Debates of October 18, 2006 (day 10)

Thank you, Mr. Speaker. My question this afternoon is for Mr. Roland, Minister of Finance, and it relates to the fiscal update statement that was presented to the Assembly at the start of our day. Mr. Speaker, increasing our surplus for the previous fiscal year from $18 to $36 million is a positive sign. Mr. Speaker, I'd like to ask the Minister if he could explain, in brief, how did this happen? I'd like to think that it was upon the wise counsel and prudent management that committee has provided to the Minister, but I will ask for his answer to what happened. Why are we coming up $18 million higher than expected on the good side of the books, Mr. Speaker?

Thank you, Mr. Braden. The honourable Minister of Finance, Mr. Roland.

Return To Question 114-15(5): Fiscal Update Statement

Thank you, Mr. Speaker. Mr. Speaker, yes, I'll have to say part of it is due to the fact in management of our budget as a government, Regular Members' advice, our own work as we looked at the fiscal environment we operate under and the numbers that have come in. We also end up dealing with some of the adjustments that come after the fact from the federal government on some of our corporate tax revenues, and that also has an impact on those numbers too. Thank you.

Thank you, Mr. Roland. Supplementary, Mr. Braden.

Supplementary To Question 114-15(5): Fiscal Update Statement

Okay. So to some extent it was a revision of federal transfers or payments or contributions, then, Mr. Speaker. Is any of this subject to clawback in future years, Mr. Speaker? This is an aspect of our formula financing deal with Ottawa that has caused us considerable disruption, so are we going to have to look at having any of this amount clawed back in future years, Mr. Speaker?

Thank you, Mr. Braden. Mr. Roland.

Further Return To Question 114-15(5): Fiscal Update Statement

Thank you, Mr. Speaker. Under the existing system that we are now under until the next agreement is signed -- and we expect we should have an agreement in place by the time the new federal budget comes around -- the interim formula financing arrangement we are operating under, we get to keep 100 percent of the revenues; or, if it slides the other way, we lose 100 percent. So in this case, there's no further adjustments to those numbers. Thank you.

Thank you, Mr. Roland. Supplementary, Mr. Braden.

Supplementary To Question 114-15(5): Fiscal Update Statement

Thank you, Mr. Speaker. How, then, does this $18 million surplus translate? What does it really mean for us here in the Assembly and for our communities and for the programs and the people that we serve, Mr. Speaker? Does this mean we will be able to look at some other options or some new options in initiatives or spending, Mr. Speaker?

Thank you, Mr. Braden. Mr. Roland.

Further Return To Question 114-15(5): Fiscal Update Statement

Thank you, Mr. Speaker. Mr. Speaker, this reference that we highlight the estimated surplus that we were targeting in the last budget reflects the previous fiscal year operations. So it doesn't have an impact on today's fiscal environment. It shows that through our final accounting and the measures taken and adjustments with the federal government, and those adjustments are not directly related to the formula, they're related more to the CRA, or Canada Revenue Agency, and how corporations file their tax and when those final adjustments happen there. So that's the impact. But the surplus we've identified for this year is something we're still working on. Thank you, Mr. Speaker.

Thank you, Mr. Roland. Final supplementary, Mr. Braden.

Supplementary To Question 114-15(5): Fiscal Update Statement

Mr. Speaker, does this mean we have $18 million in new funding that we can find some programs or some additional things to spend it on, Mr. Speaker?

Thank you, Mr. Braden. Mr. Roland.

Further Return To Question 114-15(5): Fiscal Update Statement

Thank you, Mr. Speaker. Mr. Speaker, because it refers to our operating surplus of our last budget, there is some impact in the sense that we book previous year's earnings or revenue into the fiscal year. As well, throughout the year we do adjust our numbers based on revenue indications we get from the federal government. In this case, this money is again for previous year's surplus situation. Our fiscal responsibility policy, for example in this fiscal year, requires us to hold a $30 million surplus to fund our capital infrastructure program. So that's what that money would get to use offset on our capital programs. So it's good in the sense we get to keep the program that was on the books. Thank you.