LEGISLATIVE ASSEMBLY OF
Wednesday, April 20, 1994
The House met at 1:30 p.m.
PRAYERS
Introduction of Guests
Mr. Speaker:
Prior to Oral Questions, may I direct the attention of honourable
members to the gallery where we have with us this afternoon from the Mennonite
Collegiate Institute eighteen Grade 9 students under the direction of Ms.
Crystal Martens.
This
school is located in the constituency of the honourable member for Emerson (Mr.
Penner).
On
behalf of all honourable members, I would like to welcome you here this
afternoon.
ROUTINE PROCEEDINGS
ORAL QUESTION PERIOD
Health Sciences Centre
Chief Executive Nurse
Mr. Dave Chomiak (Kildonan):
Mr. Speaker, I am sure the minister is aware that the proposed
restructuring of the Health Sciences Centre has caused a great deal of concern,
to say the least.
While
no one wants to micromanage the hospital from this Legislature, is the minister
not concerned that MARN, which is the professional and standards licensing body
of the nurses, has expressed concerns that at Health Sciences Centre, in terms
of the restructuring, a chief executive nurse ought to be maintained at Health
Sciences, a chief executive nurse should represent nurses at the board and
executive levels, nurses be involved in setting consistent patient nursing
practice guidelines, and nurses be part of an ongoing analysis of the program
and its impact on the quality of health care?
Can
the minister outline what the government's position is with respect to this
concern, as expressed by the licensing and standards body of nurses?
Hon. James McCrae (Minister of
Health): Mr. Speaker, over the years, the Health
Sciences Centre has provided very important and quality health care services to
Manitobans, and it is my full expectation that hospital and others in
That
will be done with the help and input from nursing professionals, doctors and
other health care providers and with full knowledge and awareness of the views
of health care consumers.
Mr. Chomiak:
Mr. Speaker, if the minister had received these types of concerns raised
by the College of Physicians and Surgeons, or if he had had these concerns
raised by the Law Society when he was Minister of Justice, would he have not
immediately at least expressed an intention to look into the matters on behalf
of the licensing and professional body?
Mr. McCrae:
Mr. Speaker, I am mindful of the concern raised by the Manitoba
Association of Registered Nurses, and I am sure the administration at Health Sciences
Centre and other hospitals are taking into account the views and concerns of
regulatory and professional organizations like the MARN in the making of their
plans for the future.
Mr. Chomiak:
Mr. Speaker, my final supplementary:
Will the minister at least assure this House that he will look into the
concerns raised by MARN, particularly those relating to standard of care, and
perhaps meet with them to discuss this issue?
Mr. McCrae:
Mr. Speaker, it has been my very great pleasure to meet on a frequent
basis with representatives of the Manitoba Association of Registered Nurses as
well as other regulatory and political organizations as we develop a
sustainable, quality health care system for all Manitobans for many, many
generations to come.
* (1335)
Job Relocation
Mr. Leonard Evans (Brandon East):
Mr. Speaker, this government has often boasted about its
decentralization program, and now we learn that
The
option of locating new equipment in
How
can the Minister of MTS justify the removal of jobs from
Hon. Glen Findlay (Minister
responsible for the administration of The
That
member, when over a hundred jobs were announced for
Manitoba
Telephone System has a mission of supplying quality service to Manitobans at
the lowest possible price, and they are doing that in the process of managing
their affairs, but that member spoke against over a hundred jobs being moved
into
Mr. Leonard Evans:
Mr. Speaker, I did not speak against the jobs, I spoke against the waste
of money and political advertising by this government and the fact that they gave
$600,000 when they are cutting back on home care.
Mr.
Speaker, my question to the minister:
Since he has confirmed that we are going to lose these jobs, I would ask
him: Would he really in his capacity as
minister review this situation and have the decision reversed to allow an
investment of new toll‑switching equipment in Brandon to ensure that it
will continue as it has over the years to be part of the long distance routing
process, and let us keep those 15 jobs in Brandon?
Mr. Findlay:
Mr. Speaker, I know that member would like to interfere in everything
the Crown corporations do.
This
government wants to allow the managers of those Crown corporations to operate
and manage responsibly, and they are.
That member will not agree with that, I know, as he did not agree to
putting over a hundred jobs in his own city in
I
will not interfere with MTS trying to deliver the best quality service to its
users in
Mr. Leonard Evans:
Mr. Speaker, let us not hear any more about the sanctimonious
decentralization policies of this government.
Can
the minister tell us how many other jobs will be lost in the near future
through the termination of other programs such as FRED, which is the emergency
dispatch program? The local staff fear
that another 25 jobs, with a payroll of $839,000, will be lost within the next
year because of continued cutbacks at MTS in
Mr. Findlay:
Mr. Speaker, if he wants to go into that kind of detail with the
management, we will have a review of the annual report of Manitoba Telephone
System in due course, and I ask him to raise all those questions at that time.
Kali Shiva Society
Funding
Ms. Norma McCormick (Osborne):
Mr. Speaker, my question is to the Minister of Health.
On
February 28, 1994, I wrote to this minister with respect to a funding request
to his department to secure the future of the Kali Shiva Society. Kali Shiva is an important community
resource, providing home care and support to people who are dying with AIDS.
This
remarkable group of 80 volunteers, acting as part of a care team, are now
providing care to 16 people. The budget
of Kali Shiva is $72,000, extremely modest considering they have provided
support for half the people who have died of AIDS in this province.
Mr.
Speaker, the request of this organization is for $20,000. As of last evening, when this volunteer board
met‑‑
Mr. Speaker:
Question, please.
Ms. McCormick:
Mr. Speaker, will the minister please advise when he will respond to
Kali Shiva?
* (1340)
Hon. James McCrae (Minister of
Health): Mr. Speaker, I met some time ago with the
Kali Shiva Society and commended them for the work they do, extremely
compassionate work they do, and very much of it volunteer.
They
have asked the government for assistance, as have so many other organizations
that just want to be of help and assistance.
We want to be of help and assistance in every way that we can too,
always recognizing the fiscal problems that we have and other governments have
right across the country.
Even
though I am not able to give a positive response to Kali Shiva's request at
this time, I am very interested in continuing to see what they can do for their
clients and the alleviation of suffering that they can bring, and there may be
some other way in the future that the government might be able to help, Mr.
Speaker.
Ms. McCormick:
To the same minister, Mr. Speaker, Kali Shiva is having a hard time
continuing in the face of such indecision.
Will
the minister advise this House: What are
the specifics and time lines of the consultation, and will the minister
expedite the consultation to ensure that Kali Shiva, who want to participate,
will in fact still be around to do so?
Mr. McCrae:
Mr. Speaker, I do not think it is a question of indecision. I think in my first answer perhaps I was not
as clear as I should be.
At
this time, I do not see that we are able to assist Kali Shiva with a financial
grant, but we will be interested to continue to see how Kali Shiva performs in
helping its clients. Perhaps at some
point in the future, we can address the matter again.
Ms. McCormick:
Mr. Speaker, would the minister support an arrangement similar to the
deal made between
Mr. McCrae:
Mr. Speaker, without knowing all the details of the honourable member's
proposal, I would be interested in sitting down with her and discussing it.
Royal Bank of
Mr. George Hickes (Point Douglas):
Mr. Speaker, I have recently learned that the Royal Bank located at
Banking
services have been available in this community for many, many years, and many
of these long‑standing customers of this branch are seniors and have
limited access to transportation.
Mr.
Speaker, will the Minister responsible for Seniors speak out for these long‑standing
customers and arrange to meet with representatives of the Royal Bank to see if
there is a way to keep this branch operating at its present
Hon. Gerald Ducharme (Minister
responsible for Seniors): Mr. Speaker, we know how
important it is to have banking throughout the neighbourhoods. However, if the member across the way‑‑it
is the first I have heard about it‑‑would like to send me the
correspondence in regard to this bank, I will look into the matter.
Mr. Hickes:
Mr. Speaker, I think it is about time that the Minister for Seniors
stood up on behalf of seniors in
If
the minister is able to arrange this meeting with the bank, which he should,
will he make sure that the rest of the community, the aboriginals, the seniors,
the‑‑[interjection]
Mr. Speaker:
Order, please. The honourable
member for Point Douglas, to finish with his question.
Mr. Hickes:
Mr. Speaker, if the minister is able to arrange a meeting, will he
ensure that the aboriginal community, the seniors, the community
representatives are invited to that meeting to express their concerns?
Mr. Ducharme:
First of all, Mr. Speaker, I would suggest to the member across the way
that usually the banks in those types of jurisdictions are involving his
federal people that he knows, and maybe he knows who the M.P. is in that
area. I am not aware of who the M.P. is.
I
must say that this Seniors Directorate that we have, unlike the previous administration
when it was established in '88, was to stand up for seniors, and we have done
that throughout the
Mr. Hickes:
Because there are so many other services that are being moved out of the
inner city, will the minister ensure that when he is at the meeting with the
branches to inquire if there are further closures of more banks in the Point
Douglas area?
Mr. Ducharme:
Mr. Speaker, the member from across the way seems to want to blame banks
for everything. He fails to realize, if
you look through his notes, for the seniors the banks were very, very
accommodating when we were going through the seniors financial abuse system in
providing help with the video and help with dealing with seniors across
I
suggest he go back and start reading some of the information that we have been
putting forward. I will provide him even
with a video, showing the financial problems, that was contributed to and
helped by the banks across
* (1345)
Northern Airports
Emergency Response Services
Hon. Gary Filmon (Premier):
Mr. Speaker, I believe it was Friday last that the member for
Rupertsland (Mr. Robinson) asked a couple of questions of me which I took as
notice and I am happy to respond to today.
The
member asked if I would contact the federal government to request that the
emergency response services at the Churchill airport not be discontinued as
planned in light of the increase in activity occurring at the airport due to
the reactivation of the rocket range and other pending initiatives in
Churchill.
Apparently,
Mr. Speaker, upon investigation, the question of the member for Rupertsland on
this subject is based upon an unfounded rumour.
We are advised by Transport
There
has been discussion in the past as to whether or not the three‑minute
response time standard applicable to all federal airport ERS is appropriate for
more remote low‑volume airports.
However, there are no plans to change the standard for northern airports
being considered at this time. If and when
the plans to reduce ERS at northern airports are to be considered, the
The
second question that I took as notice, Mr. Speaker, was to request that the
Minister of Highways and Transportation (Mr. Findlay) put on hold any planned
reductions to northern airports in
The
1994‑95 budget includes staffing reductions at five airports that include
The
emergency response services training program will also not be affected and will
continue to exceed Transport
Social Program Reductions
Minister's Position
Mr. Conrad Santos (Broadway):
Mr. Speaker, my question is directed to the honourable Minister
responsible for Seniors.
There
is a well‑known saying in our society and most other societies: To be silent means to consent. When this government cut basic social
programs in this province, like health care, home care and Pharmacare, the
honourable Minister responsible for Seniors has kept himself silent, making a
public perception that he is consenting to all these cuts adversely affecting
our senior citizens.
Can
the honourable minister explain why he has been so silent when there was a cut
in the Handi‑Transit which adversely affected our handicapped and
disabled senior citizens?
* (1350)
Hon. Gerald Ducharme (Minister
responsible for Seniors): Mr. Speaker, I do not respect
the questions given to me by my friend across the way.
The
Seniors Directorate has not been silent.
The Seniors Directorate, through the process, day in and day out, is
answering seniors' questions every day, dealing with the individual ministers
along the way. We have just set up a
committee to look into personal care homes.
We have set up a committee and we have worked with senior abuse and
elderly abuse across the province.
In
regard to the Handi‑Transit, Mr. Speaker, the Minister of Urban Affairs
(Mrs. McIntosh) has on and on explained that we have increased the Urban
Affairs grant by $4 million in this particular year and that they could use
that $4 million to handle the shortfall that they have in Handi‑Transit.
Council on Aging
Responsibility
Mr. Conrad Santos (Broadway):
My supplementary question then, Mr. Speaker, is: Can the honourable Minister responsible for
Seniors explain why an organizational unit called the Council on Aging, which
presently is with the Department of Health, is being transferred to the Seniors
Directorate?
Can
there be another reason other than some pre‑election ploy that the
Seniors Directorate is doing something for the seniors?
Hon. Gerald Ducharme (Minister
responsible for Seniors): Mr. Speaker, I am surprised the
member would even have to ask that.
The
Council on Aging has always come under the platform of the Department of
Health, years and years ago. They not
only just handle health, they handle transportation, they handle everything
that is dealing with seniors‑‑pension plans, et cetera. It was the idea of the Seniors minister to
have them come over so that we can have a better gauge on working with the
different departments so that they continue to work throughout
It
was the idea to enhance that particular Council on Aging board so that they
have that message.
Mr. Santos:
My final supplementary, Mr. Speaker, is:
How much will this transfer cost and what good will it do? What change will it make for those functions that
were already being performed by the Council on Aging?
Mr. Ducharme:
Mr. Speaker, the cost is absolutely no more than it was the year before.
The
idea is to bring the Council on Aging under the umbrella of the Seniors
minister. Day in and day out, they ask
you to contact different ministers on what is going on in the Seniors
Directorate. Now the Council on Aging
will answer directly to the Minister responsible for Seniors.
CN Rail
Safety Issues‑‑Northern Manitoba
Mr. Steve Ashton (Thompson):
Mr. Speaker, transportation is very important to northern Manitoba, and
currently northerners are anxiously awaiting developments in three areas where
the federal government is either looking directly at cuts or has currently
implemented cuts.
I
would like to ask the Minister of Highways and Transportation what the
provincial position is in regard to these very serious cuts.
First
of all, I would like to ask the Minister of Highways and Transportation if he
has met with CN officials‑‑I believe he recently had the
opportunity to do so‑‑and, if so, if he has raised the concern of
the province over the major cuts that have taken place in terms of section
crews in northern Manitoba. Many
communities have had the entire section crews eliminated, Mr. Speaker, and
there are very serious concerns about safety.
What
action has the minister taken to raise this concern with CN?
Hon. Glen Findlay (Minister of
Highways and Transportation): Mr. Speaker, yes, I
have met with CN and raised the issue, and I am pleased to report that CN has
given a commitment to me to maintain that line to Churchill, a very strong
commitment, stronger than I have heard in the past.
They
said that whatever decisions they will make will not affect service on that
line or safety on the line.
Mr. Ashton:
Mr. Speaker, I am surprised the minister would accept that, and I know
that is the line that Paul Tellier has been pushing. I recently received a letter.
I
would like to ask the minister if he is satisfied that eliminating section crews
in Thicket Portage, Pikwitonei, Ilford and many stops along the line will
maintain safety when safety is already a concern.
There
was recently a derailment, two years ago, and one of the factors there was lack
of existing maintenance.
How
can the minister be satisfied with these empty promises from CN?
Mr. Findlay:
Mr. Speaker, I am sorry, but Mr. Tellier and CN are a very respected
Crown corporation in this country. If
they make a statement that they are going to respect safety and maintain the
service, I have to accept that.
I
can assure you, our department will be very cognizant and watching very
carefully to be sure that the commitment they have made in terms of maintaining
service and maintaining safety on that line is lived up to.
Mr. Ashton:
Mr. Speaker, I would suggest the minister not accept those empty
promises.
Thompson Airport
Control Tower Closure
Mr. Steve Ashton (Thompson):
I have a final question. It also
relates to the same area in terms of transportation and safety, and it is in
regard to the potential closure of the control tower in Thompson. The Department of Transport is currently
reviewing that. There was a meeting held
February 14. Many people are very
concerned, many users, many people in the community, about this closure.
I
would like to ask the minister if he has ever been with Transport Canada to
raise the concern many have expressed about the potential impact on safety of
this closure.
Hon. Glen Findlay (Minister of
Highways and Transportation): Mr. Speaker, there
are many airports in the North, some of which are maintained by the department,
some by Transport Canada, and the issue of safety is very prevalent for all of
us.
I
can assure the member, we have talked to them, we will continue to talk to
them, and the issue of safety of the operation of that airport will be first
and foremost in our minds.
* (1355)
Greenway School
Replacement
Mr. Paul Edwards (Leader of the
Second Opposition): Mr. Speaker, my question is for the Minister
of Education.
Greenway
School is a school located in the west end of Winnipeg, my constituency. For a number of years, all interested parties
have recognized that that school needed either to be replaced or renovated. Approximately three years ago the parents'
council at that school was advised by the Public Schools Finance Board that in
fact they were No. 1 on the list for renovation or replacement. This particular debate has been going on for
about, as I say, seven years.
I
wonder if the Minister of Education can report or, if he does not have the
materials here today, agree to report on the progress towards coming to a
resolution at the Public Schools Finance Board about whether or not the parents
in that area will get a new school for their children or a renovated school,
keeping in mind of course their preference, which is a replaced school.
Hon. Clayton Manness (Minister of
Education and Training): Mr. Speaker, from recollection
it seems to me that a decision is coming very quickly. Maybe there will finally be an end to this
discussion around this particular school.
I
am led to believe that the school board finally has decided which of the two
choices they would prefer to take with respect to either refurbishing the old
school plus a build‑on and/or building a whole new school.
I
think that the school division, Winnipeg No. 1, has now chosen, and I can tell
you that there are funds that have been set aside by the Public Schools Finance
Board, I believe, in the '92‑93 budget.
Whether they are sufficient or not at this point in time I do not know,
but certainly a significant amount of funding has been put aside for that
school.
Mr. Edwards:
Well, I am very pleased to hear that, Mr. Speaker. I know that there has been a lot of
difficulty in dealing with the Winnipeg School Division No. 1 board, which has
really sat on this for quite a long time.
Mr.
Speaker, my further question to the minister:
I am led to believe that in fact a comprehensive assessment has been
done by the Public Schools Finance Board.
Barbara McFarlane, Q.C., has indicated publicly that that is the case
and that it will be coming to completion in the very near future. Those are her words.
I
wonder if the Minister of Finance in fact has that comprehensive
assessment. If he does have it, is he
prepared to table it in the House so that the parents can also take a look at
it?
Mr. Manness:
Well, Mr. Speaker, I do not have that, and I do not know whether it has
been past practice to table all of the assessments that have been done on all
of the public school plants throughout the province, but I will take the
question under advisement.
Mr. Edwards:
Mr. Speaker, finally, for the minister on this issue: Will the minister, if in fact he finds that a
comprehensive assessment has been completed, which I believe it has, agree
today that whether or not that comprehensive assessment can be made public or
not that there will be a discussion with the parents of that area? They are not pleased with the school board's
response. It has been years and years of
putting this off.
Will
he make a commitment that the parents will be brought into this process? They have very clear views. They want a new school, and they want it as
soon as possible.
Mr. Manness: Mr. Speaker, I do not know what it is the
member is asking. The department is
always prepared, and at times I know ministers past and indeed myself, in the
short time that I have been in this position, have listened to community groups
come forward with respect to their requests, legitimate in most cases, as to
how they would like to see or why they would like to see a school built now
rather than in the future, but those final decisions are ultimately made, as
you know, by the Public Schools Finance Board, in fairness to the process.
If
the member is saying that he would like his constituents to have an opportunity
to make a presentation to me, in essence outside of the Winnipeg School
Division board, well, I am prepared to certainly listen to his constituents.
Department of Highways‑‑Selkirk
Job Relocations
Mr. Gregory Dewar (Selkirk):
Mr. Speaker, my questions are for the Minister of Highways (Mr.
Findlay).
Over
the past number of years, we on this side of the House have been raising
concerns about this government playing politics with public sector jobs in this
province. We have seen cabinet ministers
move jobs from one community to another to advance their own political fortunes‑‑the
Minister of Rural Development moving housing jobs from Swan River to Dauphin.
Our
concerns, once again, have been expressed that this government is considering
moving 25 Department of Highways jobs from Selkirk to Beausejour. The same minister, earlier in Question
Period, said he would not politically interfere with the transferring of
government jobs.
My
question is to the Minister of Highways.
Will he end the speculation and stand up in this Chamber today and
categorically state that he will not allow those jobs to leave our community?
Hon. Glen Findlay (Minister of
Highways and Transportation): The member wants to
interfere with the management of, not in this case a Crown corporation, but the
management of a department, Mr. Speaker.
Pretty well all of what he put on the record were ill‑founded
statements and allegations.
Mr.
Speaker, the department will manage the staff as they see fit to efficiently
deliver the services of road maintenance in the province of Manitoba.
Mr. Dewar:
Mr. Speaker, my question is to the First Minister (Mr. Filmon) then.
Will
he take some leadership and demand that these jobs remain in Selkirk?
* (1400)
Mr. Findlay:
Mr. Speaker, if there are questions about where staff are located‑‑we
have about 2,300 in the department‑‑we will discuss it in
Estimates. The budget will be tabled
this afternoon, and the Estimates will follow.
If that member wants to have the Highways Estimates first, he should
request to his House leader.
Transcona‑Springfield School Division
Parent‑Teacher Days
Ms. Marianne Cerilli (Radisson):
Mr. Speaker, I have written a letter to the Minister of Education
outlining some of the effects of the cuts on the classrooms in Transcona‑Springfield
School Division.
I
would like to ask the minister if he does not think that parent‑teacher
days that help parents and teachers develop a relationship to consistently work
with children are important in this province.
Will
he make sure that the lack of professional development days does not affect
parent‑teacher interview time so that this co‑operation and
partnership between parents and teachers will be maintained?
Hon. Clayton Manness (Minister of
Education and Training): Mr. Speaker, let me say,
certainly the government senses that professional development days are
important.
As
a matter of fact, the very same formula that the member for Dauphin (Mr.
Plohman) has been berating day after day when it was brought in by the member
for Roblin‑Russell (Mr. Derkach) had for the first time ever funding
factors that were related to professional development days. That is the seriousness with which this
government is taking that whole approach to development.
Mr.
Speaker, as you can recall, when the government brought in Bill 22, we asked,
basically, through that‑‑and I dare say because of the power of
this Legislature, 100,000 public sector employees were impacted, people who
more or less draw their remuneration from the public purse.
There
was one group in society, of course, who chose not to voluntarily be part of
that and, of course, we then gave the employers, the local school division, an
opportunity if they so chose to meet, to match their balance, to use the powers
under Bill 22 to make it fair for everybody who draws funding from the public
purse.
Safety Issues
Ms. Marianne Cerilli (Radisson):
Mr. Speaker, another area in the schools that is being affected is the
safety of children. There is a problem
with increased class sizes of chemistry laboratories, industrial arts programs,
exceeding the ratio of staff to teacher which makes it safe.
Can
the Minister of Education ensure that teacher and student safety is not being
jeopardized by the cuts by overcrowding in these kinds of classrooms?
Hon. Clayton Manness (Minister of
Education and Training): Mr. Speaker, as I stand here, I
am quite certain that safety is not being impacted but, if it were, I am sure
the Minister of Labour (Mr. Praznik) would know of it and, indeed, his
officials would take action with respect to that issue immediately.
Concordia Hospital
Emergency Ward Status
Mr. Harry Schellenberg (Rossmere):
Mr. Speaker, my question is to the Minister of Health (Mr. McCrae).
As
we all know, the Concordia Hospital was front and centre in the September by‑election. I received many phone calls not only over the
patient backup in the hallways but over the fear that the emergency ward would
be closed.
Could
the minister give the long‑range status of the emergency ward?
Hon. James McCrae (Minister of
Health): Mr. Speaker, in the discussions we had the
other day about emergency rooms in the city of Winnipeg, I neglected to mention
that the projected statistics for 1993‑94 show that overall emergency
activity in that year declined by over 13,000 visits from the previous
year. What we saw last weekend was a
very, very busy weekend. We acknowledge
that, but the fact is that our emergency rooms are, on the whole, facing less
pressure than they were previously.
With
respect to Concordia specifically, we can get together with the honourable
member to provide the information he is looking for or take the question as
notice and provide him with further information.
Mr. Schellenberg:
Are any additional services going to be added to the emergency ward?
Mr. McCrae:
I will be looking at the performance of the emergency services offered
in the city of Winnipeg with the assistance of the Emergency Services Task
Force that has done work on emergency services and, as decisions are made in
the future about that, I will make them known to the honourable member.
I
appreciate the approach the honourable member uses in asking his
questions. They are nice and short.
CT Scanning‑‑Outpatient Services
Mr. Harry Schellenberg (Rossmere):
The CAT scan was another issue of great concern to Rossmere
residents. During the by‑election,
promises were made to fully implement the use of a CAT scan. When will outpatient services be in full use?
Hon. James McCrae (Minister of
Health): Scanning services are available now, as I
understand it, to Concordia Hospital to their inpatients, people who are
admitted patients. Outpatients will be
dealt with as we look at the continuing evolution of CAT scanning services in
the city of Winnipeg. We now have all
the hospitals working together and the scanning committee also giving advice
about how best to handle scanning services so that patients receive the best
care we can possibly provide to them. I
will keep the honourable member informed as developments change.
Infrastructure Works Agreement
Recreational Complex‑‑Parkland Region
Mr. John Plohman (Dauphin):
Mr. Speaker, the infrastructure programs were‑‑the first
level of approvals took place a number of weeks ago. One of those projects that was not included
was a major project for the Parkland region including, as applied for by the
Town of Dauphin, the rural municipality as well as supported by a number of
other groups, 36 agencies and communities in the Parkland region, a major
recreation complex which would have shared funding by all three levels of
government and private sources.
I
want to ask the Minister of Rural Development, in light of the importance of
this project to the Parkland and in light of the fact that the Southport Pool
recreation program or proposal was approved, what the criteria are for
recreation projects under this program and whether the proposal that has been
made by the Parkland through the recreation complex meets those requirements.
Hon. Leonard Derkach (Minister of
Rural Development): Mr. Speaker, I am pleased to respond to the
question on the infrastructure program because, as is noted by many newspapers
across Manitoba, the infrastructure program is certainly having a very positive
impact on many of our communities throughout the province.
I
should point out, though, that the criteria the advisory committee is currently
working under are the criteria that were established when the agreement was
signed between the federal government and the provincial government so,
therefore, the advisory committee is working under that set of criteria, and
they are the ones who are recommending which projects should proceed.
Now,
during their examination of these projects, the advisory committee is certainly
asking communities for more information and more complete details on certain
projects, and it is not one where we have any input as ministers.
I
have received a copy of the proposal that was submitted by Dauphin. It is certainly one that is being supported
by the municipalities around Dauphin and the various agencies, but I would
suggest to the member for Dauphin that this is something that is being
considered by the advisory committee, and we will await their recommendation on
that project.
Mr. Plohman:
Well, Mr. Speaker, I hope that the minister will be supporting that
project.
* (1410)
Infrastructure Works Agreement
Northern Manitoba
Mr. John Plohman (Dauphin):
I also want to ask the Premier, in light of the decision that was made
by the Minister of Northern Affairs (Mr. Praznik) to refuse to provide
information on the Northern Affairs communities projects and put them forward
for consideration under the infrastructure program, which really, I can say,
let down those communities who desperately need this kind of employment and
projects, whether the Premier is assuring that Northern Association of
Community Councils communities such as Waterhen, Rock Ridge, Meadow Portage,
Camperville, Crane River, communities such as those will be considered in the
next round of approvals for the infrastructure program.
Hon. Gary Filmon (Premier):
Yes, I can assure the member for Dauphin that they will be considered,
Mr. Speaker.
Infrastructure Works Agreement
Flin Flon Water Treatment Plant
Mr. Jerry Storie (Flin Flon):
Mr. Speaker, I appreciate hearing that assurance from the First
Minister.
While
the First Minister is in the mood to answer questions, perhaps he will indicate
whether a proposal that was put forward by the City of Flin Flon for the
upgrade of the water treatment plant, which followed as a result of the 1991
Environmental Impact Assessment, which highlighted the fact that the primary
treatment which occurs in Flin Flon is not acceptable‑‑it does not
meet current standards‑‑will the First Minister (Mr. Filmon) and
the Minister of Rural Development (Mr. Derkach) be recommending that this major
project to improve the water quality in the Flin Flon area will be proceeding?
Because
of the necessity of this project proceeding environmentally and because The
Municipal Act prevents the City of Flin Flon currently from borrowing
additional money to finance the project independently, will special
consideration be given?
Will
this important city in our province get the support that it deserves?
Hon. Gary Filmon (Premier):
Mr. Speaker, the member knows full well that this government has done a
considerable amount to recognize all of the areas of Manitoba, particularly the
North.
Some
$55 million was put into the upgrade of the smelter in Flin Flon to ensure that
there was the continued employment of thousands of people and the opportunity to
strengthen the community. So we will
certainly be reviewing all of the various applications.
As
I have indicated before, the applications to the infrastructure program are
almost three times as great in dollar volume as the amount of money that is available
through the program, so priority choices have to be made, and certainly we will
be part of, along with our partners, the municipal government and its
representatives and the federal government and its representatives, the co‑operative
effort to try and ensure that we are as fair as possible in the decisions we
make.
Mr. Speaker:
Time for Oral Questions has expired.
Order,
please. The hour being 2:12, I am going
to be recessing the House till 2:30, but what I will do, at 2:29, I will ring
the bells for a minute. We will have one
minute's warning, and I will resume the Chair at 2:30. This will allow the gallery attendants an
opportunity to clear out the galleries, and only the guests with a specially
marked budget pass will be allowed to remain.
So
I am recessing the House now till 2:30.
The House recessed at 2:12 p.m.
After Recess
The House resumed at 2:30 p.m.
* (1430)
Hon. Eric Stefanson (Minister of
Finance): Mr. Speaker, I move, seconded by the Minister
of Environment (Mr. Cummings), that this House approve in general the budgetary
policy of the government.
Motion presented.
BUDGET ADDRESS
Hon. Eric Stefanson (Minister of
Finance): Mr. Speaker, I am honoured to present our government's
seventh budget to the Legislative Assembly and the people of Manitoba.
Founded
on the aspirations, energy and enthusiasm of Manitobans and their families,
this budget contains initiatives aimed at meeting today's challenges while
continuing to build a strong and secure future.
Manitobans
have a clearly defined set of goals and objectives for their lives and for
their children's future. They want
secure jobs. They want their children to
have an education that will enable them to be successful in a highly
competitive labour market. They want to
be confident that our health care system and social safety net will be
accessible and effective far into the future.
They want a balanced budget free from mounting deficits which threaten
vital human services. They want to be
able to walk on their streets and in their neighbourhoods in safety and without
fear.
These
goals were expressed many times in many different ways during the round of
public consultations undertaken before the final drafting of the budget. In Winnipeg, Brandon, and Thompson, in
Portage la Prairie, Altona and Russell, Manitobans from all walks of life
provided their perspectives on the challenges facing our province. But most importantly, they provided their
best advice on what can and should be done to meet those challenges.
It
was not surprising for me to learn that so many Manitobans have the same
concerns, have the same hopes and dreams, and want Manitoba to be even more
than it is today. I value and respect
their advice, and I thank them for it.
It is reflected in the measures taken in this budget, and we will be
strongly guided by it.
Mr.
Speaker, our economic future is bright.
Manitobans
have the entrepreneurial spirit, the work ethic, the skills, the infrastructure,
and the diversified economic base necessary for a thriving economy with
abundant jobs and investment opportunities.
Manitoba
is a good place to live, to work and to invest, and we want to keep it that
way.
We
must continue to develop the skills of our people through training and
education. We must maintain and improve
our infrastructure. We must take
advantage of new trading opportunities which arise from reductions in interprovincial
trade barriers, and internationally, under the Free Trade Agreement, the North
American Free Trade Agreement and the General Agreement on Tariffs and
Trade. Our businesses are seizing all
kinds of new opportunities, and that means new jobs for Manitobans and better
prospects for consumers‑‑greater variety and better prices.
The
introduction of free trade with the United States in 1989 represented both a
challenge and an opportunity to our businesses.
What
did they do in face of this challenge?
They rolled up their sleeves and set to work upgrading their processes
and their products. As government, we
helped by making our taxes more competitive and by providing assistance where
it was most needed, through measures such as the Manitoba research and
development tax credit and the Manitoba manufacturing investment tax credit.
Mr.
Speaker, the results are impressive.
In
the last five years, manufacturing investment in Manitoba averaged 53 percent
higher than in the preceding five years.
Private research and development has more than doubled under our
government. Since 1990, our exports to
the United States have grown by 40 percent.
In 1993, our rate of job creation was third best in Canada.
We
now have many dynamic sectors producing goods and services that are competitive
and increasingly successful in world markets.
Manitoba companies like Boeing, Bristol Aerospace, Carnation, Ford New
Holland/Versatile, Gemini Fashions, Kleysen Transport, Loewen Windows, McCain
Foods, Motor Coach Industries, Nygard International, Pollard Security Printing,
Reimer Express, Simplot and Western Glove are proof positive of our
competitiveness in world markets.
There
are many reasons for these successes.
More and more, as potential investors consider our province they are
attracted to Manitoba sites as locations for new and expanded operations. Fiscally responsible policies in Manitoba
have created a positive economic climate.
The obstacle of uncompetitive taxes has been removed, and business
investment decisions are now based on our Manitoba Advantage. I would draw honourable members' attention to
the special Manitoba Advantage budget paper enclosed with this address.
Strengthening Our Economic Foundations
Last
year Premier Filmon released the Framework for Economic Growth which laid out a
10‑point economic strategy emphasizing long‑term commitment to
fiscal management as the foundation of economic growth.
As
the Premier wrote in the forward to the Framework for Economic Growth,
"Economic growth is not the sole objective, but rather the means to
several more important goals. Manitoba's
ability to provide jobs, vital social services and a high quality of life can
only be sustained through the creation of new wealth and industry."
Mr.
Speaker, the 1994 Manitoba budget continues to make jobs and economic
development the top priority.
Agriculture
is a mainstay of the Manitoba economy and a major priority for our province.
In
addition to working with the farm community to combat unfair trade harassment,
our government has extended participation in the Gross Revenue Insurance
Program beyond its March 31, 1996, expiry date.
As
well, we are increasing our focus on agrifood processing and export
opportunities. For example, support for
the Crop Diversification Centre in Carberry and the Canola Council of Canada
based in Winnipeg will ensure that farmers and processors are helped to
diversify crop production and capture value‑added processing
opportunities.
Our
government's commitment to the promotion of economic development and expanded
services in rural Manitoba is strengthened with additional allocations from
lotteries for rural economic programs and the continuation of the successful
Grow Bonds Program. My colleague the
Minister of Rural Development (Mr. Derkach) will direct lotteries funding to
rural libraries to augment the funding provided by Culture, Heritage and
Citizenship.
* (1440)
Under
the direction of my colleague the Minister of Culture, Heritage and Citizenship
(Mr. Gilleshammer), the Community Places Program is being expanded to allow
$4.5 million in new projects that will improve facilities and create jobs
throughout the province.
In
1994‑95 the total provincial public sector capital program will top $1
billion as investments by Manitoba Hydro, Manitoba Telephone and other provincial
corporations and agencies will add $682 million to the $329 million provincial
capital budget. The investment will
create important jobs during the planning and construction phases, improve the
overall efficiency of our economy, and lead to more long‑term jobs for
Manitobans.
Later
this year the province, the federal government and the City of Winnipeg plan to
sign a new five‑year, $75 million Winnipeg development agreement. All three partners are committed to ensuring
that the focus of the new agreement will be on key economic and labour force
development priorities and on reinforcing, on a city‑wide basis,
Winnipeg's vital role in the provincial economy. The Minister of Urban Affairs (Mrs. McIntosh)
will be joining her colleagues soon for an announcement on the start of public
consultations on the design of a new agreement.
The
Department of Industry, Trade and Tourism will continue its extensive work with
many companies both in strategic sectors and traditional industries to
facilitate new investment, expansion and job creation. We have seen a dramatic increase in
opportunities for Manitoba, and these opportunities are being converted into
thousands of new jobs and hundreds of millions of dollars in new investment.
Understanding
that small business provides the vast majority of new jobs in the province, our
government has worked hard to lever opportunities and provide economic
stimulus. The Business Start program
launched in 1990 is a case in point.
This initiative has helped over 300 entrepreneurs start new businesses
and create 940 new jobs. Approximately
40 percent of the new businesses are owned and operated by women, and 27
percent are in rural areas. The Business
Start program has been so successful that we are extending it for a further two
years. With $1 million in loan
guarantees, it is expected that 110 businesses will be started and 300 more
jobs will be created each year.
My
colleague the Minister of Industry, Trade and Tourism (Mr. Downey) will pursue
an innovative, five‑year pilot program to provide expansion capital for
existing small businesses in the service and manufacturing sectors. The small business expansion fund would
involve a partnership of financial institutions, entrepreneurs and the
provincial government.
Long
before the current federal government was elected, Manitoba was lobbying for a
national infrastructure program that would create jobs and spark economic
development. This is why we were among
the first provinces to enter into an Infrastructure Works Agreement after the
new federal government announced its commitment.
The
agreement provides for $205 million in investment in a regionally diversified
set of projects throughout the province over the next two years. In co‑operation with the federal and
municipal governments, we are also striking a balance between longer‑term
strategic initiatives and traditional infrastructure thrusts, maximizing long‑term
benefits for our province.
I
am particularly pleased to note that Manitoba was the first province to have a
large block of projects approved. Work
will start in the near future.
Initial
project approvals will generate more than 2,300 jobs during construction, and
the legacy of stronger economic infrastructure for the future.
Manitoba
is financing our $68 million participation through a special allocation from
lotteries funds. This ensures that
Manitoba's commitment is new money and will not raise the province's deficit or
reduce resources committed to programs.
The
substantial $33 million rural gasification project under the infrastructure
initiative will help communities outside Winnipeg gain access to economical
natural gas. This will reduce home
heating costs and, perhaps more importantly, provide a new magnet to attract
industry and new economic opportunities.
Fair and Competitive Taxes
Mr.
Speaker, we have worked hard since 1988 to turn a hostile tax regime into one
of the fairest and most competitive in the country.
None
of our major tax rates, the personal income tax, the corporation income tax,
nor the retail sales tax, has been increased since this government took
office. No other Canadian province can
boast of a freeze on major tax rates over the last six years.
Manitoba's
basic rate of personal income tax was actually reduced starting in 1989, and
targeted reductions for families with children were introduced at the same
time. Only two other provinces have
reduced their personal income tax rates since 1987.
Manitoba's
marginal rate of personal income tax is now the third lowest after having been
the highest in Canada in 1987. This is a
dramatic turnaround.
Manitoba's
retail sales tax rate is the lowest of any province which levies sales tax.
The
payroll tax burden has been reduced through increases in the exemption level
and a training tax credit introduced in 1991.
Fully 90 percent of all Manitoba businesses are now exempt from the
payroll tax.
Manitoba
families are major beneficiaries of these policies. Earlier this month, Statistics Canada
reported that family income after taxes in Manitoba recorded the strongest
growth in Canada for 1992. At 7.8
percent, Manitoba's growth was four times the national increase.
As
well, the Conference Board of Canada expects personal disposable income in 1994
to increase by $435 for every man, woman and child in Manitoba.
I
am confident that our improved tax competitiveness, in combination with falling
trade barriers and the fundamental strengths of the Manitoba economy, will
underpin a significant expansion of our economy and create more jobs for
Manitobans over the next decade.
Mr.
Speaker, I am pleased to announce that the longest‑running tax freeze in
Canada will continue. Again this year,
there will be no increase in major Manitoba tax rates. There will be:
No
increase in personal or corporation income taxes;
No
increase in the sales tax; and
No
increase in payroll or capital tax rates.
We
will continue to take whatever actions are required to ensure Manitoba's taxes
remain competitive.
Targeted Incentives
Mr.
Speaker, in addition to continuing a tax freeze that is the envy of every
government in Canada, this budget also provides a series of targeted tax cuts
and various incentives. These measures are
aimed at helping people and encouraging business to create more jobs.
Housing
Over
the past six years our government has placed a high priority on supporting the
needs and aspirations of Manitoba families.
We are committed to continuing this priority emphasis throughout 1994,
the International Year of the Family. We
support utilization of registered retirement savings plan funds, sheltered from
provincial and federal income taxes, to assist first‑time homebuyers.
Mr.
Speaker, to further assist families and to create more jobs in the construction
industry, I am announcing a sales tax rebate program for all new homes
purchased by first‑time buyers between budget day and March 31,
1995. To focus the benefits of this
relief, the maximum rebate will be $2,500, which is sufficient to cover the
full sales tax on a typical $100,000 home.
We are confident this will help build further on the recent strength in
the housing sector.
In
addition, a special one‑year $10 million program will assist Manitobans to
renovate and upgrade their homes. Grant
assistance of $1,000 will be available for projects focused on structural
improvements to older homes currently valued up to $100,000. The program is intended to help Manitoba
families renovate their homes, give the renovation industry a timely boost and
enhance employment prospects for Manitobans.
As
a further measure of assistance to lower‑income homeowners, Manitoba home
renovation program grants will be extended to Residential Rehabilitation
Assistance Program projects where the net costs to homeowners exceed $5,000.
* (1450)
An
estimated 600 jobs will be created and maintained as a result of these
initiatives.
Transportation
Transportation
plays a vital role in our economy, both in bringing Manitoba products to
expanding markets throughout North America and elsewhere, and in bringing
competitively priced products to our markets.
We
will, therefore, bring the railway diesel fuel tax rate more in line with other
provinces with a phased reduction of 3.156 per litre.
As
well, Manitoba truckers will retain the benefits of the second‑lowest
diesel fuel tax rate among the provinces.
These
measures, along with the transportation component of the Infrastructure Works
Agreement, will strengthen our position as an international hub for road, rail
and air transportation.
Manufacturing
Manufacturing
companies have worked hard to modernize and become more innovative and
competitive, assisted by such measures as the Manitoba research and development
tax credit and the Manitoba manufacturing tax credit which is scheduled to
expire June 30, 1994.
Mr.
Speaker, to encourage continued growth and expansion of this vital sector, the
following measures will be undertaken:
The manufacturing investment tax
credit will be extended to June 30, 1995;
The sales tax exemption for direct
agents used in manufacturing will be broadened to assist smaller manufacturers;
and
Sales tax on electricity used in
mining and manufacturing will be phased out to further enhance the great
Manitoba Advantage of fully renewable and environmentally friendly
hydroelectric power. Our aim is to use
that great resource even more aggressively to create additional investment and
jobs for Manitobans, especially in mining and processing in the North, and in
manufacturing.
Small Business
Mr.
Speaker, earlier I referred to the high priority given to small business in
Manitoba. It is the true backbone of our
economy and consistently ranks as one of our most effective creators of jobs.
In
previous budgets, we acted to eliminate the payroll tax on jobs for small
business. Today, to further assist small
business expansion and job creation, we will take the following action:
The small business capital tax
exemption will be doubled to $2 million.
As a result, some 600 additional small businesses will no longer pay
this tax.
As well, the small business
corporation income tax rate will be cut from 10 percent to 9.5 percent for
1994, and to 9 percent in 1995.
Reducing Red Tape
Business
regulation is another crucial issue, especially for small businesses. Throughout the prebudget consultations, we
were told to address the problems and inefficiencies created by unnecessary
regulations.
We
are responding to this concern with the creation of the Advisory Panel on
Business Regulations. Along with
Manitoba businesses, we are waiting with interest for the panel's report in
June. We are committed to making
regulations "smarter," to help ensure Manitoba continues to have one
of the best economic climates in North America.
Mining
Our
vast and rich mineral deposits have always been among Manitoba's great
assets. In the past, mining activity has
been inhibited by an onerous tax structure.
In previous budgets we took steps to foster exploration in the province,
including the successful Manitoba Mineral Exploration Incentive Program. We have created a more hospitable regulatory
and taxation environment. My colleague
the Minister of Energy and Mines (Mr. Orchard) informs me that these initiatives
are succeeding.
Mining
claims and oil exploration have increased dramatically. New mines are opening, and the potential of a
number of promising sites is encouraging.
One of the largest and most significant is in the Williams Lake area
where successful exploration activity identified a new world‑class nickel
deposit for the province.
To
encourage translation of these and other prospects into quality jobs for
northern Manitoba, I am announcing a new mining investment tax credit. The credit will allow up to 7 percent of
investment in a new mine or major expansion of an existing mine as a deduction
from mining taxes. It is effective from
midnight tonight until December 31, 2003.
As
well, to encourage additional mineral processing and to further spur job
creation, the processing allowance under the mining tax will be doubled to 20
percent for new facilities or major expansions.
We
are clearly taking aggressive and effective action to build on one of our
greatest strengths, our natural resources.
Tobacco Taxes
The
federal decision to lower tobacco taxes in a discriminatory manner, and the
parallel cuts by eastern provinces have created the potential for east‑west
movement of contraband tobacco and additional problems for western provinces.
I
fully share the concerns of many Manitobans who urged our government not to cut
tobacco taxes. Lower tobacco taxes would
send the wrong message to our young people and place an added financial strain
on our health care system.
We,
therefore, remain firmly committed to maintaining our current level of tobacco
taxes by using improved enforcement to deal with the new pressures. We have asked for full federal co‑operation
in dealing with what is clearly a federally created problem.
I
am very pleased with the active co‑operation and financial support
received from all the western provinces on this issue. We believe a strong and united approach to
this difficult problem through such initiatives as increased information
sharing among provinces, stiffer fines and penalties, marked tobacco product
requirements and other related enforcement provisions will greatly reduce
opportunities for smuggling cigarettes into western Canada.
Priority Human Services
Mr.
Speaker, a well‑rounded and solidly based education, a high‑quality
and accessible health care system, and a reliable social safety net are key
components in the kind of life Manitobans want for themselves and their
children.
Our
government will continue to reflect these values through program enhancements
in key human service areas.
Health,
Education and Training, and Family Services account for 72 cents of every
dollar of program spending this year. In
fact, of the entire $1.1 billion increase in program spending since 1987, over $1
billion, or 92 percent, has been devoted to these priorities.
Education and Training
Mr.
Speaker, we will continue to refocus education and training to meet our most
important objective‑‑equipping our citizens with the skills
necessary to compete successfully in today's world.
To
ensure all Manitobans have comparable access to education, we will expand
distance education opportunities.
Several more school divisions will offer distance education services
this fall, and by the 1995 school year a province‑wide system involving
interactive television, video conferencing and library access is expected to be
in place.
Consultations
with all partners in education will emphasize ways to ensure that students meet
higher measurable standards. My
colleague the Minister of Education and Training (Mr. Manness) will hold a
Parents Forum on Education at the end of this month, providing parents a unique
opportunity for direct input in setting education priorities and establishing
new directions.
One
of the major themes of the University Education Review Commission earlier this
year was better use of post‑secondary resources and skills‑building
programs for Manitobans.
Consistent
with the report, all skills‑training initiatives have been consolidated,
apprenticeship training is being revitalized, and the successful Workforce 2000
program is being continued.
Youth
initiatives such as CareerStart, Partners with Youth, and the REDI youth
programs are being sustained.
We
have approached the federal government regarding their possible participation
in a tax credit savings plan to encourage Manitobans to secure skills training
essential in a changing economy.
The
community colleges budget will increase 3.3 percent to build on their success in
enhanced technical and vocational training.
Universities
will be asked to focus their activities more effectively. University operating funding will be reduced
by 2.7 percent this year, while capital funding will be increased by two‑thirds,
from $6 million to $10 million. Once
again, tuition fee increases will be limited to 5 percent.
Welfare To Work
Mr.
Speaker, this budget also places new emphasis on measures geared to improving
self‑reliance rather than fostering dependency. Priority is being maintained on providing
social assistance where it is truly needed.
* (1500)
Welfare
to work and skills upgrading thrusts in this budget will meet the needs of
individuals and families for adequate incomes while providing them with real
hope and opportunity for their future.
The
departments of Family Services and Education and Training are earmarking $3
million for specific pilot projects.
Given the federal government's position on pilot project funding, we
look forward to their participation. In
addition, we will participate with the City of Winnipeg and the federal
government in a $10 million welfare‑to‑work initiative under the
Infrastructure Works Agreement.
Health and Wellness
Mr.
Speaker, this budget invests $1.85 billion in health initiatives for
Manitobans. There is a consistent
emphasis on redirection of resources to community‑based care and illness
prevention.
While
my colleague the Minister of Health (Mr. McCrae) will be providing full details
during the Estimates review, I would like to highlight a few items:
Home care receives an additional
$2.6 million and includes service improvements through expansion of self‑managed
home care in rural and northern Manitoba, and establishment of an appeal panel
and an advisory committee.
Support services for seniors will be
enhanced through a special $500,000 allocation from the Healthy Communities
Development budget.
Regulated midwifery will be
introduced as an important component in a comprehensive obstetrical services
plan.
Breast cancer and cervical cancer
screening programs will be enhanced.
Funding for dialysis treatment will
be increased by $2.4 million, bringing the service closer to patients.
Increased funding of $1.3 million
will be available for bone marrow transplants.
Establishment of Manitoba's first
lung transplant pilot program means Manitobans no longer need to leave the
province for this vital service.
Pharmacare receives an additional
$5.6 million, and the new Drug Program Information Network (DPIN) system will
help avoid adverse drug reactions and overprescribing. The new DPIN will also process Phamacare
benefits automatically for Manitobans at the same time as prescriptions are
filled.
Community‑based mental health
services receive an additional $4.3 million.
Adult daycare spaces will be
increased throughout Manitoba.
The new five‑year agreement
with the Manitoba Medical Association provides a framework for co‑operatively
managing overall doctors' fees and improving access to services in rural areas.
Our
continuing objective is to modernize government so that it provides the
services Manitobans want and need on a basis that is sustainable and affordable
to taxpayers.
Meeting the Fiscal Challenge
Since
our election to office in 1988, our government has worked to bring the cost of
government, that is taxes, within reasonable levels for Manitobans.
We
have brought new thinking to government decision making, putting the concerns
of Manitobans front and centre. We have
emphasized internal reform, affordability and realistic expectations in public
sector compensation. The results are
becoming very evident.
This
year, Dominion Bond Rating Service cited Manitoba as being "the most
fiscally responsible province in Canada 1987 to present." Much of the credit should go to my
predecessor, the honourable member for Morris (Mr. Manness). On behalf of my colleagues and all Manitobans,
I would like to formally and publicly thank him for his excellent leadership, foresight
and dedication.
When
our government took office in 1988, Manitoba was facing a serious challenge‑‑the
burden created by a long period of high deficits, high taxes, unchecked
government spending and almost $4 billion of new debt piled up from fiscal 1982
through fiscal 1988.
Manitobans
know there are going to be deficits during and just after recessions due to
sharp revenue declines. But they are
critical of past governments which, despite periods of strong economic growth
in the last 20 years, ran deficits anyway.
By
far, the bulk of our current debt problem is attributable to the series of huge
deficits accumulated between 1982 and 1988.
In that period, Manitoba's general purpose government debt increased by
an average of 24 percent per year.
Think
of it. Imagine your own debts rising by
24 percent each year. Manitobans are
still paying for those excesses through higher debt and higher interest
payments. In 1981, Manitoba's interest
costs were about equal to the combined spending of just two medium‑sized
departments: Natural Resources and
Northern Affairs. Last year, interest
costs exceeded the combined spending of the departments of Natural Resources,
Northern Affairs, Agriculture, Highways and Transportation, Industry, Trade and
Tourism, Energy and Mines, Environment, Labour, and Consumer and Corporate
Affairs.
The
problem is obvious. We are spending
large sums of money each year on interest costs, $500 for every man, woman and
child in Manitoba, and this money provides no current program benefits or
services to Manitobans. Without the
inherited debt, every tax dollar would provide current services to Manitobans,
and we would have both a balanced budget and lower taxes.
The
Dominion Bond Rating Service put it succinctly, stating: "High cumulative deficits in the 1981 to
1988 period are the main reason interest costs are so high today."
In
our homes, each of us knows that one disadvantage of borrowing is that we must
repay both the original debt and the interest payments on the borrowed money.
For
government, there is a further disadvantage.
People, especially those people who make investment decisions, know that
if government is borrowing heavily today, it is going to have to raise taxes
sooner or later to pay the accumulated debt and associated interest. And when taxes are too high, people think
about living and investing elsewhere.
That
is why putting the province's fiscal house in order is the foundation of
Manitoba's economic progress. By
controlling government spending and keeping taxes down, we have been able to
create the kind of positive climate that attracts investment, encourages
expansion and creates jobs.
Entrepreneurship in Government
Mr.
Speaker, important actions have been taken to reduce the cost of government. An increased emphasis on innovation and
entrepreneurship is playing a key role.
Our
government has instituted a service and management improvement initiative,
building on the capabilities and dedication of our public service. This initiative, employing the ideas of civil
servants themselves, will enhance service and reduce the costs of government.
Our
government has had success in bringing greater pride and performance to
specific services through the introduction of special operating agencies. The Fleet Vehicles agency and the Materials
Distribution agency in the Department of Government Services were the first two
such agencies created at the provincial level in Canada. As a result, transportation needs are being
met with 500 fewer vehicles than in 1987 and annual savings of close to $3
million.
Based
on our experience to date, we are establishing another two new agencies this
year: the organization and staff
development branch of the Civil Service Commission and the Vital Statistics branch
of Consumer and Corporate Affairs. Both
agencies are expected to operate utilizing their own revenue sources without
government subsidy. Manitoba has become
recognized as an innovator in this area, and other provinces are following our
success with interest.
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Overlap
and duplication among government departments is being reduced. Every department used to have its own
personnel and payroll branch. This year,
sharing of personnel functions is being implemented with savings expected to
exceed $1 million.
Administration
and finance functions in the Housing and Urban Affairs departments have been
consolidated.
Internal
audit resources have been merged to better serve all of government. As part of its mandate, "value for
money" audits will be performed to help measure the effectiveness of
government programs.
The
environmental chemistry services currently provided by Ward Laboratory in the
Department of Environment and Cadham Laboratory in the Department of Health are
being consolidated as the Environmental Sciences Centre in the Economic
Innovation and Technology Council.
Management
has been delayered, unnecessary functions reduced and eliminated. In this budget, further streamlining will
reduce the staff complement by 393 positions.
We
have worked hard to provide job openings for displaced employees through
incentives for voluntary separations and aggressive redeployment efforts. As a result, we have held the number of
individuals receiving layoff notices to 41, and we are confident the number of
people actually displaced at the end of April will be further reduced.
The
introduction of the reduced workweek program saved nearly $20 million in 1993‑94
and approximately 500 jobs. The spirit
of dedication exhibited by our employees has been a tribute to their commitment
to public service. The program is being
extended for 1994‑95 with similar positive results anticipated.
Government's
overtime bill for 1993‑94 has been reduced by nearly $3 million or 35
percent from the year previous.
We
have divested ourselves of operations which need not be part of
government. These include Manfor,
ManOil, Manitoba Data Services, soil testing and feed analysis labs, veterinary
drug and semen centres, an agricultural extension centre and the highways sign
shop. The Queen's Printer in‑house
printing operations were closed when it became clear that private printers
could meet government's need at a lower cost.
Full‑cost
recovery has been implemented for services and costs such as occupancy, postal
services and internal legal services which are provided by one government
department to another. This provides an
incentive for more careful use of such services. Rational decision making requires that the
full costs of government activity be recognized in each department's own
budget. This year, for the first time,
employee benefit costs will be allocated to each department's budget.
Our
managers found they could save $2.2 million over the last two years by reducing
the amount of rented space they were using.
Manitoba
Hydro and Manitoba Telephone System will begin paying capital tax. The change will put these utilities on a
level playing field with their competitors, which have always been liable for
this tax, and move Manitoba's practice more in line with other provinces which
levy a capital tax.
Particular
problem areas have been turned around.
The Workers Compensation Board is a good example. Despite average assessment increases of 20
percent annually from 1983 to 1988, the board accumulated unfunded liabilities
of $232 million. Since then, the
liabilities have been reduced to $76 million, while the average assessment
rates have been held constant, and service has been improved significantly.
Manitoba
will host the 1994 Western Premiers' Conference in mid‑May in Gimli. One of the most important priorities for that
conference will be the extension of co‑operative initiatives by the
western and territorial governments. For
example, we are looking at opportunities with Saskatchewan to co‑operatively
manage forest fire suppression and related operations.
The Need For A Stronger Canadian Partnership
Mr.
Speaker, we welcome the new federal government's commitment to co‑operation
with the provinces and to predictability and adequacy in federal transfer
arrangements.
Clearly,
there is much work to do. Federal
decisions since 1982 now cost Manitoba in excess of $300 million annually in
transfers and a further $200 million in provincial program costs through
offloading of other federal program responsibilities.
Federal
transfers designated for the critical areas of health and higher education have
fallen from 52 percent to 35 percent of program costs. Had the provincial government restricted its
commitment to health and higher education in line with these federal transfers,
hospitals, health care, universities and colleges today would face a $700
million, or 30 percent, reduction in their budgets. It is through provincial cushioning of the
federal offloading that commitments have been maintained at higher levels.
While
we are pleased that equalization arrangements have been renewed for a further
five years, we have specific concerns in some important areas.
Despite
our strenuous objections, the federal government has reduced the ceiling on
equalization to a record low share of Canada's gross national product. The old ceiling has already cost Manitoba
$300 million, and the potential impacts of the new ceiling remain a serious
concern.
We
are enthusiastic participants in the work now proceeding on eliminating
unnecessary overlap and duplication between federal and provincial
governments. Successes in this area can
ensure better public services at lower cost to taxpayers. The objective must be to lower our combined
debt and deficits, not merely to shift the problem from one jurisdiction to
another.
The
federal government has responded to provincial calls for joint efforts to
refocus Canada's social security system.
Governments must work together to rationalize the myriad of existing
programs and meet the needs of Canadians more effectively and at lower
cost. However, we remain concerned that
provinces may be left unfairly at risk if the program savings are not realized
and Ottawa proceeds with more unilateral reductions in transfers.
A
parliamentary committee on the GST is currently receiving submissions from
Canadians on ideas to deal with the sales tax.
Manitoba is looking forward to the committee's report and to the
commencement of ministerial discussions on ways to improve Canada's tax
structure. Manitoba's objectives in the
discussions will include fairness for consumers and businesses.
Western
Premiers and Finance ministers have suggested that the idea of an independent
tax revenue agency for all federal and provincial taxes warrants careful
attention. Such an agency could make
revenue collection more effective and reduce duplication of administrative and
compliance requirements.
I
would also reaffirm Manitoba's support for the development of aboriginal self‑government
to the extent possible within the current Canadian Constitution. Too often in the past, along with the
aboriginal community, we have witnessed the abrogation of many federal
responsibilities both on and off Indian reserves in Manitoba. For aboriginal government to succeed, Ottawa
must live up to its responsibilities to aboriginal peoples while co‑operatively
developing viable options for the future.
This must be the paramount objective of the recently announced federal
initiative.
I
have outlined a number of areas which hold promise for major benefits but in
which Manitoba also has major concerns.
If these concerns can be addressed in a meaningful way, federal‑provincial
relations can begin a new era of co‑operation and greater harmony.
Lotteries
Mr.
Speaker, this year we will be dedicating $124 million of lotteries revenue to
support program expenditure. This includes
$24 million for first‑year costs of the province's one‑third
contribution under the Infrastructure Works Agreement. Also included is the financial support
provided to rural communities and the City of Winnipeg from the operation of
video lottery terminals (VLTs). Ten
percent of VLT revenue will be granted unconditionally to both rural
communities and Winnipeg. A further 25
percent of VLT revenue will be used for economic development initiatives in
Winnipeg and rural Manitoba.
* (1520)
For
rural Manitoba, this means that $4 million will be paid in unconditional grants
to rural communities, and $10 million will be used to fund the already
established rural economic development programs.
As
well, $4 million of VLT revenue will be paid unconditionally to the City of
Winnipeg. A further $10 million will be
allocated for economic development initiatives in Winnipeg. Some of the projects that have already been
identified include provincial contributions toward a portion of the operating
costs of the Winnipeg Convention Centre, Winnipeg 2000 and Tourism
Winnipeg. The province will consider
other initiatives as the year progresses.
Mr.
Speaker, we will direct $90 million of lotteries revenue toward deficit
reduction to protect priority social programs.
This is part of our fiscal plan and contributes to the stability of
funding for health, education and family services.
Fiscal Summary
Mr.
Speaker, our government has worked hard to ensure that priority public programs
remain affordable and accessible to Manitobans and their families. That is why with this budget we have held
taxes steady for seven years while working continuously to make government
serve the people at lower cost.
For
1993‑94 the forecast deficit is $461 million, $94 million higher than
originally budgeted. The main factors in
the projected deficit increase were unexpected reductions in federal transfer
payments resulting from weaker economic performance especially in central
Canada, and higher debt service costs as a result of a weaker Canadian
dollar. An additional $50 million draw
from lotteries will help cushion the impact of these two unforeseen
events. Program spending in 1993‑94
was kept on track despite unanticipated pressures related to summer flooding
and social assistance caseloads.
In
1994‑95 we will follow the fiscal plan presented last year which called
for a further reduction of 1 percent in overall program spending. I am pleased that this has been achieved
without jeopardizing priority social programs.
By
bringing government spending under control, we have positioned ourselves to
achieve a fully balanced budget quickly, as the economic recovery strengthens,
and revenue growth returns to more normal levels.
In
1994‑95 we will secure an $18 million operating surplus. This is the measure many governments use to
describe a balanced budget.
The
operating surplus means that Manitoba has sufficient revenue to pay for its
current program expenditure and its public debt costs. Only capital expenditure, permanent
infrastructure such as highways and other lasting assets, are being financed
from the budgetary deficit this year.
The budgetary deficit, including capital expenditure, will be $296
million.
A
further measure of our progress toward eliminating the deficit is the $165
million or 35.8 percent decline in the budgetary deficit for 1994‑95. This comes on top of the $105 million decline
in 1993‑94 compared to 1992‑93.
Over
the past six years the deficit has averaged $320 million annually, or about 1.3
percent of provincial gross domestic product.
This percentage is the lowest in Canada.
By this measure, Manitoba has the best record of fiscal management among
the provinces.
Balanced Budget
Mr.
Speaker, eliminating the deficit is one of the most significant tasks our
government has ever undertaken. I am
pleased that we are on track to a balanced budget. Evidence of that progress is contained in
this budget's achievement of an operating surplus for the current fiscal year.
The
government has charted its way forward from 1994‑95 based on modest
annual revenue growth of about 3 percent.
The
deficit will be eliminated and a balanced budget will be achieved on target in
1996‑97 without any tax increases or any further reductions in overall
program spending.
The
rewards of this fiscal strategy are before us:
lower
taxes;
more
income left in the pockets of Manitoba families;
more
jobs and a stronger economy;
affordable
and accessible public programs; and
a
balanced budget.
In
1997‑98, a projected surplus of $150 million will be available. This means much greater flexibility. Manitobans will have the leeway to choose to
pay down the debt or reduce taxes.
While
we continue to follow our fiscal plan into the future, I believe it is also
important that all Manitobans realize how much they have accomplished to date.
Conclusion
Mr.
Speaker, seven years ago we began the task of modernizing government to put the
concerns of our citizens first.
Fortunately, Manitobans were on the leading edge in Canada in realizing
that new approaches emphasizing controlled spending and lower taxes were
necessary to allow our province to grow and to prosper.
Today
Manitobans are reaping the benefits of having started on the path to fiscal
responsibility before any other senior government in Canada.
Our
competitive taxes and positive business climate are creating thousands of jobs
by allowing home‑grown businesses to flourish and by attracting exciting
new investments from other Canadian and international firms.
Decisions
to invest and grow in Manitoba can now be made solely on the basis of our many
advantages:
qualified
and industrious people;
central
location and time zone;
high‑quality
transportation and communication networks; and
bountiful
resources including abundant low‑cost energy.
We
are employing open processes which rely on direct public input to modernize and
improve our key social programs.
And
we have achieved a balanced operating budget and are on track to a fully balanced
budget two years from now.
These
are important assets for any province to possess. However, the most significant benefit to be
won is the sense of stability and renewed confidence Manitobans are now
experiencing.
Manitobans
are, indeed, the greatest strength our province has. The future will be defined by their hopes and
dreams. It will be built on their talent
and determination.
Mr.
Speaker, for that reason more than any other, I approach the future with
confidence, enthusiasm and great anticipation.
Together,
we will build a stronger Manitoba.
Thank
you, Mr. Speaker.
Mr. Gary Doer (Leader of the
Opposition): I move, seconded by the member for Brandon
East (Mr. Leonard Evans), that debate be adjourned.
Motion agreed to.
Mr. Stefanson:
Mr. Speaker, I move, seconded by the Minister of Justice (Mrs. Vodrey),
that this House at its next sitting will resolve itself into a committee to
consider of the Supply to be granted to Her Majesty.
Motion agreed to.
Mr. Stefanson:
I move, seconded by the Minister of Industry, Trade and Tourism (Mr.
Downey), that this House at its next sitting will resolve itself into a
committee to consider of Ways and Means for raising of the Supply to be granted
to Her Majesty.
Motion agreed to.
Messages
Hon. Eric Stefanson (Minister of
Finance): Mr. Speaker, I have two messages from His
Honour the Lieutenant‑Governor.
Mr. Speaker:
The Lieutenant‑Governor transmits, to the Legislative Assembly of
Manitoba, Estimates of sums required for the services of the province for
capital expenditures and recommends these Estimates to the Legislative
Assembly.
The
Lieutenant‑Governor transmits, to the Legislative Assembly of Manitoba,
Estimates of sums required for the Services of the province for the fiscal year
ending the 31st day of March, 1995, and recommends these Estimates to the
Legislative Assembly.
Mr. Stefanson:
Mr. Speaker, I move, seconded by the Minister of Energy and Mines (Mr.
Orchard), that the messages together with the Estimates accompanying the same
be referred to the Committee of Supply.
Motion agreed to.
* (1530)
Introduction of Guests
Mr. Speaker:
Prior to asking the House if it is the will to call it six o'clock, I
would like to draw the attention of honourable members to the Speaker's Gallery
and also to the loge to my right, where we have with us this afternoon the
Honourable Dr. George Johnson, the former Lieutenant‑Governor for the
province and the former MLA for Gimli, and also in the loge to my right, where
we have Mr. Harry Graham, the former MLA for Virden and a former Speaker of
this Legislative Assembly, and Mr. J. Frank Johnston, the former MLA for
Sturgeon Creek.
On
behalf of all honourable members, I would like to welcome you gentlemen here
this afternoon.
Is
it the will of the House to call it six o'clock? Six o'clock?
The hour being 6 p.m., this House is now adjourned and stands adjourned
till 1:30 p.m. tomorrow (Thursday).
Erratum
On
Friday, April 15, 1994, page 283, comments inadvertently attributed to Mr. Manness
should be attributed to Mr. McCrae.