Debates of March 17, 2004 (day 2)

Mahsi, Mr. Speaker. Also to the matter of the budget, I would address a question to the Minister of Finance. On page 8 of the budget, Mr. Roland had a discussion there about expenditures and accountabilities and transparency. The sentence, if I may quote, says, “I am considering creating legislation that will establish accountability measures and debt and deficit limits to make our financial management transparent and open to public scrutiny.” I would like to ask the Minister to expand a little bit on this, Mr. Speaker, perhaps beginning with the idea of accountability measures. What would that add to the system that we have going now? Thank you, Mr. Speaker.

Minister of Finance, Mr. Roland.

Return To Question 19-15(3): Comments On The Budget Address

Thank you, Mr. Speaker. Mr. Speaker, this is an area that we’re beginning to do some work on to look at what options of a fiscal responsibility legislation that we could bring forward for Members. That’s why it’s worded as it is. We need to work with the Members to see what would be acceptable. Things, for example, like what the actual interest bite is -- as the terminology that's used -- or repayment of a debt would be highlighted in the budget, what type of debt that we could actually incur. One of the concerns we have is with our structural deficit that we find ourselves in is not to get into a debt that is paying for operations and maintenance costs, but more for infrastructure investment in that sense. We’ve highlighted that. We will be looking to do that. For example, on highway infrastructure dollars that the federal government has put on we’re going to match. Those are the types of things that are starting. One is the total debt limit, what type of debt we can get into, how we account for it, and the five-year plan where at the end of a process of five years you have to come back to a balanced budget situation. Thank you.

Supplementary, Mr. Braden.

Supplementary To Question 19-15(3): Comments On The Budget Address

Mr. Speaker, those are all measures that I would certainly welcome. I think the public would also. I guess I’m wondering though, in the system that we already have, to some extent that information is available. It might not be readily available, but I think we could supply it. I guess I’m curious, Mr. Speaker, when the Minister says he’s considering legislation, do we need legislation to govern those things in this Assembly? Thank you.

Minister of Finance.

Further Return To Question 19-15(3): Comments On The Budget Address

Thank you, Mr. Speaker. I guess the government can put measures in place through policy and through understanding. You can put something in place. We’ve done it, as you can say, through our fiscal strategy to balance the books by 2006-2007. So we’ve informally, in a sense, headed in that direction. To actually put things in place that are measurable, that people can say you are going to be measured to and held accountable to, it would be much more forward to put it in legislation that governments coming down the road would have to, if they’re going to change it, make changes in this arena on the floor that would change how it’s being impacted. It’s not an absolute, but it’s something that I feel, and in talking to my colleagues on Cabinet, we should look forward to bringing in and setting up something that would be clearly measurable by Members of this Assembly and by the public at large. That they can see that and they can see if, in fact, we are meeting the targets that we’ve set for ourselves. Thank you.

Supplementary, Mr. Braden.

Supplementary To Question 19-15(3): Comments On The Budget Address

Mr. Speaker, I would wholeheartedly endorse the idea that we would be able to demonstrate results against objectives for the money that we spend. The final question that I’d like to ask, Mr. Speaker, is where the Minister says he’s considering creating legislation, what kind of a mechanism does he envision for determining if that’s needed and then what kind of time frame for bringing it forward? Thank you.

Minister of Finance, Mr. Roland.

Further Return To Question 19-15(3): Comments On The Budget Address

Thank you, Mr. Speaker. Mr. Speaker, as the process is set up now we would do further internal work and then I would present my Cabinet colleagues with information to see if, in fact, that is the right course we’re heading on, and from their input either go back to the drawing board or make some changes. If once accepted by Cabinet it’s good enough to go to the next stage, then we would go to the Members of the Assembly through the committee process to have their input if we’ve got it right in the legislative proposal process. Then it kicks off, as the Member is aware, through that process. Thank you.