FULFILLING THE PROMISE OF CONFEDERATION

Mr. Speaker, this year we celebrate our 50^th anniversary of Confederation. During the last half century, we have made tremendous progress. Health care, educational opportunities, roads and other public services have all improved and expanded. Employment and incomes have grown beyond all expectations of 50 years ago. This budget demonstrates our commitment to fulfilling the promise of Confederation and strikes the necessary balance between the need for services and fiscal responsibility.

This budget is an example of the sound, prudent fiscal management we have instituted over the last three years. Because we have managed prudently, we have exceeded our financial objectives in each of these years. This has allowed us to defer to future years certain revenues due from Newfoundland and Labrador Hydro. The amount of revenue deferred to 1999-2000 is $82 million, of which $52 million is being deferred from 1998-99.

After taking this deferral into account, and recording an increase of $198.6 million in net revenues, we were forecasting a surplus for 1998-99 of $136.9 million. We have chosen to use $132.6 million to pay off debt, prepay expenses, make strategic investments and cover other requirements, and will end the year with a surplus of $4.3 million.

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