MANI TOBA BUD.GE T AND - ECON OMIC RE VI EW 1961 ''q.ne,���­ j-&r-&f.V� itP�� ·�'

THE LEGISLATIVE ASSEMBLY OF MANITOBA 8: 00 o'c lock, Friday, April � th, 1961 MR . SPEAKER : The Committee of Ways and Means. Mr. Speaker: BUDGET STATEMENT AND EC ONOMIC REVIEW BY THE HONOUR ABLE DUFF ROBLIN PREMIER AND PROVINCIAL TREASURER OF MANITOBA 1961 This marks the third occasion on which I have been privileged to place before this House an accounting of the Province's financial affairs for a year past and a

summary of the plans for the new year. I begin with a review of the economic conditions that prevailed over the past year and give an appreciation of the outlook for the succeeding twelve months. Against this background, the references to Departmental and Agency activities will assume their proper place. Manitoba's economy continued to display substantial and diversified strength throughout 1960. As on the two past budget days, I am able to report that we fared more favourably in many respects than did much of the rest of Canada over the past year.

However, we do not and must not overlook the fact that no region of this country can long 'sustain progress while other regions find the pace of economic development difficult. There must be a sustained growth nationally if any one region is to benefit over the long-term period.

The evidence of a serious imbalance in the Canadian economy in recent months can have a fundamental influence on Manitoba's economic situation, through both the weakening of incen­ tives for private expansion and through the constrictions placed upoi:J. provincial public program- mes and upon municipal development. � I have prefaced my general economic review with these remarks, offered in the interests of realism. They are not in any way indicative of any lack of confidence on this Government's part as to the future of the Province and her potential for progress.

The evidence of soundness and resilience in our economy is much too strong to permit even the most deliberate pessimist any room for doubt as to our capacity for the future . �.THE EC ONOMIC OUTLINE The Provincial economy has passed from the buoyancy evident in the early weeks of 1960 to a period of adjustment with the slower pace of the national and co1;1tinental economies. The Gross National Product grew by less than3p er cent during 1960 - to about $3 5.5 billion- as compared to the 6 per cent growth recorded in 1959. Even so, there were but few evidences of decline in Manitoba's economic activity.

There were many indications of continued growth - growth widely spread across the community - contributing to the increasing, diversified strength of our economy. New capital investment in the Provincial economy increased in total by about 6 per cent between 19,59 and 1960, moving upward from $484 million to $51 3 million. This increase was concentrated in the public investment sector with $29 million more than the total estimated for 1959 being invested in 1960 by government departments , institutions and utilities .

Total invest­ ment for both new equipment and plant and for repairs and maintenance to existing equipment and facilities totalled to over $681 million in 1960 as compared to $652 million in 195 9 - an increase of 4. 5 per cent, according to present Dominion Bureau of Sta tistics estimates. In the construction sector, Manitoba did better than the rest of the country taken as a whole . More multiple dwelling units were built during the year offsetting the decline in single dwelling unit starts . Commercial building continued at high pace throughout 1960.

While there has been less construction carry-over into the first part of 196 1, conditions in the housing mar­ ket are tending to stabilize. In other areas of economic activity within the Province, the levelling off of investment was also reflected in a slowdown in production schedules . At the beginning of the year it had been hoped that in 1960 Manitoba's manufacturing sector would reach an annual shipment value of over $800 million. Indeed, for a good part of the year it seemed quite possible that we would Page 1700 April 7th, 1961

I .G" e: f � CO "' � "d � � _, 0 � COl.fi'ARIOON OF MANITOBA 'S ESTIMATED GROSS PRO VINCIAL INCOME · AND GROSS NATIONAL PROOOCT Manitoba's Estimated Year · Gross Provincial Income 1950 1,0 16 1951 1,164 1952 1, 259 1953 1, 255 1954 1, 252 1955 1,373 1956 1,5 74 1957 1, 550 1958 1, 669 1959 1,757 1960* 1,805 * Projected. Source: Treasury Department. (Millions or Dollars) % Increase Over Previous Year S.3 14.6 S.2 � 0.3 - 0.2 9.7 14.6 - 1.5 7.7 5.3 2.7 Gross National Product 18,203 21,474 23,255 24,473 24,S71 27,132 30, 585 31,773 32, 606 34, 593 35,5 00 % Increase Over Previous Year 11.3 18.0 8.3 5.2 1.6 9.1 12.7 3.9 2.6 6.1 .2.6

"tt � 1-' '"" 0 "" > 'tl :1 .... '"" .... .P" 1-' "' 0> 1-' Year. Agriculture 1950 327 1951 351 1952 364 1953 284 1954 250 1955 264 1956 3U .1957 260 1958 322 1959 323 1960* 315 MANITOBA'S PROVINCIAL OUTPUT GROSS VALUE .(MUllons or Dollars) · Forest and · Mineral Resoijrces .Manufacturing 76 486 � 551 78 574 . 73 · 585 84 · 571 117 588 118 647 121 665 . 74 694 75 · 754 . 78 738 * Estimated Source: Department or Agriculture Department of Mine� and Natural Resources Department of Industry and Commerce Construction Total 155 l,OM l83 1,165 .199 1, 215 246 1, 188 241 1,146 257 1,226 304 1,381 327 1,3 73 345 1,4 35 410- 1, 562 400 1,531

.6- � -'1 r+ .?' ,_. tc 0> ,_. '0 J,l CD ,_. -'1 0 c� MANIT OBA'S PROVINCIAL OUTPUT 0 CONSTRUCTION GR OSS VALUE IN MILLI ONS OF DOLLA RS FOR THE YEARS ......... 1950 -19 60 0 MANUFACTURING 0 FOREST 6 MINERAL RESOURCES 0 AGRICULTURE Q i·" m��� El:fi::I:R:11 � \0 �0� � ,.�1 ,.,� � I I I I I 1 1� ,.�1 ,.<�� • <Jb" ,.,.� A._ ro 1"' � '1.1 J::l:11:f:l:H:l � oo I I 1 1">" 1800 1700 1600 1500 1400 1300 1200 11 00 lQ � 1000 :l � 900 � 11) 800 � .... 700 � 600 500 400 300 200 100 • � � � � :-se: � :"9#": ' o 1950 1955 1956 1957 1958 1959 1960

"d � � 0 ""' > � ::! . ... """ � � "' 1-' ESTIMATED GROOS VALUE OF SHlll iENTS FOR. MANI'IDBA MANUFACTURERS BY INDUSiRIAL GROUPS (Thousands of dollars) Industrial Group 1958 Food & Beverages 275,0 42 Electrical Apparatus & Supplies 13,901 Transportation Equipment 52,4 68 . Misc ellaneous Industries 8,967 Textiles 9, 569 .Clothing 47,212 . Leather Products 5, 102 Rubber Products 53 Wood Products 31, 516 .

Paper-Products 37,0 91 Printing, Publishing & Allied Industries 35,5 00 Products of Petroleum & Coal 57,632' Chemicals & Allied Products 17,747 Non-metallic l.fineral Products 23,156 Non-ferrous Metal Products .�0 ,724 Iron & Steel Products 68,371 TOTAL: 694,051 * Estimated. Source: Department of Industry & Commerce. 1959* 1960"* 298,492 292,540 15 ,098 14,766 57,359 56,176 ' 9, 606 9, 598 10, 550 10,336 51/�31 50,258 5, 320 5,168 . 75 74 33,9 09 33 ,266 40,028 39,1 83 38,L,Jl 37,706 62,689 61,362 19,59 2 19,196 24,867 24,406 11,303 11,075 74.690 73.,207 -. -. - 753,5 40_ 73�_,317

(Mr. Roblin, cont'd. ) ••••• reach this goal. However , preliminary reckonings for the entire twelve-month period indicate that the general decline in the Canadian economy last year had its effect on Manitoba's manufacturing output, particularly in the third quarter of the year. Once again, in 1960, Manitoba's retail sales reflected greater strength than most other regions in Canada. With an estimated $827 million in retail trade value during 1960, we have marked the sixth straight year in which the Province's retail transaction value has increased over the preceding period.

Much of the increase last year was again effected in the service industry sector as the Province continued to diversify its economy. It is significant that in 1960 personal incomes continued to rise. The aggrega te income earned by Manitobans is now estimated at $1, 365 million for 1960 -u p some $45 million over 1959. Bank deposits were at a higher level than ever before. Funds for consumption purposes were thus available. Prices remained reasonably stable throughout 1960 in both the retail and wholesale sectors.

The improvement in the Province's retail trade can, therefore, fortunate­ ly be attributed to a volume increase rather than to inflation, although the expansion was modest by comparison to growth in previous years . New life insurance puchases in the Pro­ vince are nearing an ann ual level of $200 million and bank clearings approached the $20 billion mark in Manitoba last year. All these factors gave impressive evidence of the continuing confidence in the economy on the part of most Manitobans . Substantial new investment continued within Manitoba's economic community.

New food processing activities, new chemical operations, additions to light manufacturing production in a number of fields, a large number of new service industry installations, and a considerable number of new mixed commercial operations began during the year. These additions to our economic fabric help explain the continuing relative strength of Manitoba's employment condi­ tions. In Manitoba, we were able to record gains in new employment during the 1960 period and our unemployment experience was noticeably better than for much of the rest of the nation.

However , as 1960 drew to a close, an estimated 4 to 5 per cent of Manitoba's more than 300, 000 workers were unemployed. By mid-March the proportion of unemployment had increased to about 7 per cent of the labour force which is, indeed, a cause for concern. I have made mention previously of the important role of new investment in our economic progress . Indeed, I cannot cite any other single factor in the economic activities engendered by both public and private policy more important than new capital investment in our plant, equipment and service facilities.

New investment means new employment opportunities and these opportunities must be created as our population growth and other factors contribute to an ever expanding labour force . Much of the unemployment experience in Canada over the past year or more has , in fact, been attributable to an increase in the numbers in the labour force of the country· greater than the increase in the number of job opportunities for these people. Job opportunities are created by new investment; they are sustained by continuing investment.

Investment in repair and maintenance is also essential to the efficient operation of the economy, for it, too, means that more men continue to work at a steady pace as the fluctuations in new investinent patterns take place. Had it not been for the very high level of investment in the past two years , Manitoba's employment experience would have been much worse over the past months. Regardless of the g�neral pace of the economy, we could not long sustain a short-fall nor even a lack of growth in investment activity without serious repercussions in our employment, income, savings and production.

The year 1960 was not a year of· decline in our economy in real terms, but one of slow­ ing down in the rate of economic growth - a period of consolidation of gains rather than one of sharp advance. The Grpss National Product for Canada. is, as I have indicated, estimated to have risen by between 2 and 3 per cent last year, but this has to be compared with a rise approximating 6 per cent in 1959.

We have , in fact, come to require since the close of the Second World War an average annual increment in the Gross National Product in the order of at least 5 per cent to sustain the main balance of our economic prosperity. These factors ex­ plain the emphasis placed, by Governments , upon the practical necessity for new investments , particularly in periods when the economy shows signs of slowing. Thus, with our total new capital investment from both public and private sectors averaging April 7th, 1961 Page 1705

(Mr. Roblin, cont'd. ) •••••• well over $485 million annually over the past tWo years , we have been able to sustain existing employment. In aggregate, this annual new investment of $485 million, which may be measured against the current requirements of average annual wages and salaries, represents in broad economic terms new support in each year for between 30, 000 and 35, 000 potential employment units, for either immediate effect or future expansion of the work force. However, in spite of these facts there has been an increasing level of unemployment.

The nature of this phenomenon is becoming more clear throughout the North American economy. It is this factor which underlies the renewed emphasis on the need for training of properly qualified technicians and artisans of all types. More important still, this training must reflect the new techniques and approaches to production and distribution problems that are appearing in the economic scene at an ever increasing rate.

Uneducated and unskilled workers are becoming increasingly difficult to absorb into economic activity everywhere and constitute the bulk of unemployment, as statistics illustrate only too clearly. We believe that the representations of the Government played a

part in the expansion of Dominion-Provincial retraining facilities and programmes, one product of which is the new technical institute to be started this year. Such educational and training activities are a nec­ es sary adjunct to the esse ntial new investment programmes that I have emphasized previously. It will do us little go!Jd economically to create new opportunities if we are not able to establish a level of training and proficiency among our workers that will enable them to avail themselves of these opportunities.

Investment in the public sector has been maintained at high levels by Government policy over the past two and one-half years. Public investment has been providing new power, com­ munications, transportation, and other essential community facilities at record levels . To an important degree this massive public investment has been necess itated by the need to overtake a considerable backlog from past years. In addition, the provision of these public facilities has been made to attract and support increased activity in the private sector of the economy .

We are gratified to note that an in­ crease in private economic participation has, in fact, occurred, but we emphasize that it must be continued and increased. New enterprises have been attracted to Manitoba and their loca­ tion assisted, in considerable measure , by the combined efforts of many Government depart­ ments , including the services provided by the Department of Industry and Commerce.

These new establishments have all directly benefitted the residents of Manitoba by cre­ ating employment on a: full time basis for some hundreds of persons as well as part time seasonal opportunities for several hundred more . The purchase of Manitoba's raw materials to supply these plants will stimulate output of other sectors of the economy , particularly agriculture. Community development corporations have been established with Government encourage­ ment. Composed of -local residents of rural municipalities, these organizations have as their fundamental purposes the creation of local employment and industry.

The development groups have made a promising start in interesting potential new investors in the rural municipalities through their financial, moral and technical assistance. The potential investor finds that enthusiasm and co-operation in municipalities where these corporations exist is extremely encouraging and that a climate favourable to industrial development and growth is flourishing. The first such corporation was established in Morden in February, 1960, and to date 17 other communities have founded similar associations.

The Manitoba Development Fund has assisted in the growth of the community develop­ ment corporations as well as in the general economic development of the Province. Direct loans have aided over 60 firms , individuals and community development corporations since December, 1958 , benefitting both the Province and the firms involved.

Through loans granted directly to investors or through the community development corporations, we have helped to industrialize the rural areas of the Province to the extent that 65 per cent of the loans author­ ized by the Development Fund were for establishments located outside of Metropolitan Winni­ peg. To the end of the 1960-61 fiscal year, it has been estimated that loans to the extent of $5 million will have been authorized. The tourist industry in Manitoba - encouraged by Government support and promotion- April 7th, 1961 Page 1707

(Mr. Roblin, cont' d.) ••••• continued to grow during 19 60. It has been estimated that $36.3 million was spent by tourists in Manitoba during the 1960 season, an increase of 5 per cent from the $34.6 million tourist expenditure in 19 59. To meet tourist needs, and to' counter increasing competition elsewhere, $4 million was spent during the last year on the expansion and improvement of existing tourist facilities or on new accommodations including motels, trailer parks , tourist camps , hunting and fishing lodges.

The overall outlook for the economy in 1961 justifies a reasonable degree of optimism, although It must certainly be tempered by a clear understanding of the full range of difficult long-term problems that challenge our progress in many sectors . In short, we have realistic confidence for the year ahead. Industrial production indicators show that the slide in activity during the second and third quarters of 1960 has been halted. Inventories are reasonably low and new orders are now beginning to appear'in greater.numbers .

Our Provincial population growth continues at better than 1, 000 persons per month, and this indicates continued expansion· of opportunities for Manitoba's service-oriented industrial economy. We have anticipated a population by mid-1961 of some 913 ,0 00 persons . The Gross National Product, and the Provincial share, may. be expected to resume a: forward movement during 1961 that was largely absent in the last year. ·· However, the rate of expansion in.production and sales will be determined by many factors external to the Canadian economy.

Most qualified opinion suggests that business activity will rise slawly throughout the first half of the year, and that'the third quarter of 1961 should mark a resumption of new in- . vestment expansion-on a moderate scale. The Dominion. Bureau of Statistics estimates tend to support this view. · The Government of Manitoba will continue to invest public funds where it-believes the most productive results may be obtained.

We cann6t stress too strongly,_ however, the essen­ tial partnership of effort of all segments of our economy that is necessary if our programmes are to reach their full promise for the progress of our Province . AGRICULTURE In reviewing the development of Manitoba's trade and manufacti.Jring sector, we must not lose sight of the fact that Manitoba agriculture continues to provide between one-fifth and one­ quarter of the direct value of production in the Province.

In addition, the largest manufacturing grouping in the Provincial economy is devoted to the proces sing of foods and beverages, much of which draws directly upon provincial agricultural output or closely related activities .• - A considerable po;rtion of production research in all Manitoba industries is aimed-at the wider and more profitable use of products drawn directly or indirectly from the land. Manitoba's farms continue to be the base upon which many of our industrial, trade, finance , and service endeavours are being developed.

Rural enterprise still supports over one-third of our Provin­ cial population directly. Probably one-half of our people are involved, in one way or another, in their daily endeavours , with agriculture or with the p:r;ocessing of agricultural output. OVer a quarter of a billion dollars annually is involved in the processing, packaging, and distribution of food and other farm produce in this Province. To the urban businessman the 11U'al customer makes a significant contribution to sustain­ ing the commercial volume and profit level of his business.

The farm in Manitoba is the best supplier and often the best customer of a great share of Manitoba industry. Industries use the pool of stable labour and the reliable skills of the farm residents who are able to leave the land for a part of the year or,. eventually, to take training as industrial workers in our economy. Integration and balance between agriculture and industry is part of our economic strength in Manitoba - balanced and integrated rural-urban economic progress explains much of this Province's stability during recent economic swings.

But we must emphasize otir concern for the unsatisfactory state of net farm income. While productions has held well, net farm income continues to lag behind the net income of the economy as a whole.' Tbe gross value of agricul­ tural production in 1960 has been estimated in preliminary returns at approximately $315 million. The year 1960 was the third in successi on to have recorded gross agricultural out- put of more than $300 million. However, we must continue to press those· measures which will give to the farmer a more substantial share in our economic benefits.

Farm production marketing is expected to hold steady in 196 1. There may even be, in fact, some moderate gains. Page 1708 April 7th, 1961

I � � � .... (0 Cl> .... "d � .... ..., 0 0:0 MANITOa ii.•S PRINARY RESOURCE OUTPUT PRODUCTION VALUE (Thousands of Dollars) -. -. -. -- . � 1958 1959 Agriculture 322, 694 323,24 7 Minerals 57,0 66 Forest Products 17,000 Furs 5,3 66 Fisheries 5,935 - Resource Output 408 ,0 61 Source: Depa.rtment of Mine s a.nd Natural Resources. Department of Agriculture. 55, 507 19,000 5,0 59 6,2 54 409 ,067 1960 315,300 56p 788 21,000 5,439 6,5 07 -- 405,0 34

"d I>' � ,_. ""' ,_. 0 .6" '1 r::: ""' F ,_. "' "' ,_. MANITOBA AGRICULTURAL PRODUCTION, 1950-1960 . � Aggregate Production Total ($000) - ($000) 1950 326,971 240,875 1951 35 0, 650 . 280,428 1952 -364,191 269,4131 1953 283,903 227,969 1954 249,5 20 215, 518 - 1955 264,396 220,790 1956 311,817 252, 589 1957 259,719 238,416 1958 322,694 . 266,359 1959 323,2 47 263,506 1960 ** 315,300 256,0 24 ' * Including allowances for seed, grain, etc. fed to stock. ** Estimated • Source: Department of Agriculture. Net _Production * Average )er Farm ($ 4, 5BS 5, 393 5,1 132 4,384 . 4,144 4, 246. 5,155 4,1366 5,436 5,3 78 5,447 -

(Mr. Roblin, cont'd. ) ••••• The Manitoba Agricultural Credit Corporation has lent approximate­ ly $10 million since its inception two years ago and loans amounting to approximately $5 million annually are now being made . The 332 , 000 acre , $4 million crop insurance programme in the four test areas during the past year was successful. This programme - involving 2,5 00 far­ mers last year- can materially affect the future development of agriculture in Manitoba through wise and judicious extension of the insurance plan, in co-operation with the Federal authorities who participate in the cost of the programme .

Farm business groups continue to train young farmers in farm management. Because it is extremely difficult for a farmer to leave his business to acquire this training, it has been the policy of the Government to take the specialist to the farme r. A four year course is at present being given to over 400 young farmers representing 15 communities of the Province. Plans are to increase this number at a rate of approximately 100 farmers per year. It is hoped that over 1, 000 farmers in 35 centres will eventually participate in the farm business group prog­ ramme .

Our Water Control and Conservation Branch is providing new potable water facilities for the agricultural community in Manitoba. The Branch has moved to reduce flood damage and the losses associated with it. In the, first full year of operation by the Water Control and Conserva­ tion Branch, a $5 million water control programme was commenced. Aid was also given to municipalities and unorganized areas and work was undertaken in drainage districts 'lggregating $1.5 million in value. The drainage works programme completed Last year was the most extensive on record.

A million dollar capital programme for the construction of soil and water control works throughout the Province was advanced with the award of 13 contracts for the construction of floodways , drains , bridges and dams. The Manitoba Water Supply Board completed its first project in 1960 with the construction of an 8 mile pipeline from Neche , North Dakota, to Altona, Manitoba.

The Greater Winnipeg Floodway Property Committee established in mid-1960 to purchase and manage land required for the construction of the 30 mile flood diversion channel for the Red River around Metropoli­ tan Winnipeg, has made substantial progress towards the purchase of the more than 650 flood­ way properties. The Minister of Agriculture has been instrumental in bringing about a major event - a National Conference on Farm Policy Research.

A steering committee for such an organization has been created and it may be expected that a substantial attack will be ma de upon one of the big problems facing farmers today -- the need for expanded and improved mark ets. A continuing economic land classification study of Manitoba by a team of Federal-Provin­ cial agricultural specialists will determine the highest agricultural use for land in the settled parts of the Province . This information is most important in the formation of sound agricul­ tural policy.

POWER AND COMMUNICA TIONS During the past year, large sums of money have been borrowed to invest in power and telephone communications facilities to meet our growing needs. Without adequate provision for power, our urban development would be halted, our industrial expansion would be impo ssible, and the increasing technological improvements in agriculture would be seriously retarded. The Manitoba Power Commiss ion added 7, 290 customers last year, including 400 at Churchill. Electrical energy distributed during the calendar year increased 6 per cent to 1. 7 billion kilowatt hours.

During the same period the Manitoba Power Commission's capital investment in transmission and distribution facilities was increased by some $8 million. The Kelsey Hydro-Electric Generating Station went into operation in June to supply Thompson and its great mine . The Manitoba-Saskatchewan inter-connecting service provided for The Manitoba Hydro-Electric Board by the Power Commission was completed and placed in operation during the past year and has already proved its value.

To accommo date our growth the facilities of the former Manitoba Power Commission will require investment of some $9 .0 million in the coming fiscal year by The Manitoba Hydro-, Electric Board. Last year the Manitoba Telephone System installed nearly 14, 500 new telephones, which April 7th, 1961 Page 1711 -

Page 1712 HYDRO-ELECTRIC PO/IER PRODUCTION IN MANITOBA FOR SELECTED YEARS Year 1906 1916" 1926 1936 1946 1956 1957 1958 1959 196� Kilowatt-hours (Thousands) 10,936 210,840 616, 551 1,320,019 1,939,405 3,369,836 3, 373,973 :3,104,264 3,6 24,886 3,824, 888 Average Net Value (Thousands o! Dollars) 2,1�� 3,8 23 6,072 12,606 28,307 29,016 26,697 31,174 .32,894 * Source: Manitoba Hydro-Electric Board. Previous years' dat.a from Dept. of Mines & Natural Resources. April 7th, 1961

S8flOH-1.LtiM07 1)( :/0 SN0/77/W g N "' § "' � � � � � 0 S! .. <( ID 0 F z <( � z z 0 b ::l 0 0 0 0::: tO a. � I 0::: tO w 0 � � 0 a. (.) 0::: b w ...J w 0 0::: 0 >- :I: April 7th, 1961 Page 1713

(Mr. Roblin, cont'd. ) ••••• brings to over 28 1, 000 the system owned telephones in operation in the Province. Long distance traific increased 7. 3 per cent last year with over 7 million mes­ sages being handled. Also during 1960 , another 10, 000 additional miles of long distance mes­ sage circuits were established for land line and radio carrier systems. Capital investments by the Manitoba Telephone System for this expansion in plant and equipment during 1960 totalled about $10 million with a $16 million investment planned for 1961-62 .

Subscriber dialing for long distance calls and the early conversion of all Manitoba services to automatic dial opera­ tion are examples of our modernization programme . The expansion in power transmission and telephone communications networks during .. 1960 was supported by growth in basic power output. The Southe rn Manitoba Power System of The Manitoba Hydro-Electric Board produced over 3.4 billion kilowatt hours for an increase of 5 per cent over the previous year .

Another 70 million kilowatt hours from Kelsey in the Northern System brought total output for the Province in firm energy for 1960 to nearly 3. 5 billion kilowatt hours - about 7 per cent above 1959 . Two generating stations under construction during the last several years - Selkirk and Kelsey - were brought into commissi on in 1960, adding 284,0 00 kilowatts to the total capability of The Manitoba Hydro-Electric Board. Construction work for the new generating station at Grand Rapids will create an installed capacity of 335, 000 kilowatts by the latter part of the 1960's.

A.value of some 8. 6 mills per kilowatt-hour was placed on all electrical energy generated during 1960, for a total value of electrical contribution to the Province and its econ­ omic growth now approaching some $33 million. At the end of the last fiscal year the value of facilities under the control of The Manitoba Hydro-Electric Board had increased by nearly $30 million over the preceding period. A substantial part of the Province's major effort in development of our economic resources has been represented by the work of The Manitoba Hydre-Electric Board.

Its capital programme for the next fiscal year will not fall far short of $30 million in addition to that which is being spent on form er Power Commission account. By these major developments we have continued to build the support for new industrial expansion in a diversified range of activities throughout Manitoba. The Manitoba Hydro-Electric Board and The Manitoba Power Commission are now one­ a step designed to provide the most effective and economic administration of the power resour­ ces in this Province.

IDGHWAYS The provision of adequate and efficient highways, roads and streets must also be consi­ dered one of the prime prerequisites for economic advancement. During the last fiscal period, the Province continued its programme of development and improvement in the Provincial high­ way system and, through aid to local governments, has supported the continued improvement and expansion of municipal road systems. Some 840 miles. of major highway construction will have been completed by the end of the 1960-61 fiscal year .

A furthe r 1,0 45 miles of subsidiary wor k will also have been completed during the period to bring the total for · all types of road work by the Department of Public Works to nearly 1, 900 miles during the 1960-61 fiscal period. All work has been advanced with the improved standards of construction adopted by the Government. The Government has under review a major planning document - The Highway Needs Study­ prepared under the direction of the Automotive Safety Foundation, comprising acknowledged experts in this fi eld. This will provide a new basis for the Provin ce's highway programme in the futu re.

The report indicates that Manitoba's past highway programmes and policies have .proved seriously inadequate in giving us a road network satisfactory for 20th century standards. Its most modest proposal calls for a sustained investment over a long term of new road con­ struction, and particularly of road reconstruction on a sca le never before contemplated. The proposal calls for the expenditure of hundreds of millions of dollars . These recommendations put our long term road building plans in an entirely new perspective and create new problems of finance and of policy.

OTHER RESOURCE PROGRESS The mineral industry in Manitoba maintained satisfactory levels of activity, in explora­ tion, development, and production, in 1960. Page 1714 April 7th, 1961

(Mr. Roblin, cont'd. ) ••••• Shipments of zinc ore from Chisel Lake to the smelting plant at Flin Flon co=enced last year . Development continued at the copper mine at Stall Lake . Pro­ duction of nickel co=enced at Thompson where the refinery is expected to be in production during 1961 in the only fully integrated nickel-producing operation in the world. All stages of production, from mini.ilg of crude ore to casting of refined nickel, are to be carried out at a single plant site. The estimated value of total mineral production in Manitoba in 1960 was slightly higher than that for 1959.

Increases in metallic and industrial mineral production more than offset a decrease in oil output. The most notable increase in output was shown by zinc, as a result of shipments from the Chisel Lake mine. Silver output increased in 1960 and lead was produced for the first time in Manitoba, both being found in the Chisel Lake ore. As the nickel-producing operations at Thompson are expected to enter full-scale produc­ tion in 1961, the present year should witness a notable increase in the value of metals produced in Manitoba.

Production of co=ercial fish reached 31 ,0 49 , 100 pounds -- above the ten year average of 30, 850 ,0 00 pounds . The 1959-60 season's fish production was marketed for over $6 .5 million as compared to the previous year's production value of less than $6 .3 million. Two modern fish processing plants were started during 1960 - one at God's Lake and one in Winni­ peg, adding stability to the industry and helping to improve the quality of the product. The Government continued its fisheries research progra=e to gather the necessary information for better management and utilization.

Sport fishing continued to attract tourists to the Province. The general level of wild fur production was up from the previous year and prices on some species showed marked improvement. Production of pelts on fur ranches also increased considerably and the average value per pelt rose as well. The value of Manitoba's primacy forest production for 1960 has been estimated at $21 million- up $2 million from·1959. Timber production increased by 31 per cent over the previous year with the favourable logging conditions in the past season as compared to unfavour­ able conditions in the previous year or so.

Newsprint production dropped slightly in 1960, but the production of pulpwood increased by 42 per cent. The operation of two plants producing asphalt shingles and wallboard has broadened an outlet for pulpwood, particularly poplar. The new particle board plant now under construction at Sprague will consume considerable quantities of poplar too small for lumber production and otherwise largely waste. The Government is continuing its programme to develop recreational areas throughout the Province .

The extensive use of these facilities by residents and tourists alike indicate the public's satisfaction with the quality of services provided. CONTINUING SUPPORT AND DEVELOPMENT OF HUMAN RESOURC ES Our policies for human betterment are proving themselves more and more as the prog­ ·ra=es grow ana develop. ·T he.reforms in education, the expansion in technic·al training and instruction, the development of university facilities at Winnipeg and Brandon - these advances speak for themselves.

Our allied policies in the fields of social welfare and health are also meeting the needs of our people with increasing effectiveness. EDUCA TION With two full years now completed under the school division plan, we are able .to report outstanding progress in the new programmes and facilities. During the 1961-62 fiscal period we plan to spend, on education, a total of some $37 .1 million. This will require 35.0 per cent: of the Provincial revenue as compared to 28 .4 per cent for education three years ago . The 1961-62 educational expenditure represents an advance of $12.9 million or 53 .3 per cent since 1958- 59.

Our investment includes support for libraries, research, vocational training, special education and all of the other demands of educational development from public school to univ­ ersity. For the past two years the new school aid progra=es have been providing the principal means by which overdue improvements and extensions of local education have been advanced. April 7th, 1961 Page 1715

(Mr. Roblin, cont'd. ) ••••• Overall construction in the school system supported by the financial policies of this Government has reached a value of approximately $50 million in the period for which we have held office. This has provided some 2, 090 new high school rooms and their equivalents in every part of our Province , as well as about 1, 200 new elementary classroo ms. The new high school system is providing increased technical educational facilities in various parts of the Province, Funds for the commencement of the construction of a new Institute of Technology will also be advanced this year.

In addition to universi ty bursarie s and other stu.dent aid, we are providing the highest level of support in our history to the Univers it<; oi Manitoba and Brandon College . We urge continued interest of every individual private citizen for educational activities at every level throughout the Prov'.l.ll ce . There :s no more vital single aspect of our community life . Our continued succe ss and progre ss in this Province , in the national community, and in the wider affairs of the world community depend upon the way in which we help our children to prepare for the challenge s of life in the 20th century.

HEALTH The Repci1·t of the Manitoba Hospital Survey Board marks a milestone in our plans for giving good hospital care to our people . If adopted, its rec ommendation that $35 million of / new facilities be built in the next few years pre sents a serious problem in public finance. Though the Provincial share of the capital money needed is .only a part of the total sum, the effect of new construction on hospital operating costs · is indeed obvious when we know that each new bed is now estimated to cost $5 , 700 per year merely to operate .

While good hospital facilities are a nece ssity it is also clear that new sources of revenue will be required to pay for them if we are to deal equitably with hospital premium-payers in the low income groups , Oi:her health measures have been improve d over the past year, including the services rendered by the health units which have been expanded to cove r wider areas and increased population .

The new community mentR.l health service proposed for the coming year repr es� ents a deci.sive break-through toward better and more modem concepts of mei;t.al health cru·e, SOCIAL WELFARE The new social all owances programme in Manitoba introduced by tbis Gove r=ent and br ought into the first stage of its opera tion last year is giving a gratifying measuj:e of neces­ sary assistance to those in need and indeed it is being used as a,.,. example by other provincia J governments . Further development is proposed in the coming year.

The Province has also given emphasis to the provision of medical care to those of ouT population who have been unable to provide this ess ential in times of illn es s. Physical disloca­ tion as a social burden has been greatly eased through the "medicare" pro gramme. Over 15, 000 beneficiaries of social allowa nces received essential health services formerly denied them by economic circumstance s. The "medicare" programme now suppl ies medical and dental care -i ncluding eye gla sses, drugs and appl iances -t o those in need.

The co-operation and assistance of the professions concerned has aided greatly in making this programme possible . Among our conservation programmes for h=an reso urce s, the community development experiment is a special and urgent approach to the needs of our Indian and Metis citizens . Our initial placement during this year of community development officers in Grand Rapids and Norway House will be extended.

PROVT..NCIAL-MUNICIPAL CO-oPE RATION Throughout 1960- 61, to the extent that it has been pos'sible , the Provincial Government has continued to assist the municipalities in financing their es sential projects , The financial capacities of our local communities have continued to increase and local government in Manitoba faced 1960 with assessme nts value d at ove r $1, 070 million . Taxable resources available to Manitoba municipalities are now about double those of a decade earlier .

A notable contribution to the increased capacity of municipal government to meet its obligations and to provide extended and improved services has been the substantially increased Provincial support provided since this Government came to office two and a half years ago. For 1961-62, it is our intention to continue this high level of assistance for local development . Page 1716 April 7th, 1961

'r I (Mr. Roblin, cont'd.) ••••• This aid will take mM.lt forms. Support for local education is ex­ pected to surpass $26 .5 million in the coming 1u.:r !>$ compared to $1 5.8 million in 1958-59 . This is a more than two-thirds increase during .,�,�,"' term of office.

Local drainage and conser­ vation projects , local road work and welfare programmes have all received greater support from both Provincial programmes directly and through Prov'...ncial-Municipal co-ope ration un­ der which the P.rov:ince has assumed a greater share of the many co-ope rative undertakings in the field of health and social aid, These combined programmes of direct and indirect assistance to local development by the Province are approaching $60 million per annum.

In total , the impact of the Province's municipal support measuxes has been increased by $16 .6 million since 1958-59 - an average increment of $5 .5 million annual ly , In direct aid alone, over $9 million additional support has been made available to local bodies in the past three years as the direct grant totals have l'isen from $33 million in 1958-59 to $42 million estimated for 1961-62 , Mr. Speaker, for every dollar a-:�cruing to the Provincial Treasury today, we pay out over 50 cents in direct and indirect support of local government.

This is indeed a sincere re­ cognition on our part of the needs of our municipalities and we shall 611.-tend the policy just as far as we are able to do so. We will continue to meet, in these practical ways , the essential needs of local develop­ ment, while at the same time we confidently expect the continued constructive co-operation of local authorities in the development of Manitoba . DOMINION-PROVINCLI\L RELATIONS This year just past has been one of considerable activity in the field of inter-governmental relations.

While there have been disappointments, there have in turn been compensation. ! undertook to report to the legislature on this question and will now take this opportunity of so doing .. The pl·esent financial arrangements which are embodied in the Federal- Provincial Tax·­ Sh3�ring Arrangements Act of Canada, expire on March 31st, 19 62. It has been evident that some decisions would h2>ve to be taken dll:!:illg the fiscal year 1960- 61.

The most significant event of the period was the rasumption of the plenary discussions in July, 1960. -- _1\.nd I i.Dte:r­ ject to say that the statement that I made at that time v.1ll be tabled in the House,-- Manitoba's case was concentrated on the economic needs of the provinces and municipalities and their essential

part in the scheme of national development. We continued to lay emphasis on the just distribution of mutual revenue sources rod on the principles of high levels of equalization and stabilization. As well, we emphasized the need of a greater consideration for the capital needs of pl·ovincial and municipal governments and for more co-ordinated planning in the joint devel­ opment of our national wealth.

It was soon evident that the Government of Canada was not prepared at that time to set fm'th its own position on the question but left the clear impressio n, if in ge neral terms , that if the pro"l!inces wanted more revenue they must be prepared to raise it as they could, The conference adjourned on this note until October when it resumed its meetings "in camera" . On this occasion a suggestion was put forward by the Dominion Government to which I found it necessary to object in the strongest terms.

First there was no indication that the Federal Gove1""Il!Ilent was willing to consider any revision in the share of the rented tax fields to be assigned to the prov"mces, But even more undesirable to Manitoba was the proposal that Canada placed before the meeting for the "freezing" of equalization and for an ineffectual form of stabilization that would have prejudiced the whole basis of the fiscal relationships built up over th ese past 20 years. This was, indeed, a regressive step quite contrary to our best interests .

Our contention that any effort to "freeze" equalization at a specific amount was a denial of its basic principles, received the approval of nearly all the provinces. To convert the present equalization payments , which are automatically attached to the standard tax returns under the present arrangements, into some substitute form of stabilization assistance or to convert them into fiscal aid grants would be to reverse the direction which Federa l-Provincial finalcial relationships have taken since the time of Rowell-Sirois . That this change was unacceptable to Manitoba was made perfectly clear.

It remains the contention of this Government that no single concept in the field of April 7th, 1961 Page 17 17 ..

(Mr. Roblin, cont'd.) ••••• Dominion-Provincial fiscal relations is as important as that of equalization. It is the embodiment of economic and fiscal justice which we in Manitoba, re­ gardless of party, have demanded as a right -- not as a concession. As Honourable Members know, the Conference reconvened in late February. I am glad to be able to report that the formal presentation made by Canada at that time -w hich appears to be their final proposal - showed a real measure of appreciation for this Province's views. There can be no doubt of the improvement over the proposal of October.

As on February 27th, I read the Federal proposals into the 11Debate s and Proceedings" of the House, there is no need for me to repeat th em at thi s ti me . I can say, however, that the effect of these proposals continues to have our attention, for they are complex and will require extensive technical study before steps can be taken to bring them into effect through legislation.

In casting up the advantages and disadvantages for Manitoba of the Federal proposal, I think this much at least may be said: The decision to give the provinces a larger share of the personal income tax field - increasing progressively from 16 per cent to 20 per cent of the Federal tax over the 5 year term of the agreement - is a distinct improvement over the 1957 arrangement of 10 per cent and the subsequent modification in 1958 to 13 per cent . The new equalization formula has both positive and negative aspects .

It is to our advan­ tage , and we think generally right, that 50 per cent of the gross yield of provincial natur'al resource revenues should be added to the formula. It was obviously inequitable to leave this out of account when attempting to equalize revenue positions among the Provinces. In Alberta, for example , the per capita yield from natural resources in the-year 1958 was $9 8.5 2, while in the Province of Manitoba it was $4. 29, and in Prince Edward Island 23 cen ts.

On tbe other hand, the lowering of the equalization level from the average of the top two provinces to the Canadian average would, by itself, seriously impair Manitoba's position. However , the in­ clusion of a floor under the equalization calculation which would ensure that Manitoba would do at least as well under the new agreement as under the old, if the latter were extended , effectually preserves for us most of the advantages of the old system . The other provisions for stabilization preserve our present relative position in this respect.

Though the new proposal moved from a Tax Rental to a Tax Collection arrangement, the fact that the Federal Government has offered to act as our collector without charge is not only advantageous to the government ofthe-Province but should go a long way toward eliminating the nuisance of the form,-filling aspect of two tax systems . The Tax Collection arrangement also makes it possible for provinces to vary tax rates at will from the standard rates agreed upon. This freedom of action, used with realism and discretion, may prove to be necessary in the future .

In assessing the impact of the new proposals on the revenues of the Province, I have pre­ pared a table which I hope may give useful comparisons. The first set of figures indicates the estimated return to the Province under the original agreement of 1957 if that agreement had been extended for the next 5 Y!lar period and if there .had been, a 5 .. per cent ann ual increas_e in the Gross National Product.

The second set of figures indicates the estimate d income_ that would have been derived from an extension during the next five years of the agreement of 1957 as modified by the amendment of 1958 which increased our share of the personal income tax to 13 per cent. The final set of figures shows our estimate of what the new plan will produce over the same period and under the same circumstances . The projections in the table differ from the Federal data in that we have allowed for population change and have applied growth factors to the tax yields only rather than to the amount of the aggregate annual payment.

On the whole , I think it may be said that the new plan does Manitoba no harm at the pre­ sent, and in the later years of the agreement it is likely to do some good through moderately increasing Provincial revenues. The chart indicates that there is an increase of several million dollars to the advantage of the Province of Manitoba in the life of the new proposals as compared to the amended agreement of 1957 . And, of course, as compare d to the original agreement of 1957 , it is markedly superior in terms of its revenue yield to the Province of Manitoba.

It is, neverthless disappointing, and I say this frankly, that the Province is to receive no immediate increase in the new proposals as compared to tbe old agreements . Time will determine the wisdom of the significant changes from the path trodden these Page 1718 April 7th, 1961 /

"­ \ I HYPOTHETICAL PROJECTIONS* OF 1-!A:t<'ITOBAVS C:OHPARATIVE REVENUES UNDER TAX-SHARING ARRJ\IDEMENTS \IJI 'IH THE GO'iJER.NMENT OF CANADA 1962-63 TO 1966-67 . (Thousands of Dollars) = = = Original 1957 Agreement 10-9-50 Original 1957 Agreement As Amended 1958 13-9-50 New Federal Proposal 1962-63 38�31€! 41,605 41. 605 1963-64 1.;09234 43 ,403 43 .403 1964 -65 429246 45, 266 45 .300 1965=66 l.4,35 Ci 47:188 4S9300 1966-67 46, 576 49 ,236 51, 700 * Estimated by projection from 1960-61 Federal data on the as sumption of an extension of current population trends and approximately 5% annual rata of growth in the general economy.

These differ from the Federal projections in that they include a population increment. and escalate the tax yields only rather than the total annual payments. Source : Treasury Department. April 7th, 1961 Page 1719 - -

'tl � (D 1-' _,.

"" 0 � :;!. .... _,. p; 1-' "' 0> 1-' HANITOBA1S REVENUE UNDER DOlUNION-PROVINCIAL FINANCIAL AR.'l.ANGEHENTS* FISCAL YEARS 1957-58 TO 1961-62 ( Thousands of Dollars ) Revised Preliminary Percentage Estimate Estimate Change 1961-f-2 1957-58 1958-59 1959-60 1960-61 1961-62 over 1957-58 STA'IUTORY AND TAX-SHARING Rl!.'VENUE: Statutory Subsidy 2,032 2,032 2,065 2,054 2.054 Tax-Sharing Arrangement 32 ,350 33, 202 39,4 27 40,067 39,000 5o% Share of Income Tax on Power Utilit ies ___g � ____M --� ----lQ 34,443 35,2 80 41,537 42,148 41.,084 t 19 .3 -- -- --- - -- --- COST-SHARING CONTRIBUTIONS: Agriculture and Conservation 32 95 482 h02 2,395 Health 2,1 79 2,165 2, 784 3,5 61 3,h09 Hospital Services l - 4,734 11, 241 13,330 15,1 91 Welfare · 2, 588 3,5 50 5, 079 5,917 6�311 Vocational Training, etc. 321 347 465 671 ?16 Highways and Transportation 2,7 _27 2,791 2,"386 2,925 2,4 75 Natural Resources 111 223 407 263 260 Civil Defence � _g ---2..2. --1Z.Q _ill 7, 982 13;966 22, 919 27,239 30, 916 .;. 2'67.3 - TOTAL RECEIVED FROM l'HE GOVERNNENT OF CANADA 1 42,l�5 49,246 64,456 69,387 72 ,000 1- 69.? * Not includ ed in the tabul ation are amounts paid to municipalities in lieu of taxes on Dominion prope rty, and amounts paid as university grants • 1 Shown for calendar year ending nearest March 31 of fiscal year indicated , The 1958 amount is for the six months in which the l1anitoba Hospital Services Plan operated during that year. 'I.

(Mr. Roblin , con t'd. ) ••••• past several years . The Provinces must, I suggest, give these a fair trial. We hope that under the new arrangements fiscal co-operation will be maintained and improved. But we must continue to press for greater recognition of the important position of the Provinces and municipalities in the national economy. In order to give effect to the proposed arrangements for 1962 , further legisla tion will be necessary.

On the basis of our present information, it would seem that action will be :!.'equired before next September so that neces sary tax measures between the Provinces and Canada may be co-ordinated. This will mean _a special sess ion of the Legislature , probably in July, and I will inform Honourable Members of our plans at the earliest date possi ble. I also inform the House that proposals will be put forward at the same speci al sess ion by which we hope to relieve the present heavy burden of hospital premiums on the lower income groups among our citizens .

A welcome accompaniment of the new proposals was the expre ssed willingn ess of Canada to re-examine the bases of the shared-cost and conditional grant programmes. This we have urged , for while these programmes have been of undoubted benefit to Manitoba, as illustrated by the table attached, there has been a tendency for rigidity to develop. By a revision and perhaps a consolid ation process, we think their value may be greatly enhanced in the years ahead. It is interestin.g, Mr.

Speaker, to note that from 195 7-58 to the present fiscal year, tllase shared-cost grants from Ottawa have increased from $8 million to $31 mill ion, almost a four-time increase over that period. • ••••••••• continued on next page. April 7th, 1961 Page 1721 I

(M r. Roblin, cont 'd.) .•••• F1NANCIAL REVIEW While in many respects the post war years have been the best that Canada has seen, Manitoba has not shared in the national growth to the extent that would have been hoped. Various logical reasons for this have been advanced from time to time but the fact remains that , in part at least, Manitoba did not participa te because of an unwillingness of the inve stor, public and private, to accept the financial responsibilitie s of the future.

Not only did inadequate capital investment hinder the development of governmental services, but it was reflected throughout the whole economy in this lower than a,verage rate of growth. This situation we have set out to correct, directly and indirectly , and in the process, inevitably money has been invested in the pres ent and in the future of this Province .

I am be­ coming increas ingly confident of this future and I am satisfied that the results of these efforts in the field of governmental capital investment and through the encouragement of priv ate invest­ ment have had a great part to play in the development which is now beginning to be realized as a matter of important national interest. As the Financial Times of March 3rd, 1961, head- lined, "Things are humming in Manitoba" . .. . ....

"new facilities and industries '.ead the way to a balanced economy". -- And I suggest that this week's issue of the Financial Post is equally interesting to those who are ii'lterested in the progress over recent years of the Prov'..nce of Manitoba . -- PUBLIC DEBT Now we have been criticized that in making this omelette we have broken some eggs ; that in the process we have allowed the public debt to increase . Under the circumstances of the past I regard this as a completely necess ary development.

It has become popular in some circles to argue that a balanced budget on both capital and current account is the 'sine qua non' of go·1ernment finance - the 'best of all possible worlda'. For a mature economy, that view might have weig ht . But Manitoba's is not a mature economy. It is a developing one and no man in reason should suggest that we should impose on our people, our farms and our industries, onerous and dis couraging levels of taxation to pay today for the full capital costs of our economic and social development .

These are investment factors and we would no more feel justified in placing the full burden on our people at once than would a public utility be justified in raising all its requirements for future capital plant from its presen t consumers. What really cmmts is what you do with the money you raise . Whether it ·will pay its way directly or indirectly is the chief matter of concern. This has been our guiding principle and the one to which we have adhered to the best of our ability. The public debt, or indeed public investment as it really is, has grown.

I can only wish that it had grown sooner so that our people might have enjoyed sooner the fruits of that invest­ ment. The following table gives a comparison of the Public Debt up to the current time -- I'l l only give the final figure , Sir, because you can read the lengthy table at your leisure .

The net debt, as at December 30th, 1960 is $125 million-odd. -- Debentures Treas ury Bills Gross Debt: · Les s: Gross Debt for Self-Sustaining Purposes Les s: Sinking Funds and other Funds held for General Debt Retirement Net Debt: Page 1722 Comparison of Public Debt March 31st , 1959 $ 204, 026, 000 53, 000, 820 $ 257' 026, 820 196, 505, 238 $ 60, 521, 582 12, 297, 232 $ 48, 224, 350 March 31st, 1960 $ 253, 672, 000 64,9 60, 502 $ 318, 632 , 502 216, 092, 451 $ 102, 540, 045 10, 498, 143 $ 92, 041, 902 December 3 1st , 1960 $ 28 6, 892, 000 72, 414, 161 $ 35 9, 306, 161 223, 752, 76 3 $ 13 5, 553, 398 10, 37 1, 250 $ 125, 182 , 148 April 7th , 1961

(Mr . Robl in, cont'd .) ..... The ability of our economy to support this debt remains unimpaired . Despite our large programme of asset-crea ting improvements, the costs of interest and debt discount amortiza­ tion in the next fiscal year will only take just over 3 per cent of the total revenue of the Province . I do not think our ability to meet these charges can be called into question under such circum ­ stance s. As I pointed out in my last Budget address , the great bulk of our debt has been contrac­ ted for asset-c reating purpo ses, in great part sel f-supporting .

As of December 31st, 1960, the brea.l(down by purposes was as follo ws : --I'll not give the details of the table , Sir, but mer ely rema rk that by far the bulk of it is for Public utilitie s.

The rest will be obvious to the members as they read the state ment -- Purposes of Public Debt - December 31st, 1960 (Thousands of Dollars) Public Utilities Provincial Buildings Roads and Bridges Other Public Works Grants and Advances Unemployment Relief Dlll b� !Jir.;count $2 22, 389 J(l, 568 93, 244 4, 639 7, 747 11, 417 9, 302 $ 359, 306 Honourable Members will notice at once that the greatest part of this indebtedness has been incurred in financing the growth of our public utilit ies . These are an es sential part of our development and lay no burden upon the general funds of this Province .

We must remember that in the case of Manitoba, with the exception of City Hydro which is a customer of our Hydro­ Board, our powe:: and telephone utilities are Provincially operated and financed. In several other Provinces such capital is raised in substantial measure , not by the governme nt but at the private corpo rate lev el, :lltd is not reflected directly in the Provinces' financial operations . But the benefits are ours and we must accept the accompa nying respons ibilit ies . I do not be ­ lieve that the people of Manitoba would have it otherwise .

For information and interest of the House I include a statement compiled from official sources in the publi cation, "Canadian Government and Municipal Financial Statistics, Decembe r, 1960, " showing the per capita burden of net direct and gross direct and indirect debt by Pro­ vinces at March 31st, 1960: -- I shall not read the table , Sir, but I recommend it heartily to those who are interested in the relative burden of debt in the Province of Manitoba and other provinces, including some that are alleged to be debt-free .- - Provinces Per Capita Net Per Capita Gross Direct ·Debt Direct and Guaranteed Debt Alberta $ 22 .4 2 $ 154.8 1 British Col umbia 417 .3 9 Manitoba 102 .5 1 387 .79 New Brunswick 185 .8 0 435 .6 6 Newfoundland 137 .8 2 172 .6 0 Nova Scotia 211 .5 7 388 . 24 Ontario 163 .1 7 502.0 4 Prince Edward Island 313.75 279 .9 1 Quebec 35 .8 0 236 .5 6 Saskatchewan 52 .9 2 413.4 4 DEBT TRANSACTIONS The capital market in Canada has been one of the many vagaries in the past twelve months ;­ Interest rates for long term , high grade securities were at a level not reached since the early April 7th, 1961 Page 1723 11

(Mr . Roblin, cont'd .) ..... 1920's -i n January they reached about 6. 25 per cent. They fell gradually until mid-September to about 5. 50 per cent, but rapidly rose again to the level of the early Spring and at the year-end were around 5. 85 per cent . The following table summarizes our debt transactions of the past calendar year .

It has been the Treasu ry policy to borrow on a long term basis unle ss good reason for short term financing presented itself. --Again I will just summa rize the table by giving you the information that the net increase in net debt is in the order of $32 million over the past 12 -month period .- - Pebentures Issued Pebentures Retired Summ ary of pebt Transactions January 1st, 1960 - Pecember 31st, 1960. $ 62, 250, 000 24, 260, 000 Treasury Bills - net increase · Net Increase in Gross Pebt - Net Increase in Net Pebt � $ 37' 990, 000 15, 394, 959 $ 53, 384, 959 $ 32, 236, 456 Our capital programme for 1961-62 has been developed with the same considerations in mind as guided us in 1960- 61.

You will reca ll that these criteria as then stated were: 1. Is the proposed expenditure good in itself? 2. Can the Province afford it? 3. Will the-return on the investment compensa te for the costs involve d? Again, our public utility requirements form the greater part of our capital programm e. It is expected that the Hydro-Ele ctric Beard will be using about $24 million of the authority granted by Loan Act last sessi on as the Grand Rapids project gets fully underway .

To this must be added $6 . 5 mil lion for power distribution now to be included with the responsibilities of the Board as a result of the merging of the Power Commissi on with it. You have been asked to authorize $10 .6 million so that capital projects of the Telephone System may be proceeded with, as well as $1.4 5 million for the Manitoba Water Supply Board. These are substantial investments, but they are ess ential to the. continued developmen t of Manitoba. Their resu lts will be reflected many times over in the increased productivity and prosperity of our people .

They are all self-su pporting and place no burden upon the Con­ solidated Fund. The Minister of Public Works has outl ined in detail our capital programme for highways in the coming year . An additional authority of $18 million is necessa ry to enable it to be carried forward.

The Greater Winnipeg Floodway and other flood control and drainage projects will require additional authority of $3 .75 million; land settlement projects and resource and recrea­ tion developmen t will need a further $7 85, 000; agricultural research, $1 million;. and public buildin gs , including the initial funds for the new technical institute , $315, 000 . Under Grants, Loans , Advances , etc ., we will need to supplement our existing authority by $1. 8 million for the University of Manitoba, $735, 000 for Brandon College and $1 .2 million for hospitals and hom es for the aged.

These are all essen tial items for the cultural and social grovvth of Manitoba . Funds will continue to be made available for loans to our two developmen t bodies so that · they may continue to encourage and supplemen t private funds in the agricultural and industrial growth of this Province . We require authority of $4 . 0 million for the Agricultural Credit Corpora tion and $1. 5 mil lion for the Manitoba Developmen t Funds . These funds are showing their worth and it will not be too long, we hope, before they will, in substantial measure , be self-s upporting.

The Agricultural Credit Corporation will have $4.8 million available for loan in the next fiscal year . The Manitoba Development Fund will have $4 .2 million . It is our hope that the Manitoba Development Board will soon be successf ul in attracting private capital into the fields of business activity supported by the Fund. Page 1724 April 7th, 1961

(Mr . Robl in, cont•d. ) ..... As can be seen, these me asures involve a substantial programme of capital financing in the year ahe ad. While we would be more content if the general level of interest rates was lower and more stable , we have no hes itation in saying that the programme is one that is well within the financial capacity of this Province . It is a programme es sential to our continued prosperity and developm ent.

GUARANTEED DEBT Where a body under the control of the Cr own has a distinct entity and has access to its own sources of funds , we have , where the situation justified it, extended the Provincial guaran­ tee . This has in some cases covered interest alone , but more common ly both principal and interest have been supported. I think I should emphasize at this time that, where there is a clearly reco gnizable dis­ tinction in the function of a government agency from that of a regular government department and where circum stances warrant, a guarantee is an entirely acc eptable method of financing .

However, we should-be under no illusions that such borrowing does not constitute a charge on the assets of the Province whether it be as a Provincial debt or only as a contingent liability . LOCAL GOVERNMENT BORROWINGS I have referred on other occ asions to our proposals made in the interest of improving the ma rketability of local government secu rities . Without these or other aids, the proble ms in raising capital faced by loca l treasurers have been formidable .

Howeve r, by a process of conso lidation and co-o rdination and improvement of information sourc es, and by a general process of educa tion of the investor - conducted largely by The Municipal Board with the co­ operation of the Trea sury - a substantial improvement in borrowing experience has been noted. This has been particularly true in the case of the school divisions where a heavy pro­ gramme of capital financing has been necessa ry to support the rapid growth of facilit ies.

The Province has continued to support these securities where necessary, but in most cases local governments have been able to finance on their own responsibility . During the past year over $15 million of debentures have been so ld through government facilities for fifty-five local authorities .

Whereas in the early part of the year it was difficult, if net impossible , to get fil' m bids, and interest costs were very high, by September firm bids were being received on all issues and the rates, while still high, were much more reasonable . This is a good example of what a planned co-opera tive programme can do without centralization of control. SAVINGS BONDS Honourable Members will recall that the first issue of Manitoba Savings Bonds was offered to the public of the Province on March 20th.

The books on this issue were closed, after six business days, on March 27th, with applications totalling over $40,.8 00 , 000 received. The use of an investment security cash able at full issue price for raising provincial capital is a rela tively new development among Canadian Provinces. The public, of cou rse, have become familiar with the idea through nume rous Canada Savings Bond campaigns . We have been concerned that we did not seem able to attract any substantial volume of perso nal savings into provincial bonds .

For this reason we have had to rely to a very large extent on the big investor, the corporation, the trust, the insurance company, for our funds . Satisfactory as this is from a purely financial viewpoint, we have wanted our own people to have some greater direct financial investment in the development of their Province than they have had in the past . The Savings Bond issue just closed was for such a purpose , and it has effectively demon­ strated the faith of the people of Manitoba in this Province 's future.

Not only does this instru­ ment provide a substantial volume of necess ary funds for provincial developm ent, but it pro­ vides them directly from the savings of our own Manitoba people . At the same time the Savings Bonds provide for the small Manitoba investor a safe and rem unerative form of savings . This issue was a first venture for the Manitoba Treasury, and with the experience thus gained there seems no good reason why - under the right circumstances - April 7th, 1961 Page 1725 .. -

Statement of Guarantees Outstanding br Type of Borrowe� Guaranteed as to both Principal and Interest : Manitoba HYdro-Electric Board Hospitals, University and. Others Guaranteed as to Interest Only� School Districts Municipal Page 1726 March )let 1 1959 March 31st, 1960 $ 73.101 .8ZZ $ 94.925,4 00 $ 2,761,714 $ 6,436,1 00 2,863.100 3 . 437. 153 $ �.6�18� $ 2a873a22� $ 78,726,641 $104.828.653 December Jlat, 1960 $ 115,1 50, 000 �(127,140, 886 $ 6,045.925 3.276,128 $ 2z�22a022 $ 136.4 621932 April 7th, 1961

(Mr . Roblin, cont'd .) ...•. Savings Bonds should not be offered again to aid in financing the Province 's investment programme from the savings of the people of Manitoba themselv es ., I would like at this time to acknowledge the whole-h earted assistance and co-operation that we have rece ived from the investment, trust, and banking institutions throughout the Provi nce . REVENUE AND EXPENDITURE - 1960- 61 Revenue for the fiscal year just closed was originally estimated at $98, 395, 000 . Latest indications are that this estimate will be exceeded and that revenue for 1960-61 will be about $101, 65 0, 000 .

The main estimates of expenditure on current account for 1960-61 totalled $95, 382, 970 . Our latest estimate, which takes into account all anticipated expenditure, is $95, 150 ,0 00. This provides a surplus on current account of $6, 500, 000 which, in accordance with the authority granted in The Tre asury Act, will be carried forward into the next year as a stabilization mea­ sure . REVENUE AND EXPENDITURE - 1961-62 The Jlfrinister of Public Works has made available to the House that report of the inves­ tigating authoritie s who have conducted a survey and analy sis of our highway system .

It had been our hope that the great amount of construction and betterment undertaken in the last three seasons would have done much to overcome the accumulated need and that, in the future, our programmes could have been of more modest proportio ns . But the report indicates the neces­ sit-j for an entirely new approach to our highway needs and that we must be prepared to invest funds in our highway system for a good many years at a level beyond anything previously con­ templated on a continuing basis . This will be essential if we are to keep up with modern trans­ portation needs .

If we had been able to revert to. more modest capital expenditure s, we could have con­ tinued without additional levies on those who are the chief beneficiaries of these expenditures . But it is now quite clear that, on the level of road investment for the years ahead now called for by the report, the pres ent charges for road-use are quite inadequate and do not place the burden where it properly belon gs .

For this reason we propose to ask the Legislature to authorize an increase in tax, under "The Gasoline Tax Act", of 3 cents a gallon, that is to 14 cents, and, under "The Motive Fuel Users Tax Act" , an increase on road-use fuel (diesel) of 6 cents a gallon or to 17 cents. These changes bring Manitoba more in line with the rates in other Provinces - although our rates are still below some .

The following statement gives the rates as they are now in the various Canadian Province s: Province Newfoundland Prince Edward Island Nova Scotia New Brunswick Quebec Ontario Manitoba (Prop osed) Saskatchewan Alberta British Columbia Gasoline Motive Fuel (Diesel ) (Cents per Gallon) 19 19 16 16 19 19 18 23 13 13 13 18 .5 14 17 14 17 12 14 13 15 I would like to say a few words at this time on the proposed differential between gaso- line tax and the tax on motive fuel or diesel.

It has been well establi shed by research under­ taken in various parts of Canada and the United States that a considerable part of the increasing burden of highway costs , particularly that incurred through the necessity for extra-heavy con­ struction, is attributable to commercial traffic . The situation has been complica ted by the fact that, on a mileage basis , diesel trucks , which now contribute to a substantial part of this heavy traffic, operate at a much lower rate per ton-mile with respect to fuel. This has been recognized April 7th, 1961 Page 1727 -. -

(Mr . Roblin, con t'd. ) ..... in several Provinces and a differen tial tax rate imposed . This is shown in the table referred to . Minor change s will be made with respect to the tax on ce rtain cla sses of non-road-use diesel fuel on which the tax will be increased to 2 cents from the present 1 cent per gaUon, while airplane fuel which has been taxed at 1 cent per gallon when of a kerosene base will be taxed at 2 cen ts per gallon generally. Pr-ovision is being made for the reduction in tax on gasoline used in motor boats to 2 cents per gal lon.

This would otherwise have been subject to the full rate of 14 cents . There will be no change in the full exemption from tax presen tly extended to farm vehicles and machinery operating on the farm and not on public highways . The total revenue from the change s will amount to about $5 million in a full year . We, L!J. Manitoba, continue to live in a Province with one of the lowest levels of taxation in Canada .

The aforem entioned change s will not alter this situation. -- In fact, I might say, that the Province of Alberta and ourselves have the distinction of having the lowest tax structure in the country ; and they are the province with all the oil . For 1961-62 we have budgeted for revenue on current acc ount totalling $10 5, 773, 400 . While there are important increases in revenue , we are also faced with two substantial decreases from the levels anticipated for last year . This is a reflection of the peri od of less dynamic economic activity that we have experienced in the last year .

The more important increases anticipated are as follows: (

i) Gaso line Tax $ 4, 250, 000 (ii) Motive. Fuel Users Tax 695, 000 (iii) Transfe r of 1960-61 Revenue Surplus 1, 333 , 000 (iv) Water Power Rentals 165,0 00 {

v) Unemployment Assi stance Agreem ent 648, 000 (vi) Automobile & Drivers' Licences 1, 000, 000 The principal decreases are : (

i) Canada-Manitoba Tax Agreemen t $1 ,2 11, 000 (ii) Liquor Revenues 501, 000 I wish to make particular reference to payr,1ents under the Federal-Pro vincial Tax­ Sharing Arrangemen ts Act. With the continuing growth of the eco nomy, we have been able to rely with some degree of certa inty on a slow but fairly steady increase in returns . Generally, the prelim inary estimates of payments have been on the conserv ative side, but for the year 1960-61, due mainly to a fall-off in the taxable profits of corpo rations, we do not expect to have received the $40, 211, 000 that we originally estimated.

The most rec ent est imate and the one on which we were being paid was $38 , 252 ,0 00 -a drop of nearly $2, 000, 000 . In the Blue Book of Estimates for 1961-62, Canada has estim ated the 1961-62 payment at $39, 725, 000 . In view of the curren t forecasts of eco nomic activity I am inclined to take a slightly more ca utious view of the recovery in corporation profits - the principal factor which has affected the variation in payments of late . I am , therefore, estimating our return at $39,0 00, 000 .

EXPEND ITURE The current acc ount expenditure in the fiscal year 1961-62 is estimated at $103 ,8 56, 514 · of which $535 , 000 is chargeable to capital division. This is an increase of $8 , 473, 544 over 196 0- 61. . As the Legislature has already considered these items, there is no need for me to dis­ cuss them at length here , and in accordance with prev ious custom I will make brief reference only to some of the more important change s.

The main increases are in Agriculture and Conse rvation, $593, 915 - due substantially to the Province's cost in conne ction with the operation of the Crop Insurance Plan and the Agricultural Cred it Corporation; Health and Public Welfare , $1, 807 , 87 0 - the larger part of which is attributable to the higher costs in the Welfare Division due to heavier case loads and improved services; Attorney-Gene ral, $160, 898; Treasury, $123 ,9 85 - due particularly to the Page 1728 April 7th, 1961

.) (Mr . Roblin, cont' d. ) .. .... organizational grant to Metro Winnipeg of $110, 000; Mines and Natural Resources , $199, 315 - most of which is found in the Forestry Branch; Public Works , $1,6 31, 922 of which $1, 015 , 957 is in operation and maintenance of Government Buildings - due largely to the re-acquisition and acquisition of the Broadway Site properties and the open­ ing of the new Norquay Building; Highway Maintenance, Aids to Municipalities , etc., $17 8, 500; and charges to the capital division which amount to $328 ,5 00.

The Public Debt increase of $2,3 34 ,9 71 is a direct reflection of our capital investment programm es and is made up of an increase of $1 ,4 88, 160 interest and $928 ,9 88 debt redemption, with a decrease of $82, 177 in discount amortization . Labour is up $211, 423 - largely due to increased expenditure on Winter employment. Industry and Commerce shows an increase of $193, 448 which is mainly due to requirements of the Manitoba Developm ent Fund . An additional blanket amount of $650, 000 has been provided for the increase of one step in the salary schedules of Manitoba Government departmental employee s.

Public Utilities show a decrease of $237 , 844 which is largely accounted for by the elimination of the subsidy to The Manitoba Power Commission - now amalgam ated with The Manitoba Hydro-Electric Board. The Provincial Secretary will require $592, 158 less - minor increases being more than offset by the smaller current charges made necessary by the revision of The Civil Service Supe rannuation Act . The surplus on current account for the new fiscal year ending March 31 st, 1962 , is now estimated at $1, 91 6, 88 6.

It must have been apparent to the Honourable Members in their review of the expenditure programme in Committee of Supply that a great deal of detailed work is necessa ry by the Departments and by the Treasury Board itself before these propo sals can be brought forward. The preparation of Es timates commences in September for a fiscal year which does not even begin for several months , and involves a great deal of detailed forward planning and a modicum of plain, educated guess- work .

In times such as we are now facing, with the economy slowed from its rapid forward pace , the problem becomes even more difficult and skill and co -operation is at a prem ium . It is under such conditions that a Treasury Board proves its value . This year we have attempted more than ever to analyze programmes, to have departments examine them , and to demonstrate their worth so that our available funds may be put to their most effective use . In this process we have had the co-operation and understanding of all Departments .

Estimates are, after all, only figures on a bit of paper and unless there is a full appreciation of the prob­ lems and willing co-opera tion in spirit and in letter from all those who transcribe these figures into action, the efforts of the Treasury Board to control the expenditure of Government funds can be wasted and meaningless. As we improve our technique and as the understanding of · Treasury Board's functions grow , we feel that it will prove of increasing value in the govern­ mental process without in any way interfering with departmental responsibility.

CAPITAL SUPPLY The needs of this Pro vince for a continuing expansion of capital investment have again had our careful consideration. I have said earlier that it is my view that the creation of assets as a charge for the future is a neces sary financial approach in a developing economy . It is on that basis that our capital borrowing programme has been constructed. The Capital Supply estimates have had the consideration of this House . I do not think I need say more than that it is our view that the future of Manitoba requires that these pro­ grammes procee d.

That they are well within the economic capacity of the Province is evidenced by the high credit which this Province enjoys in the financial markets not only of Canada but of the United States as well. CONC LUSION In my Budget Statement of last year I noted that the theme of progress incorporated in my first Budget had been continued and strengthened. In this Budget, this theme of progre ss has been carried forward, but ess entially we are in a pe riod of consolida tion rather than one of rapid advance.

It is now more than ever es sential that we use the greatest prudence in deter­ mining our financial policies and this breathing spell may prove a valuable opportunity for April 7th, 1961 Page 1729

(Mr . Roblin, cont'd .) ..... considera tion of our c objective s. There can be no exc use ·for lack of confidence in the Manitoba economy nor in the future of this Province . Our own sound economic structure is of unquestioned strength, and it is on that that we must build. We will continue to crea te conditions in which investment will be provided with ev ery incentive . We have needs yet to meet, and we shall meet them . Prudence now, combined with foresight and energy, will ensure that pro sperity will follow with our continued growth.

The most ess ell.lt.:i.al condition for our progress is conf idence -c onfidence in Manitoba and confidence in ourselves . I beg to move, seconded by the Honourable the Minister of Education, that Mr. Speaker do now leave the Chair and the House resolve itself into a Com mittee to consider of the ways and means for raising of tb.e supply to be granted to Her Majes�;. Mr .. Speaker pre sented the motion . MR . CAMPBELL: I beg to move, se conded by the Honourabie Member for Carillon, that the debate be adjour ned. Mr. Speaker presented the motion and after a voice vote declared the motion carri ed. MR .

ROBL IN: Mr . Speake 1·, I beg to move, se conded by the Honourable the Minister of Industry :;.nd Commerce, that the House do now adjourn . Mr . Speaker presen ted the motion and after a voice vote declared the motion carried and the House adjourned until 2: 30 Monday afternoon. Page 1730 April 7th, 1961

FI NANCIAL ST ATISTICS April 7, 1961 . Page 1731 If' ..

PROVINCE OF MAN ITOBA ESTIMATED REVENUE 1960- 61 . I ( TAX SHARING AGREEMENT I C.!\NMA-MANITOBA 40. 9% \ 1 � ; \ #I f \ ,! ;q· \ hQI "' I Ati! ""� REVENUE BY SOURCE - REVENUE ACCOUNT - 1960-61 t!AIN ESTIMATES Source Canada-}�nitoba Tax Agreement Statutory Subsidy Government Liquor Control Commission Gasoline and Motive Fuel Users 1 Tax Tax on · Insuranca Corporations Motor Vehicle and Drivers l Licenses Minas and Natural Resources · Canada-Manitoba Unemployment Assistance Agreement. All Other 'roTAL Source: Treasury Department.

Page 1732 Revenue $ 40,211,000.00 2,054,000.00 14,500,000.00 15,780,000.00 1,3oo,ooo.oo 7,2 oo,ooo.oo 2,908,000.00 3,352,000.00 11 0�0 000.00 Percentage of Total Revenue 40. 9% 2.1 14. 7 16.0 1.3 7.3 3$0 3. 4 11.� 1 00, 0% April 7, 1961 .

/ PRO VINCE OF MA N ITO BA ES TIMA TED EXP ENDI TU RE ..,.. REVENUE ACCOUNT- AMORTIZATIOrJ OF _DISCOUNT" EDUCATI ON � 3. 7% 196 0-61 EXPENDITURE BY DEPARTMENT - rumNUE ACCOUNT - l96o-6l MAIN ESTIM.m!S Department :Eliucation Health and Public Welfare Agriculture and ConserV-ation Mines and Natural Resources H:ighwa.ys (including Highway and Related Aide to MUnicipalitie

s) other Public Works All other Departments fub1ic Debt� Interest Sinking Fund arA Debt Redemption Amortization of Discouut TOTAL Source: Treasury Department. April 7, 1961 . .. Ex:pendi ture $ .32,151,162.00 23,498,615.00 4,285,770.00 3,316,880.00 ll,809,985.00 2,781,507.00 12,190,860,00 1,128,042.00 3,347,522.00 872 627.00 $ 95,382: 97o.oo Percentage of Total Elcpenditure 1.2 3.5 .9 1oo.o% Page 1733

PRO VINCE OF MANITOBA ES TIMA TED RE VENUE 19 61-6 2 CANADA -MANITOBA TAX SHARING A�l'lEEMENT 36 .. 9'% - REVENUE BY SOURCE - REVE2i!UE ACCOUNT - 1961-62 MAIN ESTIYJLTES Source Canada-tBnitoba Tax Agreement Statutory Subsidy . Government Liquor Control Commission Gasoline_ and !l.otive Fuel Users ' Tax Tax on Insurance Corporations lDtor Vehicle and Drivers ' Licenses Mines and Natural Resources Canada-!l�nitoba Unemployment Assistance Agreement All Other TOTAL Source: Trea.e;ury Department. Page 1734 · Revenue Percentage o£ Total Revenue 36,9% 1,9 13.2 19.6 1.3 7.8 3.3 3.8 12.2 1oo.o % Aprtl 1. I9oL

\ PROVINCE OF MAN ITOBA ES TIMA TED EXP ENDi TURE RE VENUE ACCOUNT AMOAi(Z A TiON ZDUCA';'iON 32.3% !96!-6 2 EXPE.'lDlTURE :S! DEPARTMENT � REV'.i!:li'1JE ACCOUNT = 1961=62 }>l.AIN ESTlJ.il!:rES Department Education Health and Public Welfare Agricultu:r·e a.nd Conse !""'T&tion !-lines and Natural Resou rces Highways (:Including Highway and Rekted Aids to }fu.trl.cipaJ.itias ) Otihs:r Public YJorks All othe r Departmen·�s Public Debt� L'lt erest Sinking Fund and Debt Redsmpi:.icm Amor..:l.zatJ.on of Discount TOTAL Source; Treasury Depar...ment.

Ex.penditure $ .33,529,612.00 25,306,4.85.00 1, .• 879' 685.00 3, 516,195.00 12,001,645.00 4,221�769,00 12. 71'7,961. 00 2.616,2 02.00 4,276,510.00 790.450.00 Percentage of Total El":-oenditure 32.3% 21;.4 4. 7 30! � 100.0% April 7, 1961 . Page 1735

;;,o � ,_ '-l V> "' i 2: '-l ,_ '>!:> "' .....

REVENUE AND EXFEN DITURE -· Revenue Acc otmt - 1901-1961 Year Revenue $ 1901 (Fis cal Year Ending December 31, 1901) 1,0 0�. 653 1911 (Fis cal Year Ending December 31, 1911) 1�0454, 190 1921 (Fis cal Year Ending November 30, 1921) 9c8 00. 861 1931 (Fiscal Year Ending April 30, 1932) 14.6 31,.341 1941 (Fiscal Year Ending April 30, 19112) 19,,920. 813 1951 (Fiscal Year Ending J.larch 31 , 1952) 4S ,5 35 ,6 95 1957 (Fiscal Year Ending Harch 31, 195S) 80, 123/>15 . 1958 (Fisc al Year Ending �larch 31, 1959) 85,356,13 00 1959 (Fis ca.l Year Ending !-larch 31, 1960) 93,8 97,6 00 1960 (Fiscal Year Ending Narch 31, 1961) 98,3 95,0 00 1961 (Fis cal Year Ending }larch 31, 1962) 105 .7 7'3,400 i< Exclud es 1950 Flood Control and Emergency Expenditures <en' 113 P 9l�2,1123, 1 l•!ain Estimates , Source : Treasury Department.

"\ Expenditure - $ 988.251 4,0 029S26 10, 401.8 95 14.631,34 1 18, 151.981'\ 42,39 4,9 17* SO.l19, 247 81,615 ,122 85, 1\80,95 4 95,3S 2, 9701 103.8 56, 5141

� l:l. - --1 ,_. \0 "' ,_. Pl' � ,_. --1 "' --1 1901 PRO VINCE OF MAN IT OBA RE VENUE AN D EXPEN DITURE FISCAL YEARS 1901 -1 96 1 . (RE VENUE ACCOUNT) REVENUE 0 EXPENDITURE 19 11 1921 1931 1941 11 0 100 90 80 70 � 't 60 ::l <:) <:) l:5 50 11) � � .... 40 :::! :a; 30 20 10 0 1951 1958 1�59 1960 196 1

P.? cm � --.1 CJJ (X) � :::!. ...... ·- 1 r ...... '!) a­ ..... APRIL 30 1946 GROSS PUBLIC DEBT � MANI'WBA HYDRO-ELECTRIG eo�RO � MANITOBA POWER COMi\CIS$10� @ MAriiTOBA TELEPHONE; SYSTEM � ALL OT"ER DEBl' RETIREMENT FUNDS Gitiif; SINKING FUi\!Di RE1UTILI1'1ES B ALL OTHEA PROVINCE 01� MAN�TOBA PUBUG DEBT MARCH 31 1948 MAFWH 31 1950 MARCH 'Sl 195!� MAt!GH �I 1954 MARCH 31 !9'5S MARCH �i ISSFl f,JARCU 51 195$ !01AI1CH3l ISI60 OE'CEMSER 31 19GO �GO 340 320 300 280 2GO 2'10 220 ::! 200� � I&O:S � 150 3 � 140 120 100 80 60 40 20 0 ;/··

"' 11 � e. ,;-1 ,_. \0 C]\ !'"' ;;,o � ,_. --.,J w Fr£q.J:c nru·r 111.P2�S�A':'I'J.O�m. C:.t.J:J�·D.lAR. Y€'(>'1.3. ·•.�!Du A�� .. . !J.fifl: :D!:�:§., .. Tlf�·h�� .YI'�Q�,§ Debant;ure' 3sr"bs l'erm. ____ . ..,. _..;,..,.--.- ... ... ... ......

Debentm•ea �·--· 7Q l yoalf' 7R 1 yaar 73 l yuor 7T t1 yea.:rB 711 �0 yea1·s 1'1 2 yf!aJ·a '7'1 l1J Y"""" 7X. 9 y'8ar-.1 7Y 19 Y'"'"" 7.Z 25 months S.\ 1 yea�· BB 20 yeaio;, 8C 29 months SD 1::1 �ear� .S E 2 yearrJ M:ls Retirements ' 4E 30 Y""1'S 5'i l-10 "'"'"'" 5K 1-10 yeal's 6lf 6 yeal'$ . 6Q 3 91! mortttfi 6W 24£ montlm 6Y 2 year•s 7}; 1� �·oo:ra 711 llm o11 ohrc 7L ll mon'r.iw 7!1 1 year NET HI CREASE - llEBIDlTUJ.lliS g Data o:t .I8 �n�r; ..,_ .. ---=- h•.._ ....... .. �-�....- tTo.n,. 13<> 1960 F'"l ' , 1, ww Ft:;b ., li 1960 ApK·\l :tr l9EO A!H"il 1.; 19dJ Jlpr·:::.l 1.�, 1'760 J�pl'"il 1,; 1960 Juno 10 196D J-:m.l'-l ls l96Zi Ju..

"1.13 ! ... :!.960 Jur.�e JO�. 1S·6V Ju.ly L,, 1960 Aug., :c, 1960 Nov . 1�:. 19£,.[) Nov.:� 4., 1960 . !ipl:'!.J. l, 1930 ;�eh 'J �� v 1.9�10 ,")apt.c.J..'!� 1.9.50 Oot, 1, 195k, Sapt, ) , 1'i57 Auge. l_, 19�8 Sc�pt., ;,2.., 195(1 Ap1:il 1. ,, 1959 J:i �g\:1 11)/ 1959 Aug .. ll, 19.59 N�1't." d �� 11 1959 :.\�.t� ·:;f i'"..8 :Gu:{ ·�J�y �,..... ... ,.. � ..... . ,... .... .. ... ,_,,. ..... �, .. ,... . .... ,J.t::O.i!J � lb., '!.�tt�l }'eh.-; l.c; 1')6). I'd·�"' :L')6l Ar.�;·jJ 1S'6ll ;l!'l�il I y l�·BD fq;!::i'.'l 1� 1?02 Oi.. :t.J lj 1951 ��".)_'nO 'l, ).96"1 •JI.Ultl 1, 19'79 Jt:Jl.G JO D 1962'.

Jc:lle 30, 1961 ,;ul ,y 4�- 19130 Dec., .:H.t 1'962 1f&JI 1, l'jc\;! [':')1)'1 6, :�9.6:1 .:lp:·:- :U" 'l.[! lSV)O F·obi!, . .15r: 1960 Sop t,.,l5 :� 1960 O�t , 1, 1960 De1��? 15w 1960 Aug .. J.�) P :i9tiJ S�pt., 2-" 1960 0-.;t,o =�·D 1960 Jul:r· :l.l:J ll/6ti JEl�r llu 196-0 �()'i/"' 8[) :1960 � ...... ,!fl:[!�l� l-�11�� Issued (exclusive or ren.., . .al8) in 1960 Wmu Funded du!1.ng 1960 h:J provb\rd.a.1. cit.;&'�":J��t a\'lc"t r,;;;��"f.'!l.?J!:.�G.l debent\U"a iaeuee Issued prior to J'anuaey 1, 1960, �w:1 (") retired during 1960 (

b) funded du.rlng 1C)60 by pz•c'\r�ci.lJ. (:U:v.Ho:t !il!.nd c;;nrne.ut �-�[;d debenture inaulls !JET INCREASE •• 1 'llE.!!.SllRT BillS � NET INCREASE IN GROSS PUBLIC DEB'r .. - �----:::=.-=:- -"� NET l!l�'REASE IN NE1' l'UB"LTC DEBT ---- --- --=-= �--=: =� ��=�: e ... �.!���<_: Cai?D/.I.a Carinda Cal'!ade. &m adD. Canada Gt",.nr:.d� C"k!.nada Ca:..�"El.d.a. Canada Can.2.(•A �.at"JE',dr!. GUl"lE.l".ld G:;u-,acla Caru.dJl Cana .. tia C.a.rr.ada . .rx1� N� ·:.r,. Cea.:td.e C•rm.da Ce.nada CE.2�9.da ofk,nuda Cano.cta Canad:� :�anada.

Uannd!1 Canade .�1 2.00 2�:�00 2, 00 6.()1} 6�0C· .2,00 2o00 • �).p50 5.5 0 2"00 2.0' J j, OO .2,00 . 2000 .'2.00 ;.,;o 2.15 :?..75 ;3. 00 ,., oo 2.o00 2.co 2,.75 2ui),:}• :1,00 2,00 $ 63,89!!,550 =�?11.1.9 '::1 •. 26Jj 1,1,3J ,J;Jl -�El�� � 'i'!?J:E' V'alt"' -· --- �-. 2,000,000 2, 000,000 1,coo,ooo 1,925,()(.!0 13, 075/lOO 5,000, 000 1,' 750,000 l, uoo,or ,o 1.$,200,000 2,500,000 1,.ooo,ooo 5;ouo,ooo 3, 500,000 2,500�00;) _:....J,..QQQ..Q!: .Q lS:JO,OOO '-'30,0!. '0 300, 000 3, 000 ,000 2,ooo.ooo 7, 500,000 jt-OOJj)OOO 2,5l 'O,IJOO 2,o: o,ooo 13000.vOO J , __ .J.,..t.!lil ,.!:JQQ l,o,:t.o9 ,2t:t; _A.:.m..,Jlk Total ii 62,250. 000 _:?1:,,_260 ,QQQ $ ::'!7 '99\1, 000 .Ji, � lP 53.3!!4,959 ��� s 32,2;16, 45(,