Province	Législature	Session	Type de discours	Date du discours	Locuteur	Fonction du locuteur	Parti politique
Manitoba	37e	1ère	Discours sur le Budget	9 mai 2000	Gregory F. Selinger	Ministre des Finances	New Democratic Party of Manitoba


Mr. Speaker, it is a great pleasure to present to you the budget for the year 2000.

Mr. Speaker, last September, Manitobans elected a new government to lead them into a new century, a new government with elected representatives from all regions of the province, the North, rural Manitoba and our cities.

Manitobans now have a government for the many, not the few, a government that understands the priorities of today’s families. Today’s budget reflects these priorities.

I feel privileged to present the first budget of the new century to the people of Manitoba. On May 12, Manitoba celebrates its 130th birthday. Our history shows us how much we can accomplish when we set aside our differences and work together.

This constructive can-do attitude was apparent during both my pre-budget consultations and the Manitoba Century Summit. To the many Manitobans who participated in those consultations, offered their views and made constructive suggestions, I thank you.

Today’s budget delivers on our five main commitments to Manitobans and their families.

The five major commitments that we made were ending hallway medicine and rescuing health care; renewing hope for young people; keeping Manitoba Hydro and building a new partnership between business and labour for new and better jobs. We are also committed to making our communities safer and keeping balanced budget legislation and lowering property taxes.

Manitobans endorsed these five commitments because they are balanced, responsible, and responsive to the needs of today’s families. This budget begins to make that new balance a reality.

We have created a new balance by meeting Manitobans’ expectations for a health care system that is there when they need it and an education system that prepares our young people for a changing world; by delivering a responsible and sustainable tax relief for Manitoba families and for Manitoba businesses; and by securing a balanced budget despite dealing with large overexpenditures discovered after taking office.

This is a good news budget. It is a responsible budget. It is a balanced budget.
Manitobans’ No. 1 priority is health care. Today we address that priority head-on, increasing health care spending by almost 6 percent over last year’s expenditures and targeting this funding to areas with the most critical need. This budget will help keep patients out of hallways, provide for more nurses, more personal care home spaces, and offer more home care services to Manitobans.
Upon taking office, our priority was to end hallway medicine in our hospitals. Two weeks ago, the Canadian Institute for Health Information cited the dramatic improvements in Manitoba’s hospitals over the past six months. Waiting lists are now shorter, and postponed surgeries resulting from overcrowding in hospitals are down significantly.

This budget lays the groundwork for lasting improvement in our health care system. The root causes of hallway medicine over the past decade are clear: ill-conceived decisions to cut nursing positions and close hospital beds; poor management of existing beds; delayed construction of required personal care home spaces; and failure to listen to caregivers.

Our larger challenge is to stabilize health care expenditures while ensuring there are needed resources for patient care. There must be secure, sustainable and timely funding for health care as well as effective use of health care resources.

Realistic budgeting is the key. Our budget realistically funds the quality health services we need. Today’s budget provides $2.4 billion for health care programs, an increase of $135 million over last year’s expenditure. For the first time in a decade, health authorities have their budgets based on a stable funding formula. Regional health authorities must exercise greater fiscal responsibility, avoid deficits and reduce administration costs now that proper funding levels are in place.

Training hundreds of new nurses is critical to providing quality health services. As part of our plan to reduce nursing shortages, we are reintroducing a diploma nursing program, while continuing our support for the existing degree program. We are also educating and training more aides. Also, nurses should have a voice in important decisions concerning their working conditions. A nursing advisory council and nurse representation on health authority boards will help to ensure that involvement.

Quality home care services help to relieve pressure on acute care and long-term care facilities and improve service in the community. I am pleased to announce that today’s budget expands home care services to provide community intravenous therapy, improved palliative care and more adult day care.

As well, this budget will increase cardiac care and cancer care. It will expand Pharmacare, including coverage of new lifesaving drugs, palliative care drugs and the Aricept trial for Alzheimer patients. It will reduce waiting times by increasing hours for oncology treatment, increasing dialysis capacity and providing a new pediatric CT scanner.

This budget will also enhance our rural physician recruitment and retention plan, increase funding for personal care home operations, and strengthen partnerships with the federal government to improve Aboriginal health, including diabetes programs and new dialysis units in Aboriginal communities.

In this budget, we provide additional funding for mental health programs and enhanced access to community health services through our new Program for Assertive Community Treatment, PACT, increase grants to community facilities, such as the Village Clinic, le centre de sante, and the Memory Assessment Clinic at Lions Place Alzheimer Housing Complex.

In this budget we provide $5 million more to enhance Emergency Response and Transport Services for rural, northern and urban ambulance services. We will continue to target the programs to reduce waiting lists, and at the same time we will add eight Workplace Health and Safety officers to ensure safer, healthier workplaces in the manufacturing, construction and health care sectors.

Our plan for health care focusses on putting patients, not overhead, first. Amalgamating Winnipeg’s Health Authorities allowed us to redirect costs from administration to caregivers. As a consequence of the amalgamation, we expect increased accountability of institutions to the Winnipeg Regional Health Authority.
Our health care system is often overlooked when it comes to promoting Manitoba’s competitive advantage. Unlike some provinces, Manitoba does not levy health care premiums. Employers in U.S. cities incur $3,000 to $4,000 annually per employee in health care insurance costs. More importantly, the public health system provides assured access to health services for every Manitoban, whatever their financial circumstances. This is why it is imperative to maintain and protect our universal health care system.

We are also committed to building the most cost-effective primary and community-based care systems in Canada. However, in order for this to happen, we need the federal government to once again become a committed and reliable partner.
Canadians are fully aware of the $6.2-billion federal funding cut for health, post-secondary education and social services implemented in 1995. This cut reduced Manitoba’s annual revenue by $236 million.

We have lost $236 million in federal transfers despite five years of unparalleled growth in the federal government’s revenues and surpluses. The federal government payments remain below 1994-95 levels, and the health supplement is $39 million lower than it was last year.

Our government wants to work with the federal government, other provinces and, most importantly, with citizens and front-line care workers to ensure sustainable public health care. Full restoration of the federal Health and Social Transfer is an important first step toward a more financially sustainable system.

With today’s budget, we demonstrate our commitment to stronger public health care for Manitobans and signal our support for a national renewal of Canada’s health care programs.

Mr. Speaker, among Manitoba’s greatest strengths is the individual and community values that make our province a great place to raise a family.

We have a responsibility to the children of our province to ensure that their dreams of a brighter future can be realized. This means providing accessible and relevant educational and training opportunities to help all Manitoba children succeed.

Our government is committed to creating new hope for young people. And today, with this budget, we are delivering on that commitment by providing a total of $1.4 billion to the Department of Education and Training, including $780 million for K to 12; $466 million for post-secondary education and training; and $150 million for property tax credits.

We are reversing the recent neglect of our public school system. Our commitment starts with providing stable and predictable funding increases. As already announced in February, we are providing almost $30 million in funding for K to Senior 4 programs provided by school divisions. In addition, the public schools capital program will be $51 million this year.

Our government is committed to offering young Franco-Manitobans access to quality education in French. My colleague the Minister of Education and Training recently announced the renewal in principle of a five-year Canada-Manitoba Special Funding Agreement for governance of education in French. Over that term, our government will provide the Division Scolaire Franco-Manitobaine supplementary resources and cash totalling $15 million to assist in meeting its province wide mandate and obligations.
Quality post-secondary education is essential in creating and keeping the highly skilled, good-paying jobs of the new millennium. Our advanced education plan includes the following measures that meet our election commitments: doubling of community college spots over four years, beginning with $5.1 million in new funding for the College Expansion Initiative; taking $8 million, or 10 percent off student tuition bills in public colleges and universities; increasing university and college operating grants by $8.8 million, and providing an additional $2 million for a total increase of 3.8 percent to ensure that colleges and universities do not increase tuition. This will ensure that the 10% reduction is a real saving to students.

As well, we introduced a $5.9-million Manitoba Millennium Bursary Program, the first bursaries available since 1993. The flexibility of the Canada Millennium Scholarship program, administered by Manitoba, assists in establishing this bursary program. On average, these bursaries will benefit over 5000 students annually.

In today’s world, a good education strategy is a good economic strategy. Along with direct support for educational institutions, this budget also provides for schools to form innovative partnerships with other sectors of the community. For example, through the new Lighthouse Program and with the assistance of community volunteers, we will be opening schools after hours as recreation centres. In addition, the Community Access Program, developed in co-operation with the federal government, will add 400 public Internet access sites in schools and community facilities across Manitoba.

We will also be targeting new apprenticeship and training programs toward increasing Aboriginal participation. Working in partnership with Aboriginal communities and with the federal government, Manitoba can ensure Aboriginal youth benefit from the job opportunities and can contribute and share fully in our future economic growth.

Some of these education initiatives are made possible by redirecting funds from administration directly into the classroom. To this end, the Department of Education and Training will reduce 60 positions in the coming year. Mr. Speaker, our government is committed to providing new hope for young people, and the education priorities I have just outlined make it clear that today’s budget follows through on this commitment.

Next I wish to talk about families and safe communities. Healthy families and communities play a critical role in providing new hope for our children. A child’s earliest years are vitally important in determining later health and well-being.

Children who grow up in safe, stable and nurturing environments have better opportunities and success throughout their lives.

The tax relief I am announcing today, including the new Manitoba Family Tax Reduction, will benefit Manitoba families. In addition, our strategy for healthy children and families includes the following features: The Healthy Child Initiative will provide $13 million for proven services such as parent-child centres, prenatal and early childhood nutrition, nurses in schools, adolescent pregnancy reduction, and fetal alcohol syndrome prevention. Almost $9 million more for child care will provide funding for additional subsidized children, more licensed child-care spaces and additional funding to integrate more children with disabilities into day care. In addition, our new funding model, worked out in collaboration with the child-care community, will address wages for child-care workers. Starting in July, increases in the National Child Benefit will be retained in full by all families. In addition, families on income assistance with children under six will receive an additional $20 per month per child. We will also provide additional assistance to families for the cost of children’s school supplies.

Healthy neighbourhoods are more than just bricks and mortar. Today’s families need access to vital programming and services. They also need decent and affordable housing, and an effective justice system. Our strategy for healthy families and communities features the following: Neighbourhoods Alive!, a long-term, community-based development strategy. It will provide community organizations the support they need to rebuild neighbourhoods in Winnipeg, Brandon and Thompson. Neighbourhoods Alive! focusses on housing, employment and training, education and recreation, and safety and crime prevention.

A new Winnipeg housing initiative will provide community groups with single-window access to a $22-million housing fund created by the federal, civic and provincial governments. An additional $1 million per year will be available for targeted neighbourhoods outside of Winnipeg. Both initiatives are part of Neighbourhoods Alive and will provide up to $10,000 per housing unit to community-based organizations in targeted areas.

The Residential Rehabilitation Assistance Program, aimed at improving older housing stock, will be expanded. Effective and innovative ways to enhance public safety, including establishing a new Criminal Organization and High Risk Offender Unit will be implemented. Family Maintenance enforcement will be augmented with full-time officers in order to improve service.

We will also build genuinely safer communities by assisting victims of crime, and developing effective approaches to preventing criminal behaviour. Earlier this year, our government introduced the first child victim support initiative in Canada; Our government will work in partnership with communities throughout Manitoba to give our young people more access to community resources and facilities for positive activities.

My colleague the Minister of Justice (Mr. Mackintosh) will be announcing details on this initiative shortly. Our Aboriginal Justice Implementation Commission is reviewing the recommendations of the Aboriginal Justice Inquiry. We look forward to their advice and will continue our work to improve justice services for Aboriginal people. Supported Living and Vocational Rehab programs for adults with disabilities will be expanded. The increase will expand residential, day and support services for adults with a mental disability who are living in the community and will strengthen agencies’ ability to provide high quality services.

Our government has committed itself to putting into place better services for the Franco-Manitoban community. As a follow-up to the Chartier report, we are in the process of establishing three Community Service Centres, in St. Pierre Jolys, Notre Dame de Lourdes and St. Boniface.

The days of top-down, one-size-fits-all solutions are gone. Often, the best ideas for community revitalization come from the community itself. We will build on the existing strengths and experiences of residents and community groups to take into account the distinctive needs, conditions and priorities of individual neighbourhoods.

Healthy communities for future generations are dependent on a healthy environment. Perhaps the most valuable resource for tomorrow's citizens is our abundance of fresh water. Our government will provide greater protection for Manitoba’s rivers, lakes and streams by increasing resources to protect water quality and by mapping those areas at risk of ground water pollution. The Department of Conservation will establish a new Environmental Stewardship Division. This division will implement wide area planning that will link development decisions to the sustainability of our ecosystems.

They will also work with Aboriginal communities to ensure that our land use decisions respect the traditional entitlements of Manitoba’s First Peoples. By working in co-operation with Aboriginal communities and with industry, we have protected over 200 000 hectares of endangered spaces within our first seven months in office.

Mr. Speaker, today’s budget clearly provides for increased emphasis on Manitoba families and recognizes the importance of safety and revitalization within our communities.

A great strength of the Manitoba economy lies in its diversity. In fact, we have one of the most diversified economies in Canada. We also have a significant affordability advantage, and we consistently achieve one of the lowest unemployment rates and highest employment rates.

Manitoba’s unemployment rate over the first four months of 2000 has averaged 5.3 percent. Last month, it declined to 5 percent, the lowest monthly unemployment rate since January 1980.

Several recent announcements attest to the strength of our economy. Vansco Electronics announced an expansion that will create 340 jobs over the next few years. Air Canada is bringing another 170 positions to Winnipeg, and a new contract for Motor Coach Industries means another 300 jobs. Loewen Windows announced a plant expansion in Steinbach that will create 250 new jobs, and Schneider's Corporation’s $125 million expansion will boost employment by 1100 positions.

In addition, there are many other signs that point to the strength of our economy. Last year, the aerospace industry, including firms like Boeing Canada, Standard Aero and Bristol Aerospace, employed 5000 Manitobans and earned gross revenues of over one billion dollars. The prospects for continued robust growth of aerospace in Manitoba look bright; demand and prices for metals have recently risen sharply; and the northern mining sector should contribute strongly to Manitoba’s economic growth over the next year. In the fall of 1999, Hudson Bay Mining and Smelting announced new capital investment of $359 million in its Manitoba operations in Flin Flon to extend copper and zinc mining in the region to 2016.

In February 2000, Inco Ltd. announced a $70-million investment to deepen its Birchtree Mine in Thompson. The mine is expected to reach full production by 2004, and extend its productive life to the year 2016. Manitoba Hydro recently announced construction of a new $180-million natural gas thermal generating station in Brandon. Capital investment in Manitoba has increased for the past eight years, and investment intentions for 2000 remain among the strongest on record. New migration data show a sharp reduction in the level of net out-migration to other provinces. Our training and education policies will attract more young people who are needed to address skills shortages and meet the needs of Manitoba’s growing economy. Based on the average of seven major economic forecasts, Manitoba’s economy will grow 2.7 percent in real terms in the current year. This is an increase from 2.2 percent in 1999.

As part of our commitment to begin building new partnerships between business and labour, our government held the Manitoba Century Summit on March 14 and 15. The Summit brought together labour, community, business and government participants to forge a consensus on how we can build our economy. Our Manitoba Century Summit identified several key issues, including overcoming skills shortages, fostering and encouraging capital investment and promoting leading-edge industries, including biotechnology, information technology and advanced manufacturing. This budget follows up on the conclusions of the Summit through the development and implementation of a solid economic strategy for Manitoba.
Our government’s economic strategy is based on taking action where we can make a positive contribution and building on our competitive advantages. Today’s budget is an important part of that strategy. Our government action includes the following:

Addressing skills shortages. In promoting immigration, we will support both humanitarian and economic immigration to Manitoba for skilled labour, business entrepreneurs, and family reunification.

Keeping Manitoba Hydro. Manitoba Hydro is one of the great advantages enjoyed by Manitoba families and businesses. It will not be sold.

Reducing small business taxes. The small business income tax rate was decreased from 8 percent to 7 percent this year, and we will proceed with further reductions to 6 percent next year, and to 5 percent on January 1, 2002.
In response to changing requirements in the new economy, legislation facilitating e-commerce will be brought forward this year.

Supporting research and development. Our government understands the need for sustained economic development of our province and will provide a high level of research and development activity through programs such as the Manitoba Research and Development Tax Credit, which supports more investment in this critical area.

Manitobans are constantly making new scientific and technological discoveries. Today’s budget provides support for Keystone Technologies Incorporated, a new fund dedicated to enabling the continued commercialization of biotechnical and health care innovations by Manitoba companies.

This budget directly encourages more technological, knowledge-based activity in Manitoba by supporting the following programs: the Manitoba Science and Technology Fund; the Manitoba Innovations Fund will provide $7 million to help Manitoba’s universities, hospitals, and other research facilities. To build on the strength of mining and other natural resource industries, our government will work with other provinces to ensure the general Corporate Income Tax reduction announced in the federal budget is extended to the natural resources sector.

As Manitoba industry continues to grow, our government will ensure the environment is protected, activities are sustainable, and clean air and fresh water are available throughout the province. In anticipation of a new Infrastructure Agreement with the federal government, we are allocating $4 million for this initiative. It is expected that Manitoba’s share of this new national program will generate up to $318 million in infrastructure and other improvements throughout the province over six years. Today’s budget provides ongoing support for Manitoba companies to raise new capital and expand through the Manitoba Equity Tax Credit. As well, we will continue to assist labour-sponsored venture capital corporations, such as the Crocus Fund and ENSIS, with Manitoba and federal tax credits.

Roads, bridges and other transportation works are keys to the Manitoba economy, and today’s budget commits $177 million to construction and maintenance of this infrastructure.

Manitobans should promote our competitive advantage. We enjoy significant advantages in cost and location. Manitobans recognize that strong health and education programs contribute to the economy, while a growing economy can provide additional revenue to improve our overall quality of life.
With respect to community and economic development, this budget reflects our belief that we must focus on both community and economic development. A revitalized partnership with local governments is important in our community and economic development efforts. This budget provides significant resources to build that partnership.

Manitoba’s unique provincial-municipal tax-sharing arrangement provides local governments with a share of growing provincial revenue. This year, the Provincial-Municipal Tax-Sharing Program payments will rise $7 million to $77 million. This 10% increase delivers $44 million to the City of Winnipeg and $33 million to other local governments.

The Rural and Economic Development Initiatives provide funding for economic development, tourism, trade and investment strategies, and entrepreneurial assistance. We are expanding the Grow Bonds and Community Works Loans program for community development corporations to include urban projects. Our TEAM program will be a pilot project to provide micro-credit loans to small northern entrepreneurs. In addition, Manitoba’s VLT revenue-sharing program provides $7 million to the City and $6 million to rural and northern communities.
As well, the City of Winnipeg will benefit by $22 million of capital assistance provided through today’s budget.

To support urban economic development, this budget allocates almost $18 million to the Urban Economic Development Initiative. This will provide $2 million to the Department of Health to support improvements to ambulance services in Winnipeg.

In the 1950s and 1960s, governments worked together to build the Red River Floodway. We are currently in discussions with the federal and city governments to develop a co-ordinated response to the International Joint Commission’s recommendation of improved flood protection for Winnipeg.

With the federal government, we are providing resources in this budget to complete improvements to the floodway inlet, which will increase floodway capacity by up to 10 percent.

Along with these urban initiatives, today’s budget provides over $18 million for rural capital projects such as sewer and water and the Interlake Natural Gas project.

The Rural Economic Development Initiative provides $15 million in support to local governments for youth programs, regional development corporations, community development programs such as Grow Bonds, and the Community Works Loans Program.
The Community Ring Dykes Program provides funding, with federal cost sharing, for communities in flood-prone areas.

We will also be introducing a program to replace older ambulances in rural Manitoba.

Today’s budget includes Aboriginal and northern communities in our community and economic development efforts. For example, this budget provides additional resources for winter roads to Manitoba’s remotest communities. It also provides $1 million to establish an Aboriginal Economic and Resource Development Fund for programs to address the economic, cultural, recreational and social needs of Aboriginal communities.

We will help an additional 12 communities provide sustainable municipal services and maintain infrastructure as part of our self-reliance initiative. To promote self-reliance and economic development, we are restoring core funding to Aboriginal organizations.

I am also pleased to announce that this budget eliminates the $50 fee charged to northern patients who must be transported to southern health facilities for treatment.

Our government is committed to maintaining a viable and vibrant agricultural economy in Manitoba. Last year, in addition to the $60 million in the budget, $166 million more was provided in recognition of income and moisture problems in south-western Manitoba. This year, the budget provides for improvement to the Crop Insurance Program. Coverage is extended for specialty crops, moisture insurance and a new flexible price option. This program will provide protection to individual farmers and reduce the uncertainty associated with disaster assistance.

Manitoba producers have made considerable progress in diversifying their operations. However, they face serious challenges. The loss of federal transportation support, unfair subsidies in the United States and the European Union and low grain prices have strained the economic viability of our farmers. To address these issues, Manitoba communities are seeking opportunities to attract food-processing operations. This will enhance local economic activity, thereby providing economic opportunities for our young people in rural communities. The provincial government will work to support the agricultural community on all of these issues.

We have negotiated a new disaster aid program with the federal government to replace the AIDA program. We will continue our work on gaining stronger federal government commitments to prairie agricultural transition. Our government has taken a proactive stance on assistance programs, such as crop insurance, the Net Income Stabilization Account and disaster aid.

We recognize that an aging population is an issue in the Manitoba farming community. To this end, we will introduce Project 2000 to assist young people to enter farming. In addition, we recently announced the Livestock Stewardship Initiative to ensure the sustainable expansion of the livestock industry.
We have also provided funding for the development of a rural agro-meteorological weather network which will assist our producers in making critical decisions to reduce their risks. Manitoba farmers have done much to build this province over the past century. They deserve our support as they strengthen and diversify their operations to meet the challenges of worldwide competition.
Manitobans have told us they want a responsible and balanced approach to programs and taxation. They want important public services maintained and improved. And they are prepared to pay fair and reasonable taxes to support those services. Our government is working diligently to achieve a sustainable balance between increasing resources in priority areas and providing responsible tax relief. Today’s budget is the first step toward achieving this balance.
In the election, we promised to increase the property tax credit by $75 this year. I am pleased to announce that today’s budget fulfils that commitment.
Both the maximum and minimum property tax credits are increasing for all eligible homeowners as well as tenants. Most homeowners will see the increased minimum property tax credit as a reduction of $325 off their municipal property tax bills. On average, this provides a 3.3% reduction to Manitoba property taxpayers. For an average Winnipeg home, the additional $75 represents a tax saving of 2.7 percent. For an average home in rural Manitoba, the saving is even higher at 4.8 percent. Manitoba now has the most generous property tax relief program delivered through the income tax system.

Manitobans are already seeing significant income tax relief totalling $50 million this year alone. Basic personal income taxes were cut on January 1, saving Manitoba taxpayers over $40 million. In addition, we are reducing income taxes a further $10 million, because we are paralleling the tax base changes announced in the federal budget. Our government is pleased to deliver this responsible and tangible tax relief to Manitobans.

In February, I announced that Manitoba, along with the other provinces, would begin to apply provincial income tax directly on taxable income, rather than on basic federal tax. This new system provides us with the flexibility to end the use of the net income tax and the surtax and put in place a single 3 rate tax structure.

Our government will deliver additional personal tax relief to Manitobans of $68 million in 2001, as well a further $34 million in 2002, for an annual total of over $100 million in tax relief. Manitobans from all income groups and family sizes will benefit from these significant new tax reductions. We are reducing taxes across the board by enhancing the non-refundable tax credits and adjusting tax brackets.

We are providing more support to families with children through the new Family Tax Reduction. We are providing more support to persons living with disabilities in the Family Tax Reduction. We are removing 15 000 low-income Manitobans from the tax rolls. We are increasing the tax recognition for charitable donations.
We will simplify Manitoba’s income tax. The new system will have just three tax brackets. For 2001, the new system levies tax at 10.9 percent on taxable income up to $30,544; 16.2 percent on income between $30,544 and $61,089; and, 17.5 percent on the excess. For 2002, the rate on the middle bracket is reduced to 15.6 percent and the bracket is increased to $65,000. We will eliminate the use of net income tax, and we will no longer have a surtax.

The following are some examples of the tax relief we deliver. For a family of four with one income of $40,000, Manitoba income tax falls by $153 this year, $421 next year and $515 in 2002 relative to 1999. Their savings over the period: $1,089.

For a single senior with an income of $20,000, taxes drop $60 this year, $192 next year and $214 in 2002 compared to 1999. Over the three years, this senior will save $466 in provincial income tax.
For a single parent with earnings of $20,000 and one child, Manitoba income tax drops $76 this year, $197 next year, and $229 in 2002. Over the three years, this presents savings of $502 in income tax.

For a two-income family at $60,000 with two children, income tax falls $194 this year, $526 next year, and $605 in 2002. The three-year income tax savings total $1,325.

This tax relief means Manitoba remains one of the most affordable places in Canada to raise a family.

Both as a preventative health measure and also as a revenue measure, we have increased the tobacco tax from 8.0 cents to 8.6 cents per cigarette.
This budget is balanced.

For several years, the Provincial Auditor has recommended improvements to financial management and reporting procedures. These recommendations were endorsed by the independent review of the fiscal position of the Province conducted by Deloitte and Touche. We are responding. We will issue a single set of combined financial statements commencing this September rather than separate statements, one in September and another later in the year. We will end the practice of describing withdrawals from the Fiscal Stabilization Fund as revenue.

We will bring financing for health capital under the provincial umbrella to reduce interest costs on existing debt commitments made by over $1.2 million annually.

We will begin to address the province’s pension liability for employees and teachers. This liability stands at an estimated $2.8 billion today and would surpass the $9-billion mark around the year 2030. To prevent this burden from falling on the shoulders of our future generations of young people, we are broadening debt retirement provisions to deal with both pension liabilities and general purpose debt. We believe a balanced plan is required and addressing both obligations will achieve real long-term benefits.

Our government is committed to putting Manitoba’s finances on a sustainable footing. This budget makes additional progress toward the goal of sustainability. Today’s budget proposes a draw from the Fiscal Stabilization Fund of $90 million, less than one half of the $185 million drawn in 1999-2000. Today's budget proposes a draw of less than 50 percent. This entire amount of $90 million will be used for the debt retirement fund.

Today’s budget also projects a $10-million positive balance, consistent with the provisions of the balanced budget legislation. Our budget provides greater transparency and accountability as called for by the Provincial Auditor, and legislation will be strengthened to give effect to these matters.

The economic outlook for Manitoba and Canada projects sustained growth over the medium term. Real average annual growth of the Manitoba economy between 2000-01 to 2003-04 is projected to be 2.3 percent, with nominal economic growth of 4 percent. Revenue is projected to grow at an average rate of 3 percent annually.
Program expenditure growth in our medium-term fiscal framework averages 2.8 percent annually. Public debt servicing remains stable. We have reduced reliance on the Fiscal Stabilization Fund, and we will continue to work toward eliminating the need for future fund draws.
Mr. Speaker, Manitoba is a great place to raise a family. With this budget, it will be even better.

Today’s budget provides Manitoba with an even stronger quality of life that includes public programs such as health care and education that are once again receiving priority attention; lower tuition fees for post-secondary education students who are training for the jobs and opportunities of today’s economy; affordable housing and vehicle operating costs that are among the lowest in North America; the lowest hydro rates in North America; a low unemployment rate; and a lower personal taxes for low- and middle-income families.

When major taxes and other significant costs are added up, a typical Manitoba family has among the lowest taxes and living costs in the country.

Mr. Speaker, our government has taken a responsible and balanced approach to budgeting in order to respond to the priorities of today’s Manitoba families.
Improving the lives of Manitoba families is at the heart of today’s budget,

Mr. Speaker. Our government is keeping our five commitments to Manitobans, and we will continue to be responsive to Manitobans’ needs and remain focussed on their priorities in the years to come.

Thank you for your attention.