Thank you, Mr. Chairman. The fiscal forecast that the Member is referring to is based on the assumptions that are underlying the current fiscal strategy that was laid out in the Minister of Finance’s budget in January. They do involve relatively low rates of expenditure growth. That was anticipated.
The fiscal strategy for the last budget, for the 2009-10 budget and for the 2010-11 budget were budgets that were based on the economic downturn and the recognition that government would have to maintain operating spending levels and to make some significant investments in infrastructure and that this was not the time for government to be cutting spending or reducing investments in capitals. So some fairly significant investments were made, but the fiscal strategy that was laid out recognized that the government would have to constrain spending growth quite significantly to return to fiscal sustainability and to reduce the capital investment levels to historical levels. So that fiscal strategy is one that was developed when the budget was put together and the forecasts are those which are based on our best estimates of revenues at the moment, estimates of expenditures are based on the assumptions that we have put into the fiscal strategy.
So the impact of the bridge, we’ve incorporated the additional $15 million in capital that was required to meet the increased costs of the bridge, and we did recognize that given that fiscal framework that we had put together, that in 2011-12 and 2012-13, that there was a likelihood, given our forecasts, that we would exceed the borrowing limit. But given the commitments that we have received from Finance Canada and from the federal Minister of Finance, that we have the assurances that the borrowing limit will be adjusted to allow us to achieve our fiscal strategy without having to make changes to it, but there was an expectation that we would be continuing our fiscal strategy, implementing the measures that would get us back to a sustainable
path and to reduce our overall debt levels over time. Thank you, Mr. Chair.