost-of-Living Credit System will operate in much the same way as our Property Tax Credit Plan, and will have the same basic objective - to ensure that the largest benefits from the tax cut will be received by those in lower income ranges - the people who are most in need of real income protection at a time when prices are rising rapidly throughout Canada. Under our new plan, maximum credit benefit levels will be established at 2 percent of a tax filer's claim for personal income tax exemptions - thus, the more dependants, the larger the exemption claim, and the larger the potential credit. Because personal exemptions are now indexed to grow at the same annual rate as the consumer price index, maximum cost-of-living tax credits will increase accordingly, year after year. These maximum benefits will be reduced by one percent of taxable income to determine the tax filer's annual credit entitlement - so, the greater the income, the lower the credit. Members may be interested to know that the formula to be used for calculating Manitoba 'a cost-of-living tax credits is very similar to the formula introduced by the Ontario Government last year when it implemented its sales tax credit program. The major difference is that our formula will provide maximum benefits which are twice as large as those now available under the Ontario plan. We feel it is appropriate to adopt this type of formula because we want our new credit plan to help reduce the impact of provincial sales taxes in an equitable way consistent with the principle of ability-to-pay. Compared to other factors such as retail and wholesale mark-ups, the provincial sales tax has a limited impact on an average family's living costs - and virtually no effect at all on the prices charged for basic necessities such as food, which are exempt from tax. Still, it is true that the sales tax is less equitable than the income tax. And by relating our new cost-of living tax credits to income and family size, we will be able to introduce a greater degree of equity in our overall tax structure, while ensuring greater purchasing power for many Manitobans. For a family of four - a couple with two children under 16 - the maximum Manitoba cost-of-living tax credit for 1974 will be about $77.00. For a married couple, where one spouse claims the other as a dependant, the maximum credit will be approximately $64.00. For a single person, the maximum credit will be around $34.00. Because elderly people are entitled to claim larger exemptions for income tax purposes, their maximum cost-of-living tax credits will be correspondingly higher. For example, a married tax filer aged 65 or over could receive up to $85.00 for 1974, while a single person over 65 could receive up to $55.00. A detailed set of benefit estimates will be included with the material which is to be tabled at the end of my address. The Manitoba cost-of-living tax credit plan will be administered by the Federal Government, alongside our property tax credit program, in conjunction with the income tax system. This means that cost-of-living credits will be claimed by filing an income tax return and a credit application - whether or not a claimant has any taxable income to report. And so, Mr. Speaker, the combined main and supplementary estimates of current expenditure for 1974/75 total $834.4 million. Altogether, our cost-of-living and property tax credits, plus the extra health insurance costs resulting from the premium cuts in 1969 and 1973, will account for nearly 15percentofour current budget. Other measures designed to provide tax relief, such as our increased contributions to the Education Foundation program, account for another 5 percent or more. In total, then, about 20 percent of our expenditures next year will go directly towards tax reduction measures - all of them designed to make our tax system more equitable. As was opted earlier, our current revenues for 1974/75 are estimated at $834.5 million. On the basis of these figures, our government is budgeting for a small surplus on current account for the coming year. Mr. Speaker, as has already been announced, the capital supply bills for 1974/75 totals $699.3 million - up $395.8 million from last year's total authorization of $303.5 million. At a time when supplies of non-renewable energy resources appear to be becoming scarce in many parts of the world, the government feels it is essential to proceed expeditiously with the large remaining hydro development sites on the Nelson River and related water systems in order to ensure a continuing adequate supply of low cost power for Manitobans. MR. CHERNIACK: I again depart from my text and invite honourable members to tell us which other jurisdictions on this continent pay less and will pay less than do Manitobans. Of the total authority required for 1974/75, Hydro's portion alone is increased by $380 million - thereby accounting for almost all of the year's increase in Capital Supply requested. At present, Hydro is using up most of its accumulated authority from previous years and, as a result, this large authorization is now required to cover advance commitments and contracts which must be entered into. I'd like to draw special attention to the fact that the total debt charges to be paid out of the general revenue of the province I depart from my text again, Mr. Speaker, to point out to the Member for Swan River I'm just entering into the one paragraph he asked about earlier this evening. I would like to draw special attrition to the fact that the total debt charges to be paid out of the general revenue of the province for the 1974/75 fiscal year are projected at just over $10 million. This is about 1 percent of the current government budget. A table, which will 0e included among the budget appendices, shows the relationship between debt charges in the budgets of the province since 1969. It will be observed that debt charges have not been a heavy proportion of our expenditure load and that they continue to remain at very low levels as against rising revenue and expenditures - despite increasing interest rates, with which all of us are only too familiar. And in this connection, I want to make one special observation. As soon as the report of the Commission of Inquiry into the Churchill Forest Industries matter is completed, the government will be considering a restructuring of the capital position of that enterprise, It may well be that such a reorganization of the debt relationship between the Manitoba Development Corporation and Churchill Forest Industries will have some effect on the analysis which I have just provided, but our overall position will not be affected greatly. This will entail a bookkeeping adjustment, but since the monies involved have already been spent, no additional funding will be required. Earlier this evening, I referred to the strongly-balanced economic base which has been developed and maintained in our province, despite certain national problems. This base has made it possible for our government to undertake the wide-ranging, expansionary fiscal policy measures for which provision has been made in this budget. As I have already stated, our budgetary plans for 1974 include: A new cost-of-living tax credit program, made possible by fairer returns from mineral resources; A major new land servicing and home mortgage fund; Important new economic and industrial expansion efforts throughout Manitoba – especially in rural areas and the north, under a general development agreement and sub-agreements with the federal government; Substantially-increased conditional and unconditional assistance to municipalities, including aid for streets and urban transit, and access to additional "growth revenues" from amusement taxes; A guaranteed minimum income for the elderly; A broadly-based day care program; A greatly-expanded pharmacare program; A new ambulance service plan; A larger sales tax exemption for restaurant meals, and sales tax exemptions for native people on reserves. These measures, and others covered in our 1974-75 current and capital estimates will: Help ensure a fairer distribution of our province's economic benefits; Will introduce greater equity in our tax structure; Will assist in the creation of new employment opportunities; and Provide significant relief from pressures of inflation. This is a budget of accomplishment and of promise. The citizens of Manitoba confirmed last June that they aspire to greater economic and social equality and that they want their government to do all it can to meet the challenges implicit in these goals. Our budget tonight reaffirms our determination to fulfill this mandate. We believe this budget, and those which follow it in the years ahead, will justify the confidence the people of our province have shown in the New Democratic Party. And so, Mr. Speaker, I beg to move - proudly - seconded by the Minister of Labour, that Mr. Speaker do now leave the Chair and the House resolve itself into a Committee to consider the Ways and Means for raising of the soundly to be liberated to Her Majesty.