BUDGET BY THE MEC FOR FINANCE AND ECONOMIC AFFAIRS OF THE NORTH WEST PROVINCE - MJ KUSCUS


24 February 1999

INTRODUCTION

We are assembled here today to present the last budget of the first democratically elected provincial legislature in this Province. A budget, which ranks equally important as the first budget. The similarities of the two lie in the excitement of beginning and ending.

The question that arises is whether there is something to be excited about?

As we reflect for a moment on the path we’ve travelled one can without a shadow of doubt respond in the affirmative. For indeed our experience was an epoch-making one that irreversibly put this Province on the challenging yet exciting path of transformation.

The great philanthropist and Nobel Prize laureate Albert Schweitzer once made the following remark:

"I don’t know what your destiny will be, but one thing I know: the only ones among you who will be really happy are those who will have sought and found how to serve".

The ANC-led Government was mandated by the people of this Province to bring about A Better Life for All. To translate our goal into tangible reality we adopted a very bold and comprehensive policy position viz. The Reconstruction and Development Programme (RDP) whose key features include:

While we were continuously on a learning curve during this term, note must be taken of our successes in translating our policies into realisable services and benefits to our people. As we moved up the learning curve we realised that delivery of social services to the poor would bring about an immediate relief to the hardships brought about by the inhumane policies of the previous regime. The trends in our budgets have been reflective of this realisation, hence their bias towards social spending.

The budget is a powerful instrument through which Government can secure the wellbeing of the population in a balanced and sustainable manner. At the heart of the budget process lies the needs and aspirations of our people and not merely a quantification of figures.

Notwithstanding what our critics would like us to believe, the majority of the people in this Province have experienced and continue to do so, visible change in their livelihood. No other Government has ever performed in terms of service delivery to the poor and vulnerable sectors of our people like ours. Whoever denies this reality either does not live in this Province or is deliberately distorting the truth for cheap political point scoring. The figures are up for scrutiny.

ECONOMIC OVERVIEW

In 1998 the world economy has been dominated by the Asian financial crisis that started in 1997 in Thailand and quickly spread through that region, affecting almost all emerging markets world-wide through what has become to be known as the "Asian flu".

This crisis later extended to Russia and recently Latin America and had an adverse impact on almost all-emerging markets world-wide, reaffirming the strong inter-dependence of the world economies.

This crisis came at a particularly inopportune time for Africa, since Sub-Saharan Africa (South Africa excluded) has been growing vigorously at between four and five percent per annum since 1996.

As we approach the new millennium, in the words of Deputy President Thabo Mbeki, an African Renaissance becomes urgent. The volatility and unpredictability of our world financial markets and the inability of the global production system to create sufficient employment and scope for sustainable human development requires increasingly of Africans to foster their inherent ingenuity as creative entrepreneurs.

Whilst impressive, Sub-Saharan Africa’s growth performance is fragile and requires to be based on political stability as well as on an economic model that will deliver sustainable human-oriented development. In these requirements lies the true challenge to the African Renaissance.

The economic model which should be a product of Africa’s renewal should be one that allows for sustainable growth in resource-rich economies, creating employment also amongst the unskilled and low skilled, and reducing glaring inequalities in the global economy through adequately paced global integration.

If South Africa’s political leadership role in Africa is still to be determined, its economic leadership role is fixed and has been consolidated in 1998 by the efforts of South Africa to see 90% of interregional trade freed within eight years.

For North West province, providing a critical through-traffic and transportation chain in the East-West corridor from Mozambique to Namibia, this is an important development. Consider for instance that the border post at Ramatlabama handles more road and rail freight than any other border post in Southern Africa except for Beitbridge.

The North West Province had already begun to put in place the mechanisms to ensure that our people benefit optimally from this opportunity. Construction will start soon on the Platinum Highway between Pretoria and Lobatse and the Department of Public Works has completed a road master plan for the province. I can also report that efforts are at an advanced stage for the redeployment of Mafikeng and Pilanesberg Airports as trade and transportation hubs, which could generate over the long-term, with full private sector participation, substantial new job opportunities in the province.

PROSPECTS FOR 1999

The Asian crisis and other external factors contributed significantly to the slow growth of the South African economy in 1998. It is estimated that Gross Domestic Product (GDP) grew by only 0,1%, far less than our original target.

Governments’ internationally recognised sound fiscal and monetary policies, as contained in our macro-economic strategy, buffered the economy against the worst effects of the global economic crisis. In fact the sound fundamentals and our unwavered commitment to our policy objectives distinguishes us from other developing economies.

We would however, caution that given the deeply embedded structural defects that we’ve inherited, coupled with Government’s decisive policy interventions, though laudable by any standard, will not bring about quick fixes.

There are already encouraging signs of recovery reflected in some of the macro-economic indicators viz. a trade surplus in the last quarter, drop in private sector credit, liquidity in the money market and a subdued inflation rate.

As we face 1999 with new optimism, our greatest challenge is to become much more competitive in an increasingly global economy. The greatest causes of South Africa’s sub-optimal performance cannot be exclusively ascribed to incentive schemes and our tax regime. These we can and will address as the Minister of Finance’s budget speech last week indicated. More importantly it is the level of human skills, crime prevention and the ridiculous costs of transportation of our goods to international markets.

The concern about human skills has been a theme of all the budget speeches of the North West government to date. It is reflected also in the top priority that this government affords to education and skills training through support of entrepreneurship and small business programmes.

The economic costs and social repercussions of crime for nation building is taken very seriously by the North West government. Of particular concern is the security at our farms. In 1998 this government was one of the first provincial governments to convene a summit on rural conflict in an attempt to improve the security situation on our farms. In 1999 we will continue to ensure that our farms are safe havens and creators of jobs.

High transport costs is an impediment towards competitiveness. Most products from this province need to be transported more than 500km’s to markets or ports, and depend on freight transport. As a consequence road freight is overused, overloading of trucks takes place, putting an incredible burden on our roads and traffic. It costs more for a container of steel to be transported from Iscor in Vanderbijlpark to Durban, than for that same container to be shipped from Durban to Rotterdam.

The province intends investigating the role of transport costs in manufacturing in full depth in an extensive study together with the Potchefstroom University and the Free University of Amsterdam which will be funded by the Dutch South African National Programme for Alternative Development (SANPAD) organisation.

THE NORTH WEST ECONOMY IN PERSPECTIVE

It is appropriate, given the adverse competitive position facing South Africa in the global economy, to remind ourselves of the crucial development gaps in our province. North West has an unemployment rate of 37%, about 57% of the population lives in absolute poverty, and income inequality, with a Gini-coefficient of 0.67 which is amongst the most unequal in the world.

Despite many improvements in living standards over the past 5 years, effected mainly by significant reprioritisation within North West’s budget, we are still faced with vexing developmental challenges.

Firstly, the HSRC, using a labour market forecasting model, predicts an increase in unemployment in North West province to 43% by 2001. Even if the targets in the North West government’s strategy, North West 2001, are met (i.e. 5% growth on average) then by 2001 the unemployment rate will stand at 30% of the labour force. The decline in employment in commercial agriculture in particular is likely to decline further in the light of intensified mechanisation in the farming industry as commercial farms become more globally focussed.

Tariff reduction, part of the GEAR-strategy’s emphasis on trade liberalisation is likely to impact more negatively in terms of employment and output on those industries (e.g. textiles, clothing, food processing and metal processing) that are relatively more concentrated in poorer provinces such as North West. Three sectors dominate North West’s manufacturing sector, namely food processing, fabricated metals and non–metallic mineral products. These sectors have been artificially protected in the past and are now contracting.

Due to the above and the current concentrated structure of manufacturing, the likely impact of manufacturing growth on employment is likely to be small. The maximum effects that could be achieved have been estimated at around R700 million’s worth of projects if all the possible industrial projects around the Platinum Spatial Development Initiative are developed successfully.

As is well known, prospects in mining are limited and will possibly remain that way for the foreseeable future.

TOWARDS SUSTAINABLE DEVELOPMENT

Reconstruction and development will be achieved through the leading and enabling role of the state, a thriving private sector and an active involvement by all sectors of civil society which in combination will lead to sustainable development.

The question of public-private partnerships will be vigorously pursued by this Government. The coming year will therefore be the year during which the North West Government will accelerate the creation of an environment to consolidate this relationship.

Some of the following initiatives are worth noting as part of our new approach:

INVESTMENT PROMOTION

The inward investment efforts of Invest North West are reflected in the following milestones achieved during its short existence:

EXPORT PROMOTION

The Department of Finance and Economic Affairs has created a dedicated Export Promotion Sub Division, in order to promote products manufactured in the province internationally.

In addition, a Small Exporters Forum, representing all manufacturers and exporters of tourism artefacts, curios, works of art, traditional puppetry and the like is being put together in order to further expand the markets for the small exporters of the North West Province. Some of the members have already successfully participated in overseas trade missions.

SKILLS DEVELOPMENT

The Trade and Industrial Development Strategy identified the shortage of industrial and business skills as a major constraint to the development of industry in the province. In order to improve the skills base in our province, the following projects are being implemented

An Industrial Development

An international company, in collaboration with the Department of Finance and Economic Affairs and the Department of Education has identified an existing but under-utilised facility in Mafikeng, as a location to establish an

industrial skills development centre. Three instructors in technical and engineering skills are presently completing their training in Pune, India. Subsequent to the training, the first in-take of students will be completed during March 1999 so that the centre is opened on schedule on 01 April 1999.

Indian Scholarships for Engineering Skills Training

The Consulate General of India has agreed to award scholarships to candidates from the North West Province to participate in advanced training in engineering skills.

Five participants, each with a minimum NTC3 qualification, studied various courses in India during September 1998 and returned to the Province on 6 February 1999 to further their careers.

Jewellery Design and Manufacture

The North West Province is the second largest producer of gold in South Africa, and has an assortment other precious minerals such as diamonds.

In order to beneficiate these minerals, with international best practice, the Department of Finance and Economic Affairs, in collaboration with the High Commissioner to India, is presently engaged in discussions with various private sector organisations, among them the Mineral and Metals Trading Corporation of India, to facilitate the development and promotion of the jewellery industry in the North West Province.

The selection process will begin shortly for 10 citizens of the North West Province to begin training in Jewellery Design and Manufacture from 01 April 1999 in India.

North West Education Trust

This is another milestone in our pursuit towards private-public partnerships. The main objective of the fund is to generate funds for educational infrastructure and development in the North West.

The response of the corporate sectorhas been overwhelming with R5 million already raised.

SMME DEVELOPMENT AND PROMOTION

The strategy provides for various interventions that government must make to alleviate poverty and unemployment through SMME development. Some of our interventions include:

Entrepreneurial Support Centres (ESC)

The first entrepreneurial support centre was established in Mogwase at the Bodirelo Industrial Park. The second ESC is due to be launched in the Klerksdorp area next month and to be followed by the third one in the

Moretele area. This centre of excellence provides exciting skills development through incubation and mentorship in the manufacturing sector. This is a partnership between North West Government, Council for Scientific and Industrial Research and the private sector. The Mogwase ESC comprises a Technology demonstration centre and is currently incubating 32 small manufacturers.

SMME Support Training Programmes

The Department of Finance and Economic Affairs has numerous training programmes which are provided by the Small Business Advisory Bureau, Technikon SA and the Business Centre in the University of North West. The focus of these courses is in entrepreneurial development, management, financial and marketing management, tendering procedures, advisory skills and entrepreneurship as a school subject. The latter is offered to more than 200 schools in the province through Technikon SA.

Public and Private Sector Procurement

One of the most serious problems the SMME’s have is that of access to markets. This problem is linked to access to information and the ability of SMME’s to respond to tender documents. The province has a pilot of six Tender Advice Centres with an additional 8 due for completion within the first half of this year.

Access to Finance

The Department of Finance and Economic Affairs has created a specific fund provided for in the SMME development strategy viz. The Millennium Development Fund. The fund with a seed capital of R12 million has as its primary aim the immediate creation of jobs and poverty alleviation in rural areas as well as the redressing of imbalances in the sectoral biases.

The Millennium Fund is managed and administered on behalf of the department by the National Business Initiative. This is yet another hallmark partnership between the provincial government, private sector and local government. The fund provides for two important aspects of economic empowerment through job creation:

The establishment of manufacturing co-operatives for youth, women and the disabled.

Establishment of capacity building infrastructure for NGO’s, CBO’s, local government and similar institutions, which provide services to SMME’s.

The first pilot project took place in Vryburg in November 1998 within three weeks of the establishment of the Fund. The project involves the manufacturing of peanut butter, sweets and snacks. The co-operative employees 39 individuals and an additional 61 members are currently training.

PERFORMANCE REVIEW

SOCIAL SPENDING

As earlier indicated, this Government had to discharge its mandate within an extremely difficult economic situation.

Our commitment towards the realisation of RDP objectives has really been tested to the maximum. Whereas in other emerging economies the global financial crisis forced them to take swift action resulting in major reductions in social spending and an escalation in the unemployment figures, we were not side tracked by all these events.

We can boldly declare this afternoon Hon Speaker, that notwithstanding all the calamities in the global economic environment that led to a slowdown in economic activity, this government has not cut back on social spending.

In the budget presented today 78,6% is allocated towards social spending in education, health and welfare.

The allocation in education increased from R1, 830 billion in 1995 to R3,268 billion in 1999 an increase of R1,438 billion or 79% over a four year period. During the same period expenditure on health rose from R924,7 million to R1,432 billion an increase of R507,3 million or 55% while social welfare rose by R518,1 million or 59% from R879,9 million to R1,398 billion.

PHYSICAL INFRASTRUCTURE

A total of 23 703 projects of approximately R2 billion have been completed in the North West Province since 1994. These projects include 260 school building projects with a total of 1 652 classrooms, 175 special function rooms and 1 815 toilets. It also includes 2 754 agricultural projects in rural areas, 25 359 houses and 68 service projects (such as clinics) in rural, towns and villages.

It is estimated that in total as many as 1,2 million people benefited from these projects. In addition to the provincial projects, national departments and public entities are also engaged in physical infrastructure in the North West Province. Projects completed by these entities since 1994 include water supply to 450 000 beneficiaries, electricity supply to 120 706 households and 419 schools, 84 600 address boxes and 220 000 new telephones. In addition, 432 farmers were allocated land since 1994.

ECONOMIC SERVICES

Government’s role in the economy is to act as facilitator by providing the appropriate legislative, policy and institutional frameworks towards economic development.

Given the rural nature of the Province we see Agriculture as an important economic activity. A key programme has been our entrepreneurial development programme, which targets small farmers. Financial support in this regard increased from R66 million in 1995 to R101 million in 1999, an increase of R35 million or 53% over a four-year period.

Tourism is one of the fastest growing sectors in our economy with an increase of 21 % in visits by foreign tourists to our Province since 1994 and the creation of 18 000 jobs during the same period.

Our SMME Support Programme grew from R8 million in 1995 to R40 million in 1997 and in the current financial year stabilised at R15, 5 million.

FINANCIAL MANAGEMENT

In 1994 this government inherited a chaotic financial management environment, where books of account had not been closed for three preceding financial years and there was a huge budget deficit in excess of R420 million.

The accounting backlog has been cleared and books have since been closed timeously on an annual basis.

A balanced budget has been attained since 1996, indeed a remarkable achievement.

An Internal Audit unit has been established to assist departments in improving internal controls, systems and procedures.

FRAUD AND CORRUPTION

Since 1996 our Cheque Clearing Centre and the Forensic Unit have been highly successful in fighting fraud and corruption. Through these units we prevented potential cheque fraud of R15 million in the past two years and are in the process of investigating suspected fraud amounting to R44, 855 million. Of this amount investigation of R8,9 million has been completed and handed over to the Heath Commission for collection. VAT fraud amounting to R6, 113 million has been detected during investigations and handed over to the South African Revenue Services for collection.

During the same period 32 officials, including two chief Directors and three directors and six suppliers have been arrested on suspected fraud. Disciplinary action has been taken against 42 officials.

COST CONTAINMENT

This province pioneered a cost containment strategy, which is now emulated in some of the other provinces. To enhance this strategy, we have introduced a commitment system. This system allows orders to be placed only if there are funds available and has greatly assisted in limiting cost overruns.

CHALLENGES FOR THE NEW MILLENIUM

The success of any country depends on its ability to effectively design, implement and manage fiscal and economic policies. I’m convinced that with a solid track record of good financial management our standing in the market place will be greatly enhanced.

We cannot therefore allow ourselves to falter when we’ve already achieved so much. To remain on course the following issues will have to entertain our urgent attention:

WAGE BILL

In 1995 personnel cost made up 39 % of the total budget. It has since increased from R2, 485 billion to the current budget of R4, 760 billion in 1999, an increase of 48%. Personnel cost remains the single largest item in the budget and in 1999/20 stands at 61% of the total budget. It is obvious that something needs to be done in this regard, otherwise development expenditure will continue to be crowded out.

BUDGET REFORM

A budget reform process is in progress as part of our transformation drive. We are today tabling the second budget, which includes three-year spending plans – our Medium Term Expenditure Framework (MTEF).

For the first time we are also publishing the Medium Term Policy Statement which gives a policy base from which our spending plans over the next three years can be prepared.

To support the reform process, the Public Financial Management Bill (formerly Treasury Control Bill) is at an advanced stage of being finalised. This Bill once it becomes an Act will replace the Exchequer Act.

Key features of this Bill includes:

TRANSFORMATION OF THE CIVIL SERVICE

We’ve inherited a highly bureaucratic civil service that was not fit to deliver on the Government’s mandate. A lot has been done in terms of the regulatory and organisational framework in the civil service.

What is however important, is a radical transformation of the civil service to make it more enterprising and responsive to the public’s needs. We will have to invest in capacity building programmes to enhance efficiency levels in the public service.

To respond to this challenge each department had to earmark funds for training and transformation. Consequently an amount of R12, 7 million for transformation and R11, 8 million for training has been collectively budgeted by all departments for the new financial year.

The Batho - Pele initiative will be intensified at all levels of service delivery.

THE YEAR 2000 COMPLIANCE (Y2K)

The year 2000 compliance has become the world’s most serious challenge and one of the most expensive interventions in the computer industry.

The purpose of this project is simple, namely to make our computers and embedded systems to read the correct date on the first day of the year 2000.

We are at various stages of completion with our different systems and hardware. Our concern is currently with embedded systems, but we believe that we will meet the target.

The total cost of this project is R12 m of which R2 million was allocated in the 1998/99 financial year.

INFRASTRUCTURAL BACKLOGS

Whilst we hail the successes achieved in developing the infrastructure in the province our significant progress has been overshadowed by the huge amount of backlogs and the under provision for maintenance.

The asset base of the North West Provincial Government is valued at approximately R12 billion. In terms of internationally accepted standards, annual provision for maintenance should be 4% of asset base. This means that the province should provide R480 million for maintenance annually, a target we have not been able to attain. We cannot therefore continue to build if we cannot maintain.

MAXIMAZATION OF OWN REVENUE SOURCES

Locally collected revenue makes up 5 % of the total revenue requirement of the province. A study on revenue collection of the province pointed to serious gaps in our ability to collect revenue due to government.

Without increasing own revenue, chances of increasing capital spending are very minimal.

We must intensify the revenue project initiated in 1998 to ensure that we put structures and systems, in place in order to maximise revenue. This we will do in conjunction with national government as they have also initiated a revenue research project in provinces because of a concern of under collection.

THE BUDGET IN BRIEF

REVENUE BUDGET

There are two main revenue sources through which the budget is funded and these are national transfers and own revenue sources. Total revenue from these sources is budgeted at R7, 856 billion.

National Transfers

National transfers is budgeted at R7, 484 billion and is made up for:

Equitable share

R7,213 billion

Conditional grants

R60 million

Supplementary allocation

R211 million

National transfers make up 95 % of the total funding requirement.

Own Revenue

Own revenue is budgeted at R372 million.

We would like to announce the following increases:

THE 1999/2000 SPENDING PLANS

The North West Government adopted the following five key priority areas for 1999/2000:

All departmental spending programmes must factor in these priorities in an integrated manner with quantifiable outputs.

Total expenditure for 1999/2000 is R7, 856 billion, an increase of 3,7% over its 1998/99-expenditure level. It is evident that we will have to do more with a lesser allocation in real terms.

This expenditure is allocated as follows to the various votes:

Department of the Premier

The Department of the Premier has been allocated R75, 842 million for the 1999/00 financial year. Included in this budget is an amount of R4 million in respect of the Premier Community Support Programme and R1, 6 million in respect of our transformation projects.

The allocation is made up of R70, 550 million in respect of corporate services and R5, 292 million for Premier Support.

Office of the Legislature

Office of the Legislature has been allocated R29, 286 million for the 1999/2000 financial year. This amount includes R1, 08 million for constituency allowances.

Health and Developmental Social Welfare

Health

The allocation made to the Health component amounts to R1, 432 billion. This amount increased by R135, 5 million or 10, 5%. Taking into consideration the overall increase of 3,7% on total expenditure this increase is significant.

An amount of R40, 5 million has been set aside for development projects, particularly the building of health facilities.

Developmental Social Welfare

In the previous financial year R54 million was provided to successfully recover backlogs in social pensions for qualifying beneficiaries.

The amount allocated for social welfare is R1, 398 billion for the 1999/2000 financial year. The budget increases by R82, 6 million or 6,3 %; once again well above the overall increase of 3,7%.

With effect from 1 July 1999 social grants will increase by 4 % to R520.

Department of Safety and Security

The budget allocated to the Department of Safety and Security amounts to R5, 591 million. The budget includes an amount of R611 000 to cater for community policing forums.

Department of Tourism and Environmental Affairs

An amount of R61, 728 million has been allocated to Tourism and Environmental Affairs. The potential of tourism in our province is very high. To this end R33 million of the tourism budget goes to the Parks and Tourism Board to promote tourism.

Department of Finance and Economic Affairs

The budget for the Department of Finance and Economic Affairs amounts to R158, 175 million. This amount includes R20 million (R10 million in 1997/98) as a contingency reserve.

Key programmes of this department are support to SMME (R15, 5 million), investment promotion (R3 million) and the Y2K (R10 million).

Department of Education

The Department of Education has been allocated R3, 268 billion, an increase of R171, 6 million or 5, 5%. This allocation constitutes 41,6 % of the total budget.

Department of Local Government Housing

The Department of Local Government & Housing has been allocated an amount of R240, 803 million. This allocation is R107, 6 million less than the 1998/99 allocation. The decrease is due to the transfer of the Provincial Survey Office (R5, 3 million) to national, and the exclusion of the R293 town’s budget, which will be transferred directly by national to the local authorities.

Department of Transport and Civil Aviation

The Department of Transport and Civil Aviation has been allocated an amount of R340, 259 million. This amount includes R189, 758 million in respect of commuter subsidies.

Department Public Works and Roads

The Department of Public Works and Roads has been allocated an amount of R580, 086 million and is increased by R5, 2 million.

Key programmes of this department are community-based projects, which target rural communities, and the construction and maintenance of provincial road networks.

Department of Arts, Culture and Sport

An amount of R74, 881 million has been allocated to the Department of Arts, Culture and Sport. This amount decreased by R4, 8 million or 6%. Transfers to North West Arts Council and Mmabana where higher levels of self sufficiency are required, have been reduced.

Department of Agriculture

The Department of Agriculture has been allocated R192, 604 million. A key programme of this department is entrepreneurial development to which R101, 5 million is allocated.

CONCLUSION

The budget we are presenting today has been constructed to advance our cause of transformation. We are mindful of the confidence and trust bestowed upon us by the people of this Province. We want to assure them of our resolve to apply the resources at our disposal in a highly prudential manner.

As we are closing the chapter on our first term of the democratic dispensation we can with absolute confidence say that the foundation has been laid to bring about A BETTER LIFE FOR ALL.

It is however, not our intention to bask in the glory of our achievements of the last five years. Let us use the framework of this Budget to build on our past experiences because much still has to be done.

While our efforts and energies have in the past five years been devoted to live within our means, in future these will be devoted beyond balancing the budget, as we will be asking critical questions about value for money.

In line with our stated objective in the MTEF of greater political oversight and maximum participation in the Budget process we are deeply indebted to the following:

The Honourable Premier for your visionary leadership and support in defending tough decisions.

Colleagues in the Executive Council for your understanding and insight on the task at hand. Your collective support in fiscal management is highly appreciated.

Honourable M. Modiselle of the Standing Committee on Finance and Honourable L. van Deventer of the Public Accounts Standing Committee; your vigilance has greatly enhanced our ability to manage the public purse.

The Director General and Heads of Departments for your diligence in implementing sometimes difficult policy decisions.

Mr P. Tjie – Head of the Department of Finance and Staff for the high level of professionalism in which you’ve managed public resources.

Mr E. van Wyk – Head of Treasury and his team who played a pivotal role in arriving at today’s product.

To our external stakeholders in the A RE A GENG Forum for assisting us in ensuring co-ownership of the budget process by the people of the Province.

The Auditor General’s office for your dynamic interaction to improve financial controls.

My wife and family for your patience, and continued support in difficult circumstances.

And finally each one of you in the audience for making a special effort to come and listen to us this afternoon.

Honourable Speaker, we are confronting the future with a high degree of optimism and in the words of President Theodore Roosevelt we would like to say-

" The future belongs to the man and woman who is actually in the arena, whose face is marred by dust and sweet and blood; who strives valiantly; who errs and comes short and short again; who knows the great enthusiasms, the great devotions and spends himself in a worthy cause; who at the best knows in the end the triumph of high achievements; and who at the worst, if he fails while daring greatly"

LET’S KEEP GOING

I thank you, Honourable Speaker.