May 13,

RESOURCE COMMITTEE

The Committee met at 7:00 p.m. in the House of Assembly.

CHAIR (Harding): Order, please!

Just a brief comment again, that we will try to follow the procedure that we

have been trying to stick to. I will have the Minister, or tonight the

Substitute Minister, give us up to a fifteen-minute presentation on the

Department of Business. Following that, the critic, or the Vice-Chair tonight,

will have fifteen minutes, and then we will follow that with up to ten minutes

for each of the other members, if they so desire.

Now I would like to have the Committee members introduce themselves by name

and district.

MS JOHNSON: Charlene Johnson, the MHA for the District of Trinity-Bay de

Verde.

MR. O'BRIEN: Kevin O'Brien, the MHA for the District of Gander.

MR. HUNTER: Ray Hunter, the MHA for the District of Windsor-Springdale.

MS FOOTE: Judy Foote, the MHA for the District of Grand Bank.

MR. REID: Gerry Reid, the MHA for the District of Twillingate & Fogo.

Mr. Chairman, before we start, I would like to make a comment. In light of

the fact that the Minister for the Department of Business, the Premier, is not

here tonight, with no disrespect for the minister who is here, but in light of

the admission that she made yesterday, that she was not entirely knowledgeable

of the affairs of that department, I would like to make a motion that we adjourn

the meeting until such a time that as the Minister may appear before the

Committee.

MS FOOTE: I second that motion, Mr. Chairman.

CHAIR: As you are aware, that same issue was brought up this afternoon.

The Speaker made a ruling on it, and I think it was quite explanatory, no

question at all, as to where we stand tonight with regard to this meeting. It is

certainly a legitimate meeting and, based on what the Speaker ruled this

afternoon, I do not really see the need of entertaining that motion at this

point in time.

MR. REID: Whether you entertain it or not - no disrespect again, Mr.

Chairman - I have made a motion and it has been seconded by my colleague from

Grand Bank. I do not know if the motion has to be put to the floor or not. I

guess the Clerk could determine that or you could determine it, but the motion

has been made and seconded.

CHAIR: The thing about it is, as I said, I do not want to be seen as

overruling a decision that was made by the Speaker this afternoon on the exact

same issue. I can still, I guess, accept the motion and we can vote on it.

The motion was made by Mr. Reid and seconded by Ms. Foote. Did you hear the

motion? Could you get the exact wording now of that?

MR. REID: I would like to defer the meeting or postpone the meeting until

such a time as the Minister responsible for the Department of Business can come

and do the Estimates with us.

CHAIR: You have heard the motion.

All those in favour, aye'.

AN HON. MEMBER: Aye.

CHAIR: All those against, nay'.

SOME HON. MEMBERS: Nay.

CHAIR: The motion is defeated.

MR. REID: Mr. Chairman, before I leave, because I am going to, I would

just like to say that this is not out of disrespect for you or for the minister

or, certainly, for her officials, but we will be leaving now.

MS FOOTE: I would like to make a comment, Mr. Chair. As the Critic for

the Department of Business, I think it is an insult that I am not able to

question the minister responsible. This is a new department. I am sure the

Minister of ITRD would do her best in terms of representing the Premier, but at

the end of the day I think, where it is a new department, supposedly a new

vision, and a new approach, it is hard to get inside someone else's head when

you are trying to establish a new department and get the message across. I would

like to have a chance to question the minister responsible, but since I am not

able to do that, I am going to be leaving as well.

CHAIR: I accept that decision, but we will have to proceed with the

meeting in your absence. No doubt you will have time later on to discuss the

department's estimates with the minister when he is in attendance.

MS FOOTE: I sure hope so.

CHAIR: At this point in time, I would like to ask the substitute

minister, Ms Dunderdale, to introduce her officials.

MS DUNDERDALE: Thank you, Mr. Chairman.

On my immediate left is Dr. Doug House, the Deputy Minister of ITRD; next to

Dr. House we have Mr. Tim Murphy, Deputy Clerk of the Executive Council; and

sitting as observers with us this evening are Brian Crawley, Chief of Staff, and

Steven Dinn, the Premier's Executive Assistance.

CHAIR: Thank you very much.

Following the same procedure as we have done before, any questions to any of

the officials, I would like to ask you to identify yourselves before you answer

the questions.

Now we may proceed with the Acting Minister giving you an overview of her

department's estimates.

MS DUNDERDALE: Thank you again, Mr. Chairman. Good evening to everyone.

I am pleased to have this opportunity to appear again before you, this time

to discuss the new Department of Business. Unfortunately, Premier Williams, who

himself will serve as Minister of the Department of Business, cannot be with us

this evening. He is on important business in Europe aimed at securing the future

of CFB Goose Bay, and I know we all wish him success.

Since the Deputy Minister has not yet been appointed for the Department of

Business, I and the two senior officials accompanying me have agreed to

represent government before your Committee on this budget item.

As is well known, Premier Williams has been a highly successful business

person in Newfoundland and Labrador. In deciding to run for the office of

Premier, he was motivated by his great love for this Province and his conviction

that, if elected, he could bring his considerable business skills to the service

of the Province. To support him in this, he decided to establish a Department of

Business which would report directly to him as its first minister.

The Department of Business is now in the process of being formed. In order to

get the best possible candidate,, we recently advertised for the position of

Deputy Minister of the department. The key responsibilities for the new deputy

will include business and investment attraction, BRAND management related to

trade investment and business development to improve the recognition factor for

Newfoundland and Labrador, advising on strategic business opportunities and

advising on the application of new technologies through the business of

government.

One of the main functions of the new department will be investment

attraction. The department will vigorously pursue investment prospects for our

Province, targeting opportunities in a strategic fashion and selling

Newfoundland and Labrador as a good place in which to do business. The Premier,

as Minister of Business, will be directly involved in order to seal the deal in

attracting new investment.

The new Department of Business will also provide a direct interface for the

Newfoundland and Labrador business community with the Province's Chief

Executive Officer, the Premier, himself. This will enable entrepreneurs and

businesses to get on with the important work of establishing and growing small

and medium-sized businesses, which are fundamental to wealth creation and

employment generation for the people of our Province.

The Premier intends to meet, one on one, with many businesses operating in

our Province, for example, oil companies, mining companies, paper companies,

major retailers and small business owners alike, to determine what government

can do to enhance business success and job creation.

We have also advertised for a Chief Information Officer who will be situated

within the Department of Business, reporting directly to the Deputy Minister.

The key responsibilities of that position will include building and maintaining,

in collaboration with internal and external stakeholders, an information

strategy for the Province, ensuring that IT development projects enable the

strategy to be implemented successfully and optimizing external business

opportunities arising from internal IT development projects.

The Department of Business will also be responsible for providing leadership

and co-ordination across government departments and Crown agencies to promote

business development and good business relations.

There will be a clear division of labour but a close working relationship

between the Department of Business and the Department of Innovation, Trade and

Rural Development. While the former will focus on direct business deals at the

senior level, the latter is more developmental in its focus. My department will

continue to provide programs and services that strengthen capacity and community

and business development in all regions of the Province, do the background in

developmental work for trade and investment, and continue to operate such

promotional programs such as Getting the Message Out and the Ambassador Program.

We will also soon be appointing an new Assistant Deputy Minister for Advanced

Technologies who will play the lead role in developing an innovation strategy

for the Province. We will co-ordinate with the Department of Business in various

ways. For example, when our trade and investment people identify promising

business opportunities in their developmental work in various sectors and

markets, they will pass the information on to the Department of Business which

will negotiate the specific business deals.

As you will see in the Budget Estimates for 2004-2005, a sum of $1 million

has been allocated for the Department of Business during its startup phase. This

includes $275,300 for executive and support services and $724,700 for business

attraction. Here is a good early example of co-operation between our two

departments. The background work that ITRD has been doing on identifying

promising sectors and markets for investment attraction is laying the groundwork

for the Premier, as Minister, and his Deputy Minister to pursue specific

investment attraction deals.

I, and my deputy, Mr. Chair, are excited about the establishment of the

Department of Business and look forward to a fruitful working relationship with

it. I will be happy to answer any questions of the Committee and you, Mr. Chair,

that you might have.

Thank you very much.

CHAIR: Thank you very much, Ms Dunderdale.

Now I will ask the Committee members if they have any questions to ask of the

Substitute Minister tonight or the officials who she has with her.

MR. HUNTER: Mr. Chair, I would like to make a few comments.

I had been in business for twenty-five years before I entered politics and

many times I have wondered why the government does not have a Department of

Business. I would like to congratulate the Premier, also the Minister of ITRD,

and officials, that finally we are going to have something in government that

could work not only with the people of the Province in all aspects but,

particularly, the businesses; very, very important, if we are going to grow the

economy in this Province. The Premier has taken the initiative to start this

department, to start the ball rolling, and hopefully, and I wish all the luck,

this is going to be a wonderful thing for growing the economy in this Province,

particularly in rural Newfoundland. That is where, in the last few years, we

have seen a lot of the problems, in the economy and with the services in rural

Newfoundland.

I would just like to congratulate your department, Minister, and the Premier

for doing this. It is long overdue, and you have my full support on it.

MS DUNDERDALE: Thank you very much.

CHAIR: Thank you very much, Mr. Hunter.

Mr. O'Brien.

MR. O'BRIEN: I think Mr. Hunter has said it all, but on a lighter note,

I guess, the Premier and the minister responsible - maybe, as the Party Whip

would say, I will get the meeting that I want with him faster than I think if we

were to put an amendment forward here now and split the $724,000 between the

four members on the Grants and Subsidies that are there and use it only in our

districts.

Anyway, I agree with Mr. Hunter, it is time. I think, actually, the people in

Newfoundland, especially in the business world - and what I encounter out in the

district is that there is a great anticipation for the Department of Business

and there are great expectations, I will be honest with you. I am quite sure

that the Premier with his past background in business and then with your own,

Minister, it is going to be a great initiative. Essentially, I am waiting in

anticipation myself, after thirty years in businesses, in various businesses,

and with a very diversified, I suppose, background.

CHAIR: Thank you, Mr. O'Brien.

Ms Johnson.

MS JOHNSON: Well going last, those two have said it all, so in light of

the time, I will say I will let go both their comments.

CHAIR: Thank you very much.

Are there any questions of these people or not before I call for the vote?

Seeing as there are no questions, I call the subheads.

CLERK: 1.1.01 to 2.1.01 inclusive.

CHAIR: Subheads 1.1.01 to 2.1.01 inclusive

Shall the subheads carry?

AN HON. MEMBER: Carried.

CHAIR: Carried.

On motion, subheads 1.1.01 through 2.1.01 carried.

CHAIR: Shall the total heads carry?

AN HON. MEMBER: Carried.

CHAIR: Shall the Estimates for the Department of Business for the fiscal

year 2004-2005 carry, without amendment.

AN HON. MEMBER: Carried.

CHAIR: Carried.

On motion, Department of Business, total heads, carried without amendment.

CHAIR: I would like to thank the Acting Minister tonight, and her

officials, for coming along. I would also like to thank the members of the

Committee.

Before I ask for a motion to adjourn, there are a couple of points I want to

make. First of all, I want to thank the staff who came along tonight, and I

would like to call for a motion now to adopt the minutes of the meeting that we

held this morning. Would someone make that motion?

Moved by Mr. Hunter, seconded by Mr. O'Brien, that the minutes of the

Resource Committee meeting held this morning, Thursday, May 13, be adopted as

circulated.

All those in favour, Aye'.

SOME HON. MEMBERS: Aye.

CHAIR: All those against, nay'.

Motion carried.

On motion, minutes adopted as circulated.

CHAIR: The other thing that I want to mention is that our next meeting of

the Resource Committee will be held next Thursday, May 20, and at that time we

will debate the Estimates for the Department of Natural Resources. Having said

that, I would like to thank everyone again for coming along tonight, and I ask

for motion to adjourn.

MR. O'BRIEN: So moved..

CHAIR: Moved by Mr. O'Brien. This meeting is adjourned.

Thank you very much.

The Committee meeting now stands adjourned.