Province	Législature	Session	Type de discours	Date du discours	Locuteur	Fonction du locuteur	Parti politique
Manitoba	37e	4e	Discours sur le Budget	22 avril 2003	Gregory F. Selinger	Ministre des Finances	New Democratic Party of Manitoba


Mr. Speaker, I am proud to present the 2003 Manitoba Budget, a budget that is balanced, that reduces taxes, that pays down the debt and that invests for our future.

In times of uncertainty we recognize the value of working together to build the foundations for a stronger, safer Manitoba, a welcoming, affordable place to live and do business.

Four years ago we started a new growth strategy for Manitoba. Budget 2003 continues our priority commitments to education, health care and innovation, the foundations of building a stronger and brighter future for Manitobans.

A steady pattern of economic growth is already paying dividends. We are one of only two provinces to achieve four consecutive years of private investment growth. Private investment has increased 13.8 percent since 1999.

From September 1999 through the end of last year, Manitoba created an average of over 8000 jobs per year compared to less than 3000 jobs per year in the previous decade.

Recently Moody’s Investor Services upgraded our province’s credit rating to AA2 based on "solid economic growth, balanced budgetary performance and a reduced debt burden."

Over the past four years our unemployment rate and our youth unemployment rate have consistently been the lowest or second lowest in Canada. More youth are working in Manitoba today than at any time during the last decade, reversing the negative trend in youth employment that began in 1990.

The number of Manitobans receiving income assistance has declined by 8.1 percent since 1999.

Since 1999 we have committed $384 million to the reduction of debt and pension liabilities. This year our net general purpose debt relative to GDP will be at its lowest level since 1982-83, following an 18% reduction in the past four years.

Between 1999 and 2002 farm cash receipts increased by 27 percent, the best performance in Canada.

I am pleased to report that the forecasts for Manitoba growth continue to be positive. Real economic growth is forecast at 3.2 percent this year, the third strongest in Canada.

The Conference Board projects our unemployment rate will decline again this year and will be the lowest in Canada for the second year running.

Mr. Speaker, we have built a firm economic foundation, but there is more work to do. This Budget provides the tools Manitobans need to improve their lives now and charts a path to an even more secure future.

Our economic strategy is first and foremost an education strategy. To succeed economically as individuals and as a province we need a strong system of public education.

Four years ago we committed to the principle that a college or university education should be within the reach of every young person who meets the entrance requirements. To this end we reduced and then held the line on undergraduate tuitions, provided more assistance to students, increased course offerings and revitalized campuses.

Six hundred nurses will graduate this year compared to 200 in 1999. More people are taking advanced aerospace training, following the creation of the Stevenson Aviation and Aerospace Training Centre.

There are more apprentices and more Aboriginal students in training. With our new investments, more students are taking more courses in more locations throughout Manitoba.

Today's Budget continues to create opportunity for Manitoba students and youth. Budget 2003 increases funding for the College Expansion Initiative to over $22 million, providing $9.2 million more to revitalize and expand Manitoba colleges. Today's Budget provides funding for 1350 students to attend Red River College's downtown campus this fall. Today's Budget increases capital funding for universities by over 15.4 percent. Our five-year, $50-million contribution to the University of Manitoba’s Building on Strengths campaign is being matched by over a hundred million dollars in private donations. Today's Budget directs funding towards the establishment of a University College of the North.

Today's Budget boosts overall operating and program grants to universities by 2.9 percent. It also keeps our tuition fees among the lowest in Canada.
The increase in operating and program funding plus another reduction in university property taxes provides Manitoba universities with the equivalent of a 4% increase in overall support.

At the same time, we are strengthening our public school system. In 1999 we promised to increase funding to Manitoba schools at the rate of economic growth; we delivered. In 1999 we promised to increase property tax credits to $400 for every homeowner and renter, an increase of $150; we delivered. In 1999 we promised to begin phasing out the Residential Education Support Levy; we delivered.

Over the past three years we have also committed $200 million to capital projects to renew and rebuild our schools. Budget 2003 adds to our investments in education.

For the fourth straight year we are significantly increasing public school funding by providing an additional $23.8 million. We are investing $50 million to renovating and rebuilding public schools in Manitoba in the coming year. We are creating a $1-million fund to address issues of class size and composition.
As a result of our commitment to schools, education and training, more doors are being opened to young Manitobans. At the same time, homeowners are getting property tax relief after a decade of steady increases.

Rebuilding the public health care system remains our Government’s top priority. In 1999 Manitobans faced a triple threat to health care. We were training too few nurses, doctors and other professionals to meet the health care needs in our community. Scheduled capital and equipment projects had been postponed, reannounced and then postponed again. Significant negotiated salary increases had no budgetary support.

We took immediate action, and we are now seeing results of these ongoing training investments in our health sector.
We have added 500 additional spaces to train technologists, therapists and health care aides. There are now over 1300 more students enrolled in nursing following the strategic expansion in 1999.

The number of doctors in Manitoba has increased each year since 1999, reversing a period of decline. According to the most recent data, there are 2122 licensed doctors in Manitoba, 85 more than in 1999.

In addition, we have funded 20 percent more spaces in Manitoba’s medical school and with new loan incentives ensured that more of the doctors we graduate will be practising in our communities.

Through expanded home care service, improved patient management and a new flu vaccination program and, above all, the hard work of our front-line health care professionals, hallway medicine has been reduced by over 80 per cent.
We have implemented a strategic rebuilding program including hospital expansions and major equipment purchases for communities such as Brandon, Thompson, Neepawa, Beausejour, Gimli, Island Lake and Swan River. We created a province-wide network of 24 Telehealth sites that allow our doctors to consult through video conferencing on diagnoses and treatments. We have worked with the dedicated staff at CancerCare Manitoba. We have reduced by half the wait time for cancer radiation therapy.

By training and hiring more technologists and by extending the hours of operation, we have increased by over 40 percent the number of vital tests performed in this province. We have five new CT scanners, and, for the first time, we will have an MRI outside of Winnipeg.

As a result of major investments in upgrading health care facilities, Manitobans have increased access to day surgery and outpatient service, thereby making more hospital beds available. More surgeries are being performed in rural and northern hospitals.

Budget 2003 continues support for recruiting and retaining more health care professionals by improving working conditions through the Nursing Safety and Security Fund and by providing additional support and funding for the Physician Resource Plan.

We have also financed the largest health capital project in the province’s history at the Health Sciences Centre. It will include new adult and children’s emergency departments, new operating rooms, new intensive care, post-anesthesia and coronary care units. We are committing $47.1 million for needed medical equipment and training.

Budget 2003 builds on many of the strengths of the Manitoba health care system such as home care, community health centres and special initiatives to make our communities safer. Budget 2003 provides funds pour les services vitaux de soins à domicile [for vital home care services].

Access centres will provide health and community services in River East and Transcona. As well, we will have community health services provided through the Gimli Hospital redevelopment, and closer to home dialysis treatment in Island Lake. We will have additional resources to Manitoba’s nationally recognized West Nile virus program and meeting our commitment to reduce workplace injuries by 25 percent with our new legislation and new programming.

In recent years most jurisdictions in Canada and the United States have increased tobacco prices. Experience has shown that the price of cigarettes has a significant impact on youth smoking. As of midnight tonight the tobacco tax rate will increase 1 cent per cigarette to 15.5 cents. This measure will raise $7 million per year to support health care.

Our Government is committed to the principles of the Romanow report. It calls for more federal resources for health care reform. Additional federal funding announced following the release of the Romanow report is a positive step forward.

Every additional health care dollar coming to Manitoba under the new funding arrangement will be spent on health care. However, even with the additional dollars, the federal share of funding for health care and other social programs will now stand at 16 percent. Mr. Romanow recommended that the federal share be increased to 25 percent.

The shortfall in federal funding for health care will limit the pace of improvements to our health care system. We will work hard to continue our progress and we will be diligent in pursuing Mr. Romanow's funding target.
Expenditure on prescription drugs continues to be one of the fastest-growing costs in the health care system. New federal funds will allow us to cover the cost of more drugs for Manitobans. However, without a national drug plan, these resources are not enough to address the rising costs.

Changes to the Pharmacare program this year include coverage for new drugs like Gleevec and Pegetron effective May 1 and an increase in deductibles effective July 1, 2003.

For the majority of beneficiaries, this will mean an increase of between one and five dollars per month. This Budget supports a projected 26% increase in Pharmacare costs this year.

All across the province Manitobans are emphasizing the importance of child care. High-quality child care contributes to early child development and helps families with young children find and hold jobs. In communities like Neepawa, expanding child care is also seen as a critical strategy for attracting and keeping young families.

Budget 2003 contributes an additional $6 million to our five-year plan for affordable, accessible and high-quality child care. This brings our total commitment to $76 million. Funding for child care has increased by $22 million, or 41.5 percent over four years.

Budget 2003 continues the vital programs of Healthy Child Manitoba, which has provided 5000 mothers with financial assistance and nutrition education in the first year of its Healthy Baby program; has restored and expanded parent-child programs. Today there are 26 across Manitoba increased resources for fetal alcohol syndrome prevention and implemented the Healthy Schools Initiative to provide opportunities for schools and families to work with public health nurses to improve health outcomes.

In total, Budget 2003 will invest $115 million in early childhood development. With the continued support of the federal government, we are helping families meet the needs of today to ensure success for children and families in the future.
We are taking a historic step in Manitoba and fulfilling an Aboriginal Justice Inquiry recommendation by providing authority for off-reserve First Nations and Métis communities to take responsibility for the welfare of their children.
As well, last year our Government funded a permanent applied behaviour analysis program for preschool children with autism. Budget 2003 doubles the resources for the ABA program to accommodate all of the children currently on the waiting list.

In 1999 we promised to phase out the National Child Benefit clawback. This Budget ends the clawback for all families by January 1, 2004.
Income assistance remains an important part of the social safety net. This Budget increases general income assistance rates for individuals by 4.5 percent and by an equivalent amount for persons with disabilities, effective January 2004. This will help provide greater flexibility and dignity for citizens on assistance.

We are also changing income assistance regulations to allow persons with disabilities to establish trust funds that can be used to improve their quality of life without reducing their benefits.

Manitobans place a high priority on decent housing, vibrant neighbourhoods and safe communities. Four years ago we introduced a co-operative approach to community revitalization, forming partnerships with families, neighbourhood organizations and other levels of government. In place of centralized programming we created a community resources tool kit that residents can draw on to meet their goals.

Neighbourhoods Alive! will invest $6.7 million in 2003-04 to revitalize older communities through community-based housing, employment, education and safety initiatives.

The Winnipeg Housing and Homelessness Initiative, a partnership of the Province with the City of Winnipeg and the federal government, will add up to 1100 housing units approved for renovation and construction since 2000.
Building Communities will continue with its $7-million plan to renew housing and infrastructure in older neighbourhoods.

Our Lighthouses program will continue to provide young people with a safe place to play and study in more than 20 schools and community centres across Manitoba.
Budget 2003 builds on our achievements. We are providing support for the new $50.8-million affordable housing agreement with the federal government. This agreement will deliver at least 2500 housing units to low- and moderate-income families over the next five years.

I am pleased to report that this is the largest investment in quality affordable housing in Manitoba in a decade. It is a fund of $50 million. We are also taking strong measures to deal with those that threaten the safety of our neighbourhoods. We are providing unprecedented levels of support to law enforcement across Manitoba. We are funding the RCMP up to full complement. We have increased funding for provincial policing by $13.2 million or 23.6 percent since 1999. We are expanding the Victims' Bill of Rights services to deal with offences against children, and we are appointing a new co-ordinator for child victim cases to ensure timely and effective prosecution of offences.

We are countering bullying with the Safe Schools Manitoba program. Under new legislation police can now apply to the courts to shut down businesses operating as fronts for organized crime. We have enhanced support to the Criminal Organization and High-Risk Offenders Unit, which targets gangs and predators.
Since 1999 our Government has increased the Prosecutions budget by 58.7 percent. We are also improving access to family law related services by increasing funding for Family Law Legal Aid by 31 percent this year and by providing two new regional family law lawyers.

Today’s Budget also channels increased investment into joint police efforts to counter organized crime, adds new resources to address recommendations of the Aboriginal Justice Implementation Commission, and invests in a new Seniors’ Home Security program.

Achievements in health, education and community development depend on a stable and growing economy. Our diversified economy has served us well during the current period of economic uncertainty.

Manitoba had the lowest unemployment and youth unemployment rates in the country in 2002, with a record 69.2 percent of working-age Manitobans participated in the labour market. Our economy created 9100 jobs last year, 75 percent in the private sector. Retail sales were up 6.9 percent, the highest annual increase in five years. Manitoba's per capita personal disposable income increased 11 percent over the last three years, and merchandise exports to the U.S. increased in each of the last two years at a time when Canadian exports to the U.S. were falling.

Investments in Manitoba can deliver strong returns for investors and create new growth, opportunities and jobs for the benefit of all Manitobans.
Recent capital investments to Manitoba include J. R. Simplot’s $150 million in the first phase of a new potato processing plant in Portage la Prairie; Biovail Corporation’s $25-million expansion of its biopharmaceutical facility in Steinbach; Monarch Industries' $13-million renovation and expansion of its Winnipeg facility; and Cormer Group's $13-million expansion to increase its supply of precision machining services.

The Premier's Economic Advisory Council concluded that local investments have the potential to deliver returns to investors and provide diversification benefits. Working with the advisory council, we created a Local Investment Council focussing on capital retention to encourage local investments.
Our economic prosperity depends in part on putting our savings to work here at home. Our existing labour-sponsored investment funds, Crocus and ENSIS, have been very successful in this regard. Their combined capital totals $270 million, up from $122 million in 1999. Together these funds have invested in over 80 Manitoba firms.

Today I am pleased to announce that we are extending this approach from the provincial level to the community level by introducing the Community Enterprise Development Tax Credit. This credit will provide Manitoba communities with further means to draw upon local savings to support local investment. Qualifying investments in individual community enterprises or in pools that will invest in community enterprises will be eligible for a 30% personal income tax credit on investments up to $30,000.

Following up on a recommendation from the Premier's Economic Advisory Council, the Government is working with communities and the private sector, both inside and outside our province, to promote a positive image of Manitoba to potential investors, vacationers and immigrants.
The province is establishing the Manitoba Ambassadors program, which will involve leaders in business, labour and education in promoting Manitoba. Ambassadors will use their own networks, expertise and participation in trade missions to raise the profile of trade, investment and tourism opportunities in Manitoba.

Last November Manitoba reached an agreement with the federal government to increase the number of immigrants who can come to Manitoba under the Provincial Nominee Program. The new agreement with the federal government and the City of Winnipeg also supports increased private refugee sponsorship to Manitoba.
Our target is to more than double the number of immigrants to 10 000 per year. Budget 2003 supports that goal by funding a new Manitoba Council on Immigration, which will co-ordinate settlement supports and employment opportunities, and, in co-operation with the federal government, increase funding for immigrant settlement services by over $718,000.

Research and innovation are key to continued growth and increased economic productivity. In fact, expenditures in research and development now account for about 1.2 percent of our gross domestic product, fourth highest among the provinces.

Provincial support for research and innovation includes $9 million for the Richardson Centre for Functional Foods and Nutraceuticals; $5 million for the I. H. Asper Clinical Research Institute at St. Boniface general Hospital; and an $8-million contribution for the renovation and expansion of the Portage la Prairie Food Development Centre.

Budget 2003 builds on these investments by increasing the amount available through the Manitoba Research and Innovation Fund, supporting a new biotech training strategy in partnership with Red River College and Biovail and continuing to support private research and development through the Manitoba Research and Development Tax Credit.

We are working with Manitoba communities and businesses to promote the use of the Internet for commerce and education. Our Community Connections program has created 600 public Internet sites and supported the Churchill Community Network, the first community-owned Internet service provider in the province.
Manitoba Telecom Services is expanding its next generation service program to 60 Manitoba communities. The provincial data network is being upgraded to enhance broadband access for hospitals and provincial government buildings. Manitoba Hydro's infrastructure is being used to provide Internet access where communities have identified a need.

Our Government service delivery innovation includes: Service Manitoba, business service centres and bilingual community service centres.

Manitoba Hydro is a cornerstone of the Manitoba economy. Its low-cost, renewable, reliable electric power gives every business in Manitoba a competitive edge. Manitobans enjoy the lowest electricity rates in North America.

Recently Manitoba Hydro renewed a contract with Xcel Energy in Minnesota that will result in $1.7 billion in export sales. Discussions are continuing with neighbouring provinces and the federal government on expanding the power transmission grid to increase exports.

Manitoba Hydro is considering the construction of three new generating stations in northern Manitoba. Together these would be the largest construction projects in Manitoba in decades.

These mean significant long-term economic benefits for northern Manitoba and the province. Manitoba Hydro is working toward partnership agreements with First Nations to ensure that these communities share in the training opportunities, employment and profits that hydro development brings.
Our publicly owned hydro utility will continue to play an important role in attracting investment to Manitoba and creating quality jobs for young Manitobans.

Our new water management and conservation policies address the unique concerns of each region in Manitoba. The key priorities are protecting the quality of our drinking water, drainage and flood protection.

Our Government created an office of drinking water and increased monitoring of water quality, introduced a 70% subsidy for the testing of private drinking water, initiated ground-water testing of 1000 wells in agricultural areas, and strengthened ring dikes in the Red River Valley.

Last year the Province spent $10 million on drainage-related water projects in rural Manitoba. Budget 2003 increases spending on drainage initiatives by an additional 10 percent.

Since April 2001, we have invested over $40 million in upgrades to drinking water and sewer systems throughout rural and northern Manitoba. Over the last three years 45 northern communities have benefited from improved drinking and waste water treatment resulting from a provincial commitment of $26 million.
This Budget will establish the Red River Floodway Authority to oversee the planning and construction of an expanded floodway, a project that will create 3500 jobs and protect against a flood with a one in seven hundred years probability of occurrence.

The province and federal government recently announced $160 million to begin the first phase of floodway expansion, which will double the capacity of the existing floodway and will include dredging and bank stabilization north of the outlet.

Since the flood of the century the province and federal government have spent $110 million on flood protection outside Winnipeg, including an extensive community ring dike program which protects 1800 homes and businesses in areas such as Grande Pointe, Ste. Agathe, Emerson and St. Pierre-Jolys.
In a province as large and geographically diverse as Manitoba, transportation is crucial to economic development and quality of life in each region.
We are in the second year of a five-year, $600-million highway construction program, and budgeting $120 million this year. This Budget also provides $6.8 million for highway maintenance.

Agriculture and the rural landscape have undergone tremendous change over the past decade. We want to work in partnership to provide the framework and support within which rural communities can adapt to this change and continue with diversification.

Conservation districts have become highly effective partnerships between the province, local municipalities and farmers. Funded jointly by the province and municipalities, the number of conservation districts has grown from nine to sixteen in just over three years.

Our reduction in the taxable portion of farm property put $7 million annually back in the hands of producers. Since 2000 we have provided $220 million of disaster assistance and have improved crop insurance coverage for excessive moisture to Manitoba farmers.

Our Bridging Generations Initiative has provided $14.5 million to assist in intergenerational farm transfers and to support the next generation of young farm families. Since 1999 we have invested over $9 million in rural projects, resulting in over $25 million in capital spending and 1176 jobs.

Livestock is one of the fastest growing areas of opportunity for Manitoba farmers and is generating $250 million to $300 million in investment each year. We continue to work with industry and rural communities to ensure the environmental sustainability of the livestock industry in Manitoba.

This Budget maintains support for the Fisheries Enhancement Initiative and the Northern Fishermen’s Freight Assistance Program. We will work with all Manitobans whose livelihood depends on the fisheries to ensure a sustainable industry.

Budget 2003 continues to support agriculture and rural communities through a 7.4% increase for risk management and farm support programs; $43 million for the new Net Income Stabilization Account program; and Hometown Manitoba, a new program supporting community-driven projects to build community pride by improving the appearance of public spaces and business; as well, a new Operating Credit Guarantee program which will leverage $60 million in private sector loans for farm operating expenses and provide funding to expand and renovate the Food Development Centre in Portage la Prairie as well as another $6.5-million contribution to the Prairie Grain Roads program; as well, a 28% increase in capital grants to further expand the number of conservation districts; a two-year extension of the sales tax exemption on manure slurry tanks and lagoon liners; and support for the ethanol mandate that will create new markets for our grains, add jobs in rural Manitoba communities and generate high-protein co-products to benefit our livestock industry.

We are also committed to improving the quality of life for rural residents through such specific new measures as increasing support to rural libraries by 13 percent, equalizing hydro rates and providing resources to improve recreation centres in The Pas and Dauphin.

Our Government also recognizes that quality of life is about investing in education, the environment and health care. Since 1999 we have recruited and retained more rural doctors, expanded rural home care and provided 70 new ambulances. Last year there were 530 licensed doctors in rural Manitoba, up from 498 in 1999.

Budget 2003 builds on these accomplishments by installing new CT scanners in Steinbach, Boundary Trails, and Selkirk hospitals, by providing expanded dialysis services in Portage la Prairie, Island Lake/Garden Hill, Boundary Trails and providing new equipment such as a computerized radiographic system and a chemistry analyzer for the Neepawa Hospital.

Manitoba’s northern development strategy is also based on the conviction that the priorities, strengths and experiences of the people in the North must guide northern development.

Budget 2003 provides increased funding for northern housing, employment and training, health, transportation and economic development initiatives.
In preparation for new hydro construction, we have already committed $10 million to pre-project training for northerners. This is the first stage in a proposed $60-million training initiative developed between First Nations, the governments of Manitoba and Canada and Manitoba Hydro.

Transportation is of critical importance in the North and is among the top priorities in our northern development strategy. Budget 2003 underlines our commitment to upgrading transportation in the North.

Mining remains a mainstay of the northern economy. The most recent offering of our Mineral Exploration Assistance Program resulted in $15.2 million in private sector investment for mineral exploration. Last year we supported 41 new projects, which were undertaken by 35 companies.

The Northern Forest Diversification Centre in The Pas has received national recognition for its work in assisting residents of northern communities to harvest, process, and market non-timber forest products. Budget 2003 supports an expansion of the centre’s work.

We are committed to working in partnership as well with the Canadian Wheat Board and other stakeholders to increase shipping at the port of Churchill, the Prairies' only deep-sea port.

Budget 2003 provides up to $1 million to ensure the continued operation of Canada’s midcontinent gateway to the world.

We are continuing with the revitalization and rebuilding of our urban communities. We have developed a dynamic set of partnerships with community organizations, the private sector, civic governments, and our universities and colleges.

Winnipeg is a vibrant and diverse capital city with world-class amenities and a tremendous quality of life. The province is proud to work co-operatively with the City to rebuild our downtown and urban neighbourhoods.

Major projects in Winnipeg include completion of the Red River College downtown campus; the Millennium Library; True North Entertainment Centre; Waterfront Drive in the Exchange District, the expansion of CanWest Global Park; and a new downtown Manitoba Hydro headquarters.

To promote growth in our film and recording industries, this year we are increasing support by $1 million for Manitoba Film and Sound.

The Community Places program will receive a $500,000 increase to improve community recreation facilities all across the province.

Important community investments are being made in Brandon and Thompson. Downtown Brandon will soon have 77 more new or renovated rental housing units for families with low and moderate incomes, bringing the total number of revitalized housing units in that city to approximately 400. The province has also provided support for Brandon’s future by expanding the Assiniboine Community College campus. We are currently supporting feasibility studies on future expansion options.

Through the Canada-Manitoba Infrastructure Program, we are supporting a new regional community centre in Thompson.

In March, Neighbourhoods Alive! announced funding for a homeless shelter and a child care centre in Thompson.

Brandon’s economy has benefited from a $58-million capital construction project for the Brandon Regional Health Centre. This represents the largest investment in health care ever made in western Manitoba. As well, Brandon has benefited from a provincial government commitment to multiyear funding for Brandon’s Keystone Centre; from a commitment by the provincial government to support to Maple Leaf Foods to help the company meet its labour force needs; a $3 million loan to ensure local ownership of McKenzie Seeds; a $5-million upgrade to the nursing facilities at Brandon University; and support for Smart Communities, which involves connecting communities in Manitoba to larger centres, with the ultimate goal of providing resources and technology to remote, rural and urban areas in Manitoba.

Strategies have been developed for marketing the rapidly growing adventure travel and ecotourism industry along with cultural, Aboriginal and heritage attractions.

Funding for tourism marketing has been increased by $750,000 in Budget 2003 to maintain our competitive position in key markets and to encourage fellow Manitobans to experience the many attractions here.

Manitoba’s support for the arts is among the strongest in the country. This Budget provides an overall 6.1% increase to the Manitoba Arts Council. In partnership with the federal government and the City of Winnipeg, we are working to secure the future of the Winnipeg Symphony Orchestra.

Today is Earth Day. Environmental stewardship is a priority in any constructive plan for the future. Manitoba has taken a leadership position on a number of key environmental issues.

A new provincial park will soon be added to the Caribou River, Pembina Valley and Trappist Monastery provincial parks that we have announced recently. We have fully protected all or part of 21 wildlife management areas and extended park reserve status to East Paint Lake and Manigotagan.

Also, to support the ecotourism industry we have provided a grant to the Narcisse snake dens and developed a Watchable Wildlife initiative.

We have committed to exceeding Kyoto accord targets for the reduction of greenhouse gas emissions. The Kyoto accord offers Manitoba a number of economic opportunities. We are a continental leader in the production of clean, renewable energy.

Our action plan on climate change will allow us to build on this advantage. The plan is grounded in Hydro investments in conservation and in generating stations with low environmental impact and in our ethanol initiative. It encourages research and development of wind power, solar energy, hydrogen fuel cells and geothermal heat pumps.
This diversification capitalizes on our strengths, creates local employment and protects the environment.

We are broadening the Manufacturing Investment Tax Credit to include investment by businesses in equipment that uses energy more efficiently, or produces energy for the producer’s own consumption from environmentally friendly sources such as wind power.

This measure will ensure that Manitoba firms are more competitive by reducing energy costs while also reducing pollution and helping to meet Canada’s Kyoto targets.

A provincial action plan to help protect Lake Winnipeg, including the establishment of a new Lake Winnipeg Stewardship Board and new regulations to prevent erosion and reduce nutrient run-off has recently been announced.
We are continuing with the broad-based community planning process for the east side of Lake Winnipeg with the goal of improving transportation and creating increased economic opportunity in a manner that is sustainable and fits with community goals and values.

We are building on our commitment to create over a thousand new cottage lots and 1900 new campsites by providing $750,000 for cottage lot development and campsite improvement inside and outside provincial parks.

This Budget focuses on the priorities of Manitobans, maintaining a robust economy and building a strong education and health care system. It also provides a connection to the future.

In a turnaround from the 1990s, more young people are choosing to make Manitoba their home. This Budget provides a package of incentives to further encourage young people to remain in Manitoba, including a new 10% tax credit, up to a thousand dollars per student, for employers providing work placements for co-op education students. This measure encourages employers to attract students from recognized training programs from within and outside Manitoba. We are also doubling the interest-free period on Manitoba student loans to one year from six months and another significant personal income tax reduction for the middle-income tax bracket.

Since Budget 2000 we have introduced meaningful and sustainable tax reductions each year. Today I am pleased to announce further personal and business tax relief.

Highlights of our new personal income tax reductions include lowering the personal, middle-income tax rates by 6 percent in Budget 2003, saving taxpayers $40 million annually. This will bring the total personal income tax reductions to $220 million since Budget 2000, the largest four-year budget reduction in the history of the province. In 2004 a single-earner family of four, earning $60,000 will save more than $1,400 annually as a result of these reductions.

Our Government recognizes the particular burden faced by many seniors in paying property taxes. I am pleased to announce today that the maximum Education Property Tax Credit for seniors will rise to $800. Seniors and other taxpayers will also benefit from other property tax cuts, including the continuing phase-out of the Residential Education Support Levy (ESL), which has been cut by 27 percent over the past two years and now saves taxpayers $27 million annually, and as well the $150 increase in the Education Property Tax Credit, which now saves taxpayers $53 million annually.
In 2003, our education support levy reductions will save homeowners $119 on a $125,000 home. When combined with the $150 increase in the tax credit, this homeowner now saves more than $250 each year.

Together our personal income and property tax cuts will save our citizens $300 million annually. This is significant tax relief for Manitobans and their families.

In the last three years small-business tax rates fell by 37 percent. We have increased the amount of taxable income eligible for the small-business income tax rate. We introduced the first cut in general corporate income taxes since the Second World War. That continues through to 2005. As of January 1, 2004, the rate will drop to 15.5 percent.

Building upon our previous tax reductions for both small and large businesses, I am pleased to announce further tax relief for companies that are actively expanding their operations in Manitoba.

Today’s Budget will exempt all corporations from paying tax on their first $5 million of capital. This is designed to encourage investment by businesses of all sizes and will be of particular benefit to small, growing firms which will now face much lower taxes when they cross the $5-million threshold. This Budget extends for three years the Manufacturing Investment Tax Credit, which has proven effective in promoting investment in our province’s large and diversified manufacturing sector. This credit has also been enhanced for businesses that invest in energy-efficient equipment.

For the 2002-03 fiscal year, we are projecting a positive balance of $4 million under the terms of the balanced budget legislation and a dept repayment of $96 million. The 2002-03 draw from the Fiscal Stabilization Fund of $77 million will be used entirely for the $96-million debt and pension repayment.

Budget 2003 projects a positive balance of $10 million under balanced budget legislation. For the fourth straight year the province will commit $96 million to paying down the debt and pension liability with a draw of only $48 million from the FSF. This will go entirely towards our debt and pension liability.
We have balanced the Budget in each year of our mandate, a balance that has been achieved at the same time as we have paid down debt and pension liabilities by a total of $384 million.

While other jurisdictions have run deficits and cancelled or suspended debt payments, we have continued to make significant progress in this area over four budgets.

Our Government is committed to improving efficiency and ensuring that taxpayer dollars are spent efficiently on our highest priority programs. A cross-departmental initiative will examine what we do and how we do it.

In the coming year departments will be challenged to justify their expenditures, to improve methods of operations and to deliver the services Manitobans need most. This initiative will reduce costs and increase in-year savings.
The international financial community has recognized our prudent fiscal management over the past four years.

Earlier this year, Moody’s Investors Service improved our credit rating from AA3 to AA2. Debt servicing costs are down, leaving more revenue for priority public programs. Moody’s noted, and I quote: "The province’s prudent fiscal framework is well entrenched and should continue to generate positive results leading to further easing of the debt burden in coming years."

In 1961 the Manitoba Government stopped funding the pensions of civil servants and teachers. By 1990 pension liabilities had grown to $1.2 billion. In 1999 this liability had grown to $2.7 billion. Left unattended this would have grown to well over $10 billion by 2035.

We took immediate action in 2000, introducing the first ever plan to deal with the pension liability. We are continuing to take action. In addition to the funds allocated for debt and pension liabilities in Budget 2003, each hiring department or government agency must now fund the full pension costs of each new employee.

The medium term fiscal framework projects continued balanced budgets into the future. There will be challenges from areas of cost pressure such as health care, and revenue growth will be influenced by national and international events.

As in past budgets we are focussed on the priorities of Manitobans. Our plans include strong schools and training for success; quality public health services; healthy families in secure communities; an innovative economy that provides real opportunities; and affordable government.

Our achievements are significant in each of these areas. For four years in a row we have balanced the budget, contributed to reducing debt and pension liabilities, reduced taxes and made strategic investments in education, health care and our communities.

With these investments, we are creating exciting new educational opportunities, developing health care technologies, diversifying our agricultural sector and tapping into a range of new and clean energy sources.
Manitoba is one of the best places to live in the world. Our communities are safe, our cost of living is low, our quality of life is high, our economy is strong.

With this Budget we are continuing to build on our advantages to keep young people here and attract newcomers in ever-growing numbers. Budget 2003 is about providing more opportunities today while building for our future.

Thank you, Mr. Speaker.