Premier Announces Crown Share Money Would Go Mostly To Debt

Premier Rodney MacDonald announced today, March 31, that at least 70 per cent of a potential Crown Share payment for 2007-08 and past years, would go to the debt.

The remaining portion would go into legacy projects for the offshore, protected lands and university infrastructure.

The province is making a commitment on how it would invest any Crown share funds attributed to the 2007-08 fiscal year or before. A report is expected sometime this spring from a federal-provincial panel studying the Crown Share issue. The panel is looking at how much the province should receive, and in what form.

"We want to be clear about where any Crown Share payments would go," the premier said. "Our high debt continues to be perhaps the most significant barrier to becoming a 'have' province, and we remain steadfast in our commitment to tackling that barrier.

"Yet, Crown Share could also provide us with a unique opportunity to manage the future of our province, through prudent investments in our offshore, our land and university infrastructure -- fundamental aspects of any legacy we leave for our children."

At least 70 per cent of the funds would be applied to Nova Scotia's debt. That amount could be higher, depending on the size of the Crown Share payment.

The remaining 30 per cent, to a maximum of $75 million, would be distributed to three areas, each receiving 10 per cent of the payment up to $25 million:

• The Nova Scotia Crown Share Land Trust to help purchase protected lands
• The Nova Scotia Crown Share University Infrastructure Trust for improvement of Nova Scotia's university infrastructure
• grants to two offshore energy research associations to fund geoscience and marine research.

Finance Minister Michael Baker said the government is making a clear statement that Crown Share funds would go to important priorities.

Accounting rules require that the public spending commitment is treated as an expense for 2007-08, contingent on the approval of a Crown Share allocation for that year.

Additional appropriations have been approved to give government the authority to spend the money in 2007-08.

Decisions on how to treat future Crown Share revenue, if any, would be made in the year they are received.