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; By using a Seaman Mixer 18 miles of a :1" experimental road mix pavement were completed; 8.6 miles of the usual asphalt and stone chips of light pavement were also completed; ' 35 miles of pavement marked with a white centre line; and 210 miles of road brush sprayed with a quick killing preparation. On Capital Account- 20 miles of standard pavement completed on the Trans-Canada I-iighway bringing the total to 30.4 miles to date out of a. prob- able totai of 74 miles; 26 miles of light pavement; 221 miles of roads built to stan- dard specifications; and over 100 miles cleared of trees; mak- ing a total of 381 miles of improv- ed highways. In addition to the above, 40 bridges and large culverts were rebuilt or extensively repaired during the year. Fourteen of these were in Prince County, this-teen in Queens County and the balance of thirteen in King's County. At the present time 30 snow plow units are available to com- bat future snow storms. Tourist at Information Bureau A large scale advertising cam- paign was conducted during the year, including the issue and dis- trlibutlon of some 250,080 booklets and maips setting forth the attrac- tions oi Prince Edward Island as a "Tourist Paradise”, The ragweed elimination pro- gram was further vigorously car- ried on and I think we would be now justified in stating that this bane to the sufferers of hay fever has been completely overcome. The season brought no less than 80,000 visitors to our shores. ranging from Alaska to Panama. Unfortunately, the Tourist Bur- eau nt Aulac. N.B. was destroyed by fire but this will be replaced at the earliest possible date. Tourist promotion will have cost the Government over 540,000 this year and a slightly larger sum is fill placed; 1 should like to deal now with These show that for and total Receipts, Current and C It is anticipated, therefore, tha at March 31st, 1954. will be- Fcrecast net debt March 31. For a total of March 31st, 1954, we estimate current revenues at and proposed expenditures on current account for an estimated surplus of Capital Receipts and Expenditures are also The Capital Expenditures involve an outlay of 52,510,430 and Capital and Extraordinary Receipts at 5503,1500. Thus. total Expenditures arc eslimateri at . or an excess of Expenditure over Receipts of Included in the Expenditures is a Sinking Fund Appropriation of 5568,-425 so that the net forecast, result of next year's operations will be an increase in Liabilities of Add estimated increase to March 31, 1954 proposed for the coming season. BUDGET FOR THE FISCAL YEAR 1953-54 the Estimates for the coming fis- cal year which have been fabled for your consideration. the fiscal period from April 1st, 1953 to s 7,855,402 7,149,409 705,993 presented to you. 3 9,659,832) apltal, at 8,359,002 1,300,837 . . 732,412 t the net debt of the Province as ,M7.31.'l.72(l 732,412 Ordinary Revenue The Estimates for 1953-54 anil- cipates ii total revenue on Ordin- ary Account of 07,855,402. In making up this Estimate we have taken into consideration act- ual yields from the various sour- ces during the past number of years, the varying factors in- fluencing the trend of increase or decrease as the case may be; general conditions existing dur- ing such periods and their prob- able continuation during the com- ing year. Unless there should be A sharp recession in the immediate eco- nomic future, which would he contrary in all present indica- tions, we have every reason to ..m...-:.-Z-.-m-...... COMPARATIVE STATEMENT Federal G... t7I"IlnOlIt you will have noted the growth in the amount received by the Prov- ince under the Tax Rentals Agree- ment with mtawa-from 33,139,000 during the last year of the old Agreement to 03.006000 during the first year of the 1952 Agreement. to 04,201,000 for next year. This latter figure, based on the estab- lished Gross National Production of 1962, became simply a matter of mathematical calculation and cannot be influenced by any change in conditions this year. Actually the total Federal contribution will very little from the estimated total of 34,034,214, now that experience has given us some basis on which to estimate the amount to be re- ceived on Old Age Assistance Ac- count. Fiscal Year 1045-46 Source Actual Gasoline Tax 3 463,070 Amusement Tax 40,730 Liquor Tax 108,144 Tobacq Tax . 68,794 Motor Vehicle Licenses 176,952 Temperance Act ...... ..... 367.749 iis,o4s,1&.E believe that collections will at least reach, if not exceed, that figure. Of that total of 37,855,402 Fed- ernl subsidies, tax rentals and other Federal subventlons and grants will produce and the balance derived from Prov. sources 3,221,188 37, 855.402 1n previous years the figure for the pasl. current and immediate future fiscal years have been dealt with in three separate sec- tions. This year I wish in group and compare the variations in the main sources of revenue for lliose periods. 01" REVENIE l'ISTIMA'l'ES 1951-53 1952-58 1053-54 Actual Forecast: Estimate Statutory Subsidies 647,182 5 647.182 3 647,182 Tax Rental Agreement 2.492.545 3.258.739 3.553.813 53,139,727 53,905,921. S4.201,000 Old Age Pensions 746,064 Blind Pensions .. 38,.'i:'i4 27.000 33,750 Old Age Assistance 6,532 66,000 100,000 Health Grants .. 179,872 220,208 219,464 Limestone 30,532 32,218 39,000 Other Subventlons 40,466 40,613 41,000 Total from Federal Gov't. .......e...&4,181.547 04,291,060 34,634,214 Provincial Source . Gasoline Tax .' m,.”.T.'u,00O 51,250,000 Amusement Tax .. 125,000 100,000 Succession Duties 12,315 847 1,000 Liquor Tax 234.7510 274,00fI 225,000 Tobacco Tax 129,179 155,000 125,000 Motor Vehicle Licenses 189.308 432,910 ,400,000 Corporation Licenses .. 32,810 34,850 34,175 Other Licenses, Permits & Fees 176,545 107,479 137.300 Temperance Act .. 789,011 900,000 800,000 Fines and Penalties . 25,815 34,000 15,000 Other Revenues & Refunds 134.622 125,162 113,713 Total from Prov. Sources ....... ...7.3.260.206 Total Ordinary Revenue From the above comparative table The variable factors arise in estimating revenues from Provincial sources such as Gasoline, Amuse- ment, Liquor and Tobacco ,Taxes: Motor Vehicle Registration and profits on the sale of liquor by The Temperance Commission. In compiling estimates of rev- anue in respect of these for any one year. each source must be considered individually with the overriding consciousness that our aggregate revenues can suffer sharp and sudden decline depend- ing on human interests. tastes or appetites; weather variations, as well as economic conditions. The wide difference in revenues from these Provincial sources, and they are the main items of Pro. vinclai revenue, is clearly indicated by the following comparative table Fiscal Fiscal Fiscal Year Year Year 1040-50 1052-53 1 058-51 Actual Forecast Estimates 31,065,601! 31,375,000 31,250,000 98,837 125,000 100,000 195,208 274,000 225,000 124,575 155,000 1 25,000 278,992 432,910 400,000 676.505 900.000 91111130 .. , ,..54.634.214 1 Therefore, in estimating future revenues, while actual normal or inflated special returns from in- dividual sources must be consid- ered, we have endeavoured to forecast them on a logically re- asonable minimum besla, and having done so, we conclude that we may safely anticipate receiv- ing a total Ordinary Revenue as indicated above of 57,55,402. Mr. Speaker: With your permission I shall now deal with the Estimates of expenditure for the forthcoming fiscal year. , supply The Supply proposed to be granted to Her Majesty involves Expenditures on Ordinary Ac- count of 37,149,409 and these we now submit for your consider- ation. This represents an increase over the current year by an amount of 5670.43!- The as follows: On Debt, Charges .Sl.276.96fl Health 8: Welfare .1.833,094 Education .. 9. Administration of Justice m1,535 Legislation . 98,825 Agriculture .. . 274.555 Industry & Natural Resources Z)8,020 Highways, Bridges, Ferries, etc. 1.211.405 Refunds of Revenue, including Gasoline Tax Rebates 251,000 Other Current Expendi- 'tur9s including Grants to iMunlclpaililes and Incorporated Villages 155,137 General Government 369,818 Total .................................. 47,149,409 The proposed Estimates pro- vide for an anticipated surplus of 3705.993 after providing for a Sinking Fund Appropriation of 5588,425. The following Expenditures on, Capital Account are also pro- posed:- On Road Diversions .... .3 5,000 Highway Ccnstnlctfon Graveiled Roads 5647.500 Permanent Roads. exclusive of Trans- Canada Highway 352,500 1,000,000 Culverts ................ .... 50.000 Permanent Bridges Wharves Federal-Provincial High- way Projects New Machinery Fslconwood Hospital Treatment Centre Nurses” Residence . Boiler Room Snow Plow Sheds Vocational School Information Bureau (Aulac) .................... .. 4.000 Information Bureau (Albany ........................ .. 10.000 Fishemien's Loan Board --Advance .................... .. 100,000 Fisheries Development .. 7.500 Assistance to Rural Schools ' 30.000 cm... n..'..;1.'.""'.i-';.".".;"'"' and Prov. Exhibition Association 10.000 P.E.l. Industrial Corp. Operating Loss 1951-52 32,430 General Hospitals Construction ............. .. 149.000 Land Purchase-Town Planning .................. ..... 1.000 Farm Improvement Machinery 19,000 For a total Capital and Extraordinary Expendi- lure of and, as 1 said before, offsettlnlz this Capital Expenditure will he Capital Receipts estimated at 5503.600, leaving a net capital dis- bursenfent for the coming year of 32,006,830. These expenditures we deem to be necessary for the proper main- tenance of gthe public services: the extension and improvement of our highway system; the erection of additional facilities to house our aged, infirm and men- tally ill; the encouragement and development of industry; and. the provision of assistance to f'lllPS, towns and villages, to enable them more adequately to perform their proper municipal functions. Full details have been includ- ed in the tabled statements and this House will have full oppor- tunity tn analyze and criticize our proposals during the course of this debate and on the final passage of the Estimates. The preparation of such a Budget involved a careful study, not only of the essentlality of the services to be rendered, but of the sources of revenue to provide for their immediate or deferred payment. The Supply asked for reflects agreed governmental policy and with the surplus on Ordinary Ac- count cf 5705.000 after providing a sinking Fund Appropriation of 5568.000 would appear to be well within our capacity to pay with- out resorting to additional tax- atinn. In fact. with careful handling of l.,3 public funds and with the probability of revenues exceeding the minimum basis of forecast, we can. at least, have a reasonable hope r' again attaining this year's achievement - the payment of both Ordinary and Capital Ex- penditures out of current income. Before closing may I deal short- ly with a few matters of policy reflected in the budgetary propos- a . The vote of 550,000 for Insurance on public buildings includes, as it did last year. s20,000 to be paid into it special Sinking Fund in- tended eventually to enable us to be our own insurers. It is proposed to reduce the amount of Insnance each year by the sum standing to the credit of this fund and the premiums thus saved added to the fund. The vote to cities and incorpor- ated towns is increased from 32.00 to 32.50 per capital and to villages from 750 to 31.00. This will in- voive an expenditure of 893,137 or 316.206 more than last year. The City of Charlottetown will receive altogether s50,7i7: Sumrnerside 316,”? and the balance distribut- ed on the above basis among th other towns and villages. - In the Department of Educa- tion 365,000 more will be expended on Teschers' salaries and the overall increase will be almost 0100.000. including addition 1 school book subventlons; scholarships: proposed Expenditures are I Replies To Queries In Legislature " Replying verbally to l queatlois by Major John A. MacDonald. Third Kings, in the Legislature yesterday Premier Jones said there were no local agents from whom the Temperance Commission made purchases. Regarding a ques- tion by Mr. R. R. Bell as to whe- ther the Amalgamated Dalries had applied to the Government for a loan the Premier said they had been approached and had suggest- ed a set of conditions to the dir- ectors. Nothing has been finalized as yet. Answering Mr. J. W. D. Camp- bell, First Prince, he stated some standing lumber on the grounds adjoining Falconwood Farm had been cut and used by the Farm. A similar thing had been done by the Golf Club and in both instances a. considerable amount of "slash" had been left lying around. He said the Chief Forester. Mr. Frank Gaudet. had been instructed to clear up the condition and also to cut out: such trees as should be removed. Hlllsboro Bridge He also told Ma1.Miu-.Donsld that a letter had been received from Hon.. Lionel Chevrler offer- ing the I-iillsboro Bridge to the Provlnce. However. the offer has not yet been accepted, the Premier stated, because it would mean that the Province would have to provide for the upkeep. Regarding aid to fishermen suf- fering losses in storms I-ion Eugene Cullen tabled some cor- respondence indicating the Prov ince was attempting to work mil some agreement with the Fedora: authorities to provide for loan.-. However, he said no action has ye: been decided upon. teacher training loans; grants; and summer courses. Agricultural estimates creased by 547,360. These are reflected in the fol- lowing services: Field Supervision are iii- Exhibltions . 1 '1 Women's Institutes 6,000 Livestock 5.00:: Agricultural Laboratory 3,404. Junior Farmers 2,50 Llmiestone Bonus .. 11,09: and Veterinary services 5.0!: In. the Department of Indusit as Natural Resources the extensi: of services has already been not: as well as the cost. I think t: work of this Department desei-v the very complinientary opinir so generally awarded it, and ti Minister congratulations on t: fertility and soundness of the i novations initiated. In Health at Welfare the it: Posed Outlay of 31,833,094 rep: cents an increase of almost 321' 000 over this year's eicpenditurr The exceptional program of 1 Department has already been : reviewed by the Minister in Debate on the Draft Address, r needs no repetition. I have aheady indicated 1 scope of operations of the Den. merit of Public Works as I-Iighiv. for the current year. The pirog. for next year involves an nu of 31,211,000 on Ordinary ”A l:'. 'for road maintenance. anon rnoval, etc., as well as capital : penditures oft1,'136,500 for i manent I-iighway Construction. cludving 0350.000 on Trans-can from Borishaw to Queen's Arms . a new North River Bridge. In 1046 3. fund known as Unsatisfied Judgment Fund" set up to look after damages 21 mg from collisions where parties at fault were not finarx ly able to satisfy judgments 1': ereci against them. A fee of : was collected with each car ll: or operatorls permit. Up to N!" 31st. last, sB1,44'l was paid in the fund, and since its ince" s34,214 was paid out up to Dec ber 31, 1052. Under the legislation seltll"; the fund, the party at fault cs. obtain a license without reps; the amount of the judgment to fund and furnishing proof of nanclal responsibility either obtaining insurance or postiiig .- isfactory bonds to the amouii, 310,000 personality liability 1 02.000 property damage. Rural Electrification Rural Electrification has I the source of continued study a. definite policy to carry cu! tensions in rural areas is non 1 lng developed. In order to n: that ii program, once deternti. can be effectively carried 011'. sum sufficient has been placri the Estimates for this pllrposr The foregoing will give somr dication of the problems, final and otherwise. that face the ( ernrnent today. 1 have erideim ed to give you a clear pictu;-r our financial position, and the (1 cultles presented in order to acli a balanced Budget. 1 would like to thank myl uty, Mr. William E. Maney. Fl for his uiitirlng efforts in as ing me to control and supe: public expenditure; in the prep tion of the Financial Ststeni. for the current and the Fstim for the forthcoming fiscal yen: our revenues would appear ll sufficient to meet our reqi: merits, provided the public an- erate by keeping their demz within reasonable bounds, and Government itself proceed V. caution in the future. Under those circumstances. -, with a. continuation of the pre- hlgh level of national product I believe we can look forward an era of debt reduction and ; maintain the public services or basis comparable with that Canada, as a whole. PIIONY EXPERT LONDON UP --A man pm aa an expert on current events I hired by two government agent for lecturu here and abroad, was disclosed in court where . pleaded guilty to nine counts false pretences. The accused, w had only an elmnentary cducaiir. , was given a year in Jail.