March 22, 2000
(Finance)

Budget 2000: For The Health of Our Economy, For The Health of Our People

Finance Minister Lloyd Matthews today delivered Budget 2000, which focused on investment in health care, built upon the government�s Jobs and Growth agenda and addressed the special needs of the north coast of Labrador.

"This is a good budget which responds to the priority needs of Newfoundlanders and Labradorians," said Minister Matthews. "Again and again we have heard from the people of this province that health care is their number one concern. This budget makes investments throughout the health and community services system which will directly benefit the people who use the services."

A number of initiatives also arose out of the government�s Jobs and Growth consultations, as well as recommendations from the Premier�s Advisory Council on the Economy and Technology. Notably, the payroll tax exemption threshold has been increased to $400,000 annually, which exempts a further 1,300 small businesses from having to pay any payroll tax.

"Over the past three years, some 1,825 businesses have been dropped from the payroll tax roll," said Minister Matthews. "Small business is the backbone of our economy and government is pleased to be able to respond to their concerns by significantly increasing the threshold for the payroll tax."

Budget 2000 also unveiled the Northern Coastal Labrador Strategic Initiative which will see some $23 million invested in infrastructure in the northern Labrador communities of Nain, Hopedale, Rigolet, Makkovik and Postville. This initiative includes funding for housing, roads, water and sewer and community wharves.

Some highlights of the 2000-2001 Budget include

• $136 million in new health care spending committed by government this year;

• $54 million committed for new hospital equipment;

• Tuition freeze at Memorial University and College of the North Atlantic extended for an additional year;

• $15 million annually to allow government to reinstate more than 300 teaching positions for September 2000, despite the fact that the current method for allocating teachers could have resulted in a loss of 408 teaching positions;

• $1 million for the development of a new Newfoundland and Labrador history course;

• $3.5 allocated to a number of initiatives aimed at assisting small businesses access capital and markets;

• $2 million to continue initiatives under the Strategic Social Plan;

•  An additional $5 million for the Debt Relief Program to assist municipalities achieve financial stability;

•  $72 million for improvements to the Trans Canada Highway, major trunk roads and provincial roads;

•  Phase 2 of the Trans Labrador Highway, the road from Red Bay to Cartwright, will continue this year, at a cost of $56 million.

"Government must continue to manage its finances prudently and be careful in its spending," said Minister Matthews. "But at the same time, we must help those among us with the greatest need. This budget reaches that balance."

Media contact: Paula Dyke, Communications, (709) 729-0329.

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