MARCI-Ii 1314. 1954

1156.134

Reduction

continued kc;-lane 1

.4325, leaving a surplus on Our- ... Account of 31,493,131.

A summary of the Ordinary Re- nued for the current fiscal year

10

,5 55 follows:

(A) Government of Cumin: subsidies ..................... ..0 047,102 Tax Rental Agreement. 0,631,001

04,270.21! other Subvention: 074.707 1 i from Federal Gov-

Toe;IlmGn'L 04,650,000

(5) From Local Sources ,1; Taxes:

Gasoline ....... .. 01,500,000 Amusements 132,000 Liquor 265.000 Tobacco . .. .. 145.000 succession Dut es 237

02,042,237 12) Licenses. Permits 5 Fees: Motor Vehicle Licenses.. 0451.976

Corporation Licenses 94.089 1-lalconwood. Infirmary dc

mach Grove Fees. . . 107,000 Probate Fees 13,500 Court Fees . .. 4.650 Registry Offices Fees 9,500 Fish & Game Licenses 11,050

itw. College Fees . 13.234 Q:-md;-y Licenses. Permits

and Fens .. .. . 11,565

0656.964

.31 '1':-mpe1'a11ce Act ...... 0900.000

,4. Fines and penalties 31,000

at suiiilry Rcvenues and

Refunds 0145.033

Total from local sources S3.'i15.28'l

or. as 1 said before. a. total rev- c;:..c o11 Ordinary Account of 58,- 4.311317, the higheiin the history

he Province. , l sliouitl like. M1:L,f5peakcr, to A comment shntly on our sea of revenue and their not- 1.1 . as well as the different types 1)! expenditures and their relation 1') uzir general economy.

1 .mi the Federal Govcrnment. lr: my of Subsidy and the Tax

oi

Rmii.il Agreement. the Province uzil have received during the cur- fiscal year 34,278,273. The

m. net value of the nation's total iviodiiction, as measured by Gross Niroiial Product. was 324,242 n1il- 1.i.. lll 1950, compared with 923.- 110 million in 1952. This repro- mils an increase in the value of the national product of almost five prirent. Inasmuch as prices were 1-rlotircly steady throughout the , . the total volume increase has about four percent. It is true that prices for agricultural prod- iic'.s declined to some and even material extent, but the general lrvei of production was well main- iiumi so that the'11et result of azricuitural decline was more than made up by the increased non- nzricultural output.

'i'l1e amount received under the Tax Rental Agreement is based iiiiniially on the general prosperity of the country and can increasi- Iv" decrease very sharply.

Our ,,Gasoi'uie Tax liicrcascd by some 032,000 over last year. Am- usement Taxes have likewise in- rreased. Liquor Taxes and the profit from the sale of same have liven clown and it is evident tha: mother year will see a further re- il'li"ll0n in these taxes. :

Despite expending receipts, wdl kept as closely as possible to tilt, pian of expenditures outlined llll! budget of a year ago. Ordin- ary Expenditures will tntiil 00,935,- 196-the net result a surplus on ().'(llll3IY Account of 01,493,131. 'i'h..-i surplus was derived after making E. sinking Fund provision of 3560,4215.

Before going into Capital Ac- count I would like to summarize some of the reductions in ordin- 1i-v Expenditures.

Interest .. ..

Health and Weifsr

1-Iducntion

Attorney-Generslnm

Agriculture .

Highways. Bridges and Ferries Maintenance 00.000 for a total of 0918.990

To be fair 1 must also include mp amount of increases that have

llrlPll place during the current juni- I1:-gislation . . 5,405 industry as Natural Re- sources .......................... .. 1.147 Gasoline Tax Rebates, etc. . ,. , . . . 79,200 other Current Expendit- ures . . 6,020 General Government .. . 12,030 for a total of. 0104.770

in other words, we have reduced current Account Expenditures by 1214.223.

During this your Capital and Extraordinary Expenditures were 52,496,190 and Capital Receipts 3409.390, together with 095,000 in- West on Sinking Fund invest- iiii-nts.

Total Expenditure Or-

dinary as capital

rotsl Revenues

wr oi-on Deficit orf. .. s 407.007 Deduct from this sinking Pund 500.420

the net result will be another 07- mli decrease in debt of 070,700. During the present fiscal year in spent onbcspitel Account for:- "lkhwsy Construction including Bridges and

Culverts - .... 0 i.4lI.000 New Machinery .. . . 134.4110. Trans-Canada Highway 240.700 Fnlconwood Hospital 90.000 Assistsce to Rural

Schools . .. .. . .000. Gmersl Hospitals Con-

struction . 75.800. Farm Improvement Me-

Ghlnery .. ., 20,775. Rural Electrification 40.040. other items of 3 capital

hat-urei . .. 04.000 W I total of 01,001,044. In addition the Government

made loan! and sdvsnoh to the Imount of 0244.154. which are re- '"V9l'lble at it later date and should not be considered M .4111

M-

- House of our

mgica

expenditure item. though tem- porarily increasing the debt of the Province. Had these loans not been made the overall picture would have been a debt reduct- ion of 0314.992.

Forecast Debt Podticn

Before giving 3 summarised ac- count of the work of the various Departments, which will be discussed in more detail by the responsibile Ministers concerned, I should like now to present the forecast debt position of the Province as an- ticipsted as at March 31st, 1054:- On March 31, 1053 the

net debt of the Pro-

vince was .........017,2l3,'f33. Total Forecast Expendi-

cures fiscal year 1953-

54 including sinking

Fund Provision 9.490.304.

020344.117. Total Forecast Reven- ue for the fiscal year ending this month ..s 8,932,697.

0l7.711.420. Deduct from this Sink-

ing Fund Provision . 508.425. Lraviiig .1 Forecast Not

Debt as of March 31,

1954 .. , ......0l7.142,995. or, as I have said before, a re- duction in the debt of this Pro- vince for the present fiscal year of 870.7311.

Treasury

Before proceeding with the Bud- izet for the forthcoming fiscal your I should like to inform this recent bond trans- action and of the intention of the Government to recall the U. S. A issue of December 15th, 1951.

On January 28th. 1954, the Pro- vince sold on the Canadian mar- ket a 02.500.000.00 - 4'5. - in year Debi-niurc Issue, dated February 15, 105-1. The proceeds from the sale of this Issue converted into U. S. A. currency were transfer- red to the Bank of Montreal. New York, to be applied to the redemp- tion of our U. S. lane of Decem- ber 15th, 1951, which we intend to recall at 101 on June 15th next. or at on earlier date should the holders wish to do so. By taking advantage of the premium on Canadian dollars on the U. 5. A. market. we will be replacing this issue on the Canadian market :11. no cost to the province and avoid- ing the element of risk that could result if the U. S. A, currency would belsbove par the day the issue matures.

Budget For The Fiscal Year 1954-55

Bnfore discussing the Estimates of Revenue and Expenditure for the forthcoming fiscal year I would like to comment on the genernl situation as it affects the -Provincial budget.

We have been living for some years in a period of great matu- lal prosperity and have experi- enced a surge of economic activ- ity that has had. and still has, dnhgerous inflationary tendcncies.

..ve.rious times we thought that to peak of the boom had been reached and that we could look for it reasonable levelling-off of prices without any disastrous ec- onomic contraction. Each time. however, it proved only s. plateau in the rising curve of production

Much of our thinking however, must take into consider- ation the possibility of an econo- lecession, sudden or gradual government business we must anticipate matters for a period which does not even commence for e couple of months and which ends nearly fifteen months from

the time the Estimates are first prepared. - Intimates of Revenue for the

forthcoming fiscal year are based on past experience and future ex- pectatlons and reflect our con- sidered opinion of what we can an- ticipate receiving. barring my ex- treme in the economic situation of the Province and the country as e. whole.

I do not look for any drastic changes in the next year but rather it levelling-off and gradual stabilization in line with indica- tions that are becoming more ap- parent. in the situation day by day.

May I now, Mr. Speaker." direct the attention of this House to the estimated Revenue and Expendi- ture for the ensuing fiscal year ending March .'iist, 1955. Copies of the detailed Estimates have been tabled for your consideration, which you will note. include expenditures on both Ordinary and Capital Ac- counts and provision for debt re- tlrement in order to arrive at our estimated budgetary requirements.

These Estimates show that the Province hopes to reiilizs Revenue on Current Ac-

count of .. .. 0 8,237,039. with Ii proposed Expen-

diture on similar ac-

count of ., .. 7.298.304.

for an estimated surplus, after providing 0500.950.

fhr debt retirement.

of .. . .. e 949,445. .

It is estimated that the out-

. lay of public monies for expendi-

tures of a Capital nature will

. amount to 08,302,345. with an off- . netting credit of capital Receipts

of 0910.318. Thus -

Total Expenditures are estimated at . . ..0l0,0a0,7:lii. Total Receipts at . . 0,100,212.

or I gross deficit of 0 1.024.521.

after providing for a sinking Fund Provis-

ion of . .0 530,000. ft is. therefore. forecast that

the ensuing year's operations will mean -1 net increase in Liabilities of 0000.577. However. I am not at all pessimistic res to the outcome for the coming year for I believe that, with the co-operation of my colleagues, we could possiblly achi-

eve the third consecutive decrease in the debt of the Province.

It is anticipated. therefore. that the net debt of the Province as at March 31st, 1955 will bs:-- Fcrecut net debt March

31. 1054 017,142,005. Add estimated increase

to March 01, 1955 . . 985,577

For I total of ,...018.l&.572.

01-dinnry Revenue

The Estimates of Revenue on Ordinary Account for next year, 1954-55: .. ., . ....0 8,237,839. From the Federal Gov-

ernment we expect to

receive . 0 4,995,504 and fro m Provincial

sources 0 3,242,255.

The Revenue from Ottawa is made up as follows: (A) Subsidy ..0 656,932. (3) Payment in lieu of

taxm and additional

payments based on

Gross National Product 3,847,479

0 4,504.41

Total . Less Hilisboro Bridge Account . . 9,750.

For :1 total under the 1952

Tax Rental Agree-

ment of .. . 5 4,494,661 (C) Old Age Assist-

ance and Blind Pen-

sions . .. . s 133.750 (D) Health Grants 5 287,773. 'El other Assistanco s 79,4011, Total 5 4,095,584.

Under the 1952 Tax Rental

Agreement the guaranteed pay- ment to this Province for the fiscal year 1954-55 wii amount to 54,504,-111.gcared to the Gross National Product of 1053, 'and that sum this Province will re- ceive in quarterly instalments be- ginning June 30th, 1054.

From Provincial taxation it is estimated that, H5 ieasi,”s3,242,- 255. will ho collected from the following sources:-

Taxes Gasoline 3 1.250.000. Amusements .. . 100,000. Succession Duties Ar- rears . . 1,000 Tobacco 15,000 Liquor .. 225,000 Total . 3 1,701,000 Licenses, Permits 11' , Fees: 5 596,425. ,

(This amount includes Motor Vehicle Licenses at 9400.000. after trans- errlng ovcr s21),000. to the Unsatisfied Judg-

ent Fund Account)

Temperance Act 5 800,000. Fines and Pnnaltlcs 5 15,000. Rental and Sales of Sun- ' dry Commodities 5. "10,000 other Revenues and Re- funds .. .. 109,830 Total .. ....s 3,242,255

Supply

I The Supply pitoposed to be granted to Her Majesty involves Ebrpenditures on Ordinary Ac- counts of 57,2:-115,394. and these we now submit for your consideration.

1954-55 On Debt Charges in- cluding Sinking Fund Provision .. . , 3 1,235,004. Health and Welfare 1,925,407. Education .. . 1,325,605. Attorney-General 214.780. Legislation 97,0110. Agriculture . . .. 274,035 Industry as Natural Re- sources . . 223,290 Public Works as High- ways .. . 1,206,515 Gasoline Tax Rebates and Other Refunds 250,500 other Current Expendi- tures . . . 173,866. General Government 302,262. Total .. 0 7,288,394 The proposed disbursements

provide for an anticipated surplus on Ordinary Account of 0949.445 after providing for a sinking Fund Appropriation of 0538950;

Alarming Figure

On reviewing these Expendi lures I was quite concerned with the alarming figure of 01,235,004 for servicing the public debt. This Amount represents approximately 1579 of the Revenues the Province expects to collect in the forthcom- ing fiscal year. After careful analy- sis and comparing the result with previous years I am now convinc- ed that it is not 08 serious as might appear.

Allow me, Mr. Speaker, to quote in few oxamples'that I have pick- ed at random and with no politi- cal motive in view. In the fiscal year 1945-40 over 2707: of the Re- venues of the Province went to service our debt account; in 1939 over 2tlf6-. while in the year 1931 the Province spent 0221.000. out of ii total Revenue on Ordinary Account of 01,100,000. or approxi- mately 19',7, so that actually we are better able today to carry A public debt of 018,128,572. than we were in 1931 when the debt was only 03,342,242.

In Health and Welfare the pro- posed outlay of 01,925,401. repre- sents an increase of 0104.763 Health Branch, including General Administration. 8100.105; Main- tenance of Falconwood Hospital Provincial Infirmary, Beech Grove and Health Centre Buildings 015,- 000; and the Welfare Branch of the Department 043,003. or, an I said before. 0164.708. more than that spent in the present fiscal year.

In the Department of Educa- tion 073,000. more will be expend- ed on Teschers' salaries and sup- plements, and the overall Increase will be almost 0110,000. including an additional 5.000. for school hook subventionlz an additional 02.400. for scholarships. some 014, 000. for Teacher Training Loans and Grants kpd approximately 05,- 000: more for our contribution to schools for Deaf and Blind chil- dren.

Agricultural Estimates Agriculture Estimates are in-

creased by 036,212. over the fore- cast Expenditure for 1953-54. The

appropriation of 0274.555. voted in this House last snrins was not

run GUARDIAN. CYIARLOTTETOWN

fully used and we are again lun- mltttrig for your approval 1. simi- lar amount, namely 0214.035. in the hope that the Minister's propos- als for his department will more actively prosecuted,

This well indicates the efforts being put forth by our Govern- ment for the agement of Agriculture and the progressive policies initiated and lexpanded by the very capable Minister In charge of the Department.

In the Department of, Industry dz Natural Resources the tension of services has already been noted as well as the cost. The proposed Expenditure on Current Account for the fiscal year ending next

- March is 0223.280 as against an ap-

propriation of 0208.020 for the year ending the last day of this month. Mr. Speaker, mayl I re- iterate my remarks of last year's budget wherein I stated that the work of this Department deserves the very complimentary opinion so generally accorded it, and the Minister congratulated on the fertility and soundness of the in- nnv9.tlons'1nitlnted.

I have already indicated the scope of operations of the Depart- ment of Public Works and High- ways for the current year. The program for next year involves an

- outlay of 01,206,515 on Ordinary

Account for road maintenance. snow removal. etc. as well as Cap- ital Expenditures for graveliecl and permanent highway construction. inclusive of the Trans-Canada Highway project. Capital Expenditure.

Ih our proposals for Capital Ex- penditures you will find an amount of 51,000,000, in line with the Gov- err1mcnt's policy during this and next year of rushing to completion the Trans-Canada Highway from Borden to Charlottetown at the earliest possible date and such parts of the highway east of Charlottetown so as to provide a continuous paved road to Wood Islands terminal ferry.

I should like now to refer the item "Other Current Expend- itures” totalling s173,866.00.

This consists of:-

A. Insurance Premiums on Public Buildings . . 5 30,000 Insurance Reserve Fund Appropriation . .. B. City of Charlottetown in lieu of Corporation Taxes 20,000 C. Special Grants to munici- palities on per capita basis . . .. Grants to incorporated villages on per capita basis . .. . . .... .. . Pavement Assistance to incorporated towns

20,000

0 82,866

9,000 12,000

0173.866

The vote of 550,000 for insurance on public buildings again includes, as it did last year, 020,000. to be paid into a special Reserve Fund intended eventually to enable us to be our own insurers. It is pro- posed to reduce the amount of in- surance each year by the sum standing to the credit of this fund and the premiums thus saved add- cd to the fund.

The vote to cities and incorpor- ated towns is increased from 02.50 to 53.00 per caplta and to villages from 01.00 to 01.25, This will iii- voive an expenditure of 8111.866. or 018,729 more than last year. In this way our cities, towns and Villages will share in the increased revenue that the Province expects to receive from the Federal Gov- ernment. due to the growth of the Gross National Product.

The following Expenditures on Capital Account are also propos- ed:

Highway Construction Graveiled Roads 0800.000 Permanent Roads.

exclusive of

Trans-Canada

Highway 275,000 51,075,000 Culverts 60,000 Bridges .. . 100.000 Federal-Provincial High-

way Projects . 1,000,000 New Machinery 80.000

Fnlccnwoorl Hospital

Treatment Centre 250,000

Nurses' Residence 25,000 Snow Plow sheds .. 3,000 Vocational Schools 30,000 Cold storage Plant . 0.000 Tourist Accommodation

Loans . . ,. 100,000 Assistance to Rural and

Senior High Schools 110,000 Charlottetown Driving

Park dc Provincial

Exhibition Assoc. . 10,000 Prince Edward Island

Industrial Corporation-

Operatlng Loss 1952-53 19,545

Land Purchase - Town

Planning ........ .. , Fnrm Improvement

Machinery . ..... .. 5,900 Fisheries Development . 32,000 Trap Loss Loans 125.000 General ospltnls

Constr ction 40.000 Rural Electrification 250.000 for a. total Ciipital and Ex- traordinary Expenditure of . 03,392,345

and. as I said before. offsetting this Capital Expenditure will be Capital Receipts estimated at 0918.373. leaving a net capital dis- bursement for the coming year of 02,473,972. These expenditures we deem to be necessary for a proper maln- tensncs of the public services of the Province. Full details have -been tabled for your consideration. I do not propose to make any further comment on individual items. Generally, where increases are indicated, -these have been noted already in our discussion of the work of the various depart- ments for the current year. This House will have an opportunity to scrutinize and criticise them dur- ing the course of this Debate and on the passage of the Estimates. Rural Electrification

The proposed vols of 0250.000 for Rural Electrification does, however, merit special attention. The Government policy, Is an- nounced by the Premier in the Debate on the Speech from the Throne, needs no further elabora- tion, but, the vote means that for the next five years this Govern- ment is prepared to spend a quar- ter of II million dollars per year so ihni. Prince Edward Island farm- erii and their wives will enjoy the

to .

Spring Music

- Recital ilochford

Square School

The Junior Music class of Roch- ford Square School staged their Spring music recital in the school auditorium in the presence of their parents and friends. on Fri- day afternoon. March 20.

His Excellency Bishop Boyle presided and congratulated the children on having parents who gave them the opportunity of securing a knowledge of this cul- tural subject. which will fit them to take part in choir work and

community activities in future years.

The children executed their compositions in I. satisfactory

manner, although for many it was their first appearance. A few showed unusual technique, and no doubt shall become excellent per- formers in the years to come if encouraged to develop their talent.

The following specialties between the piano selections made a pleas- ing variety and added much to the enjoyment of the recital: A playette entitled the "Vision of st. Dominic"; selections on the Har- mony -Band; the recitations. "The Heart of Gold” and "The Three Trees”. and vocal solos by Janet Malone and Sharen Mullen.

The following is the program:-

Opening Chorus: 0 Canada.

The Marian Year-Joan Bell.

Th-eme-Terrill Blanchard.

Princess Waltz-Patricia Gauciet.

Betty and Bill-Lynn Moran.

I Merrilfy We Roll Along-Joan

Saunders.

Little Lullaby-Maureein Paoll.

Pierrot-Anne Howatt.

Imitation-Frances Murphy.

1 Sleep Baby Sleep-Muriel St

John.

My Bonnie-Lorraine Doucette.

Recitation: Heart of C-old-H. Noonan, B. Doucette, P. Campbell, A. Kane, A. Pineau, D, Gormley, F. Welsh.