The Honourable Pat Mella, Provincial Treasurer, confirmed today that the province's economy is in good shape and that she is cautiously optimistic about the Island's economic future.
In her update, Minister Mella stated the 1998-99 deficit is now forecasted at $2.964 million, down by approximately $.5 million from her original forecast of $3.443 million.
"Tourism in this province is flourishing and is a major economic generator for our economy and in particular for our retail sector," the Minister emphasized. "Our manufacturing sector continues to grow and has become an inducement for further investment, all of which provides for the creation of good full-time jobs for Islanders." The Treasurer stressed that the performance of the Island's farming and fishing industries should improve from last year's results.
Minister Mella noted that since coming to office the government has made significant improvements to our budget expectations. "I anticipate the actual results from the 1997-98 year will be reflective of the forecast I provided some months ago. The Office of the Comptroller will be releasing the Public Accounts for 1998 in the next couple of weeks," said the Minister.
The Minister confirmed the good news that PEI's economy will achieve real growth for the 1998-99 year by at least two per cent. "We recognize that the problems in South America, Asia and Russia will affect the Canadian economy and to some extent our own economy. There is evidence, at present, that our commodity prices are being affected. However, we still remain cautiously optimistic that the economy will grow at a rate of about two per cent. This is a good news story for Islanders."
In her update the Minister noted that overall the government has held the line on expenses, however the government is still experiencing increased spending for health. The extra money required for the Health Department is for unanticipated requirements to purchase equipment for the new Canadian Blood System, additional support for the province's pharmacy program and various other costs throughout the system.
"We have taken responsible action and are working with our Health Department with the development of financial information and plans designed to provide meaningful information for the purpose of examining costs within the health system," noted Minister Mella. "In addition, our health boards and managers continue in their attempts to control costs and identify the various 'drivers' contributing to cost increases. We will continue to involve staff in these on-going reviews in order to seek new strategies to control costs, while preserving front line services."
The Minister reaffirmed the government's commitment to provide Islanders a sound education system. "The scheduled Capital Construction Program announced last spring is included in our forecast and is one example of our commitment. As well, we remain committed to economic development by providing support to the private sector where it is meaningful to do so."
The Provincial Treasurer stressed it was important to communicate about the province's finances and forecast for the future. "Islanders deserve to know where we stand and where we are heading in the future and as Provincial Treasurer I want to be open and accountable to the people of this Province. The information I am sharing today confirms that we have the opportunity to build a good, secure future as we work towards our potential and develop opportunities for Islanders."