ORAL QUESTION PERIOD

Budget--1996-97

Fiscal Projections

Mr. Gary Doer (Leader of the Opposition): Mr. Speaker, the government has truly rolled the dice in this provincial election, rather reminiscent of our previous Conservative leader, the Prime Minister, in terms of gambling with the public of Manitoba.

The government has put all the lottery money, $386 million, into this budget this year, which is made up of the $145 million from the Lotteries Corporation fund and $240 million approximately from the budget.

Given the fact that the provincial government will not have this one-time-only amount of money for the '96-97 fiscal year in its fiscal projections, I would like to ask the government: What are their estimates for that fiscal year?

Hon. Eric Stefanson (Minister of Finance): Mr. Speaker, it is an interesting question from the Leader of the Opposition, because when he finally became aware that there was some money in the lottery trust account last fall, he was the first one in Manitoba wanting to rush out and spend all of it. If we followed his irresponsible advice we would not have access to those dollars to be balancing our budget one full year ahead of schedule here in Manitoba.

He can look at the budget document. The budget document shows that in 1996-97 there will be a balanced budget here in Manitoba. There is also going to be a surplus in '97-98 and 1998-99. There is responsible legislation being put forward next week to ensure that that is abided to by the government of the day right here in the House.

I encourage him to support that legislation, Mr. Speaker.

Health Care System

Funding Projections

Mr. Gary Doer (Leader of the Opposition): The minister did not answer the question, but of course the Minister of Lotteries did not tell his old colleague from City Hall how much the $30 million was going to grow when he was out having his consultation meetings.

Mr. Speaker, the spending in this year's budget of 1.9 percent is still resulting in layoffs and reductions in services in health care, layoffs in Flin Flon, layoffs in Thompson, layoffs in The Pas, reductions in staff in the Brandon Hospital, layoffs at St. Boniface, and other layoffs that are pending, put on a pre-election pause.

I would like to ask the Premier: What are the funding forecasts for the '96-97 fiscal year, which has a spending freeze, '97-98 for health care in Manitoba? Are they going to implement all those thousands of cuts that they put on hold before the budget after the election?

Hon. Gary Filmon (Premier): Mr. Speaker, I know that the Leader of the Opposition can read because I know at his annual meeting he made a promise about capital markets that was contained within the capital markets task force that this government presented. That is fine.

He should read in the budget that the only reduction in health care is $8 million overall and it comes out of the agreement with the Manitoba Medical Association. They will take less.

Mr. Speaker, furthermore, this government spends the highest percentage of its budget on health care of any province in Canada at 33.4 percent. Furthermore, this government spends more than a half billion dollars, over $500 million a year more on health care today than it did when that group was in office in 1987-88.

That is the difference between giving a priority to health care versus the kind of lip service that is given by New Democrats and the kind of cuts that are given by Liberals in the federal government to health care.

Mr. Doer: Mr. Speaker, this is the only government in Canada that has socialism for the Winnipeg Jets and privatization to health care across the province of Manitoba.

One would expect with all the money they paid to Connie Curran and the 101 or 102 or 103 committees that they should look at their way of having a plan in health care.

Mr. Speaker, my question is to the Premier.

The government has not included an $87-million further cut in health, post-secondary and social services in the '96-97 budget, which they project to have a so-called balanced budget, zero deficit, losing the $145-million, one-time-only lottery payment and losing $87 million in terms of federal transfers to the health care system.

I would like to know from the government: What is the overall impact of the provincial government's cuts on health care that are projected for next year after the election and the additional cuts that are projected for the $87-million shortfall which is not in this budget and not before the people of Manitoba today?

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Mr. Stefanson: Mr. Speaker, what the Leader of the Opposition is referring to are the reductions in funding from the federal government for health and post-secondary education and family services. The reduction in funding from the federal government is more than just health, it is the post-secondary education and it is the family services.

He is partly correct that in the 1996-97 year we are reflecting the reductions that were outlined last year, some $60 million. At this point in time, we are not reflecting the $87 million. There are a series of avenues to be pursued in terms of that allocation, Mr. Speaker. One is to go back, obviously, to the federal government.

When I met Mr. Martin this week, I indicated we want a meeting as soon as possible to discuss their priorities and how they think provinces--not only Manitoba, because when I am speaking of that issue I am not standing alone for Manitoba. That is going to be the reaction of most provinces across Canada. But one option is to go back to the federal government.

We also are very modest in terms of our revenue growth for the next year, some 3 to 4 percent. We have the capacity to absorb more in that area. If our dollar strengthens, if interest rates improve, we have some room in that area. We are also setting aside $48 million into a Fiscal Stabilization Fund that we can utilize, Mr. Speaker.

But in the final analysis, let me be clear that we have shown consistently our priority for health, education and family services. As the Premier mentioned, we spend the highest percentage of our budget of any provincial government for health care, and we will continue to support those three main areas.

Mr. Doer: The minister has acknowledged, Mr. Speaker, that they are not building in the $87-million cut and the further close to $100-million cut in the further fiscal year in their three-year projections. In other words, this one-time-only lottery payment of $145 million is going to deal with just the next seven weeks, rather than the next three years, in terms of the province of Manitoba.

I want to table a Federal-Provincial Relations document dealing with Canada's social transfer payments and its impact on Manitoba. I would like to ask the Premier why the government did not build the impact of this budget into their own budget.

They have material now that says clearly that to achieve a $220-million accumulated saving from the Health budget, savings equivalent to one Winnipeg hospital and all hospitals in rural Manitoba would need to be contemplated for closing.

I would like to ask the provincial government why they have not built this into their budget projections. What are they going to do about this devastation?

We have already had enough cuts in health care, Mr. Speaker.

Mr. Filmon: Mr. Speaker, first and foremost, this government does not go and close hospitals wholesale like they did in NDP Saskatchewan. Fifty-two hospitals closed by the New Democrats in Saskatchewan, 7,900 beds closed by the New Democrats in Ontario--that is their response, that is not our response.

The fact is that we believe that there is a responsibility on the part of the federal Liberals to look at priorities first and foremost. We believe that this kind of unilateral reaction, in which they say the cuts to the lowest-priority areas, in their judgment, areas of health, post-secondary education and social services, are where they ought to take place, is absolutely the worst kind of thinking that we can imagine.

We would hope that we would have the support of the Liberals here in this Legislature, because not only does it affect health and post-secondary education, but nowhere in the federal Estimates do we find that $360 million that was supposed to be there for daycare enhancement.

Not only has that been wiped out completely, but we will have three years down the road $220 million less in our budget to be able to provide the level of services we currently have.

Hopefully, Mr. Speaker, we will get the support of the Liberals here in this Legislature to try and support us to get the money out of that slush fund that the federal Liberals have created.

Post-Secondary Education

Funding Projections

Mr. Gary Doer (Leader of the Opposition): Mr. Speaker, on the first set of questions, the Minister of Finance (Mr. Stefanson) admitted that he was ignoring these numbers, and now we have the Premier admitting that the impact is significant to the province of Manitoba over the next three years.

The government's own documents indicate that if the federal reductions are applied proportionately to health and education and social services, the province's grants to post-secondary education would have to be reduced by 17 percent or $40 million in the first year and by another 50 percent in '96-97 for a total of 33 percent, effectively doubling the tuition levels over the next two years in the province of Manitoba.

Is this the contingency plan and the plan of the provincial government to implement these cuts in terms of the students and future of Manitobans in the post-secondary education institutions?

Hon. Gary Filmon (Premier): Mr. Speaker, absolutely not. In fact, this budget calls for a 5 percent firm cap on tuition fees for students.

Further to that, what the members of the opposition ought to look at is the fact that in the course of the last seven budgets in this province, we have done our trimming and our reductions in all areas of government spending, and we have maintained the support for health, education and social services.

That is why, as a proportion of our program spending, those three budgets have gone from 66 percent to 72 percent. That is why we spend the highest percentage of any province in Canada on health care, and that is why we have increased our spending, both as a proportion of our budget and in real dollars, in every one of those areas, health, education and family services, because we believe they are our highest priorities and we will continue to keep them as our highest priorities.

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Mr. Doer: The Premier has not answered the question about how many beds, how many nurses are going to be cut to implement the federal-provincial budget. The Premier already has hot cuts going on right across northern Manitoba right now. The Premier has not answered what their strategy is. Is it the recommendation from his own departmental officials to double tuition fees in the next two years?

Budget

Impact on Child Poverty Rate

Mr. Gary Doer (Leader of the Opposition): I want to ask a further question, Mr. Speaker.

The government is also saying that the reductions in the Department of Family Services would be the equivalent of removing the entire daycare budget plus a 15 percent decrease across the board in income maintenance programs.

I would like to ask the Premier: What will be the impact on child poverty, which is already scandalously high under the Conservative government, if these kinds of cuts are implemented which are not built into the budget that the government presented yesterday in this House?

Hon. Gary Filmon (Premier): Mr. Speaker, it is an interesting question, because this is the government that has brought in the richest child tax credits for families living in low-income circumstances with children of any province in Canada.

That is why a family of four in low-income circumstances pays less tax in Manitoba than in any other province of Canada. That is why this particular province did that and it was voted against by the members of the New Democratic Party and the Liberals when they had a chance to support it.

Manitoba Lotteries Corporation

Revenue Projections

Mr. Paul Edwards (Leader of the Second Opposition): Mr. Speaker, what has become absolutely clear, in particular after yesterday, is that this government has built its economic agenda around rapidly rising gambling profits. In addition, the minister acknowledged just a few days ago that in excess of 90 percent of the people gambling in this province are indeed Manitobans.

What also became clear was that the conversion on the road to Reno started three years ago when they started building up that slush fund that they transferred yesterday.

My question, Mr. Speaker, for the Premier: What happens next year when the slush fund is gone? How will the government meets its financial projections for the next two years?

Is in fact, Mr. Speaker, their plan to double the revenues of gambling, which they are going to need to meet those projections?

Hon. Eric Stefanson (Minister of Finance): Mr. Speaker, at times I wonder whether the Leader of the second opposition party does any reading or does any listening.

He need look no further than the budget document that shows the amount of annual lottery revenue that will be brought into revenue each year, and it is $220 million. That represents between 3 and 4 percent of our total revenue base here in Manitoba, not saying that it is not a reasonable amount, but it is far from the most significant revenue source that we have.

If he looks at the medium-term projections, he will see that in two years time we are going to have a surplus of $201 million, and three years out we are going to have a surplus of some $350 million, providing all kinds of flexibility in terms of the decisions that need to be made at that particular point in time.

I would encourage him to take the time to read the document, to listen to what is being said and to understand the issues before he stands up and asks questions.

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Five-Year Plan

Mr. Paul Edwards (Leader of the Second Opposition): Pardon the cynicism, Mr. Speaker, of members of this Chamber and members of the public when they see that this government has consistently overpredicted growth and underpredicted the deficit. They have never been right.

Mr. Speaker, my question for the Finance minister or the Premier: If in fact they are not going to be increasingly relying on escalating gambling profits, will this government release today the five-year plan of the Lotteries Corporation, which is written, has been passed by cabinet and is sitting over there at the Lotteries Corporation office?

Will they be true to their word and release the five-year plan from the Manitoba Lotteries Corporation?

Hon. Eric Stefanson (Minister of Finance): Mr. Speaker, as usual the member is wrong again, a common pattern here in this House, because he knows again if he looks at the issues that are within our control, we have been right on target in terms of areas we control.

When you look at our expenditures, when we set our expenditure targets, we hit them. When we set our targets for our own revenues, we hit them.

The only areas where we have been off have been areas that are beyond our control. Those are transfers from Ottawa, where the extreme volatility has been.

This member as well, not unlike the Leader of the Opposition, when he finally did some review and looked at the Public Accounts and saw that there was some money in the lottery trust account, was another one who was out there saying, spend that money.

I think he said, I will spend half of it and I will apply half of it against the deficit.

Well, Manitobans told us, eliminate the deficit, stop the spiralling debt and get on with it, and that is what we are doing, Mr. Speaker.

Mr. Edwards: Mr. Speaker, the Minister of Finance says that even though they have used almost entirely gambling revenues to balance this budget, he says, oh, but we do not need them in the future.

I do not believe him on that, because they have never, ever been right about their projections of growth or deficit in this province.

My question to the minister: Will he release that five-year plan, and why not? What is he hiding?

Why will he not show Manitobans the five-year plan for the Lotteries Corporation and what his true intentions are for gambling in this province?

Mr. Stefanson: Well, Mr. Speaker, the Leader of the second opposition party says he is concerned about the future. He is going to get his chance to deal with the future.

We have a balanced budget, taxpayer protection and debt repayment legislation that we are putting before this House, and I hope he supports it. He is the one who is claiming, oh, I am supportive of balanced budget legislation, he says, but maybe once every four years. That is the kind of legislation he is talking about.

Well, if he is so concerned about the future of Manitoba and the future for our children, support the balanced budget legislation that you are going to get a chance to next week. Stand up and be counted.

SmartHealth

Royal Bank Contract

Mr. Dave Chomiak (Kildonan): Mr. Speaker, in December, in this Chamber and outside of this Chamber, the Minister of Health said, the Royal Bank computer deal would cost $100 million to the public of Manitoba.

Now we find the cost could be as high as $150 million. I hope the Minister of Finance is listening.

The last time we had a deal like this, all members of this Chamber and the province will know we paid $4 million plus $800,000 in expenses to the American consultant to save $65 million. Now they say they are going to save $200 million by spending $150 million with that great health care institution, the Royal Bank of Canada.

Mr. Speaker, my question to the Minister of Health or the Minister of Finance: Since health expenditures and total expenditures are frozen the next three years, where is the $150 million to pay the Royal Bank going to come from? What expenditures is the $150 million to pay the Royal Bank for computers going to come from?

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Hon. James McCrae (Minister of Health): Mr. Speaker, it is interesting this morning to listen to the Leader of the Opposition and then five minutes later to listen to the Health critic.

The Leader wants us to spend all kinds of money and the member for Kildonan has had an amazing conversion himself. Now he is complaining that we are not saving enough money.

In the area of health care, Mr. Speaker, you have to be extremely mindful of the requirements of the health system.

As the Premier has pointed out, at 33.4 percent, the highest level of spending in this country, we are placing our priorities where they belong, unlike what we are seeing in Ottawa and unlike what we are seeing elsewhere.

Mr. Speaker, the public health information system has been, is and will be driven by the stakeholders in the process. This is something the honourable member forgets to mention when he asks his questions.

The people involved in the multistakeholder advisory committee are representing organizations like the Assembly of Manitoba Chiefs, the Cadham Labs, the Consumers' Association of Canada, the Canadian Mental Health Association, the College of Physicians and Surgeons, emergency services, epidemiology, Healthy Public Policy programs division, Manitoba Association of Registered Nurses, the Manitoba Cancer Treatment and Research Foundation, the Manitoba Centre for Health Policy and Evaluation, and the Manitoba Medical Association.

Mr. Chomiak: Mr. Speaker, suffice to say the minister did not answer the question.

My supplementary to the same minister, perhaps the Minister of Finance, who must be just shaking in his seat thinking he has to pay $150 million to Royal Bank: Can the minister, any minister, tell us if the $150 million is going to come from more cuts to home care, more layoffs at hospitals, more fiascos like Connie Curran that this government has been into?

Where is the $150 million to pay the largest expenditure ever going to come from?

Mr. McCrae: Mr. Speaker, if the cost exceeds the contract amount, the SmartHealth people will pay the overrun.

In addition, we have the Manitoba Nurses' Union, the Manitoba Pharmaceutical Association, the Manitoba Association for Rights and Liberties, the Manitoba Society of Pharmacists, the Manitoba Society of Seniors and the Provincial Laboratory Committee.

Privacy is an extremely important matter and there is a committee to deal with that. Nothing happens without the approval of this committee. That is composed of representatives from the Consumers' Association, the Canadian Mental Health Association--

Mr. Speaker: Order, please. The honourable member for Kildonan, with your final supplementary question.

Mr. Chomiak: Mr. Speaker, I have just heard of another 65 layoffs at Seven Oaks Hospital, more layoffs in hospitals. We know more layoffs are to come. This minister reads lists instead of answering the question, which I will put for the third time.

In light of layoffs in hospitals, which we hear about again today, and in light of this government's cuts to home care and other services, where is the $150 million they are paying to a bank to develop computers coming from, more cuts to hospitals, more cuts to home care--

Mr. Speaker: Order, please. The honourable member has put his question.

Mr. McCrae: Mr. Speaker, the honourable member should have listened to the last answer. I said, any cost overruns will be borne by SmartHealth.

In addition, on the privacy committee are the Manitoba Association of Registered Nurses, the Manitoba Pharmaceutical Association, the Manitoba Association for Rights and Liberties, the Manitoba Society of Seniors and the Provincial Laboratory Committee.

These people are all very concerned that things be done right and so are we. Nothing happens without the approval of these committees.

* * *

Hon. James McCrae (Minister of Health): Mr. Speaker, while I am on my feet, may I respond further to a question raised yesterday by the honourable member for Kildonan?

Mr. Speaker: Was it a question taken as notice?

An Honourable Member: No.

Mr. Speaker: No, okay.

Mr. McCrae: Mr. Speaker, if the honourable member does not want to hear more about the--

Mr. Speaker: Order, please. If the question was not taken as notice--no, that is fine.

Recycling Initiatives

Beverage Container Industry

Mr. Gord Mackintosh (St. Johns): My question is for the Minister of Environment.

While Winnipeg consumers are paying 2 cents on every beverage container, plus PST, plus GST, for a service they may never get and have no say on the proposed body that manages monthly revenues of $400,000, we know that over $1 million has been forgiven the beverage industry for their failure to meet recycling standards.

My question to the minister is: Will he now today publicly release the complete amount that was forgiven the industry and confirm the amount is now roughly $1,007,000?

Hon. Glen Cummings (Minister of Environment): Mr. Speaker, the member puts a whole lot of misinformation on the record.

For him to indicate that there is any lack of progress in providing the recycling program to this city in particular, he should take a look. We now have 20 municipalities and cities around the province signed up. Every major city in this province, except the City of Winnipeg, now has their forms in to begin to receive funds from the program.

The City of Winnipeg is working through their system, which I would prefer had moved more quickly, but every Manitoban is going to receive free capability of recycling as a result of this program and I think he should stand up and support it.

Mr. Mackintosh: Well, Mr. Speaker, Coke and Pepsi got off while the consumers pay for a service they may never see, and nothing is free--

Mr. Speaker: Order, please. Question please.

Environmental Levy

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Mr. Gord Mackintosh (St. Johns): My supplementary question to the minister, Mr. Speaker: Manitobans want to know, why is this government collecting provincial sales tax on top of the environmental levy?

Hon. Glen Cummings (Minister of Environment): Mr. Speaker, the member opposite seems unwilling or unable to recognize, up until the statement that he just made about the fact that services do cost--nothing is for free, I believe is what he said a moment ago. A flash of genius on his part, I would say.

An Honourable Member: Totally unexpected.

Mr. Cummings: Yes, totally unexpected.

I presume then that when the member says that nothing is for free, he would also agree that a return deposit system costs three and a half to four cents to run. This program is the cheapest program in Canada that will provide free recycling to every resident of this city and every resident of rural Manitoba.

I truly, truly resent that that member would choose to portray that we have worked with industry to maintain recycling capability in this province in the interim when we develop what is one of the most unique and progressive recycling programs in North America when he talks about somehow, in his mind, that industry has not been paying its share. Industry is paying far in excess of anything that would have been levied in fines in this province towards the support of recycling.

If his attitude is, tax them and damn them so that they cannot function properly in this environment, then his party is going to suffer the consequences of not being able to provide recycling in this province.

Mr. Mackintosh: I still have not had any answers, Mr. Speaker.

Landfills

Government Policy

Mr. Gord Mackintosh (St. Johns): My supplementary: Given that the government refuses to take a stand against the proposed private landfill site at Rosser, following the City of Winnipeg's position that the proposal would kill any integrated waste management system and recycling for Winnipeg, is it this government's policy to expand private landfills at the same time it tries to introduce a recycling plan?

Hon. Glen Cummings (Minister of Environment): Well, Mr. Speaker, given that the last time this member confronted me on air, his comment on the recycling program was: I think this is a great program; I just do not like the way you are doing it--now he has switched gears and he wants to talk about landfills.

I am involved in continuing and ongoing discussions with the City of Winnipeg about their concerns in relation to the proposal in Rosser. We have had discussions at the Capital Region Committee about the impacts of regionalization and the concerns of people in the region, and we have also said right from the start that any concerns around safety are paramount to any issues that might be raised around landfilling.

I want to make it very clear that in the long run, before any decisions are made, we want to make sure that all aspects, protection of recycling and the enhancement of business opportunities in this province are the bottom line.

Balanced Budget Legislation

Minister's Salaries

Mr. Paul Edwards (Leader of the Second Opposition): One of the interesting issues yesterday that came out of the balanced budget legislation was the proposal that if there is a deficit, cabinet ministers lose a portion of their pay and so on and so forth, 20 percent per year. On the basis laid out in that document, this cabinet would already have lost 140 percent of their salaries.

My question for the Finance minister: Will it be retroactive? Will they be paying us back?

Hon. Gary Filmon (Premier): Mr. Speaker, I thank the Leader of the Liberal Party for that question. I thought that his concern was whether or not it would apply to the bonus that he gets from the Liberal Party.

Mr. Edwards: Interesting that the Premier should raise that, because this is the first budget in nine years that raises their salaries by 10 percent as a result of the Wally Fox-Decent report. Coincidentally, Mr. Speaker, after seven years in power they wait until this year when there is an increase to bring in a potential decrease for them.

I want to ask them: Is that 20 percent before or after they have given themselves the 10 percent increase?

Some Honourable Members: Oh, oh.

Mr. Speaker: Order, please. I am sure the honourable First Minister is quite capable of answering that question.

Mr. Filmon: Mr. Speaker, I find it really interesting that the Leader of the Liberal Party would raise this sort of issue when he knows that it was an all-party committee that made the recommendations that he voted for himself and that he would somehow try and make some cheap political gain out of an issue like that. It is so typical.

It is scraping the bottom of the barrel and he can have it if he wants it. He can stay down there and get anything else he can find down there too.

Mr. Edwards: The gimmickry in this budget is indeed scraping the bottom of the barrel, Mr. Speaker, which the Premier knows a lot about.

Mr. Speaker, my question again for the Premier: Why, after seven years in power--[interjection] That is true, the Wally Fox-Decent report, all-party, absolutely.

Why is it only this year that they decided maybe they should pay a penalty? Will the 20 percent deduction that they are setting up for themselves be before or after the increase which is in the budget?

* (1040)

Mr. Filmon: Mr. Speaker, as Manitobans know, after 20 years of running deficit budgets in this province, we have done a great deal over the past seven budgets to work towards the balanced budget. We have done it, unlike any other jurisdiction in Canada, without raising any of the major tax rates. We have done it by virtue of making a commitment to long-term stability, to predictability--[interjection]

Mr. Speaker: Order, please. You will hear your answer.

Mr. Filmon: --and to assurances, Mr. Speaker, that we would get to the point where we could say to Manitobans, we not only are able to balance the budget, but we want to pass legislation to ensure it remains in future.

We are going to put teeth into it to ensure that there are serious penalties to those who are in government and do not meet those targets. We are, as well, putting assurances in that the taxpayers will not have their needs ignored when it comes to the level of taxes, that they will have the right in a referendum to ensure that they could stop major increases in taxes.

Those are the kinds of commitments we believe are appropriate today, appropriate to what people expect of governments.

We believe in it and that is why we brought it forward.

Mystery Lake School Division

Budget

Mr. Steve Ashton (Thompson): Mr. Speaker, yesterday was the tale of two budgets. While the Minister of Finance (Mr. Stefanson) was standing in this House, the school district of Mystery Lake in Thompson was dealing with a shortfall of $1.8 million, equivalent to a 48 percent increase in property taxes. The school district opted for a 14 percent increase in property taxes and significant cuts and layoffs that will affect everything from special needs to technical vocational training.

I would like to ask a question of the Minister of Finance. Is the 14 percent property tax increase that residents of Thompson are to be faced with not a tax? Is this the minister's future vision for education and property taxpayers in this province?

Hon. Clayton Manness (Minister of Education and Training): Mr. Speaker, what the member is attacking is local authority and local autonomy. He is not attacking this government. He is attacking mainly the local school division and their ability or inability to deal with their budgetary matters in this year.

The provincial government has announced back in January that there will be $760 million that will be transferred to all the school divisions in the province of Manitoba. Mystery Lake School Division is obviously a significant recipient of that.

I know that there have been assessment changes. The property tax base there is deemed to be wealthier today as it was compared to other properties over the last three years. All this fits into that decision-making process that that local school division is going to have to embrace to make their final decisions. That is the way it is with respect in the other 50 school divisions in this province.

Mr. Ashton: Mr. Speaker, I am attacking the provincial government, which has cut funding for the school district of Mystery Lake 10 percent in three years.

I tabled a petition earlier today. The clear consensus in Thompson is, we are not being treated fairly.

I want to ask a question to the Minister of Finance (Mr. Stefanson) again, because in the budget there is a budgeted increase in mining tax revenues of $30 million.

What I would like to ask is: How can this government ignore the pleas of the community of Thompson to preserve our education system? How can it collect $30 million extra in mining tax revenue and cut our public schools by 10 percent in three years?

Mr. Manness: Mr. Speaker, I do not know whether the member opposite is a Manitoban or a Thompsonite. I do not know what comes first.

He knows full well that tax revenues in this province belong to all the citizens of this province. He knows that we do not designate funding and expenditure cents on the basis on which it was raised, either by tax or by geographical location. He knows that.

Mainly he should know that the sensitivity of the funding formula dictates that if you have a reduction in students or indeed if you have a payment, an average salary, a teacher wage that is higher than the provincial norm, then you are going to have higher costs associated with your division.

The formula reflects that, and the school division is going to have to take those matters into account.

Mr. Speaker: Time for Oral Questions has expired.