Transparency and Accountability Initiatives

One of our Government's top priorities when we were first elected in September 1999 was to undertake an independent review of the province's books to address serious concerns we had about spending and accounting practices.

The review was conducted by the accounting firm Deloitte and Touche, LLP. It focused on the 1999-2000 and previous two fiscal years, and their potential impact on spending in 2000-01 and 2001-02.

One of the review's findings was that the Manitoba Government had to improve financial management and reporting practices to provide greater transparency and accountability. Since then, in consultation with the Provincial Auditor, we have taken a number of steps towards that goal. Recent initiatives include:

• Improving financial management by borrowing directly on behalf of health care facilities and the Manitoba Lotteries Corporation for major capital acquisitions. By taking advantage of the lower interest rates available to the Province, we have lowered overall costs for Manitoba. This change also provides for a more accurate disclosure of Provincial debt.

• Amending balanced budget legislation to introduce comprehensive debt repayment provisions. Without this amendment, the pension liability for public servants and teachers would have grown to over $8 billion by the year 2008. Under the new provisions, the pension liability will be fully funded by 2035, and General Purpose Debt will be eliminated five years later.

• Ending the inappropriate practice of recording transfers from the Fiscal Stabilization Fund as new revenue to create "surpluses."

• Prohibiting proceeds from the sale of a Crown corporation like Manitoba Hydro to be used to balance the budget or increase the Fiscal Stabilization Fund. In 1997, the government of the day used proceeds from the sale of the Manitoba Telephone System as general revenue, transferring almost two-thirds of that money into the Fiscal Stabilization Fund.

• Developing Manitoba's first-ever summary budget presentation, where the plans and forecasts of all government agencies and crown corporations are included along with the Budget of the provincial government itself. This new restructured presentation focuses attention on the results of all government entities, while still reporting on compliance with budget legislation and stewardship over the Operating Fund and Special Funds of government.

• Producing Manitoba's first annual report incorporating the results, not only for the operations of government departments as reflected by the Operating Fund, but also for the entire Government entity. The first Annual Report was released on September 28, 2001. The report reflects the following achievements:
  
  
  • A positive balance of $41 million in 2000-01 for Balanced Budget purposes which, in accordance with the Act, was added to the Fiscal Stabilization Fund.

• Significant progress in addressing health care issues.

• New resources for Education, Training and Youth.

• Protecting Manitoba Hydro, while providing among the lowest electricity rates in the world and new initiatives promoting energy conservation.

• A firm commitment to family services and housing. Funding for the Healthy Child Initiative was increased, and we have implemented the Neighbourhoods Alive! strategy.

• Increasing the Education Property Tax credit by $150 since 2000.

• A new provincial income tax system that is simpler and more transparent.

• Clarifying the descriptions of our financial statements and legislating a more timely release of the government's books, in accordance with the Provincial Auditor's recommendations. Our improvements in accountability and transparency have since been endorsed by the auditor.

• Strengthening the Provincial Auditor's mandate under a new Provincial Auditor General's Act which assures the auditor access to information needed to do his work.

I am proud of our Government's commitment to improving financial accountability and transparency in Manitoba, and of our accomplishments so far, and we will continue to explore ways to improve Manitoba's accounting practices.