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The following statement was issued today by Paul Dicks, Minister of Finance and President of Treasury Board. It was also read in the House of Assembly:

I rise today to commend the federal government for their announcement this morning that, beginning in 1998-99, the Canadian government will raise the cash floor of the Canada Health and Social Transfer (CHST) from $11 billion to $12.5 billion for the period of the existing legislation through to 2002-03. The CHST cash component will remain stable at $12.5 billion in 1998-99, rather than fall to $11.8 billion as projected in the 1997 Budget. In all, CHST will increase by about $3.5 billion over the three year period.

This is very good news for Newfoundland and Labrador. On the basis of current projections, Newfoundland and Labrador's CHST entitlements will increase by about $14 million in 1998-99, and $26 million over the following two years. There will be no new money this year.

The Government of Canada has taken many difficult decisions to help restore the public finances of the nation. The Government of Newfoundland and Labrador recognizes the efforts of the federal government to that end, and encourages them to continue to be prudent in their management. Today, the federal government is able to share the benefits of their fiscal progress by making a strategic investment into the Canada Health and Social Transfer. This is where the most pressing needs and concerns of Canadians lie.

Last week, the Premier met with the Prime Minister for a second time to discuss the challenges and stresses in the social, education and health sectors in this province. This announcement today is evidence of the Prime Minister's understanding of the issues as presented by the premier. The Government of Newfoundland and Labrador is pleased with the additional $66 million in CHST entitlements over the next three years. The money will assist us in meeting and overcoming some of the demands which currently exist in our social sectors, and, we will be responsible in determining how to spend the money.

Health, education and social services are vital to the well-being of our society. That is why during the 1997 Budget, we committed to extend the three-year commitment to stabilize funding in the health care sector to 1999-2000; we provided enhanced funding of $2.6 million to retain and attract physicians to rural areas; and we provided $7.8 million for a new hospital at Harbour Breton. We also provided $24 million to repay all school board debt, and half a million dollars for a Tutoring for Tuition program.

The provincial government is committed to the health, education and social sectors. Today, we see that the federal government also recognizes the need for extra cash in these areas. I conclude by once again thanking the federal government for making a strategic decision which will greatly assist this province.