Tuesday, April 25, 1967 Many of you I am sure will find this a wearisome subject but it is one which we must consider most seriously as it is very necessary, and at this time the most important matter to be considered by this Assembly . I hope that each Member will give close attention to this review because the very future of this Province depends upon the proper management of our fiscal affairs. These proposals for the expenditure of public monies which I submit this evening: *» your Provincial Treasurer, must be analysed by you very carefully. It is your duty to satisfy yourselves that they are sufficient to carry out the necessary public services that you deem to be the requirements of the people you represent and also that they are within our financial capacity. This Government took office on July 28, 1966 and we were not lone in finding out that we faced very serious financial problems: bank loans, treasury bills, accrued interest, and accounts payable exceeded $26 million. About $9,000,000. of this short term borrowing had been used for long term loans. Demands were being made by the banks to have these amounts liquidated. It was also determined that many appro¬ priations for the year ending March 31, 1967 had already been committed and that the commitment for provincial paving projects had exceeded the estimates by $1.3 million. A pattern of Government spending had been established which seemed to have had the effect of convincing the general public that there was no limit to public spending, indeed that there was "no bottom to the barrel". It was not long, Mr. Speaker , before it became quite evident that our Province had been living beyond its means and it could not continue to go along in this manner indefinitely. There are many services, programs, and facilities which we, as Islanders, may feel we have a right to expect. We should, individually and as a Province, do our utmost to achieve these goals. But we cannot expect to become a rich Province overnight, nor can we hope to provide all the facilities some other province enjoy unto we have developed an economy which can support the expenditures required. This is one of the main objectives of this Government — to define the economic goals toward which this Province may reasonably aim, and, having defined these objectives, to develop and implement a co-ordinated plan which will increase the incomes of our citizens, provide the physical facilities we must have, and create a financial climate which can hold our young people who have heretofore been our most valuable export. This will be no short or simple task. The previous government, I am sure, had similar aims. I do not agree with the manner in which many projects were carried out; I believe that there was a ser¬ ious lack of planning, and that many mistakes were made; but let us recognize some of the things which our predecessors did accomplish. Federal programs have made possible an extensive program of highway con¬ struction, an expanded vocational and technical training program, and enlarged health and welfare programs; the provincial government itself made many necessary com¬ mitments in recent years to elementary, secondary, and post-secondary education. In many ways this is a legacy which our Government should be pleased to inherit, but we inherit also a treasury which has been strained to the utmost, a provincial debt which is the highest per capita in Canada , programs requiring ever increasing expenditures, and a taste for luxuries we cannot afford. We must therefore tighten our belts and concentrate now upon those expenditures which are in them¬ selves productive. We must develop our capacity to earn. We must curtail non¬ essential expenditure, and if necessary, we must increase the already heavy tax bur¬ den our people have to pay for the services we alrady enjoy. I wish that my first Budget Speech could convey a different message but these are the facts and wishing cannot change them. Before proceeding with the Supply which is to be appropriated to the public services for the fiscal year beginning April 1, 1967 I shall first deal briefly with the Public Accounts for the fiscal year ended March 81, 1906. Next, review in greater detail, the Interim Statement of Revenue and Expenditure for the fiscal year just ended; deal with the new federal-provincial fiscal arrangements; and, fin¬ ally, ttie Budget for the fiscal period beginning April 1, 1967. —881—