MARCH .27.. 195,3

THE GUARDIAN. CHARLOTTETOWN

PAGE NINE

Increased f&0l!P0i.lI-tlltua-as

(continued from Page 1) gall to attain a. combination of three thln80-

(gl A greatly int:-eased pof7Iila- g

tion.

(ms subdstantisl expansion of

- an

mile) Reduction. or summation of ur public debt. 0 The first would appear to be almost a corollary of the second. but year I urged before this House a demand for a survey by the Federal Government of econ- omic and geolozlcal resources of me Province which might be cap- able of successful exploitation- ,

Through the efforts of the Min- ister of Industry as Natural Re- sources such a survey has been agreed to and will commence this year continuing over a period of three years.

we have good reason to believe that the results of such an exam. lnatlon will reveal many industrial possibilities. And. lgsin may reiterate what I said last winter. that if and when we do. let us chart our course based on the firm conviction that growth and ex- pansion is possible, that it should be attractive to our investing pub- lic "and that it can provide the out- let for the native genius and abil- ity of our youth-

with a greatly expanded D09- ulatlon and with developing in- dustrial potential, the sources of provincial revenue will be broad- cried and their incidence less di- reotly felt by our primary produc- ere.

Fiscal Year Ended March 31. 1952

our public debt as of March am, .951 was 315,554,559. andithe first charge against our income was the amount necessary to service this debt, namely s1.l0i.050. This nat- urally meant that we had that

much less , provide for the ordinary. turea of govern- merit.

- -fiscal year 1961-52 the public debt was increased by 31,815,290, and the amount requir- ed to service this debt amounted to 81,172,935.

It can readily be seen. therefore, that a succession of debt increases would eventually lead (s) to a complete starvation of the public services. or (b) further and more complete dependence subsidies and grants to supplement our revenue. 1 will frankly say that trend should not and cannot be allowed to continue unless we are prepared to sacrifice complete- ly our provincial autonomy. I will say fuither that it has been my aim since my appointment as Pro- vlncial Treasurer to halt the suc- cession of debt increases and to reverse this unhappy state of ai- faira, but without sacrificing to any great extent the scope of public benefits provided for our people

The Public Accounts recently Lbled for the fiscal year ended March 31st. 1952, show that of a total Ordinary Revenue of 37.441,- 830. we received from the,1'icdenl Government through Subsidies, Tax Rental Agreement and other As- sistance Grants 34.181547, while the balance of 03,200,200 came from provincial sources. 9

During that period our Ordinary Expenditures climbed to 90.990097, leaving a surplus on current op- erations of 0446.730.

During the same year we made capital Expenditures of 53,838,415, with a resultant increase of liabil- ities of 01,010,299-the difference

being represented by the ainplus Arti

on Ordinary Account. a sinking Fund provision of 0000.000, and cer- tain Capital Receipts totalling 3561.391.

The net debt of the Province as of March 31st, 1961 was 815,004,509. and at March slat, I902. l1'f.sn,00'l, or a quarter of a million less than that forecast last Marchn

Fiscal Year Ending March si, mi

Mr. speaker, with the perlnfs- L

slon of the House. 1 table the In- terlm statement of Revenue and Expenditure for the fiscal year April ist,-1960, to March 81st, 1053. consisting of ten months act- ual and two months forecast. During the fiscal year ending the tilst day of this Month the Prov- lnce expects to collect revenues, on 0rd or Current Account,

amounting to 37,910,208, or 0000.154 more than we had anticipated. The revenue sources mainly responsible for this increase are:

Liquor Tax . Motor Vehicle Licenses .. 02,910 Falconwood dc Infirmary Fees-.......,........ .. a7,ooo Beech Grove Fees .. 11,000 Fines as Penalties 14,000 Profit from sale of .. 120,000 - .000 Sundry Items . 82,989

Totalling .............................. .. 0090, From this amount tsmote less was received from Federal lubven- tions. due to a smaller nlnnber of recipients part' 'patlng or qusiif - ins under the terms of The Od Ase Assistance Act. of the Ordinary the current fiscal year is as follows: A (A) Government of Canada V 1 es . 0 647,102

Subsdi Tax Rental Agreement 3,200,789

1 other Biliventions ”ago Total from Fbdsral Government 34,291,900

(I) From Inca! sources (1) Taxes

mo show

on federal salt

799 servative

Vtoaiitnltod

SMAEY licenses.

re:-niltasrnau .... ., 11.950

m '1' 1.. 1 5'30". cmperance .... .. . (4) lines and Penalties 3 84.000 (0) sundry Revenues

and Refunds .......... .. I 121,270

Total From Local ss.m.m

or, as I said before. a total rev- enue on Ordinary Account of 07.- 9i0.200. the highest in the history of the Province.

Before passing to the expend- itures on current operations I wish to draw your attention to the growing economy of Canada. In 1952 strong consumer demand, re- cord capital irweshment, a full flowing export trade and heavy defence outlays, all sparked the Oanadian economy to new hlg I For the countiyaa I. whole it was another year of record production, income, employment and trade. The gross national product-which the market value of all the goods , od-uced and the serv- ices formed in the oounti'y-- climbed from 010 billions, 618 mil- lions in 1948, to :21 billions. 4.48 millions in 1951, and this was re- nested in the increased payments to the Province from 08,139,727 in 1951 to 83,905,921 in 1952, or for the fiscal year ending March 31st, 1058

In 1952 ..ie gross national pro- duct. is estimated at almost :23 billions and the direct result will be to further augment Federal payments-under the new Tax Ren- tal Agreement for the coming fis- cal year.

The following figures will give some indication as to the contribu- tion which Prince Edward Island has made towards the national

total. A summary of railway im-

ports and exports from the Prov-

ince during the year 1952 reflects

this both directly and indirectly. Imports

Fertilizers and Lime

Gas. and 011 2.350 Lumber 411 L. C. 1.. 3.107 Meats 110 Machinery 310 sugu 214

151

I71 Roofing 61 Canned Goods 266 Bricks and mment ., 247 Other Misc. Merchandise 2.968

' 16,707

In addition to the above. con- siderable amounts of coal, fertil- izer, gas, oils. lumber and machin- ery are brought in by boat and truck.

Retail sales, as estimated by an Intei-naticnral survey Institute, total some 540,000,000, exclusive of such items as automobiles, trucks, gas and oils, coal, fertilizers and ma- chinery.

The 001 carlcsds of autos would represent a value of

Coal ..

Fertilisers and Lime ,.

Gui at Oils ........... 7.000.000

Tractors and Trucks 2.900.000

Other Machinery ..... .. 1.250.000 319,000,000

or a total imported value of not

less than 365,000,000.

I

Exports Csriowdinga 14

cles Butter and Cheese .. Hides .. ..

Miscellaneous

Total .. In addition to this.

should be added the quantity of goods and

farm produce exportcd by boat and truck. It is interesting to note in regard to the latter that no less than 00,000,000 worth was trans- ported over the Wood Islands- Oaribou route alone. It is rather difficult to place a. dollar yslue on exports but the 0,440 oarloads of potatoes would be worth in the vicinity of 08,000,000.

Wages are 'a major factor in ar- rlv'-'g at Gross National Produc- tion, so that to the production noted above should be added the sum total of all salaries and wages earned during the year. A con- estimste would place these in the vicinity of 04 million dollars. Just how important wins are, can be deduced from the fact that while the G. N. P. rose from 321 billions 0440 millions in 1901 to 8M billions 0904 millions in 1962 or an increase of 31,390 millions, increases in wages. salaries and labour income accounted for 01,- 12: millions of that total. I

With. consumer prices almost static it is obvious that - corpor- ation ofiis, nnail business returns and t.is net yield to the primary in-oducersrsotuslly participated only degree in the national

gy, . .

our freight bill for 1902 was al- most twoivs million dollars which indirectly contributed towards the stan total of National Production and incidentally would definitely at far from being run at a loss t P. I. I. Division of the O. N. R; is one of the best revenue

fncolii Tait Arrears Ina produclnh arses of the whole sys- Bucoeuion Dutlu u1 tam. Unfortunately, this freight . . ..,.m....... which we pay. is credited to the (2) LI; 0 ' "'”"mfaaoi-tr s Ihsiii .063: "1"" ensagllarnilunrui . .. an escrvces gusto: Vghiclm. : , we get are made to correspond to issnbu g sgaggo the revenue uplifted to us and not

Corporation mum. :4, to our actual sash contribution. Pslogiwood, mm-m. i to the financial busi-

Inch . . . may I w to expanding . rs- kswas closely as

, - tstiaii grant- , oneys ago. will be dam tad .200 breakdown of tun by fmiouon as re-

The Interim Report shows that

With, that' saving of 3461.077 plus our increased revenues of 5608.754. together with our bud- seted surplus last spring of 0667,- 399, we will have a surplus "on Ordinary Account of 81,437,230. In other words. we maintained a strict system of budgetary con-

trol In all departments, and by exercising that control, together with the expanding revenues

from local sources, we will have achieved the largest surplus in the history of the Province; again may I repeat, 31,437,200.

During the year we spent on Capital Account for- 1-ilghway Construction,

including culverts, etc 31,130,500 Bridges ., 150,000

New Machinery .. Trans-Canada Highway .. Fisheries Development,

151,500 896,000

etc. 84,500 General Hospitals

Construction ................ .. 140,000 Assistance To Rural

Schools ......... 80,000 Sundry items of a

capital nature 171,513

For a grand total of .... ..32,804,013 which was within 313,063 of the amount voted for this purpose last spring.

Now what is the overall pic-

ture? As agalyist these Capital Expenditures we will have re- ceived during the year certain Capital Receipts: On Trans-Canada a Fed-

eral ccnirlbutlon of 566,000

On Hospital Construction 85,000 Sale partChlnese Bridge 13,661 Sale other fixed Assets .. 12.602 Refunds of Loans .. 17,579 Interest on Sinking

Fund Investments ........ 69,597 For a total of .................. .3 884,439

To this must be added the sur- plus on Ordinary Account of

01.431230 and the Sinking Fund payment of 5538.485, or a total of 32,860,154, and the net result in reduction of the Provincial debt by 556,141.

It is anticipated, therefore, that the Net Liabilities of the Prov- ince as at March 31st, 1953 will be 317,313,726.

Computed as l'o1lcwa:-

Total Expenditure Ordin-

ary and Capital

Total Revenues

Leaving an excess of Expenditures over Revenues of .

Deduct from, th

5 551,941

king Fundi Provision--3538.485

Pius Sinking Fund - Earnings -69,597

for a total of 608,082

Leaving a Net Decrease in Liabilities for

' the year ........................ .3 50,141 Our Net Debt as of March, 3152 was .... 317,369,967 4 ' '-7'"-'7 Therefore, the forecast net debt as of March 3153, will be ...si7.313,726

I suggested earlier that it had been my ambition as Provincial Treasurer to halt the succession of debt increases and to achieve ani overall surplus which could be applied in the reduction of the Provincial debt. Tonight. I am most happy to be able to an- nounce that this aim has been accomplished and for the second time in over forty years has the Province witnessed a reduction in its overall debt position. The only other occasion within that period was In 1926 when the debt was reduced by 318,092. but the Capital Expenditure then amount- ed to less than 361.000: 0011100190 with our debt reduction of 356.000 after making Capital Expendi- tures of over 32,800,000. And fur- t-her, may I repeat, all the ordin- ary functions of Gover ent were maintained at the hghest level, while our revenue pro- ducing assets were increased by some two and one quarter mil- lions, and over one-half million was expenditure on Hospital Construction, Rural School Im- provements. Industrlal and Fish- eries Development and other As- sistant.Q Grants. , -

Mr. Speaker, before presenting the Budget for 1950-54. I should like to deal briefly with the work of the various Departments. indicating the changes reflected in the expenditures, while. leav- ing detailed reports to the re- sponsible Ministers concerned.

Arlollhln

The Department of Agriculture had a most active year in the de- velopment of policies designed to assist our farmers in turning out a better product. to speed the flow of pfoduct40n. and to secure new outlets for the sale of their agri- cultural harvest.

During the c t year amend- itures amounted to an-1,15. an in- crease of sane 017nm over that of the previous year. 1Pield,super- vision has been extended anduthe Province divided into field service sense with rspresentst.ivas' sp- poinssd for each county. 'nie vet- ernsry service has been expanded to ineiude.N now all in the pour- is district. seed survey for the

of ascertaining of gain sowed was continued. in Jimior

ary Expenditures will amount to

08,479,978. This is broken down as O

for the current fiscal year Ordin- : ' ... llows: , Increase . or Decrease Function, penditure over Eltlmltsts 1. Debt Charges ...... .. ....s1,172,935 .&- 117,526 2. Health cl: Welfare 1,622,834 --317,844 3. Education, 1,159.32:-3 -- 49.376 4. Justice 157,435 .4. 3,000 5. Legislation .. 91.35 - 5,695 0. Agriculture 221,195 -- 30,350 7. Industry, & Na ura Resources 175,104 - 5,261 8. Highways: Bridges, Ferries etc. ........ 1,105,155 v -1- 12,100 9. Refunds of Revenues (Gas. Tex . Rebates. etc.) .. ............. ................... ...... -1- 43,449 10. Other Current Expenditures .. 15,539 11. General Government -4- 17,465 Total Ordinary Expenditure or 0461.077

less than we budgeted for last spring.

Department Of Attorney-General

During the year, despite an ex- tensive educational -program, high- way fatalities reached almost al- anning proportions, with no less than 24 deaths attributable to the operation of motor vehicles. other violent or accid U-1 deaths total- led 40, with the result that the additional costs of investigations, inquests and prosecutions increas- ed the eiapenditure of this Depart- ment by over 05.000.

Next year it is proposed to in- crease the R.C. M. Police force from M to 40; the additional per- sonnel to devote the major part of their time to highway patrol and other safety measures. The cost per man will be increased from 31.400 to 02,000 per annum and this will entail an increased ap- propriation of 028,200.

The estimated outlay for 1953-54 will amount to 3201.535.

Education

During the year the Gorvei-nrnent sought to develop and train better teachers and to encourage young people to engage in teaching acti- vities; teachers' salaries were also increased and large sums expend- ed to improve school buildings, grounds and equipment.

On the major problem of salar- ies the Goverrnmen-t granted a straight across the board increase of 0100 per annum, plus increas- ing the supplementary grants from 075 to sl26, duplicating the am- ounts voted by the loal school dis- tricts. The actual net rmult was it general increase of 3150 per year for all teachers in the Province. This involved an additional ex- penditure iri the Department, on salary increases alone, of s1oo,ooo.

An increase of 55,000 was pro- vided for the school book subvert- tion and an additional s5,coo is being proposed for next year. bringl g the total go 030,000 to meet he steadily rising cost of text books. To this extent par- ents will'be relieved from any ad- diticnal burden.

In addition to an expenditure of si,150,320 for education, some 880,000 was granted for rural school improvements. Eight new schools were built and major im- provements to present existing schools and equipment. in approx- imately 200 school districts. were made during this year. It is pro- posed to continue this grant an the same basis for next year and a like sum has been included in the 106344 Estimates.

Health And Welfare

During the current year the ex- pendiltures on Ordinary Account, exclusive of Old- Age Assistance, will amount to 01,490,034, or about 340,000 more than that spent in the fiscal year 1061-52:

The care and treatment of tu- berculosis patients cost the Prov- ince 0364320: mental treatment and care K3-49.174, while the ex- pendltures for t-he aged and infirm at Beach Grove reached a new high of 0125.000.

Increased per diem grants to aid the public hospitals involve an ad- ditional expenditure of some 545,- 000 more, for a new high of 0150,- 000 this year.

In Welfare 360,000 was spent on social assistance: E0000 on main- tenance of neglected children: 530.000 on motheis' allowances: 030.000 on blind pensions and some 0132.000 on old age assistance.

Although monies were appropri- ated by the Leglslature last spring for a Treatment Centre and the erection of 11 nurses' home at Fal- conwocd, satisfactory plans had not been agreed to during the year. These have now been form- ulated and votes totalling 300,000 will be submitted for the ensuing fiscal year.

Industry And Natural Resources

The expanding service rendered by this Department since its in- auguraiion. some four or five years ago, is reflected in ever increasing annual expenditures.

In the year 1051-52 3107.862 was spent on trade, town planning, transportation, fisheries, game.for- estry.' electrical inspection, farm improvement. and industrial de- velopment, aside from advanciiig 981,000 to the Fl.shermen's Loan Board.

This present year the Depart- ment forecasts an expenditure of 0005.004,-5176.104 on ordinary Ac- count and aaoooo on Capital items.

Fisheries Dlvhlon

Continued experiments in the use of various types of boats and gear is being carried on. An early mrlns fishing experiment conduct- ed aboard the dragger "Marjorie and Mdrybelle" in the Gulf of St. Lawrence, proved the presence of fish stocks much earuer than here- tofore known to our fishermen.

One of the new 00'ft. tdraggers, completed last year. is to be used by the Department this ccnilng season for experimental purposes.

With the co-operation of the Industrial Development Bank of Oannda a new fish filleting plant at Bouria was established.

' During 130-419 a further sum of 003.000 was advanced to the Fish- snnenh Loan Board for develop- ment pispoaes. frhis amount brings

of the total advanced to the B

d dines it was re-established in Ap- ril 1949 to 013.000. .

The Department proposes to being the total advances to the 1'lsher.men's Loan Board to 0300.- Ml. This amount, together with

I . . . 0 ,.N.,

oollecpons on old loans, should

nnanc: all, future operations of the Board.

Forestry

An experimental plot of 12 acres was planted last year with some 17,000 two to six year old trees.

Early last. spring a tree nursery was established at Beech Grove and some 30 seed beds grown. Twenty-six of these beds contain approximately. 700,000 Red Pine year old trees and the remaining four beds 70,000 European Larch. In addition, twelve beds were sown in the fall and with average suc- cess an additional 50,011) plants should be available for transplant- ing this spring.

Fish and Game

During the year the Department constrnlcted, or assisted in the con- structiori of, ponds at Vernon Riv- er, Baltic and Rlverton.

Farm Improvement Sonics

Due to the large number of ap- plications received by the Depart- ment for land clearing, drainage, and farm irniprovement, it was necessary to purchase an addition- al tractor and bullilo'z.ei' unit to supplement the present equipment.

Negotiations were carried on be- tween the Department and the Federal Department of Mines and Technical Surveys, and, as I have said earlier in my speech, final arrangements have been made for a geological survey of t-hePrnvince over a three year period.

Public Works And Highways

In this Department weather con- ditions and heavy demands for improved highway services result- ed in increased expenditures. both on Ordinary Account rind Capital Projects. The total expenditure for

alone, exclusive of snow removal, amounted to ss.1u'7.500. Mainten- ance 37119500, Capital 32,300,000), or 3400.500 over the estimate of last winter. on Maintenance Account- 74.:f miles were heavily ditched: By the use of tractor-scraper units some 180,000 cubic yards of

the year on highways, brid-gos, etc. -

After extensive patching some 30.4 miles of seal coating was ap- plied to existing pavements;