Mr. Chairman, the Interim Appropriation Act for the 1999-2000 fiscal year is required because the main Appropriation Act for the upcoming year is still under development, pending completion of the Main Estimates and review by standing committees. The government needs interim appropriation authority by April 1, 1999, 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 of the 1999-2000 fiscal year. Although the present legislative schedule anticipates approval of the 1999-2000 Appropriation Act during the month of April, the three month operating requirements will prevent a problem should there be any changes in the session schedule.

Departments developed their requirements using the 1999-2000 projected level of spending. The interim appropriation amounts were based on the estimated requirements in four areas:

1. Salaries, wages and benefits for the seven pay periods falling between April 1, 1999, and June 30, 1999.

2. Amounts required to fund grants and contributions for the first three months of 1999-2000.

3. Other operations and maintenance requirements. The requested appropriation authority provides for the commitment of the full value of contracts that must be entered into during the first month of the fiscal year. In accordance with the Financial Administration Act, the full amount payable under these contracts during 1999-2000 must be charged to an appropriation when the contract is signed.

4. Interim requirements for capital expenditures for multi-year projects with contracts which span the 1998-1999 and 1999-2000 fiscal years and projects where deadlines, due to shipping requirements or other factors, required early approval.

The authority issued under the Interim Appropriation Act expires once the 1999-2000 Appropriation Act is assented to in the Legislative Assembly. The 1999-2000 Appropriation Act will replace the Interim Appropriation Act retroactive to April 1, 1999. Thank you, Mr. Chairman.