March 29,

2010 HOUSE OF ASSEMBLY PROCEEDINGS Vol.

XLVI No. 5

The House met at 2:00 p.m.

MR. SPEAKER (Fitzgerald): Order, please!

The hon. the Minister of Finance and President of Treasury Board.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, I move, seconded by the Premier, that the

House approves in general the budgetary policy of the government.

MR. SPEAKER: The motion is that this House approves in general the

budgetary policy of the government.

The hon. the Minister of Finance and President of Treasury Board.

MR. MARSHALL: Thank you, Mr. Speaker.

INTRODUCTION

Mr. Speaker, we have no greater responsibility, we have no finer purpose, we

have no higher priority, than to ensure our children's future is rich with

opportunity and secure.

It is my honour today to deliver our government's seventh budget and to walk

you through the investments we are making to give the children of Newfoundland

and Labrador the brilliant future that each and every one of them deserves.

How far we have come since we set out on this journey in 2003!

For some back then, self-reliance was just a pipe dream. But for this

government, self-reliance was a dream worth pursuing, a noble ambition, and an

objective we knew we could achieve by working together as Newfoundlanders and

Labradorians.

Mr. Speaker, what progress we have made toward that goal. The signs of

progress are unmistakable and our optimism is unshakable, even during the worst

recession to hit the world in decades.

We have been weathering the storm, strong and confident. Because of the

vision of the Premier, because of the real leadership and because of the right

choices, Newfoundland and Labrador is further along the road to self-reliance

today than we have ever been in our history.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, this is not the time to slam on the brakes.

This is not the time to turn back. This budget, our seventh budget, is about

moving forward.

These are sound investments that will advance us ever closer to our goal of

self-reliance.

These are responsible investments that will grow our economy, strengthen our

communities, diversify our industries and improve the lives of Newfoundland

families.

These are the right investments for today, the right investments for our

children, and the right investments for the future.

THE ECONOMY

Mr. Speaker, 2009 was a difficult year for most economies throughout the

world, but the global recession bottomed out in the first half of 2009 and most

economies are now in recovery. Gross domestic product in most industrialized

economies, and the global economy as a whole, declined last year as losses early

in the year were too substantial to be offset by later gains. With the United

States being Canada's, and Newfoundland and Labrador's, largest trading partner,

the recession there weakened export markets last year.

Economic Performance 2009

Newfoundland and Labrador's export sector felt the effects of the recession.

Resource-based industries such as the fishery, forestry and mining experienced

market downturns last year.

It is estimated the real GDP declined by 8.9 per cent due mainly to natural

declines in oil production as well as recession-related output cuts in mineral,

newsprint and fish production.

Employment fell by 2.5 per cent as impacts from the recession resulted in job

losses in many resource industries and, as a result, the employment rate

increased by 15.5 per cent.

While GDP and employment declined in Newfoundland

and Labrador during the recession, the Province's domestic economy weathered the

downturn better than many others. Several economic indicators fared very well in

a provincial context.

Labour income increased by 4.2 per cent the second best performance among

the provinces.

Housing starts, while marginally down from a nineteen-year high in 2008,

turned in the second best performance in the country.

Capital investment growth ranked fourth amongst the provinces, with

Newfoundland and Labrador being one

of only four provinces to record positive investment growth last year.

Although the export sector suffered from the fallout of the global recession,

domestic demand did perform well. Consumer confidence remained solid throughout

the year.

Retail sales grew by 2.6 per cent the strongest performance in the country

and one of only two provinces to record sales growth.

Personal income grew by 3.9 per cent while disposable income increased by 4.7

per cent, aided by tax cuts.

The recent strength in domestic demand and continued optimism about the

development of projects such as the Hebron oil project contributed to net

in-migration and an increase in the Province's population. On July 1, 2009, the

Province's population was estimated to be 508,925, an increase of 0.5 per cent

or 2,484 people over the previous year.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: This was the largest percentage increase in the provincial

population since 1983.

Despite the recession, the number of non-resident travel and tourism visitors

to the Province increased by 0.7 per cent to 483,200 and expenditures grew 1.4

per cent to $375 million.

SOME HON. MEMBERS: Hear, hear!

2010 Economic Outlook

MR. MARSHALL: Mr. Speaker, the past year was indeed a tumultuous one for

most economies around the world. Governments around the world have unleashed

major fiscal and monetary stimulus initiatives, which appear to be working. A

recovery has taken hold in most industrialized countries and global growth is

expected to return, however, some countries will be slower to recover than

others.

Investment in Newfoundland and Labrador is set to

rise to unprecedented levels over the next two years as activity on major

projects ramp up. In fact, we believe that Newfoundland and Labrador could

recover from this recession much quicker than in any previous recession. As a

result, real GDP is forecast to increase by 4 per cent in 2010 as an anticipated

rebound in mineral exports and increased construction activity on major projects

more than offset natural declines in oil production.

Employment is expected to grow by 2.3 per cent to average 219,900 and the

unemployment rate is forecast to decline once again by 0.6 percentage points to

14.9 per cent.

Personal income and disposable income are expected to grow 3.9 per cent and

3.3 per cent, respectively, both aided by wage gains and employment growth.

Retail sales are expected to increase 5 per cent, reflecting employment and

income growth as well as high levels of consumer confidence.

The population is expected to increase by 0.5 per cent as positive net

migration continues.

Capital investment is expected to rise 23 per cent, driven mainly by

expenditures in the oil and gas industry and on the Vale Inco's nickel

processing facility. This Province is expected to lead the country in investment

growth in 2010.

Housing starts are expected to increase 1.5 per cent to 3,102. Residential

construction spending is expected to increase 3.5 per cent to $1.6 billion.

First oil from the first of the three satellite developments linked to the

White Rose oil field is expected in 2010.

Development of the Hebron oil field will continue to be advanced and a

Development Plan Application is expected to be submitted in late 2010.

The value of mineral shipments is expected to increase about 60 per cent, to

$3.1 billion, as a result of higher production volumes and higher prices for

iron ore, nickel and copper, and mineral exploration expenditures are expected

to increase to $59 million.

The latest outlook from the Conference Board of Canada predicts total

overnight tourist visits to the Province to increase by 1.3 per cent.

Mr. Speaker, while some sectors of the Province will benefit from the global

recovery, others will continue to be adversely impacted by a slower recovery in

the United States.

Newsprint shipments are expected to decrease about 10 per cent to 238,000

tonnes, after an approximate 50 per cent decline last year.

Newfoundland and Labrador manufacturers which sell into the United States

market, forest product producers in particular, could be negatively impacted by

a slower recovery in that country.

Fish landings are expected to be on par with 2009 levels. Improvement in

market prices will largely depend on the strength of the global economic

recovery; however, aquaculture production is expected to continue to see growth

in 2010, driven mainly by growth in Atlantic salmon and steelhead trout

production. These sectors of the economy affect rural Newfoundland and Labrador

and need government stimulation to replace reduced private demand.

Beyond 2010

Mr. Speaker, beyond 2010, the economic outlook remains positive. While GDP

growth will vary depending on major project timelines and oil production, other

economic indicators, such as employment and income, are expected to continue to

increase. In addition, the unemployment rate is expected to resume its downward

trend, and continued consumer optimism is expected to produce stronger consumer

spending.

Development of major projects over the medium term will contribute

significantly to increased employment and incomes throughout the Province.

Employment related to construction on major projects is expected to increase by

nearly 4,000 to 6,200 person years in 2010, including spin-offs, and is expected

to grow by a further 1,500 to approximately 7,700 in 2011. Investment in

infrastructure in the Province, by the Province and for the Province will create

an additional 7,740 person years of employment in all regions of the Province.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Strength in domestic demand and continued optimism about

the development of major projects are factors which have led to recent net

in-migration and an increase in the Province's population. The population is

expected to continue to trend upwards over the medium term, even though there

may be fluctuations in the population on a quarterly basis. Overall, the

positive economic outlook is expected to lead to modest population growth in the

Province over the medium term.

FISCAL FRAMEWORK

Review of 2009-10

Mr. Speaker, the Public Accounts for the year 2008-2009 were recently

released and indicate a fourth consecutive surplus at $2.4 billion. The

cumulative value of those surpluses is $4.1 billion since 2005-2006. The

Province's net debt had a corresponding decrease of $3.9 billion from a high of

almost $12 billion at March 31, 2005 to $7.9 billion at March 31, 2009.

When we delivered Budget 2009, we knew that the year 2009-2010 would indeed

be challenging. We had a plan already firmly in place to strengthen the economy

of Newfoundland and Labrador tax reductions, strategic spending, debt

reduction and investment in provincial infrastructure. In 2009-2010, to ensure

that we weathered the economic storm, we committed to stay the course.

At the time of Budget 2009, we had forecast a deficit of $749.5 million. I am

pleased to report that we except the revised deficit will be reduced by

approximately 60 per cent to $294.9 million.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: The primary reason for the improvement is strengthened oil

prices during the year compared to the budget forecast.

Forecast for 2010-11

Mr. Speaker, global economic recovery is still fragile. While some of the

sectors of the Newfoundland and Labrador economy are already seeing the benefits

of a return to growth, a number of sectors which impact the rural parts of our

Province continue to be negatively impacted by persistent weakness and

uncertainty, particularly in the United States.

As a government, we feel it is necessary to continue with our efforts to

stimulate as the world returns to normal and more broadly based levels of

economic activity. This is not the time to retreat. This is not the time to slam

on the brakes. We want to keep the momentum going in the right direction.

In order to achieve this goal and not cut programs and services that are

crucial to Newfoundland and Labrador families, the Province is forecasting a

deficit of $194.3 million for 2010-2011. We will continue to invest in

infrastructure. We will continue to invest in programs and services that are

crucial to the people of this Province. And, as an added stimulus, we will again

reduce taxes.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Revenues will grow in 2010-2011, primarily the result of an

expected increase in oil prices, despite natural declines in production, but

also broad increases over most other revenue sources reflecting general growth

in the economy. Oil prices in 2009-2010 averaged $US68.53 and are forecast to

rise to an average of $US83.48 in 2010-2011.

Program expenses will also increase, offset somewhat by a decrease in debt

servicing costs, the result of a substantial recovery of the value of our

pension assets.

Mr. Speaker, since our government came into office, we have focused on making

the tax system competitive and fairer for all residents of Newfoundland and

Labrador. We have implemented and enhanced a Low Income Tax Reduction; we have

reduced tax rates at each tax bracket; we have indexed the tax system; we have

enhanced the Low Income Seniors' Benefit and we eliminated the sales tax on

insurance premiums. These measures have put money back in the hands of families

and consumers and ensured that we do not place an undue burden on those families

with lower incomes.

I am pleased to announce that we will do more in this budget. The Age Amount

for those sixty-five years of age and older will increase from $3,681 to $5,000

and the maximum Seniors' Benefit will also increase from $803 annually to $900

annually.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: An examination of the national pension system is also

occurring and we are participating in that process with other provincial

jurisdictions and the Federal Government. It is expected that any changes which

may result from that process will come forward during this year.

Mr. Speaker, I am also pleased to announce that effective July 1, 2010, the

personal income tax rates applicable to the second and third income brackets

will decrease to 12.5 per cent and 13.3 per cent respectively from the current

levels of 12.8 per cent and 15.5 per cent. Newfoundland and Labrador is headed

for a period of strong economic growth within an environment of professional and

skilled labour shortages. We are investing to attract and retain the

professionals and the skilled labour to meet the employment demand that is

forecasted for the Province. In order to compete nationally, in order to compete

internationally for business investment and labour, it is imperative that we

maintain the competitiveness of our tax system. This measure fulfills our

commitment to maintain the lowest tax rates in Atlantic Canada.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: In addition, the Dividend Tax Credit for dividends received

from large corporations will increase from 9.75 per cent to 11.0 per cent

enhancing our competitiveness and encouraging investment.

Mr. Speaker, small business is the backbone of any economy and generates

significant employment for people in all parts of the Province. I am greatly

pleased to announce that effective for tax years beginning after March 31, 2010,

the rate of Corporate Income Tax applicable to profits earned by small business

will be reduced from 5 per cent to 4 per cent. This will benefit approximately

4,800 small businesses in the Province.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Finally, Mr. Speaker, effective midnight tonight, the rate

of tobacco tax applicable to cigarettes and fine cut tobacco will increase by 1

cent per manufactured cigarette and by 2 cents per gram of fine cut tobacco.

SOME HON. MEMBERS: Hear, hear!

THE RIGHT INVESTMENTS FOR OUR CHILDREN AND OUR FUTURE

INVESTMENTS IN CHILDREN AND YOUTH

MR. MARSHALL: Mr. Speaker, directly or indirectly, every initiative in

this budget is about children. Everything we do has their best interests at

heart and their bright future in view.

Some children in this Province are especially vulnerable and need our help.

Last year, we established a new Department of Child, Youth and Family Services

and made child protection a primary focus. This year, as we work to transition

staff and services, we are providing the new department with a total budget of

$167 million.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: This budget includes funding to hire 27 new personnel whose

support will enable our social workers to get back to the basics of case

management and frontline services delivery.

With a long-term goal of creating a continuum of appropriate placement

options for at-risk children and youth, we are providing funding this year to

undertake a survey of foster families to understand the challenges they face and

how best to address them. We are also increasing our funding to the Foster

Families Association to support their operations. Last year, we provided $1.3

million to enhance the foster care rate structure and we are confident our

approach over time will help us grow the number of foster homes in our

communities which is a key component of the continuum.

To enhance children's learning as one component of early development, our

government will commence extensive consultations in order to help develop an

Early Childhood Learning Framework. These consultations on the proposed

framework will be held with parents, educators and community partners. Budget

2010 includes funding of $507,500 to begin this important process.

We have identified a growing need for speech language pathology services for

preschoolers in the rural Avalon and Clarenville areas, so this year, we are

investing $150,200 to improve access.

We are also making significant investments to improve K-12 education this

year: with $2.2 million, we will advance the Excellence in Mathematics strategy

through new curriculum, new textbooks and new resources for students and

teachers; with $1.9 million, we will extend the class size cap to Grades 6 and 9

and thus complete the implementation of the capped class sizes fully throughout

Grades K-9; and

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: - through an investment of $383,900 in 2010-11, with an

annual cost of $550,000, we will increase student assistant hours by more than

25,000 a year to support inclusive classrooms by assisting students with special

needs, including those with autism and severe behavioural issues.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Even greater, in dollar terms, will be our investments in

K-12 infrastructure this year, building on the record investments we have made

throughout our tenure. We are providing: $500,000 to commence planning for a new

high school in the west end of St. John's;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $500,000 to commence redevelopment of Exploits Valley High

in Grand Falls-Windsor;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $1.2 million for an extension and skilled trades suite at

New World Island Academy;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $1.5 million for the construction of additional classrooms

and other upgrades at St. Paul's Intermediate in Gander;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $2.5 million to construct an extension and upgrade Roncalli

Elementary in St. John's;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Funding to support a commitment to build a new school to

replace Virginia Park Elementary in St. John's; and, an additional $14.3 million

to address repair and maintenance issues throughout our five school districts,

bringing the total allocation for 2010-2011 to $34.3 million.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Maintenance of our libraries is also important, so we will

also provide an additional $250,000 in 2010-2011 to the Provincial Information

and Library Resources Board to address the need for repairs and maintenance.

Our sizeable investments in new infrastructure for education are not confined

to the K-12 system. This year, we will also be investing significantly in

post-secondary education.

We will allocate $18 million this year to begin construction of a 500-bed

residence at Memorial University's St. John's campus and a 200-bed residence at

the Corner Brook campus, -

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: - at a total combined investment of $88.3 million.

Furthermore, $7.5 million is allocated for upgrades to the existing residences

in 2010-2011.

We will provide another $3.2 million to Memorial this year for its deferred

maintenance plan and laboratory upgrades for a total budget of $7.2 million.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We will invest $3.4 million in Memorial and College of the

North Atlantic in accordance with the directions of the White Paper on

Post-Secondary Education.

We will also leverage federal funding for several additional infrastructure

projects with provincial investment of over $30 million, including: $11.5

million for the construction of the new College of the North Atlantic's Labrador

West campus;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $3.3 million for the continuation of roof and ventilation

upgrades for the College's Prince Philip Drive campus; $2.5 million for building

upgrades and improved ventilation for the College's Seal Cove campus; and, $13

million for construction of the new academic building at Memorial's Corner Brook

campus.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: You have to clap for that one.

Other investments at Memorial University include: $294,500 to continue a

doctoral level training program in clinical psychology; $800,000 to support the

marketing of the university nationally and globally; and, $2 million as we

continue to follow through on our commitment to increase autonomy for Memorial's

Corner Brook campus.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Also, Mr. Speaker, the Provincial Government will allocate

an additional $2 million to the School of Graduate Studies at Memorial

University for fellowships, in support of the school remaining competitive in

Canadian and international markets.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, through our unprecedented investments to

improve student aid and make post-secondary education more affordable,

Newfoundland and Labrador has become a national leader in post-secondary

the North Atlantic in each of our last six budgets. With an additional

investment this year of $5 million at Memorial University and $1 million at the

College, we will extend the tuition fee freeze yet again in 2010.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Our government is undertaking many other initiatives to

promote Newfoundland and Labrador as the province of choice for young people and

others to study, work and stake their future.

Through an allocation of $2.3 million under the Labour Market Agreement, we

will commence implementation of a new strategic adult literacy plan.

We will undertake a comprehensive Labour Market Review to help us more

accurately target the more than $250 million we are now administering to develop

the labour market.

We are also providing $4 million to continue implementing the recommendations

of the Skills Task Force report. This includes $1 million for the College of the

North Atlantic to upgrade equipment and trades shops where our young people are

preparing for exciting opportunities right at our doorstep; $2.9 million for

skilled trades training capacity; and $100,000 to support the work of the

industry coordinating committee.

We want our young people to stay, and this is an example of how we are

working to make it happen.

SOME HON. MEMBERS: Hear, hear!

INVESTMENTS IN INFRASTRUCTURE

MR. MARSHALL: Mr. Speaker, even the greatest recession to hit the world

in decades has not stopped our progress. When the recession hit, we were ahead

of the game. We already had an aggressive Infrastructure Strategy in place, and

in the face of a recession, we stepped up our efforts even further. We took this

approach, not merely because most other jurisdictions in the world were

preparing to take stimulus measures of their own, but moreover because we had

proven that responsible infrastructure spending is a sound investment in growth,

prosperity and long-term sustainability. Infrastructure initiatives inspire

investors to spend, encourage entrepreneurs to diversify, and empower employers

to hire. Reliable infrastructure is the foundation of every resilient economy,

and we spend wisely when we invest to make it strong. Roads and highways,

wharves and bridges, ferries and terminals, schools and hospitals, long-term

care centres, municipal works and public housing - this is infrastructure we

require. In rural regions and larger centres throughout Newfoundland and

Labrador, we believe in our future. We are determined to invest in securing the

foundations and strengthening the pillars in all our regions because we intend

to stay here and we intend to prosper here in Newfoundland and Labrador for

generations to come.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: The infrastructure investments we began when we took office

and advanced last year must continue, progressively, strategically and

responsibly, guided by our long-term plan.

Public infrastructure is by definition the property of the people of

Newfoundland and Labrador, and taxpayers are right to demand good value for the

infrastructure investments that we, as a government, make on their behalf. We

expect contractors to sharpen their pencils and provide bids that are reasonable

and competitive; and as they do, the tenders will be let, the funding will roll

out, the work will proceed, and communities throughout this province will reap

the benefits of the aggressive infrastructure investments I am announcing today.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Last year, our Premier announced an unparalleled increase

in infrastructure spending to $800 million in the 2009-2010 fiscal year and a

plan to grow infrastructure spending to more than $4 billion over the next

several years. By year's end, we had let tenders for $1.3 billion worth of

projects.

This year, we will invest approximately $1 billion in infrastructure

projects, an investment that will generate some 7,740 person years of employment

and will benefit all regions of the province a new record for infrastructure

spending.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: This investment includes $105.1 million for repairs and

maintenance across all sectors: transportation and works, public housing, health

care and education. Every one dollar invested in maintenance saves us five

dollars down the road. This is the responsible approach: we are right to take

it, and we will be stronger because we did.

Total infrastructure spending is expected to grow to $5 billion over the next

several years.

To build on our investments in roadwork in recent years, we will provide

$177.7 million in provincial funding for road and bridge expenditures throughout

the province.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: This Provincial Government investment will be supplemented

by an additional $57.9 million in Federal Government funding for a total

investment this year of $235.6 million for road and bridge projects

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: throughout Newfoundland and Labrador, the vast majority

directly benefiting our rural economies province-wide. This investment includes:

the Provincial Roads Improvement Program and improvements to the Trans-Canada

Highway/National Highway System; funding for the Conception Bay South Bypass

extension, Team Gushue Highway extension and completion of the Torbay Bypass;

funding to begin replacement of the Sir Ambrose Shea Lift Bridge in Placentia;

funding to begin replacement of the Kenmount Road (Donovan'

s) overpass; and,

Trans-Labrador Highway projects that I will spell out shortly.

This will truly be yet another banner year for roadwork across Newfoundland

and Labrador.

The provincial ferry system is an important extension of transportation

connections to isolated and island communities throughout the province,

benefiting local residents, businesses and tourists alike. This year, we are

allocating $5 million to maintain and upgrade our ferry terminals, $12.5 million

to refit existing vessels and $55 million to advance construction of new vessels

to replace the aging fleet under our Vessel Replacement Strategy.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Two medium-size vessels are now under construction, and the

propulsion system has been purchased for a third vessel on which construction

will soon begin. Our government has also appointed the consultant that will

design a fourth new large-size provincial ferry to replace the Captain Earl W.

Winsor on the Fogo Island and Change Islands run.

Mr. Speaker, I am delighted to announce that our government will proceed with

the construction of six new ferries five for the south coast of the Island and

one for the south coast of Labrador and they will be

constructed right here in Newfoundland and

Labrador .

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Construction of these new vessels will create employment

and opportunity within our Province's marine services and shipbuilding

industries and provide an even more reliable service to the people of our Island

and our isolated island communities.

We are also allocating $50.3 million in 2010-11 toward the purchase of four

new water bomber aircraft, as previously announced. This year, we will take

possession of the first two of these aircraft and will start reaping the

benefits of their state-of-the-art forest fire suppression capabilities.

I am also pleased to announce that we are increasing our funding to

municipalities for fire truck acquisitions to $2.5 million this year, and $7.6

million over the next four years; and -

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We are also doubling our funding for critical firefighting

equipment upgrades and replacement to $1 million this year, and $2.5 million

over the next four years a clear demonstration of our respect and our support

for this Province's 6,200 volunteer firefighters.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, municipal infrastructure projects represent

direct investments in our communities and our people. This year, our provincial

contribution to municipal infrastructure projects will total $135.5 million.

That funding will, in turn, leverage another $53.4 million in federal funding,

raising the cost-shared value to $188.9 million, which is nearly 22 per cent

higher than it was last year.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: When the municipal contributions are factored in, the total

investment in municipal infrastructure in the Province this year is anticipated

to be $225 million the largest annual investment in municipal infrastructure

in our Province's history.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We are investing $35.5 million for alteration, improvement

and new development of public buildings. This includes, among other projects,

funding to continue with the exterior renovations and window replacement here at

Confederation Building, and funding to begin redevelopment of the Sir Richard

Squires Building in Corner Brook.

We are investing $15.9 million to continue with the redevelopment of the

Royal Newfoundland Constabulary Headquarters at Fort

Townshend.

Under goals outlined in the Province's Social Housing Plan, "Secure

Foundations", we are investing $27 million for Newfoundland

and Labrador Housing Corporation

infrastructure projects, affordable housing and increased maintenance funding.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, we will also invest $3.6 million to replace

the Crabbes River Bridge along the T'Railway Provincial Park and $1.6 million to

begin a series of major infrastructure improvements at the Salmonier Nature

Park.

INVESTMENTS IN DIVERSIFICATION

Mr. Speaker, diversification is the key to long-term economic sustainability

and self-reliance in Newfoundland and Labrador. The more opportunities we

capture, the broader the foundation on which our economy is grounded. Through

the Departments of Finance, Business and Innovation, Trade and Rural

Development, our government provides funding for programs that help private

sector enterprises expand and help local and regional economies grow stronger.

Many of those we will help to find new markets, attract new investors, make more

sales and hire more employees. This year, we will invest more than $126 million

in programs like these in a continuing effort to diversify and to strengthen the

economy. Here are some examples of investments that we will be making this year:

$61 million in tax credits and incentives;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $11 million in the Regional/Sectoral Diversification Fund

to take full advantage of our strengths and capture regional investment

opportunities in a wide range of sectors; $2 million in the Aerospace and

Defence Development Fund designed to support the growth of this industry in our

Province; $1 million in the Innovation Enhancement Fund plus $1 million in the

Commercialization Fund, both initiatives launched under our Innovation Strategy;

$1 million in the Oil and Gas Manufacturing and Services Export Development Fund

as part of a two-year, $3 million commitment for this Energy Plan initiative,

which assists companies in the Province's oil and gas supply sector to diversify

their markets and to take advantage of new export opportunities; and, $4.9

million under the five-year Oceans of Opportunity Strategy to advance our ocean

technology sector.

Other programs include the Small and Medium-sized Enterprise Fund, the

Business Attraction Fund, and the Business and Market Development Program. We

will release our five-year Air Access Strategy this year, which will focus on

improving access to air transportation in our Province by encouraging greater

capacity and more direct and more frequent flights. This year will also see the

completion of a comprehensive investment attraction strategy. This multi-year

plan will be designed to provide co-ordinated, strategic oversight of activities

and initiatives throughout the Provincial Government that support the attraction

of new investment to the Province across a number of sectors.

Last year, we were proud to establish the Research and Development

Corporation to support economic and industrial research and development in

Newfoundland and Labrador. The Research and Development Corporation is starting

its first year of operations with a landmark $8 million investment in the Ocean

Sciences Centre, and it is also continuing to deliver the Industrial Research

and Innovation Fund. RDC will launch new initiatives to enhance the Province's

R&D capacity in energy, in ocean technology and other sectors with the potential

to significantly impact Newfoundland and Labrador's economy. When the

breakthroughs are made, we will be there to reap the benefits.

Innovation and ingenuity are driving growth in many of our industries,

including one that is making waves all around the Province. To advance the

momentum of our aquaculture industry: We will provide $9 million this year to

construct aquaculture biosecurity infrastructure

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: - including new wharves on the Connaigre Peninsula to

ensure the health and safety of fish on farm sites; We will provide $1.25

million from the Community Development Trust to enhance biosecurity in the

salmonid aquaculture sector through alternatives to the dumping of waste

products generated through fish processing; We will provide $7.5 million this

year towards the construction of an $8.8 million Centre for Aquatic Animal

Health and Development in St. Alban's; We will provide a further $500,000 for

aquaculture laboratory equipment for this St. Alban's facility; We will provide

$600,000 for aquaculture wastewater treatment facilities; and, We are investing

$6.6 million to provide aquaculture capital equity to developers.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, our fishing industry is tremendously important

to our Province and to our government. To advance our fishing industry, we will

provide: $1 million to the Canadian Centre for Fisheries Innovation to support

fisheries and aquaculture research and development; $2 million for the Fisheries

Technology and New Opportunities Program to make our fishing industry even more

competitive; $250,000 for a Fishing Industry Safety Council; and, $100,000 for

communications in support of our sealing industry.

We are also investing $300,000 for continuing development and implementation

of a provincial Coastal and Ocean Management Strategy and Policy Framework to

address issues such as climate change, aquatic invasive species and the

establishment of new Coastal Management Areas.

To support the agriculture sector, our government is currently developing a

new agriculture strategy to identify the best approach to make this primarily

rural industry more competitive, and to increase local food production and

value-added processing opportunities. To increase local food production, more

suitable land needs to be developed. To assist the industry with its expansion

plans, the Provincial Government is working with the Federal Government on a

large-scale land development initiative. Budget 2010 contains a $2 million

commitment over four years for the provincial portion of this initiative.

In the forestry sector: We will allocate $30.6 million over the next two

years to invest in additional forest management responsibilities and purchase

timber rights from Corner Brook Pulp and Paper Ltd., not only supporting

integrated sawmill operations, but also strengthening Corner Brook Pulp and

Paper in the process.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We will invest $7.5 million under the Forest Industry

Diversification Program to continue diversifying our sawmill sector.

The forestry sector has encountered challenges, of which we are all well

aware. In central Newfoundland, as in the Stephenville region, where major

forest enterprises have folded, diversification is a path to a prosperous,

sustainable future. In both of these regions, people are known for their

resourcefulness and their ingenuity, so it comes as no surprise to any of us

that these regions are resilient, with optimism that their future will be

bright. Progress will come in steps, and there remains much work to be done, but

we continue to stand shoulder-to-shoulder with the displaced workers and their

representatives, with the councils, the businesses and the people of the

affected communities to offer our strong and continuing support for measures to

move these regions forward.

The Ministerial Task Force and the Community Development Committee that we

established with the stakeholders of central have focused on stabilizing the

area with investments in excess of $100 million to promote growth,

diversification and strength. We also took the unprecedented step of committing

more than $40 million in severance and other entitlements to ensure the workers

are not disadvantaged by the closure of the mill and its operations. Every step

of the way, we are standing by the people of central Newfoundland as we move

forward.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: One sector hit hard by the recession that is already

rebounding with incredible strength is the mining sector. We will promote even

more activity in the mining sector: By providing $2.1 million for a three-phase

work program to assess the potential market value of the Julienne Lake iron ore

deposit in Labrador West; and

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: By continuing to support the Mineral Incentive Program at a

level higher than it was two years ago before the global recession hit.

We are also investing $235,000 to develop a Provincial Minerals Strategy in

consultation with stakeholders and the public, reviewing all aspects of mineral

policy with a view to maximizing activity and optimizing wealth.

Mr. Speaker, our energy sector is growing by leaps and bounds. Nalcor Energy,

the Province's energy corporation, is well on its way to becoming a leader of

national and international stature, a mature partner of some of the biggest

energy corporations in the world. Newfoundland and Labrador is finally coming

into its own as a major player in the energy sector. Under our Premier's

leadership, the Province through Nalcor has become an equity partner in not just

one but three offshore oil projects: the White Rose Extension, the Hibernia

Southern Extension and Hebron. Nalcor is also working on our behalf as we

prepare to develop the Lower Churchill. To enable Nalcor Energy to operate with

maximum effectiveness, we are allocating $164 million this year to allow Nalcor

to take full advantage of the opportunities ahead on our behalf.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We are investing an additional $160,000 to participate in

international oil and gas exhibitions where we show off our successes, where we

showcase our strengths, we forge new partnerships and we bring new opportunities

back home.

Under the Province's Energy Plan, we are also investing $12 million to

advance petroleum resource marketing, geoscience data acquisition, data

management, energy efficiency and conservation, and energy innovation.

We will be providing one-time funding of $500,000 this year that will ensure

Aboriginal groups that are potentially affected by the proposed Labrador to the

Island Transmission Link have the financial capacity to participate in the

environmental assessment review process that is currently being conducted on

this project. Our government is also committed to the remediation of

contaminated sites, and we are going to invest $10 million to address

environmental and safety issues associated with the former mine at Buchans and

the former United States military station in Hopedale.

INVESTMENTS IN LABRADOR

Mr. Speaker, many of the initiatives I have already outlined will benefit the

people of Labrador in important and enduring ways, but there are also other

initiatives I would like to highlight now.

We were absolutely delighted a few months ago to celebrate the historic

opening of Phase III of the Trans-Labrador Highway, forming the first continuous

link from Labrador West to Southern Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: This is an achievement that Labradorians will be

remembering for generations to come. To date, approximately $185 million has

been invested in the Trans-Labrador Highway, but there is more work to come.

This year, $88.6 million in cost-shared funding is being invested to continue

the widening and the hard-surfacing of Phase I and to complete Phase III.

To protect the integrity of this major transportation artery and to ensure a

safe and enjoyable driving experience for motorists, we will invest $3.2 million

this year to construct a weigh-scale facility on the Labrador West end of the

Trans-Labrador Highway and will create six weigh-scale inspector positions.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Another significant milestone Labradorians celebrated this

year is the introduction of year-round marine service across the Strait of Belle

Isle. We will provide approximately $1.4 million this year to continue this

pilot project. We encourage residents, investors and tourists alike to make

plans to take full advantage of this exciting winter service.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: In many areas of Labrador, snowmobile trails serve as vital

winter highways. We will invest an additional $200,000 this year for winter

trail grooming to maintain a quality and safe winter trail system in Labrador.

We will invest $120,000 to construct a groomer garage in North West River,

$60,000 to continue with trail cutting and re-routing, and $20,000 for new

signage along the Labrador transportation trail system.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We will provide $378,000 for three additional RCMP

officers, two of whom will enhance the Relief Unit in Happy Valley-Goose Bay to

increase regular patrols to Postville.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Postville being the only community in North Labrador

without a full-time detachment.

We will invest $430,000 to expand the transition house in Nain and provide

operational funding for a proposed shelter in Rigolet.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: In Northern Labrador, the demand for new housing is great

and every new unit is a significant advance. I am delighted to announce that, in

recognition of the need for additional units for Coastal Labrador, we have

approved funding of $1.2 million this year to construct four new housing units

in Nain.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: In total, under the Northern Strategic Plan, we are making

an investment this year of more than $158 million to foster a bright and

prosperous future for the good people of Labrador.

SOME HON. MEMBERS: Hear, hear!

INVESTMENTS IN POVERTY REDUCTION

MR. MARSHALL: Mr. Speaker, Newfoundland and

Labrador is nationally recognized as a leader in

poverty reduction because of the actions that we have taken since launching our

Poverty Reduction Strategy in 2006. This year, as we prepare to consult on our

second Action Plan, we are continuing to invest in new poverty reduction

initiatives.

To support a healthy population, we will invest $2.5 million to increase the

income thresholds for eligibility under the Newfoundland

and Labrador Prescription Drug

Access Plan.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: With our minimum wage progressively rising in recent years,

fewer are meeting the income thresholds, so we will raise the thresholds so more

people can qualify for coverage of the medications that they need.

To enhance the services for families experiencing separation and/or divorce

outside the court process, we are allocating $310,000 for the Family Justice

Services Division.

We will also provide $519,000 to extend the pilot project that established a

Family Violence Intervention Court. This specialized court focuses on providing

treatment intervention to moderate-risk offenders and support to victims so the

cycle of family violence can be broken.

To support social infrastructure, we will provide $2.4 million in funding for

the Supportive Living Community Partnership Initiative, doubling the amount

provided last year, in order to enhance significantly the support for

community-based initiatives that help individuals with complex needs overcome

homelessness.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Women can make a profound difference as role models and

leaders in Aboriginal communities, but some face challenges because of poverty,

violence, low self-esteem and lack of community support. This year, we are

allocating $125,000 to provide community-based supports for Inuit women in

Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: At workshops in the five Inuit communities on Labrador's

North Coast, Aboriginal women will receive guidance on how they and their

neighbours can make the most of the Poverty Reduction Strategy, the Aboriginal

Training Initiative, Victim Services and emerging economic activities.

Mr. Speaker, we will also provide sustaining funding of $100,000 to the

Newfoundland Aboriginal Women's Network, which enables Mi'kmaq women in Central

and Western Newfoundland to become more

self-sufficient and deal with issues ranging from poverty and violence to health

concerns and illiteracy.

To complement the strategy's goals, we are investing $6.8 million this year

in the federal-provincial Affordable Housing Program to build an additional 230

rental housing units for seniors, persons with disabilities, and persons

requiring supportive services in partnership with the private and non-profit

sectors;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We are investing $17.6 million and leveraging additional

federal funds to modernize more than 2,300 Newfoundland and Labrador Housing

units, a 291 per cent increase in funding under this program since just three

years ago;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We are investing an additional $1.4 million to raise the

Housing Corporation's annual maintenance budget to $10.2 million; and

We are also providing $1.2 million to raise the housing allowance for the

Housing Corporation's low-income tenants.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: In total, Mr. Speaker, we are investing $134 million in

Poverty Reduction Strategy initiatives this year, for a total investment since

2006 of $482.7 million in poverty reduction.

SOME HON. MEMBERS: Hear, hear!

INVESTMENTS IN HEALTH AND WELL-BEING

MR. MARSHALL: Mr. Speaker, a year ago this month, Justice Margaret

Cameron released the report of the Commission of Inquiry on Hormone Receptor

Testing, a report our government commissioned to investigate serious errors in

cancer diagnosis and treatment. Last week, the Minister of Health and Community

Services provided an update to the people of the Province on the status of the

implementation of the recommendations contained in the report. We are pleased

that thirty-nine of the sixty recommendations have been completed or are

substantially complete. By working together, the provincial government and

Regional Health Authorities will continue to ensure that quality and patient

safety are first and foremost in our minds each and every day. The residents of

our Province deserve no less. Our government will provide another update on the

implementation of Justice Cameron's recommendations next March.

In last year's budget, we invested $21.4 million to further enhance

laboratory services, cancer care and health information management in the

Province, bringing our total new investment in these core areas since 2007 to

more than $75 million. Our initiatives responded directly to the findings and

recommendations of Justice Cameron and the Task Force on Adverse Health Events,

and they helped us make our health care system stronger and more accountable to

the people that it serves. We are determined to respond to all of the issues and

recommendations that Justice Cameron has made and to improve quality in our

health care system.

Our continued investment in cancer treatment and prevention is helping to

improve the lives of patients and their families. Our investments this year

include: $5 million to continue implementing the recommendations of the Cameron

report; $3.2 million to cover the cost of 10 new drug therapies under the

Newfoundland and Labrador Prescription Drug Program, including cancer drugs;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $240,000 to begin implementation of the new Colorectal

Cancer Screening Program that the Minister of Health announced about ten days

ago; $197,000 in operational funding for a radiopharmacist and a program

director to begin planning for the new Positron Emission Tomography, or PET,

scanner at Eastern Health; and, $119,800 to enhance an accredited stem cell

transplant program for patients in our Province.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Our total investment in health this year is $2.7 billion.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: That is a record investment for the people of the Province.

Funding for health operations is more than 10 per cent greater than last year.

The true measure of the value of our investment is not in the dollar amounts but

in the difference that these investments make.

We are making a difference in people's lives by investing in strategic health

care infrastructure throughout the Province. Budget 2010 provides total funding

for health care infrastructure of $208.9 million. This funding will provide for

new construction and redevelopment of existing facilities; it will provide for

repairs and renovations; and it will provide for the purchase of new medical

equipment. Here's how it breaks down.

For new construction and redevelopment this year, we are investing a total of

$125.1 million, including: $7.9 million for the redevelopment of the Central

Newfoundland Regional Health Centre in Grand Falls-Windsor

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: with a total project cost estimated at approximately $30

million; $11.8 million for the continued construction of a new hospital in

Corner Brook;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $9 million for the continued construction of a new regional

hospital in Labrador West;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $7.9 million for the continued construction of the

Newfoundland and Labrador Interdisciplinary Research Centre in Genetics in St.

John's;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $6.3 million for site preparation for the installation of

the new PET scanner in St. John's;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $5 million to start construction of a new health centre

clinic in Flower's Cove; and

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $3.2 million for the ongoing redevelopment of the James

Paton Memorial Hospital in Gander.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: For repairs and renovations of the existing health care

facilities throughout the Province this year, we are investing a total of $31.6

million.

Over the last six years our government has invested almost $180 million in

new medical equipment. This year, with an investment of $52.2 million, we are

providing: $4.4 million for a new MRI machine at St. Clare's Mercy Hospital;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $3.5 million for the replacement of CT scanners at the

Carbonear General Hospital and the Janeway Children's Hospital and

Rehabilitation Centre; approximately $3 million for the purchase of new and

replacement laboratory equipment around the Province; $2.7 million for the

provincial cardiac care program; and, $2.1 million for the purchase of new

ultrasound machines all around the Province.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: But, Mr. Speaker, there is more. We are determined to

improve access to health care by reducing wait times for services, including

diagnostic procedures. This year, we will invest: $1.2 million to enhance

surgical services at Western Memorial regional Hospital in Corner Brook;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $208,000 for Dr. Ismail to enhance cardiology services at

Western Memorial Regional Hospital;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $1.1 million to decrease wait times for surgery by

increasing the number of positions in operating rooms in the Eastern Health

region;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $413,000 to enhance hyperbaric medicine at the Health

Sciences Centre;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $348,400 to help reduce wait times for CT services in St.

John's;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $366,600 to operate MRI services in Central Newfoundland;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $114,400 to enhance services for patients with cystic

fibrosis, including a physiotherapist to support the Adult Medicine Program and

funding for nurse practitioner services; $110,100 to improve physiotherapy

services in Grand Bank;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $89,500 for the respiratory therapy services at the Captain

William Jackman Hospital in Labrador City;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: And, $80,000 for community occupational therapy services to

enhance safety, independence and quality of life for clients serviced by Central

Health.

Ensuring that health care programs and services are available closer to home

for residents living in Newfoundland and

Labrador continues to be a priority for our government. The

Medical Transportation Assistance Program is designed to help residents who

incur substantial costs when travelling for insured specialized services that

are not available in their region or within the Province. This year, effective

October 1, 2010, with an investment of $606,000, we will enhance this program by

allowing the reimbursement of mileage at the rate of $0.16 per kilometre for use

of private vehicles when use totals more than 5,000 kilometres within a 12-month

period.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We will make other investments as well, including: $101,000

to increase ambulance staffing levels in the Western Health region; $500,000 for

the planning, design and redevelopment of a new primary health care centre to

serve the nearly 3,200 residents who live in the area north of Marystown on the

Burin Peninsula;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $300,000 to hire diabetic education staff in Sheshatshiu,

in Natuashish, in Flower's Cove, in Roddickton, Happy Valley-Goose Bay and

Southern Labrador;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $137,400 to hire three licensed practical nurses to work in

St. Anthony, Happy Valley-Goose Bay and Labrador West;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $200,000 in support of a pilot project reviewing safety and

security issues within transition houses throughout the Province; and

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: The creation of a new position of Aboriginal Health Liaison

to help develop a holistic and a collaborative Provincial Aboriginal Health

Policy Framework.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Since 2004, our government has established new dialysis

sites in Burin, Carbonear, Gander, St. Anthony and Happy Valley-Goose Bay. This

year, we will invest over $1.1 million to establish a new dialysis site in

Labrador City

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: - and another one for Mr. Keeping and the good people of

Port aux Basques.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: There are 450 people with diabetes throughout the Province

who are using the insulin pump therapy. Currently, our government provides

funding for this therapy to children and to young people up to the age of 18 at

a cost of $1.4 million. With an additional investment this year of $797,700, we

are expanding coverage for insulin pump therapy to include people aged 18 to 25.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Examples of other investments include: $159,000 to support

provincial breastfeeding initiatives as outlined in the Breastfeeding Strategic

Plan; $246,000 for the addition of four nurses to ensure patient safety and

quality of care in Neonatal Intensive Care and prevent diversions out of the

Province; and

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $800,000 to continue funding the human papillomavirus, or

HPV, immunization program for adolescent females.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Our government is working to ensure that those suffering

from mental illnesses and addictions have effective treatment options available

to them. We have already committed to build two new treatment facilities:

Firstly, this year, we are providing $2.4 million for the continued planning and

construction of a new residential treatment centre in St. John's for children

and youth with complex mental health needs and behavioural issues; Secondly, we

are providing $2 million to help establish a residential treatment centre in

Grand Falls-Windsor for children and youth with addictions.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: There are also adults in our Province who have more severe

and persistent addictions issues and may require longer-term residential

treatment, so this year we are providing $2 million for the planning and the

development of an adult residential addictions treatment centre in Harbour Grace

that will complement the Humberwood Treatment Facility in Corner Brook, which

provides short-term treatment.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We are also providing: Funding to hire a new psychologist

to enhance the eating disorders treatment program at Eastern Health; $118,600 to

address the growing needs in geriatric mental health service; $300,000 to

support new community-based projects with a focus on mental health, addictions

and other issues; and, $482,900 to enhance child psychiatry services at the

Janeway Hospital.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, our government understands that, with an aging

population, Newfoundland and Labrador must strengthen its long-term care and

community support systems. In Budget 2010, we are investing a total of $60

million to improve these services and enhance supports across the Province:

$27.3 million of that total will continue the development of long-term care

facilities at the site of the old Janeway Apartments in Pleasantville to

accommodate 460 residents; an initial investment of $4 million will pave the way

for a new 250-bed long-term care facility in Carbonear, which will also benefit

from a redevelopment of ambulatory care at the Carbonear General Hospital; $3

million will complete construction of the new 236-bed long-term care facility in

Corner Brook that, together with the four protective community bungalows already

completed, represents an investment of $68.5 million; $8 million will allow

construction to start on a new long-term care facility in Lewisporte;

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: $2.1 million will complete the long-term care facility in

Happy Valley-Goose Bay; $1.7 million will provide a new protective care

community residence in Bonavista, Mr. Speaker, with specialized care and

accommodations for twelve residents with mild to moderate dementia; and,

some-$115,000 will expand nurse practitioners services in Burin to assist

residents living in long-term care facilities.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: An investment of $8.9 million will allow for an increase in

the home support hourly subsidy rate by an additional seventy-five cents on July

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We will increase the personal care home subsidy rate from

$1,644 to $1,717 through an investment of $3.2 million, and we will address the

waitlist for portable subsidies by approving 100 new subsidies.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, we are promoting the health of our people, not

only when we are strengthening the system that cares for them when they are ill,

but also when we are encouraging healthy lifestyle choices that promote

wellness. Through our Healthy Aging Strategy, our Recreation and Sport Strategy

and our Provincial Wellness Plan, we are encouraging people of all ages to

improve their health by getting active.

We will continue to promote the Wellness Plan in communities throughout the

Province this year by providing an additional $200,000 under the Provincial

Wellness Grants Program for community-based agencies, and our focus this year

will be on improving access and increasing opportunities for children to be

physically active.

Other initiatives to encourage active lifestyles, particularly among children

and youth include: $200,000 for community-based after school programs; $150,000

for lease space for provincial recreation and sports organizations; $131,000 to

help organizations develop programs promoting healthy eating and physical

activity; and, $50,000 for the Aboriginal Sport and Recreation Circle to promote

physical activity and athletic development for Aboriginal people.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We are also increasing our capital grants for recreation

and sport facilities by $300,000 bringing the total to $1.3 million in order to

redevelop the aging recreational infrastructure that exists in many rural

communities. We believe rural residents, particularly children and youth, ought

to be able to engage in active, healthy recreational activities at facilities

near home.

We will also invest $350,000 for an Advancing Sport Development program for

young athletes vying for the Newfoundland and Labrador Games and the Canada

Games, because we know that they too, like so many young people in Vancouver and

at Whistler this winter, can achieve any dream that they set out to achieve.

CONCLUSION

Start to finish, Mr. Speaker, this budget is about children: their dreams,

their best wishes, their best interests, their province and their future.

Our seventh budget builds on the investments we have been making since 2003

and takes us giant strides forward along the road to self-reliance.

We are making investments in infrastructure to stimulate growth.

We are investing in diversification to broaden our foundation.

We are investing in our rural communities and in Labrador because all regions

ought to benefit from opportunity.

We are investing in poverty reduction because everyone deserves a fighting

chance to achieve personal self-reliance.

We are investing in health and wellness because that is our solemn duty

We are investing in our children to give them the future that they so richly

deserve.

Mr. Speaker, self-reliance does not mean isolation. It simply means never

having to settle for less than we are capable of achieving.

We believe that our children are capable of achieving extraordinary goals,

and there is no reason that they should ever feel they have to leave home in

order to do it.

This is home, and we are blessed with all the opportunities we need to

prosper and to thrive right here for generations to come.

This budget is about making the most of all those opportunities by making the

best decisions, the right decisions. The right investments for today. The right

investments for our children. The right investments for our future.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Finance and President of Treasury

Board.

MR. MARSHALL: Mr. Speaker, I move, seconded by the Premier, that the

debate be adjourned.

MR. SPEAKER: The motion is that the Budget Debate be now adjourned.

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

The motion is carried.

On motion, Budget Debate adjourned.

MR. SPEAKER: The hon. the Minister of Finance and President of Treasury

Board.

MR. MARSHALL: Mr. Speaker, I wish to inform the House that I have

received a message from His Honour the Lieutenant Governor.

MR. SPEAKER: Order, please!

Please rise.

The message reads: As Lieutenant Governor of the Province of Newfoundland and

Labrador, I transmit Estimates of sums required for the Public Service of the

Province for the year ending 31 March 2011, in the aggregate of $6,911,004,000

and in accordance with the provisions of sections 54 and 90 of the Constitution

Act, 1867, I recommend these Estimates to the House of Assembly.

Sgd.:_________________________

John C. Crosbie, PC, OC, ONL, QC

Lieutenant Governor

Please be seated.

The hon. the Minister of Finance and President of Treasury Board.

MR. MARSHALL: Mr. Speaker, I move, seconded by the Premier, that the

message together with the Estimates be referred to a Committee of Supply.

MR. SPEAKER: It is moved and seconded that the message from His Honour

the Lieutenant Governor together with the Estimates referred to a Committee of

Supply and that I do now leave the Chair.

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

The motion is carried.

On motion, that the House resolve itself in a Committee of the Whole on

Supply, Mr. Speaker left the Chair.

Committee of the Whole

CHAIR (T. Osborne): Order, please!

We will now take a few moments to distribute the budgetary documents to all

hon. members.

[Budgetary documents are distributed]

CHAIR: Order, please!

Now that I have completed the very important duty of making sure the

documents have been delivered to all hon. members, I recognize the hon.

Government House Leader.

MS BURKE: Thank you, Mr. Chair.

I move that the Committee rise, report progress and ask leave to sit again.

CHAIR: The motion is that the Committee rise, report progress and ask

leave to sit again.

All those in favour, 'aye'.

SOME HON. MEMBERS: Aye.

CHAIR: All those against, 'nay'.

Carried.

On motion, that the Committee rise, report progress and ask leave to sit

again, Mr. Speaker returned to the Chair.

MR. SPEAKER (Fitzgerald): Order, please!

The hon. the Member for St. John's South and Deputy Speaker.

MR. T. OSBORNE: Mr. Speaker, the Committee of Supply have considered the

matters before them and have directed me to report that they have made some

progress and ask leave to sit again.

MR. SPEAKER: The Chair of Committee of Supply reports that the Committee

have considered the matters to them referred and have directed him to report

that they have made some progress and ask leave to sit again.

When shall the report be received?

MS BURKE: Now, Mr. Speaker.

MR. SPEAKER: Now.

When shall the Committee have leave to sit again?

MS BURKE: Tomorrow, Mr Speaker.

MR. SPEAKER: Tomorrow.

On motion, report received and adopted, Committee ordered to sit again on

tomorrow.

MR. SPEAKER: Notices of Motion.

Notices of Motion

MR. SPEAKER: The hon. the Minister of Finance and President of Treasury

Board.

MR. MARSHALL: Thank you, Mr. Speaker.

I give notice that I will ask leave to introduce a bill entitled,

An Act To

Amend The Income Tax Act, 2000 No. 2. (Bill 9)

I give further notice, Mr. Speaker, that I will move that the House resolve

itself into a Committee of the Whole to consider a Resolution Respecting the

Imposition of Taxes on Tobacco. (Bill 10)

Thank you, Mr. Speaker.

MR. SPEAKER: Further notices of motion?

The hon. the Government House Leader.

MS BURKE: Mr. Speaker, I move, seconded by the hon. Minister of Natural

Resources, that the remaining Orders of the Day do stand deferred and that this

House on its rising do adjourn.

MR. SPEAKER: The motion is properly moved and seconded that this House do

now adjourn.

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

This House now stands adjourned until 1:30 of the clock tomorrow, being

Tuesday.

On motion, the House at its rising adjourned until tomorrow, Tuesday, at 1:30

p.m.