INTRODUCTION: A New Future...A Renewed Pride

Mr. Speaker, a year has passed since I presented the first budget of this government under the leadership of Premier Danny Williams. It is my privilege to report that, while considerable work awaits our collective efforts, our government is on the right track. And we intend to stay the course and work together, more vigorously than ever before, to build a new future of self-reliance for Newfoundland and Labrador.

Our government entered office almost seventeen months ago with a mandate and a mission to end the giveaways and begin harnessing our resources in ways that will open up bright, new opportunities for individuals, families, employers and communities throughout Newfoundland and Labrador. In our Blueprint, we presented the people with an eight-year plan to build a brighter future.

However, what we inherited on day one of our mandate was a massive barrier to progress directly in our path: a staggering mountain of debt and financial obligations that exceeded the province’s fiscal means. Independent auditors and advisors, including PricewaterhouseCoopers, expressed serious concern that the province’s fiscal situation was unsustainable and very troubling. Our province was facing billion-dollar deficits that, within a decade, would have nearly doubled the province’s debt. Without significant decisive action, the situation would have only deteriorated, obligating the government to divert more and more of its limited resources from valuable programs to debt servicing.

Over the past year, through a combination of prudent spending and effective negotiating for additional revenue, we were able to not only enhance our social programs but also significantly improve our province’s fiscal situation. The challenges and choices were tough, but we faced them responsibly. The new agreements our Premier fought to achieve on offshore revenue sharing, equalization and health funding have fundamentally changed our circumstances for the better. As a result of the approach we have taken, Newfoundland and Labrador is in a far better position at the end of this fiscal year than when the year began.