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The 1999 Provincial Budget Address
Opportunity and Optimism
Mr. Speaker, Members of the Legislative Assembly.
This is the third occasion that I have had the privilege of presenting the Provincial
Budget and a statement on the financial status of our Province. Once again, it gives
me great pleasure to deliver good news.
The budgeting process is about much more than numbers. It is about the ability of
Government to help Islanders through the delivery of effective programs and services
at reasonable and fair rates of taxation. It is about building a stronger province
and a more secure future for individual Islanders. Meeting those objectives requires
the setting of priorities and at times demands the ability to make tough choices.
The Government has over the past two years invested in social and economic priorities
while consistently following prudent and careful management of expenditures. I am
pleased this evening to present a Budget that continues to respond to the needs of
Islanders and establishes an agenda of opportunity for the future. Budgets, by their
very nature, must be forward thinking and forward looking documents. This Budget
is about opportunity and optimism. It is about providing a better standard of living
for all Islanders. It is about responsible Government and charting a strategic course
to guide Islanders into the new millennium.
Our long term strategy was clearly defined in the fall election of 1996, when we told
Islanders we would follow a plan focused on their needs. This plan promotes four
key priority areas of importance to all Islanders - health care, education, job creation and community development. We remain committed to this integrated platform.
This strategic direction is founded in our pre-election consultations with Islanders,
and guided in part by the pre-budget consultations held each year. During the past
several months many citizens and organizations provided me with valuable input. Not
only have we listened to Islanders' concerns, we have acted on their concerns and in
many cases exceeded our objectives.
Fiscal Responsibility
Building new opportunities for the future means we have to maintain sound economic
and financial management. Although we still face a degree of economic uncertainty
due to global circumstances, we are optimistic for our future. Since coming to office,
the economy's performance has consistently out paced our budget forecast.
The Prince Edward Island economy performed well in 1998, expanding at about 1.8%.
The main strengths for the Island economy were in tourism and manufacturing.
Another strong year in tourism resulted in revenues increasing by 11.6% while visitations
increased by 4.2%.
In 1998-99, Farm Cash receipts totalled $308.3 million led by a 32% increase in potato
sales.
The value of lobster landings increased by 10%.
Exports of goods from Prince Edward Island were up by 20%.
Manufacturing shipments increased by 5.1%.
We were the only province to post a negative inflation rate last year, largely because
of lower international crude oil prices.
Retail trade has surpassed the $1 billion mark and in virtually every community new
private sector investment is evidence of continued confidence.
A full account of the Island economy can be found in Budget Paper A.
Mr. Speaker, what this means is that our Provincial economy is getting stronger and
our economic independence is growing.
The Canadian economy is also growing strongly, and that has triggered increased revenues
- principally from the equalization program. I have no hesitation in recognizing
the significant equalization transfers received this past year and the role they
have played in meeting our Budget objectives. I would also point out that past experience
demonstrates such entitlements can fluctuate significantly. The key is to use such
funds wisely.
Government has weathered difficult times over the past decade and it would be unfair
to permit increased federal transfers to overshadow the contributions of Islanders
to the financial stability of their Government. As recently as five years ago, more
than half of the Province's revenues came directly from the Federal Government. In this
Budget federal revenue will comprise only 41 percent of the Provinces revenues.
The Province has been noted as achieving one of the highest rates of increasing self
reliance and we intend to build on that success.
Last year, when I stood in this Assembly I told Islanders that we expected a deficit
for the fiscal year just ended of $3.4 million. I also reaffirmed our commitment
to a true balanced Budget.
Mr. Speaker, I am now pleased to report we are ahead of schedule in honouring that
commitment.
Mr. Speaker, for only the second time this decade, the Government of Prince Edward
Island will make a payment against the net debt of the Province.
Facing a possible deficit of $55 million three years ago and forecasting a deficit
of $3.4 million for the past fiscal year, tonight I am pleased to report that the
books are finally balanced.
Further Mr. Speaker, we will enter the new millennium on a positive note and a strong
financial position with a surplus budget for 1999-2000.
In bringing about this dramatic change in the financial status of the Province we
not only maintained, but enhanced Island health care. We not only maintained, we
dramatically improved education infrastructure. We supported new job creation, improved
highways, provided more funding to communities and initiated important new programs for
the benefit of Islanders.
For the fiscal year just ended, there were expenditures of $849.9 million with revenues
of $852.8 million for a surplus on current account of $2.9 million. One significant
factor was the upward adjustments to Equalization that occurred through 1998-99.
These adjustments reflected federal underestimates of entitlements for past years and
consequently are largely non recurring. Accordingly
,
we have chosen to structure them in such a way as to maximize the benefit over several
years.
For fiscal year 1999-2000 we are budgeting for expenditures of $823.9 million, with
revenues of $828.1 million for a budgeted surplus of $4.2 million.
A great deal has been achieved in a relatively short period of time, but Mr. Speaker,
we've only just begun. We are optimistic about the opportunities ahead of us.
Federal Provincial Relations
In seeking election we said we were prepared to work in partnership with the Federal
Government.
We have worked together with the Island members of Parliament and the Federal Government
in meeting the needs of Islanders. The Premier has met several times with the Prime
Minister and other Federal Ministers to advance the concerns and ideas of Islanders.
That positive, cooperative, open dialogue approach has produced results and Mr. Speaker
I am confident it will continue to produce positive results, not only in the health
care field, but in all aspects of our shared responsibility to Islanders.
The Province is pleased that the Federal Government has finally acknowledged the serious
provincial needs for additional funding for health care.
The new Canada Health and Social Transfer (CHST) money is to be delivered in accordance
with a schedule that provides between $9 million and $11 million additional annual
monies to Prince Edward Island, starting in 1999/2000. This essentially raises the
Province's CHST revenue from $60 million to $69 million in 1999/2000, rising to $71
million in 2001/02.
Revisions to Equalization entitlements in 1998/99 were of an unprecedented scale.
These changes took place as part of the regular functioning of the program. In
all, Equalization revenues, at $264.7 million, were $55.7 million higher than budget.
Essentially the Province had been seriously underpaid for the years 1996/97, 1997/98 and
1998/99 and this was recognized as new data entered the formula.
Details concerning CHST and Equalization can be found in Budget Paper B.
Investing in Health Care for Islanders
Mr. Speaker, health care is a stated priority of this Government. It was a major
plank in our election platform and when Premier Binns attended his first Premiers
Conference in 1997 health care was his priority. At that meeting the Premiers and
Territorial Leaders united in one common and over-riding priority - restoration of federal
health care funding. That united priority was restated at the 1998 meeting and it
has produced results. In February the First Ministers reached the health accord
and the Federal Budget made some restoration of the dramatic cuts to health care funding through
the Canada Health and Social Transfer.
On behalf of all Islanders, I want to thank the Premier and his colleagues for their
leadership in supporting the needs of Canada's health care system and striving to
maintain our system as a world leader.
Tonight, I reiterate our Government's pledge to invest all funds we receive from this
accord into the Province's health care system. In fact, we have gone beyond the
federal funding and once again further increased our own commitment to health care.
My Caucus colleagues joke that I at times guard the Treasury with a pit bull style,
and I do admit a determination for fiscal responsibility. But, Mr. Speaker, I do
not want anyone to mistake the true intentions of such actions. My interest is in
building a better future, and this Budget will clearly demonstrate that when the funds have
been available we have carefully and thoughtfully invested in the long term benefit
of Islanders. Nowhere is that more evident than in health care.
We on this side of the House, do not look at a surplus budget as an end in itself
but rather as a means to a greater end.
Sitting in the public gallery tonight is a friend of mine, a person who helped the
Premier and the Minister of Health and Social Services turn the sod on the new cancer
oncology unit at the Queen Elizabeth Hospital. Someone who knows first hand the
benefit of that type of treatment being available to Islanders - on Island, where they can
have the support of family and friends. That to me is what fiscal responsibility
represents - the ability to respond to needs. It is about people like Glenda Gallant
and the thousands of others, who like her, have waged the personal battle against cancer.
More than anything else I have done, I am pleased to have been a part of the decision
making team that led to the construction of the cancer oncology unit. It will officially open in June of this year.
Working closely with the Medical Society of Prince Edward Island 12 physician vacancies
were filled.
The Province also reached a three year Master Agreement with the Medical Society to
help ensure on-call physician coverage in all seven hospitals in the Province, and
yes Mr. Speaker, we kept all seven hospitals open and operating.
In a matter of weeks we will break ground on a new 40 bed Provincial Addictions Treatment
Centre. This is a $3.2 million investment in meeting the needs of Islanders suffering
from a variety of addictions. We are providing a modern provincial facility that had not been available in the past, to enable us to better accommodate all in need.
We are also providing community-based programs for youth, women and people with
gambling addictions in all five health regions across the Province.
Government also introduced the Multiple Sclerosis Drug Cost Assistance Program. Recognizing
the opportunity to reduce suffering, this program is targeted to help Islanders who
suffer from relapsing-remitting Multiple Sclerosis with the purchase of four new Multiple Sclerosis medications. Our program is rated as one of the best in the
region.
Mammography Screening Clinics were enhanced at the Prince County Hospital and the
Queen Elizabeth Hospital.
In April of last year we announced our intention to replace the Prince County Hospital.
The project has now entered the next step of the planning process and the Master
and Functional Program will be completed this summer. As an option, Government
will explore a partnership with the private sector to develop this new facility. While
exploring this model, we will be guided by our commitment to protect the rights of
existing employees and maintain provincial control over the delivery of all programs
and services.
Mr. Speaker- We have only just begun.
Mr. Speaker, the Province relies on a number of facilities to provide services to
Islanders. I am pleased to announce today that our Government will build on its
1998 commitment when we invested $612,500 in private nursing homes and community
care. This fiscal year our Government will invest an additional $625,000 in private nursing homes
and community care. This reflects our commitment to maintain services for society's
most vulnerable citizens.
Support staff and health care professionals provide the vital links that deliver services
to the public. Government fully appreciates the contributions made by these individuals.
Yet, the facilities these service providers work in are also important. That is why Mr. Speaker, tonight I am announcing that we will invest $1 million to maintain
and improve our health care facilities. This infrastructure investment is needed
by our front line service providers and is in addition to the $1 million allocated
last year.
Beginning April 1, 1999 the Prince Edward Island Family Health Benefit will provide
low income families with better access to needed medications. With this benefit,
lower income families with significant prescription costs will have access to needed
medications. This initiative follows last year's investment under the National Child
Benefit and the Child Care Subsidy Program. This program gave parents of over 180
children easier access to work or educational opportunities. It also follows additional
investments made this past year in the Special Needs Funding Program, which enabled
35 children to receive integrated child services valued at over $530,000.
Front line health care services in each region are critical to the well being of Islanders
and our communities. Islanders have told us that we must do as much as possible
to protect and enhance regional, front line service delivery. That is why we have
chosen to make investments in front line services a priority.
In 1998-99 we added to our health care system 35.3 full time equivalent front line
positions in the regions. In 1999-2000 we will add an additional 21.1 full time
equivalent front line positions. An additional 11 full time equivalent support positions
will be added, representing an on going investment of more than $2.5 million.
Mr. Speaker, as a result of revenue growth over the past year, I am pleased to announce
several major health care initiatives.
We recognize that because revenues fluctuate we can not always rely on increases,
especially those related to equalization, being maintained. Therefore those dollars
must be used wisely. It would have been easy to find projects to go on a one time
spending spree, but we chose a different and more responsible approach. Therefore, $12
million will be placed in two special funds to support future health initiatives.
Two of those funds relate directly to health care services.
Tonight, I am announcing the establishment of a $10 million
Health Care Stabilization Fund
.
The dollars in this fund, including earned interest, will be expended over the next
three years directly in support of front line services. Up to one-third of the fund
may be committed in each of the next three fiscal years to support front line services
in health. The structuring of this fund will enable us to make more sustainable investments
in health care services that will not only have an immediate, but a longer term impact
on the system. This fiscal year $3 million will be utilized to employ approximately 60 new nurses in the system. This is an investment that goes directly to
the front lines of health care across this province. This action will help alleviate
some of the stresses in the system.
It is a major investment in support of some of our most important health care providers.
It is an unfortunate fact that our region and Province has the highest rate of asthma
in the country. It is also an unfortunate reality many Islanders suffer from cancer
and diabetes.
In an effort to address these issues, the Government of Prince Edward Island has established
a $2 million
Health Research Fund. The Fund will be used to support innovative research and education efforts and
where possible to develop partnerships to build further knowledge about these conditions
and advances in treatment.
Mr. Speaker, reflecting the priority placed on health care by this Government and
Islanders, this Budget represents an additional investment of $17.6 million in health
care.
Mr. Speaker, while we appreciate the Federal Government's reinvestment in health care,
it is only fair that I point out that the additional $9 million we receive this year,
while an improvement, is far short of the loss of funding prior to the introduction of the Canada Health and Social Transfer. In fact, the $9 million represents about
one-third of the annual funding cuts. In order to maintain and enhance our health
care system we have consistently had to increase the provincial share of funding.
Health and Social Services now account for 36% of the total Budget and has risen by
more than $28 million over the past three years.
Education - Life Long Learning
Mr. Speaker, as we approach the new millennium we are reminded that time is a continuum.
Similarly, as we approach a new century our education system is continuing to evolve
to support life long learning.
An effective education is the greatest opportunity we can offer the young people of
today as they take on the responsibilities of the world tomorrow. I have spent a
good part of my career in the classroom as a teacher and I know that it takes a strong
partnership among teachers, parents, students, government and the community to truly
honour the goal of a good education. That is why education is a priority of this
Government and why we have made substantial investments in the education sector.
As part of this renewal process, our Government announced a Workforce Renewal Plan
to renew our elementary and secondary school system. This $3.3 million plan provides
incentives for teachers who are within two years of retirement to choose a retirement
option. Mr. Speaker, these veteran teachers have contributed to the building of our
school system and they will leave a lasting legacy to be appreciated by generations
of students. The Workforce Renewal Plan will provide new opportunities for other
Island teachers to secure employment in their chosen profession here in Prince Edward Island.
The Province has recognized the need for teachers to have access to technology in
the classroom. Mr. Speaker, over $500,000 has been invested in equipment and training
for the integration of technology with our curriculum.
Funding has been provided for teachers to attend technology workshops and consultants
have been provided to assist teachers in the implementation of technology.
I am announcing tonight that a $1 million
Teacher Training and Technology Fund
has been established to support additional training of teachers already employed
in the system.
A mentoring program announced in February recruited unemployed teachers to work with
schools' technology committees, to help teaching staff integrate technology and learning
outcomes into the curriculum.
Our Government, Mr. Speaker, has invested in programs for Literacy and Adult Basic
Education. This joint program gives Islanders an opportunity to increase their literacy
skills and complete their high school requirements -- without charge. Only one other province provides such a program in Canada and over 600 adult Islanders have participated
in the program to date.
The Government recognizes that in addition to instilling knowledge in students, it
is equally important to encourage physical fitness. That is why Mr. Speaker we invested
in Recreation 2000, a two year pilot program that began last year. This $50,000
initiative, being piloted in Kings County and Southern Queens County will encourage community
development, cooperation between schools and use of school facilities.
Mr. Speaker in 1999-2000, the Government will continue the highly successful Reading
Recovery Program with an additional $175,000 investment. This program has garnered
an international reputation for providing excellence in literacy instruction and
has had positive affects in 11 Island schools. I am pleased to announce Mr. Speaker that
even more students will benefit in 1999-2000 as we extend Reading Recovery to 16
additional schools.
The Government will also invest $150,000 in special education and special needs programming
in this Budget. These investments follow recommendations contained in the Government's
study of special education programming. Through an infusion of $150,000 the Government will increase the number of teaching assistant positions, increase funding
for special needs programming and continue to implement the Government's recommendations
over a five year period.
In direct support of our school boards, funding has been allocated to eliminate the
existing deficits so that as school board elections are held the new boards may begin
with a new slate.
Additional funding has also been provided to meet one-time additional costs at the
University of Prince Edward Island and Holland College.
Job Creation and Communities
Mr. Speaker, our Government was elected in large measure because of its commitment
to develop stronger communities. This is achieved by direct support of community
institutions and through the fostering of job creation across the Island. Meaningful
employment is one of the keys to keeping communities strong. Numerous initiatives have
already been undertaken, more will be implemented this year.
Community pride is a hallmark of Prince Edward Island. Last year, most communities
in our Province took an active part in the celebration of our 125th anniversary as
a province of Canada. The Provincial Government was pleased to partner with community
based groups and organizations in recognizing that historic occasion. This year we
will again work with community-based organizations to plan Province-wide millennium
celebrations highlighting Prince Edward Island's unique history and promising future.
Through an investment of $450,000 in community-driven events, we will assist communities
to organize legacy events well into the millennium. These events will celebrate
the arts, heritage and local history.
Mr. Speaker, just this past week, the Government announced an agreement with the East
Coast Music Association to house the head office for the organization at the Confederation
Centre of the Arts. This will enhance our opportunity to build on the talent of many Islanders and the role that talent can play in the further development of the
cultural industry.
The funding support provided to the Confederation Centre of the Arts will also be
increased to ensure the Centre can continue to meet its mandate.
Additional funding in the amount of $125,000 has been provided to the Prince Edward
Island Council of the Arts to support its important role in the development of this
industry.
Stronger communities also means safer communities. That is why our Government is
pleased to be involved in a partnership arrangement with Justice Canada to provide
support for the Community Mobilization Program and the National Crime Prevention
Initiative.
Mr. Speaker, safer communities depend upon critical emergency support services in
times of need, such as province-wide 911. We will continue that work this year and
the 911 system will be fully operational by June, 2000.
Mr. Speaker, to ensure the health, vitality and future well-being of rural communities
throughout Prince Edward Island, the continued growth and development of our primary
industries is one of the major objectives of this Government. Resource industries
are the very heart of our economy and increasing their contributions to our Province
is a key strategy in our goal of greater self-reliance. That is why this Budget
will continue our commitment to support the growth and development of agriculture,
forestry, fishing and food processing.
As announced in the Speech from the Throne, the Provincial Government is undertaking
a Food Strategy to realize the potential for these industries to sustain our resource
base, derive more value from it and provide new economic and employment opportunities. Over the past year we made substantial progress in laying the foundation for this
new Food Strategy.
Mr. Speaker close to half a million dollars will be directed to new market development
programs in the Department of Agriculture and Forestry, something that we said we
would do in the Throne Speech.
The Provincial Government responded quickly and effectively to support hog producers,
by making $1 million available through an enhanced incentive program, low interest
loans and other measures.
Mr. Speaker, we have reached agreement with the Federal Government on a new national
agriculture safety net program. In this fiscal year, on top of our ongoing contributions
of over $3.5 million to safety net programs, the Government will provide a further $1.4 million under the Agricultural Income Disaster Assistance Program. When combined
with the Federal share, Island farmers whose incomes are affected adversely by circumstances
beyond their control will be able to access $5 million additional dollars this year.
Mr. Speaker, Government will introduce a new woodlot owner education program to encourage
more active forest management. To meet this anticipated demand, the Government will
increase seedling production from 2.1 million seedlings in 1998 to 2.7 million in
1999 and again to 3 million seedlings in 2000.
Through organizations such as Enterprise PEI, our Government provides supports to
business people so that they in-turn can create new wealth.
Additional funding in the amount of $500,000 will be included in this Budget for support
of small business development.
We have enjoyed a good working relationship with the Federal Government in fostering
economic development. The Regional Economic Development Agreement (REDA) has produced
long-term benefits for Islanders.
In an effort to further develop that partnership and the impact it has on job creation,
our Government has established a $6.5 million
Development Fund
. We have in essence put our money on the table, and we will be seeking additional
federal funding under REDA to support development initiatives.
In 1999/2000, the Government will continue to implement innovative programs to build
stronger communities across Prince Edward Island. We will work across Government
departments to create a new Community Bureau to foster and encourage community participation and development at the local level. We will place community development workers
in all Regional Service Centres to act as resources for local community coordination.
We have also established a $2 million
Community Development Fund
that over the next two years will provide support for community development initiatives.
Our natural environment is one of our most precious resources It is widely recognized
that our economic and social health are closely tied to ecological health.
Through our buffer zones legislation, Island farmers are demonstrating their commitment
and respect for our soil and water resources. Approximately 280 farm families have
completed Environmental Farm Plan workshops.
Tonight I am announcing the establishment of a $2 million
Waterway Protection Support Fund
. This fund will assist the agriculture industry in meeting the objective of greater
protection of our waterways.
In 1999, the Francophone Summit will be held in our neighbouring Province of New Brunswick.
Our Government has worked closely this past year with the Prince Edward Island Acadian
community to develop approximately 40 initiatives to allow Islanders to benefit, both culturally and economically, from the proximity of the summit. The Minister
Responsible for Francophone Affairs will soon be announcing several initiatives related
to the Summit that will highlight the important presence of the Acadian community on Prince Edward Island.
Mr. Speaker, the tourism and fisheries sectors are vital contributors to our Province's
economy. Tourism operators are making new strides to expand their activities into
the shoulder seasons. Fishers continue to be the source of income for many of our
small towns and villages throughout Prince Edward Island.
Our Government, together with the tourism industry, is adopting a strategic approach
to develop our tourism products. We are establishing new standards for growth in
the sector; refining priorities for developing new products and services; and building
a consensus in the tourism industry to plan our long term future. For the first time
in four years, we will be providing additional funding of $300,000 to the Tourism
Marketing Authority. That represents a 20 percent increase.
Mr. Speaker, our fisheries continue to prosper under this Government's leadership.
Overall landings for 1998 increased to 129 million pounds valued at $121 million.
While cost share funding has concluded under the Primary Resource Program, negotiations
are ongoing with the Federal Government for additional funding under REDA. The
Provincial Government, recognizing the importance of the aquaculture industry, will
contribute an additional $300,000 to this program.
Pending negotiations between the Province, the Federal Government and the shellfish
industry, we will provide funding in the amount of $100,000 for the Shellfish
Aquaculture Leasing Program.
A key priority for our Government, Mr. Speaker, is to maintain our vital infrastructure.
Our Provincial roads and highways are the ties that bind our communities and economy
together. In this coming year, our Government will continue to improve upon safety programs and standards in our efforts to make Island roads as safe as possible.
Mr. Speaker, people are the driving force behind the Government's ability to deliver
a wide range of services to our citizens. The Province of Prince Edward Island is
fortunate to employ quality employees who are committed to serving the public.
As part of our Government's plan to renew the civil service, Government announced
in March its decision to proceed to classify 495 positions within the Civil Service.
This decision stemmed from Government's commitment to renew and instill greater
fairness in its long term casual hiring practices.
Managing a human resource environment as complex as the Provincial Civil Service requires
that employees have the right tools to do their jobs. That is why our Government
is announcing its investment in a new human resources management system to address
the needs of the Civil Service and the health and education sectors. Through a partnership
involving the Province and Veterans Affairs Canada, the Government will implement
a new "PeopleSoft" human resources information system. PeopleSoft will allow for
a sharing of expertise, resources and information technology solutions.
During the past year Mr. Speaker our Government successfully concluded negotiations
with two public sector bargaining units, representing 3,500 public servants.
Tax Relief
Now, Mr. Speaker, I turn to the revenue side of the equation.
Once again I am pleased to state - this Budget does not include any tax increases.
For years Islanders have faced the steadily increasing burden of higher levels of
taxation. In the decade preceding the election of this Government, the rate of personal
income tax was raised three times. Tonight, Mr. Speaker, we reverse that trend.
Tonight for the very first time in the history of our Province, I am announcing a
drop in the provincial income tax rate.
The Provincial personal income tax rate, as expressed as a percentage of the Federal
basic tax, will be reduced by a full percentage point, from 59.5 per cent to 58.5
per cent.
Furthermore, this reduction will be effective January 1, 1999 so that Islanders will
enjoy the full year benefit.
This tax reduction will provide a tax savings to Islanders of $2.2 million per year.
When coupled with the induced effect of Federal tax reductions that were announced
in the Federal Budget, the payment of Provincial income tax by Islanders will be
reduced annually by $6.8 million. By lowering provincial taxes in conjunction with the
federal tax reductions, we have been able to maximize the benefit to Islanders.
Islanders will also benefit from the reductions in Federal personal income tax in
1999 and 2000. On an annualized basis the total tax savings for Islanders from the
Federal and Provincial measures will be approximately $16.8 million, or $260 per
Island taxpayer.
Through these initiatives, every taxpayer will receive a tax break. This, Mr. Speaker,
is in keeping with our Government's strong belief that all Islanders should benefit
in tax relief.
More details on the Income Tax can be found in Budget Paper C.
The tax reductions for this year are a clear signal of our Government's intentions
for the future. This Government's philosophy is to place money in the hands of Islanders
to enable them to improve their standard of living. This philosophy provides Islanders with more disposable income -- dollars they can use to purchase goods and services
provided by Island businesses -- dollars that Islanders can save and invest for their
future needs.
Tax Fairness
Mr. Speaker, our Provincial Government recognizes that fairness is an integral part
of good government. Indeed, it is the responsibility of Government to ensure its
tax revenues are collected in an equitable, fair and consistent manner.
As Provincial Treasurer, I believe it is important that we make information available
about our revenue procedures using plain language. I believe it is important to
provide information to the public in a timely fashion. We must be consistent in
the application of tax rules and we must be impartial. And Mr. Speaker, we must be flexible,
where possible, in understanding clients' needs, and provide support to clients so
that they know their rights and obligations.
To this end, I am pleased to announce our Government's intention to create a tax 'fairness
package' -- a first for Prince Edward Island. The fairness package will give taxpayers
access to an impartial redress process and when appropriate, provide relief to qualified taxpayers in extraordinary circumstances.
Conclusion
Mr. Speaker, two years ago I presented our Government's first Budget following the
voters decision to pursue a different course.
Under the leadership of our Premier Pat Binns we have remained true to our promises.
Premier Binns has led our team, kept us on track and focused our energies on the
mandate we were elected on - health care, education, support for business and building
strong communities.
As we enter a new millennium this Government will continue to listen and act on voters
concerns. Tonight, I have outlined some of our achievements and plans for the future.
We will be fiscally responsible with surplus budgets this year and next. We will
provide tax relief for all Islanders by reducing personal income taxes by one full
percentage point. We are introducing Prince Edward Island's first ever tax fairness
package. We are investing in front line services for health care, pursuing asthma, cancer
and diabetes research, preserving existing hospitals and building a new hospital
and an addictions centre.
Our plans to renew the education system, acquire new technology and pursue new programming
initiatives will reduce costs and strengthen programs for students. Our support
for millennium projects, crime prevention initiatives and the implementation of 911
will build new capacities into communities. The pursuit of a new Food Strategy and
sustainable farming practices will strongly position our Island producers in the
competitive market place. By supporting businesses and investing in communities
across Prince Edward Island we will diversify our economy. Our new technologies and environmental
stewardship will enhance Prince Edward Island's reputation as a "Smart Province"
and protect our pristine environment. The continued diversification of our tourism
industry will create new marketing opportunities. We will support vital research in
our fisheries and advocate for the rights of Prince Edward Island's fishers. By
strengthening our infrastructure we will strengthen our economy.
A year ago I stated that our vision of Prince Edward Island was of a prosperous and
generous society with a strong spirit of community. We said that in the coming century,
we would help to create the best province in Canada in which to live. Mr. Speaker
I think you will agree that we are right on track.
In closing Mr. Speaker, I want to thank my colleagues for their assistance and support
and the dedicated work of the employees of the Provincial Government.