April 20, 2005 RESOURCE COMMITTEE

Pursuant to Standing Order 68, Kathy Dunderdale, MHA for the

District of Virginia Waters, replaces Premier Williams, MHA for the District of

Humber West.

The Committee met at 9:00 a.m. in Room 5083.

CHAIR (Harding): Good morning, everyone.

[Technical difficulties]

I am Harry Harding, MHA for Bonavista North and Chairman of the Committee.

The other members can introduce themselves.

MR. JOYCE: Eddie Joyce, MHA for Bay of Islands.

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

MS FOOTE: Judy Foote, MHA for Grand Bank.

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

MS JOHNSON: Charlene Johnson, MHA for Trinity-Bay de Verde.

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

CHAIR: The minister and her official.

MS DUNDERDALE: Good morning, Mr. Chair.

My name is Kathy Dunderdale, Minister of Innovation, Trade and Rural

Development. I am here this morning, on behalf of the Premier, to discuss the

Estimates of the Department of Business.

MR. JOYCE: Turn on your microphone, Minister.

MS DUNDERDALE: I am sorry.

Accompanying me this morning is Mr. Gary Norris, Acting Deputy Minister.

CHAIR: Thank you.

I would like to welcome - we have one observer as well - our Table officer

and our media person.

Judy mentioned yesterday about the Premier coming. I did put a request to the

Premier's Office and he could not make it this morning, so Ms Dunderdale - her

department and the Department of Business are involved to a fair extent in terms

of what each are doing. She is here representing the Premier this morning.

Fist of all, I would like to ask for a motion to adopt the minutes of the

last meeting.

Moved by Kevin, seconded by Eddie.

All those in favour, aye'.

OFFICIALS: Aye.

CHAIR: All those against, nay'.

OFFICIAL: Nay.

CHAIR: Carried.

MR. HUNTER: Mr. Chair, there is a mistake in the spelling of one of the

names there. Change that and I will adopt it as amended.

CHAIR: Okay.

It should be Lynn Evans instead of Lynn Duke.

On motion, minutes adopted as amended.

MR. REID: A point of order, Mr. Chairman.

CHAIR: Yes.

MR. REID: This is the second year in a row that the minister for this

department has not presented himself before this Committee. I understand that

you did talk to the Premier, the minister responsible for this department, and

he could not make it today. Was there any talk about rescheduling the meeting?

CHAIR: No. We are trying to get those done as soon as we can, and it was

scheduled for today. Everyone is busy, so we thought we would do it and get it

done.

MR. JOYCE: They already changed meetings, Mr. Chairman.

MR. REID: There have been a number of meetings, I say, Mr. Chairman, that

have been rescheduled, including the one that was supposed to take place in the

House yesterday morning where the Minister of Finance did not show up. That

meeting has been rescheduled, so we would be willing to wait. We still have a

fair number of weeks left in this sitting.

I would like to have the opportunity, at least once in two years, to bring

some issues forward to the minister responsible for this department, but

obviously the Premier has no intention of ever coming to talk about this

department. All we have here this morning is someone filling in, a minister who

is just filling in for him, and we have one official from that department who

happens to be the acting - and I stress the acting - deputy minister. These are

the only people who have shown up.

As far as I am concerned, that is an insult to this Committee and I will not

be staying much longer in it; because, if we are not going to have the

opportunity, as has been happening in the past, I guess, since we have had a

Legislature, where a minister, basically, is obligated to show up for these

meetings, then I do not see the point of having them, and I think that would

probably go against the parliamentary procedure that has been established over

the years. I think that is an affront and an insult to us, to have to come for

two years and not be graced with the Premier's presence. Obviously, he does

not think that the department warrants enough of his time to attend these

meetings, so I think the same can probably be said for us.

Thank you.

CHAIR: Thank you.

MS FOOTE: Mr. Chair, as critic for the department, again I want to go on

record as being really disappointed in the Premier's decision not to be here,

as the Minister Responsible for Business, to take questions. I really thought

that this year he would be. I knew he was out of the country last year, but I

really did think that he would be here this morning and I came prepared to ask

the Premier questions, as the minister responsible.

The fact that he is not here, I guess, there is not point in staying. You

know, we talked to the Minister of Innovation, Trade and Rural Development

yesterday about her department. Today we want to talk to the Minister

Responsible for Business about his department, not a stand-in. It does not

happen in any other department. In fact, where ministers have not been able to

attend on the day that it has been assigned, they have made the decision to

reschedule. I have never seen this happen before. Certainly, I would have

expected the Premier to be here, since he is in town. The fact that he is not, I

think, is a sad reflection on him. I am really disappointed this morning,

because I really did think he would be here. In fact I, too, will be leaving

with my colleagues.

Interestingly enough, I did have a chance last night to read the transcript

from last year, and the minister went on ad nauseam with how pleased she is with

the department and what the department is doing; obviously a written text that

she was reading. Interestingly enough, I read the comments by the Member for

Gander and the Member for Windsor-Springdale.

My one question that I had this morning was with respect to this $724,000

that was allocated for business attraction. If the Premier had been here, I

would have asked him what happened to that money. How was it spent? I hope it

was not spent, as the Member for Gander suggested, that - given that we were not

in the room - that money be split between the four government members there and

be spent that way.

I am hoping that was not the case and, in fact, it was spent on business

attraction. I do not know if the member realizes, but these are public documents

and you should never say something like that in a very light tone either.

Thank you.

CHAIR: Thank you.

Mr. Joyce.

MR. JOYCE: Mr. Chairman, I will just have a few words.

To the Member for Gander, who said just then to the Member for Burin that you

should stay, I say to the Member for Gander, if you had any backbone - for a

minister not to show up whereby you can ask him questions, yourself, about the

Department of Business - you would leave also. If this was me, and the minister

showed contempt to this Committee over the years that I have been in, I would

should him contempt very quickly - or her - because this is the biggest form of

contempt that I have ever seen.

For the record, I just saw the Premier drive into the building at 8:50 a.m.

He is not out of the Province, he is not out of town. He is in this building as

we speak. I just came up.

The other thing is - no disrespect to the minister who is here attending -

for example, yesterday we asked, who is going to be - we have an Acting Deputy

Minister of Business. When are we going to have a new one? No one knows. We need

to know these type of things. This is a year or a year and a half now, over a

year and a half, and this is the second meeting that the Premier just absolutely

refused to show up. It is the parliamentary rule that the minister would show up

and answer questions in the Estimates.

Mr. Chairman, I feel a bit slighted by you, yourself, that you, as Chairman,

do not stand with us and force the minister of a certain department to be here,

as Chairman of the Committee. You are saying that we have to get these over

with. You know meetings have changed. You were in the House yesterday when the

meetings were scheduled and changed. I can even show you a note last week, where

you sent me a note, where you changed meetings yourself. So, this idea that we

need to get them over, as you are on record as saying - we need to get them

over, we need to get them done - you wrote me a note last week where you said

there were meetings changed. So, this is just foolishness. It is contempt to all

of us.

I am not saying that we are going to be here and we have any great questions,

but we, as representatives of the people who elected us, and as the Opposition,

deserve the right. We expect the right, and this is contempt.

I know the members here probably cannot speak up, or are not allowed to speak

up, but the statement that you made, Mr. Chairman, that we need to get it over

with and we cannot change it, is absolutely, categorically, false, and you know

it. If you are going to come to this Committee and say that we need to get it

over with, at least say the truth. They said no, they are not going to change

the meeting. He is not going to show up; it is just as well to go ahead with it.

Don't give us the foolishness that we cannot change meetings, because we do it

on a regular basis.

I am going to leave with my colleagues also. I say to everybody in this room,

if this is the way they are going to treat elected people, God help the rest of

us.

CHAIR: Thank you, sir.

The meeting will continue without the Opposition members in attendance. We do

have work to be done, and we do have a very capable minister who is really close

to the Department of Business. The Premier's

schedule is not going to get any

less, for sure, as time goes on, especially with this problem in the crab

fishery.

We will proceed, and I would like to ask the minister now to open up.

MS DUNDERDALE: Thank you, Mr. Chair.

Mr. Chairman, one of the commitments in the Blueprint was that a Progressive

Conservative Administration would establish a Department of Business. In the

2004 Budget, government established the department and, since that time, the

department has been moving forward to implement an agenda for business growth

and investment.

The Department of Business is responsible for setting strategic direction

with respect to business and investment attraction, brand management for the

Province, and developing a business environment that will make Newfoundland and

Labrador a more competitive place to invest.

Mr. Chairman, the Department of Business has been expending significant

energies to ensure that it assembles a dynamic group of individuals to

capitalize on what we have in Newfoundland and Labrador and to further develop

the tremendous potential of our Province; however, before the government moves

forward with recruiting the full staff complement of the Department of Business,

a conscious decision has been made to undertake a number of pieces of important

research and to recruit for two important leadership positions.

In this regard, government appointed, in November, 2004, Mr. Peter Shea as

the new Chief Information Office. The new CIO is responsible for streamlining

and enhancing service delivery, reforming management and operational IT

practices throughout government, and bridging the role of government in public

service delivery with the private sector.

While this position was initially housed within the Department of Business,

the functions recently have been moved to the Executive Council. This transfer

will allow for the CIO to co-ordinate the administrative functions of government's

information technology and records management agenda while continuing to liaise

with the Department of Business with respect to private sector initiatives

involving the IT sector.

Last September, government appointed Gary Norris as the Acting Deputy

Minister of the Department of Business until the permanent incumbent is

appointed. Government is actively looking for a permanent Deputy Minister and,

once a person with the required skill sets is identified, an offer of employment

will be extended. In the meantime, Mr. Norris will continue to serve the

department in the acting capacity.

As noted, the department has moved forward and completed three important

areas of research. In October, 2004, the department hired Strategic Directions

Inc. to undertake an organizational overview of the business development

activities of the Province as it relates to each ministry, region and industry

sector, specially identifying funding, programming, and human resource

allocations assigned to each program.

The analysis also undertook a preliminary inventory of the Province's

business development portfolio, including strategic investments and equity

investment programs. This work has recently been completed and the information

has been forwarded to the Departments of Finance and Innovation, Trade and Rural

Development. The next step will be a detailed analysis to identify where there

may be gaps in the business support provided to the private sector, and to

inform new initiatives that government may wish to develop in the future to

attract and grow business investment in the Province.

In addition, government has also contracted Marketing Insights to complete an

audit and evaluation of government's branding practices which influence

perceptions of Newfoundland and Labrador in the public marketplace.

The purpose of this inventory will be to help identify ways to better

position the Province as an attractive place in which to visit, live and set up

businesses. The audit has also helped to identify inconsistencies in how the

Province is projected to the outside world, and identify the need to develop a

brand strategy.

As a result of the audit, the department has circulated a public Request for

Proposals to solicit input from marketing agencies who will be in a position to

assist with the development and implementation of a brand development strategy

for the Province. The RFP closed on February 28, and government will be making a

decision on the selection of a marketing agency to conduct this work.

A further piece of preliminary analysis of federal funding programs available

to the Province has also been undertaken. This project has been completed

in-house and is designed to determine if the Province is currently assessing an

appropriate share of federal programs and spending. Further research in this

area is planned. An appropriate organizational structure for the department will

also be finalized in due course.

Mr. Chairman, I can ensure hon. members that the Department of Business will

not consist of a large number of staff. The department will be streamlined to

ensure that the most comprehensive level of support can be provided to the

business community while, at the same time, ensuring maximum benefit to the

people of Newfoundland and Labrador.

As I have indicated, the Department of Business will be critical to

implementing government's agenda for business growth and investment and to

further developing the tremendous potential of this Province.

Mr. Chairman, Mr. Norris and I are quite happy to proceed with the Committee's

review of the Estimates document and answer questions on any other matters

pertaining to the department's programs and policies.

Thank you very much.

CHAIR: Thank you, Minister Dunderdale.

Does any member on the Committee have any questions for the minister?

MR. O'BRIEN: None at this time, Mr. Chair.

CHAIR: Mr. Hunter?

MR. HUNTER: (Inaudible).

CHAIR: Okay, I guess I will ask the Clerk to call the subheads.

CLERK: Subheads 1.1.01. to 2.1.01.

CHAIR: Shall subheads 1.1.01. to 2.1.01. carry?

All those in favour, aye'.

OFFICIALS: Aye.

CHAIR: All those against, nay'.

Carried.

On motion, subheads 1.1.01. to 2.1.01. carried.

CHAIR: Shall the total carry?

All those in favour, aye'.

OFFICIALS: Aye.

CHAIR: All those against, nay'.

Carried.

On motion, total carried.

CHAIR: Shall the 2005-2006 Estimates for the Department of Business carry

without amendment?

All those in favour, aye'.

OFFICIALS: Aye.

CHAIR: All those against, nay'.

Carried.

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

CHAIR: That pretty well concludes this part.

I would like to thank the minister and Mr. Norris for their attendance, and

the Committee members, the Page, Elizabeth, and our media person again.

Our next meeting will be this evening at 7:00 o'clock, here in the

Committee room, and we will be dealing with the Department of Fisheries and

Aquaculture.

I would ask for a motion to adjourn.

MR. O'BRIEN: So moved.

CHAIR: The motion by Mr. O'Brien is that this meeting be adjourned.

Thank you.

On motion, the Committee adjourned.