Legislative Assembly Money is in short supply from the investor, it has been difficult on some occasions to sell bonds from the Provinces of Canada . Interest rates have reached the point where when we borrow one million dollars it costs us a million and a half dollars to repay that same loan. This, then, suggests how very expensive it is, Mr. Speaker , to borrow money and it suggests or ought to suggest, to each member of this House how dear a price we pay for money we borrow today on the money market. And so even although it might have been popular, and even although it might have been salutatory for us to have gone into heavy deficit financing this year Honourable Members will realize the long-term costs of such a venture. We have had to do what other provinces have done, to batten down the hatches and to bring our spending more in line with our revenues. We have been more successful fortunately than other provinces. Looking at the budget for Alberta, the wealthy oil province; the programs which Alberta is presenting to its people involve deficit financing in that province this year of $70,000,000. In Nova Scotia , our sister province, the deficit will grow during the next fiscal year by $14,000,000. Last year Prince Edward Island endeavoured to curb the growth of debt in¬ crease because two years ago we saw Prince Edward Island incur a deficit of $11,000,000, and that will cost us $17,000,000, then, to pay back. Last year that was cut down to about three or four million, and the Provincial Treasurer's figures this year indicate that our deficit increase will be in the area of one million dollars. This we have had to do, Mr. Speaker . Many suggestions have been made as to what we should be doing and what we ought to be doing. More paving, more jobs, more wel¬ fare. Mr. Speaker , those suggestions are being made with the assumption that this Province has a choice. It has been unfortunate for me as Leader of a Government at this time, 1968 to find ourselves in the position of having no choice at all but of having to pursue the only course available to us, to bring our expenditures more in line with our revenues. No choice at all but to restore the financial responsibility, and the financial integrity of Prince Edward Island so that as we move ahead in the years to come we will be able to do so with the reputation of being able to live in a house that is known for its financial responsibility. Another factor leading to our position at the present time was mentioned two years ago by the Provincial Treasurer, and I mention it again for the record. In 195!) Prince Edward Island was raising 53% of its money requirements. In 1962 Prince Edward Island was raising 54% of its money requirements. In 1965 however Prince only raised 45% of its requirements, and in 1968 Prince Ed ¬ ward Island will only raise 35% of its requirements. So that for every hundred dollars we spend, we raise or we earn only $35.00, and we rely upon the Federal Government, and the transfers from the Federal Gov¬ ernment to make up the difference between what we can raise at home and what we are spending. That is quite a spread, Mr. Speaker , and because we are raising only 35%. of our requirements, and depending upon the Federal Government for some 65%, it strongly suggests that we have lost our autonomy as a Province and that we must indeed take those steps which are available to us now by bringing our bud¬ get more into a balanced position and restoring the financial base upon which this Province will continue to operate. So there has been no choice. During this year there have been no startling developments in agriculture or in industrial development, much to the regress of the government. There have been no large expansions in industry, but we believe that we have pursued a very proper course in assisting Island owned industries. As I mentioned the other day, we have invested $3,000,000 in Island industry. There is always the quick temptation to hand out great sums of money from people who come into our Province, and a few years ago we made available to an individual from outside the Province $3,000,000 or more. During this past year or so we have extended some $3,000,000 to some twenty-five businesses throughout the Province, and we say that with no regrets but with a great deal of pride that it is working in our autonomy today to the benefit of Island business. We have had the pleasure over the last year, Mr. Speaker , of working with farmers and of working with fishermen. Farmers in all areas of their activity in agriculture; fishermen in various capacities as well. We feel that they have helped us complete our studies and helped us immeasurably in our planning, and we fore- —344—