Province Législature Session Type de discours Date du discours Locuteur Fonction du locuteur Parti politique Nouveau-Brunswick 53e 1e Discours sur le Budget 15 février 1996 M. Edmond P. Blanchard Ministre des Finances PL Mr. Speaker, the budget I am tabling today will build on our vision of a New Brunswick rich in jobs, fiscally secure and self-sufficient. A responsible budget will lead to lower taxes and appropriate and affordable programs and services. We have made great progress and. with continued good fiscal and economic management our goals for a prosperous, secure and self-reliant New Brunswick will be achieved. It builds on this government's long-standing policy of planned and consistent fiscal management responds to major reductions in federal transfer payments for social programs; protects key programs and services, particularly in health care and education; includes no new taxes and no tax increases, and builds on the Province's solid record of assisting public employees affected by expenditure management. Mr. Speaker, out of necessity, last year's federal budget was the most difficult we have seen in years. Ten years ago, Canada's net public debt stood at $241 billion. In fiscal 1995-1996, it has climbed to an astronomical $579 billion. Canada has not seen a surplus budget in 25 years. It is clear that the federal government must deal with its fiscal situation. New Brunswick's greatest financial challenge in 1996-1997 and in the years ahead is a result of the 1995 federal budget which announced reductions in transfer payments for social programs. These reductions mean that, over the next two fiscal years, we have to find $150 million more just to cope with the impact of the implementation of the Canada Health and Social Transfer. The Canada Health and Social Transfer will replace federal transfer programs in support of health care, post- secondary education and income assistance. The fact remains that measures to reduce the federal deficit are having a significant impact on New Brunswick. In 1986-1987, 40.1 % of New Brunswick revenues came from the federal government. By 1995-1996, this had fallen to 38.4%. By 1997-1998, it will have fallen to 34.0%. It is clear that New Brunswick cannot put off until tomorrow what we must do today. By dealing with these cuts now, we can avoid falling back into the deficit and debt trap again. By acting now, we will avoid the drastic measures we have seen employed in other provinces. As we have done in the past, we will confront our fiscal challenge while making every effort to minimize the impact on public services to New Brunswickers. We will also do everything we can to minimize the effect of this budget on public employees. We will continue to treat our employees fairly and responsibly. The 1996-97 budget is responsible and forward looking. It deals with the problems facing New Brunswick now, and it sets the stage for prolonged economic prosperity as the province continues to move toward self-sufficiency. Mr. Speaker, the provincial economy is strong. Last year, the Gross Domestic Product (GDP) increased by 2.5% in real terms. This coming year it is expected to grow by another 2.5%. The change in the components of GDP represents the most compelling evidence that the New Brunswick economy is steadily moving towards self-sufficiency, and is on a strong, productive growth path. For example, the growth of the private sector economy was almost 4% in real terms in 1995. In 1996, the trend is expected to continue, with an increase of around 4% for the second year in a row. Growth in the private sector economy is indicative, Mr. Speaker, of its confidence in our economy. Mr. Speaker, in 1995 New Brunswick led the nation in many respects. Manufacturing shipments rose by 14% compared to 12% nationally. Exports were up by 26% in New Brunswick for 1995 and in Canada they increased by 19%. New Brunswick investment increased by 13% compared to 2% for the country as a whole. Mr. Speaker, this is concrete evidence of progress that results in job creation. Last year we saw progress in terms of employment growth in New Brunswick. Employment averaged 314,000, up 7,000 from 1994. This is a record level for the province-the increase of2.1 % exceeded the national growth rate of 1.6% and of all provinces except for Prince Edward Island and Alberta. Mr. Speaker, in 1995 New Brunswick led the nation in many respects. Manufacturing shipments rose by 14% compared to 12% nationally. Exports were up by 26% in New Brunswick for 1995 and in Canada they increased by 19%. New Brunswick investment increased by 13% compared to 2% for the country as a whole. Mr. Speaker, this is concrete evidence of progress that results in job creation. New Brunswick and British Columbia were the only two provinces in Canada to register employment growth in every one of the last four years. During this period, New Brunswick's unemployment rate dropped from 12.8% to 11.5%, its lowest level in 15 years. These improvements in the labour force certainly reflect a dynamic economy. Mr. Speaker, a strong economy depends on a strong fiscal situation, and vice versa. There is an interdependent relationship between taxes, government spending and economic growth. The fiscal side relies on the economy to produce enough revenue to pay for essential services and programs, and the economy depends on the right balance and levels of revenues and expenditures to ensure that economic growth, jobs and investment are enhanced. In other words, fiscal discipline builds on itself. It inspires a healthy confidence in our long-term future. It attracts investment from the private sector which leads to increased job creation and economic expansion. In short, Mr. Speaker, job creation is the government's number one priority-and good fiscal management is the best possible job creation strategy. Mr. Speaker, I now want to briefly review the fiscal strengths of New Brunswick, which will help us deal with the challenges ahead. One of our most important strengths is our credit rating. According to Standard & Poor's, New Brunswick's credit rating is now the third best in the country, behind only Alberta and British Columbia. This is significant, because the credit rating of the Province is perhaps the most objective assessment of our fiscal and economic strength and potential. It is clear that the last eight budgets have had a major impact on the ability of the Province to borrow money at lower rates. Our solid credit rating also clearly demonstrates that we have the domestic and international confidence of those who professionally assess the economic strengths of all provinces. Mr. Speaker, New Brunswick's debt burden is among the lowest in the country. Again, Standard & Poor's have calculated this measure, and, based on its assessment, New Brunswick has the fourth lowest debt burden as a percentage of GDP among all provinces. Tax burden measures all tax revenues in a province as a percent of Gross Domestic Product. New Brunswick also has one of the lowest tax burdens in the country. We have achieved this while making great strides in balancing our budget and reducing our debt. We have also accomplished this without sacrificing essential programs and services, In fact, in many cases, government services have been improved and enhanced. Mr. Speaker, the recently published projections show that the anticipated budget surplus for the current fiscal year will be achieved. In fact, it appears that it may even be higher than forecast. This is important. The favourable results produced through responsible and careful management in the 1995-1996 fiscal year will help us face the difficulties confronting us in 1996-1997, and the years ahead. Mr. Speaker, the fiscal projections for 1995-1996 are encouraging. We have turned the comer and in 1995-1996 will have reduced net debt as a result of budgetary actions for the first time since 1979-1980. These results also guarantee that the requirement to balance the ordinary account for the 1993-1994 to 1995-1996 period will be met. In fact, we will have exceeded the requirements of the balanced budget legislation for the 1993-1994 to 1995-1996 period by a large margin. We are respecting our fiscal commitments. Mr. Speaker, as I indicated, we have our fiscal house in order, and have balanced our books to the point where we are now beginning to pay down debt. This year (1995-1996) we will make a direct payment on our debt. At $75.9 million, this will be one of the largest payments made on provincial debt in the country. All New Brunswickers can be proud of this achievement. Mr. Speaker, as I indicated, we have our fiscal house in order, and have balanced our books to the point where we are now beginning to pay down our debt. This year (1995-1996) we will make a direct payment on our debt. At $75.9 million, this will be one of the largest payments made on provincial debt in the country. Almost every government in North America is facing the challenge posed by a steady build-up of debt during the past two decades. The debt load is crushing in some jurisdictions. It acts as a drag on the economy. It acts as a barrier to job creation. It demands huge interest payments that divert money from health care and other social programs and services. It delays the kind of tax relief that people eagerly await. In New Brunswick we face this challenge, too. While our net debt as a percentage of GDP is the fourth best in the country, and is less than half the federal debt ratio, we must continue to reduce debt levels. One year of modest debt reduction is not enough. There must be sustained reductions in debt to better position ourselves to achieve self-sufficiency. There is no better recipe for job creation than a strong fiscal environment. We must reduce the debt because the debt service costs are eating up about 13% of our total budget every year. In terms of dollars, this is about $600 million a year. This is too high a price to pay for interest payments every year, forever. New Brunswick needs that money for program funding and tax reductions. Every dollar we put towards the debt takes us one step closer to a stronger fiscal position, a more vibrant economy, a lower unemployment rate, a self-sufficient province-in short, a better and stronger New Brunswick. During this session, I will be tabling a long-term debt reduction plan that will lead to less money going to the bankers in interest payments and more money available for important programs for ordinary New Brunswickers. Mr. Speaker, I would now like to review the year ahead and the implications for future years. Mr. Speaker, projections for the 1996-1997 to 1999-2000 period were provided in the budget last year. Those projections showed sufficient surpluses to meet the requirements of the balanced budget legislation assented to last year and significant reductions in the Province's net debt. In fact, projections showed that, over the four-year period, the cumulative surplus, or the reduction in net debt would be in the order of $240 million. As noted earlier, in preparing the budget for 1996-1997, the single most difficult challenge the government had to face was how to continue to reduce the net debt of the Province in light of the large cuts in federal transfer payments that support our social programs. A $1 50-million cut in two fiscal years was a challenge. Failure to face up to this challenge would put us back in a serious deficit position, a position of increasing debt, a position not in New Brunswick's best interest. Mr. Speaker, there really is only one responsible way to reduce the Province's net debt, and that is to aggressive control spending. To simply wait for the economy to produce enough revenue is sheer folly, as some provinces have discovered. To rely on the federal government is also not realistic. Given the size and nature of its own fiscal problems, Ottawa is sending us less money-not more. Tax increases are also unacceptable; in fact, this government's objective is to reduce taxes in this mandate. With debt reduction as our overall fiscal objective, borrowing is not an option if we are ever going to live within our means and become self-sufficient. And, while a growing economy will help in the future, the only way to ensure we deal with our debt problem is to keep taxes down and maintain a strong fiscal position. Mr. Speaker, expenditure restraint, expenditure management, innovation in program delivery and restructuring of important programs and services form the basis of this budget. This house will hear details of these efforts when ministers present their estimates in the coming days and weeks. Mr. Speaker, it is essential that strong action be taken in 1996-1997 to deal with the problem of the reduction in federal transfers. To wait even one more year would result in large deficits for 1997 and 1998 and beyond. The original projection last year of cumulative budgetary surpluses of $240 million for the years 1996-1997 to 1999-2000 would become a total deficit of at least $112 million if we did nothing in this budget. Instead of the Province's net debt being reduced by $240 million over the next four years, it would have increased by $112 million. That is why, Mr. Speaker, we have met the challenge in this budget and introduced measures to ensure that the years ahead do not consist of perpetual deficits and increasing debt. This government has taken a steady, methodical approach to managing New Brunswick's public finances. That approach has served New Brunswick well in the past. It will continue to serve the Province well now, and in the future. Developing the 1996-1997 budget has meant eliminating overlap and duplication, and finding better and less expensive ways to offer services to New Brunswickers. As a result of careful management, growth in overall budgetary spending for I 996-1 997 will be limited to 0.8%. This is less than the rate of inflation. As a result of keeping spending growth at this level and with revenues forecast to grow at 1.2% in 1996-1997, a significant reduction in net debt of $92.9 million will be achieved. It is very important to reduce net debt by a large amount in the coming year. This is necessary, because with the reduction in transfers in 1997-1998, a deficit and increase in net debt would occur in 1997-1998 if action is not taken immediately. This result would have a negative impact on our economy, as well as on our fiscal situation. Although revenues actually fall by almost I % in 1997 -1998, strong fiscal management in 1996- 1997 results in a small budgetary surplus of $18.6 million for 1997 -1998. By the end of the planning period, a larger reduction in net debt is achieved, and that is the fiscal dividend from taking action now. Mr. Speaker, the multi-year spending targets provided to departments for 1996- 1997 and subsequent years are consistent with this fiscal plan. The budget for 1996-1997, and the projections for the years ahead, demonstrate clearly why it is important for New Brunswick to face the problem of federal transfer cuts head-on. That is what we have done in this budget. We have restrained growth in government spending to ensure that New Brunswick does not fall into the deficit and debt trap-a trap from which so many other jurisdictions are attempting to escape. The fact that debt service costs are falling next year is ample evidence that the fiscal plan and the elimination of deficits are having an impact. Now I would like to turn my attention to the expenditure plan underlying these budget projections. Mr. Speaker, in planning expenditures for the year ahead, we have assured that basic programs and services have been protected. We have ensured that those important programs and services remain and are operated as efficiently as possible. This budget wil1 incorporate a number of measures to reduce expenditures. This will be done by streamlining government and by the elimination of some services. Ministers will provide details during the presentation of their estimates. This budget signals new policy directions and services in the health-care field, education, agriculture and natural resources. This budget will also place strong emphasis on economic development and, as always, on job creation. Getting more people into the workforce is the top priority of this government. New Brunswickers deserve the dignity of work, and they deserve a chance to be self sufficient. We will continue to pursue our policy of "jobs first" because revenues generated as a result of increased employment will help us deal with the federal transfer cuts described earlier. Mr. Speaker, I am pleased to announce that the budget provides for $16.8 million in strategic assistance. These funds have the potential to create 3,000 jobs, very good news indeed for all New Brunswickers. In eliminating the deficit, and now, in beginning to pay down the debt, we have always kept in mind that people do not want to lose their sense of well-being. That is why our budgets have protected key social programs and delivered them in a fair and compassionate way. That continues to be our approach. Mr. Speaker, one of the major challenges we face is sustaining a relevant, caring, publicly-funded health-care system. Health, with the largest share of dollars that our government spends, has to playa very major part in government's overall expenditure management plans. The Minister of Health and Community Services outlined earlier this week a three-year strategy of reforms in healthcare that will maintain a manageable rate of growth. The document, Making Health and Community Services Sustainable, focuses on the sustain ability of priority health and social programs. This is not a new approach, Mr. Speaker. This province was among the first to seek out new and innovative ways to manage our health-care dollars wisely. Our health and community services system has undergone major changes in recent years-changes that were necessary to protect the future of the system and to protect those most at risk. For example, the hospital system was consolidated into eight regional corporations, a new funding formula for hospitals was devised, extra-mural services were expanded across the province, a long- term care strategy was put in place to coordinate services and assessment needs for the elderly and the disabled. At the same time, this government financed new construction and renovations in order to complete New Brunswick's network of regional hospitals. This financing also allowed hospital facilities to expand their capacity to provide outpatient and specialized services. We opened a cardiac care unit in Saint John, offered services for at-risk mothers and children, and set up breast cancer screening services for women across the province. We have made progress in reducing surgical waiting lists and will continue to strive for improvements. In fact, Mr. Speaker, Health and Community Services' spending has increased yearly since 1987. In 1987-1988, spending on the ordinary account for Health and Community Services was $855.9 million. In 1995-1996, it stood at $1,240.1 million. Its budget is still growing, although at a much more sustainable pace. Over the same period, this government has spent more than $450 million on hospital construction. I am pleased to announce another increase this year. The amount directed toward the ordinary account budget for Health and Community Services is $1,257.7 million. As in our previous budgets, we pledge to continue to do whatever is necessary to sustain a relevant, caring, publicly-funded health-care system, where access is guaranteed-regardless of an individual's financial resources. While we are in times of fiscal restraint, government continues to believe that sustaining our health-care system and protecting people most at risk are top priorities. This has been reflected in the 1996-1997 budget. I am pleased to announce another increase this year. The amount directed toward the ordinary account budget for Health and Community Services is $1,257.7 million. Similarly, in education, this government has concentrated on trying to provide New Brunswick students with the best education for today's technological society. Mr. Speaker, the Excellence in Education initiative saw $61 million invested to improve our education system. Some of this money stemmed from administrative changes such as reducing the number of school districts. Funds were then re-invested into remedial, enrichment and stay-in-school programs. Early intervention and kindergarten were established as priorities. We also funded a provincial testing program, strengthened the curriculum, and put more effort into combining classroom experience with on-the-job training for our young people. We made computer literacy a requirement for high school graduation, and we are connecting every school in this province to the information superhighway. We know that education underpins our economy, Mr. Speaker, and we are committed to providing a strong education system so that every young student can face the challenges of the future with confidence. That is why the Education portion of the 1996-1997 ordinary account budget is $617.9 million, up from the $612.5 million budgeted in 1995-1996. We are providing this in spite of the huge federal cutbacks because, for this government, quality education always was-and still is-an imperative. We will strive to continuously improve the quality of our public education system, and the 1996-1997 budget provides for new directions in that system-new directions that will stress the needs of the student over the needs of the institutional system That is why the Education portion of the 1996- 1997 ordinary account budget is $617.9 million, up from the $612.5 million budgeted in 1995- 1996. We are providing this in spite of the huge federal cutbacks because, for this government, quality education always was-and still is-an imperative. We will continue to strive to improve the quality of our public education system, and the 1996- 1997 budget provides for new directions in that system-new directions that will stress the needs of the student over the needs of the institutional system. As well, we must protect the classroom as much as possible. We, in New Brunswick, believe that nothing is as important to the development of our province, and to creating and keeping jobs, as a well-educated and highly-tramed workforce. Mr. Speaker, post-secondary education is extremely important to New Brunswick, and we want to acquire the knowledge and skills to participate in the workforce and in the economy. The government is committed to assisting our universities and community colleges to the fullest extent possible, given the fiscal climate. Federal cash transfers to New Brunswick in support of major social programs, including post- secondary education, are down 17% from 1995-1996. Despite this, grants to universities will be reduced by only 2% in each of the next three fiscal years. Some $750 000 is being directed toward increased student employment programs, which will be welcome news to the many students who are pursuing higher education. Furthermore, as indicated in last year's capital budget, we will honour our commitments to fund various capital projects at our universities. This means an allocation of $8.4 million. Mr. Speaker, all provinces and large corporations are struggling to find ways to deliver essential programs more efficiently and at a reduced cost, but with improved levels of quality in a more challenging fiscal environment. New Brunswick faces the same challenge. We have developed a number of strategies to deliver on this very tall order. A first step has been to review all government programs, to determine priorities, and to develop ways to improve the efficiency, effectiveness, and quality of government services. That is the goal of the Service Quality Initiative announced last spring. Since then, all departments have been working hard to prepare service quality reviews. Several departments have already completed this exercise, and their initial results will be reflected in their 1996-1997 budgets. In the past few years our Department of Human Resources Development has been identifying ways to provide better services to their clients. When its transformation is complete later this year, case workers at HRD will be able to spend a lot more time working on a personal basis with their clients. Using a new computer system, clients will also be able to apply for assistance over the telephone and be given an answer as to their eligibility much more quickly than in the past. As well, the time to determine eligibility and produce the first cheque will be cut by half. That is what quality service is all about: more convenient access, better service, more efficiency. Mr. Speaker, program services to clients will improve significantly and will be delivered at less cost. A rate increase of 1.5% for income assistance, which will be implemented in the fall, is provided for in departmental spending estimates Another example of service quality is the one-stop shopping approach offered in our four Service New Brunswick centres. The continued success of Service New Brunswick has prompted the government to substantially expand the concept, and several new sites are being planned for 1996. A number of new electronic services will also be introduced. Plans are under way to establish a provincial call centre, consolidating a number of existing I-SOO services and also offering various new services. Reforms are also being undertaken to improve our revenue management system. New Brunswickers will have more choice, convenience, and control over when and where they do business with government. Revenue collection systems will be simplified, there will be a reduction in paperwork, and new service mechanisms will be established, based on electronic communications and transactions. Mr. Speaker, it is no longer adequate to limit program reporting to how much money was spent. Beginning in 1996-1997, this government will provide a public accountability of the effectiveness with which it conducts its business. Public accountability means that we must measure results. In the coming weeks, a document will be tabled in this legislature to identify performance measurement indicators for various departments of government. This will set the stage for reporting on performance, and for improving it. Departments will report progress towards achieving these targets in their 1996-1997 annual reports Mr. Speaker, I would like to reiterate government policy III regard to municipal transfers. In the budget speech three years ago, my predecessor announced that the Provincial-Municipal Fiscal Transfer envelope would be reduced by $S million, and that further reductions of the same magnitude would be required in the future. At the request of the municipalities, the target reduction for 1996 was eased to $3 million. This gave municipalities time to adjust while a review of the unconditional grant formula is being carried out. In anticipation of the conclusion of this review, and to provide a better planning horizon for municipalities, I am announcing the resumption of the fiscal transfer reduction exercise, with reductions of $8 million for the municipal budgets for each of the 1997 and 1998 years. Mr. Speaker, expenditure restraint will have an impact on the wage bill and, therefore, on jobs, because wages represent such a large portion of total spending. There is no doubt that any amount of restructuring in an organization has an impact on employees. This government has a good track record for dealing with employees affected by restructuring. We have proven over the years that attrition, combined with proper planning in the public sector, has helped most employees affected by downsizing. We will continue to manage our workforce in this caring and compassionate manner in the coming year. This government has a good track record for dealing with employees affected by restructuring. We have proven over the years that attrition, combined with proper planning in the public sector, has helped most employees affected by downsizing. We will continue to manage our workforce in this caring and compassionate manner in the coming year. In the past, we have helped our employees through early retirement, redeployment, and workforce adjustment programs. The redeployment program circulates the names of all affected employees to every government department. When qualified, these employees are given priority consideration for positions for a period of 12 months. The workforce adjustment program shares the cost of retraining affected employees with departments, school boards and hospital corporations. In the coming year, the government is planning to build on these initiatives. We will make it more attractive for employees to consider early retirement, and we will develop a voluntary severance plan for those wishing to leave the public sector. There will also be increased efforts in terms of redeployment, employee counselling and employee outplacement. We will also introduce a more comprehensive employee assistance package to include financial counselling, retirement planning and career transition training. Mr. Speaker, one of the documents I am tabling today contains estimates of capital spending for 1996-1997. As an integral part of the government's new four-year fiscal plan, the net capital budget for 1996-1997 will decline to $235 million from the 1995-1996 level of $250 million. In 1997-1998 the net capital budget will decline to $220 million and will remain at that level for the 1998-1999 fiscal year. Mr. Speaker, road construction is one of our top priorities because highway safety and economic development are vitally important. We have spent record sums on highway construction-over $1 billion since 1987. The total of new, four-lane highway opened under our aggressive upgrading program now stands at 130 kilometres, and another 100 kilometres is under construction. These sections of road are safer and more efficient for New Brunswickers and visitors alike. Road construction has also meant dozens of tender calls and plenty of work for people who need it. Mr. Speaker, as you know, this government has successfully negotiated agreements with the federal government to improve the National Highway System in New Brunswick over the next three years. These cost-shared agreements, totalling $340 million, are expected to generate 4,000 jobs. We will also continue to invest at record levels in upgrading other infrastructure such as bridges and arterial, secondary and collector highways. In 1996-1997, almost 75% of gross capital expenditures will be directed towards highway initiatives. In this regard, Mr. Speaker, included as part of the budgetary estimates are anticipated recoveries from the Government of Canada and from the New Brunswick Highway Corporation. Details on these and other elements in the capital budget will be made available later in the session. Mr. Speaker, I would now like to focus on the revenue measures contained in this budget. I am proud to say this is the third budget in a row that has not raised taxes for the average citizen of New Brunswick. The budget contains no tax increases and no new taxes. The tax burden in New Brunswick is one of the lowest in the country and our government is committed to keeping it there. Indeed, it is the government's objective that taxes will be reduced during the course of its mandate the budget contains no tax increases and no new taxes. The tax burden in New Brunswick is one of the lowest in the country, and our government is committed to keeping it there. Indeed, it is the government’s objective that taxes will be reduced during the course of its mandate. As I have indicated throughout this budget, New Brunswick must lay the groundwork to become self-sufficient. The revenue changes I am announcing today will help us in moving towards that goal. As outlined in the speech from the throne, we want to develop and maintain our transportation infrastructure. This is critical to continued economic growth and will ensure that New Brunswick achieves the maximum degree of self-sufficiency. Today I am announcing that the government will be developing amendments to the way in which provincial property tax applies to our transportation infrastructure. These changes will reduce the negative impact our airports, railways and major ports face as federal participation in these critical facilities is lessened. The changes will be limited to public certified airports, major cargo ports such as Saint Jo1m, and land associated with railway rights-of-way. In recognition of the role these facilities play in the local economies in which they reside, there will be no change in the application of the municipal property tax. These measures will help ensure the existing transportation infrastructure is competitive with those in other jurisdictions, and will help maintain current facilities, protecting valuable services and the jobs associated with them. This government is also committed to developing infrastructure for the information superhighway. Currently, there is a sales tax exemption for equipment used to produce telephone service. This exemption is narrowly defined and only companies involved in telephone service qualify. The telephone industry and information technology are evolving rapidly. There are many new entrants into this industry. Effective midnight tonight, the Social Services and Education Tax Act will be amended to expand the exemption to all providers of telephone service so that they qualify for the exemption for equipment purchased for use in producing telephone and telecommunication services. The equipment qualifying for this exemption is identified in subsection 16(1) of Regulation 84-248 under the Social Services and Education Tax Act. This government has worked long and hard to place New Brunswick on a sound financial footing. We have demonstrated a long-standing policy of planned and consistent fiscal management. We have brought III balanced budgets on day-to-day spending, and we have committed to balancing all the budgetary accounts and reducing net debt over the four-year period from 1996-1997 to 1999- 2000. We have demonstrated a long-standing policy of planned and consistent fiscal management. We have brought in balanced budgets on day-to-day spending, and we have committed to balance all the budgetary accounts and reduce net debt over the four-year period from 1996-1997 to 1999- 2000. This government has begun paying down the debt and will soon bring before this house a comprehensive debt reduction plan. Mr. Speaker, this will be an important initiative because the debt is a barrier to job creation and economic growth. As I have explained. debt service costs divert funds from health care and other social programs. and also delay the kind of tax relief that people eagerly await. Mr. Speaker, debt reduction is a long-term problem In the short-, the medium- and long-term, this government will continue to encourage economic diversification, will continue to create a climate for job creation, and will continue to successfully address the challenges facing our province. Thanks in large part to our employees and our citizens-who are smart, industrious and creative- New Brunswick has already made progress on all these fronts New Brunswick will make much more progress in the months and years to come. As Minister of Finance, I am very confident in saying that New Brunswick's future will include: a dynamic economy competing effectively in global and national markets; ongoing strong emphasis on job creation; high quality, essential programs and services: balanced budgets; a lower debt burden: reduced taxes, and a self-sufficient province with an excellent quality of life, able to chart its own fiscal and economic destiny within a strong united Canada. Thank you. Mr. Speaker.