Province Législature Session Type de discours Date du discours Locuteur Fonction du locuteur Parti politique Saskatchewan 21e 3e Discours sur le budget 30 Mars 1989 John Gary Lane Ministre des finances Progressive Conservative Party of Saskatchewan Thank you, Mr. Speaker. I rise to present the third budget of this Progressive Conservative administration. In 1986 and 1987 an increasingly volatile world economy threatened Saskatchewan's economic and financial well-being. International prices for the province's major commodities fell sharply, resulting in a serious revenue shortfall along with an increased demand for government services. The change in economic conditions was both sudden and profound. Mr. Speaker, this government responded quickly and decisively. The four-year economic and financial plan we implemented in 1987 has strengthened our fiscal position. More importantly, it has given us the flexibility to fulfill our commitments to protect and enhance essential programs for health, education, the family and the family farm, and to develop and diversify our economy. This budget builds on the plan and positions Saskatchewan for the future. Today I will announce innovative measures to advance and strengthen essential services. Mr. Speaker, we will continue to ensure that Saskatchewan's health, education, and family programs remain Canada's finest through the 1990s and beyond. I will also announce new initiatives to help our rural and urban communities and businesses to take advantage of expanded opportunities at home and abroad, generating jobs and prosperity. The world economic outlook for the 1990s is not without risk. Large international debt loads and persistently high national deficits are among the factors that could slow or even halt the economic expansion the world enjoys today. The recent rise of interest rates is particularly worrisome for economies such as Saskatchewan. The Premier has brought this issue to national attention, and we will work with other governments to attempt to resolve it. This government will continue to offer protection from high interest rates through initiatives such as the mortgage protection plan which holds mortgage rates to nine and three-quarter per cent, assistance programs for students, interest-free livestock cash advances, and low interest loans provided by the Agricultural Credit Corporation of Saskatchewan. Despite specific concerns, total output and business investment are expanding steadily in many countries, including Canada. World trade is growing rapidly and this brings opportunity and prosperity, and Saskatchewan has benefited from this expansion. Today one in four jobs in this province depends on trade. The Canada-U.S. Free Trade Agreement increases Saskatchewan's prospects for economic growth over the coming decades. It will strengthen our economy by increasing investment, by encouraging our industries to become even more competitive, and by creating jobs. And this government fully supports the free trade agreement. The free trade agreement also strengthens our bargaining position as we pursue the removal of trade barriers world-wide. The recent General Agreement on Tariffs and Trade discussions on agriculture demonstrate that international trade liberalization is a slow process. However, we believe these discussions will pay economic returns over the years. Accordingly, this government will continue to participate actively in the multilateral trade negotiation process. Last year, Mr. Speaker, Saskatchewan's agricultural economy experienced the worst drought in nearly 30 years. The volume of crops harvested fell by 50 per cent and farm employment declined. Nevertheless, this government's economic diversification initiatives lessened the drought's impact. In 1988 Saskatchewan had Canada's second lowest unemployment rate. Non-agricultural employment rose 3 per cent. The vi1lue of retail sales rose nearly 5 per cent to $5.5 billion. Oil and gas well drilling increased by 30 per cent. And Saskatchewan for the first time became a net exporter of natural gas. Our economic growth will accelerate in 1989, and we have every reason to be optimistic about the years ahead. Major Canadian forecasters agree. The Conference Board of Canada expects that with a recovery in crop yields, Saskatchewan's economy will grow by 8.8 per cent in 1989. This will be the fastest growth among the provinces of Canada, and the board predicts that 11 ,000 jobs will be created in Saskatchewan. Data Resources of Canada also foresees 1989 Saskatchewan economic growth as the strongest in the country. Mr. Speaker, this government has protected Saskatchewan people from adverse events beyond their control. When mortgage interest rates were in excess of 19 per cent, this government introduced mortgage interest protection to ensure that Saskatchewan families did not lose their homes. When escalating living costs eroded seniors' incomes, this government increased the monthly seniors' income supplement for singles by 220 per cent, from $25 in 1981 to $80 today; and for couples, by 200 per cent, from $45 in 1981 to $135 today. And we also introduced the $40 million senior citizens' heritage program. When the stock market crash in 1987 reduced the return on investments for teachers' pensions, this government provided an additional $19 million to the teachers' superannuation fund. When the farm debt crisis threatened farmers, we introduced The Farm land Security Act to provide for a fair resolution of debt problems. But last year's drought caused many Saskatchewan farmers and communities severe distress. For example, the Maple Creek and Weyburn areas received under 60 per cent of normal rainfall and crop production fell accordingly. Again, Mr. Speaker, this government responded quickly and decisively. We made it a priority to ensure that the $450 million in Canada-Saskatchewan crop insurance claims were processed promptly. We initiated the $25 million green feed program and the $39 million livestock drought assistance program to ease farmers' financial burdens and to try and protect rural communities. As well, the Saskatchewan Water Corporation provided almost $9 million last year to increase water supplies. The extremely dry conditions also threatened Saskatchewan's northern forests. We protected northern communities and forests from a record number of forest fires at a cost of over $32 million. Despite these adversities we will meet our 1988-89 deficit target of $328 million. Mr. Speaker, this represents a 39 per cent reduction in the deficit from the previous year, and a decrease of over 70 per cent since we implemented our plan. Our strategy, Mr. Speaker, is a sensible one. By working with Saskatchewan people and managing wisely, we have protected and improved our social programs, and at the same time pursued economic diversification throughout our province. We will continue this course. And in 1989c90 we will reduce the deficit significantly for the third year in a row, and this gives us the flexibility to build for the future. The 1990s hold great promise for our province. Mr. Speaker, we can expect more change in the next 10 years than in the last 100. And change means challenges and opportunities. Sound management gives us the flexibility to meet these challenges and to build on those opportunities. Sound management also means working with Saskatchewan people to build our province and to diversify our economy. Mr. Speaker, we have increased the accessibility of government to the people it serves, enhanced community services, and encouraged, Mr. Speaker, public and employee participation in Saskatchewan's economic development and diversification. Accessibility brings convenience, more opportunities for consultation, and a stronger rural economy. Mr. Speaker, we have brought the government closer to Saskatchewan people by relocating government offices to Moose Jaw, Melville, Swift Current, and Saskatoon; by placing business resource centres around the province to provide small business information and assistance; by opening rural service centres to make agricultural and other government services more accessible to rural residents. The enhancement of community services is succeeding through continued co-operation with educators, health care providers, municipalities, and other groups and institutions. Our partners provide first-rate services. Their experience and expertise have enabled them to take on new responsibilities. For example, the Saskatchewan Abilities Council now manages the Saskatchewan Aids to Independent Living program. The Saskatchewan Association of Rehabilitation Centres has provided over 100 jobs for disabled people in its container recycling depots. The Indian bands of the Meadow Lake tribal council have agreed to deliver child and family services on the reserve. Saskatchewan people have a tradition of working together toward common goals. Public and employee participation builds on this tradition by giving individuals a direct stake in the economic future of our province. And this is demonstrated by: over 42,000 Saskatchewan people investing $295 million in the last Saskatchewan Power savings bond issue; over 33.000 Saskatchewan people investing more than $100 million in the recent SaskTel TeleBond issue; employees taking ownership in former government enterprises such as the Meadow Lake Sawmill, the Saskatchewan Government Printing Company, now known as Printco Graphics, and the SaskTel directory operations, to be known as DirectWEST Publishers; and over 90 per cent of WESTBRIDGE Computer Corporation employees purchasing shares in last year's equity offering. To further encourage employees to invest in Saskatchewan business, we initiated the labour-sponsored venture capital program. DirectWEST employees will be the first to participate in this program. In addition, applications have been received from Printco Graphics and the Canadian Federation of Labour's Working Ventures. We will encourage further participation in Crown corporations through public share offerings in the Potash Corporation of Saskatchewan, SaskEnergy, and the general insurance business of SGI (Saskatchewan Government Insurance). Mr. Speaker, this government believes that accessibility, co-operation, and public and employee participation are the best ways to build and diversify our province. Mr. Speaker, I turn now to our number one priority health care. The people of Saskatchewan enjoy Canada's finest health care system and we will ensure that this continues. By working closely with the public and with health care providers, we have improved services through measures such as the recent introduction of the plastic health card. We have built an impressive record of upgrading, replacing, constructing, and staffing health care facilities throughout the province, and this budget reaffirms our commitment. We will increase health care funding by over $130 million in 1989, up 11 per cent from last year. We will dedicate nearly $1.4 billion to health care, or almost $1,400 for every man, woman, and child in Saskatchewan. The need to replace and upgrade health care facilities had been sadly neglected before we took office, and we have reversed that trend. This year, we are providing over $64 million for the construction and renovation of hospitals and special-care facilities across Saskatchewan. In many provinces, waiting times for surgery are lengthy, but in Saskatchewan we are making substantial progress in i increasing the accessibility of elective surgery, especially in Saskatoon where the demand is high. The number of surgeries performed annually in Saskatoon has risen 64 per cent since 1982, from 27,400 to 45,000 surgeries, Mr. Speaker. This includes operations performed in the new day surgery facilities that this government built and funded. Capacity for surgeries will be further increased in Saskatoon this year, and this budget allocates an additional $1.5 million to purchase high cost supplies, and increase surgical staffing. Together with the health care providers, we are also exploring the development of a province-wide information and referral system to reduce waiting times even further. Our health care system relies upon the excellence of its professional and support staff. We will continue to ensure Saskatchewan attracts and retains the highest quality health care providers in Canada. This budget includes $646 million for nursing and health care support staff salaries, including the funding for an additional 370 nursing positions. All individuals have a vested interest in maintaining a healthy life-style. The government introduced the Everyone Wins program to raise awareness of how to maintain good health, and we will expand our efforts in this area. And we want to help Saskatchewan people to detect health problems early. This year this government will initiate a breast cancer screening pilot project to help women in the high risk age groups in the fight against the leading cause of death from cancer among Canadian women. Mr. Speaker, substance abuse poses a threat to health and to family relationships. Last year your government increased the support for Saskatchewan Alcohol and Drug Abuse Commission, the Whitespruce Centre for youth and the Calder Centre for adult treatment. And this year, Mr. Speaker, we are providing $ 1 million for a major new education outreach and enforcement initiative to prevent alcohol and drug abuse by young people. Hon. Mr. Lane: - Mr. Speaker, the details of our health care initiatives, along with those for education and families and other important areas, are presented in a budget document entitled Challenges and Opportunities, which I am pleased to table with this budget. Mr. Speaker, Saskatchewan people recognize the need to pay for health care innovations we are introducing, and effective midnight tonight the tobacco tax will rise by 1 cent per cigarette, with similar increases for tobacco products. The hon. member across says he quits. The program is working. Hon. Mr. Lane: - Prices of alcoholic beverages will increase to generate an additional $5 million annually, and effective midnight tonight the rebatable fuel tax will increase by 3 cents per litre on gasoline and diesel fuel. The fuel tax rebate program, which provide benefits to over 280,000 Saskatchewan families, will be maintained and will apply to this increase. Effective July 1, a new hospitals tax will apply to gaming activities including lotteries, casinos, and bingos, and the moneys raised from this tax will be dedicated to hospitals, Mr. Speaker. Mr. Speaker, these four measures do not cover this year's increase in health care funding. They will raise 79 per cent of the over $13 million in new expenditures on health care. To address the future of health care, this government established the Saskatchewan Commission on Directions in Health Care. The commission's final report, expected later this year, will help this government set priorities to meet the challenges of the future. Quality education, Mr. Speaker, is an investment in our future. The dollars spent today on basic and advanced education will pay generous returns in economic progress and improvements to our quality of life. We will spend over $841 million this year, an increase of $52 million from 1988-89, to see that Saskatchewan people have access to quality opportunities to learn. This funding level is nearly $370 million, or almost 80 per cent higher than that provided at the beginning of this decade. Hon. Mr. Lane: - This government is committed to ensuring that all students acquire a solid foundation to prepare them for a lifetime of learning. We are demonstrating our commitment by: increasing school division operating grants by $13 million to almost $350 million, or $1,700 for every student; by providing $31 million for the construction and renovation of schools; and by allocating $14.5 million from the education development fund for special program improvements such as computer technology and resource materials; and by contributing $4 million in new initiatives to implement education reform, including the expansion of programs to teach students the basic skills of reading, writing and mathematics. Saskatchewan can be proud of its system of higher education. Our two universities, nine regional colleges and the Saskatchewan Institute of Applied Science and Technology do an excellent job of fulfilling the diverse needs of our student population. In this budget, the universities, SIAST and the regional college system will receive $225 million in operational funding. In addition, up to $ 10 million will be allocated from a new university and institute enhancement fund for the universities and the Saskatchewan Institute of Applied Science and Technology. The University of Saskatchewan's Issues and Options Accessibility Task Force has expressed the view, and I quote: Increased accessibility to a university education need not necessarily be provided on the campus of the University of Saskatchewan itself. It might come through extension teaching and distance education technology, regional colleges and technical institutes. Mr. Speaker, this government agrees. A regional college system ensures access to quality educational opportunities in rural and northern communities. To build on these opportunities, the colleges and university will be asked to develop a co-ordinated first- and second-year arts and science program. Through this program, more students will be able to study in their home communities for the first two years of their post-secondary education. But an extra effort must be made to accommodate individuals such as single parents who have had difficulty in obtaining access to educational opportunities in the past. Our student assistance program gives special recognition to the needs of these students. Mr. Speaker, this government's welfare reform initiative provides social assistance recipients with skills training to acquire meaningful work, making it easier for them to regain independence. Since we began welfare reform in 1984, over 17,000 people have received class-room and on-the-job training. In addition, the innovative work project initiated by PAR Industries of Prince Albert has trained hundreds of individuals in forestry jobs. And this year, the New Careers Corporation will invest $5.6 million, an increase of more than 50 per cent, in training projects across Saskatchewan, including the construction and improvement of provincial park facilities. These projects will provide valuable job experience for a further 280 welfare recipients, Mr. Speaker. But new technology also plays an important role in achieving access to quality education. The innovative Saskatchewan Communications Advanced Network, or SCAN, will bring electronic class-rooms to students throughout Saskatchewan, as well as provide information to farmers, consumers, businesses, and home-makers. Broadcasting is scheduled to commence in 1990. To further our efforts to increase literacy in Saskatchewan, we will be opening computer-assisted literacy centres in a joint venture with IBM Canada Ltd. The centre is using computers to teach teenagers and adults basic reading and writing skills. These initiatives reflect our determination to ensure access to quality education for the benefit of all Saskatchewan residents. Mr. Speaker, families do matter in our Saskatchewan. This government has consistently supported families through measures such as: education and health tax exemptions for clothing, some utilities, and other essentials; mortgage interest rate protection for more than 44,000 home owners; the home improvement program, assisting over 150,000 Saskatchewan families with home improvements and renovations; and the Saskatchewan Pension Plan, contributing to retirement security for 47,000 members, of whom 80 per cent are women and 40 per cent are home-makers. Hon. Mr. lane: - To further protect Saskatchewan workers, we will implement pension reform legislation to increase eligibility and to improve survivor benefits and portability. In addition, most public service superannuates will receive a pension cost-of-living adjustment effective April 1989. But, Mr. Speaker, our children require quality care. I'm pleased to announce that we are allocating $16 million for the first year of our comprehensive child care development plan, including $3 million in new funding for child care, Mr. Speaker. The plan will double the number of day-care spaces in the province to almost 12,000 by 1995. And in recognition of the requirements of rural parents, 2,000 of these spaces will be allocated to rural Saskatchewan. Foster-parents playa special role in Saskatchewan. Last year we introduced Canada's first foster-parent training program. This program provides and improves the skills of foster-parents to meet the needs of children, particularly those children who have been difficult to place. For the second year in a row we will increase payments to foster -parents. In the past, many people who were legally obliged to make maintenance and child support payments failed to live up to this responsibility. In 1986 this government introduced the automatic enforcement of maintenance orders program to address this problem. The program has helped more than 5,500 people, mainly single parents, to receive regular maintenance and child support payments. This budget strengthens the capacity to pursue these payments and to assist single parents to gain financial independence. This government recognizes the potential of many disabled people to participate actively in their community. Community living has allowed the mentally disabled to become more independent. Over 180 residents of provincial institutions have moved into community settings, and this opportunity will be extended to 80 additional institutional residents this year. Our welfare reform initiatives have helped members of many disadvantaged families to find long-term employment. Welfare reform, Mr. Speaker, is a prudent and proven program and is good value to the taxpayer. While maintaining and enhancing support for those in need, welfare costs have been nearly $90 million lower than they would have been under the system in place when we came to office in 1982. The farm family is integral to the social fabric of Saskatchewan and is the economic base for most of Saskatchewan's communities, but farm families face unique pressures and problems. This government's support for agriculture has tried to ease the financial difficulties. And this year additional funding will be available to the centre for agricultural medicine in Saskatoon for the study of farm-related illnesses, including those brought on by farm chemicals, grain dust, and stress. These efforts will try to improve the health of farm families. Mr. Speaker, families do matter in our Saskatchewan. This government has worked with local people to develop economic opportunities while enhancing the quality of community life. Cultural and recreational facilities are an important part of community life, and since 1983 we have funded the construction and renovation of almost 2,000 such facilities across the province. This year we will introduce a $33 million, six-year cultural and recreational facilities grant program for Saskatchewan municipalities. In addition I am pleased to announce the introduction of a $100 million, six-year municipal capital program, and this budget provides nearly $17 million for the first year. This is Saskatchewan's first capital grant program to address the needs of rural municipalities. It will assist all urban and rural communities, regardless of size. to build the facilities required to provide a high quality of life, and the program will give high priority to water and sewer projects. Together, these initiatives will provide over $130 million to our communities over the next six years, and they demonstrate this government's continued support for local communities. The Municipal Financing Corporation of Saskatchewan plays an important role in financing of school, hospital, and other municipal construction and local improvement projects. The corporation purchases up to 50 per cent of municipal debentures for sale by the Saskatchewan municipal board. During 1988, 56 projects were assisted by the purchase of nearly $27 million of municipal debentures. I'm pleased to announce that urban and rural municipalities will now be able to obtain up to 100 per cent of their capital financing requirements for water and sewer projects from the municipal financing corporation. And to further assist municipalities we will encourage the Saskatchewan Municipal Board to approve the financing of water and sewer projects over longer terms. Rural and small urban municipalities are now involved in this government's rural development corporation and community economic development program. I'm pleased to announce that changes will be made to the venture capital program to allow rural development corporations to qualify. Our new rural service centres will also help foster community economic development by providing convenient access to timely business and economic information. And this year the rural service network will expand to 52 communities across the province. Some of our northern communities have required special assistance to diversify and enhance their quality of life. In addition to including northern municipalities in the new cultural and recreational facilities grant program, this budget continues to support northern economic development programs. This year the first $1.2 million of a $13 million l0-year commitment will be provided for the development projects at Cumberland House. At the request of that community, the New Careers Corporation will assist with locally identified construction projects. This government has helped urban, rural, and northern people to implement innovative measures to enhance their economic opportunities, to create jobs and to ensure that our communities are vibrant and attractive places to live. Mr. Speaker, environmental protection is a prerequisite for a high quality of community life, and this budget allocates over $22 million to preserve and enhance Saskatchewan's environment. This includes funding to implement a program to collect and dispose of hazardous agricultural chemicals, to safely centralize PCBs in the Boundary Dam storage facility, develop a comprehensive hazardous waste handling and disposal system for the province in consultation with industry, other interested groups, and Saskatchewan people. To ensure safe drinking water we will introduce a water quality management system, and we will improve monitoring and control of industrial waste water and establish standards for water basin quality. Soil conservation is a serious concern to the people of this province. The soil conservation initiatives we have implemented have helped to protect the viability of Saskatchewan agriculture. Many groups have also recognized the importance of soil conservation and requested this government's assistance in preserving our soil. For example, the United Church of Canada suggested that the Saskatchewan government should develop long-term soil conservation policies. Mr. Speaker, this budget provides funds for a three-year, $54 million soil conservation agreement with the federal government. The field shelter-belt planting program, a permanent cover program, and a marginal land use adjustment program will be initiated under this new agreement. And this budget furthers our commitment to renew Saskatchewan's forests. We are providing more than $5 million to continue the five-year, 50 million seedling reforestation program begun in 1988. And people in industry must help in our effort to preserve the natural environment for our future generations. Accordingly, this government will increase the fines levied under existing provincial environmental statutes, introduce legislation to protect the ozone layer, and introduce legislation to allow for an environment tax on environmentally harmful products. And as the first initiative under the environment protection tax, effective midnight tonight, purchases of leaded fuel in the province will be subject to a 2 cents per litre non-rebatable environmental surcharge. This measure recognizes the contribution of users of unleaded fuel to environmental protection and will reduce the use of leaded fuel before its sale terminates in December of 1990. Mr. Speaker, these environmental measures will enhance our quality of life as they support sustainable economic growth. The future of our social programs depends, however, on continued economic growth and diversification. We must work together to diversify our economy and to create jobs, and we must look to the future and build on our strengths. And agriculture remains, of course, Saskatchewan's most important industry. It is the foundation of our economy and we have tried to protect that foundation, Mr. Speaker. The production loan program has provided over $1 billion in low-interest loans and offered extended repayments where needed. The Farm land Security Board has established a process of fair and equitable mediation for farmers experiencing financial difficulty. The counseling and assistance for farmers program has guaranteed over $166 million in farm loan. Canada-Saskatchewan crop insurance payments and other special drought assistance payments amounted to over $500 million in 1988. The federal Canadian crop drought assistance program will complement our provincial drought initiatives by providing over $400 million to Saskatchewan farmers. Mr. Speaker, we will continue to pursue long-term solutions to the problem of farm debt. We will provide financing initiatives to assist farmers and to encourage young men and women to choose farming as a career. The mandate of the agricultural credit corporation, I'm pleased to announce, will be extended to include debt refinancing for viable farm operations; financing of the home quarter and necessary farm related facilities; long-term financing to cover the first year start-up cost; and the restrictions on off-farm income will be removed to eliminate any disadvantage to farmers with off-farm employment. Through the agricultural credit corporation this government will also initiate a new vendor mortgage guarantee program to provide financial security for retiring farmers and to encourage them to help young farmers acquire farm land. By guaranteeing mortgages to beginning farmers, the program will try to remove the risks associated with the sale of land. And we will establish a voluntary farm equity financing pilot project. Through a new agricultural company, Saskatchewan investors will be offered the opportunity to participate in the farm sector. Mr. Speaker, these five new initiatives will help position farmers for the challenges and opportunities of the future. Agricultural diversification will place Saskatchewan farmers on the forefront of industry advances and this budget will provide over $29 million from the agricultural development fund, including $21.7 million for agricultural research and development, and $7.6 million for irrigation grants to farmers, agricultural biotechnology and food processing and commercialization. Saskatchewan's manufacturing and processing industries have made major gains in recent years and generate significant economic activity in all regions of the province. In 1988, new capital investment in this sector totaled over $550 million. Manufacturing and employment in 1988 rose 17 per cent or by 4,000 jobs, and the value of factory shipments for most product categories reached a record level, Mr. Speaker. Through our support to trade and diversification, we have stimulated the growth of many manufacturing and processing firms throughout Saskatchewan. Intercontinental Packers of Saskatoon has created over 200 jobs since it modernized its hog processing facility, and this year the company will double its beef processing capacity, creating 140 new jobs. The company is taking advantage of opportunities in the United States market and is pursuing additional business in the Asia-Pacific area. Canada Packers has announced its intention to double the slaughtering capacity at its Moose Jaw plant, providing 36 new jobs. The $745 million NewGrade Co-op heavy oil upgrader is now in production and has created 125 new jobs. When completed in 1992, the $1.2 billion Husky upgrader at Lloydminster will produce 46,000 barrels of light oil per day and employ an additional 165 Saskatchewan workers. The $250 million Weyerhaeuser fine paper mill at Prince Albert began production last year, creating new jobs for 1 70 people. This year that company will undertake a $21 million expansion to produce finished, cut paper. Millar Western Industries announced that it will construct a $235 million pulp mill at Meadow lake, and new jobs will be created for another 110 people. Last year's merger of federal and provincial Crown corporations to form Cameco, the Canadian Mining and Energy Corporation, created the world's largest uranium mining and processing company, and it's headquartered in Saskatoon. These and other major projects across Saskatchewan have provided thousands of new construction jobs and millions of dollars of business to Saskatchewan suppliers. For example, Saskatoon Chemicals is undertaking a $25 million expansion to increase the supply of a key ingredient for pulp and paper production. To assist in the development of local business, this government established the Buy Saskatchewan agency in 1987. The agency has encouraged hospitals, school boards, local governments, and Saskatchewan businesses to seek Saskatchewan suppliers. It has also encouraged local people to supply the needs of these groups. The Buy Saskatchewan agency has helped Saskatchewan firms to secure more than $140 million in contracts and has played an important role in the development of over 50 new product lines in the province. The Canada-U.S. Free Trade Agreement will accelerate business activity in the 1990s as Saskatchew2n gains increased access to the world's largest market. We will implement programs to assist Saskatchewan firms to take advantage of new trade opportunities, including the export marketing assistance program to share the cost of new marketing activities, and the export project development program to assist industry to develop long-term strategies for market identification and penetration. Mr. Speaker, to raise new capital for Saskatchewan's manufacturing and processing industries, including exporters, we have established the Saskatchewan government growth fund. It is expected that that fund will make available up to $100 million in investment funds with $36 million available in the first year, and the fund will help finance economic opportunities throughout all of Saskatchewan. Mr. Speaker, service industries have been at the forefront of business growth in the 1980s, and the 1990s hold even more promise. This government's initiatives have enhanced significantly the profile of Saskatchewan's service sector. The new Investment Corporation of Saskatchewan is one of Canada's 10 largest institutional investment counselling firms, managing client assets of over $3.3 billion. The corporation is helping develop the financial services industry in this province. And the WESTBRIDGE Computer Corporation is western Canada's largest fully integrated computer company. The corporation has over $6 million in new out-of-province contracts, and has already created 50 new jobs here in Saskatchewan. Our assistance to the tourism industry has helped Saskatchewan to begin to provide world-class tourist destinations for local residents and out-of-province visitors alike. Three private sector resorts opened in provincial parks in 1988 with facilities such as the Manitou Springs Mineral Spa in Manitou Beach, the Saskatchewan Trade and Convention Centre in Regina, and Saskatoon's Saskatchewan Place are drawing visitors to all parts of our province. And our continued co-operation with the private sector and with other governments will ensure a further development of Saskatchewan tourism. And this government continues to recognize the importance of Indian and native communities, of economic development opportunities. Accordingly, we will in this budget be increasing support for the Indian economic development and native business development programs. Small business, Mr. Speaker, is the major source of Saskatchewan's economic activity and job creation. And strong, small businesses support healthy local economy. This budget will enable our small business community to take advantage of emerging economic opportunities at home and abroad. Saskatchewan's small businesses will benefit from $1.1 billion in provincial hospital, school, highway and road construction, and other capital projects that will support over 9,500 jobs. And funding to improve our transportation network alone will total 121 million, 9 per cent above last year's level. We will restructure, for the small business community, we will restructure and expand SEDCO's (Saskatchewan Economic Development Corporation) programs to provide new, more flexible financing options to help small businesses cope with the difficulties posed by high interest rates and volatile cash flow. lending services will include loans to small businesses and loan guarantees to business associations and rural development corporations. We will improve our economic tax credits to ensure that they are flexible enough to meet the business development requirements of the 1990s. And we will continue to support the economic contribution of Saskatchewan co-operatives. The NewGrade Co-op upgrader project and the success of Co-operators Data Services limited which performs the claims processing function for the Saskatchewan prescription drug plan illustrate the potential of co-operatives to support Saskatchewan's economic diversification objectives. But we recognize that local business taxes have been a burden for many small businesses, especially given the unsettling effect of the drought on business conditions. The $10 million business tax assistance program will provide needed business tax relief, and business taxes in Saskatchewan will drop by an average of 25 per cent as a result, Mr. Speaker. These four new programs will be of assistance to small business, Mr. Speaker, because Saskatchewan small businesses face many challenges. However, challenges bring opportunities, and we will continue to work with small business to realize those many opportunities. As I indicated earlier, our economic financial plan is working. We responded rapidly to the drought and to northern forest fires, and we still achieved our deficit target of 328 million for the fiscal year ending March 31, 1989. Our 1989-90 expenditure plan is focused on the priorities of health, education, support of the family and the family farm, and economic diversification. Through the careful balance of priority spending, including $314 million in capital spending, and sensible revenue measures, we will reduce the deficit for the third consecutive year to $226 million. This represents a drop of 102 million or 31 per cent from our 1988-89 deficit. Mr. Speaker, since coming to office in 1982, our government has worked with the people of this province to protect and improve the social programs Saskatchewan people cherish, and to diversify and develop the provincial economy, and to manage responsibly. The record speaks to our success. The 1990s and the years beyond promise new challenges and new opportunities for all Saskatchewan people. But together we must act boldly to meet these challenges and to seize those opportunities. Mr. Speaker, I move, seconded by the member from Indian Head-Wolseley: That this Assembly do now resolve itself into the Committee of Finance.