Legislative Assembly

(1) October 1, 1965 $1,250,000. — 3% dated October 1, 1950; and

(2) March 1, 1966 $1,700,000. -— 394% dated March 1, 1956.

In the same fiscal period the Province sold the following debenture issues:—

(1) May 1, 1965 $3,500,000. — 536% due May 1, 1985 at a price of $97.10 per hundred dollars. Cost to the Province 5.49%.

(2) January 15, 1966 $3,000.00. -— 5%% due January 15, 1989 at a price of $96.66 per hundred dollars. Cost to the Province 6.02%; and on

(3) March 8, 1966 the Province sold to the Canada Pension Plan Investment Fund bonds to the amount of $108,000. at a cost to the Province of 5.29%.

I refer to these transactions, Mr. Speaker, because they illustrate the continued upswing in interest rates as evidenced in 1966-67 by the high cost of borrowing money as compared to the aforementioned issues made during the fiscal period 1965.66.

Changes in the form of the Public Accounts as presented for the fiscal year 1965-66, implement recommendations made by our External Auditors, Touche, Ross, Bailey & Smart, Chartered Accountants of Montreal. We shall also adopt other recommendations made by them to enable us to maintain a strict budgetary control over revenues and expenditures, and at the same time provide more complete informa- tion regarding the Province's financial position.

INTERIM STATEMENT

For the fiscal year ended March 31, 1967 Mr. Speaker, with the permission of the House, I now deal with the Interim Statement of Revenue and Expenditure for the fiscal year April lst, 1966, to March 31, 1967, consisting of eight months’ actual and four months’ forecast.

On March 24, 1966, the then Provincial Treasurer brought down the Budget for the fiscal year ending 31st March, 1967, and on page 13 of the printed Speech I read as as follows:

“In line with the principles already enunciated this budget for 1966-67 has been prepared. Here are the figures:

“The budget provides for expenditures on current account of $38,360,493, revenues of $33,429,067. and a budgetary surplus of $68,574. In addition, it provides for ca ital payments $10,677,557. with offsetting capital receipts 0 $9,440,761. for a net expenditure of $1,236,796.

“The estimated over-all requirement on ordinary and capital account and the estimated result of the ensuing year’s opera- tion is as follows:—

Net Capital Expenditures . . .. .......... .V . H . .. $1,236,796. Less: Su lus on Ordinary Account V . H i . .$ 68,574. Sinking nd Appropriation V ....... .. .. V .. V .. . 1,370,120. Interest, etc. on Sinking Fund Investmen . V. 280,000. 1,718,694. Estimated Decrease in Debt (Consolidated Fund) . . . $ 481,898.

In fairness to the former Provincial Treasurer I should like to quote him in regard to this estimated decrease. Referring to the inclusion of $5,100,000. under Capital Receipts for the sale of the new Provincial Office Building to the Prince Edward Island Crown Building Corporation during the year, he stated:—

“This sale must be reflected in the revenue of the Consolidated Fund, just as the cost incurred shows as an expenditure in the years 1965-66 and 1966-67.

Though this transaction produces a decrease in liabilities of the Consolidated Fund for the year, I do not suggest to Honourable Members that this sale reduces the overall liabilities of the Province and its crown agencies”.

.334—