Newfoundland and Labrador Hansard — Members' Statements; Statements by Ministers — 13 December 2012 (47th General Assembly, 1st Session, Vol. XLVII No. 69)

2012-12-13

Newfoundland and Labrador — Debates (Hansard)

Newfoundland and Labrador Hansard — Members' Statements; Statements by Ministers — 13 December 2012 (47th General Assembly, 1st Session, Vol. XLVII No. 69)

2012-12-13

Newfoundland and Labrador — Debates (Hansard)

December 13, 2012 HOUSE OF ASSEMBLY PROCEEDINGS Vol.

XLVII No. 69

The House met at 1:30 p.m.

MR. SPEAKER (Wiseman): Order, please!

Admit strangers.

Statements by Members

MR. SPEAKER: Today we will have members'

statements from the Member for the District of Mount Pearl North; the Member for

St. John's North; the Member for the District of Mount Pearl South; the Member

for the District of Bonavista South; the Member for District of Port de Grave;

and the Member for the District of Signal Hill Quidi Vidi.

The Member for Mount Pearl North.

SOME HON. MEMBERS: Hear, hear!

MR. KENT: Thank you.

Mr. Speaker, I rise in this hon. House today to

congratulate the Mount Pearl Minor Hockey Association for being recognized by

Hockey Newfoundland and Labrador as Club of the Year during its Annual General

Meeting this past spring.

This award is presented to a hockey association that

makes significant contributions to the sport within the local community and

across the Province. Many volunteers with the Mount Pearl Minor Hockey

Association were recognized during the AGM as well.

Denise Fagan was elected as Eastern Zone Co-ordinator

for Hockey NL. Gerry Taylor received the President's Award for his ongoing

support to Hockey NL President, Mr. Jack Lee. Ms Bonnie Evans received a Gold

Stick Award for her many years of service to Hockey Newfoundland and Labrador.

Last, but not least, Mr. Gerry Evans was named Honourary Life Member of Hockey

Newfoundland and Labrador.

It is evident that volunteerism is certainly alive and

well in the City of Mount Pearl.

Mr. Speaker, I ask all members of this House to join

me in congratulating the Mount Pearl Minor Hockey Association, along with these

outstanding volunteers. As we have recently begun a new hockey season, I wish

the best of luck to everyone.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The Member for St. John's North.

MR. KIRBY: Mr. Speaker, I rise today to salute a

resident of St. John's North who was recently recognized with a Seniors of

Distinction Award.

Ted Blanchard has a long record of service to the

people of this Province, including serving one term, in the 1980s, as the MHA

for Bay of Islands. Born in Gillams, he worked as a teenager in the Bowater mill

in Corner Brook for a short time before training as a teacher.

Ted and his family settled in St. John's, where he

spent most of his career working for the provincial government. A labour

mediator, Ted is known in other circles for his contributions to music in the

Province with Don Randell, he released the first-ever commercial recording of

Newfoundland music in 1957. They received the St. John's Folk Arts Council

Lifetime Achievement Award in 2008.

Ted also spent years with the Royal St. John's Regatta

as a rower, coach, coxswain, and committee member. Since his retirement, he has

been able to focus on his hobbies and passions, and our community is much better

and much richer for it, Mr. Speaker.

I ask all hon. members to join me in congratulating

Ted Blanchard on receiving the Seniors of Distinction Award.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The Member for Mount Pearl South.

MR. LANE: Thank you, Mr. Speaker.

Mr. Speaker, it gives me great pleasure to rise in

this hon. House to recognize an individual for her tremendous contribution to

the City of Mount Pearl.

Lucy Stoyles is a long-time resident, city councillor,

and community volunteer. She has served on all standing committees of council,

the Regional Water Committee, Municipal Assessment Agency, and the Northeast

Avalon Joint Councils. She has also served the past two terms as Avalon Director

of Municipalities Newfoundland and Labrador and at the recent Municipalities NL

Annual Convention, received a sixteen-year long service award.

This former Mount Pearl Citizen of the Year has

volunteered with Lupus NL, the Kidney Foundation, Literacy NL, Learning

Disabilities of NL, School Lunch Program, St. Peter's Parish, and the Mount

Pearl Frosty Festival. She has also raised thousands of dollars for residents of

the community dealing with medical challenges.

They say volunteers are the heart of the community.

Lucy is the heart, the soul, and a true representative of human kindness,

compassion, and love for her community.

I would ask all hon. members to join me in

congratulating Lucy Stoyles on her many accomplishments and thank her for

exemplary service to the citizens of Mount Pearl and to the Province as a whole.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The Member for Bonavista South.

MR. LITTLE: Thank you, Mr. Speaker.

Honourable colleagues, I rise today to congratulate

Edith Samson on receiving the Queen's Diamond Jubilee Medal. Ms Samson was

recognized for the countless volunteer hours she has contributed towards the

betterment of Trinity Bay North Region.

Edith is currently the executive co-ordinator for the

Sir William Ford Coaker Heritage Foundation. Her latest accomplishment at this

site is the restoration of the retail store and the salt fish plant.

Through great vision, determination and teamwork, this

site is one of the greatest tourist attractions for the district and the

Province of Newfoundland and Labrador. It is certainly worth a visit to the

historic community of Port Union.

Ms Samson serves as the co-chair of the GEO Park

Committee, another wonderful project in the works, guaranteed to attract both

tourists and residents of the Province. She is a member of the Community Sector

Council, the Rural Secretariat, the Emergency Response Committee, and was chair

of the Local Home & School Committee. If this does not keep Edith busy enough,

she is also a member of the Cabot Loop Voluntary Clusters Project and the

Leadership Advisory Committee.

Mr. Speaker, it is certainly evident that Ms Samson is

deserving of this prestigious medal; so please join me in recognizing Edith

Samson for her continued hard work and dedication.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for the District

of Port de Grave.

MR. LITTLEJOHN: Thank you, Mr. Speaker.

I stand today in this hon. House to recognize and

congratulate the Upper Island Cove Volunteer Fire Department on forty years of

service to the Communities of Upper Island Cove, Bryant's Cove and Bishop's

Cove.

Much has changed in those forty years but much has

stayed the same, says Chief Harvey Mercer. Those first years when a call was

received the first member at the hall rang the bell. Today, members using

technology and pagers go and answer the call as well.

The twenty-two members train each Tuesday evening in

preparation for the call. Fire departments today not only respond to house fires

but in many cases are first responders to vehicle accidents, medical emergencies

and pet rescues. This year alone they have responded to 115 calls, which

demonstrate their ongoing dedication and commitment to their communities.

The fire department played a major role in the

development and implementation of the Town of Upper Island Cove's new emergency

response plan. As well, I would like to congratulate Assistant Chief Darren

Mercer on being named firefighter of the year.

I ask all members to join me in congratulating the

Upper Island Cove Volunteer Fire Department on forty years of loyal service.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for the District

of Signal Hill Quidi Vidi .

MS MICHAEL: Thank you very much, Mr. Speaker.

I rise today to recognize an innovative development in

my district. The Quidi Vidi Plantation is a wonderful example of good things

that happen when people work together.

The Quidi Vidi Village Foundation, incorporated in

1999, has the mandate to preserve and protect the character, culture and

historical significance of Quidi Vidi Village, while developing the tourism

industry and promoting economic and social growth for residents.

The Foundation now has offices in the 4,600-square

foot Plantation building, formerly the Eli Tucker fishing premises. Judy

Ryerson, current, and Barb Mallard, the first president of the foundation,

worked tirelessly to achieve the dream of preserving a piece of our cultural

history.

The vision and support of St. John's city councillors

and staff, and funding from ACOA, brought the dream to reality.

Today, the Plantation is a craft incubator, a

beautiful and functional studio space where visitors can watch, interact with,

and support craftspeople who produce unique handmade items.

Mr. Speaker, I ask all hon. members to congratulate

the Quidi Vidi Village Plantation and all the people who worked so hard to put

it in place, and I encourage everyone to take time to visit this wonderful spot.

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.

SOME HON. MEMBERS: Hear, hear!

MR. DAVIS: Thank you, Mr. Speaker.

I rise today to announce the annual launch of the Snow

Means Slow winter road safety awareness campaign.

Mr. Speaker, the Department of Transportation and

Works endeavours to reach drivers with the Snow Means Slow message every year at

this time to remind them to adjust their driving habits to road and weather

conditions.

Driving safely is vital at all times of the years,

however, with the weather we experience here in Newfoundland and Labrador it

places extra emphasis on safe driving practices as we head further into the

winter season. Snow can create highly dangerous driving conditions with

whiteouts and reduced visibility.

The Department of Transportation and Works maintains

more than 9,000 kilometres of highway Mr. Speaker, that is longer than the

entire distance of the Trans-Canada Highway from St. John's, Newfoundland and

Labrador to Victoria, British Columbia. Our staff maintain more road than the

Trans-Canada spans from coast-to-coast, and they are committed to keeping each

and every metre of our roads as safe as possible.

With 567 pieces of equipment, including plow trucks,

graders, loaders, snow blowers, brine tankers, and backhoes, Transportation and

Works staff work to keep our roads clear of snow and ice. In the last five

years, we have invested in 101 new pieces of snow clearing equipment, which

replaced older machines; and every year, Mr. Speaker, we invest $65 million in

our winter maintenance program. Our staff work in the most treacherous of

weather, and at times putting their own safety on the line to keep the public

safe themselves.

Mr. Speaker, the Snow Means Slow message is an

important one, given the high speeds at which drivers sometimes travel on our

highways. Department of Transportation and Works road crews do their best to

keep the Province's roads safe, but drivers must also do their part as well by

adjusting their speed to suit road and whether conditions.

Mr. Speaker, as we enter further into the winter

season, I ask drivers to adjust their speed and make our Province's highways

safer for everyone. Remember, Mr. Speaker, Snow Means Slow.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Bay of

Islands.

MR. JOYCE: Thank you, Mr. Speaker.

I thank the minister for an advance copy of his

statement.

We also on this side, as the Opposition, do thank the

staff for keeping our roads safe throughout Newfoundland and Labrador throughout

the year. Snow Means Slow is a great concept that we must adapt across all of

our highways, Mr. Speaker, to make them safe. They ensure that people are very

conscious of the winter conditions, the snow conditions, and our highways.

Mr. Speaker, I have to bring up the twenty-four hour

snow clearing. I know my colleague, the Member for Burgeo La Poile has brought

it up and presented petitions on many occasions the stretch of highway from

Port aux Basques to Stephenville. Many nights, people cannot even pass it. That

is our gateway to the Province, but yet we cannot get twenty-four-hour snow

clearing.

I ask the minister once again, if you are going to

keep your highways safe and Snow Means Slow, we have to ensure that our highways

are safe. I know, Mr. Speaker, the twenty-four hours do not include the Bay of

Islands. On many occasions last winter, I know in three, the school buses could

not even go; they had to wait for the snow plows to come through. It is a major

safety concern.

I agree with the minister on Snow Means Slow. We

definitely have to ensure that the roads are clear so that people can at least

drive slowly on the roads when there are winter conditions.

I thank the minister for making it aware for all the

Province of Newfoundland and Labrador. It is all incumbent on us to make this

idea more public awareness for the people of Newfoundland and Labrador. To the

people: drive slow; it is your life we are talking about.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for St. John's

East.

MR. MURPHY: Thank you very much, Mr. Speaker.

I would also like to thank the minister for the

advance copy of his statement and as well, to thank the highway staff,

particularly, who are out there working the roads, sometimes around the clock.

We know that there are going to be changing conditions. Thanks to the staff for

keeping on top of that.

Outside of that, besides what the highway workers do,

Mr. Speaker, there also has to be recognition amongst the general public that

conditions can change relatively quickly. In my twenty-three years of commercial

driving, the one rule that I came to understand was that if you were in doubt

about the road conditions, do not do not travel. It is as plain and simple as

that sometimes.

Another word, Mr. Speaker, on that is a word of

caution, as well, to drivers. The one thing that I found in my twenty-three

years of commercial driving: make sure that your braking systems on your cars

and everything are in good operational order. It does not take much to throw a

car out of control if the brakes are working unevenly. As well as that, Mr.

Speaker, watch the roads for hazards and watch out for flat tires. Always make

sure that you are carrying the appropriate safety equipment.

With that, thanks again to the minister and the staff

for the Snow Means Slow awareness campaign.

Thank you very much.

MR. SPEAKER: Does the hon. the Member for St.

John's South have leave?

AN HON. MEMBER: No.

MR. SPEAKER: The hon. the Minister of Tourism,

Culture and Recreation.

SOME HON. MEMBERS: Hear, hear!

MR. FRENCH: Mr. Speaker, I rise in this hon. House

today to highlight the provincial government's commitment to providing citizens

of Newfoundland and Labrador with opportunities to engage in regular physical

activity, an essential part of healthy living.

More specifically, I would like to focus on the

benefits of the recreation grants provided by the provincial government,

including the Community Recreation Development Grant Program and the Capital

Grant Program.

These recreation grant programs help town councils and

local committees develop, promote, and maintain recreation, sport, and physical

activities in their communities. Upgrades to local recreation and sport

infrastructure such as playgrounds are funded to ensure residents have safe and

accessible facilities. As well, a variety of community-based recreation

activities are supported through these grants, such as recreational sports,

seasonal programs for citizens of all ages, and active living initiatives for

the entire community.

The provincial government's support for recreation and

sport in this Province has included an investment of more than $70 million since

the launch of Active, Healthy Newfoundland and Labrador, which has been

committed to recreation and sport infrastructure, programming, and athlete

development throughout the Province.

One of the numerous communities that will benefit from

the recreation grants is Little Burnt Bay. I will be there tomorrow to announce

details on the extensive funding provided through the latest series of

recreation grants. I look forward to visiting Little Burnt Bay and seeing

firsthand how funding under the Recreation Grant Program impacts their

community.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Bay of

Islands.

MR. JOYCE: Thank you, Mr. Speaker.

I thank the minister for the advance copy of his

statement.

Mr. Speaker, myself as a former athlete and still a

coach of basketball, I know how much a lot of these grants and funds help out

kids for recreation. It is all of our responsibility to ensure that we promote a

healthy living style.

Mr. Speaker, the former Minister of Tourism, Culture

and Recreation helped me obtain a grant for the Town of York Harbour and Lark

Harbour this past summer and with grant we started a new soccer program the

parents did with fifty-eight kids in the new first-year soccer program. The

minister helped with the $15,000 for the fencing and to develop the soccer

field. That is a great endeavour, which shows how much this program does work in

Newfoundland and Labrador and in rural Newfoundland and Labrador.

We all know the high incidence of obesity in

Newfoundland and Labrador and we as all parliamentarians must find some way to

help out. We also must make the education program more available and try to

promote healthy living, which I know we all do as people in the Legislature.

Mr. Speaker, I just continue: if there is any way that

we can expand the program to help, anything that we can do to help with active

lifestyles, with more education on fitness, more education on sports, it is

going to help in the long run in our health care bill.

I will thank the ministers, the former minister for

his assistance and this minister for some work that was done in the Bay of

Islands through this grant. I can assure you: if you want to know a prime

example of where this grant works, I say walk down to York Harbour and see the

soccer program that they have next summer.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for The Straits

White Bay North.

MR. MITCHELMORE: Thank you, Mr. Speaker.

I, too, thank the minister for an advance copy of his

statement. These two grant programs are essential for communities, especially

rural communities with limited funds. In my own district, communities are able

to repair their facilities and build new ones to respond to changing recreation

needs of our population.

We have to continue to do more to access healthy

lifestyles and to better manage our high levels of obesity and diabetes.

Government must continue these investments in recreation and sports

infrastructure programs. It is more critical now than ever that we maintain a

healthy population. This is good investment in people, and I certainly thank the

minister for all the good work he has done.

Thank you, Mr. Speaker.

MR. SPEAKER: Does the Member for St. John's South

have leave?

AN HON. MEMBER: No leave.

MR. SPEAKER: Oral Questions.

Oral Questions

MR. SPEAKER: The hon. the Leader of the Official

Opposition.

MR. BALL: Thank you, Mr. Speaker.

Last week we heard of a $100 million clean up for the

Premier's expropriation mistake in Grand Falls-Windsor. We are now pushing $15

million on legal fees for this botched expropriation, $30 million to cover Emera

if they want out of Muskrat Falls, and now a projected deficit of $725 million.

I ask the Premier: Have you now lost complete control

of the financial matters of this Province?

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

President of Treasury Board.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, this government, since

we have gotten in office, has had cumulative surpluses of over $5 billion. We

lowered the net debt by $4 billion.

Mr. Speaker, the economy of this Province remains

strong. It is strong right now and it is going to continue to be strong. We have

capital investment the highest in our history. The rate of growth is highest in

the country. It is driving employment. Employment is higher. There is a new

record in employment and the people are getting higher wages.

Average weekly wages in this Province are now the

highest they have ever been. For the first time in our history, they are higher

than the Canadian average. Mr. Speaker, that is leading to business confidence

and consumer confidence. We are seeing it in retail sales, we are seeing it car

sales, and we are seeing it in new records in car sales and housing stats that

are the highest in our history.

The economy is strong and confidence is strong.

Unfortunately, we have a fiscal problem caused by the slowdown in the world

global economy.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The Leader of the Official

Opposition.

MR. BALL: (Inaudible) a lot about the past but,

Mr. Speaker, what he has done this year is actually projected oil pricing to be

at what we consider to be exaggerated levels. The minister, as I said, is now

projecting a $725 million deficit and this largely due to an exaggerated price

per barrel that government budgeted for this year.

I ask the Premier: How did you and why did you budget

$124 a barrel when you know prices have not been close to that for this year?

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

President of Treasury Board.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, when we budget for

mineral prices and when we budget for oil prices, we rely on the best experts in

the world. That is who we rely on. We get their numbers and we follow up, and we

get additional forecasts and we have to adjust accordingly.

What has happened is that the anticipated improvement

in the world economy coming out of the recession was not as fast as people had

expected. It is much lower. As a result of that we have a recession in Europe.

There is a slowdown in the US. They are not buying from China; China's exports

are down. India's are down even more. Therefore, demand for commodities is down.

If demand for commodities is down, prices are down, which means royalties go

down and taxes go down.

It is not just us, Mr. Speaker. Alberta has the same

thing. BC has the same thing. Canada has the same thing. It is a world economy,

but our own economy is doing very well.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The Leader of the Opposition.

MR. BALL: Mr. Speaker, what was really ironic in

that response was that the same experts which was really about seven, eight

months ago had the inputs into this budget at $125 a barrel, and they have not

been right once. These are the same experts we are going to use for a fifty-year

projection, Mr. Speaker. I would have to question those experts.

Before government can borrow with the federal loan

guarantee, they must put up billions of dollars in equity for the Muskrat Falls

Project. This money has to come from somewhere, but with the $725 million

deficit, cash reserves, as we know, are drying up.

So I ask the Premier: Are you now going to borrow

money for your equity investment in Muskrat Falls, not covered by the federal

loan guarantee?

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

President of Treasury Board.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, we have always said

that we would finance our equity investment in Muskrat Falls by the Province. It

is about $2 billion that we will put in, and we will invest it out of our cash

that we have on hand, out of borrowings, depending on the cash flows at the

particular time.

We have $1.4 billion in the bank today, Mr. Speaker.

Based on the future, we have other projects we are going to do as well lots of

infrastructure projects we are going to be doing. We are going to need cash for

that, and if we have to borrow, we will borrow. The difference is that our

equity investment will put $2 billion into this project, but over the next fifty

years we will get $20 billion out of the project.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, this is the right thing

to do, because as oil revenues go down, we are replacing those revenues with

renewable revenues from a renewable source of revenue Muskrat Falls, and Gull

Island to come after that.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The Leader of the Opposition.

MR. BALL: Well, Mr. Speaker, we know, too, that

there will be no revenues until past 2017, and that is not including the

overruns. So we must be very careful, because there could be significant costs

left on this project yet.

It is inaccurate for the minister to say that Muskrat

Falls will not add 1 per cent to the provincial debt. The money for government's

$2 billion in equity has to come from somewhere. If it is taken out of cash

reserves, we must borrow for other things, like the hospital in Corner Brook,

Mr. Speaker. So, it is easy to govern when the purse is full.

How much money will we have to borrow to make ends

meet, and at what rates?

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

President of Treasury Board.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL:

Mr. Speaker, the Leader of the Opposition knows that our

investment in the Muskrat Falls Project will not increase our net debt by one

cent not one cent. We will use our cash and we will use borrowing if we have

to, to finance our equity investment in a project that is going to not increase

our net debt, because we will have our borrowings on the one side, but we will

have an asset on the other side.

It is an asset that is going to kick off cash to this

Province starting in 2017 at $15 million. At the end of fifty years, it will be

$900 million; it is an average of $450 million a year that will pay down that

debt. Mr. Speaker, if we have to do some borrowing in the future we have not

borrowed for eight years. That government never can say anything like that.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

AN HON. MEMBER: (Inaudible).

MR. SPEAKER: Order, please!

The Speaker has not recognized the member yet.

The hon. the Leader of the Official Opposition.

MR. BALL: Thank you, Mr. Speaker.

I will say what this government has done is they have

taken the benefits from a lot of good projects from the Liberal government and

they know it.

SOME HON. MEMBERS: Hear, hear!

MR. BALL: They know that. They should admit it.

Give credit where credit is due, Mr. Speaker.

The Minister of Finance said that cuts were coming

from public service and government programs.

I ask the Premier: What programs

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MR. BALL: are you planning to cut, and how many

people will be issued pink slips because of your poor planning?

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

President of Treasury Board.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, the money that comes

into the government comes from the people of the Province and comes from

business in the Province. We use that money and we give it back to the people.

It is the people's money, Mr. Speaker, it is not ours.

Mr. Speaker, when the money is gushing in and there

are times when it is gushing in we are very happy to pay our public servants

more, we are very happy to build infrastructure, and we are very happy to add

progressive social programs to the people of the Province. When the revenue

stops coming in because of what is going on in the world economy that we do not

control, we are takers of those prices. When the revenue goes down we obviously

have to lower our expenditures to match our revenues.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MR. MARSHALL: Families have to do that, businesses

have to do that when their income is down, governments have to do that. It is a

responsible thing to do.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Official

Opposition.

MR. BALL: Thank you, Mr. Speaker.

What we call responsibility is sustainable planning,

Mr. Speaker. That we have not seen. The Premier has increased the costs of

government

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MR. BALL: with no sustainability planning for

the future. Now she has realized that she has to take it all back.

I ask the Premier: How can you expect the people to

have confidence in your government when they are obviously mismanaging the

public purse today?

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

President of Treasury Board.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, when the friends of the

hon. member were in office, how many surpluses did they have? You would have to

search pretty far to find them.

Mr. Speaker, we have had six surpluses in the last

seven years. We have lowered net debt

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MR. MARSHALL: by over $4 billion.

Mr. Speaker, we are off equalization. Our credit

ratings have gone up. Mark Carney says that this Province has been a model for

the rest of the country.

Mr. Speaker, we take our responsibilities to the

people of this Province very, very seriously. It is their money. We will never

forget that and we will be responsible insurers of the taxpayers' money.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Official

Opposition.

MR. BALL: Thank you, Mr. Speaker.

It is obvious now that this government wants to take

credit for everything that has been done before 2003 as well. They forget the

great projects that have been done that they are now taking full advantage of.

Why do they not give credit for that, Mr. Speaker?

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MR. BALL: Government is playing with the lives of

the hardworking people of Newfoundland and Labrador. They are not only planning

to issue pink slips, but they are planning to strip pensions.

I ask the Premier: What exactly have you planned for

pension stripping, something the Minister of Finance says needs to happen?

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

President of Treasury Board.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, pension plans in this

Province, the Public Service Pension Plans, are simply not sustainable. That is

a fact. We have not put any proposals on the table to strip away any pension

plans. We are not going to do anything to hurt any people who are presently

retired and receiving pensions, but the pensions are not sustainable, so we have

asked the unions to come in and meet with us to discuss what we are going to do

to reform that and how we are going to make those pensions sustainable.

Mr. Speaker, New Brunswick has made changes. They came

up with a shared cost program. England is making changes. We have to work

together or there are not going to be pensions left. It is very important that

the pensions are there, that they are protected, and they are strong for the

people who work for this Province, to look after them in their retirement.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Official

Opposition.

MR. BALL: Thank you, Mr. Speaker.

The Newfoundland and Labrador Nurses' Union has

publicly stated: hands off our pensions. This morning the minister replied and

responded by saying: hands off our pensions means you will not have a pension.

I ask the minister: What did you mean by this comment?

Is this a threat to the nurses and other public sector workers?

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

President of Treasury Board.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, the President of NAPE,

the President of the Nurses' Union, said hands off our pensions. If we keep

hands off of their pensions, the pensions are going to go broke. If we are going

to stop that from happening, we have to do something.

I have invited the unions to come in and meet with me.

We had a meeting set up today but they could not make it today. We had a meeting

set up earlier which NAPE could not make.

The idea is to get together, to look at the problem

and come up with solutions. The public sector unions can bring expertise to that

discussion. They have people working for them who are experts in this area. I

was on the phone last week to the Secretary Treasurer of the Canadian Labour

Congress and we talked about that. Working together we can do something but if

we take hands off, those pension plans are going to go broke.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Official

Opposition.

MR. BALL: Making a better recipe to go broke, Mr.

Speaker.

Two ATIPPA requests from our office to the Department

of Natural Resources show legal costs for Abitibi court cases in 2009-2010 to be

over $7 million. Yesterday, the Premier's office sent an e-mail to some media

stating that the legal costs for the Supreme Court for Abitibi case was $2

million.

I ask the Premier: Since these are just the costs for

one department in one fiscal year, can you confirm that there are other costs to

the Department of Justice as well as Nalcor, and how much are these expenses?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

Mr. Speaker, we were specifically asked by the

Opposition and others, what were the legal costs associated with the Supreme

Court case, and the legal costs are $2 million. Were there other costs incurred,

Mr. Speaker, absolutely, but they inform other pieces of work that need to be

done.

We need to know the scope of the remediation. There

was other information that was required, not only for the legal cases, Mr

Speaker, but for a government as we move forward in terms of the scope of work

that will need to be to done to remediate these properties. Legal fees on their

own, Mr. Speaker, associated with the expropriation of Abitibi are $2 million.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Official

Opposition.

MR. BALL: Mr. Speaker, from the information that

we have, we think those expenses are a lot higher.

I ask the Premier one more time: If you can include

all the Abitibi costs, the costs from all departments, how much is the total

bill for the legal fees for the Abitibi expropriation?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Mr. Speaker, I can only give

the same answer I have already given.

Mr. Speaker, the legal fees for government in the

Supreme Court of Canada case on the expropriation, all of the legal fees come to

$2 million. Now, I would suggest that everybody in this House of Assembly get an

oversized calculator, and maybe, Mr. Speaker, we can come to some agreement on

the numbers.

There are other pieces of work that were done that

informed the legal case but they are not specific to the legal case, Mr.

Speaker. It is to develop the understanding and the expertise that are going to

be required within government to remediate these properties.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for St. Barbe.

MR. BENNETT: Mr. Speaker, after an agonizing year

and extensive lobbying, parents and students will know tonight if their schools

will get the death knell as the Eastern School District Board Trustees meet in

Spaniard's Bay.

I ask the minister: Is it true that these boards were

asked to save your fiscally-incompetent government money on the backs of

children and communities, even though the schools may be viable?

MR. SPEAKER: The hon. the Minister of Education.

SOME HON. MEMBERS: Hear, hear!

MR. JACKMAN: Mr. Speaker, we know what an

emotional issue this is. There is no doubt about it, tonight will be a difficult

night for all involved. These trustees we have at the board level, Mr. Speaker,

are volunteers and they are very genuine.

Mr. Speaker, it is quite irresponsible for the member,

I will say this, who made a statement just a couple of days that there were

amendments in reference to the Schools Act and said there were changes. Mr.

Speaker, people have asked me: Have there been changes made? Mr. Speaker, that

is now, I have to get this right factually incorrect. This is simply

factually incorrect. It is irresponsible of the member to be putting incorrect

information out there, Mr. Speaker. The parents, the students, and the trustees

deserve better than what the hon. member is (inaudible).

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for St. Barbe.

MR. BENNETT: Mr. Speaker, schools boards in this

Province only make recommendations to the Minister of Education, who has the

final say on whether to close a school or not. The people of Catalina,

Whitbourne, Swift Current, Colliers, and Heart's Delight are not well served by

this government.

I ask the minister: Will he do the right thing and

stand with the parents and communities, and keep the schools open until his

government carries out a proper review of school closure processes in this

Province?

MR. SPEAKER: The hon. the Minister of Education.

SOME HON. MEMBERS: Hear, hear!

MR. JACKMAN: Mr. Speaker, one of the reasons we

have elected school boards is that they are at arm's-length. These are not

political decisions.

Here is a member, Mr. Speaker, who goes on a radio

talk show and says for politicians to stay out of it. Now, he is asking the

exact same irresponsible, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for St. Barbe.

MR. BENNETT: Mr. Speaker, while displaced workers

from the OCI plant in Marystown are working community projects, Burin plant

workers will receive a severance from High Liner who is closing the plant this

month. We now know two separate deals were negotiated between the Province and

these two companies.

I ask the minister: Why did your government require

High Liner to compensate Burin workers while allowing OCI to sacrifice workers

in Marystown?

MR. SPEAKER: The hon. the Minister of Fisheries

and Aquaculture.

SOME HON. MEMBERS: Hear, hear!

MR. DALLEY: Mr. Speaker, this is another

situation, I guess, where the facts would certainly help clarify for the member

what happened.

Our government, as we stated many times, is firmly

committed to the fishery of this Province and working with communities. In the

case of Marystown and Burin, they were operated by companies, Mr. Speaker, who

determined that their businesses were not viable; therefore, not sustainable.

In the operations of Marystown, there was an

obligation by the company. If they did not meet the obligation, they had to pay

a financial penalty. As determined by Deloitte, Mr. Speaker, the company met

their obligation; therefore, there was no financial penalty.

In the case of Burin, the company did not meet their

obligation. There was a financial penalty. Through the support of this

government for the people in Burin, this government decided that that financial

penalty could be into a trust to support the workers in the event of closure.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The Leader of the Third Party.

MS MICHAEL: Thank you very much, Mr. Speaker.

Today, in the same press release, government claimed

it was unable to predict the provincial economy nine months in advance, but then

also claimed that the benefits of Muskrat Falls will still be flowing fifty

years from now.

Mr. Speaker, I ask the Premier: How can this statement

be seen in any way as being a responsible statement on fiscal stewardship?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Natural

Resources.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Thank you, Mr. Speaker.

Mr. Speaker, when it comes to the prediction of oil in

the short term, it is very difficult as a result of the volatility as my

colleague pointed out earlier, we have the question of what happens in China and

India, it affects the demand for oil in the world. We have had shale oil, Mr.

Speaker, that is having an impact.

In the short term, volatility is difficult to project.

Mr. Speaker, in the long term, the basic principles, the fundamental principles

of supply and demand still apply. Even though we know there will be increased

production in the United States, we also know there is an increased demand in

the world.

What we are told by the experts: It is, in fact,

easier to look a decade out in terms of the projection of the cost of oil than

it is in the short term. Mr. Speaker, with Muskrat Falls, we know how much is

going to be produced, and electricity bills will be paid.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The Leader of the Third Party.

MS MICHAEL: Thank you very much, Mr. Speaker.

This government has had nine years and eight Budgets

to get the Province's finances on solid ground. It has known all along about the

volatility of oil.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MS MICHAEL: It has known all along about the

volatility of oil. This government has celebrated the surpluses, yet made no

provisions for the downside.

So, Mr. Speaker, how can Premier claim her government

is practising good fiscal stewardship?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

Mr. Speaker, we have used the same methodology in

determining the revenue of the Province, predicting the revenue of the Province,

in the last nine years. It was only a few short months ago when the NDP House

Leader was on in the media accusing us of deliberately underestimating the

revenue from oil so that we could have the joint surpluses.

Mr. Speaker, I would suggest that the Leader of the

Third Party confer with her House Leader and at least they try and get their

story right.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The Leader of the Third Party.

MS MICHAEL: Thank you very much, Mr. Speaker.

I assume the government is now going to recognize that

our House Leader should be separate from the leader of the party. I am going to

be pursuing that one, Mr. Speaker.

Mr. Speaker, the Minister of Finance says this year's

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MS MICHAEL: Budget shortfall has tripled his

spring prediction reaching $750 million.

Mr. Speaker, I ask the Premier: Does that sum include

the $100 million-plus cost of the bungled AbitibiBowater paper mill cleanup you

brought on the people of the Province?

SOME HON. MEMBERS: Hear, hear!

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

President of Treasury Board.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, expenses that are

incurred are included of course in the expenses of the Province. Some of the

environmental cleanup that has to be estimated. The engineers and the

scientists in the Department of Environment will go out and do an inventory and

do an analysis. As the Minister of Environment said the other day, they will do

an analysis.

That contamination that is harmful to public health

and public safety that will be done. Then an estimate will be provided for in

the public accounts and that is based on the recommendation of the Auditor

General.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The Leader of the Third Party.

MS MICHAEL: Thank you, Mr. Speaker.

The fall financial update shows the Premier is caught

in a vice. Huge cash demands for her Muskrat Falls Project vying with the first

of what will likely be many serious cash shortfalls in the Province's Budget.

The Province's finances are a mess.

Mr. Speaker, I ask the Premier: Will she choose to

download her mismanagement onto the backs of the people through cuts to services

in order to bankroll her Muskrat Falls Project?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Mr. Speaker, as the Minister

of Finance has outlined in this House a number of times, Muskrat Falls will not

add one penny to our net debt. We have had responsible governance. We have

reduced our debt by over $4 billion in the last nine years, Mr. Speaker.

Daily, daily, daily in this House we hear requests

from the Third Party, Mr. Speaker, for hundreds upon hundreds upon hundreds of

millions of dollars of new spending in this Province. Why don't they tell us how

they intend to fund it, Mr. Speaker?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The Leader of the Third Party.

MS MICHAEL: Thank you very much, Mr. Speaker.

It is one thing whether or not Muskrat Falls will

affect our debt. One thing is certain: It is going to take over $2 billion of

cash out of our income. Mr. Speaker, when things are going well

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MS MICHAEL: Mr. Speaker, when things are going

well this government always is quick to take credit, holding themselves up as

competent stewards of the public purse, but now when things are not going so

well, are they taking any responsibility? No, Mr. Speaker, it seems somebody

else is to blame.

Will the Premier stand up and take responsibility for

the massive deficits that will be racked up by her government beginning this

year?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

Mr. Speaker, we have always understood our

responsibility to the people of the Province. They are foremost in our minds and

in our planning, and everything we do. We remember who hired us, Mr. Speaker,

and why.

Mr. Speaker, when we developed our Energy Plan in

2007, we talked then, very specifically, about how important it was to get away

from basing over 30 per cent of our revenues on the volatility of commodities

and why we decided to use some of the money from our non-renewables to

transition to a renewable economy to get rid of that volatility and have a

sustainable financing platform foundation for the Province.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for St. John's

Centre.

MS ROGERS: Thank you, Mr. Speaker.

Mr. Speaker, families are under extreme financial and

emotional stress trying to find reliable home care or respite care for their

disabled children. Under the current system families can pay $2,000 to $3,000,

or more a month.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MS ROGERS: Mr. Speaker, the minister has already

said government spends $161 million on seniors and people with disabilities, but

home care must be an integral part of our public health care system.

Mr. Speaker, I ask the Minister of Health and

Community Services: When will this government stop charging families for home

care for their disabled children?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

Mr. Speaker, I cannot let this opportunity go and not

be able to draw attention to the contradiction we hear everyday in this House

from the Third Party.

We had the Minister of Finance this morning talking

about a $725 million deficit this year. We have the Leader of the Third Party

standing up and critiquing government, and asking what we are going to do to get

out of the mess, and immediately on her heels, Mr. Speaker, we have a request

for the Province to spend more money. That is what we deal with everyday in this

House.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for St. John's

Centre.

MS ROGERS: Mr. Speaker, these are expenses

directly on the backs of some of the most vulnerable people in our society.

Mr. Speaker, sixteen-year-old Courtney of Little

Catalina is severely disabled, cannot speak, is developmentally delayed and can

barely walk. Her mom has been a home care worker for fifteen years. Every

morning her mom bundles her up and takes Courtney to a respite worker and then

goes off to work to take care of someone else. The Steads are waiting for

government to fulfill its election promise of family paid home care workers

MR. SPEAKER: Order, please!

MS ROGERS: - however, this program can only work

if family care workers are part of a comprehensive home care program.

Mr. Speaker, I ask the Premier: When is she going to

honour her promise to help the Steads and other families like them by creating a

real home care system?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

Mr. Speaker, all of us can come to this House on a

daily basis and put forward very sad stories about the reality of people's lives

in this Province. When we hear the call to spend more, spend more, spend more

from the other side of the House, Mr. Speaker, we recognize that what is being

asked is in no way illegitimate. We do not argue that people do not deserve

these services, Mr. Speaker.

We absolutely understand that people have needs in

their lives and we as a government have to do the best we can to meet those

needs, but we have to operate within an envelope, Mr. Speaker, in order to be

responsible and sustainable. So every need cannot be met, Mr. Speaker.

MR. SPEAKER: The hon. the Member for St. John's

East.

MR. MURPHY: Thank you, Mr. Speaker.

The purchase of the Battery Hotel by Memorial

University means that the City of St. John's stands to lose close to $300,000

every year in taxation. Other government purchases of buildings like the two

Johnson Insurance properties at Portugal Cove Road and Elizabeth Avenue, for

example, has also short changed the city and impacted the city's bottom line and

to put taxpayers on the hook for the difference.

Question: Will the minister change the present

government policy and start paying its share of municipal taxation to

government?

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

Mr. Speaker, we now have the third person from the

Third Party speaking and requesting that we spend money.

Now, Mr. Speaker, government only has two ways to find

revenue. We either get it from royalties and taxes, Mr. Speaker, paid by

industry, business, and the people of the Province, or we have to raise taxes.

There are only two ways, Mr. Speaker.

The NDP seem to think that we have a money tree

growing in the backyard. There is only one taxpayer in this Province, Mr.

Speaker, and they are the people of Newfoundland and Labrador. If we do not have

the money from royalties and other sources of income, from our natural

resources, Mr. Speaker, then we can only go to taxpayers, whether the

municipality does it, the provincial government does it, or the federal

government does it. That is the reality.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for St. John's

East.

MR. MURPHY: Mr. Speaker, it is obvious this

government is not using its imagination and using a little bit of creativity on

the part of municipalities. The Province is looking at some sort of new funding

arrangement with municipalities so they can help them meet their future

financial obligations. Government could release Crown lands within town

boundaries, barring the environmental concerns, and let them realize their full

potential.

Question: Will government consider the release of any

Crown lands within city boundaries that could allow towns and cities to generate

their own potential revenue and help government solve its own problem in having

to fund municipalities?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Municipal

Affairs.

SOME HON. MEMBERS: Hear, hear!

MR. O'BRIEN: Mr. Speaker, as the Premier just said

in referencing our fiscal update that was given by the Minister of Finance

today: nothing sinks in, I guarantee you, and I do not think it ever will. We

have been hearing it now over a year and a half and it is not going to sink in.

It has not sunk in and it is not going to.

In the meantime, we have had some meaningful and I

mean meaningful meetings with municipalities in Newfoundland and Labrador over

the last number of months and we are moving forward. One of the things we will

consider is Crown lands and whatever it may be to make a more

MR. SPEAKER: Order, please!

The time for Question Period has expired.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Government House Leader.

MR. KING: I am standing on a point of order, Mr.

Speaker.

MR. SPEAKER: A point of order.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MR. KING: Mr. Speaker, there is a lot of heckling

that goes on back and forth in this House, and we all generally accept it. From

time to time, barbs occur, and people get excited.

I very clearly heard, though, Mr. Speaker, the Member

for St. John's North shout at the member opposite to, quote: sit down and shut

up. Mr. Speaker, I would ask you to consider that is very unparliamentary and

out of order for this House.

MR. SPEAKER: The hon. the Member for St. John's

North.

MR. KIRBY: I withdraw the comment, Mr. Speaker.

MR. SPEAKER: Presenting Reports by Standing and

Select Committees.

Tabling of Documents.

Tabling of Documents

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

In accordance with

section 19

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

I would ask the members from the gallery: as they

leave the gallery, could they do so quietly, please?

In accordance with

section 19(5)(

a) of the House of

Assembly Accountability, Integrity and Administration Act, I hereby table

minutes of the House of Assembly Management Commission meeting held on September

18, 2012.

Notices of motion.

Notices of Motion

MR. SPEAKER: The hon. the Government House Leader.

MR. KING: Mr. Speaker, I give notice under

Standing Order 11 that I shall move that this House not adjourn at 5:30 p.m. on

Monday, December 17, 2012; and I further give notice that under Standing Order

11, I shall move that this House not adjourn at 10:00 p.m. on Monday, December

17, 2012.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The hon. the Minister of Finance and President of

Treasury Board.

MR. MARSHALL: Mr. Speaker, I give notice I will

ask leave to introduce a bill entitled,

An Act To Amend The Services Charges

Act, Bill 58.

MR. SPEAKER: The hon. the Minister of Service

Newfoundland and Labrador.

MR. MCGRATH: Mr. Speaker, I give notice that I

will ask leave to introduce a bill entitled,

An Act To Amend The Highway Traffic

Act, No. 2, Bill 59.

MR. SPEAKER: The hon. the Minister of Natural

Resources.

MR. KENNEDY: Thank you, Mr. Speaker.

I give notice that I will ask leave to introduce a

bill entitled,

An Act Respecting The Use And Expropriation Of Land For The

Purpose Of the Muskrat Falls Project, Bill 60.

Mr. Speaker, I give notice that I will ask leave to

introduce a bill entitled,

An Act To Amend The Electrical Power Control Act,

1994, The Energy Corporation Act, And The Hydro Corporation Act, 2007, Bill 61.

MR. SPEAKER: Answers to Questions for which Notice

has been Given.

Petitions.

Petitions

MR. SPEAKER: The hon. the Member for Bay of

Islands.

MR. JOYCE: Thank you, Mr. Speaker.

I stand today, Mr. Speaker, on the family caregivers'

petition.

To the hon. House of Assembly for the Province of

Newfoundland and Labrador in Parliament assembled, this petition of the

undersigned residents humbly sheweth:

WHEREAS home care allows the elderly and people with

disabilities to remain within the comfort and security of their own homes; home

care also allows the people to be able to be discharged from hospital earlier;

and

WHEREAS many families find it difficult to recruit and

retain home care workers for their loved ones; and

WHEREAS the PC Blue Book, 2011 as well as the 2012

Speech from the Throne committed that government would develop a new model of

home care and give people the option of receiving that care from family members;

and

WHEREAS government has given no time commitment for

when government plans to implement paying family caregivers;

WHEREUPON the undersigned, your petitioners humbly

pray and call upon the House of Assembly to urge the government of Newfoundland

and Labrador to implement a new home care model to cover family caregivers in

the 2012-2013 Budget.

As in duty bound, your petitioners will ever pray.

Mr. Speaker, I rise again and I am after presenting

many petitions on this family home care. I know the Minister of Health I think

it was in April or May, Mr. Speaker said there is a new one coming very, very,

very, very soon, and we are still waiting for that very, very, very soon. As we

are waiting for that very, very, very soon from the minister, there are still

people out there who cannot get care for their loved ones.

I know a lot of times in this House we barb back and

forth, but this is such a serious issue, Mr. Speaker. This was committed in

2011. We hear in this House of Assembly and we hear in the media just about

every day about how we need family caregivers to take care of the loved ones in

their home, and they feel it is the best care. On many occasions people cannot

find caregivers to take care of their loved ones, and the only ones left are the

family, who must go through financial hardship, quit their job, and move back

home to take care of their loved ones.

Mr. Speaker, this was a commitment that was made by

the Premier of the Province in 2011.

AN HON. MEMBER: (Inaudible).

MR. JOYCE: I hear the Minister of Health saying it

is going to be honoured; Minister, you stood up six months ago and said it was

very, very, very soon. You stood up a month ago and said within weeks, and we

are still waiting. We are still waiting.

Mr. Speaker, I am sorry to say to the minister I

have all due respect for the minister; when it is done, what was committed in

2011, this Member for the Bay of Islands will be the first one to stand up and

say: government, you fulfilled your commitment; you did a good service to the

people of Newfoundland and Labrador. Until that is done, Mr. Speaker, until that

commitment is made and lived up to for family caregivers that was committed to

in 2011 I will be presenting petitions and I will be fighting on their behalf.

Thank you.

MR. SPEAKER: Order, please!

Your time is expired.

The hon. the Member for St. John's Centre.

MS ROGERS: Thank you, Mr. Speaker.

To the hon. House of Assembly of the Province of

Newfoundland and Labrador in Parliament assembled, the petition of the

undersigned residents humbly sheweth:

WHEREAS the Premier of Newfoundland and Labrador,

Kathy Dunderdale, made a promise during the 2011 general election campaign that

home care clients will have the option of receiving that care from family

members

We, the undersigned, respectfully petition the House

of Assembly to urge the Government of Newfoundland and Labrador to honour their

election promise by the Premier to allow family members to provide home care to

their own.

As in duty bound, your petitioners will ever pray.

Mr. Speaker, I am happy to present this petition that

was started by the Stead family in Little Catalina and they had a hard time

getting anybody else to present this petition in this House on their behalf and

so I am happy to be able to do it for them.

At this point, Mr. Speaker, they have 892 signatures

that they have collected on their own in their region of Bonavista. There are

people from Little Catalina, Clarenville, Snook's Harbour, White Rock, Milton,

Shoal Harbour, Hickman's Harbour, Lethbridge, Milton, it goes on it just goes

on and on, people all over that community: Southern Bay, Charleston.

Mr. Speaker, these people are really concerned about

the current state of home care, and particularly care for families with children

who have physical disabilities and who need a lot of assistance, who need help.

For two reasons, Mr. Speaker, the whole issue of paid family caregivers; we know

that, for instance, in the case of the Steads' daughter, she is severely

developmentally delayed, has severe physical disabilities, and is not able to

speak.

Her mother, Louise, has been a home care worker for

fifteen years. What she has to do is bundle up her own daughter, take her to a

respite care worker, and then go off and take care of someone herself. We know

how difficult this is for this particular family. The Steads, as a matter of

fact, are not the only family in this kind of situation; there are families all

over Newfoundland and Labrador who are facing the same problems.

Aside from having paid family caregivers, we must not

leave them on their own. Family caregivers need to be part of a comprehensive

home care program, a public home care program that takes care of our most

vulnerable.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. DAVIS: A point of order.

MR. SPEAKER: The hon. the Minister of

Transportation and Works, rising on a point of order.

MR. DAVIS: Thank you, Mr. Speaker.

I would like to point out that during the presentation

of this petition by the Member for St. John's East

AN HON. MEMBER: Centre.

MR. DAVIS: St. John's Centre, my apologies, Mr.

Speaker. She addressed a member of this House by their proper name. Mr. Speaker,

we know it is not appropriate in the House of Assembly to address members by

their proper name. The member opposite did during the delivery of her petition.

I would ask that she correct that, Mr. Speaker.

MR. SPEAKER: The hon. the Member for St. John's

Centre.

MS ROGERS: Thank you, Mr. Speaker.

I cleared the petition exactly as it is with the

proper channels and it was approved. I could withdraw the name.

MR. SPEAKER: All members would recognize that in

referencing members who sit in this House, they are to be recognized by their

title or their district. We do not use individual names in referring to any

member who sits in this House, and that would include any presentations and

submissions from documentation, including petitions. I would remind all hon.

members that it is not appropriate to refer to individuals by their names.

The hon. the Member for St. John's North.

MR. KIRBY: Thanks, Mr. Speaker.

To the hon. House of Assembly of the Province of

Newfoundland and Labrador in Parliament assembled, the petition of the

undersigned residents of Newfoundland and Labrador humbly sheweth:

WHEREAS strikes and lockouts are rare, and on average

97 per cent of collective agreements are negotiated without work disruptions;

and

WHEREAS anti-temporary replacement workers laws have

existed in Quebec since 1978; in British Columbia since 1993; and successive

governments in those provinces have never repealed those laws; and

WHEREAS anti-temporary replacement workers legislation

has reduced the length and divisiveness of labour disputes; and

WHEREAS the use of temporary replacement workers

during a strike or lockout is damaging to the social fabric of a community, the

local economy, and the well-being of residents, as evident by the recent use of

temporary replacement workers by Ocean Choice International and Vale in Voisey's

Bay;

We, the undersigned, petition the House of Assembly to

urge government to enact legislation banning the use of temporary replacement

workers during a strike or lockout.

As in duty bound, your petitioners will ever pray.

Mr. Speaker, I have presented this petition a number

of times in the spring sitting and received quite a number of additional

submissions. Some of them are written on the front and back, and are well-worn,

from all around the Province.

I know we did have a discussion when legislation was

being considered and in fact was passed here in, I believe, June of this year.

It was unfortunate at the time that both the governing party and the Official

Opposition opted not to support our motion to enact this anti-replacement worker

legislation. The fact that we have these additional petitions shows there is

still an appetite out there in Newfoundland and Labrador amongst workers to have

such a law.

I will submit this for I do not know who has the job

these days over there. Whoever is the Minister Responsible for the Labour

Relations Agency should give this some consideration and hear the pleas of these

petitioners.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Before I call Orders of the Day,

there was a point of order raised in the House yesterday by the Member for St.

John's North. I indicated I would review Hansard to see if there had been any

comment made that was unparliamentary. I conducted that review and the records

do not reflect any such comment.

Orders of the Day.

Orders of the Day

MR. SPEAKER: The hon. the Government House Leader.

MR. KING: Thank you, Mr. Speaker.

I move, seconded by the Minister of Transportation and

Works, Motion 4 on the Order Paper, pursuant to Standing Order 11, that this

House not adjourn today 5:30 p.m. Thursday, December 13, 2012.

Further, Mr. Speaker, I move, seconded by the Minister

of Transportation and Works, Motion 5, pursuant to Standing Order 11 that the

House not adjourn at 10:00 p.m. today, Thursday, December 13, 2012.

MR. SPEAKER: It has been moved and seconded that

this House do not adjourn today, Thursday, at 5:30 p.m., nor at 10:00 this

evening.

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

Motion carried.

MR. SPEAKER: The hon. the Government House Leader.

MR. KING: Thank you, Mr. Speaker.

Mr. Speaker, Order 2, third reading of a bill,

An Act

To Regulate The Practice Of Pharmacy, Bill 50.

MR. SPEAKER: The hon. the Government House Leader.

MR. KING: Thank you, Mr. Speaker.

Mr. Speaker, I move, seconded by the Minister of

Health and Community Services that Bill 50,

An Act To Regulate The Practice Of

Pharmacy, be now read a third time.

MR. SPEAKER: It is moved and seconded that the

bill be now read a third time.

Is it the pleasure of the House to adopt the motion?

AN HON. MEMBER: (Inaudible).

MR. SPEAKER: I am sorry.

The Opposition House Leader, speaking to Bill 50 in

third reading.

MS JONES: Thank you, Mr. Speaker.

I am speaking to the bill, I guess, just because I

want to make sure that it is on the public record that there were concerns

expressed to us by community pharmacists in the Province with regard to a couple

of sections in the bill.

It is my understanding that the Minister of Health and

Community Services has undertaken with her officials and with the people who

brought the complaint forward to clarify that particular information.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MS JONES: Mr. Speaker, some of the concerns that

were brought forward had to do with the make up of the actual board that would

be put in place. It is my understanding that the board will multifunctional. It

will not just have one single role. As a result of that, it is necessary for the

board to be made up in such a way.

It is also my understanding, Mr. Speaker, that

concerns that were raised around privacy fall in line with other legislation and

other regulations and acts that are in place within the health care system for

the protection of privacy for individuals.

Mr. Speaker, I guess for our

part in it we would just

want to ask the government to be cognizant of the concerns that are being

raised, to work with these individuals as the act comes into force to ensure

that their issues and their concerns are addressed adequately.

Other than that, Mr. Speaker we have no objection with

the bill and will be supporting it in third reading.

MR. SPEAKER: The Member for St. John's Centre.

MS ROGERS: Thank you very much, Mr. Speaker.

It was also brought to my attention by some concerned

pharmacy owners about the whole issue of review of files, when there is a review

of practices of some pharmacists by the appropriate board within the act, but

that the review of files may have to do with patients, and that patients, in

fact, may not know that their files are being reviewed.

I feel that is a very valid concern, considering as

well the history of some of the reviews we have had over different mistakes

within our health care system. Patients need to be notified if, in fact, any of

their files are being reviewed, or there must be some kind of system put in

place to protect the privacy of patients, and also, a very, very clear explicit

process and procedure that would be undertaken in the review of any files that

pertain to people's names, their health issues, and their pharmaceutical issues.

MR. SPEAKER: The hon. the Minister of Health and

Community Services.

MS SULLIVAN: Thank you, Mr. Speaker.

Mr. Speaker, just to respond to that particular

question or issue that was raised. I want to point out that this is a public

protection statute we are referencing here, and it is simply meant to detect any

practice concerns that might and detect that at a very early stage.

The legislation will be very carefully crafted, but it

will reflect PHIA. PHIA, which is the Personal Health Information Act, clearly

has regulations in place that permit the accessing of these files, but

confidentiality of those who are accessing the files is required, Mr. Speaker.

MR. SPEAKER: I remind the Member for St. John's

Centre, we are in third reading. This is unlike committee, once you have spoken

once in third reading, your time will be limited.

Is it the pleasure of the House to adopt the motion

that Bill 50 be read a third time?

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

Motion carried.

CLERK: A bill,

An Act To Regulate The Practice Of

Pharmacy. (Bill 50)

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 Regulate The Practice Of

Pharmacy", read a third time, ordered passed and its title be as on the Order

Paper. (Bill 50)

MR. SPEAKER: The hon. the Government House Leader.

MR. KING: Thank you, Mr. Speaker.

Mr. Speaker, I move, seconded by the hon. the Premier,

for leave to introduce a bill entitled,

An Act To Amend

An Act To Amend The

Enduring Powers Of Attorney Act, Bill 56, and I further move that the said bill

be now read a first time.

MR. SPEAKER: It is moved and seconded that the

hon. the Minister of Justice will have leave to introduce a bill,

An Act To

Amend

An Act To Amend The Enduring Powers Of Attorney Act, Bill 56, and that the

said bill be now read a first time.

Is it the pleasure of the House to introduce Bill 56

and that the said bill be now read a first time?

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

Motion carried.

Motion, the hon. the Minister of Justice to introduce

a bill, "An Act To Amend

An Act To Amend The Enduring Powers Of Attorney Act",

carried. (Bill 56)

CLERK: A bill,

An Act To Amend

An Act To Amend The

Enduring Powers Of Attorney Act. (Bill 56)

MR. SPEAKER: This bill is now read a first time.

When shall the bill be read a second time?

MR. KING: Tomorrow.

MR. SPEAKER: Tomorrow.

On motion, Bill 56 read a first time, ordered read a

second time on tomorrow.

MR. SPEAKER: The hon. the Government House Leader.

MR. KING: Thank you, Mr. Speaker.

Mr. Speaker, I move, seconded by the hon. the Premier,

for leave to introduce a bill entitled,

An Act To Amend The Workplace Health,

Safety And Compensation Act, Bill 57, and I further move that the said bill be

now read the first time.

MR. SPEAKER: It is moved and seconded that the

hon. Minister of Justice shall have leave to introduce a bill,

An Act To Amend

The Workplace Health, Safety And Compensation Act, Bill 57, and that the said

bill be now read a first time.

Is it the pleasure of the House that the minister

shall have leave to introduce Bill 57, and that the said bill be now read a

first time?

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

Motion carried.

Motion, the hon. the Minister of Justice to introduce

a bill, "An Act To Amend The Workplace Health, Safety And Compensation Act",

carried. (Bill 57)

CLERK: A bill,

An Act To Amend The Workplace

Health, Safety And Compensation Act. (Bill 57)

MR. SPEAKER: This bill has now been read a first

time.

When shall the bill be read a second time?

MR. KING: Tomorrow.

MR. SPEAKER: Tomorrow.

On motion, Bill 57 read a first time, ordered read a

second time on tomorrow.

MR. SPEAKER: The hon. the Government House Leader.

MR. KING: Thank you, Mr. Speaker.

Mr. Speaker, I call from the Order Paper, Order 3. I

move, seconded by the hon. the Premier, that the House resolve itself into a

Committee of the Whole to consider Bill 54,

An Act To Amend The City Of St.

John's Municipal Taxation Act.

MR. SPEAKER: The motion is that the House resolve

itself into Committee of the Whole and that I do now leave the Chair.

All those in favour of the motion.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: Against.

Motion carried.

On motion, that the House resolve itself into a

Committee of the Whole, Mr. Speaker left the Chair.

Committee of the Whole

CHAIR (Verge): Order, please!

The Committee of the Whole will now consider Bill 54.

A bill, "An Act To Amend The City Of St. John's

Municipal Taxation Act". (Bill 54)

CLERK: Clause 1.

CHAIR: Shall clause 1 carry?

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

CHAIR: All those against, nay'.

Carried.

On motion, clause 1 carried.

CLERK: Clause 2

CHAIR: Shall clause 2 carry?

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

CHAIR: All those against, nay'.

Carried.

On motion, clause 2 carried.

CLERK:

Be it enacted by the Lieutenant-Governor

and House of Assembly in Legislative Session convened, as follows.

CHAIR: Shall the enacting clause carry?

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

CHAIR: All those against, nay'.

Carried.

On motion, enacting clause carried.

CLERK: A bill,

An Act To Amend The City Of St.

John's Municipal Taxation Act. (Bill 54)

CHAIR: Shall the title carry?

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

CHAIR: All those against, nay'.

Carried.

On motion, title carried.

CHAIR: Shall I report the bill without amendment?

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

CHAIR: All those against, nay'.

Carried.

Motion, that the Committee report having passed the

bill without amendment, carried.

CHAIR: The hon. the Government House Leader.

MR. KING: Mr. Chair, I move that the Committee

rise and report on Bill 54.

CHAIR: The motion is that the Committee rise and

report Bill 54.

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 (Wiseman): The hon. the Member for the

District of Lewisporte and Deputy Speaker.

MR. VERGE: Mr. Speaker, the Committee of the Whole

have considered the matters to them referred and have directed me to report Bill

54 carried without amendment.

MR. SPEAKER: The Chair of Committee of the Whole

reports that the Committee have considered the matters to them referred and have

directed him to report Bill 54 without amendment.

When shall the report be received?

MR. KING: Tomorrow.

MR. SPEAKER: Tomorrow.

On motion, report received and adopted. Bill ordered

read a third time on tomorrow.

MR. SPEAKER: The hon. the Government House Leader.

MR. KING: Thank you, Mr. Speaker.

Mr. Speaker, I call from the Order Paper, Order 8,

second reading of a bill,

An Act To Amend The Churchill Falls (Labrador)

Corporation Limited (Lease) Act, 1961, and The Electrical Power Control Act,

1994. (Bill 53)

MR. SPEAKER: The hon. the Opposition House Leader.

MS JONES: Thank you, Mr. Speaker.

I am rising to speak to Bill 53. I spoke to this bill,

actually, on Tuesday, and I am just going to conclude my comments today. I had

some time left on the clock, and I am happy to do so, Mr. Speaker.

This particular bill will certainly facilitate some

necessary infrastructure in terms of power agreements for industry in Labrador.

Mr. Speaker, this is something that we all know; those of us who are familiar

with what is happening in Labrador will all know how important this is.

I am very proud, Mr. Speaker, to say that we have

reached a point in our history in Labrador where we start realizing that the

future for the whole Province rests in what happens in the Big Land and how we

facilitate development infrastructure over the next few years.

Mr. Speaker, Labrador right now is seeing an abundance

of investment. These investors, Mr. Speaker, are coming from all around the

world. There are people who are coming with very deep pockets, with huge amounts

of money that they want to invest not in the millions, but in the billions

because they see extreme potential for opportunity for the long term in

Labrador.

Mr. Speaker, I have had the opportunity to meet some

of these financiers and their representatives. When they come and they are ready

to invest in the mining industry in particular in Labrador they are not

doing so because it is going to be an opportunity that will turn over revenues

or profits for them for a couple of years. They are doing so because it is going

to be a contributor for many, many years to come. They are looking at longevity,

they are looking stability, and they are looking at good return for the dollars

that they are investing.

Mr. Speaker, these investors, some of them are

Canadians, a lot of them are from China, in India in particular, but of course,

there are investors there from all over the world.

Mr. Speaker, what Bill 53 is actually doing is setting

out the frame for which prices for industrial power will be negotiated with

these companies. It is allowing the government to establish power purchase

agreements. It is allowing the government, through the consent of the Public

Utilities Board, to bring these agreements into play. It is also allowing the

Public Utilities Board to regulate the transmission of power for all of these

industries in Labrador.

It is important to explain that because what will need

to happen in order to facilitate this and in order for these companies to plug

in to the line, they need to have a line to plug into. Transmission lines will

have to be built. There are people out there in the Province who will say: Why

should the government and why should we be paying to build transmission lines

and bring power to the mining companies? That is not what is happening here, Mr.

Speaker. What is happening is that government is facilitating a process. That

process, Mr. Speaker, will allow for the recovery of cost on the infrastructure.

These companies at the end of the day will not only

get a competitive rate, be offered a competitive rate for their power, but the

people of the Province will get a return on any investment they have. Mr.

Speaker, the transmission and the generation will all be built into the price of

power. That is what has to be looked at. It will be built into the price of

power that will be provided to the companies.

People out there who think this is a free ride it is

not a free ride. Mr. Speaker, there is an opportunity here for all of us in the

Province, an opportunity to build the revenues of the Province for the long

term. There is an opportunity here to secure industry for the Province for a

long time, far beyond creating jobs for four or five years, but creating jobs

for the next fifty and 100 years. There is an opportunity to generate more

revenue, taxation, and corporate return, Mr. Speaker returns for the Province.

That is what this is all about.

Mr. Speaker, we support the fundamental principles of the bill that will allow

for this happen. We also see an opportunity for the government here to take it a

little bit further. We would like for them to look at certain amendments within

the bill. We will bring forward those amendments as we get into the Committee

stages. We have already provided the government with advance copies of those

amendments for their review. We hope they will consider incorporating them into

the legislation. We hope they will incorporate them into the legislation.

One of the amendments, Mr. Speaker, basically says

that there would be an incentive for economic development. We will certainly

bring that up in Committee, as we propose it, and we will seek the input of the

government in terms of whether they are prepared to look at that direction.

Basically all that means, Mr. Speaker, is that government, right now, is doing

this so they can promote the development of industrial activity in Labrador.

What we are saying is that we want you to promote the

development of industrial and economic activity, and we want you to allow for an

incentive a negotiated incentive. Maybe government feels it does not need to be

legislated. We think it does. Maybe they think it is something they can do

without having anything within the act, but we think it is important, and I will

tell you why.

A lot of these companies that are investing are

looking at where we can get the best return on our investment. Is there

something more that we can do? If they are going to come in and they are going

to extract 25 million metric tons of ore in Labrador, they might not want to

rail all of that out and take it out, they might want to do pelletization or

another form of secondary production. I think the opportunity to provide an

incentive on power rates for companies that want to do secondary production is

important. I think it gives them something to think about and consider, but at

the end of the day it gives us a far greater return on our investment.

I am going to use the Iron Ore Company of Canada as an

example. IOC's power contract will expire by 2015. That is when you are going to

see the new agreements under this legislation coming into force in the Province.

Mr. Speaker, IOC is one of the few mining operations currently in Labrador that

have invested in secondary processing. They have a pelletization operation I

am not saying that 100 per cent of the ore they extract is pelletized, because I

know that it is not. I know that their pelletization is based on market demands.

Mr. Speaker, all I am saying is that when we have companies that want to make

that further investment, create those extra jobs, provide that extra revenue to

the Province, let us see if there is a better deal that we can work with them to

stimulate that economic development piece.

Let us talk about another project, a project that

government has out to tender now on Julienne Lake. Julienne Lake, Mr. Speaker,

will be the second largest iron ore development in Labrador, next to IOC. It is

even bigger than the Alderon project, Mr. Speaker, in terms of what the

potential capacity is. We know that government is already out calling proposals

for it right now. I think the deadline may have passed; the minister can clarify

that for me. Mr. Speaker, we know for sure there is interest, I would think, in

that project.

AN HON. MEMBER: (Inaudible) you know.

MS JONES: I know, Mr. Speaker, there is interest

in that project, I say to the Premier. Mr. Speaker, I know there is interest in

the project. I know there are submissions in or being worked on. I also know,

Mr. Speaker, there is a potential there for government to secure secondary

processing around Julienne Lake, because they will be at the negotiating table

on Julienne Lake.

They own, right now, the reserves. They are asking for

companies to submit a proposal to develop it. When they sit at the table to

negotiate those proposals, government now has the option to say to whoever that

company is, company X, company O: listen, we want you to do secondary production

of ore. We can give you an incentive on your power rate to be able to do that in

order to create extra economic development and benefits in Labrador. Government

has the option to do that specifically in the Julienne Lake case, Mr. Speaker.

There are other mining operations, as we know, that

are not into secondary processing that are ongoing in Labrador right now. I

talked about one yesterday, the Labrador Iron Mines. The minister kept telling

me that I had it wrong, they were across the border.

Mr. Speaker, I had to go back in Hansard and check to

make sure I was right, and I was right in what I said. I said Labrador Iron

Mines, and it is in the Hansard I say to the minister. You thought I was talking

about Bloom Lake, but I was not talking about Bloom Lake at the time.

AN HON. MEMBER: No, you were talking about

Sept-les (inaudible).

MS JONES: No, I was not. I was talking about the

MR. SPEAKER: Order, please!

MR. JOYCE: I was talking about Labrador Iron

Mines, Mr. Speaker.

MR. SPEAKER: Order, please!

I remind members not to engage

MS JONES: The minister must have misinterpreted

what I said.

MR. SPEAKER: in conversation across the floor.

MS JONES: The minister must have misinterpreted

what I said because he continued to correct me. Then I thought maybe I had said

something wrong, so I could not sleep last night, Mr. Speaker. I could not

sleep. I rushed in this morning to get the Hansard so I could have a look and

make sure, Mr. Speaker. Sure enough, I was right.

Mr. Speaker, the point I am trying to make is that

right now in Labrador there are so many opportunities that are there. I just

hope the government is recognizing that. I hope, Mr. Speaker, they are not going

to stop at trying to put in place the right power purchase agreements but rather

they are going to continue to look at the other infrastructure needs, like

railway that I talked about yesterday, and how they can meet and deliver on that

for the people of the Province.

One of the things I did observe in this bill, Mr.

Speaker, is that Muskrat Falls power would be exempt from Bill 53. Meaning that

although they are going to reach agreements with the mining companies on the

power purchase of the TwinCo block, the 225 megawatts, however, any agreements

that they have on Muskrat Falls power will not be handled in the same way.

In other words, Mr. Speaker, the Public Utilities

Board will not be an overseer, an arbitrator, or a rate setter when it comes to

Muskrat Falls power going to the industrial companies. That will be negotiated

solely between government, or Nalcor or their subsidiaries, and the company in

question. We have some concerns with that, Mr. Speaker. Our concern is we feel

that bringing the PUB in, in the TwinCo block is the right way to do it, why

would government exempt them in all the other power requirements like Muskrat

Falls power?

Maybe the minister can answer that when he stands up.

I think the Minister of Labrador Affairs is going to rise. Maybe he can explain

to us why we are going to regulate the TwinCo block of power for industrial

customers and the mining industry but we are not going to apply the same

regulation to those customers who might be getting Muskrat Falls power.

Mr. Speaker, I hope they are not exempting it because

they have no intentions of giving Muskrat power to customers in Labrador. I

understand they have all intentions of allowing customers in Labrador to have

Muskrat Falls power, but it looks like, Mr. Speaker, what government is looking

for here is a mandate that they themselves can set the rate on that power and it

will not go through the Public Utilities Board like the other blocks of power.

Anyway, Mr. Speaker, I just want to talk a little bit

in general about what is happening in Labrador right now with regard to the

mining industry. Some people might think because the price of iron ore is down

that we are not going to see a lot of these things materialize. I am very much

the optimist when it comes to what is happening in Labrador and the future of

the industries there. I think we are into a hiatus period, but I think it will

also be short lived.

I really believe, Mr. Speaker, that over the next five

to six years you are going to see tremendous activity happening within the

mining industry. I think Mr. Locke's predictions will be achieved far earlier

than the period he predicted. I think that we will be into production of up to

80 million metric tons of iron ore long before 2020. I think that we could be

there as early as the next five to six years, depending on what happens to

projects like Julienne Lake, Mr. Speaker, and whether the investors are prepared

to move forward quickly to get that operation in place and government can reach

the right agreement.

I certainly have a tremendous degree of optimism

around what is going to happen there, but I hope, Mr. Speaker, that government

is gauging this activity, because right now in Labrador we are into a real

crunch when it comes to housing in particular, when it comes to the

affordability of housing for people.

I talk to people on a regular basis who have the

opportunity to go and work in Labrador West and would love to go and work there,

but because they cannot take their families or they cannot find affordable

housing it has become very difficult for them to accept those positions.

We are not going to be a much different position in

Happy Valley-Goose Bay over the next two or three years. I actually heard

Sterling Peyton on the radio this morning, from the Chamber of Commerce up

there, talking about the amount of activity that is being generated in the local

economy in Happy Valley-Goose Bay right now, and how people coming into Goose

Bay need to start booking their hotel rooms well in advance if they are going to

be able to secure accommodations. That has been the case in Labrador City for

the last number of years.

Those are very good indicators of where we are going

in Labrador. I do not know if people around the Province actually realize the

tremendous amount of activity that occurs in Labrador. I would invite all the

members of the House of Assembly the NDP members, the government members; all

of our caucus have already been there to go to Labrador, go to the Coast of

Labrador, go to Lake Melville, go to Labrador West, and see what is happening in

your Province just see what is happening in your Province.

You drive by Long Harbour, so you know what is

happening there. You have been to Marystown when they have been in the peak of

activity, so you know what is happening there. You take that and you double it,

you triple it, and you quadruple it in a smaller area, and you see the kind of

traffic that is occurring.

Mr. Speaker, it is amazing amazing what is

happening, and it is all good. It is good for the Province and it is good for

the people, but when we have all of this development we have other challenges

that we have to address. Those challenges are around looking after people who

cannot always afford to look after themselves in societies of growth like this,

ensuring there is affordable and proper housing, and ensuring the infrastructure

is there to meet the demands, meaning that there are good public services and

there are good transportation networks. All of these things are critical to

large-scale development projects.

Mr. Speaker, I have to say that the mining industry

has been good to Labrador. Not only have they contributed greatly to the people

of the Province, but they contribute to our communities and they give back. That

is worthy of noting.

Mr. Speaker, if we can treat them fairly, if we can

offer them competitive rates that are competitive with Quebec, if we can entice

them to do secondary economic development in our Province, in Labrador, creating

those jobs and creating those opportunities, then that is exactly what we have

to do. All of it at the end of the day will make for a better quality of life

for all Newfoundlanders and Labradorians. It will help us to give a hand to

those who need it in our society, but also to be able to create stronger

government services and programs for everybody at the end of the day.

Mr. Speaker, there are great things happening in

Labrador. I am always happy to rise in my place, talk about it, and support it.

Mr. Speaker, I am frankly quite impressed with the minister who brought forward

this bill. For a long time I have been standing on my feet in the House of

Assembly asking him what he is going to do in terms of meeting the power needs

for industry in Labrador and if, in fact, there would be any power for the

mining companies at all.

When the initial term sheet on Muskrat Falls was

signed, there was no talk about Labrador. In fact, we were not even mentioned

other than in the name of the Province: Newfoundland and Labrador. There was no

commitment to the people of Labrador no commitment on power, no commitment on

industrial rates, and no commitment on transmission capacity. None of these

things were included, Mr. Speaker. It was not even talked about. It has taken a

couple of years to get there, but finally we are getting there. The more and

more it seems, Mr. Speaker, they are able to put their feet on the ground in

Labrador, more and more they tend to understand about what is happening and the

need to address some of those issues.

I am happy today, Mr. Speaker, to see that

government's mindset has changed and that they are more focused towards what the

real opportunities are in Labrador and how they can play a role in seeing those

flourish into the future. One of those roles is in ensuring that there is a

block of power for industrial customers in Labrador, that there is going to be a

line for them to plug into, and that there is going to be a competitive rate

regime so that they can run their operations, mine their ore, produce any kind

of production that they want on a secondary level, and do it competitive with

everybody else in the country, Mr. Speaker, but more importantly with the people

on the other side of the border in Quebec.

I think that is important. I am sure, Mr. Speaker, I

talked to a number of the mining companies in the last number of days myself. I

think over the last little while, like the minister, I have talked to almost

every company that has an interest in Labrador from exploration to development.

I have met with them all at one point or another. It is always interesting to

see the energy and the drive that they have, and the encouragement and the

enthusiasm that they have for the potential developments that exist in Labrador.

Mr. Speaker, we will continue to work with them. We

will continue to work with government any time that there is an opportunity to

create more jobs and build on the revenues of the Province, and to ensure that

there is long-term economic growth that we are able to pay for the services that

we have the privilege to have in this Province for many years to come. I think

that is what it is really all about.

Mr. Speaker, on those notes, I will certainly say that

I will bring forward some amendments to the bill as we move into Committee,

whether that be today or on another parliamentary day. I am sure that the

minister will be very keen to respond to those amendments, Mr. Speaker. I am

sure he will be very interested in looking at if there is a need to strengthen

the bill, and if there is a need to strengthen it, how we can do that to achieve

the objectives that I am sure we all want to achieve and maximize the results

for the people of the Province.

Thank you, Mr. Speaker.

MR. SPEAKER: The hon. the Minister of Service

Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. MCGRATH: Thank you, Mr. Speaker.

It certainly is a pleasure to rise here in the House

today and speak on the industrial rate policy for Labrador and the mining in

Labrador. This is something that the people in Labrador have been waiting for a

long, long time.

I just want to say that two of the mines that are

affected by the old regulations that we were talking about and that many people

have mentioned in the last couple of days the Iron Ore Company of Canada and

Wabush Mines are both in my district, so I have a very close relationship with

the mines. Being in Labrador West for thirty-five years, I have seen the

benefits that those mining companies have brought to the district. I have often

been in arguments where they say it is a one-industry town, or a two-industry

town.

So, I am very pleased to say that the mining industry

is certainly the main industry in Labrador. As we are witnessing now with a lot

of the projects that are happening now in Labrador, we are realizing that mining

is certainly the forefront of the industry all throughout Labrador, whether it

be on the North Coast of Labrador, on the South Coast, in Central Labrador

which I am sure my colleague for Lake Melville will be talking about later and

certainly in Western Labrador. In Western Labrador, some of the projects we have

seen happen for the last fifty years, and I am sure we will continue to see

happening for the next fifty years.

Unlike the Member for Cartwright L'Anse au Clair who

spoke and said that she did not feel that there was any conversation or any

inclusion of Labrador in the conversations that have been happening, I have been

MS JONES: (Inaudible) initial term sheet.

MR. MCGRATH: Well you talk

MS JONES: (Inaudible) years ago in the initial

term sheet.

MR. MCGRATH: In the initial term sheet there have

been conversations and consultations. Sitting on the side of the government, Mr.

Speaker, I have been privy to those conversations and consultations. So, there

has been an awful lot of conversation and inclusion of Labrador, and all of

Labrador within the preparation of the term sheet. We will see, as we are seeing

here today, a lot more papers coming forward showing the inclusion of Labrador

within these rates.

Now, the whole thing that we have here now for the

whole purpose of this paper that we have coming forward, to me, what I see in

it, the word that comes out to me is stability. I think for many, many years,

even though there was an agreement between Churchill Falls and the mining

companies in Labrador West they had an agreement and it was an agreement that

went back to the TwinCo project that when Churchill Falls took over that

project, there was an agreement there that the mines would get a low rate. So,

it is no secret, or this is not a surprise to IOC and Wabush mines that this was

going to come to an end. They have known for a long, long time now that that

contract would be up, and I think they have prepared themselves.

Now, nobody likes to see a change when it is going to

cost you money, but I have to look at a company such as IOC, for example, who is

looking at expanding now. One of the main things with the conversations that I

have had with IOC is they want to be able to say: if we are going to do a

multi-billion-dollar expansion, where are we going to be with our rates

because they are going to need more electricity. I think that is one of the good

points with this here.

Alderon certainly is a great example of what is

happening with this policy coming forward. Alderon is looking they are ready

to move; Alderon is geared up, ready to get their mine into an operation stage,

but the one card that is holding them back, the one thing that they are waiting

for is they need a stable, concrete electrical rate. They need to know: this is

what it is going to cost us to put that mine into operation. That is the one

thing. I think putting this policy in place now gives them that last piece of

the puzzle so that they can take their mine now and put it into an operational

stage.

When you look at the Labrador rates now where they

are, the electrical rates now and compare them to the rest of the world, we

are by far the lowest in the country, for sure, and I would think throughout the

world. The rates that we have are certainly the envy of a lot of people. For the

companies that have been there for the last fifty years, they have certainly

enjoyed paying that very low rate, but I think what we are doing now with the

expansions that are coming is we are giving them there are going to billions

of dollars; again, I heard the Member for Cartwright L'Anse au Clair talking

about the billions of dollars of investments that are going to be coming in, and

not just in Labrador West, but all of Labrador. These people want the stability

of saying: we can now forecast where we are going. They want to be able to say:

we are forecasting, and this is how we build this into our rates now. This is

how we build it into the price per tonnage when we sell our product.

I have been talking to people and we are looking

just in Western Labrador alone: over $10 billion in investments in the next few

years will be realized just to prepare them to get into an operational stage.

That is an awful lot of money we are looking at being spent in an area.

I want to talk about some of the economic benefits

that come, and not just in the mining industry. If these expansions happen and

Julienne Lake is just now into an interest stage; within the next ten years, you

will see Julienne Lake being developed. The amount of jobs that will create in

the Julienne Lake project alone is unbelievable.

Then you have Tata steel and you have Vale Inco if

they go underground. You have Alderon, like I said, ready to go now, and Grand

River Iron Sands, which is in Lake Melville. I am sure the Member for Lake

Melville will elaborate on that. All of these projects are going to need power.

One of the blocks they were looking at is: okay, we are going to need the power;

where are we going to get the power from and what is it going to cost us to get

that power?

The rates we have proposed are very comparable and competitive with the rest of

the country. To me, that shows Labrador as a strong point of interest: here is

where we can go. I am sure when people are out exploring they are comparing

Labrador with other places they can do business. This policy now puts us into a

very competitive stage.

I have to mention our neighbours just across the

border in Quebec. The mines we are dealing with look at Quebec as another source

of power. We have to be competitive with the rates that are in Quebec. The rates

we have put forward are very competitive with Quebec. There are two mines, Tata

Steel and the Labrador Iron Mines; the operation Labrador Iron Mines has

presently is on the Newfoundland and Labrador side of the border.

I was there this past summer and I did a tour of

Labrador Iron Mines. They are looking at an expansion. Already, they are looking

at an expansion. If they do expand, their expansion in the Labrador Trough

brings them in on the Quebec side of the border. That is an option they would

have. They could get their power from Quebec also, their electrical power. So we

have to be competitive with Quebec.

I was doing some research on the amount of jobs that

would be created if some of these projects move forward. Here in my notes I was

talking about some of the positions. In Julienne Lake, for example, I mentioned

that is almost as big, once the project is up and running, as the IOC project.

You are talking thousands of jobs in that one. Alderon is talking probably 1,500

hundred jobs permanent, full-time positions. Tata Steel and Vale Inco will be

hiring more people if they go underground. Labrador Iron Mines are constantly

already recruiting for new positions.

These are all big things for the economy, not just for

Labrador, but for all of Newfoundland and Labrador. It will bring in an awful

lot to our economy. In tax dollars, we are talking about $343 million that would

come in tax dollars coming into the revenue for the Province.

The indirect benefits come outside the mines now. If

the mines come into production they need suppliers. With these supplies and

goods that they are going to need, they need people to service them in that

industry, in the secondary industry. You are going to need your hotels; you are

going to need your restaurants. You are going to see your roads built. You are

going to see the transmission lines being built to get the power to these mines.

All of those create extra jobs that we will see there.

We talked about consultations with the customers that

we already have. In the summer 2011 to the spring of 2012, I know customers that

I talked to, one of the main concerns they talked about was being competitive in

the rates. They were saying we need to see the rates that are going to come out.

Are we going to be competitive with the other jurisdictions? The one

jurisdiction we heard a lot about was Quebec. As I mentioned earlier, our rates

are very competitive with Quebec there.

I want to touch a little bit on the workforce that is

in a lot of these large projects. Again, I will go back to Wabush Mines. I will

go back to IOC, Labrador Iron Mines, Tata Steel. These are all unionized

employees who are in these mines.

I heard the Leader of the Third Party stand up on a

point of order two or three times the other day talking about she was upset

because someone said she used the word subsidized. She did not use the word

subsidized, she used the word protect. I was a little bit baffled because I

needed to find out, what is the difference in subsidizing and protecting in the

context of how the word was used? It was monetary protection we were talking

about. If you think of what a subsidy is, it is normally a monetary gift. There

is not a big difference.

What really bothered me the most, I guess, and what I

was upset with was when I heard the Leader of the Third Party stand up and

could not understand it. I had calls from my constituents

MS MICHAEL: A point of order, Mr. Speaker.

MR. SPEAKER (Verge): Order, please!

The hon. the Leader of the Third Party, on a point of

order.

MS MICHAEL: Thank you very much, Mr. Speaker.

I would like to point out that the Member for Labrador

West is once again interpreting words. I did not talk about taking protection

away from the workers at the mines in Labrador. I would once again ask that if I

am going to be quoted, what I say exactly be quoted, not

interpretations of what

I said.

Thank you very much, Mr. Speaker.

MR. SPEAKER: Order, please!

There is no point of order.

The hon. the Minister of Service Newfoundland and

Labrador to continue.

MR. MCGRATH: Thank you, Mr. Speaker.

Again, the complaint was that government was

protecting the industries by giving them special rates, and the protection was a

financial protection. That is what I was hearing, and I do not see where the

doing what governments are supposed to do.

What we are doing here today is we are not protecting

just individuals, we are protecting the economy of our Province, and that is

what we are supposed to do. All of these unionized workers I had calls, as I

was saying before I sat down for the point of order, from some of my

constituents asking what the issue was and asking me to raise that issue in the

House of Assembly. So, I am speaking on behalf of my constituents, but I think

it is very important we realize that the whole issue with the rates we are

putting here now, this policy we are bringing forward, is to protect the people.

We are protecting the economy of Newfoundland and Labrador.

When you look, .06 cents is what the power is being

supplied for now. For thirty-five years I have enjoyed that rate. I think it is

very important, and I know the Minister of Natural Resources clarified it and

made it very clear, because it is a question that the residents in Labrador

West, and all of Labrador, are worried about. Is this going to affect the

residential customers in Labrador? This is not. This is an industrial rate

policy. It is not a residential rate policy. The residents in Labrador were very

concerned.

I look twenty-seven kilometres away from Labrador West

and you have Fermont, Quebec. Quebec Cartier Mining is the main and only

stakeholder and industry in Fermont, Quebec. When you look at what they are

paying now, in Labrador West it is between $6 and $11, in Fermont now, at Quebec

Cartier Mining, it is $47.

We are giving away what belongs to the people of

Newfoundland and Labrador. We are actually giving it away now. What we are going

to do is we are going to stabilize it. All of the money that we are going to

stabilise it with, where is it going? It is going back to the people of

Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. MCGRATH: Mr. Speaker, I hear often, every day,

there are asks. You heard the Minister of Finance talk about it today. You heard

our Premier talk about it today. Every day people are standing up in the House

of Assembly: We need more, we need more, and we need more. We need our roads, we

need our schools, and we need our hospitals.

Every day we hear petitions on the hospitals, but

where are we getting the money to provide all of those infrastructural needs for

the Province of Newfoundland and Labrador? Stabilizing these rates is going to

put money back into the coffers of the Provincial Government of Newfoundland and

Labrador, and that way it will be able to provide what we need to put in our

communities.

The other thing that I like about these rates is that,

quite often, you hear nothing goes over the so-called overpass. This is

something that is good for all the rural areas because we are stabilizing what

we are doing here is we are giving a very fair and equal opportunity to bring

new businesses and large industry into the Province of Newfoundland and

Labrador.

That is something that when the industries were

looking at it, they would get to a stumbling point where they would say: Well,

we are ready to go. We have gone through the exploration. We have no where to go

now because we know we need the power, but we are not sure what it is going to

cost us. So, they could not do their forecasting as to where they were going to

go. They could not forecast how much they had to charge. Anyone who is in

business, when they are in business, what the profit line is going to be is the

main thing people worry about.

I was in business for many, many years and I wanted to

get a return on my investment. These large corporations are no different; they

want to get a return on their investments. It is very important to them that

they be able to say: What is it going to cost me to get the power to produce my

product? Once they have that cost, with these new industrial rates, they can now

forecast exactly what their cost is going to be and they can build that into

their sale price.

Whereas before, they were always wondering: Well, if the power

is coming through, where is it going to go?

Again, I go back to the Iron Ore Company of Canada

that is doing a huge expansion right now. Right now, they are at 18 million tons

per year. They are going to 23 million tons per year with phase one of the

expansion that they have already done. They are hoping when their expansion of

phase two is finished that they will actually go to 50 million tons a year. So

that is more than double what they are already producing.

The Iron Ore Company of Canada is the largest open

mine pit in North America. So, that is actually going to double in their

production. They could not forecast and in a lot of the deliberations and

conversations I have had with the Iron Ore Company of Canada, it was always

wondering: Well, we cannot forecast what it is going to cost us. After 2015, we

do not know what it is going to cost us, because we do not know what our

electrical rates are going to be.

I have to say, living in Labrador West, I am not

hearing a lot of negativity with these rates. People are comfortable, they are

saying do they like an increase? No, nobody likes to see things cost them more

money, but they have realized that this is reality, this is the way it has to

be, and in the long run and that is what these companies are looking at. They

are not investing billions of dollars because they are in it for a short term.

It is long-term investments they are making, and they want to see long-term

returns on what they are going to get.

So, Mr. Speaker, I realize I am running out of time,

and I will be supporting this bill.

Thank you very much.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The Leader of the Official Opposition.

MR. BALL: Thank you, Mr. Speaker.

It is my privilege to actually stand in this House

today to speak to Bill 53, the Act to Amend the Churchill Falls (Labrador)

Corporation Limited (Lease) Act, 1961, and the Electrical Power Control Act,

So, the importance, Mr. Speaker, today to actually

stand and speak to this is because it speaks about a Labrador power supply and

about how we actually supply power for industry in Labrador. I think it is

important that we get an understanding of the way the power is currently

supplied in Labrador. It happens in a variety of ways, Mr. Speaker.

For instance, Happy Valley-Goose Bay and Lab West,

which includes, of course, Labrador City, and Wabush these communities and

those industries, those residential and those commercial customers are supplied,

really, from what we know from the Upper Churchill block of power, through those

areas, as we know, and they have been there for quite some time now.

So, Mr. Speaker, this has provided, as you know, over

the last number of years tremendous benefit to both the people who live there,

as it should, and for the industry both commercial and the industrial users

over those years. So, this is important to know.

Then on the South Coast in Labrador, it happens a

little bit differently. There are two options there; one would be through diesel

generation and one would be through the purchase of power from the Robinson Lake

Project, which is in Quebec. This would be the South Coast; as we move to the

North Coast, it is still primarily through diesel generation. There is a small

I think it is eighteen megawatts in Menihek that supplies some power as well. We

have a variety of options right now in Labrador when you look at the source of

electricity.

All of those, for some reason this patchwork is what

we use today. What this particular bill is doing is really not to change much of

that; really, it will not change a whole lot of that. What it will change is the

way that we price industrial power in particular to Labrador West, Labrador

City, and Wabush and how we use that to either generate economic activity or

the mining industry in Labrador West.

We all know that in this particular area there are a

number of significant opportunities that we have seen. I had the experience last

February just after becoming leader of the party and Leader of the Official

Opposition, I did take some time and I went to Labrador West. It has been quite

some time since I had been there, and it was really good to get on the ground.

Even though the weather was extremely cold in late February, I must say the

economy down there and the welcome that we had was very warm.

What I heard there was indeed that there were many

people down there, and not just the industrial customers, I would say, Mr.

Speaker. We often hear of what we would do for the Rio Tintos of the world and,

for instance, the Wabush Mines; how do we support those industries? It is

important to realize that even though sometimes we have to be very patient and

it is very difficult to understand, sometimes it may be seen as we are giving

those large industries some benefit that we are not prepared to give to our

smaller commercial ratepayers or our residential ratepayers. What I see here is

that we have so many of the residents in that area, so many of the smaller

businesses in that area who depend on the viability and the sustainability of

the larger industries.

This is not about, in my opinion, giving large mining

extra benefits or subsidizing large mining. What it is about is keeping a

sustainable and a viable economy for all the people, all the residents, in

particular Labrador West and in Happy Valley-Goose Bay. What it speaks to is how

we maintain viable and sustainable economies in this important part of our

Province.

What this particular bill does, Mr. Speaker, is it

mentions a sustainable and predictable industrial rate; what happens there is

people can actually plan. This is important. No matter what business you are in,

you can actually plan for your future expenses. The fixed cost that is

associated with energy in this particular case is a huge component of the cost

of doing business.

I will repeat, Mr. Speaker, this is not about this

being subsidized by the people of the Province. We must recover our cost here.

This is the premise of this particular bill and this particular amendment. This

is not about subsidized power. This is about cost recovery. As we deal with

that, and of course the economic benefit that comes layered on top of that

getting our cost back then the overall economic benefit comes with that. All

of us as a Province, in particular the people in Labrador, will be able to enjoy

the benefits of that.

One of the things, too, for people who are listening

and people who will read this at some point is: what is industrial power? What

makes industrial power different than, let us say, what we see in our own homes

and in our smaller businesses? That is why we have some questions about this.

The industrial power is not about, for instance, the

amount of power you actually purchase. The industrial power is about how you

actually take that power. For instance, we were told in this particular case

we have a few, for instance, industrial customers within the Province. Corner

Brook Pulp and Paper would be an example and Vale would be an example. These are

industrial customers in the Province who actually take power in a different way.

It actually goes directly. We do not need substations. We do not need

transformers. They are able to take high-voltage power.

What it means is there is less cost in getting that

power directly from, for instance, someone like Newfoundland Hydro, to the

industrial user. In this particular case, there is a different rate applied

simply because there is less cost to maintain the power supply and less cost to

get it to the industrial customer. This is what we know now to be the industrial

block, which we talk about in Labrador. Indeed, we do have customers on the

Island as well that would be considered industrial consumers.

I know this because even in my own district, for

instance, living in the community of Deer Lake, we see an industrial block of

power used by Corner Brook Pulp and Paper. Actually, this has been something

that has been very significant over the years in keeping that mill alive. If you

speak to people who have worked with Corner Brook Pulp and Paper, they will tell

you on

Document details

CollectionNewfoundland and Labrador — Debates (Hansard)
Citation2012-12-13
Typehansard
Volume / chapter2012-12-13
Languageen
Formathtm
SourcePROVINCIAL
Identifier3f55f683beab2a2ef43767e3382537224686530b

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