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| *"The results for this present | fiscal year must be a source of sat-- 'isfaction to every member of this 'House and to every good citizen of {the Province. I know that in the | political field there is a constant warring of the various {factions who seek at all times to gain an ad-- 'vantage over their opponents: bu ! am most sadly mistaken if the faw of my today being able to report an honest surplus of over $7,000,000 to l1his House does not give the ut-- lmost satisfaction to every member, regardless of whether he sits to the 'right or to the left of the Speaker "The next item to which T1 shall give attention will be that of capital receipts. I must say at the outset that I do not find myself in agreement with some of the arguments of my friends opposite who deem it an economic crime to add to the debt by allowing capital expenditures to exceed capital re-- ceipts and, at the same time, fail to give credit to a Government that so manages the affairs of the State as to ensure that the capitai payments are less than the capital receipts. . Did any of you ever hear of a banker or a sensible business man chiding a customer, whose accounts receivable and whose in-- ventory in raw and manufactured material were too high, for reducing his inventory and collecting his outstanding accounts to pay off his bank indebtedness or his other lia-- bilities? "This Government has put forth every effort in an endeavor to col-- lect amounts that were owing and. with the improved times in busi-- ness and economic conditions, this has been possible. _A year ago 1 estimated the capital receipts for the year at $36,893,318.531. This es-- timate has been surpassed by the amount of capital receipts which, by March 31 next, will amount to the sum of $44,431,714.93. |lected revenues in excess of the amount estimated after paying the cost of unemployment relief and 'the administration thereof in the \sum of $12,500,000, and having | properly provided for all sinking funds by the expenditure of over ©©900,000, 1 am able to report today, Mr. Speaker, a surplus, an honest 'surplus twelve times as great as 'that contemplated, a surplus of $7,347,129.13. "With the permission of the House, I place on the records an "Having budgeted last year for a surplus of $597,985.64, having col-- NJ>----Public Works .... Miscellaneous . .... Stationery Account 10"'[4@"1&'8"0" ooo e 1 --LEGCUECNMROEEOVENIIOE | «ixasersrrrresecrtrrrttritres ,2--"'"08 w e n w e woa ww w ww mm ma ne e m e h e m ne hm e % 6 6 t 6 6 # 6# # a % 13""""",('"'0. Affairs w ww h e# b e h 6 en w e 6 e en hn 6# 6 6 6 6 6 n# s 14--Northern DevelOpPMEAE . k «x«skikii«ikrrrki«rerrrkrlr1s 'Fpflme b"n"ter w w e w e h e h e e hn e me hn n n h e 6 6 e 6 6# 6 # 6 6# % 15""?"0\!"""'.' Alldl!")r w w ue w en n e n e e e h e 6 6 e e 6 6 e 6 6 6 6# 6 % 17--Provincial Secretary: Main Office and Registrar--General's Branch.. Reformatories and Prisons Branch ........... 18&----Provincial 'Treasurer: ;"a'n ')f"" w h e a n e ha h e e n e e n e n 6n 6 6 6# % Controller of Revenue Branch ...... Amusements Revenue Branch ........ Bfl.l'fl (" Cemn w e n e n e e n e w 8# 8 4# n# 8 &'gih-'. ot"n .0.'00....;;0...... 19-- Publle Welfare: Main Office and Branches ...... Old--Age Pensions Commission .... Mothers® Allowances Commission Public Prebt----Interest, Exchange, etc. Add: Unemployment Direct Reliet and ad-- ministration | thereOof = ....ses se es e e es e e e 8k k +4 +s POS'O'""_ ow w ww w m e w e e e m n n e e t 6 e 6 e e 6 6 04# 6 6# 6# Capital Receipts NTERIM STATEMENT OF GROSS ORDTNARY EXPENDITURE al Year April 1, 1936----March 31, 1937--10 Months Actoal--2% M Forecast----12% Months Surplus karems:**** .nch a a # # # ® ;r'nch a # * # DEPARTMENT a e e w e e e e h# a w 6e e h e se 6e h4 a% 6 6 6# 6 6# 8 % # a e a a 6 # # m \ lem of two accumulating accounts . --one representing Hydro advances, the -- other _ representing Hydro Sinking -- Funds--eachn with -- an 'elaborately complicated interest set-- to allocate any part of the Hydro Sinking Fund deposits against their previous borrowings. The Province was faced, therefore, with the prob-- "'The Hydro advances were in-- creasing year by year, necessitating an ever--increasing drain on the credit of the Province. As no at-- tempt has been made in the past to charge directly to any Provin-- clal loan any part of the Hydro ad-- vances, it was necessary to main-- tain an elaborate and complicated system to ascertain the average yearly cost of money. It was also impossible under the former plan "The Province of Ontario made its first loan for advances to the Hydro in the fiscal period ending in 1908. Yearly advances were made from that time on. Interest was payable on such advances in che manner as prescribed in 17 George V, Chap. 17, See. 36. Such interest was to be the exact cost to the Government of money raised for the purposes of the Commission. "In 1926 the Hydro undertook to place with the Province sinking funds that it was accumulating for its debt retirement. Interest was allowed to the Hydro on the basis of average yearly cost. A review of the Hydro financing plan as at Oct. 31, 1934, indicated the follow-- ing un'iwvorable factors: "A few words of explanation will perhaps place this matter in such a light that it will be better under-- stood by the House and by the citi-- zens of this Province. "One of the chief items that go to make up capital receipts is the repayment to the Province by the Hydro--Electric Power Commission of Ontario of the amounts which represent the portion of the Hydro-- Electric Power Commission's share of maturing debentures. While we take the receipts from the Hydro-- Electric Power Commission into our account and show them as capi-- tal receipts, we might quite as easily and properly have required the Hydro--Electric Power Commis-- sion to pay the sums representing their portion of the maturing ob-- ligations directly to the banks. interim statement of capital re-- ceipts for the fiscal year April 1, 1936, to March 31, 1937, being ten months' actual receipts and two months forecast. Reviews Hydro Affairs. a 8 % ## 6 6# # 222.221 11 2. 288,823 10 600,717 .70 2. 002. 300 OO 2.678.216 00 116.623 ® 1,466.4% 31 406. BBo . Ts 85,.718 19 11,667 .02 '3'-555- 1:' 261,790.44 betail .107 9n 93 $41.387,.197. 190 41,986,882 59 Expenditure 8 1.936.924 99 2,333,056 .04 10,253,936 24 470.054. 20 $84,874,079 . T8 12,500,000 .00 | $72,.374,079 .78 *» 7.188.146 57 4.731, 477. 56 65.827.82 397,112.07 5,.'281.233. 70 620.767 .13 157,323.43 6,677.08 1,180,486 83 10.668 O3 328. 500 31 82,.408 .42 1,4272,236 .71 143,574 28 113,077.00 1,583,060 30 Ordinary : 511,044.21 , //' ®mHHBSION ~&8ho the . BrGy. Ilnce decided that as at Oct. 31, 1934, the total Provincial advances to the Hydro be distributed in an equitable manner over the Provin-- lcxal loans outstanding as of. that date and also that in distributing such advances, due consideration be given Hydro repayments. It was necessary in order to properly al-- locate the Hydro advances to Pro-- 'vincial borrowings to examine into and summarize all the borrowings by the Province from the year 1994 to 1934. In this way it was pos-- sible to ascertain the net proceeds of each loan, the maturing issue or issues that had been refunded and the proceeds available for financing Provincial and Hydre undertakings. The Hydro advances were then distributed in each fiscal year over the available proceeds on a pro--rata basis: ; '"With the permission of ths ,l!ouse I placed on the records z summarized statement, by fiscal !years, of the advances to and the | repayments from the Hydro--ElectFit lPower Commission, which is Sche-- | dule A, and the distribution over | the Provincial Funded Debt, as ai \ March 31, 1937, of the net advances to the Hydro--Electric Power Com &mission. which is Schedule A--L. up and no feasible manner in Wwhich to offset one against the other, ~ Pro--Rata Basis. "The Commission and the !qge_ decided that as at C '"The Hydro repayments repregsent a portion of the Sinking Fund ac-- cumulated by the Hydro for the eventual retirement of its advances, The above--mentioned Hydro repay-- ments were therefore used in re-- tirement of the Hydro's share in the next ensuing loan maturity. March 10