Thank you, Mr. Chairman. Mr. Chairman, the interim appropriation act for the 1996-97 fiscal year is required because the main appropriation act for the upcoming year is still under development, pending completion of the main estimates and a review by the standing committees. The government needs interim appropriation authority by April 1, 1996 to allow it to make expenditures for continuing operations in accordance with the Financial Administration Act, which requires that no government expenditures be made which are not pursuant to an appropriation.

The interim requirements were calculated based on operating needs for the first three months in the 1996-97 fiscal year. Although the present legislative schedule anticipates approval of the 1996-97 appropriation act during the month of May, the three-month period prevents a problem if the session schedule shifts a few days.

Departments were instructed to use the 1995-96 fiscal year as a base, but to assume as a guideline that appropriate amounts for 1996-97 would be 10 per cent less than the expenditures during the same period in 1995-96.

Within this broad guideline, the interim appropriation amounts were based on estimated requirements in four areas: one, salaries, wages and benefits for the seven pay periods falling between April 1, 1996 and June 30, 1996; two, amounts required to fund grants and contributions for the first three months of 1996-97; three, other operations and maintenance requirements because the requested appropriation authority provides for the commitment of the full volume of the contracts that must be entered into during the first month of the fiscal year, such as a rental of photocopying equipment. In accordance with the Financial Administration Act, the full amount payable under these contracts during 1996-97 must be charged to an appropriation when the contract is signed; and four, interim requirements for capital expenditures for multi-year projects with contracts which span the 1995-96 and 1996-97 fiscal years, are projects where deadlines due to the shipping requirements or other factors require early approval.

The authority issued under the interim appropriation act expires once the regular appropriation act is assented to in the Legislative Assembly. The regular appropriation act replaces the interim appropriation act retroactive to April 1, 1996. Thank you, Mr. Chairman.