lilies as noel by Q ft. 3-Cant Gas Tax Increase -- rm --- -- - 0- miuhfn can ast..?.a1-udsliv: inn." '1' in VS II V& ciuiiiiiud one use l '0'!" in! limb . "I. ma by one of siasi-ten aroataat noon at 88,It.IIO.r7 as of March! May I draw your attention Iopvd tntaiu-rs. it is an ago all problem 11. IN; made up ss'l'1;lpgIbg-::im ufnmlmxlw that is still seeking solution. uss "I494 09" - t v AGES EINT 5;, ginkigi rand :bicle fees in the current year. aatiux RENTAL .( J” . . " 4 0n444iset i bov iefiecttheuwardl A" "":"”' "- inirstments Jnnshl .” J N". in me 7' rhdipected this fiscal year uathr th wt Flllldi-'4 9'" "5J”' nun” "fhzy -nu grumi present Federal-Provincial Tani ''''"'''M 10.11 aszsisss the foresight of this gum-iiineatl”"'"' '""”'”' ""5" "l”''' oi-owl will ' ”-m- uh h m ." bl , in nu on March at. 1057. run addutuaai Bank Ovcmnn. 3-4 J tran-sporttlaltittii fnhilietier as am tsirevnut h 7'" w the "bu”u.I 85 114361 them in the various phases of can t '""”" H '5' '"" ""'k"'” 7" merical undertakings. The servieaimm "c;:'w'md:l.?l',;ld, ""3: t ' . agreeme nc Toill 5” "mu uo'3Mu'" Ffcuggefnge; 'r:'::o:oJd;.:”dw?l5;,;'u nual amount of Canada's per car CAPITAL AS53110 H helped to cM'n C me its grant to the provinces. This Though the Public Debt was in- 3303:; outlook 0' Prmge Ed. agreement expires this month and creased by 82,427.33! durillili tear. yet. at the same time WE it-quircd Capital Assets consisting of liighuays. Bridges and Road liat-hinery at a cots of 81.144328. Fixed Assets such as the New Treatment Centre at Falconwood . P.-dtriatrlcs Wing at the Provin- cial Sanato iui... with additions to I-iaiennwood Hospital, Provincial Infirmary.-and Bench Grove prop- ('I'll'. etc. at a cost of 8402.597: and made Loans and Advances to- Mrd the promotion and develop- men! of Industry. and community uclfare purposes, totalling 8278.- 137. in addition, the Government contributed 838,713. towards the construction of new hospital facil- ltics; assisted rural schools to the amount of 8115.000: SP0!" 0V9l' 531110.000 on rural electrification, and assisted fisheries in develop- ment by another 860,000. for I total expenditure of a capital na- ture of nearly four and 0119-0!" million. It is gratifying to note that. not- withstanding the heavy demands placed upon the Government by our people for essential and yes. even non-essential services. the present debt of 20 ll'Iml0ll 0011311 burden upon our P00Pi0- A "'5' stantlal portion of that debt has been the means of creating per- manant, and better still. revenue producing assets for of this and com gsnerstions. NEW SECUBITI The public debt operations. dur- ing the past fiscal year. includ- ed the redemption: of ',the 8131!).- 000.00-8 ce - year also of May lst,,"104i1, which matured on May 1, 1955. In addition. tha Province issued nsw securities amounting to 81.700.000.00 at a cost to the Province of 0.05 per cent. Thess debentures bad a 590 0!?- cent soupon attached and were issued for 10 years. The urpose of the issue was for rsfun ing the balance (14 the I per cent lune that matured on May 1. 1955 8766.664, and capital expenditures on highways 8058.016. The average interest rate paid by the Province on its funded debt was slightly higher at the year- end than it was at the beginning. At. March 01, 1055 it was 8.3 per - cent as compared with 8.2332 per cent on April 1, I955. CURRENT FISCAL YEAR I now coma to a review of the public business for the current fis- ral year April 1, 1954 to March 81. 1957 The Interim Statement of Rev- nine and Expenditure consisting of nine months actual and thru months forecast. tabled for your consideration. shows that a total sum of 813,471,062. was expended on Current and Capital Accounts. including loans and advances made for fisheries and develop- mcnt purposes. In ndddition, the accounts show a transfer of 8181,- 700. to sinking Fund Investments. Total Revenues amounted to 811.- 116.909, leaving an overall deficit of 81,703,528. after providing 855),- 250 for Sinking Funds. This deficit compares vary favourably with the 81,340,041. ortalnsllv mimet- ed in the budget for the current year, and is attributed to a strict system of budgetary control in all departments. By exercising that control. together with tha expand- ed revenues for the year. we an- ticipate a surplus on Current Ac- count of 81,100,523. after providing 8360.250. for debt retirement. on Ordinary or Current Account the Province expects to collect by March 81. 1951 so.m,411.. or sun,- 435. more than was anticipated. our Ordinary Expenditures for ths same period 8n.7.1a,i54., up some 5110.000. REVENUE A summary of the Ordinary Re- venues for the current year is as follows: From the Federal Govei-anus Subsidies g "mg. TEX Rental Agreement 4,s14.s7s K h . ussisn . if venttona Jug Total from Fedei-.1 Government 35,419,; From Provincial sources Taxes lnco E1 Gaulmeon ectrlclty 8 50.000. 7 Amusements gnu. I-"1"" moon. Tobacco 1.0.”. 8!,lI4,II. l.tt'cnsc.I, Permits and Fees Motor Vehicle Licenses 8 560.3. (Zornorauon Licenaas Italt-onwood, Boat-it Grove Old lfrm-incial Iansisriurn im in,4ss gourt Fees up if-ii"i.'li”'i'l.”3.'&n.. 133: ;mf,- can-st . etc. 11,191. --ti 55- sun. ward Island. It has added. at least. four months to the period of ear- lier normal operations. What this may mean in dollars and cents to business and to the public in gener- al is most difficult to estimate. Judging. however, from the increa- ses ln returns from gasoline tan and motor vehicle registrations and the relative prosperity of our people, the financial uplift must be regarded as impressive. that the revenue from the sale of liquor has not increased. While on this subject I should like to make a few observations. If liquor falls within the luxury category. then provincial revenues from this source will be highly sensitive to economic 'i t ; if on the other hand, as some contend, liquor as a social necessity, liquor revenues should be fairly stable. However. the most recent figures on liquor sales indicate a levelling off in I venue from this source. DISTRIBUTING TOTAL Even with a decline in the sale of liquor. the amount of money spent on this commodity alone is a disturbing total. Taking into con- sideration nll those factors whlbh tend to a lower overhead and a- largar margin of profit. it is still a total that causes one to wonder- hum whether more liquor is being con- sumedw by Individuals, or whether more individuals are consurnlng liquor. The alternatives are not reassuring. The situation, indeed, gives us cause for further think- ing. When we consider the amounts that the public willingly and glad- ly pays for nonessentlnls, as oppos- ed to the contributions grudging- ly given in respect to health, ed- ucation and social services, we are reminded of the utterance of Benjamin Franklin -- as found- ed in truth today as they were on the data of their delivery, almost two hundred years ago. "Friends and neighbours. The taxes are indeed heavy-and if thou laid on by the government were the only ones we had to pay we might the more easily dis- charge them. but we have many others and much more grievous to some of us. We are taxed twice I! mllllil by our Idleness, three times as much by our Pride. and It is most encouraging to note. is replaced by the new federal- provlncial tax-sharing arrange- ment. In the budget part of this speech I will remark on this new proposal. and its method of cal- culation. From the Interim Statement you will note that over 55 per cent of our revenue is fixed and subject to periodic agreements with the federal government. the remain- ing 45 per cent finds its main sour- can in the tax on gasoline, motor vehicle fees. and the sale of liquor. These major items of revenus are greatly variable. They are subject to the spending power of the peo- pic. This shows how vulnerable our provincial economy can be as a result of national and local condi- tions. EXPENDITURE! At the last session of the Legis- lature there was presented for your consideration and approval the Estimates of Expenditure for tbs present fiscal year which ends the 31st of this month. These estimates. as brought down. made provision for some in- creases in program costs. It was not anticipated. however, that the price rise would be so great and swift to increase in some cues to over 25 per cent. Consequently, nearly all departments found it exceedingly difficult to remain within their appropriations and yet carry forward the programs as planned. The Interim Statement shows that for the current year expendi- tures on Ordinary Account reach- ed an aggregate total of 86,735,154, as compared to the aforesaid Ea- timates of 8ll.5li4.33:l.. br 8150.821, more than we budgeted for last spring -- less than I perl cent. Very good administration control I should say. During the year we spent on it- ems of a capital nature, including loans and advances for fisheries and industrial purposes. and rural electrification - 84,735,908. Off- setting these expenditures will be capital a 051,612, thus leaving a net capi- tal disbursement for the current year of 83.664196. A comparative summary of ex- Dendllllrel, with estimates for both Ordinary and Capital. includ- ing loans and advances mnds for Function DEBT CHARGE! On reviewing these expenditures 1 was quits concerned with the large amount of 81,470,625. for aer- vicing the public debt. of this amount 8560.250. was required for debt retirement. The toal 81.470.- 625. represents liiproximately 18 per cent of the revenue of the Pro- I054-57 1956-57 is as follows: EXPENDITURES - ORDINARY AND CAPITAL For the Fiscal Year mailing list March, 1857 Estimates Forecast Increase 2 Function 1054-57 1054-57 Decrease (-) Debt Charges 31,535,592 s1.47s,s2s .5";-1 I'ilcs;th ............. .....'T" .. 1,536,741 1,505,933 . I Eguclgf and Labour ... E11520 810,957 7.67 0” 1.445.359 -21.121 A””""Y-5""-"'4 225.149 .. a sat Legislation p mlgag 9"” Agriculture ....... 500.320 s52.zis sijau 1300:”?-I&V.F:i?ltu1;n1 Resources s erea ........-.. 128.260 115, .. Hlrgliwgys, Bridges. 3” ""1 err es, etc. . 1,3 . Public Works 33:3 I ”;:;23';, Refunds of Rcven 345,000 375,390 29:” Grlnta and Assistance to Municipalities and in. corporstcd Vill 123, 1 Insurance Premlumnsul .. 30.15103 1333.3 g. "1" Insurance Reserve Fund 20.000 zoom g. . General Government 411.513 437.352 35 g. Total Ordinary Expenditure ....8l,564,8:l8 83,735,154 3 150,3” CAPITAL sun o-rnax EXTRAORDINARY n isnates Forecast Inereaaa 3 men Decrease (-1 mlhwlYl.B1'l e 1. 2.930. Fixed Assets ..s "'g3'& Loans and Advancex 120.1110 1o5'sgg .. ":3; OHICET Extraordinary ' xpenditurea , Rural Electrification 3,3 ' 33:: Total Capital and other Extraordinary 8,011.3 3 4,735,903 g mg. Total ordinary and Capital Expenditures ........8l2,495,5aI gupgymg 3 my mg thought with you. IIEALTI AND WEIIARI Coming now to expenditures in the fields of Public Health. and in welfare. the overall estinaats picture changed very little. Bow- OVOP. Mr. speaker, I would llh to make a few observations. Governments all over diis coun- try during the past twenty-flvs lightened concept of human needs, been forced into the provision of more and more services for the use of their people. We In Prinsa Inward Island have baaa as as- filed. A striking example is our-Isalth Wdf whm iftlrs have. slowly but surely in video I: Eat voted Agriculture the adtq of the Gevarantsat is to put at the dis- pasal of our farmers and rural people, generally, the faculties aad the services which will asa- ble than to carry on their lashin- trini work efficiently and with a reasonable remuneration. It is de- signed to assist our farmers in- spaed the flow of production, to secure new outlets for the of their agricultural harvest. To, give this service and asslatnncel the Department of Agriculture forecasts an expenditure of 8552.- 210. for the fiscal year some 850.000 over and above the amount appropriated. HIGHWAYS IXPENDITUIIE It will be noted from the Inter- im Statement of Revenue and Ex- penditures that, with the excep- FOBECAST OF DE retirement for the fiscal year From the above we deduct the the same period for Debt Retirement or an increase in liabilities for the present fiscal year of 81,793,825, of which sum 836.610. represents the net amount of loans and ad- vances made during the year. Al- though theac loans temprnrily in- crease the debt for the year. nev- ertheless they are recoverable at a later date. DEBENTURE ACCOUNT The high rating which this prov- incs continues to enjoy in the fi- nancial mnrket is evidenced by the fact that despite a vacillating market we recently sold 82,500,- 000. 5 per cent - 17 year callable debentures at a cost of 5.17 per cent, which compares favourably with similar issues sold by the Provinces of Nova Scotla, New Brunswick and Ontario Hydro-EL ectric Guaranteed. . During the current fiscal year we redeemed two issues which nia- tured on August 1st and Decem- ber 15th for 81.250.000.00 and 81,- 000.000.00 respectively. The Sink- ing Fund accumulation for the two Issues totalled 8623.375. The bal- ance remaining 81,426,625, will be refunded under authority of an Act passed in this legislature last ','- amounting to 81,- M" h c . 1057-68 BUDGET We now come to the budget for the forthcoming fiscal year. Be- fore proceeding with the Estimat- es of Revenue and Expenditures I should like to comment on the general situation as it affects the provincial budget. The prescntntion of a budget involving, as it does, an expendi- ture of over 80 million on Cur- rent Account and providing for Capital and other Extraordinary Expenditures of an additional 6'1: million for a Province the sins of ours. with a population of only 100,000 people. carries with it a tremendous responsibility. I per- sonally think it is a very gener- ous grant of supply. The prepatlon of such a budget was the ca 0 of much concern. Even ten years ago, for the year ended list of March, 1947, the Treasurer then only had to deal with an Ordinary Expenditure of 83.000000, a total expenditure of less than 85 million and a public debt to be serviced of only a little over 10Va million dollars. Today, the debt is double; current oper- ations almost 2Va times what they were in 1046-47 and the provision for items of a capital and develop- ment nature increased over five times as much again. TREMENDOU8 EXPANSION That is but an indication of the problem we have to face today in the realm of public finance and the tremendous pension of gov- ernmentnl functions taking place all over Canada. with the ever growing demands for increased public services. The Government has endeavour- ed to maintain a sensible and equit- able balance. not only between re- venues and expenditures but he- twesn social service necessary for the welfare of our people today, and capital expenditures essential to the continued progress and de- velopment of our Province as a whole. As intimated in my Budget Speech of a year ago. the Govern- ment's position is clear and defin- ite. With due regard. at all times, for the welfare of the people as a whole. we propose to expand the annual budgetary provisions pro- gressively and in keeping with the economic development of the Pro- . But, our people must be ury. D APPROPRIATIONS In our 5 7, proposals. you will increased appropriations to Illltt transportation means to the the distributor and to generally . You will the increased appropriations teayswsvowdsndormsir turiiiiia out a better product, ial And finally 8 and storm in January of last year, 1he;Api'tl 1. ulelslaot and rain did much damage-19:8 On March 31. 1956 the lat debt of the Province was .. . To this we add the forecast expenditure Deduct from the above sub-total ithe amount provided And we have left a forecast net debt as of March 51. 1957 of .822,054.8.'i4 pnatssas. lawyer. is Capit As-. ieount. way Construction law ciudtng da ifighuayp rand Bridps. required an addi- itioaal appropriation of ll" of which will be fully explain- ied by the Minister of Highways in ,bis review of the 1066 activities of his department. due to the serious 1 I to our rural electrification instal- lations. However, with good work-. lmanship from line crews the dam- lage was repaired with marked 1956-57, lrapidity. and our 1056 program of current rural electrification continued to advance towards it ultimate goal. It is forecast that the expenditure lfor 195037 will be in the vlclnityi lof 8450.000. i In my analysis of the financial statements under review I turn March 31, 1957 - BT MARCH 01, 1057 820,261,011 0 including debt 1956-57 . ......a-...... l3,471,W 8aa.7a2.tm' 11,115.93! 822,615,064 anticipated revenue for 560.250 is no denying that pressures on our revenues are de. ' ,' 0ur' revenues have now reached its peak level, and future gains. if any, will be moderate. The time is here when further increases in expenditure cannot be accommo- dated within the dimensions of our present revenue. We are, there- fore, obliged either to halt expen- dlture increases or obtain new sources of lrevenue. Our present requirements are very large and perhaps it would be better to con- centrate on essential: and leave to the future the things that we would like to do but cannot for the time being afford. That deci- sion must be made now for if we want to go ahead all of us must be willing to contribute financial- ly to the cost. Unfortunately for us, the newi Federal-Provincial Tax-Sharing i Arrangements does not favour thisl Province and our 1957-56 tax and general subsidy remains at the same level as it was for the cur- rent fiscal year. i If a more realistic attitude on the part of the Federal Govern- ment towards this Provincc, in re- lation to our fiscal needs. had been considered and a better financial arrangement approved. then we could have been in a better finan- cial position to continue our ef- forts. GASOLINE TAX I am almost certain that it has been evident to nearly everyone that we could not continue to fi- nance our enormously increased expenditure for highways without some upward boost in the gasoline tax. In preparing the revenue part of the budget it became immed- iately apparent that in tho finan- cing of our road program, and the financing of the increased ex- penditure of other government de- partments, the Provincial Treas- ury would requlra revenues consi- derably in excess of those of any previous year. Even allowing for, increases in yields from the pres-I ent tax rates and from the olher' source of revenues, our revenue forecast indicates an additional Q million dollars required to meet all expenditures including the full road program. To attempt the raise gasoline tax revenues by the amount required to meet the en- tire l957-58 highway expenditure would involve the imposition of an unreasonably high tax and would indeed be likely to thwart the very purpose of the increased levy. In the light of all circum- stances. however, it does seem rea- sonable to increase our gasoline tax rate slightly. INCREASE ANNOUNCED Grave an the decision is to in- troduce new taxation or propose increases in exisiting taxes, the Government has accepted its re- sponsibility. We propose to raise the tax on gasoline three cents per gallon. This will ring the tax up to sixteen cents per gallon which will still be lower than thet rate in Nova Scotia and equal not that now in force in Ngw Brung- wicln We also propose to rebate- one cent of the increased tax to farmers and fishermen in accord- nnce with the provisions of the Act. Another change in our tax sys- tem is proposed. and I refer to the changeover in the method of collection and remluton of thc tax on the sale of tgucco, prev. iously. the tax was collected and turned in to the Treasury by re-j tailers. By the new method, the, tax is to be remitted by the whole- saler. Previous misgiviaga in re. gsrd to the former method of re-. mliilnif will be corrected. Every-i one will be better satisfied: the the province will ha ,7 . a ti. nubile will have no I?.lsflclt1ifin :1 lettvs-and sf&.4D.aothatthefararai aIa1nouethvl5Q results of next year's operatin will he an increase in Debt J 81.615046, It is anticipated. there the net debt of the Province as I March 81. 1036 will he as follows: Forecast nel debt March 31. 1937 Adv Estimatcd increase from 1937 to March 31. For a total of For the forthcoming fiscal year I am budgeting for a revenue 41 account of 8l0.l96.571.. or for an increase of 8601.320. over that estimated for the present cur- rent year. The proposed estimated ordin- ary expenditures for the coming year tnal 89.i.'i2.4l7, which, when compared with the estimates for tion of snow-removal for the cur-inow to the forecast debt position the current year's total of 88.504,- rant year. the Department of High-'of the Province as anticipated at 333. shnw In increase of 8548.084. After providing for debt retire- ment of 8669.400. the anticipated surplus on current account is es- timated at 81,064,154. We have budgeted on the basis that the reasonably optimistic out-, look forecast by business and gov- ernment leaders for the calendar year 1957 will he fully realized. ORDINARY REVENUE The lmponderable factors in es- llfIIBt1IlE the yield from pari-mut- puel betting. the tax on gasoline consumption the amount of llquorimd me mien” 54.740377. from” V in vo Health or hospital Insur- in be sold in the coming year, the number and use of motor vehi- rlct, the attendance at amuse- ments, and the many other sourc- COMPARATIVE STATEMENT OF REVENUE ESTIMATES 1955-56 1956-57 1957-58 Federal Government Actual Forecast Estimates Statutory Subsidies . . . . . . . . ..8 647,182 8 047,182 8 647.182 Tax Rental Agreement . . . , . . .. 3.600.752 4.214.370 Tax-Sharing Arrangement 4,165,000 84,327,944 84,061,552 84,812,182 Disabled PPl'SOn5' Allowance . 456.902 65.968 62,500 Blind Pensions . 32.279 31,310 311,750 Old Age Assistance . 99.720 99.129 105,000 Health Grants 234,505 297.1131 314.3412 Limestone ........... 37.564 36.500 39,000 Other Subventions 50,778 67.675 88,900 Total from Federal Government 84,839,692 85,479,960 85,455,694 Under the new Federal-Provlm rial Tax-Sharing Arrangements Act the Province will receive 84.- 165000. iplus our subsidies grants) under the provision included in the Act that no province should re- celve less than it would have re- ceived had the present tax-rental 1955-56 1856-57 1957-56 Provincial Source Actual Forecast Estimates Income Tax-Electricity . . , . .. 8 52,061 8 50,000 3 50,000 Insurance Premiums Tax 75.000 Gasoline Tax . . . . . . . . . 1,726,865 1,775,000 2,025,000 Amusement Tax , 113,135 93,000 95,009 Succession Dulie , 250 ' Liquor Tax . 276,550 275.000 270.000 Tobacco Tax . .. . 156.1110 160,000 175,000 Motor Vehicle Licenses .. ... . 550,000 525,000 Corporation Licenses ...... 65.466 57,100 35,775 Other Licenses. Permits and Fees . 205,404 151,139 2.15.525 Temperance Act 010,129 010,000 000,000 Fines and Penalties .. 55,114 40,000 35.0w Other Revenues and Refunds .. 200,564 810,478 510,571 Total from Provincial Sources 84.22197! 84,454,717 84,740,677 Total Ordinary Revenue .... ..ss,os2,cso 89.9s4.m s1o,1ss,s71 From provincial taxation it is estimated that. at least, 84.740.- mt 1177. will be collected from provin- cial source. with a remote possi- bility of reachinl 84.900000. but that will all depend. as I have said before. on weather variations, human interests, tastes and appet- Current IMI-50 1952.53 Year Sour-cg Actual Actual Forecast Gasoline Tax ..-................8l,06.'i.600 81.401-Ill I1.775.000 Amusement Tax ......... 96,017 124,174 00. Liquor Tax ' ....... 195.53 273.675 275.430 Tobacco Tax 124.575 150.534 150-090 Motor Vehicle Licenses ...... 270.092 432.926 550.000 Temperance Act . . . . . . . . . 676.505 917.931 910.000 'Therefore. in estimating future revenues, while actual normal or inflated special returns from in- dividual sources must be consid- ered, we have endeavoured to pro- ject them on a logically reason- able minimu basis, and having done so, we conclude that we may saiciy anticipate receiving the a- mount so estimated. RI-IYENUE CHANGES A: can be seen from the printed I-Zstiiiiatcs, the major revenue changes ftir the coming year, an compared with the forecast for the current year, is as follows: Revenue from the federal gov- ernment under the new tax shar- ing arrangements and subsidies legislation 84.ii12.i82. A drop of snin(' 3.30.000. being the adjust- mom made in the current year for 1935-36 recalculation of the tax rental payment. . Grants from the Federal Gov- ernment in connection with health sci-i-ices. etc. are estimated at f-"ll-1,362: subventions for Old Age Assistance. Blind Penlonn, Dia- sbleti Persons Allowances. Ling. stone, Vocational Schools, spending certain agreed a n-1011 in order to qualify for the fakm Function Public Debt - service Char; griculture """ Industry. Natural lsasarom Fisheries I Gasoline Tax revenues are n- 5,, pected to yield. It least. Q3, sssssOOmlIIODOII- - M W137 W IiIO00OO:Dsa. W tea hm etien sav tvoveeaes osmn indie calculations, atsda twelve months In advance. liable to var- tauos l I budget forecasts of revenue estimates are based in part M iii- ture conditions which detY lfl-Tl"! ate prediction. one example 0i the expenditures and revenues deg lpendenl on weather conditions items in the estimates of expend-I you this session apply. input, to winter conditions in the coming; fiscal year, with no dependable; means of anticipating actual snow-, fall and temperature conditions next winter. 1 In the estimates of revenue we: have attempted to be realistic, within the bounds of prudence. Af-i ter careful study of all relevant, financial indices, and of our own? experience, we are convinced tiiati the estimates of revenue for the, next fiscal year cannot safely be set at a figure in excess of 810.2 million for Current Account. In fact. this amount precludes any margin of safety in the event that our national or provincial econo- -my should suffer as a result of adverse factors of a substantial extent. The Estimates for 1957-56 show a total Revenue on Ordinary Ac- ,count of 810,196,571; 85,455,694. ;from the Federal Government, 1 1 Provlncclal Sources. For. comparative purposes It have summarized these Rt-venues ;lor the past. present, and forth- I ' fiscal years: agreements been extended for the next five years. The result of this new position is that Prince Ed- ward Island will receive a stabiliz- ation payment on the basis of the federal calculations to bring its allotment up to the level of its present -llnn Tha wids differences in revenues from these provincial sources and they are the main items of pro- vincial revenues. is clearly indica- ted by the following comparative tabla. 000. It is estimated that the in- crease in tax will produce 8300.- 000. additional revenue. which a- mount is calculated in the above total for 1957-56. Revenues from Motor Vehicle registrations will produce. at least. ftTz5.000. and again. may reach 3.350.000. depending upon 10- cal economic conditions. Q ltidaddabt lag the year under the &dHO hare, can one should bear is mind that these at annual appropriation fr 3 ture issues at maturity. The continued growth in the De partment of Health has about this difficulty is to be found in I-"dug it. nag cosaapathls with our present financial resources. The Minister of Health is roqusww 1,s1s.o4n many months ahead. Two large in this year 81,446.83 on cur- rent account, or some 843.1”. sza,u9,3,;itura and reveue placed heforel mo... mu, 5. fofgc.” for 1&- 57. Except for the additional funds necessary to meet the rising cost of materials and supplies the pro posed at-quirements for the forth- coming year vary little from the appropriations approved last ses- sion. I might add here that health services under the iederal-prov1nc- ial health program are null! 0"- set by reimbursements from the federal government. It is estimat- ed that nearly a Va million dollars vril be forthcoming from Ottawa under the health grants includ- ing hospital construction. These contributions appear in the rev- enue section of the Estimates. HEALTH INSURANCE g I have stated that the Ministers would give complete reports on their departments. However. 1 should like to say a few words here on a subject of foremost in- rest to everyone in Canada. 1 ave been asked at different es . when are we going to a pen its possibilities. Health insurance itself is not just what the words imply. There are many kinds of health insur- ance and the one proposed by the Federal Government has man? sections and many angles. In or- der to participate. a provincial government must agree to put in- to effect at least two of the sec- tions as announced by the Minis- ter of National Health and Wel- fare. namely, hospital and dill- nosttc services. In hospitalization the Federal Government will IIIIIO only in the actual cost of main- taining the patient at ward rates together with the actual cost of laboratory and X-ray services. In Saskatchewan the 1790010 N'- ceivo much more than this It the present time. This would mean patients would have to pay the difference In room rates Pill! In other expenses. Many of our 090- ple now have hospitalization and medical insurance and. while I am not against any program which will make life easier for our peo- pic. I cannot share the idea with some that we should lump into a program such as proposed the Department of National Health and Welfare until we are stirs our peopla are randy to pay the 0008 0155 which. conservatively nstlmatad. would be weu over one and one- quartcr million dollars annually. WELFARE AND LABOR In the Department of Welfare and Labour the issue appropria- tiona remain un - The Mil- later is requesting a total vote of sao2.ooo. - 8:10.000. for out Ase Assistance: 845.000 for the Blind; 8125.000 for Allowances to Din- ahled persona; 865.0!) for soclll assistance, mothars allowanc- es 885.000: 845.00) for EXIT!-MIII5 al T.B. Assistance: Maintenance of Neglected Children 835.o0o;Ind 8145.000 for tho oporation and maintenance of Beach Grove. The balance of the funds are rcquirsd for administration costs and sun- dry grants. Tho total reimburse- ment from the Government of Can- ada toward the first four mention- ed services will amount to 8141.- 500. EDUCATION - The current expenditures pro- posed for the Department of Edn- cation total 81.535.4il0. II l00W0l' 000 at 800,000 over the forecast for the present fiscal year. mainly for teachers' salaries. inspection 01 schools, and transportation and tuition of rural school children. In addition. to tho proposed expendi- ture of 81,535,490. the Minister is requesting 8125.000 for run! and senior tiiizii icnoois. m-Hus I grand total of 81,660,400. as the Government's contribution toward education. AGRICULTURE The Department of Agriculture requires for the new fiscal year a total of 8510.840. One new item appears. 810.000 for the Potato Pro- Thcre are, however, two reven- ues which we estimate will de-, crease in the coming year - the tax on amusements and the com-i bincd revenue from the tax on.i and the profit from, the sale of? liquor. p ! it should be noted that. with the exrpction of receipts from the sale of liquor and its correspond- ing tax. the increases in revenue from local sources are the direct result of the continued ex ansion of our highwnv program and the development of rennin services. Mr. Spcakor: with your permis- sion. I shall now deal with the Estimates of Expenditure for the forthlgominl fist-al YEli'-- L The Supply proposed to he grant- ed to Her Majesty involves ex- nditures on Current Account of ,l32.4l7. and 86,553,000. for it- ems of a capital nature. These a- Ilolantn totalling 815,665,417. we now submit for your considcn- n as follows: Increase or Decrease 1-) Over Forced Estimates Totals for 1887-Sl 1956-57 . .8l.&,lIl 8 ill!!! iti.42.s ioiuso 42.4051 n.o.s7 mm 7.441 was ....-.... HI 14117: sinus use use was - P The oposcd current expendi- motion Commitiee: Grants to En- hibitions are up 83.300: Veterin- ary Auiatnnce has been increas- ed by 83,000; and the vote for Ar- tificial Insemin iion raised to 823,- 000. The majority of other appro- priationa vary very little. Lime- stone continues to be honused N5,- 000 of which 830.000 is recovera- ble from the Federal twvornment. and 810.1110. is again uioposed for the operatlon of the Industrial Do veiopment Committee. On Capital Account the Minis- ter of Agriculture is recommend- lng a further 8200.000 for indus- trial Establishments Promotin vidal for the Industry, Resources. and Fisbsrles, for the programs. HIGHWAY PROGRAM 41379 and "t In ? now' that many of the p', as g e question have never I feel 330 000 that I have to say somct Ibolll Wail. March 27. ID! The Guardian PI& 11 tlnuad and a an d s.1'i:.'7u..'t'srooaastadtoriaaasess- poses. The vote of 5.000 for insurance on public udidlnnl sum as it did last ve-r. 330-000 '0 1" Mm mu, a special Reserve Fund iutesdod eventually to enable us to be our own insurers. The Fund as at the and of March 137 will be approximately 8110.000 ml We are all: Pl0P:":,3"'y:L ': 8300!). to I st)” the conitinuntion .0; our Rural I100- ro r . miim imntrw Eire:-t your attention to the Capital Section of the Inti- mates. The eatlmat year total 82.863.400- ("'9d9"1 . tribution toward the coat of Hos- pital Construction 8176.000: 80? Hjghwgy Projects. including Tran!- Canada Highway 52-537-400” Cgpltjl Expenditures, etc. and advances for fisheries and indul- trial promotion purposes recom- mended for the next fiscal year. are as follows: Highway Construction:- Gravel!- ed Roads: 000: Permanent Roads; 3875,0005 31.675300. Culverts; 840,000- Bridges: 8300.000 Federal-Provincial Highway Pro- 8100.000 jects; 83,224,011). New Machinery: Beach Grove Staff Accommoda- lions: 825.000. , Beach Grova Main Building; ed receipts for the cob Beach Grove Boiler House: 825. wl)"alconwood Hospital - Nurses Aida Building: 8140.000: NUT!" Quu-fgrg, 835.000; Female Division. 87.000; Mala Division. 88,000: Pl'9' sent Nurses' Home. 84.000: Mil. Attendants Quarters. 84.000: LIM- gcgpjng New Treatment Centre. 85.0(Xi;Lau;12d&y)6 55.000; Star-I Building, . . Paving Road Sanatorlum. 81.000. staff Quarters Occupations The- rapy - Sanatorium, 85.000. Court House - Surnmerside, 81,- Queens County Jail. 81.00). Provincial Building (Sprinkler. 815,000. Prince of Wales College. 83.000- Government Garage, Charlotte- town, 84.000: Summerside 85.000. Scale 1-louse - Borden, 55.000. Health Centre. 810.000. Industrial Establishments Pro- motion Loans. 8200.000- Asslatancs to Rural and Senior High Schools, 3125.000- Cbariottetown Driving Park and Provincial. Exhibition Association. 85.000. Land Purchase - Town Pinning. 81.000. Farm Improvement. 85.011! Fisheries Development. 82,000. General Hospitals Construction. .000. Subsidy - Gulf and Northern shipping Co. Ltd. 820,000. Rural.E1ect:rificat.lon. 8250.130. For a total Capital and Extra- ordinary Expcnditure: and Pro- motion and Development Loans of 86,558,000. offsetting this Capital Expendi- ture will be Capital Receipts, re- ferred to above, leaving a new Cap- ital disbursent for the com- ing year of 83,689,600. ' Those expenditures we deem to be no y for the proper main- tenance of the public services of the Province. In the coming days the House will be consider- ing all aspects of our planned ex- penditures and estimated revenues I trust that the conclusions of both the honourable members and the pie whom they represent will that the Government has. with the limited resources at its dispo- sal. chartered a course for the coming year that is prudently bal- anced between over-maintenance on the one hand, and extravagance on the other. NEED FOR CAUTION Altar dealing with the federal- provinclal tax-sharing agreements. reported elsewhere in todly's is- sue, Mr. MacDonald concluded: ''I have tried to place before the House and, through that ava- nue. to the people of Prince Ed- ward Island a clear picture of the financial affairs of this Province. You will have noticed that, in as doing. I have stressed from time to time the need for great caution in our financial undertakings in its many aspects. I have IP0k6ll '1": cerely and frankly because I never did believe in smoothinfl 0Vi'T "'1' anciari problems for political ad- vantage. I have tried to point out. by figures and words. the road we are travelling with reference to tho ever-mounting demands fnr newer and expanded services. We must ensure that they do not 1!?! out of hand. We can only expand as far as the iinancialtability of will warran. ou'l'.Tl'll):ol':'l:lfal'P of our basic indtiit- try. Agriculture. is of izrrat im' portance in that it provides dir- ter pro- "I have always ce Edward Island and 1 hr- iieve that. with all the forts and enthusiasm with which we In so abundant. W0 lire C8080" 09'' achieving a marked improve- h incomes ii! :1 ii; ti 1:3 E at it it it '-llliigii E