Newfoundland and Labrador Hansard — Members' Statements; Statements by Ministers — 15 November 2018 (48th General Assembly, 3rd Session, Vol. XLVIII No. 42)
2018-11-15
Newfoundland and Labrador — Debates (Hansard)
PDF Version
November 15, 2018
HOUSE OF ASSEMBLY PROCEEDINGS
Vol. XLVIII No. 42
The
House met at 1:30 p.m.
MR. SPEAKER (Trimper):
Order, please!
Admit
strangers.
If I
may, it would give me a great honour to introduce into the Speaker's gallery
today some visitors from 5 Wing Goose Bay. We have with us Lieutenant Colonel
Stéphane Racle, who's the Commanding Officer at 5 Wing Goose Bay; Master Warrant
Officer David McDowell, 5 Wing Goose Bay; and 5 Wing Mitigation Officer, Mr.
Tony Chubbs.
Welcome
to you all.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
Also, I understand in the
public gallery today, I believe over here to my right, we have with us Mayor
Juanita Stone and her husband, Bob, from Red Bay.
We have
a great welcome to you. Thanks for being here with us.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
You can't hide.
Statements by
Members
MR. SPEAKER:
For Members' statements
today, we have the hon. Districts of Cape St. Francis, Humber - Bay of Islands,
Bonavista, and Mount Pearl - Southlands.
The hon.
the Member for Cape St. Francis.
SOME HON. MEMBERS:
Hear, hear!
MR. K. PARSONS:
Thank you very much, Mr.
Speaker.
I rise
today to recognize Ms. Mary Fleming of Torbay, who will be celebrating her 100th
birthday on November 16. This is a milestone that few of us get to see. May has
lived every year of her 100 years to the fullest.
Mary was
one of 13 children born of John and Annie Mahon and, like many in her day, Mary
was taken out of school at an early age to help out at home. Mary later married
Edward Fleming and had children of her own. In her early days, she helped her
husband run a convenience store and barbershop in Torbay.
Mary was
widowed when she was just 40 years old. Following her husband's death, she
closed the store and went to work in retail and the food industry while raising
her children. For a brief period, Mary also went to Churchill Falls and was
among the first group of women to go there.
Mary has
been blessed with good health and has been an active member of her community.
She has enjoyed her independence and drove until she was 89, and remained in her
own home until she was 98. I believe she's the oldest person in Torbay.
Mr.
Speaker, Ms. Mary Fleming is a remarkable woman and I ask all hon. Members to
join with me in wishing her continued good health and much happiness as she
celebrates this incredible milestone, her 100th birthday.
Thank
you very much, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Member for the
District of Humber - Bay of Islands.
MR. JOYCE:
Mr. Speaker, I rise in this
hon. House today to recognize Jamie Brake of Meadows.
Earlier
this year, Jamie was awarded Recreation Newfoundland and Labrador's Volunteer of
the Year Award. This award recognizes a volunteer for outstanding efforts and
invaluable contributions to the development of recreation.
Jamie,
who is also the Mayor of Meadows, has been involved with sports for many years
both as a player and a coach. He avails of every opportunity to complete
training programs and is always eager to share his knowledge and skills with
others.
Because
of his vision to offer recreational opportunities in the town, programs like
Learn to Skate, ball hockey, pond hockey tournaments and many other activities
have been major successes under his leadership. It is not uncommon in the winter
to find Jamie in the early hours of the morning flooding the rink, or in the
summertime ensuring everybody is ready when children arrive for the day.
Jamie
also received NAPE's Community Volunteer Step Up Award this year and in 2019, he
will be one of the hockey coaches for Team Newfoundland and Labrador at the
Canada Winter Games being held in Red Deer, Alberta.
I ask
all Members to join me in congratulating Jamie on this recognition and for his
continued contribution to his community and the province.
Thank
you, Mr. Speaker.
MR. SPEAKER:
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Member for the
District of Bonavista.
MR. KING:
Mr. Speaker, imagine making
it to 80 years of age. Now, imagine being committed to an organization for 80
years. That is the case for Frances Sweetland of Bonavista who has been
committed to the guiding movement for 80 years.
Under
the guise of a cake walk, Ms. Sweetland was recently surprised by well over 100
Sparks, Brownies, Guides, Pathfinders and Rangers, past and present, to whom she
is known as Brown Owl. Ms. Sweetland began her lifetime commitment to guiding in
1938 at age eight as a Brownie. She would later become a Guide and Pathfinder,
and serve as a leader, commissioner, and even a cookie conveyer for our area,
amongst other roles.
After
the initial shock wore off, Brown Owl was presented with a number of gifts and
well wishes from those who couldn't attend. The highlight of the evening was
when 80 women each took a flower and formed a circle around the campfire and
toadstool. Each dropped their flower in the basket, offering congratulations or
a story as to what Brown Owl means to them.
For
empowering women for generations, fellow leader Leigh-Ann Ryder said it best:
“Brown Owl was Girl Power before Girl Power was cool!”
Thank
you.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
Thank you.
The hon.
the Member for the District of Mount Pearl - Southlands.
MR. LANE:
Thank you, Mr. Speaker.
This
coming Saturday, over 400 players and coaches from the Mount Pearl Minor Hockey
Association will be hitting the doorsteps throughout the City of Mount Pearl, as
well as the Southlands and South Brook areas, as part of their 7th annual Big
Give Food Drive.
This
year they will be joined by a number of other sports groups and community
organizations including Scouts, Cadets, Lions, Kinsmen and many individual
volunteers.
addition to door-to-door collection, there will be food bins set up at Mount
Pearl's four grocery stores throughout the day. All food and monetary donations
will be in support of our two primary food banks located at St. Peter's Parish
and Mary Queen of the World. This is a tremendous initiative, which not only
fills a real need in our community but also teaches these young players the
importance of sharing with others and in giving back to their community. I
certainly encourage all citizens to please give generously to this very
worthwhile initiative.
For
residents who may not be home on Saturday morning, I encourage you to place your
non-perishable items in a plastic bag and hang it off your doorknob or lay it on
your front step and a volunteer will pick it up when they canvas your
neighborhood.
initiative such as this would not be possible without the hard work and
dedication of many volunteers. I therefore, ask all Members of this hon. House
to join me in commending the Mount Pearl Minor Hockey Association and all of the
other aforementioned community groups, sporting organizations and volunteers for
taking up the challenge to ensure that nobody goes hungry in our community.
Thank
you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
Statements by Ministers.
Statements by
Ministers
MR. SPEAKER:
The hon. the Minister of
Transportation and Works.
MR. CROCKER:
Mr. Speaker, I rise in this
hon. House to update Members on the 26th Annual National Conference on
Public-Private Partnerships, which I had the pleasure to attend last week in
Toronto.
This is
an annual conference that is recognized as the world's premier event on
public-private partnerships with participants from across the country.
As I
spoke with participants from the rest of Canada, I was happy to hear their
excitement as they spoke about what our government is doing to provide
large-scale infrastructure projects in Newfoundland and Labrador.
Just
yesterday we began the procurement of a new mental health and addictions
facility – our fourth project since January 2017 where we are partnering with
the private sector to build infrastructure at a cost that is reasonable to
taxpayers.
Value-for-money assessments on long-term care homes in Gander, Grand
Falls-Windsor and Corner Brook, the replacement of the Western Memorial Hospital
and the new mental health and addictions facility have concluded that partnering
with industry will be more cost effective than traditional procurement methods
on these projects.
In this
fiscal climate, this is a smart decision, making it wise for taxpayers' money.
The
Corner Brook long-term care home is under construction, construction on both
long-term care homes in Central Newfoundland and the West Coast hospital will
start in 2019, and the construction of the new mental health and addictions
facility will start in 2020.
All
these infrastructure projects that we are delivering are on time and on budget.
Finally,
at this conference, Cory Grandy, Assistant Deputy Minister for Infrastructure in
the department, became the newest board member of the Canadian Council for
Private-Public Partnerships, recognizing his knowledge and hard work on these
projects that are underway in our province.
Mr.
Grandy and Ms. Andrea McKenna are leading our energetic team in the department
that is embracing these projects to help our government deliver large-scale
projects. They've hit the ground running, and I'm very proud of what they have
accomplished in the last two years.
Mr.
Speaker, these projects demonstrate our commitment to delivering services and
creating jobs for Newfoundlanders and Labradorians, and we look forward to
delivering more infrastructure projects in the future.
Thank
you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
Thank you.
The hon.
the Member for the District of Conception Bay South.
MR. PETTEN:
Thank you, Mr. Speaker.
I thank
the minister for an advance copy of his statement. As the minister would be
aware, our administration supported the concept of public-private partnerships,
and I'm glad to see that his government has adopted work that we had already
started.
The
project that the minister highlighted is very important to the residents of
those regions, and to the province as a whole. We, too, certainly welcome the
construction of these facilities and look forward to their completion.
Mr.
Speaker, I would also like to congratulate Mr. Cory Grandy on his appointment to
the Canadian Council for Private-Public Partnerships. I have worked with Cory in
the past, and it is nice to see his knowledge and competency recognized in this
way. The value that members of the public service such as Mr. Grandy and Ms.
McKenna bring to all projects throughout government cannot be overestimated. It
is important that they be acknowledged for the great work they do.
Thank
you very much.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
Thank you.
The hon.
the Member for St. John's East - Quidi Vidi.
MS. MICHAEL:
Thank you, Mr. Speaker.
I thank
the minister for the advanced copy of his statement. I do have to make a
comment, though. It's easy to have all the infrastructure projects on time and
on budget, when only one is under construction yet.
In the
meantime, I tell the minister that he says P3s are a wise use of taxpayers'
money, but time will prove the inaccuracy of that statement. Auditor General
reports across Canada show that infrastructure, built by P3s, does not save
governments' money in the long term. In fact, the costs are higher.
We have
a government that's running scared from our financial situation, and making
short-term decisions to look like they are saving money, but they won't be
around when the long-term costs of P3s become clear.
Thank
you, Mr. Speaker.
MR. SPEAKER:
Further statements by
ministers?
The hon.
the Minister of Health and Community Services.
MR. HAGGIE:
Thank you, Mr. Speaker.
The World Health Organization has declared November 12
to 18 World Antibiotic Awareness Week.
Antibiotics are used to treat and prevent infections
and illnesses. When antibiotic resistance develops, the antibiotics we use may
not work for some or fail entirely. This means that conditions, like pneumonia
or strep throat, become untreatable.
The number one cause of increased antibiotic resistance
is overuse or inappropriate prescribing for prevention or treatment. Here in
Newfoundland and Labrador, antibiotic usage is the highest in the country.
Through the Provincial Antimicrobial Stewardship
Committee and ongoing work by our partners, Quality of Care NL and Choosing
Wisely NL, we are seeing positive behavior changes in prescribing patterns. This
past year, we have decreased usage by 9 per cent.
All health care professionals have the tools and
resources at their fingertips to help encourage more conversations with
patients. One of the themes of World Antibiotic Awareness Week is Think Twice.
Seek Advice. I encourage people to take the time to have a conversation with
their prescriber to determine whether the antibiotic you are being prescribed
is, in fact, the best course of action.
By working together and learning to use antibiotics
responsibly, we can help prevent antibiotic resistance.
We can ensure the right treatment, gets to the right
patient, at the right time.
Thank you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Member for
Conception Bay East - Bell Island.
MR. BRAZIL:
Thank you, Mr. Speaker.
I thank
the minister for an advance copy of his statement. Since the discovery of
antibiotics, they have served as the cornerstone of modern medicine; however,
the persistent overuse and misuse of antibiotics in humans and animal health
have encouraged the emergence and spread of antibiotic resistance.
The onus
is on the Department of Health to educate people about the proper use of
antibiotics, so they will not press their doctors for prescriptions that doctors
know they don't need. Such an education campaign will help doctors resist the
pressure to prescribe antibiotics when they are not needed.
People
also need to be warned not to store antibiotics to take when they see fit. It's
dangerous and affects us all. Antibiotic resistance is a nightmare scenario.
What could be more frightening than a serious infection that cannot be treated
because the antibiotics have been so overused that the bacteria is resistant to
all of them. We all must do our part for good health.
Thank
you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Leader of the
Third Party.
MS. ROGERS:
Thank you, Mr. Speaker.
I thank
the minister. With the highest rate of inappropriate use of antibiotics in the
country, it is good to see this improving. And bravo to the folks on the
Provincial Antimicrobial Stewardship Committee, Quality of Care NL and Choosing
Wisely NL for the good work they are doing.
Since
this government cancelled the Adult Dental Program, doctors are reporting the
increased use of antibiotics for recurring dental infections because people
cannot afford dental care. If the minister is serious about decreasing
antibiotic use, he would reinstate the Adult Dental Program that he so
recklessly cut.
Thank
you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
Thank you.
Further
statements by ministers?
Oral
Questions.
Oral Questions
MR. SPEAKER:
The hon. the Leader of the
Official Opposition.
MR. CROSBIE:
Mr. Speaker, we can all feel
the tentacles of windy winter reach even into this Chamber.
I have a
question for the Premier: Could he give an update if there have been any
communities negatively impacted by the severe weather to the extent that they
have required provincial assistance?
MR. SPEAKER:
The hon. the Minister of
Municipal Affairs and Environment.
SOME HON. MEMBERS:
Hear, hear!
MR. LETTO:
Thank you, Mr. Speaker.
Yes,
we've had some terrible windstorms in the last 24 hours. There has been a number
of power outages. In fact, some are still ongoing, but our latest information is
that most, if not all, will be back up by 8 p.m. tonight. As of when I left my
office just a few minutes ago, there have been no requests from any community
for assistance in damage that has been done by the storm. Mostly it has been
power outages and that type.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Leader of the
Official Opposition.
MR. CROSBIE:
I thank the minister for that
update.
According to the MHA for Placentia West - Bellevue – and this question is for
the Premier – a tentative deal was struck in August 2018 for the former
Marystown Shipyard after meeting with the Premier, the Mayor of Marystown, the
MHA for Burin - Grand Bank and Kiewit.
I would
ask the Premier, who is paying Kiewit for the asset?
MR. SPEAKER:
The hon. the Premier.
SOME HON. MEMBERS:
Hear, hear!
PREMIER BALL:
Thank you, Mr. Speaker.
Well, I
think it has been widely discussed publicly about the transfer of ownership
between Kiewit to the Town of Marystown. It's something that we've been actually
working with Kiewit. This is an asset that's been available. We see it as a
strategic asset for economic development on the Burin Peninsula, and that is the
reason why we got involved. That asset has been there for quite some time
bringing really no work and no value to the people of the Burin Peninsula.
The Town
of Marystown has always looked at that and saw significant opportunity for
employment and development in that area, and particularly around the aquaculture
industry that is developing on the Burin Peninsula. So, Mr. Speaker, that is the
reason why we got involved, to help facilitate a transfer of that asset into the
community of Marystown.
MR. SPEAKER:
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Leader of the
Official Opposition.
MR. CROSBIE:
I'm sure the government of
the province has laudable intentions, but the question had to do with how was
Kiewit, who owns the property, which is a private enterprise, being paid and
from where is the money coming from?
MR. SPEAKER:
The hon. the Premier.
PREMIER BALL:
So, Mr. Speaker, right now
the way it will look, the money to Kiewit will come from the community, the Town
of Marystown to support the transfer of the asset into the Town of Marystown.
And, hopefully, what you'll see then is that at some point, as has been publicly
discussed, there would be a company that would move in there and create a centre
of excellence for the aquaculture centre on the Burin Peninsula.
There is
an asset right there that exists that could bring economic impact to the Burin
Peninsula. The Town of Marystown are showing significant interest in making sure
that asset brings employment to their community, indeed to the whole province.
That is
our job as government, to help facilitate the movement of those strategic assets
so they can be used appropriately for economic development.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
Thank you.
The hon.
the Leader of the Official Opposition.
MR. CROSBIE:
Indeed, Mr. Speaker, we can all share the goal of facilitating employment and
growth in the province.
The
question, rather, was specifically as to: Where is Marystown, who's not known to
us as having a large war chest for these matters, getting the money, and what is
the purchase price?
MR. SPEAKER:
The hon. the Premier.
PREMIER BALL:
Thank you, Mr. Speaker.
I think
the Leader of the Opposition is suggesting that the community of Marystown is
not capable. That's what he's saying, that's what he's suggesting. That the
community of Marystown is not capable of getting involved in economic
development in their own community, Mr. Speaker. I have more faith in a
community the size of Marystown. I have more faith in the work they can do to
actually bring employment to the Burin Peninsula.
I have
more faith in the community of Marystown, obviously, than the Leader of the
Opposition. Maybe his chief of staff doesn't feel that way, I'm not sure. Maybe
this is the discussion he's had with him. Maybe he needs to be included in this
decision, but the money for the transfer of that asset to the community of
Marystown will come from the business arrangement that, hopefully, Marystown
will be able to get involved to bring jobs to that community.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Leader of the
Official Opposition.
MR. CROSBIE:
Mr. Speaker, I realize that
Standing Order 26(5) does say that: “A Minister may in his or her discretion
decline to answer any question.” This is a creative way of doing that.
I would
ask the Premier. Did the former Liberal candidate in the Winsor Lake by-election
attend the meeting to which I referred earlier?
MR. SPEAKER:
The hon. the Premier.
PREMIER BALL:
Mr. Speaker, the meetings
that I had was with the Town of Marystown. I don't know which meeting you're
referring to but there were quite a few that I would have had with Kiewit, with
the Town of Marystown. At that point, there was no MHA from anywhere in any
by-election or any election. It was with the community of Marystown and with the
officials of Kiewit, including the MHA who done a remarkable job in advocating
on behalf of the Burin Peninsula, Mr. Speaker.
We want
to bring jobs to the community of Marystown. We want to make sure that the Burin
Peninsula is well established to be actually involved in the aquaculture
industry on the Burin Peninsula, unlike the deal that you could not get done,
that your administration could not get done in 2015.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
Order, please!
The hon.
the Leader of the Official Opposition.
MR. CROSBIE:
The Premier is fond of
attributing to me histories that I don't have, such as having had an
administration already.
SOME HON. MEMBERS:
Oh, oh!
MR. SPEAKER:
Order, please!
I remind
Members –
MR. CROSBIE:
The question is, has the
environmental assessment been completed? And, if so, do we know the cost of the
cleanup?
MR. SPEAKER:
The hon. the Minister of
Municipal Affairs and Environment.
MR. LETTO:
Thank you, Mr. Speaker.
We have
engaged a consultant to do an environmental assessment of the Marystown
Shipyard. As a former mayor of a town that I spent many years in, I take
exception to the fact that he's alluding to the fact that Marystown is not
capable of doing their own economic development.
Mr.
Speaker, we will work with the Town of Marystown to make sure – we'll do what we
can to make this deal happen. The consultant's report is due in the next few
days, and when that report comes in we'll assess it and we'll make our decisions
accordingly.
Thank
you.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Leader of the
Official Opposition.
MR. CROSBIE:
Well, the salient fact I get
out of that is that the assessment is due in the next few days.
Who
assumes these liabilities – if I might ask the minister that – as well as future
liabilities?
MR. SPEAKER:
The hon. the Minister of
Municipal Affairs and Environment.
MR. LETTO:
Thank you, Mr. Speaker.
That's
something we'll have to assess when the consultant's report comes in. We have no
idea what the consultant is coming back with at this point. We do know the
report is being done and the assessment is being done strategically and very
thorough. When we do get the report, we'll have a better idea what's involved in
that, and we'll make our decisions accordingly.
Thank
you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Leader of the
Official Opposition.
MR. CROSBIE:
May I ask the minister, or
any other minister who could answer this: Has the Minister of Municipal Affairs
authorized the town to take over ownership of the former shipyard?
MR. SPEAKER:
The hon. the Premier.
PREMIER BALL:
Mr. Speaker, the line of
questioning that's coming from the Leader of the Opposition, and the
conversation that's actually occurring to his right about they've done the deal
– he's saying that the administration that he had served in, that they had done
the deal. If they had done that deal in Marystown, why are we asking those
questions today?
SOME HON. MEMBERS:
Oh, oh!
MR. SPEAKER:
Order, please!
PREMIER BALL:
Mr. Speaker, what we're
talking about here – thank you, Mr. Speaker.
MR. SPEAKER:
Please proceed, Premier.
PREMIER BALL:
Thank you, Mr. Speaker.
So what
we're talking about here is trying to facilitate a transfer of an asset, on the
Burin Peninsula, for economic value, into the community of Marystown. They are
prepared to take this on for economic development.
We are
not talking about an environmental liability, like Abitibi, that the former
administration put through in 2009, which put a burden on the taxpayers in this
province. This is not about Abitibi –
MR. SPEAKER:
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
Order, please!
The hon.
the Leader of the Official Opposition.
MR. CROSBIE:
The Premier, again, is fond
of sending zingers past my head, because I know nothing of the events to which
he refers.
Has the
Minister of Municipal Affairs authorized the town to take over ownership?
MR. SPEAKER:
The hon. the Premier.
PREMIER BALL:
Thank you, Mr. Speaker.
We will
work with communities in Newfoundland and Labrador, no matter where they are. If
there are economic opportunities that are available through them, we're more
than willing to work with them.
I am
very surprised today to see the Leader of the Opposition who is not aware at all
that the party that he now leads, the liabilities that were passed on to the
people of Newfoundland and Labrador, as a result of the expropriation of the
Abitibi assets.
So is
the Leader of the Opposition saying today, as he stands and asks questions, that
he is not aware of the expropriation of Abitibi?
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Leader of the
Official Opposition.
MR. CROSBIE:
Mr. Speaker, I think we've
gotten all we can squeeze out of that particular question, and the government
may wish to take note that the Minister of Municipal Affairs will have to be
involved to make this lawful.
Again,
for the Premier: Can you confirm that there were other parties interested in
obtaining the Marystown shipyard, including the Burry group in Clarenville? And
did you have discussions with other parties?
MR. SPEAKER:
The hon. the Premier.
PREMIER BALL:
Mr. Speaker, I met with
Kiewit and, at that point, they were not able to facilitate or close any deal,
including the people that you just mentioned, and others.
Mr.
Speaker, this was a private company that was looking at for saying –
AN HON. MEMBER:
(Inaudible.)
PREMIER BALL:
Mr. Speaker, I take exception from the Member opposite who is heckling and
saying that they were not Liberals. That is not true and I ask, Mr. Speaker, if
you would ask her, ask the Member opposite to just withdraw the statement that
she made across this floor. That is not accurate what she's saying. Our job was
to try and facilitate the economic development in the community of Marystown,
Mr. Speaker.
MR. SPEAKER:
There is no point of order to
the question; please proceed.
PREMIER BALL:
And our job there, the
community of Marystown, with Kiewit, they put together the proposal that was
accepted by Kiewit.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Leader of the
Official Opposition.
MR. CROSBIE:
It's not productive, in my
submission, that during Question Period the parties involve themselves in
dialogue with other people than the one asking the question.
So,
final one on this for the Premier: When does the Premier expect the deal to
close?
MR. SPEAKER:
The hon. the Premier.
PREMIER BALL:
Only when it's ready, Mr.
Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Leader of the
Official Opposition.
MR. CROSBIE:
Question for the Minister of
Finance, I ask the minister: Does he take refuge in Standing Order 26(5) which
says he may, in his discretion, decline to answer any question; or did he find
out the names of the shareholders in the numbered company that owns the land
leased to Canopy Growth?
MR. SPEAKER:
The hon. the Minister of
Tourism, Culture, Industry and Innovation.
SOME HON. MEMBERS:
Oh, oh!
MR. SPEAKER:
Order, please!
MR. MITCHELMORE:
Thank you, Mr. Speaker.
This
gives me a great opportunity to talk about the significant industry and jobs
that we are creating for cannabis here in Newfoundland and Labrador since it
became legal.
We have
been able to incentivise and get over 400 jobs that are going to be coming
through retail and production. The ones on the West Coast are going to be valued
at $54,000 in annual salaries, 120 production jobs; no money from the provincial
government, no risk – all the risk is with the company to sell and produce here
in Newfoundland and Labrador.
Whereas
the Member for Fortune Bay - Cape La Hune wanted government to take unlimited
risks. With a product like cannabis, you could import your product and then
export it, and then a company under an EDGE status would have to pay millions
and millions of dollars – the province would, the taxpayers – to ship out that
product for no value in return.
We have
a good deal.
MR. SPEAKER:
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Leader of the
Official Opposition.
MR. CROSBIE:
Again, for the Minister of
Finance: Did somebody tell him not to answer my question?
MR. SPEAKER:
The hon. the Minister of
Tourism, Culture, Industry and Innovation.
SOME HON. MEMBERS:
Oh, oh!
MR. SPEAKER:
Order, please!
MR. MITCHELMORE:
Thank you, Mr. Speaker.
One
thing I can say is that by having two cannabis production facilities here in our
province, and hopefully more – we want to see growth. I've been saying time and
time again that we've been behind when it comes to cannabis production in the
country. We didn't have any licensed facilities and now we're leapfrogging other
provinces. We're finding ways to develop the supply chain, R & D and other jobs
that are going to be created because of the incentive program that we have
developed – that template. We've been able to secure supply through the
contracts that we've put in place. There are a number of matters that are
happening.
What the
Member opposite is talking about is a private business matter. It's the same
thing that he was talking about earlier in his line of questions, asking
questions about business-to-business deals that would happen outside (inaudible)
MR. SPEAKER:
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Leader of the
Official Opposition.
MR. CROSBIE:
Question for the Minister of Transportation and Works: Is his department
monitoring the moose fencing pilot project on the Trans-Canada Highway near
Gallants, and what are the results?
MR. SPEAKER:
The hon. the Minister of
Transportation and Works.
MR. CROCKER:
Mr. Speaker, we are always
monitoring accidents on our highways in our province, and we'll always work to
ensure that the safety of our motorists is taken into consideration.
Mr.
Speaker, we work with SOPAC. I met with SOPAC just a few weeks ago on ongoing
discussions. I'm actually attending SOPAC's AGM on Saturday. We want to continue
to work with SOPAC. Moose fencing is something that we've certainly looked at.
We know the Members opposite were a part of a pilot project that was a flop with
the detection system on the highway. We want to find the best way for the safety
of the people of our province and on our highways.
Thank
you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Leader of the
Official Opposition.
MR. CROSBIE:
Just so we're all clear on
this, is the minister saying that his government will consider adding to the
inventory of moose fencing?
MR. SPEAKER:
The hon. the Minister of
Transportation and Works.
MR. CROCKER:
Absolutely, Mr. Speaker,
we're continuously looking for opportunities to improve safety on our highways,
and we're obviously looking for ways to do that. One of the main things we do is
brush cutting, and that's why we dedicate $2 million a year to brush cutting,
and as well working again with groups like SOPAC.
But yes,
we do look at moose fencing as a possible measure to help improve safety on our
highways.
Thank
you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Member for
Conception Bay South.
MR. PETTEN:
Thank you, Mr. Speaker.
question is to the Minister of Transportation and Works. Minister, yesterday you
admitted in the House that the numbered company involved in Canopy Growth
requested a meeting with your department.
You said
there was no meeting, but I ask the minister: Who from that numbered company
reached out and asked for the meeting?
MR. SPEAKER:
The hon. the Minister of
Transportation and Works.
MR. CROCKER:
Mr. Speaker, I just have to
go back in my
preamble to yesterday, and I take some offence to the questioning
from the Member opposite. At one point yesterday, he actually asked me to come
clean. Well, I can assure the Member opposite, I'm clean. Everything I do is in
the best interests of the people of Newfoundland and Labrador and the taxpayers.
SOME HON. MEMBERS:
Hear, hear!
MR. CROCKER:
I'm not interested, Mr.
Speaker, in going into the gutter with the Member opposite. What I clearly said
yesterday, very clearly said, there was an inquiry from the company –
AN HON. MEMBER:
Check
Hansard .
MR. CROCKER:
Exactly, you can check
Hansard .
Engineers in the Department of Transportation and Works, the very same competent
public servants that a few minutes ago he was complimenting, had a conversation
with an engineer from that company, which went no further.
Thank
you very much, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Member for
Conception Bay South.
MR. PETTEN:
Thank you, Mr. Speaker.
Well,
this is a simple question: Who requested the meeting?
MR. SPEAKER:
The hon. the Minister of
Transportation and Works.
MR. CROCKER:
Mr. Speaker, there was no
meeting. He's fishing without a hook again.
SOME HON. MEMBERS:
Oh, oh!
MR. CROCKER:
It's unreal that the Member
continues to ask these questions.
There
was no meeting. There was a 10-minute conversation between two engineers. One of
the things being in Transportation and Works, I often got to say, is I'm not an
engineer. Mr. Speaker, that was a very technical discussion and that was it.
There
was no meeting. There was no meeting. There was a request come in from a company
about a piece of land, and in my next answer I will explain to the Member how
this happens through the Registry of Deeds.
Thank
you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Member for
Conception Bay South.
MR. PETTEN:
Thank you, Mr. Speaker.
And that
was my question, who requested the meeting? I knew he said they never had a
meeting. He said there was a request in, simple question.
So I'll
ask: Minister, were these two engineers discussing the transfer of land on Mews
Place for $1 to the numbered company?
MR. SPEAKER:
The hon. the Minister of
Transportation and Works.
MR. CROCKER:
Mr. Speaker, it's unreal.
I can
assure you, our engineers in our department are not the people that discuss land
sales. It's the people in the Lands division that go out and assess value.
So if a
company in this province wanted a piece of land which is owned by Transportation
and Works and owned by the people of the province, they would go to the Registry
of Deeds. You'd walk into 59 Elizabeth Avenue, and you'd go in and you'd see the
land that the province owns – currently over 50 pieces of land in St. John's
belong to the people of the province – and then they would reach out to us,
which this company did, reached out to T & W and inquired about this land.
There
was no meeting. There was a conversation that ended very quickly after the two
engineers had a discussion.
Thank
you, Mr. Speaker.
MR. SPEAKER:
Thank you.
The hon.
the Member for Conception Bay South.
MR. PETTEN:
Thank you, Mr. Speaker.
So we
know that the officials in the minister's department were discussing the land on
Mews Place. So once again, that's confirmed. He won't tell us who requested the
meeting but we know they were there.
So once
again, I ask: Minister, did you or the Premier's office give direction to your
officials to transfer this land for $1 to the numbered company? Simply answer
the question.
MR. SPEAKER:
The hon. the Minister of
Transportation and Works.
MR. CROCKER:
Absolutely, positively, not.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Opposition House
Leader.
MR. HUTCHINGS:
Thank you, Mr. Speaker.
I'd like
to ask the Minister of Natural Resources: Has Nalcor cancelled the Astaldi
contract for Muskrat Falls?
MR. SPEAKER:
The hon. the Minister of
Natural Resources.
MS. COADY:
Thank you, Mr. Speaker.
We have
been advised that they have indeed done so.
MR. SPEAKER:
The hon. the Opposition House
Leader.
MR. HUTCHINGS:
Thank you, Mr. Speaker.
I think
the minister indicated it has been cancelled. My understanding is there was 30
days from the time that notice was given to come off the site to Astaldi to
make, I guess, known that they could carry on. So I assume within that 30 days
Nalcor decided that it could not occur.
I ask
the minister. What contract obligations, and now for securities and bonds, what
has been triggered in the contract to protect what's left there in bonds and
securities?
MR. SPEAKER:
The hon. the Minister of
Natural Resources.
MS. COADY:
Thank you, Mr. Speaker.
These
are important legal matters, and it is before the courts. As we can all
appreciate, we want to ensure that those sureties are there because there are
requirements moving forward. It is before the courts as we speak, Mr. Speaker,
and as that process unfolds, I'm sure we'll be advised how things will progress.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Opposition House
Leader.
MR. HUTCHINGS:
Mr. Speaker, so the
cancellation of the contract, does that impact the payment of non-union
employees who haven't received payment for pensions and health benefits and for
the non-unionized employees that are still not paid to date?
MR. SPEAKER:
The hon. the Minister of
Natural Resources.
MS. COADY:
Thank you, Mr. Speaker.
As I've
advised this House several times this week and I think last, Nalcor has been
working with a surety to work towards payment of wages for workers that stayed
post the stop-work order of October 20.
As I've
said in this House before, on October 18 the stop-work order was made. All
employees were paid up until the 20; all employees, both non-unionized and
unionized.
Subsequent to October 20, there were a number of employees at the request of
Astaldi who did stay on to do further work, Mr. Speaker. Nalcor is working with
the surety to try and arrange payment, but that is – we were waiting on
information from Astaldi.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Opposition House
Leader.
MR. HUTCHINGS:
Thank you, Mr. Speaker.
Mr.
Speaker, I know in Question Period some days ago the minister referenced a
figure of $400 million.
Could
she indicate what security and bonds are triggered now in the contract and
what's the amount there to protect wages and penalties for work that's not
completed by Astaldi up to date?
MR. SPEAKER:
The hon. the Minister of
Natural Resources.
MS. COADY:
Thank you, Mr. Speaker.
I did
say in the House there are securities, there are sureties, and there are letters
of credit to the total of $400 million. I don't have it at my fingertips what
the breakdown is for each of those. I wouldn't want to hazard a guess this
afternoon, Mr. Speaker. I think I know the levels but I'll check on the exact
ones which are letters of creditors which are surety.
Please
be assured, there has been a lot of work done; 95 per cent of the work has been
done by Astaldi. The critical path has not been impacted. We don't have any
anticipation of any challenges to first electricity.
Mr.
Speaker, things are happening at the site today.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Opposition House
Leader.
MR. HUTCHINGS:
Thank you, Mr. Speaker.
I thank
the minister for that information.
She did
indicate that the work – we heard a figure before, 90 per cent completed. So,
obviously, there's a piece of work that's not completed.
Is the
minister saying there is no adjustment to the first power indication? If work is
not completed, has a process been initiated to have that work completed by
another contractor?
MR. SPEAKER:
The hon. the Minister of
Natural Resources.
MS. COADY:
These are very important
questions, Mr. Speaker.
I have
been advised by Nalcor that the Astaldi work is 95 per cent complete and that it
has no impact on the schedule, that the critical path is still being maintained.
The work
of other contractors is ongoing. There is some outstanding work by Astaldi that
they are making arrangements to have completed. That process is ongoing.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Opposition House
Leader.
MR. HUTCHINGS:
Thank you, Mr. Speaker.
Could
the minister advise what the value figure is of the Astaldi work that's not
completed to date?
MR. SPEAKER:
The hon. the Minister of
Natural Resources.
MS. COADY:
Thank you, Mr. Speaker.
As I
said, these are legal matters that I would like to consult with Nalcor to ensure
that I have the correct figure as to what dollar figure there is in outstanding
work.
I'm sure
the Member opposite can appreciate, we want to make sure that we are protecting
the work of Nalcor as we move forward in this project, but I will endeavour to
find him some kind of an answer that would be satisfactory.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Opposition House
Leader.
MR. HUTCHINGS:
Thank you, Mr. Speaker.
This
issue we brought up here in the House, I'm just wondering – the minister for
updating the general public. We haven't heard from the CEO of Nalcor or anybody
else on this issue.
Was
there a plan to update the public on this particular aspect of the project?
MR. SPEAKER:
The hon. the Minister of
Natural Resources for a short response, please.
MS. COADY:
Thank you very much, Mr.
Speaker.
I'll try
to make a short response. Obviously, things are progressing through, from
October 18 to 20, making sure that people got home safely, making sure that
their wages were paid. Now Nalcor is working on the surety for subsequent wage
payment to the workers that stayed on the site.
All
those things are the most important first steps – are now moving towards the
next step of Astaldi's contract being terminated. And the next step after that,
of course, is determining who can fulfill the work that is outstanding.
I'm
sure, in the near future, we'll get more updates.
MR. SPEAKER:
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Leader of the
Third Party.
MS. ROGERS:
Thank you, Mr. Speaker.
Yesterday, we learned the Waterford Hospital replacement will be built using a
public-private Design Build Finance and maintenance model, a P3. This is will be
the fourth one government has commissioned.
I ask
the Premier: When Auditors Generals across the country have reported P3 models
have cost far more than they should have, why does he persist in saying P3s will
be good for the province?
MR. SPEAKER:
The hon. the Premier.
PREMIER BALL:
Thank you, Mr. Speaker.
Well,
we've engaged a number of consultants that have significant experience in doing
this work across the country and the value-for-money analysis that have been
done has come out that Newfoundland and Labrador would be the beneficiary.
Mr.
Speaker, what is very different than what we seen from prior administrations in
this province is that work, for instance, on the replacement for the Waterford
Hospital, or the Western Memorial Regional Hospital and those long-term care
sites, the services inside those facilities would be done by public sector
workers in Newfoundland and Labrador. That's a very important and a very
different distinction that we would have seen from the previous administration.
I can
tell you now when you speak to the residents and the people who are looking
forward to seeing those replacements of the buildings, they see this as a
benefit for all Newfoundlanders and Labradorians.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Leader of the
Third Party.
MS. ROGERS:
Mr. Speaker, EY was paid $1.7
million to evaluate the best financial model for building a P3 facility in
Corner Brook. EY drew up comparison budgets and then recommended a P3 project.
Then the same firm, EY, was given the procurement contract for this new project.
I ask
the Premier. Can he explain this very apparent conflict of interest?
MR. SPEAKER:
The hon. the Premier.
PREMIER BALL:
Mr. Speaker, when you look
for the consultants that are equipped and have the resources to do this work,
companies like EY in this particular case was the group that was chosen by the
department and by this government.
Mr.
Speaker, this really comes down to value for money for Newfoundlanders and
Labradorians and the cases that we looked at, in all those cases, the value for
money Newfoundland and Labrador would be the beneficiaries of that.
People
in this province have been waiting for the replacement of the Waterford Hospital
– it was opened in 1855. The best opportunity that we had to get a new facility
for mental health patients in this province, Mr. Speaker, was to use this method
and the value-for-money analysis that was done showed that Newfoundland and
Labrador – this was the best option that we could use.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Leader of the
Third Party.
MS. ROGERS:
Yes, Mr. Speaker, we
absolutely do need a replacement for the Waterford. If the Premier is so
concerned about value for money, I ask the Premier: Will he invite the Auditor
General to review the P3 contracts now going forward and report to the House on
her findings about this value for money?
MR. SPEAKER:
The hon. the Premier.
PREMIER BALL:
Mr. Speaker, in this
province, the Auditor General can come into the departments as that office so
desires. In this particular case, I would welcome the Auditor General to go in
and look at the analysis that was done.
As a
matter of fact, Mr. Speaker, I would even welcome the Leader of the Third Party
if she so sees fit that she has the expertise in dealing with all of this, if
she is so comfortable that there was a mistake that was made here and she wants
to slow down this process, I would encourage her to come on and speak to the
department herself, rather than sit in this House here, come and look at the
information, get the technical analysis that has been afforded for you. I think
you've done this already.
Mr.
Speaker, we've done the analysis. The value for money is to the benefit of
Newfoundlanders and Labradorians who are waiting to get those new buildings in
place.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Member for St.
John's East - Quidi Vidi.
MS. MICHAEL:
Thank you very much, Mr.
Speaker.
We look
forward to hearing of the invitation by the Premier to the Auditor General.
The
people of the province are learning too late that the Muskrat Falls boondoggle
could have been avoided if all the facts had been made public.
I ask
the Premier, before he embarks on multiple mini-Muskrats will he make all P3
financial documents public so it can be determined if these –
SOME HON. MEMBERS:
Oh, oh!
MR. SPEAKER:
Order, please!
MS. MICHAEL:
– projects are truly saving
money and are in the best interests of the people?
MR. SPEAKER:
The hon. the Premier.
PREMIER BALL:
Thank you, Mr. Speaker.
Well,
the former leader of the Third Party, Mr. Speaker, sat in this House, as I did,
from 2011 to 2015 in Opposition at that point in time. I think the former leader
of the Third Party recognizes the position that I had taken on the Muskrat Falls
Project, Mr. Speaker.
I did
not need an inquiry at the time, did not need people – we did our own
assessment. We knew at that point that this project was not the best project for
Newfoundlanders and Labradorians. I think the Member opposite would know that.
We sat through filibusters here trying to slow down this project. We fought to
have it put in place, put to the Public Utilities Board, the former
administration refused to do that, Mr. Speaker.
I will
assure you that any future developments in this province will be to the benefit
of Newfoundlanders and Labradorians (inaudible) –
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
Order, please!
The time
for Oral Questions has ended.
MR. BROWNE:
Point of order, Mr. Speaker.
MR. SPEAKER:
A point of order, the Member
for Placentia West - Bellevue.
MR. BROWNE:
Thank you, Mr. Speaker.
I rise
Section 49 of the Standing Orders. During Question Period there were
questions raised with respect to the Marystown Shipyard. While the Premier was
responding to one of those questions, the Member for Fortune Bay - Cape La Hune
made a comment, heckling the Premier, saying that we were searching for a
Liberal to purchase the Marystown Shipyard. We're just trying to put the people
of Marystown back to work and they expected better of the Official Opposition,
Mr. Speaker.
I ask
that you ask the Member to withdraw the comment.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
Do I have any speakers to the
point of order?
I don't
see it as a point of order. It is a disagreement between hon. Members.
Thank
you very much.
Presenting Reports by Standing and Select Committees.
Tabling
of Documents.
Notices
of Motion.
Notices of Motion
MR. SPEAKER:
The hon. the Minister of
Children, Seniors and Social Development.
MS. DEMPSTER:
Mr. Speaker, I give notice
that I will ask leave to introduce a bill entitled,
An Act To Amend The Housing
Corporation Act, Bill 40.
MR. SPEAKER:
Thank you.
Further
notices of motion?
The hon.
the Minister of Service NL.
MS. GAMBIN-WALSH:
Mr. Speaker, I give notice
that I will ask leave to introduce a bill entitled,
An Act To Amend The Highway
Traffic Act, Bill 39.
MR. SPEAKER:
Thank you.
Further
notices of motion?
Answers
to Questions for which Notice has been Given.
Answers to
Questions for which Notice has been Given
MR. SPEAKER:
The hon. the Minister of
Natural Resources.
MS. COADY:
Thank you.
During
Question Period, I was asked when Mr. Marshall may update on the Astaldi
situation.
There
will be a Quarter 3 call tomorrow, and certainly he'll be available to answer
Astaldi questions at the time.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
Thank you very much.
Further
answers to questions for which notice has been given?
Petitions.
Petitions
MR. SPEAKER:
The hon. the Member for Mount
Pearl - Southlands.
MR. LANE:
Thank you, Mr. Speaker.
At a
time when the people of Newfoundland and Labrador are dealing with high levels
of taxation, increased unemployment rates, increased food bank usage, increased
bankruptcies, many are being forced to choose between food, heat and
medications, Newfoundland Power and Newfoundland and Labrador Hydro are
continuing to seek numerous power rate increases through the Public Utilities
Board. Once the Muskrat Falls Project comes online, these rates are predicted to
further increase significantly to unmanageable levels for the average citizen of
our province. While government has indicated that they are working with Nalcor
to mitigate these rates, they've provided no detailed plan as how they intend to
do so.
Therefore, we petition the hon. House of Assembly as follows: To urge the
Government of Newfoundland and Labrador to publicly provide all the potential
options for rate mitigation and develop a comprehensive, detailed plan to deal
with current and impending power rate increases. This plan is to be provided to
the public as soon as possible to allow for scrutiny, feedback and potential
suggestions for improvement.
Mr.
Speaker, the petitions I have here today are primarily from St. John's, Mount
Pearl, Paradise, Pouch Cove, Conception Bay South areas. And without getting
into it all again, time to time, we all understand that we are looking down the
barrel of a gun in terms of where power rates could potentially go. I understand
that we know how we got there. We know how we got there and we're learning a lot
more every day as we watch the inquiry. As a matter of fact, it's absolutely
infuriating. I have to say, it is infuriating, some of the stuff that's come out
in the inquiry the last couple of days in terms of reports not being provided to
top government officials and so on, allegedly, and not being given all the
information. And it's very, very troubling, to say the least.
But
really what this petition is talking about is not how we got here, it's the fact
that we're here and people have concerns about where the power rates are going
to go. The government has said they are going to look at methods to mitigate
rates. Everyone's glad to hear that, but they're just looking for some detailed
plans as to how that's going to happen.
On a
related note, Mr. Speaker, I'm very glad to see that Newfoundland Power has
reached a settlement agreement on their proposed rate proposal, and for the next
two years rates are going to stay the same as they are. The 8.5 per cent to 9.5
per cent increase in profit margin is now off the table I've been told, and
that's good news. It wouldn't have happened if it wasn't for the people of
Newfoundland and Labrador putting the pressure on Newfoundland Power and putting
the pressure on the PUB. I'm very glad to see that happen. Power to the people.
Thank
you, Mr. Speaker.
MR. SPEAKER:
Thank you.
The hon.
the Government House Leader.
MR. A. PARSONS:
Yes, Mr. Speaker, I'm going
to call Orders of the Day.
MR. SPEAKER:
Orders of the Day.
Orders of the Day
MR. A. PARSONS:
Thank you, Mr. Speaker.
From the
Order Paper, I would call Order 2, third reading of Bill 12.
MR. SPEAKER:
The hon. the Government House
Leader.
MR. A. PARSONS:
Mr. Speaker, I move, seconded
by the Minister of Natural Resources, that Bill 12,
An Act Respecting The
Protection Of Intimate Images, be now read a third time.
MR. SPEAKER:
It is moved and seconded that
the said bill be now read a third time.
Is it
the pleasure of the House to adopt the motion?
All
those in favour, 'aye.'
SOME HON. MEMBERS:
Aye.
MR. SPEAKER:
All those against, 'nay.'
This
motion is carried.
CLERK (Barnes):
A bill,
An Act Respecting The
Protection Of Intimate Images. (Bill 12)
MR. SPEAKER:
This bill has now been read a
third time and it is ordered that the bill do pass and its title be as on the
Order Paper.
motion, a bill, “An Act Respecting The Protection Of Intimate Images,” read a
third time, ordered passed and its title be as on the Order Paper. (Bill 12)
MR. SPEAKER:
The hon. the Deputy
Government House Leader.
MS. COADY:
Thank you, Mr. Speaker.
I call
from the Order Paper, Order 3, third reading of Bill 32.
MR. SPEAKER:
The hon. the Deputy
Government House Leader.
MS. COADY:
Thank you, Mr. Speaker.
I move,
seconded by the hon. Minister of Health and Community Services, that Bill 32, An
Act To Amend The Labour Standards Act, be now read a third time.
MR. SPEAKER:
It is moved and seconded that
the said bill be now read a third time.
The hon.
the Member for Cape St. Francis.
MR. K. PARSONS:
Thank you very much, Mr.
Speaker.
usually don't get up on third readings, but in this case I have to thank the
minister, the acting minister at the time, for arranging for the people from the
Assessment Agency to come forward. And you, too, Mr. Speaker, myself and you
attended the briefing. I know it was requested by other Members who didn't show
up, but we were very informed of what we got that day. I just want to thank the
people, especially Mr. Martin from the Assessment Agency for coming and spending
an hour or so with us and explaining it.
Again,
in the future it's probably something we should do when we do have questions
about certain bills to get people in like we did. Again, I know you attended the
meeting and I attended the meeting and it was very informative, and I just want
to thank the department for that.
Thank
you very much.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
Is it the pleasure of the
House to adopt the motion?
All
those in favour, 'aye.'
SOME HON. MEMBERS:
Aye.
MR. SPEAKER:
All those against?
The
motion is carried.
CLERK:
A bill,
An Act To Amend The Labour Standards Act. (Bill 32)
MR. SPEAKER:
This bill is now read a third
time and it is ordered that the bill do pass and its title be as on the Order
Paper.
On motion, a bill, “An Act To Amend The
Labour Standards Act,” read a third time, ordered passed and its title be as on
the Order Paper. (Bill 32)
MR. SPEAKER:
The hon. the Deputy
Government House Leader.
MS. COADY:
Thank you, Mr. Speaker.
I call
Order 4, third reading of Bill 34.
MR. SPEAKER:
The hon. the Deputy
Government House Leader.
MS. COADY:
Thank you, Mr. Speaker.
I move,
seconded by the Minister of Health and Community Services, that Bill 34,
An Act
To Amend The Assessment Act, 2006, be now read a third time.
MR. SPEAKER:
It is moved and seconded that
the bill be now read a third time.
The hon.
the Minister of Municipal Affairs and Environment.
MR. LETTO:
Thank you, Mr. Speaker.
I think
the hon. Member had the wrong bills, but that's okay. I do accept the fact that
when this bill was in Committee there was a request from the Opposition to have
a briefing with the Municipal Assessment Agency to get some clarification on how
we could go from three years to one year without costing the MAA any more
resources and any more cost. I think the MAA has come back and pretty clearly
defined how that could happen, is through technology and other means.
In fact,
Mr. Speaker, it's ironic that they would talk about increased cost. Right now,
the cost per parcel of land is $27. That's what it costs municipalities. Because
of what we're doing here today, and because of efficiencies found in the MAA,
there's a good chance that price will decrease – decrease, Mr. Speaker – and not
increase.
I'll
have to say, the hon. Member for Cape St. Francis did attend the meeting;
unfortunately, the Member who requested this briefing did not attend.
Thank
you, Mr. Speaker.
MR. SPEAKER:
Is it the pleasure of the
House to adopt the motion?
All
those in favour, 'aye.'
SOME HON. MEMBERS:
Aye.
MR. SPEAKER:
All those against, 'nay.'
The
motion is carried.
CLERK:
A bill,
An Act To Amend The
Assessment Act, 2006. (Bill 34)
MR. SPEAKER:
This bill is now read a third time and it is ordered
that the bill do pass and its title be as on the Order Paper.
motion, a bill, “An Act To Amend The Assessment Act, 2006,” read a third time,
ordered passed and its title be as on the Order Paper. (Bill 34)
MR. SPEAKER:
The hon. the Deputy
Government House Leader.
MS. COADY:
Thank you, Mr. Speaker.
Motion
MR. SPEAKER:
Motion 2.
The hon.
the Deputy Government House Leader.
MS. COADY:
Mr. Speaker, I move, seconded
by the Minister of Health and Community Services, the following resolution:
BE IT
RESOLVED that the Member for the District of Harbour Grace - Port de Grave be
appointed Deputy Chair of Committees for the remainder of the Forty-Eighth
General Assembly.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
Do I have any speakers to the
motion? Seeing none.
Is the
House ready for the question?
Is it
the pleasure of the House to adopt the motion?
All
those in favour, 'aye.'
SOME HON. MEMBERS:
Aye.
MR. SPEAKER:
All those against, 'nay.'
The
motion is carried.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Deputy
Government House Leader.
MS. COADY:
Thank you, Mr. Speaker.
I call
from the Order Paper, Order 8,
An Act To Amend The Workplace Health, Safety And
Compensation Act No. 2. (Bill 36)
MR. SPEAKER:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
Mr. Speaker, I move, seconded
by the MHA for Harbour Main, that Bill 36,
An Act To Amend The Workplace Health,
Safety and Compensation Act No. 2, be now read a second time.
MR. SPEAKER:
It is moved and seconded that
Bill 36,
An Act To Amend The Workplace Health, Safety and Compensation Act No.
2, be now read a second time.
Motion,
second reading of a bill, “An Act To Amend The Workplace Health, Safety and
Compensation Act No. 2.” (Bill 36)
MR. SPEAKER:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
I am pleased to stand today
to speak to the amendments to Bill 36,
An Act To Amend The Workplace Health,
Safety and Compensation Act No. 2. We know that workplace injuries have long
lasting physical and emotional impacts on many individuals and families
throughout Newfoundland and Labrador.
Before I
speak specifically to the amendments we are bringing to the floor of the House
today, I would like to provide you with a brief overview of workplace injury
rates and the improvements we've made. We know there have been significant
improvements in workplace safety in our province. More and more workers are
returning home safely to their loved ones at the end of their work day.
In 2017,
for the third consecutive year, the lost time incident rate due to workplace
injury or illness in Newfoundland and Labrador remained at an all-time low of
1.5 per 100 workers, which is among the lowest in Canada; 92 per cent of
employers in our province are injury free. This is a direct result of the
co-operation and hard work from all safety partners including employers,
workers, labour, industry safety associations, training providers and
government.
As an
example, our province now has eight mandatory safety training programs that are
standardized and regulated for over 60,000 workers each year – about 25 per cent
of the workforce. As a result, the rate of falls from height has declined 31 per
cent since specific training requirements were instituted in occupational health
and safety legislation. Newfoundland and Labrador is the only province with a
provincially regulated occupational health and safety high school course: OHS
3203. We've had a dedicated focus on creating awareness among young workers, and
we can now proudly state that workers aged 15 to 24 lead the province in
workplace safety.
The
injury rate among 15- to 24-year-old workers remains stable in 2017, for the
second consecutive year, with a 1.3 per 100 workers, and remains below the
provincial rate. They consistently have a lower lost-time incident rate than the
provincial rate. Mr. Speaker, these young workers are our future. We must
continue to arm them with workplace safety fundamentals to carry forward
throughout their careers.
Back in
2000, the injury rate was more than double what it is today. Workers today
continue to receive safety training, are more informed on how to identify
workplace hazards and are using safe work practices. We also know the
devastating impacts that workplace injuries are having on workers and families
in our province today.
WorkplaceNL serves approximately 13,000 injured workers in our province every
year. On average, 13 workers are still being injured, or falling ill, due to
their work each day. We know that, in an instant, a person's life can change
forever. For some individuals, the effects are felt for a short period of time,
and they are able to return to work relatively quickly, but for others, it may
last a lifetime.
Reducing
workplace incidents is everyone's responsibility and, together, we must continue
to find ways to ensure that everyone returns home, healthy and safe, at the end
of each workday.
WorkplaceNL remains committed to maintaining a sustainable workplace injury
system for workers and employers in this province. We also remain committed to
finding ways to improve the system. That is why, Mr. Speaker, I am very pleased
today that in this hon. House we will debate an amendment to the
Workplace Health, Safety and Compensation Act to make retirement
benefits available for more injured workers in our province.
The new
retirement benefit will be a one-time lump sum payment of 5 per cent of extended
earnings loss benefits, plus interest. For workers who are previously part of an
employer-sponsored pension plan, the payment will be 10 per cent, plus interest.
This
change will apply to all injured workers who receive extended earnings loss
benefits from WorkplaceNL on or after January 1, 2019. This means that it
applies to workers receiving benefits in 2018 that continue into 2019.
Workers
will receive the one-time retirement benefit when they turn 65 years of age,
even if they are no longer receiving extended earnings loss benefits at that
time. Should an injured worker pass away before the age of 65, their dependant
may qualify for the benefit. I would like to highlight this change, Mr. Speaker,
as the previous program did not pay dependants. Injured workers will have the
flexibility to invest or spend their tax-free lump sum payment according to
their own choice.
Mr.
Speaker, this amendment will make the calculations for retirement benefits
easier to understand, and we have also reduced the paperwork involved. We have
reduced the red tape. Injured workers can expect to receive their lump sum
payment faster than before. Under the previous program, it could take up to two
years to process the more complex cases.
These
amendments will also increase the number of eligible injured workers. In fact,
the previous program excluded approximately 45 per cent of injured workers,
including those who did participate in an employer-sponsored pension plan at the
time of their injury – many of whom were women. Therefore, the new retirement
benefit program is more inclusive and equitable.
Mr.
Speaker, the workers' compensation system in our province is fully funded at
131.6 per cent, as of December 31, 2017. It can now sustain a benefit increase
for injured workers without increasing the average base assessment rate paid by
employers. In fact, the average assessment rate for employers was lowered to
$1.90 per $100 of assessable payroll for 2018, a 31 per cent decrease since
2013. Remaining fully funded ensures the security of funds to pay for the
current and future costs of workplace injury and illness in Newfoundland and
Labrador.
As I
referenced earlier, Mr. Speaker, the positive trends in workplace safety across
our province, along with the lost-time incident rate at an all-time low of 1.5
per 100 workers, has resulted in fewer claims. This, in turn, has led to lower
employment assessment rates. The change in retirement benefits we are debating
in this hon. House today will have an initial cost of $23.7 million. But there
will not be any further additional cost to employers. These costs will be
considered with determining the assessment rates to be paid by employers next
year and will not result in a rate increase at this time.
Mr.
Speaker, over the past several years we have made a number of significant
improvements to workers' compensation system, with a view to improving the lives
of the many individuals in our province who have experienced a workplace injury
or illness.
Mr.
Speaker, back in December of 2016 we announced the implementation of presumptive
cancer coverage for career and volunteer firefighters. Our government recognized
the need for a benefit that firefighters have been seeking for more than a
decade and was already provided in most other provinces.
We also
increased the income replacement rate for injured workers and updated the mental
stress policy to make it more inclusive. These are but a few of the many
positive changes we have made in the workers' compensation system to help
improve the lives of injured workers.
Today
represents one more positive initiative in our efforts to improve the workers'
compensation system for injured workers and their families in Newfoundland and
Labrador. We know this legislation is welcomed by many injured workers in our
province. It is one more step along our path to help reduce the financial,
emotional and physical impacts workplace incidents are having on injured workers
and their families and their communities.
Our
government is proud of the amendment we are debating today. Proud of the fact
that we are making retirement benefits available for more injured workers. This
debate also provides an opportunity to continue the dialogue on workplace
safety. Together with employers, workers, industry safety associations, employer
and labour advocates we continue to build an even stronger culture of safety in
our province.
Workplace health and safety is everyone's responsibility and we will continue to
work together with everyone who plays a role in keeping our workplaces safe as
well as supporting our injured workers.
As I
have stated previously in this hon. House, it is important that we constantly
review and amend our legislation to ensure it is meeting the needs of the people
of our province.
I am
pleased that we are here today to debate this amendment to the
Workplace Health, Safety and Compensation
Act.
Thank
you, Mr. Speaker.
MR. SPEAKER:
Thank you.
The hon.
the Member for Fortune Bay - Cape La Hune.
MS. PERRY:
Thank you, Mr. Speaker.
It's
certainly an honour and a privilege to rise in this House and speak to Bill 36,
An Act to Amend the Workplace Health, Safety and Compensation Act No. 2. Mr.
Speaker, the purpose of this bill, as the minister just outlined, is to amend
the Workplace Health, Safety and
Compensation Act to repeal the currently monthly replacement benefit
that is available to injured workers and replace it instead with a tax-free lump
sum retirement benefit.
First, I'm going to talk a little bit about some of the
background on the bill, Mr. Speaker. The
Workplace Health, Safety and Compensation Act comes under the purview of
Service NL and the Minister of Service NL, of course, is responsible for
WorkplaceNL.
Under
the authority of the act, WorkplaceNL administers a mandatory, employer-funded,
no-fault work injury insurance system, and there are various benefits and
services available to injured workers through WorkplaceNL. The pension
replacement benefit that is being repealed with Bill 36 is one such example of
the types of benefits that are available from WorkplaceNL for those injured on
the job.
What is
the pension replacement benefit, for the purposes of people who may be watching
here today? According to WorkplaceNL's Injured Workers Handbook: if an
individual is receiving compensation benefits from WorkplaceNL and they turn 65
years of age, wage-loss benefits usually cease.
Currently, in such circumstances with the act as it's presently written, in such
instances a person can apply for a pension replacement benefit. In order to
actually receive the pension replacement benefit, the individual must show a
loss of retirement income from either the Canada Pension Plan or a registered
employer-sponsored pension as a result of their injury.
So for
the years they were receiving compensation, they were no longer paying into
these pension funds and, of course, as a result, once they reach 65 their
benefit would be reduced. If that was the case and they were able to demonstrate
their loss of benefits, they may be entitled to the amount of pension lost due
to their work-related injury.
describing the current pension replacement benefit, during our briefing
yesterday WorkplaceNL officials noted that the pension replacement benefit is
not payable to a dependent or spouse upon the death of the worker. So, in such a
situation, you have two people living as seniors on a fixed, reduced income and
if the person who is a recipient of the WorkplaceNL pension benefit passes away,
then there is no portion of that that can be availed of by their partner or
spouse.
As well,
45 per cent of potentially, eligible injured workers do not quality for this
benefit once they reach age 65. Often the reason for their inability to qualify
is the difficulty in producing the required documentation to show how they
suffered a pension loss.
The
process of applying for the pension replacement benefit, another current
impediment that was identified is that when you apply for the pension
replacement benefit now, it can be a difficult and lengthy process as the
relevant supporting documents have to be gathered and the actuarial assessments
have to be carried out. We were informed yesterday in the briefing that this can
take anywhere from eight months to two years, which is a fairly lengthy time
frame for those who reach the age of 65 to continue on living without any type
of additional supports.
So with
the amendments that are being proposed in Bill 36, the monthly pension
replacement benefit will be repealed and replaced with a new lump-sum retirement
benefit. It will take effect on January 1, 2019. So we're just about a
month-and-a-half away from that.
Any
individual who is currently in receipt of the pension replacement benefit under
the existing program, however, will stay on the old system. So there is a
provision, Mr. Speaker, for grandfathering those who are already in the
(inaudible) –
SOME HON. MEMBERS:
Oh, oh!
MR. SPEAKER:
Order, please!
MS. PERRY:
– system to stay there. But
anyone who turns 65 and is on Workers' Comp in 2019, they will fall under the
new system which is being introduced through this bill.
What is
the new retirement benefit going to look like? Well, it's calculated to be a
percentage of a total extended earnings loss benefits which will either be 5 per
cent or 10 per cent, depending on the circumstance of the individual, plus
interest. It will be 5 per cent for persons just paying into CPP and 10 per cent
for those who have also paid into an employer sponsored pension plan prior to
their injury. It will be a tax-free, lump-sum payment at the age of 65 and all
extended learning loss recipients will receive a benefit if active any time on
or after January 1, 2019.
Mr.
Speaker, a significant change in this new bill, or new law that's being brought
forward, is that the new benefit will be payable to a dependant such as a spouse
upon the death of the injured worker. It is projected that the average lump-sum
payment is estimated to be about $44,000. That will be the average payment.
Officials noted there will be significant upfront costs associated with
switching to the new retirement benefit but they are projecting within the
long-term it should result in savings. There will be an initial cost of $23.7
million to WorkplaceNL's injury fund, but they are projecting that in the long
run this will translate into a savings of $700,000 in annual savings to the
fund. In addition to that, they're projecting that the expense now being paid
out to actuarial services is about $200,000 a year. So that money will be saved
as well.
The
switch to a lump-sum payment is also going to come at a cost to government,
though, Mr. Speaker, because government is a self-insured employer. WorkplaceNL
officials stated there will be added budgetary pressure on some government
departments upfront, but over the long-term there would be a future benefit
liability savings of $4.9 million. What that immediate pressure is going to be
on some government departments upfront, we don't have the information provided
to us on that but it should be reflected in the upcoming budget documents, I
would think, Mr. Speaker.
Officials also noted that the switch to the new model will not impact employer
assessment rates at this time. We were unable to get any clarity with respect to
the quote at this time. We're still a bit unclear as to what that means in terms
of future outlook. Will there be an impact on employers in the long run? Maybe
that is something we can talk about when we get to Committee of the Whole and
see if we can get some more clarity on that issue.
The
positive impacts of the proposed changes were highlighted in the briefing we
had. These include – and I'll just reiterate them again for anyone in the public
who may be watching this with keen interest and are currently recipients of this
benefit that will be impacted.
It is
projected, by department officials, that more people will be covered under this
new retirement benefit because there'll be a greater catchment area in terms of
the need to demonstrate your pension's loss won't be there. So more people, the
4 per cent to 5 per cent of people who are now falling through the cracks will
most likely be encompassed in this new benefit.
It's
predicted that this will be, in particular, of benefit for women, and up to 54
per cent more women will be covered. All extended earnings loss recipients will
receive a benefit. The new benefit will be payable to a dependant upon the death
of the worker, which again is something that isn't happening now and certainly
will be of significant help in reducing financial hardships once a person's
partner has passed on.
Individuals will be treated more equally and the process will be far less
cumbersome for injured workers and WorkplaceNL, so it's anticipated there should
be a substantial administrative savings as well, Mr. Speaker.
Workers'
compensation boards in six provinces now across the country have a benefit
payable at age 65, based on a percentage of financial benefits. And these are –
I'll explain some of them now – Nova Scotia, Ontario and British Columbia
provide for 5 per cent of benefits, while New Brunswick, Saskatchewan and Yukon
provide for 10 per cent of benefits. I guess what the bill here is proposing in
Bill 36 is that the Province of Newfoundland and Labrador will actually be using
a hybrid of these and the rate will be from 5 to 10 per cent, depending on the
individual's own circumstance.
During
our briefing yesterday, WorkplaceNL officials stated that there has been
frustration with the current model, but the real driver to make the amendments
is the growth in the liability of the current system. That liability was $22
million in 2007, which represented about 3 per cent of the value of the injury
fund. But here we are 10 years later, and that amount has grown from $22 million
to $104 million, which represents 9 per cent of the injury fund. And going
forward that number would continue to climb. So by introducing this new measure,
they're hoping to cap the liability where it is and, moving forward, minimize
any future liabilities for the taxpayers of the province, and for the injury
fund – the business taxpayers, I guess.
Officials stated that representatives from the Federation of Labour and the
Employers' Council sit on the WorkplaceNL board and, as such, were consulted.
They said that the response has been positive. It was not indicated whether
representatives of the injured workers or other groups were consulted, Mr.
Speaker. We made some effort to reach out today, but we didn't have a whole lot
of time before the bill was called. So we certainly would like to do more
consultation before really finalizing where it is those most impacted by this
bill, where their thought processes are on these changes.
Officials said that an average of 200 clients will turn 65 each year, and about
12 per cent of clients could have been better off under the old program, as
their monthly payment could have been more beneficial. That speaks more to
longevity, Mr. Speaker, if someone lived a very long life, and they would draw a
monthly benefit. So it's anticipated that about 12 per cent of people will be
impacted by the lump sum.
In terms
of the proposed amendments now, Mr. Speaker, I'll just briefly give an overview
with respect to these. Subsection 2(1) of the act is amendment to add a
definition for employer-sponsored pension plan which includes, under
section
(j.1)(i) “a pension plan that is registered with and certified by the
Superintendent of Pensions under the
Pension Benefits Act, 1997 or an equivalent Act of another province or of
the Parliament of Canada; and (ii) a pension plan that is established under an
Act of the province.”
Section
75 of the current act outlines requirements for the pension replacement benefit
paid to eligible injured workers in receipt of wage loss benefits at the age of
65. It is based on the principle of compensation for demonstrated pension loss
and provides monthly pension replacement benefits. It is not payable to the
dependant's spouse upon the death of the worker. But, with Bill 36,
section 75
will be repealed and replaced with text outlining details and requirements for
the new retirement benefit.
Just
again, for purposes of increasing awareness to our listening public, the new
retirement benefit will be a percentage of the total extended earnings loss
benefits, plus interest, and it will be a lump sum, non-taxable at the age of
65. The payment will be 5 per cent of eligible earnings for workers without an
employer pension plan, or 10 per cent for those who have an employer-sponsored
pension plan, Mr. Speaker.
All
extended earning loss recipients will receive the benefit if active and in time
on or after January 1, 2019. The new benefit will be payable to a dependant upon
death of a worker. So again, I've said that several times, Mr. Speaker, but it's
important that people realize some of the changes and these are beneficial
changes in terms of the portability of the benefits being payable to a
dependant.
Mr.
Speaker, these proposed amendments will come into effect on January 1, which is
within about a month and a half or so. But we do still have a lot of questions
surrounding the bill. It is a rather significant change and one we certainly
would have appreciated more time to do more research with. Some of the questions
we have outstanding and that we will be posing in Committee of the Whole pertain
to how does this impact the other benefits that a person at the age of 65 would
have. For example, in the past, at the age of 65 you received a monthly benefit,
which was spread over 12 months and factored into your total gross income. From
your total gross income, Revenue Canada determines your eligibility for the
Guaranteed Income Supplement. If you cannot receive the Guaranteed Income
Supplement, you cannot receive the provincial drug card because it's a
stipulation you must be in receipt of the GIS in order to avail of a provincial
drug card.
Many
people think that automatically at the age of 65 you will qualify for a drug
card, but such is not the case. It really does depend on your total gross
income. So how does this impact from a taxation point of view and a calculation
of other benefits that seniors receive? Will this lump sum, then, have to be
written off over the next three or four years and thereby prevent someone who is
on workers' comp from availing of the GIS and drug card?
So,
these are some of the types of outstanding questions that we have and that we
will hopefully be able to get some more clarity on once we get into Committee of
the Whole.
I thank
you, Mr. Speaker, for your time, and look forward to the rest of the debate.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
Thank you.
The hon.
the Member for Harbour Main.
MS. PARSLEY:
Mr. Speaker, I'm very pleased
to rise in this hon. House today to speak on Bill 36,
An Act to Amend the
Workplace Health, Safety and Compensation Act.
Like all
MHAs in this House, we have heard the stories of workplace incidents that have
forever changed the lives of our constituents. Too many times we see the
tremendous impacts that workplace injuries have on their physical, emotional and
social health.
While it
was just last week that I became parliamentary secretary to the Minister
Responsible for WorkplaceNL –
SOME HON. MEMBERS:
Hear, hear!
MS. PARSLEY:
– I am aware of the
tremendous work that has been done to help improve the lives of injured workers
in our province. I have learned of the tremendous effort that is underway by
many dedicated individuals to help improve the lives of injured workers in our
province.
As the
Minister of Service NL said earlier back in December 2016, our government
announced implementation of presumptive cancer coverage for career and volunteer
firefighters. This coverage represented a benefit that firefighters had been
seeking for a long time, and was already provided in most other provinces. It
means that firefighters diagnosed with specific cancers are presumed to have
contracted the disease as a result of their work, and their adjudication
processing faster through WorkplaceNL.
They can
now receive wage loss benefits, medical aids and certain other benefits through
Workplace NL, while health care costs associated with firefighters' cancer
treatments are paid through the medical care plan.
Earlier
this year, our government initiated a review of WorkplaceNL's mental stress
policy in order to explore options through a modernized approach of work-related
mental health issues, including post-traumatic stress disorder. Changes were
made to the policy to recognize that work-related mental illness issues may be
caused by exposure to multiple traumatic events.
It also
includes events that are an inherent part of our occupation, such as first
responders, witness fatalities. The revisions, all in our policy, to be applied
more fairly across their occupations. The worker must have a diagnosis from a
regulated health care professional such as a physician, nurse practitioner,
psychologist, psychiatrist, and demonstrate exposure to one of our most
traumatic events.
Mr.
Speaker, as the Minister Responsible for WorkplaceNL has indicated publicly on
many occasions, work continues on this very important matter. Our government
also increased the income replacement rate from 80 to 85 per cent of pre-injury
net earnings. This increase has certainly been a benefit to injured workers or
their dependents. It gave us the ability to improve the lives of approximately
13,000 injured workers or the spouses of deceased workers, and that is
significant. It is especially significant given the income replacement rate that
has not increased since 1998.
Mr.
Speaker, last February, WorkplaceNL and Service NL launched a new five-year
workplace injury and illness prevention strategy. This plan was developed in
consultation with injury prevention partners and stakeholders and is aimed at
helping protect workers from hazards in the workplace.
Mr.
Speaker, serious injuries have increased by 21 per cent over the last decade.
These types of injuries can be devastating to injured workers and their
families. We also know that young workers, those aged 15 to 24 years, have a
lower injury rate than the provincial rate. We need to continue to provide a
solid foundation of safety awareness to that generation so they will carry that
proactive safety culture throughout their careers.
Our
workplace safety programs also need to respond to the aging demographics of our
workplace. While we need to maintain a focus on preventing workplace injuries,
we also maintain focus on those who have already been injured. The amendment to
make retirement benefits available for more injured workers in Newfoundland and
Labrador is a wonderful example of this effort.
When an
injured worker turns 65 years old, they will receive a one-time, lump-sum
pension payment of 5 per cent of extended earnings loss benefits paid by
WorkplaceNL, plus interest. Those injured workers who were members of an
employer-sponsored pension program will receive 10 per cent of extended earnings
loss benefits, plus interest. Plus, one of the greatest aspects of this
amendment is its impact on the number of injured worker who were previously
excluded under the previous program. Given it had excluded approximately 45 per
cent of injured workers, this change we're debating today is significant.
I am
proud to stand with my colleagues today on a bill that will have such a
profound, positive impact on the lives of so many injured individuals. It
reminds me of why I chose to serve the public of my district and the province in
the first place – to make a difference. It represents one of the most important
issues we have to tackle as a government for injured workers in Newfoundland and
Labrador.
Again,
Mr. Speaker, I want to say how delighted I am to rise to speak to these
amendments. I think it's important to also highlight, once again, the fact that
there will not be any additional costs to employers as a result of this bill. I
think it's also important to highlight the fact that a dependant spouse will now
be eligible for the benefit should an injured worker pass away before the age of
65. This was not the case under the previous system.
We will
continue to work to improving the workers' compensation system in our province,
for both injured workers and employees. We will also continue our efforts to
help keep safety foremost in everyone's thinking, as one workplace injury is one
too many.
Thank
you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Member for St.
John's East - Quidi Vidi.
MS. MICHAEL:
Thank you very much, Mr.
Speaker.
It is
good to stand today and speak to Bill 36,
An Act To Amend The Workplace Health,
Safety and Compensation Act.
I have
to say, before receiving the bill and being briefed on it, I was not aware of
the situation that existed with regard to the monthly pension replacement
benefit which is paid to people on workers' compensation when they turn 65.
Knowing
what the situation is – and it's been outlined by the minister and also by the
Member for Fortune Bay - Cape La Hune. Knowing the current situation and the
inequities that are in the current situation, I think it's really good that
government is bringing this bill here to the floor. It'll do two things: it will
make things better, both for people receiving the benefit and for their spouses,
especially when the person receiving the benefit dies; and, it'll be better also
internally in government with regard to the red tape. Because even the
administration that's involved is difficult both for staff and also for the
workers receiving the benefit.
We are
told the documentation that the person who is on workers' comp has to produce in
order to receive the benefit is quite extensive. It includes old records of
pension payments, et cetera, and there has to be an actuarial assessment done.
It can go on for months, sometimes up to a couple of years. So it seems to me
the system we have really is not working well, especially for those who should
get the benefits and for their spouses. It's extremely important I think that
the government has taken action on this and has brought this bill forward.
We are
told by the officials that it will not affect employer assessment rates, and I
think that's important as well. So while the lump-sum payment will benefit the
recipient, this new way of paying the benefit will not affect the employer
assessment rates. That's something we would be happy about as well.
Moving
to the lump-sum payment will mean a future liability savings to the government.
SOME HON. MEMBERS:
Oh, oh!
MR. SPEAKER:
Order, please!
MS. MICHAEL:
I won't be crass and say
that's the reason the government is doing this. I would hope they're doing it
mainly for the recipients, and I'm sure they are, but it's also not a bad thing
that government will save money by using this new method without the recipients
themselves suffering a loss of income.
Some of
the positive impacts; the average benefit, the lump-sum payment will be $40,000.
The new benefit will be paid to the spouse if the worker is deceased, and more
people will qualify for it. I think that's really important. Fifty-four per cent
more women will qualify – because so many women aren't part of a pension plan
and they will qualify for it.
There
will be no more long waits. A small group who has yet to turn 65 may have been
better off under the monthly payment. If they live long enough, their monthly
benefits might be higher than a lump sum. That's more a possibility for somebody
with a high earning, like a miner at IOC, for example. But it would be a small
group, and the majority, a larger group would benefit from the new system.
There is
one question that we have, and we can ask it in Committee if the minister
doesn't get to it when she stands again, and it has to do with the income tax.
Will CRA consider this lump sum payment taxable income?
remember – and we haven't had a lot of time to work on this. I know there was a
good briefing yesterday, but it was only yesterday. But I do have a memory of
something happening a few years ago with regard to payments to public service
sector workers under one of the agreements, and there was lump sum money
involved, and the lump sum payments were taxable under CRA.
So that
is a question for us. People may need a tax-free savings account or a similar
mechanism to spread the money out over a number of years and not be taxed. So it
is a serious question, and I hope that we might get an answer from the minister.
I know
that six other provinces do have some form of lump sum benefit, so perhaps this
is an issue that has been dealt with. Nova Scotia, Ontario and British Columbia
pay out 5 per cent across the board; New Brunswick, Saskatchewan and Yukon pay
out 10 per cent; and we will pay out 5 per cent or 10 per cent, depending on the
source of the pension.
brings us in line with several other jurisdictions in the country, which is
good. As I said, perhaps because it already exists, this issue of potential for
its being a taxable income has been dealt with, and I certainly hope that we
will get an answer to that. As it happens, this won't be grandfathered. People
who are the existing monthly benefit will stay in that system. So the new system
is for moving forward. I think it's going to be effective January 1, 2019, so
this coming January.
So we'll
be happy to support this bill, Mr. Speaker.
Thank
you very much.
MR. SPEAKER:
Is the House ready for the
question?
The
motion is that Bill 36 be now read a second time.
Is it
the pleasure of the House to adopt the motion?
All
those in favour, 'aye.'
SOME HON. MEMBERS:
Aye.
MR. SPEAKER:
Carried.
CLERK (Murphy):
A bill,
An Act To Amend The
Workplace Health, Safety And Compensation Act No. 2. (Bill 36)
MR. SPEAKER:
This bill has now been read a
second time.
When
shall the bill be referred to a Committee of the Whole House?
MS. COADY:
Now.
MR. SPEAKER:
Now.
motion, a bill, “An Act To Amend The Workplace Health, Safety And Compensation
Act No. 2,” read a second time, ordered referred to a Committee of the Whole
House presently, by leave. (Bill 36)
MR. SPEAKER:
The hon. the Deputy
Government House Leader.
MS. COADY:
Mr. Speaker, I move, seconded
by the Minister of Service NL, that the House resolve itself into a Committee of
the Whole to consider Bill 36.
MR. SPEAKER:
It is moved and seconded that
I do now leave the Chair for the House to resolve itself into a Committee of the
Whole to consider the said bill.
Is it
the pleasure of the House to adopt the motion?
All
those in favour, 'aye.'
SOME HON. MEMBERS:
Aye.
MR. SPEAKER:
Carried.
motion, that the House resolve itself into a Committee of the Whole, the Speaker
left the Chair.
Committee of the
Whole
CHAIR (Warr):
Order, please!
We are
now considering Bill 36,
An Act To Amend The Workplace Health, Safety And
Compensation Act No. 2.
A bill,
“An Act To Amend The Workplace Health, Safety And Compensation Act No. 2.” (Bill
36)
CLERK (Barnes):
Clause 1.
CHAIR:
Shall clause 1 carry?
The
Chair recognizes the hon. the Member for Fortune Bay - Cape La Hune.
MS. PERRY:
Thank you, Mr. Chair.
I have a
number of questions for the minister. The first one is: Why are these changes
being made now at this point in time?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
We are now responding to a
request that was in the stat review and the injured workers and individuals who
represent injured workers are looking forward to this change, as is the
Employers' Council.
CHAIR:
The hon. the Member for
Fortune Bay - Cape La Hune.
MS. PERRY:
Can you provide some
elaboration for us with respect to what the proposed changes are being driven
by?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
Mr. Chair, they are being
driven by the requests from the Newfoundland and Labrador Employers' Council,
requests from the Newfoundland and Labrador labour representatives, and the
individuals.
There
was a stat review completed by the previous administration. There were extensive
consultations done and this was one of the recommendations that was put forward.
CHAIR:
The hon. the Member for
Fortune Bay - Cape La Hune.
MS. PERRY:
Thank you, Mr. Chair.
How many
individuals are currently in receipt of the monthly pension replacement benefit?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
I can't get the exact number
that's receiving pension benefit right now. I will get it for you though. There
are 1,300 clients in receipt of WorkplaceNL benefits.
CHAIR:
The hon. the Member for
Fortune Bay - Cape La Hune.
MS. PERRY:
Thank you, Minister and thank
you, Mr. Chair.
Can you
tell us what the amount of the average monthly benefit being paid to an
individual is currently and, furthermore, can you confirm for this House that
all of those individuals will continue to receive the monthly benefit once the
new system comes into effect?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
So, it's done on an
individual basis, as you are aware. Each individual is based under the MCAE for
that particular year and the percentage of their income. I can't give you an
exact amount because the individual range, the incomes are totally varied.
The
individuals that are presently receiving the pension benefit today will continue
to receive the same pension benefit that they're getting. Right up until
December 31, 2018, individuals will be under the old system. January 1, 2019,
they'll be under the new system.
CHAIR:
The hon. the Member for
Fortune Bay - Cape La Hune.
MS. PERRY:
Thank you, Mr. Chair.
The lump
sum payment, as we understand it, is going to be tax free. Is the monthly
benefit that individuals are receiving under the current regime tax free as
well?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
Yes, this is a tax-free
benefit and there are 1,200 individuals receiving the pension plan today.
CHAIR:
The hon. the Member for
Fortune Bay - Cape La Hune.
MS. PERRY:
Thank you, Mr. Chair.
Are the
lump sum payments for these benefits consistent with what is occurring in other
provinces? I also understand that the average lump sum payment is going to be
approximately $44,000. Is there any data available with respect to what will be
the absolute minimum and absolute maximum of these lump sum payments?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
Again, the minimum and
maximum are based on the individual's income. You could have an individual that
was receiving minimum wage when they were injured, or an individual that was
receiving over the MCAE, which is $64,375 right now, and they would get 85 per
cent of that amount. So it's totally dependent on the individual's income at the
time at of injury.
Some
provinces are doing 5 per cent; some provinces are doing 10 per cent. We alluded
to the 5 per cent for individuals who can't prove that they were attached to a
previous pension, so it reflects the different impacts that the injury had on
potential retirement savings into the future.
CHAIR:
The hon. the Member for
Fortune Bay - Cape La Hune.
MS. PERRY:
Thank you, Mr. Chair.
The
briefing highlighted the positive impacts that these changes will have on
workers, but can you provide any detail with any items that may have been
considered by your department, with respect to how injured workers might be
negatively impacted with this change?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
As with any income that you
receive in that particular year, it's going to affect your income line;
therefore, what we are doing here is we are allowing individuals – so this is a
lump sum payment at 65. However, the individuals have an option that up to a
year from their 65th birthday – so they can receive this payment. They don't
have to receive it in that calendar year; they can wait until the next calendar
year, but it has to be by their 66th birthday. We are going to give them that
option, so it doesn't have that actual impact on their income on that particular
year.
It's
like with any lump sum payment that an individual receives. It is going to raise
their income for that particular year, but it's not taxable. So that's the
impact.
CHAIR:
The hon. the Member Fortune
Bay - Cape La Hune.
MS. PERRY:
Thank you, Mr. Chair.
Could
individuals, with a more generous pension plan, be paid a lower amount under the
new system?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
Yes, it is possible. The
actuaries use mortality charts, so it's totally dependent on an estimation of
how long an individual would live.
It is
possible that there may be a small percentage of people, that if they stayed on
the old pension plan as it exists today, and they lived longer, they could
receive more money. However, this change is a more equitable and equal change,
and it also enables beneficiaries and spouse to get a payment, which they
wouldn't have gotten before.
So this
type of change to the pension benefit plan allows people to have a lump sum
payment at once, which individuals wanted. If an individual passes away, their
spouse or their dependants could qualify for funding, which they can't now.
If an
individual is on extended earnings loss, let's say, after January 1, 2019 and
they're off for a couple of years and then they go back to work, well, in the
future, at 65, they're still entitled to a percentage of this pension benefit
payout at 65 based on the length of time they were off on EEL. So, there are a
number of benefits with this change that are not existing today.
CHAIR:
The hon. the Member for
Fortune Bay - Cape La Hune.
MS. PERRY:
Thank you, Mr. Chair.
Can you
confirm that the tax-free lump sum payment will count as part of an individual's
gross income?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
Yes, it will count as a part
of an individual's income for the year that they received the funding.
CHAIR:
The hon. the Member for
Fortune Bay - Cape La Hune.
MS. PERRY:
Thank you, Mr. Chair.
Was any
consideration given to any implications that this could have on individuals who
avail of programs where gross income is a factor in determining program
eligibility, for example, the Guaranteed Income Supplement for seniors, social
housing programs like Newfoundland and Labrador Home Repairs, GST credits,
access to legal aid – can you tell us how this will be impacted?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
Right now if an individual
receives a pension plan and it affects their income – they receive that amount
per year, so it's a long term. With this, they're going to receive it in one
year, so it will be an impact on that particular year or when they determine –
when they decide to take it, like within a year.
WorkplaceNL will continue to pay the necessary health care costs related to the
work injury. If an individual has an extraordinary medical cost, they can apply
to the Assurance Plan within Newfoundland and Labrador Prescription Drug Plan.
What I think you're getting at is if this bumps a person's income up so they no
longer qualify, it could happen for that one year that they take the money; but
if they wait until the next year to take it, that will be their income so it may
not effect it the same way.
There
are a very small percentage of people that are in that bracket. But again if you
have extenuating medical circumstances that require the funding, you can qualify
under the Assurance Plan.
This
plan as a whole is a much better plan than the present one that exists today.
CHAIR:
The hon. the Member for
Fortune Bay - Cape La Hune.
MS. PERRY:
Thank you, Mr. Chair.
Can you
outline for us what the implications of the proposed changes will be for
employers?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
The cost of the current PRB
program is projected to continue to escalate.
In 2007,
the program liabilities were $22 million. By 2017, they have grown to $104
million. The actuaries are projecting an annual savings of $700,000 in the
benefits cost, plus an additional annual savings of $200,000 in actuarial costs
is expected, compared to the continuing current PRB.
So there
will not be an impact on the employers with this. The employers want this
change. This is a way of being fiscally responsible because this plan is just
growing out of control.
CHAIR:
The hon. the Member for
Fortune Bay - Cape La Hune.
MS. PERRY:
Thank you, Mr. Chair.
This is
a very important issue because of course employers are very much a part of this
equation as well, and they are what fund the workers' compensation system, so we
need to ensure that we have balance for both groups.
One of
the difficulties I'm having with respect to being expected to approve this bill
today is we really don't know what the future effects on rates are going to be
for employers. We don't know if the rates will go up or if they will go down.
Has
there been any research into – I know it's clearly stated in our briefing that
there will be no change at this time, but do you have insight with respect to
future as to whether or not there will be increased cost to the employer or a
decreased cost?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
Well right now, the injury
fund, we're overfunded. We were 131 per cent and then we had the income
replacement benefit, we went from 80 to 85 per cent which decreased us, and our
objective and goal is to get it to 110.
So, this
right now will not have an impact to employers, and the fund is very healthy,
and funded. In actual fact, I anticipate there will be a decrease in the
assessment rate to employers. That's the anticipation in the next year, not that
this is going to have an impact.
This is
funded, and this will actually be a better program, as we move into the future,
for the employers.
CHAIR:
The hon. the Member for
Fortune Bay - Cape La Hune.
MS. PERRY:
Thank you, Minister, and
thank you Mr. Chair.
So can
you give us any further detail with respect to how the injury fund itself will
be impacted?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
So, December 31 the injury
fund was at 131.6. Our objective and goal is to get to 110.
introduced the income replacement rate. We went from 80 to 85 per cent. That
brought the injury fund then down to 124. Again, like I said, we're moving
towards 110. We have one of the lower assessment rates. We're on par to lower
with the rest of Canada. New Brunswick just increased theirs dramatically.
For the
employers, this overall program will actually help make this program more
fiscally responsible.
CHAIR:
The hon. the Member for
Fortune Bay - Cape La Hune.
MS. PERRY:
Thank you, Minister, and
thank you, Mr. Chair.
Will you
be able to provide some more detail for us with respect to the upfront cost to
government?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
I can, in one second.
Right
now, government – we are aware that between January 1, 2019 and March 31, 2021,
there are 21 employees across different departments. The estimated impact – this
is a total estimation impact based on 44,000 – for January 1 to March 31, about
176,000; from April 1 to March 31, about 484,000; and from April 1 to March 31,
264,000.
CHAIR:
The hon. the Member for
Ferryland – my apologies.
MR. HUTCHINGS:
Thank you, Mr. Chair.
I was
wondering if the minister could just comment on – currently, under the wage-loss
system, it's my understanding that when someone reaches the age of 65 a benefit
could terminate, but there are provisions to allow for – if someone can
demonstrate they have a deficiency in their retirement income from CPP or
registered employer pension plan as a result of it, they may be entitled to the
amount of pension lost due to the workplace injury.
Under
the new system, is there any provision if someone can demonstrate they've had a
loss of other retirement benefit that they will be accommodated with the new
lump-sum payment, or would there be any accommodation for this under the new
system being proposed?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
So that is the 10 per cent,
that's the difference. So it's 5 per cent for individuals that cannot show they
have a wage loss from a pension they previously paid into or a pension loss, and
the 10 per cent component is for individuals who can show they had previous
pensions. There is that allotment to allow because individuals show that there
is an actual demonstrated pension loss.
CHAIR:
The hon. the Opposition House
Leader.
MR. HUTCHINGS:
Thank you, Mr. Chair.
I thank
the minister for that. I'm just wondering, was there any assessment done based
on those individuals you just referenced to be better off or not as well off, or
there would be no significant change in their financial position based on coming
from the old system to the new system to demonstrate retirement eligibility
after 65?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
So, overall, this new benefit
is a better benefit. And there's probably – because, again, as I explained
earlier, it's based on mortality rates. So there could be a group of people – I
can't hear, Mr. Chair.
SOME HON. MEMBERS:
Oh, oh!
CHAIR:
Order, please!
Thank
you.
MS. GAMBIN-WALSH:
There could be a small group
of individuals who would live to be 90 or 100 that possibly could have received
more money under the old system than the new one. So that is certainly possible,
but, overall, the new package is better for employers, is better for injured
workers, is better for dependent spouses, dependent children. Overall, it is a
more equitable program, and more people will receive the benefit under the new
program.
CHAIR:
The hon. the Member for
Fortune Bay - Cape La Hune.
MS. PERRY:
Thank you, Mr. Chair.
Would
you be able to provide for us some more detail on the $4.9 million future
benefit liability savings for government as a whole?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
So the $4.9 million is a
one-time savings. And the difference between the future liability for government
under the current PRB, in the proposed retirement benefit, actuarial work was
determined that the new model is expected to cost government $4.9 million less
than the current model. So that was actual actuarial work that was completed to
arrive at that number.
Again,
it's based on – they use mortality factors to determine.
CHAIR:
The hon. the Member for
Fortune Bay - Cape La Hune.
MS. PERRY:
Thank you, Minister.
Can you
provide to us some information – can you explain the growth in the liability of
the current system as it presently stands in terms of its growth to $104 million
where it sits today?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
Really, what I can say is,
like, in 2007 it was at $22 million and it has grown to $104 million. So it's
showing that this particular program that we are using is not sustainable and it
is not fiscally responsible; therefore, making this change to a new benefit that
the injured workers support and the employers support is the best way to go.
CHAIR:
The hon. the Member for
Fortune Bay - Cape La Hune.
MS. PERRY:
Thank you, Minister, and Mr.
Chair.
Can you
tell us which groups were consulted in the drafting of this legislation?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
Consultations were done as
part of the stat review that was done in 2013. There were 15 consultations in 13
communities; 65 written and verbal submissions.
So this
was a recommendation from the stat review, this exact change.
CHAIR:
The hon. the Member for
Fortune Bay - Cape La Hune.
MS. PERRY:
Can you tell us if there were any discussions with the injured worker – well, I
know the injured workers through the provincial consultation process, but with
respect to the Newfoundland and Labrador Injured Workers Association, Workers'
Advisor, the Federation of Business, those types of entities. Were any of these
directly consulted?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
During the consultation phase
that happened back in 2013 by the previous administration, they were included in
the consultations. Since then, we've worked with the Newfoundland and Labrador
Employers' Council and the Federation of Labour, which are the representations
at the table.
CHAIR:
The hon. the Opposition House
Leader.
MR. HUTCHINGS:
Thank you, Mr. Chair.
I wonder
if the minister could comment on the – there was an actuarial analysis done to
see the lump-sum component of it and paying out – when someone receiving
extended earnings loss (inaudible) at 65 is supposed to be paid out until death.
I'm
wondering, in the actuarial analysis, what age was used for both male and
females in doing that analysis?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
I will have to get that
answer for the Member.
CHAIR:
The hon. the Opposition House
Leader.
MR. HUTCHINGS:
Thank you.
So I
guess, in the briefing, am I understanding there was reference made to the
initial cost of about $24 million to the injury fund? But a $700,000 in annual
savings to the fund and an annual actuarial savings of roughly $200,000.
I assume
those numbers are directly linked to the ages that were used for a male and
female in the actuarial analysis to determine what the savings are, because
those individuals who exceed the ages that you used for your analysis, that
would be money that would never be paid out under this system.
So would
that be correct, and these numbers would reflect those changes?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
Yes, and the mortality tables
use the age of 83. So that's correct, what you just said.
AN HON. MEMBER:
(Inaudible.)
MS. GAMBIN-WALSH:
They just came back and told
me the age is 83 in the mortality tables.
CHAIR:
The hon. the Member for
Fortune Bay - Cape La Hune.
MS. PERRY:
Thank you, Mr. Speaker.
This
will be my last question, but I understand my colleagues have a few left as
well.
What is
the plan, once this bill is passed, to inform stakeholders, particularly the
employers and the affected injured workers, about the changes to the retirement
benefit?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
The way it works right now is
that if an individual passes away, for example, the family usually contacts
Workplace Health, Safety and Compensation to say stop those EEL payments. Also,
we have an agreement with Health and Community Services in the event somebody
passes away, to inform us that that individual has passed away.
Workplace Health, Safety and Compensation will contact all individuals who are
receiving extended earnings loss on January 1, 2019, and inform them of this
change to the pension plan.
CHAIR:
The hon. the Opposition House
Leader.
MR. HUTCHINGS:
Thank you, Mr. Chair.
I just
want to revert to the age that was identified by the minister in regard to age
83, in regard to the actuarial analysis and paying out lump sum. Those
individuals, when they hit the age of 65 in 2019 and they're on extended
earnings loss and they get a lump-sum payment, if those individuals live beyond
the age of 83, they're not entitled to benefits any more from the system, even
though they have a work-related injury.
Is there
any assessment done at that point in time of what programs may be available to
them either provincially or federally to offset the fact at that point in time –
even if they invest their money and they had to draw down, and up the age of 83
after the fact that would be spent. Is there any, after that time, any programs
or any analysis done to what would be made available to them to offset that loss
of income?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
Jurisdictionally, no, there
is nothing. We've done jurisdictional analysis on that to see; however,
WorkplaceNL still does provide the medical assistance, and any other programs
and assistance that they provide for injured workers.
CHAIR:
The hon. the Opposition House
Leader.
MR. HUTCHINGS:
Thank you, Mr. Chair.
I thank
the minister for that. I guess my issue is related to the lump-sum payment
upfront. There are very many pension plans that people are entitled to. Some do
have the ability to provide lump-sum payments, others do not.
I guess
my question is just – in regard to those individuals long-term, they had a
work-related injury. They received a lump-sum at the age of 66 or 67. That
affects – because that is, while it's not taxable, it would go into their annual
income and be reflective of what benefits they could draw down over the next
number of years, because that's probably prorated much like severance. When you
receive severance, if you're entitled to EI, that's prorated over a bunch of
years; therefore, you're not entitled to certain benefits.
Such an
individual, at the age of 84, has not drawn down on any of those benefits
because they were deemed probably not eligible. So I'm just wondering, from that
perspective, at the age of 84, what benefits is that individual entitled to that
had a legitimate work-related injury, but because you brought in this new
lump-sum program they're not entitled to benefits after that point?
CHAIR:
The hon. the Minister of
Service NL.
MS. GAMBIN-WALSH:
Okay. So you're using the age
83-84, that's a mortality table. So that's just a table that the actuaries use
to determine an amount. That's not a factual number, because I could live to be
90 or 95 and I