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March 27, 2018

HOUSE OF ASSEMBLY PROCEEDINGS

Vol. XLVIII No. 5

The

House met at 2 p.m.

MR. SPEAKER (Trimper):

Order, please!

Admit

strangers.

Please

be seated.

Order,

please!

The hon.

the Minister of Finance and President of Treasury Board.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

Thank you, Mr. Speaker.

I move,

seconded by the Premier, that this House approves in general the budgetary

policy of government.

MR. SPEAKER:

The motion is that this House

approves in general the budgetary policy of the government.

The hon.

the Minister of Finance and President of Treasury Board.

MR. OSBORNE:

Thank you, Mr. Speaker.

As we

embark on Budget 2018 and our government's vision for Building for Our Future, I

would like to reflect on the considerable progress that we have made as a

province since December 2015.

I have

always believed that you need to have a solid understanding of where you have

been before you can go forward.

December of 2015, Newfoundlanders and Labradorians were facing an unprecedented

$2.7 billion deficit. We inherited a fiscal policy guided by: No realistic plan

to return the province to surplus; Long-term plans based on the belief that oil

would always be at $100 per barrel; A promise of only $3 billion equity

investment in Nalcor Energy that was expected to generate $12 billion in

revenue; and, we were told that the investment in Muskrat Falls would be

returned in just eight short years.

Mr.

Speaker, there have been many who said Newfoundland and Labrador could not

withstand the financial crisis we inherited. Those individuals underestimate the

spirit of Newfoundlanders and Labradorians and our ability to overcome

challenges.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

Mr. Speaker, 100 years ago

our province lost an entire generation of young men in World War I, it's

difficult to imagine the impact on our morale, cultural and economic fibre. As a

people, we were able to overcome that devastating impact.

Our

resilience allowed us to endure the economic challenges of the 1930s; and we

persevered through the social and economic effects of the collapse of the cod

fishery in the 1990s and the outmigration of Newfoundlanders and Labradorians

that followed.

Newfoundlanders and Labradorians are strong. We are resilient.

We have

made significant progress over the last two years, Mr. Speaker, and we will

overcome the fiscal challenges that our province now faces.

We have

reduced our deficit from a projected $2.7 billion to a little more than $800

million today. We are on target to return to surplus, despite the volatility of

oil prices. We are moving forward with a strong commitment to creating

conditions for businesses and employment growth.

Newfoundlanders and Labradorians have an unwavering love of this province.

There is

perhaps no better example of this than Mr. Philip Hicks who was a long-time

resident of Tors Cove before his recent passing. Mr. Hicks, as one of his last

wishes, wanted the money from the sale of his house to go to the people of

Newfoundland and Labrador. He said that this province has been good to him,

especially in his senior years. He also said that this was his way of saying

thank you.

That

gesture, Mr. Speaker, highlights the spirit of Newfoundlanders and Labradorians

as we lend a helping hand to overcome challenges.

Our Way Forward

There

isn't a one size fits all solution to the issues facing our province.

We also

cannot take such severe actions as massive job reductions and cuts to services

as they would have far-reaching consequences on our already challenged economy

due to the winding down of major industrial projects. As our economy stabilizes

coming off these projects, employment remains one of our key challenges and we

are addressing this head-on. Our approach is focused on creating opportunities

for job growth across sectors and retaining our youth by supporting them to

pursue career opportunities right here at home.

Building

for Our Future addresses our province's economic, social and fiscal challenges –

it is a way forward that is methodical, fair and responsible.

This is

the approach that our government is taking, Mr. Speaker, and this is the

approach we will continue to take.

We are

driven by the goals of: managing our fiscal situation; delivering valuable

programs and services; getting better outcomes for our investments; creating an

environment which supports economic development and job creation; and creating

opportunities for residents to excel in their careers.

achieve these goals, our way forward requires a smart, evidence-based approach.

To help

guide our actions, a gender-based analysis was used to inform Budget 2018

decision making. A gender responsive budget acknowledges the inequalities

between genders and seeks to reduce those inequalities by implementing measures

that directly aim to improve lives.

Our

vision for the province includes equal participation of women in leadership

roles, and in this year's budget we are providing funding to develop a

government-community initiative aimed at increasing the number of women in

leadership roles.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

We are also supporting a

women's conference on the status of women in Newfoundland and Labrador to

facilitate knowledge sharing and mentorship opportunities for our female

leaders.

Our

government will also support women in trades and technology occupations by

funding the Office to Advance Women Apprentices and Women in Resource

Development Corporation, as well as two Roundtables on the Economic Status of

Women – one in Stephenville and one in Happy Valley-Goose Bay.

Working with the Federal

Government

important part of our approach has been the relationship with the Federal

Government and the ability to leverage available funds for maximum benefit.

For

municipalities, we have partnered on initiatives that have improved clean

drinking water and wastewater systems, along with road and community

infrastructure. We have also advanced projects to support the growth of tourism,

ocean technology, aerospace and defence, film and television, and manufacturing,

along with other industries.

We will

continue to identify opportunities where we can join our federal partners in

realizing the full benefit of our considerable investments and to help create

opportunities for economic success.

Smarter Government

Amidst

the fiscal challenges we face, we have to be open to finding new ways of doing

things.

Within

departments and government organizations, we are carefully examining how

programs and services are delivered in order to secure the best possible

outcomes. This reflects the principles of our Way Forward to advancing a

smarter, more accountable approach to managing government's operations.

Our

progress over the last two years has been encouraging.

We have

decreased government's footprint by 10 per cent, or more than 92,000 square

feet, by reducing the amount of leased space. This has resulted in approximately

$2.7 million in savings annually. We will continue to look at ways to optimize

office space, identify vacant or unused space and evaluate the potential to sell

vacant infrastructure.

partnering with other Atlantic Provinces, we have secured a new format for

driver's licences for motorists that offers improved security and protection

against identity theft while realizing savings.

Our

approach to health care is addressing increased demand for long-term care and

creating economic benefits.

For the

first time in our province's history, we are partnering with industry to build a

145 bed long-term care facility in Corner Brook which will result in $14.6

million in savings versus the traditional approach to advancing such

infrastructure. We are taking a similar approach in Gander and Grand

Falls-Windsor where we will build 60 bed facilities in each of these

communities.

committed to in the 2015 election campaign, the people of Western Newfoundland

have waited long enough for a new regional hospital. We are on target, Mr.

Speaker, to completing the request for proposals this year and construction will

begin in 2019.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

Mr. Speaker, in total, the

construction of these major health care infrastructure projects will generate

more than 4,600 person years of employment and more than half a billion dollars

in economic activity.

These

actions are just the beginning.

We will

continue to be innovative in our actions, identify opportunities to improve

access to services, and secure better outcomes.

Through

The Way Forward we are continuing to action initiatives to help improve

government efficiency. Over the next year, we will implement initiatives to

build on the progress achieved to date.

Examples

of these initiatives include:

Consolidating government's vehicle fleet under one department, which will result

in a reduction in the number of vehicles by 10 per cent. This will save

taxpayers hundreds of thousands of dollars over the long term.

Consolidating collections activities to reduce redundancy and standardize

collections processes. This will provide a single approach to managing

receivables owed across multiple departments.

We are

creating an Asset Management Framework to guide how we assess and dispose of

assets in a way that enhances service delivery and ensures maximum financial

return.

We are

adopting a strategic sourcing model that leverages the consolidated purchasing

power of government to secure better prices for goods.

We will

take steps to make it easier for citizens and businesses to access services

online, which will improve the overall experience of interacting with

government, and ultimately result in greater efficiencies and savings for the

people of our province. We are working towards a single government ID that

citizens and businesses can use for all services accessed through a single

portal.

Collective Bargaining

Mr.

Speaker, our recent collective bargaining with NAPE and its 19,000 valued public

servants reflects our fiscal reality.

working cooperatively, we were able to secure a four year wage freeze, marking

the first time in the province's history that such a freeze has been mutually

agreed to.

We've

eliminated severance, which is a major achievement that removes financial

liability. Overall elimination of severance will result in $25 million in

savings annually and $35 million once we are able to pay the debt.

We've

secured changes to group insurance. Overall implementation will result in

millions of dollars in savings in 2018, and by 2026, the annualized savings will

be in the tens of millions of dollars and continue to grow.

This

agreement strikes the balance between respecting the important work provided by

our public service and the need to address our fiscal situation. We were able to

protect a vulnerable economy by providing our employees with job security while

maintaining our ability to make workforce changes through attrition.

We look

forward to carrying on with respectful, collaborative dialogue with our other

bargaining units.

Fiscal Review: 2017-18

The

revised deficit for 2017-18 is $812 million, which is an improvement from

mid-year when the deficit was projected to be $852 million. The revised deficit

includes severance expenses under the new collective agreement totalling $37

million, which over the long term will help government realize significant

savings.

Fiscal Forecast

Despite

the issues that our province has had to face there are many positive

developments occurring in the provincial economy.

There is

significant potential in our province's natural resources industries.

Mr.

Speaker, for example, mining continues to be a major contributor to the

province. In 2018, the mining sector is forecasted to employ 6,000 people and

have $3.4 billion in mineral shipments.

Our

excitement for this industry grew when the Fraser Institute ranked Newfoundland

and Labrador as the 11th most attractive jurisdiction in the entire world for

investment. This reflects positively on our province and potential investors.

Some

highlights from this sector, Mr. Speaker, include the completion of the Long

Harbour nickel processing plant, which is adding to the long-term productive

capacity of our economy. Tacora is expected to begin production at the former

Wabush Mines this year and production should begin at the fluorspar mine in St.

Lawrence. Furthermore, development of the Voisey's Bay underground mine is

expected to resume and IOC's Wabush 3 project will provide a new source of iron

ore to extend the life of its Carol Project.

Mr.

Speaker, I can't help today but think about the employees in Labrador who voted

to strike. I will say that our government will work with both sides to try and

help resolve that issue.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

Within our oil and gas

industry, we are excited about first oil at Hebron, which is the province's

fourth offshore oil project. This project will bring new revenue to the

province. Mr. Speaker, the West White Rose project will generate over $3 billion

in royalties, return on equity and taxes with first oil expected in 2022.

Infrastructure enhancements at the St. John's International Airport and Marine

Atlantic, along with the new St. John's Convention Centre and added capacity in

the accommodations sector are helping to expand our tourism sector, Mr. Speaker.

Over the

last year, we have partnered with community and industry stakeholders to develop

innovative approaches focused on Building for Our Future. To date, we have

targeted high growth opportunities in oil and gas, agriculture, aquaculture and

technology. These areas, Mr. Speaker, will help diversify our economy and create

new employment opportunities.

We are

confident in our actions and the business and employment opportunities that will

follow. Our government believes that there is significant potential, for

example, to more than double the number of year round jobs in aquaculture from

1,000 people to 2,100 and add 500 person years of employment to the agriculture

sector.

reflected by the success of the Federal Government's Ocean Supercluster

initiative, the opportunities are limitless for our advanced technology sector.

Their accomplishments highlight that to be successful you don't have to be in

large areas such as New York, London or Toronto – businesses can grow and

compete in the global market from right here in Newfoundland and Labrador. Mr.

Speaker, we have several leading-edge technology companies that are competing

globally and they're continuing to expand.

The

success of companies and academic institutions participating in the Ocean

Supercluster initiative are representative of the more than 165 businesses in

our advanced technology sector that employ approximately 4,000 people. This

sector continues to generate $1.6 billion in annual revenues.

Mr.

Speaker, we are also primed for continued growth across a number of other

industries as well.

The

latest data on the tourism sector accentuates an industry that is home to

exciting business opportunities. Showcasing Newfoundland and Labrador to local,

national and global visitors has seen tourism become an economic pillar that

supports 2,600 businesses in our province, and nearly 20,000 jobs and generates

$1.13 billion in spending.

The

fishing and aquaculture industry continues to be a vital component of our

provincial economy. In 2017, fish and seafood production was $1.3 billion,

marking the third consecutive year that the value exceeded $1 billion. This

industry also employs more than 16,000 people from over 400 communities in

harvesting, processing and aquaculture operations.

Mr.

Speaker, the increasingly protectionist trade environment that presently exists

in the United States is challenging our forestry sector, and in particular

Corner Brook Pulp and Paper. We believe that the tariffs are unwarranted – we

stand by our support of the company and the individuals and families that make

their livelihood from the forestry industry and we will continue to work with

them to support that industry.

While we

are optimistic for the future of our industries, we are still subject to the

volatility of oil and other commodities. I have to emphasize that these local

industries are a part of a very competitive global market that is increasingly

unpredictable.

This

uncertainty has been a factor in our ability to meet the targets outlined in our

seven-year fiscal plan. In 2018-19, oil revenues will be lower than expected due

to lower production and changes to the US-Canada exchange rates. This, along

with the $52 million for the remaining one-time severance expenses have

contributed to our revised forecasted deficit of $683 million.

I have

to point out, Mr. Speaker, that the severance wasn't forecast in our deficit and

we are actually ahead of target when you remove severance at $631 million.

cannot allow these cycles to diminish the potential of our natural resources –

most notably, oil and gas. However, we need to make sure that our economic

policy is not singularly focused on oil but supportive of a more diversified

economy.

Through

the implementation of Advance 2030, our goal is to position Newfoundland and

Labrador as a preferred location for oil and gas development while supporting

the growth of an internationally recognized supply and service sector. We

believe the potential for direct employment to be more than 7,500 people in

operations with over 100 new exploration wells drilled by 2030 and that is very

much within our reach.

SOME HON. MEMBERS:

Hear, hear!

Our Financial Plan

MR. OSBORNE:

Mr. Speaker, we remain

on-target to return to surplus by 2022-23 while operating in a difficult fiscal

environment. This is made possible because of our actions that we have taken and

the balanced decisions made in Budget 2018.

When our

government set targets two years ago, we did so recognizing they were ambitious.

Budget 2018 we have continued to correct the course to stay on track. The

decisions we have made this year, and the plans for future years are all meant

to return to surplus by 2022-23. The fact that this goal is still in reach, Mr.

Speaker, in spite of the challenges that we have faced with reduced revenues, is

a significant accomplishment in itself.

SOME HON. MEMBERS:

Hear, hear!

Fiscal Control

MR. OSBORNE:

Our approach focuses on reducing spending within government while advancing

programs and services to our citizens. A truly balanced approach involves many

different areas of improvement, Mr. Speaker.

In the

past two years, we have eliminated 795 positions within our government

departments while maintaining service delivery and protecting a vulnerable

economy.

recognize that there is opportunity to expand attrition plans across the entire

public service, including our agencies, boards and commissions, as there are

more than 5,000 public servants who are now eligible to retire. By carefully

conducting workforce planning we will be able to reduce the size of the public

service and be able to spend more in a gradual way without the risk of

disrupting service delivery or the economy.

Longer

term, we continue to look for savings within all areas of the public service,

including reducing discretionary spending and working with management and unions

to address issues such as overtime and sick leave.

Price Assumptions

Budget 2018, we are forecasting oil at US$63 a barrel in both 2018-19 and

2019-20. Mr. Speaker, recognizing the volatility of oil, forecasts are carefully

considered, and are based on the forecasting models of 11 industry analysts.

Budget

2018 also forecasts US-Canada exchange rates at $0.79 in 2018-19 and $0.796 in

2019-20.

Our

actions are informed and based on the best available information.

Revenue

Revenue

forecasts have been reduced slightly from Budget 2017 estimates, mainly due to the volatility of oil revenues. While we

have reduced our reliance on oil, we remain on target to return to surplus.

2018-19, revenue is expected to reach $7.67 billion and is projected to trend

upwards between now and 2022-23.

In 2016,

the Federal Government announced its intent to implement a federal carbon

pricing system. This system covers all provinces and territories.

Our

government is currently finalizing our made-in-Newfoundland and Labrador

approach to carbon pricing, as directed by the Federal Government. We are

working with the Federal government on the details and will communicate our

approach to the public this spring. As this work progresses, we will phase out

the remainder of the Temporary Gas Tax.

In 2016,

our government had no choice but to make difficult decisions – one of which was

placing a tax on insurance.

support consumers and businesses, we will gradually decrease the tax on

automobile insurance by a minimum of five per cent over the next four years.

Beginning on January 1, 2019, we will reduce the tax by two per cent. The tax on

automobile insurance will be reduced another one per cent on January 1, 2020,

another one per cent on January 1, 2021 and another one per cent on January 1,

2022. We will continue to review this tax and make reductions as our fiscal

situation improves.

January 1, 2019, we will also ease the payroll tax on employers by increasing

the threshold from $1.2 million to $1.3 million. This will allow an additional

50 employers to be removed from this obligation and reduce the tax by up to

$2,000 per year for the remaining employers. We see this as a positive step

forward for employers in this province.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

Mr. Speaker, work continues

on in the independent review of our province's tax system. We expect the

recommendations will be considered for 2019 budget and include social and

economic factors, as well as possible tax incentives.

Expenses

Participation in federally directed programs such as carbon pricing and

wastewater initiatives comes at an added cost to provinces and territories.

While supporting these initiatives, we have been able to stay on forecast for

2018-19 at $8.36 billion.

should be noted that when the 100 per cent federally funded programs are

considered, the total net expenses are $8.29 billion, which is lower than

forecast, Mr. Speaker.

Borrowing

Budget 2017, we recognized that borrowing would need to increase in 2018-19, and

had originally forecast $1.6 billion in borrowing.

For

Budget 2018, gross borrowing will be $1.45 billion. This is lower than the

original forecast. Net borrowing for the duration of government's 2022-2023

fiscal plan is increased by $1.4 billion over those years, of this, Mr. Speaker,

$1.1 billion is due to Nalcor.

The

payout of severance to our public service employees will be approximately $600

million spread out over several years. This one-time cash flow will reduce

government's liability, saving tens of millions of dollars annually. It

eliminates millions from being added to that liability each and every year in

additional earned benefits as we go forward.

The Balanced Approach Going

Forward

Building

for Our Future is an approach that considers our challenging fiscal situation,

as well as the need to provide access to government programs and services and

helps create new businesses and employment opportunities.

The

initiatives supported in Budget 2018 reflect that deliberate approach, as well

as our social and economic factors.

Health Care and Healthy

Living

Health

care spending represents the largest portion of our provincial budget. Annually,

the cost to deliver health care programs and services in Newfoundland and

Labrador are at the highest in Canada and has increased by 130 per cent since

As a

government, Mr. Speaker, we have been diligent in maintaining health care

spending while improving access.

It is no

small undertaking but we are carefully changing how our health care system

operates. We are shifting focus from treatment to preventative care; providing

care in the home and community where possible and where appropriate, and

strengthening primary health care options.

We are

also using $72 million secured from the Federal Government to improve home and

community care and mental health and addictions services. More specifically, we

have developed a Home First Integrated Network with wrap around services for

clients and an extension of available services in the community beyond

traditional work hours.

We will

initiate a province-wide palliative care approach with greater training for

clinicians, service providers and caregivers who provide end-of-life care, and

we will increase access to home care supports for people with dementia.

Our

government has placed a spotlight on transforming how mental health and

addictions services are delivered, Mr. Speaker, breaking down stigmas, and

removing barriers to treatment.

We have

made progress, by using federal funding, we are better able to support those

experiencing mental health issues. Mr. Speaker, we will develop a province-wide

mental health service delivery model for children, youth and emerging adults to

address existing systemic barriers and gaps. We will expand e-mental health

services, improve access to addictions services and improve community-based

services to replace hospital care.

This

year, Mr. Speaker, we are allocating $6.1 million to advance a value-for-money

assessment for a new mental health facility to replace the Waterford Hospital.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

Mr. Speaker, this new

facility will be the focal point of our community-centric approach to mental

health and addictions.

Through

our province's participation in the pan-Canadian Pharmaceutical Alliance, we

have achieved a lower price on generic drugs and realize savings within the

Newfoundland and Labrador Prescription Drug Program.

This

year, we will reinvest these savings back into the program. Approximately $7.5

million will be reinvested to add new drug therapies. This investment will offer

people who use the program a range of new treatment options.

We all

recognize that improved health outcomes start with healthier and more active

lifestyles.

In The

Way Forward, our government committed to increase physical activity by seven per

cent and reduce the province's smoking rate by four per cent by 2025.

To help

achieve these goals, $200,000 has been allocated for the Carrot Rewards program,

which encourages Newfoundlanders and Labradorians to increase their daily

physical activity levels. This free mobile app rewards users for living

healthier, active lives and so far, Mr. Speaker, we've seen over 36,000

residents use the app.

We are

also investing $250,000 in smoking cessation. This will build on existing

support for the Newfoundland and Labrador Lung Association Smokers' Helpline,

the Alliance for the Control of Tobacco and the Provincial Smoking Cessation

Program for Individuals on Low Income.

Budget 2018, we are allocating more than $115 million for operational funding

for community groups, as well as support for projects and programs that they

deliver to the residents of Newfoundland and Labrador. A multi-year approach for

community grant funding will be announced in the coming weeks.

Supporting Seniors and

Inclusive Communities

Our

government recognizes that we have the responsibility to support all of our

citizens regardless of age, gender, ability or geography. It is a responsibility

that we take very seriously.

Mr.

Speaker, two years ago our government introduced a new Newfoundland and Labrador

Income Supplement and expanded the Seniors' Benefit in order to support

low-income seniors, individuals, families, and persons with disabilities.

Today,

we are continuing to provide these valuable programs with a total investment of

$121 million. In 2017, 47,000 seniors and their families received the Seniors'

Benefit and 155,000 families received the Income Supplement.

Newfoundland and Labrador is known for its culture of hard working individuals.

For some people, injuries in the workplace have negatively impacted their

livelihoods.

Together, with WorkplaceNL, our government is committed to maintaining a

sustainable workplace injury system that works for employers and employees. That

is why, beginning April 1, we are increasing the income replacement program and

rate for injured workers from 80 per cent to 85 per cent.

The

higher income replacement rate will improve benefits to injured workers and

dependent spouses, without increasing the average assessment rate charged to

employers.

Mr.

Speaker, we believe that safe, stable and affordable housing is fundamental to

the social and economic well-being of individuals, families and our communities.

Our government is working closely with community partners to help improve access

to affordable housing and make it easier for first-time home buyers to enter the

market.

This

year we are increasing the Rent Supplement Program by an additional $2 million.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

Mr. Speaker, this will

increase the number of rent supplement units and support the portable rent

supplement pilot program.

We will

also invest $10.2 million for maintenance, repair and upkeep of public housing

properties to ensure safe and quality homes are available to tenants. To

modernize and renovate public housing, $3.6 million has been allocated, which

will help ensure we continue to provide affordable housing.

Our $8.6

million investment in the Supportive Living Program and the Provincial

Homelessness Fund will allow us to partner with the community sector to prevent

homelessness.

additional $2.7 million will be invested this year to leverage federal funding

under the Investment in Affordable Housing Agreement. This will enable

Newfoundland and Labrador Housing to partner with affordable housing developers

in the private and non-profit supportive living sectors.

partnership with the Federal Government, we anticipate building new housing

units, as well as upgrading some of our existing social housing units. This will

reflect present day family size and needs of seniors. The focus will be on

providing additional housing to those who need it and to reduce wait lists for

social housing.

Mr.

Speaker, yesterday, we announced, along with the Minister responsible for

Newfoundland and Labrador Housing, that our government is making it easier for

new home buyers to purchase their first home. We are doing this through two news

programs.

The

First-Time Homebuyer's Program will include financing for a down payment as well

as a $2,000 grant for eligible first time home buyers to purchase either a new

or existing home. Newfoundland and Labrador Housing Corporation is also

increasing the average household income maximum for eligibility from $65,000 to

$75,000 for full benefit and up to $85,000 in annual income for partial benefit.

The program will be extended to March 31, 2019, with available funding of $1.25

million, and will assist an estimated 100 households to secure home ownership

for the first time. Our new Home Purchase Program will provide a $3,000 grant

towards the purchase of a newly constructed, never sold or lived in home under

$400,000, including HST.

These

innovative programs, Mr. Speaker, will stimulate the new home construction

market, economic activity and job creation.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

Our government is taking a

stand against violence and harassment.

Our

amendments to the Family Violence Prevention Act reflect the value we place on

further supporting adult victims of domestic violence and their children. As a

community, we need to work together to take action and end violence in all forms

and break down the barriers that victims face.

In this

year's budget, our government will continue to expand on this important work and

contribute to the valuable activities of our community partners. Some of this

year's commitments include: $11.8 million to support initiatives and

not-for-profit groups engaged in the delivery of transitional and emergency

housing; $250,000 to provide legal support to survivors of sexual violence.

Our

government is also providing more than $3 million in core operational funding

for 10 Regional Coordinating Committees Against Violence, eight women's centres,

the Transition House Association of Newfoundland and Labrador, the Multicultural

Women's Organization of Newfoundland and Labrador, the Newfoundland Aboriginal

Women's Network and the Newfoundland and Labrador Sexual Assault Crisis and

Prevention Centre.

Education, Skills and

Childhood Development

Mr.

Speaker, our government is taking significant steps to bring transformative

change to early childhood development and the province's education system.

The

Premier's Task Force on Improving Educational Outcomes undertook a significant

review of the education system, as well as opportunities to improve early

childhood development.

Their

review included engagement with teachers, parents, students and stakeholders and

led to recommendations that focus on inclusive education, student mental health

and wellness, mathematics, reading, Indigenous education, multicultural

education, early years, career and co-operative education and teacher education

and professional development.

Since

the release of the report, we have discussed the recommendations and next steps

with such special interest and advocacy groups as the Provincial Advisory

Council on the Status of Women, the Provincial Advisory Council for the

Inclusion of Persons with Disabilities, Relationships First-Restorative Justice

Education NL, Choices for Youth, Kids Help Phone, the Coalition of Persons with

Disabilities, the school districts, and the Learning Disabilities Association as

well as others.

Mr.

Speaker, we appreciate some of the challenges parents can experience in securing

care for their children, as well as the cost that comes with providing that

care. There is no disputing that child care is an essential support to parents

participating in the workforce or pursuing workforce development opportunities.

addition to approximately $61.6 million invested annually in early childhood

development, over the next three years – in partnership with the Federal

Government – $22 million will be available under the 10-year Child Care

Strategy, Mr. Speaker. This supports early learning and child care options

through subsidies, grants, bursaries and professional learning opportunities.

This

agreement will deliver early learning and child care systems that will improve

the lives of children and their families. It will help: Expand and enhance the

for low and middle income families. It will add a new operating grant program

for regulated family child care homes.

It will

enhance the child care capacity initiative by further increasing the net family

income threshold to $35,000.

It will

benefit Early Childhood Educators by providing increased bursaries and grants

for upgrading qualifications and enhancing access to professional learning.

Mr.

Speaker, in September 2016, our government implemented full-day Kindergarten.

Feedback from teachers and parents has been generally very positive. In

September 2018, approximately 5,000 children will enrol in full-day Kindergarten

and join the approximately 10,000 who have already benefited from this

investment.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

By actioning the task force's

recommendations we are bringing positive changes to the education system.

This

year, $6.95 million will be directed towards implementing the recommendations of

the Premier's task force.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

Mr. Speaker, of this, $3.1

million is allocated for reading specialists, learning resource teachers and

instructional assistants in K-12 education; and $1.9 million is allocated this

year to support professional learning for teachers and almost $2 million

provided annually for each of the three subsequent years.

Our

government continues to provide operating grant funding for the Provincial

Information and Library Resources Board. Our investment of approximately $11.3

million accounts for 95.7 per cent of the total library funding and is more than

twice the national average.

Mr.

Speaker, Memorial University and the College of the North Atlantic make a

valuable social and economic contribution to this province. They are also

highly-regarded among their peer institutions across the country and around the

globe.

This

year, we are able to maintain our $87.6 million operating grant to the College

of the North Atlantic and its 17 campuses.

Memorial

University will receive $366 million, which includes $55 million for the Faculty

of Medicine. This continues to represent the highest public investment as a

percentage of university's general operating revenues of any university system

in Canada. To maintain tuition levels for Newfoundland and Labrador students,

$73.1 million has been allocated, which includes an additional $4 million for

Memorial University and $1.1 million for the College of the North Atlantic.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

Mr. Speaker, our government

continues to invest significantly in infrastructure at our public post-secondary

institutions. Projects like the Core Science Facility at Memorial University's

St. John's campus and the Heavy Equipment Centre of Excellence at the College of

the North Atlantic in Stephenville provide significant business and employment

opportunities.

Once

constructed, these new facilities will help improve program delivery, increase

capacity for research and lead to new opportunities to collaborate with

industry.

reflected by the considerable investments we are making in Newfoundland and

Labrador's public post-secondary system, our government sees it as being of

vital importance to this province.

Mr.

Speaker, following on the comprehensive review of the K-12 education system, it

is timely to undertake an independent review of the province's public

post-secondary education system. It has been 14 years since there has been a

review of the public post-secondary system. Over that time, there have been

changes to our economy, to our demographics and changes at our post-secondary

institutions.

This

review will help ensure our institutions are well-positioned to meet the needs

of students well into the future, address emerging labour market demands and

continue to contribute to the province's economic growth.

Through

the Independent Appointments Commission, government will appoint a committee of

experts to undertake a system-wide review that will explore how our

post-education system compares to other jurisdictions, and to recommend options

to achieve better outcomes in post-secondary education in a more cost-efficient

manner. Memorial University and the College of the North Atlantic will play key

roles in this review.

Mr.

Speaker, to support skills development and training, we are also investing

approximately $6.1 million to support youth in employment and career related

activities. Government continues to provide funding for Women in Science and

Engineering Newfoundland and Labrador to give female high school students real

work experience in science and engineering careers they may consider in the

future.

Additionally, through a $230,000 cost-shared agreement among the four Atlantic

Provinces – of which $69,000 is coming from this province – the Atlantic

Workforce Partnership Secretariat will be established right here in Newfoundland

and Labrador.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

This secretariat will lead

important work on apprenticeship, labour market information, business supports,

youth initiatives, and immigration.

This

year, our government will continue to modernize and strengthen apprenticeship

through more flexible delivery models. We will further build on our online

capacity for skilled trades.

We will

also continue to collaborate with industry and community stakeholders to

identify and create opportunities for women in trades and technology, providing

annual funding to the Office to Advance Women Apprentices and the Newfoundland

and Labrador Organization of Women Entrepreneurs. In addition, through funding

for the Newfoundland and Labrador Organization of Women Entrepreneurs, women

receive assistance in creating jobs for themselves and others by starting a

business.

Newfoundland and Labrador continues to participate in the Atlantic

Apprenticeship Harmonization Initiative which aligns the rules and standards for

apprenticeships in Atlantic Canada. This year, it will be expanded to include

six more trades and also engage stakeholders in the development of a new

apprenticeship management system. This work will be supported through the

Atlantic Apprenticeship and Harmonization Office which will be located in St.

John's – a first for the province.

Mr.

Speaker, the Provincial and Federal Governments are finalizing agreements that

will provide additional funding to support employment and training programs.

Through these agreements, our government will strive to increase participation

in the local labour market for under-represented groups, including women, and

assist them to achieve gainful employment.

As we

continue to work with industry partners to expand the oil and gas, agriculture,

aquaculture, and technology sectors put forward in The Way Forward, Mr. Speaker,

we are supporting career development opportunities for youth by allocating

$196,000 for a new Student Mentorship Program. This program will be supported by

the Federal Government and will provide 25 youth with work experience in each of

these targeted sectors for a total of 100 student jobs. We have targeted these

high-growth industries through the work of our Cabinet Committees on Jobs.

Safe and Sustainable

Communities

Mr.

Speaker, attracting immigrants to Newfoundland and Labrador is essential as we

respond to the province's aging population, to help increase our population and

support economic activity. Newfoundland and Labrador has many great attributes

that makes our province an attractive place to live.

We will

leverage these strengths as we implement the actions outlined in The Way Forward

on Immigration in Newfoundland and Labrador. Mr. Speaker, this year, we have

allocated $2.4 million in provincial funding and will leverage another $1

million in federal funding to attract and retain new immigrants to this

province.

Building

for Our Future underscores the working relationship with municipalities to

advance infrastructure, create safer, more sustainable communities and encourage

economic development.

Budget 2018, we are maintaining municipal operating grants at $22 million;

provincial revenue from the gasoline tax will remain at one cent per litre,

providing $7.1 million annually to municipalities; and, more than $2 million

will be allocated to the Special Assistance Grant program to assist communities

with emergency and small capital needs.

Under

the three-year $100 million municipal infrastructure program, we are investing

approximately $10.6 million in 2018-19 through the provincial Municipal Capital

Works Program. In addition to this, Mr. Speaker, we are providing $18.8 million

to leverage an additional $12.7 million in federal funding under the Small

Communities Fund of the New Building Canada Fund.

Through

our $1.88 million investment in fire services vehicles and equipment, we will

continue to work with our emergency management partners to ensure the safety of

residents and communities. We are also working to assist municipalities to

utilize funds for used fire vehicles where acceptable options are identified.

This funding, along with the supporting cost-shared ratios, encourages a focus

on opportunities for regionalization of services.

Our

government is proud to continue the presumptive cancer coverage benefit that

career and volunteer firefighters now receive.

This

year, Mr. Speaker, we are expanding support for our first responders by

introducing a new Search and Rescue Volunteer Tax Credit.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

This new credit will allow

eligible search and rescue volunteers to claim a $3,000 non-refundable tax

credit starting on January 1, 2019 on their provincial income tax.

Through

Budget 2018, we are also continuing to support communities and help residents

build a greener and more energy efficient province.

To help

reduce high energy costs for low income individuals, $2 million has been

allocated for the Home Energy Savings Program through Newfoundland and Labrador

Housing.

collaboration with Newfoundland Power and Newfoundland and Labrador Hydro, we

will continue to implement the Energy Efficiency Loan Program, which provides

low-interest loans for energy efficiency home upgrades. Over the next two years,

we have allocated $1.5 million annually for this vital initiative.

Over the

last two years, Newfoundlanders and Labradorians have continued to see the

impacts of climate change first-hand. We've experienced significant weather

events in the western, central and southern regions of the island, as well as in

Labrador.

We are

consulting with the Federal Government to recover eligible expenses associated

with these damages. We will continue work to ensure residents are supported in

their time of need.

Through

Budget 2018, we have allocated $12.5 million in funding for the Newfoundland and

Labrador – Disaster Financial Assistance Arrangements program.

Flood

risk mapping enables us to know possible outcomes in case of water levels rising

and to assist emergency management partners in responding. To support this

valuable analysis, $1 million is being allocated to update flood risk mapping

studies and forecasting for the Humber River Valley, Exploits River Valley, and

Badger Ice Progression Model.

Through

Budget 2018, we will also invest $1 million to conduct flood-risk mapping and

flood forecasting for Mud Lake and Happy Valley-Goose Bay, as well as $200,000

annually for satellite imagery, field data collection for ice thickness

monitoring, and weather data collection.

This

work is in addition to the recently announced water and ice monitoring on the

Churchill River, and community-based monitoring program that is focused on

mitigating and responding to potential flooding events in the future.

Phase

III environmental site assessments will be undertaken this year through a

$500,000 investment by each of the federal and provincial governments.

We are

continuing to strengthen the justice system in Newfoundland and Labrador.

Our

government is committed to improving access to justice and increasing

transparency and accountability in law enforcement. We believe that justice must

be inclusive and secure full public confidence.

It is

crucial that residents of this province have faith in the administration of

justice. We are committed to improving police oversight by investing $250,000

this year, and $500,000 in future years, to establish a Serious Incident

Response Team, which will provide an increased level of transparency and help

ensure people have trust in the justice system.

support safe, efficient and effective policing, corrections, court facilities

and legal services throughout Newfoundland and Labrador $1.8 million will be

used to advance existing renovation projects and planning for the construction

of new facilities.

support the relocation of the Family Court to the Argyle Building in St. John's,

we are providing $1.3 million for renovations. This new location will help

investment of $149,000 in the Supreme Court Trial Division on Duckworth Street

in St. John's will address necessary renovations to the public areas in the

courthouse building to improve flooring and lighting.

Budget 2018 we are allocating $300,000 to advance planning to replace Our

Majesty's Penitentiary. This funding will supplement the ongoing work related to

the design and construction of a new facility.

A new

penitentiary will foster security, health and safety and operational efficiency,

as well as support Adult Corrections in the development and implementation of

policies and programs that will allow inmates an opportunity to become

productive members of society and break the cycle of reoffending. It will also

enable a direct supervision model which focuses upon interaction between inmates

and staff.

Mr.

Speaker, our government is committing $1.74 million to advance province-wide

mobile crisis intervention teams. These teams will include police officers who

will join with mental health professionals to respond to calls to those in

mental health crisis. This is supported by funding secured through the bilateral

agreement with the Federal Government.

The

Government of Newfoundland and Labrador is committed to making improvements in

the Office of the Chief Medical Examiner. We are investing an additional

$563,000 in the office for a total investment of approximately $1.5 million.

These funds will improve operations by adding staff and resources to the office,

including an additional pathologist.

With the

support of the Federal Government, an investment of $200,000 will be made to

establish a Drug Treatment Court in St. John's. This court will provide

specialized court-monitoring treatment and community service supports for

individuals who have engaged in non-violent offences caused by drug addictions.

Labrador

Mr. Speaker, our government is working hard to support

a strong and vibrant Labrador.

SOME HON. MEMBERS:

Hear, hear!

MR.

OSBORNE:

Socially and economically, we continue with the construction of the

Trans-Labrador Highway because it is of tremendous importance to our government.

This year's budget of more than $83 million will advance four major paving

projects on the Trans-Labrador Highway from Blanc Sablon to Happy Valley-Goose

Bay. These improvements will bring the highway closer to completion and help

link residents and create new business opportunities.

In Budget 2018, $68,000 has been allocated for the

Labrador Trail Grooming Subsidy. This will support a 185-kilometre marked trail

between Nain, Natuashish and Hopedale.

We are pleased to allocate $11 million over the next

three years to support the construction of the Labrador Wellness Centre in Happy

Valley-Goose Bay with $4.2 million budgeted this year.

Our government will also provide $730,000 for the

Labrador Travel Subsidy program to offset costs for teams to travel to

provincial championships and $500,000 to support the Labrador Winter Games,

which will take place in Happy Valley-Goose Bay in March 2019.

Our government appreciates the high cost of medical

travel from Labrador to the island for specialized, insured medical treatments.

The Medical Transportation Assistance Program will

pre-pay the full far price up to $1,000 per year. For airfare costs exceeding

$1,000 per year, we will pre-pay $1,000 plus, 50 per cent of the remaining cost

of the fare.

SOME HON. MEMBERS:

Hear, hear!

MR.

OSBORNE:

address concerns regarding the health and well-being of the people of Labrador

as related to the Muskrat Falls Project, our government continues to work

closely with the Innu Nation, Nunatsiavut Government and the NunatuKavut

Community Council.

Budget

2018 will provide approximately $53,000 for a position dedicated to working with

the Independent Expert Advisory Committee, which was established to make

recommendations on mitigating potential impacts of methylmercury from the

Muskrat Falls Project.

The

Government of Newfoundland and Labrador is investing $100,000 in planning for

improvements, including increasing the capacity at the Labrador Correctional

Centre.

Indigenous Communities

Mr.

Speaker, our government recognizes that there are a number of challenges in our

Indigenous communities, primarily related to social issues and other factors

such as the remoteness of communities. This often translates to a higher number

of children requiring the services of the Department of Children, Seniors and

Social Development.

Innu

Nation and the Government of Newfoundland and Labrador have agreed to hold an

inquiry into the treatment of Innu children in foster care. In Budget 2018 we

are allocating $1 million to start this work and advance discussions with the

Federal Government.

Our

government also appreciates that Indigenous women and girls are particularly

susceptible to experiencing violence. To help prevent violence against women and

girls, our government is continuing to work with Indigenous organizations and

groups to find culturally appropriate approaches to preventing acts of violence.

Through

Budget 2018, the Women's Policy Office, in collaboration with the Provincial

Indigenous Women's Conference Steering Committee, will continue to provide

funding for the annual Indigenous women's conference. We will also continue to

provide funding support for violence prevention projects through the Indigenous

Violence Prevention Grants Program.

Mr.

Speaker, we continue to support provincial participation in the National Inquiry

into Missing and Murdered Indigenous Women and Girls through a budget allocation

of $3 million. This is a valuable inquiry that will examine the high rate of

violence against Indigenous women. The establishment of Family Information

Liaison Units will provide supports to families impacted by the inquiry.

Building

on the success of the first-ever Indigenous Leaders Roundtable, held in May in

St. John's, our government is moving forward with plans to again bring

Indigenous leaders together to continue the dialogue on matters of mutual

importance.

With

leadership from the Federal Government, and in partnership with Indigenous

governments and organizations and territorial and provincial governments in

Canada's North, our government is engaged in the discussions and planning for a

new Arctic Policy Framework. We believe that this holds the potential to support

community and economic development.

Industry Development

Mr.

Speaker, over the last year, we have been incredibly active in laying a stronger

foundation to support job growth. The partnerships formed through our industry

summits and direct investments in business are helping create a positive

environment for long-term economic activity. Examples of this include our:

Agreement with Husky Energy on its West White Rose Extension, which will create

upwards of 5,000 person years of construction employment and over $3 billion in

royalties, return on equity and taxes; $17 million loan to Canada Fluorspar

which will provide significant direct and spin-off jobs on the Burin Peninsula;

and, $2.25 million forgivable loan to PAL Aerospace to create 150 person years

of employment over five years.

As a

government, we are optimistic on the benefits attached to the five-year, $37

million Canadian Agricultural Partnership with the Federal Government. Supported

by $14.8 million in provincial funds, we are better positioned to expand the

agriculture and agrifoods industry, by encouraging existing farmers to increase

innovation and create jobs, attracting new entrants, young people and Indigenous

groups, in growing the industry.

With a

strong focus on innovation, the Atlantic Fisheries Fund will continue to help

meet growing global demands for sustainably-sourced, high-quality fish and

seafood products. Our $10 million investment this year will leverage funding

from the fund. The first investments under the new fund were recently announced

and we will build on this to further support our fishery.

Our

government believes strongly in the tourism industry and the untapped potential

that this industry still holds. To support the industry's growth, we are

allocating $12.9 million for tourism marketing, which includes a $600,000

investment in four regional Destination Management Organizations.

I am

pleased to announce, Mr. Speaker, that as of April 1 this year, youth aged 16

and under will have free access to provincial historic sites during our summer

months.

The film

and television industry is a generator of well-paid skilled jobs and attracts

new investment. Beyond direct hires, it creates economic spin offs through

spending on construction supplies, gas, car rentals, hotels, food and a wide

variety of other items necessary to make television and film production

successful.

2017-18 production activity has exceeded $50 million, up from approximately $40

million the year before, and resulting in approximately 640 full-time equivalent

positions. To build on the growth of this exciting industry, our government will

maintain the $4 million investment in the Film Equity Program that was doubled

in last year's budget.

Social

enterprise development is an innovative tool for advancing regional growth

opportunities. This year, we have allocated $75,000 from our Community Capacity

Building Program to advance training and education about social enterprises.

Small

businesses are a huge part of energizing local economies and sustaining rural

communities. As a government, we will continue to create an environment that

drives a strong and diversified economy.

A key

element of this is our more than $35 million that has been allocated to support

economic development, research and development and investment attraction.

celebrate the contribution of youth in the arts, the 2018 Arts and Letters

competition will change to an Art Exhibit format creating a tremendous

opportunity for youth to exhibit their works at The Rooms. It also helps create

awareness of career opportunities in the arts.

Mr.

Speaker, digital technology is ever-present in our daily lives. It is integral

to business operations, tourism experiences, community activities, as well as

health and public safety.

Increasingly, this access is acquired through handheld devices. As such, the

Provincial Government will also work with community and industry partners to

advance cellular coverage with an additional $1 million investment to help

leverage additional funding for this critically important infrastructure. Mr.

Speaker, this will result in improved cellular coverage in several rural areas

in our province over the next two years.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

Mr. Speaker, to build on our

province's attractive mining industry, our government is allocating $4.9 million

this year for the Geological Survey, as well as allocating $1.7 million to the

Mineral Incentive Program to encourage additional mineral exploration.

creating an attractive environment for exploration and supporting advancement,

we are strengthening the industry and growing private sector jobs. Mr. Speaker,

we are strengthening the economy. Whether globally or nationally, our goal is

that Newfoundland and Labrador will be the top choice for potential investors.

Infrastructure

Mr.

Speaker, in addition to our investments in industry development, our commitment

to advancing infrastructure throughout the province will help stimulate economic

activity and stimulate job creation while providing access to services in modern

facilities.

Last

year, our government launched a five-year plan for new and existing schools,

health care facilities, post-secondary institutions, roads and bridges, justice

facilities, affordable housing and municipal infrastructure. This year, we will

continue to build on this momentum and action a plan that includes a total

investment of $619.7 million. This Five Year Infrastructure Plan will generate

an average of $540 million in economic activity in Newfoundland and Labrador. It

will create 5,300 years of employment per year.

Education

Mr.

Speaker, within the K-12 system this year, we are investing $1.4 million to plan

for a new Francophone school and to plan for the replacement of the Bay d'Espoir

Academy. We are investing $900,000 for a new school bus depot in Corner Brook.

We are investing $4.3 million to complete an extension to the Mobile Central

High School.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

We are investing $11.4

million to start construction of an intermediate school in Paradise and the

replacement of Coley's Point Primary in Bay Roberts.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

Mr. Speaker, this year, we

will invest $15.5 million for repairs and maintenance to existing schools.

For the

post-secondary education system, $36.3 million has been allocated for Memorial

University's new science building and the Animal Resource Centre, as well as the

redevelopment of its Battery Facility. Construction of the College of the North

Atlantic's Heavy Equipment Centre in Stephenville and upgrades to the college's

Centre for Energy and Thermal Systems will continue with an investment this year

of $15 million.

Health Care

Mr.

Speaker, Budget 2018 includes investments which will ensure health care

infrastructure can meet the demands of residents. Including the $6.1 million for

the value-for-money analysis to replace the Waterford Hospital that I have

already mentioned, we will also invest $8 million for a new regional west coast

hospital in Corner Brook.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

We will invest $6.25 million

for the development of the Green Bay Health Centre in Springdale.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

We will invest $4 million to

support the 20-bed expansion of the protective care unit at the Dr. Hugh Twomey

Health Centre in Botwood. This year we will be investing $3.75 million for the

ongoing development of new long-term care homes in Gander and Grand

Falls-Windsor. We will invest $3.2 million to advance a new ambulatory care

space at the Carbonear General Hospital. We are investing this year $400,000 for

the ongoing construction of a new long-term care home in Corner Brook and, Mr.

Speaker, $45 million will be invested for repairs, renovations and equipment

upgrades at health care facilities across the province.

Mr.

Speaker, while progress has been made to recruit and retain women in trades and

technology occupations, government will work collaboratively with industry and

community organizations to develop Women's Employment Plans for the new

long-term care and mental health facilities, as well as the regional hospital in

Corner Brook.

Transportation

Mr.

Speaker, in 2017, we introduced a five-year plan to improve the province's road

network. It also allows us to take better advantage of our short construction

season through early tendering, which leads to more competitive bidding.

By the

end of the season last year, more than 500 lane kilometres had been paved and

more than 360 culverts were replaced. Mr. Speaker, this year, our government

will match last year's roads plan budget of $77.2 million. Tenders for many

projects have already been issued, while the remaining tenders will be issued in

the coming days.

Budget

2018 will allocate more than $83 million for four major paving projects,

maintenance and upgrading along the Trans-Labrador Highway from Blanc Sablon to

Happy Valley - Goose Bay.

Mr.

Speaker, to extend the Team Gushue Highway from Kenmount Road to Topsail Road,

this year we are investing $13.7 million.

For

safety on our provincial highway, as this remains a top priority for government,

we will continue to use technology to help motorists make informed decisions

before travelling. This year, $600,000 has been allocated for highway camera

operations, including the installation of four new cameras on the Trans-Canada

Highway between Port aux Basques and Corner Brook; Route 330 near Lumsden; Route

430 near Rocky Harbour; and Route 460 leading to Stephenville.

Last

year, we also announced a five-year marine infrastructure plan to provide better

services at ferry ports across the province. Budget 2018 will allocate $6.1

million for improvement of ferry terminals and wharves and an additional $13.5

million for vessel refits and maintenance of provincial ferries.

Mr.

Speaker, as we go forward, we must ensure that the services such as our

provincial ferry system are operating as efficiently as possible.

Energy Resources/Nalcor

Energy

Mr.

Speaker, our government continues to make substantial progress in improving the

transparency and accountability at Nalcor Energy. In collaboration with the

Crown corporation, we have greater certainty on the cost estimates and timelines

for the completion of the Muskrat Falls Project.

Mr.

Speaker, under the terms set by the previous administration, we are once again

required to make an equity investment in Nalcor Energy. This year, that

investment totals $723.9 million. Mr. Speaker, the project is nearing

completion; 90 per cent complete as of this year. We say thank you to Mr.

Marshall for the work that he's done at Nalcor Energy. We continue to have

confidence in the work that he's doing.

Budget

2018 allocates more than $20 million and an additional $13.7 million in 2019 to

support an independent inquiry, led by Justice LeBlanc. This inquiry will

provide greater understanding of what led to the previous administration's

sanctioning of the Muskrat Falls Project and why budgets increased from $6.2

billion to $12.7 billion that's projected today, as well as why schedules were

consistently underestimated.

Mr.

Speaker, while we cannot change the past, we can learn from the mistakes and

make more responsible, informed decisions that minimize the impact on our rate

payers.

Addressing electricity rates has been, and will continue to be, a priority for

this government.

All

options are being explored. These may include: continuing to purchase and import

less expensive power via the Maritime Link and Labrador Island Link; exporting

surplus recall energy from the Upper Churchill; bringing surplus power from

Labrador across the Labrador Island Link for use on the island in 2018; finding

ways to use energy more efficiently, reduce peak demand, free capacity for

exports and domestic customers; and expanding the customer base within our

province.

Mr.

Speaker, our vision for the province does not include the doubling of

electricity rates.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

Mr. Speaker, we are focused

on ensuring that electricity rates are competitive with our Atlantic provinces.

Earlier

in my speech, I highlighted our government's ambitious plan – Advance 2030 – to

accelerate responsible development of our offshore oil industry.

Our

optimism is supported by the long-term exploration programs for the various

holdings in the Jeanne d'Arc, Flemish Pass and Orphan basin that Statoil, Husky,

ExxonMobil, Nexen Energy and BP are undertaking. They have already submitted

program descriptions to the Canadian Environmental Assessment Agency.

Current

exploration work commitments in our offshore oil industry total $2.9 billion. To

maximize the true potential of our offshore oil industry, it is important that

we continue to invest in seismic acquisition which defines the opportunity,

attracts exploration and encourages development.

To date,

outcomes of provincial investments in seismic acquisition have been exciting. We

now know there are over 20 basins including several new play trends and we have

identified over 650 new leads and prospects. Mr. Speaker, taking this

information to the world's leading oil and gas companies has resulted in seven

new entrants to our offshore in the last two years alone and has driven

investment in exploration.

Mr.

Speaker, to help realize our full potential in the offshore oil and gas

development and to support Advance 2030, our government is committed to

initiating a process that would see the oil and gas subsidiary of Nalcor

established as a stand-alone Crown corporation. It will work directly with the

Department of Natural Resources to accelerate the growth and opportunity of our

petroleum industry, returning significant value to the people and to the economy

of Newfoundland and Labrador.

Mr.

Speaker, before I conclude I want to say thank you to our Premier and our caucus

for the many, many hours they've put in putting this budget together. Our

Cabinet and our caucus spent many nights here.

I want

to thank my deputy minister, Denise Hanrahan, and our ADM, Craig Martin, as well

as the daughter of one of our Members, Michelle Jewer, who have put a tremendous

amount of work into putting this budget together and the staff that they have

behind them. It's incredible the dedication they have to improving this province

and making it a better place to live.

SOME HON. MEMBERS:

Hear, hear!

Conclusion

MR. OSBORNE:

Mr. Speaker, Building for Our

Future is a plan that will allow Newfoundland and Labrador to continue to

overcome the fiscal challenges experienced today with strength, with resilience

and with innovation to advance the opportunities for industry and employment

growth, and to maintain our commitment to ensuring access to high quality

programs and services.

It's a

plan that spends less on government and more on Newfoundlanders and Labradorians

through the services we provide. It's a plan where every dollar is used to its

fullest potential.

Mr.

Speaker, our government has been focused on fiscal control, we have not

increased the deficit for new spending. Despite the increases in the consumer

price index and increased demand due to federal offsets we have remained on

target to return to surplus and start paying the province's debt. Our goal is to

manage through this tough phase.

Mr.

Speaker, our government fully believes that this province's future is bright. We

will continue to work with industry through The Way Forward to diversify the

economy and to partner with stakeholders to develop opportunities for the people

of Newfoundland and Labrador.

The

actions we are taking today will strengthen our economy and stimulate new

employment opportunities.

Before I

end, Mr. Speaker, I'm going to give a quote from Winston Churchill: Pessimists

see difficulty in every opportunity; optimists see opportunity in every

difficultly.

Mr.

Speaker, the actions we are taking today will strengthen our economy and

stimulate employment opportunities.

As I

have said, our plan is working. Our future is promising in Newfoundland and

Labrador.

Thank

you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Minister of

Finance and President of Treasury Board.

MR. OSBORNE:

Mr. Speaker, I move, seconded

by the Premier, that the debate be adjourned.

MR. SPEAKER:

The motion is that the debate

be adjourned.

Is it

the pleasure of the House to adopt the motion?

All

those in favour?

SOME HON. MEMBERS:

Aye.

MR. SPEAKER:

All those against?

This

motion is carried.

motion, budget debate adjourned.

MR. OSBORNE:

Mr. Speaker, I wish to inform

the House that I have received a message from His Honour the

Lieutenant-Governor.

MR. SPEAKER:

All rise.

Lieutenant-Governor of the Province of Newfoundland and Labrador, I transmit

Estimates of sums required for the Public Service of the Province for the year

ending 31 March 2019, in the aggregate of $7,817,543,600, and in accordance with

the provisions of sections 54 and 90 of the

Constitution Act, 1867 , I recommend

theses Estimates to the House of Assembly.

Sgd.:

____________________________

Lieutenant-Governor

Please

be seated.

The hon.

the Minister of Finance and President of Treasury Board.

MR. OSBORNE:

Mr. Speaker, I move, seconded

by the Premier, that the message, together with the Estimates, be referred to a

Committee of Supply.

MR. SPEAKER:

It is moved and seconded that

the message from His Honour the Lieutenant-Governor, together with the

Estimates, be referred to a Committee of Supply and that I do now leave the

Chair.

Is it

the pleasure of the House to adopt the motion?

All

those in favour?

SOME HON. MEMBERS:

Aye.

MR. SPEAKER:

All those against?

The

motion is carried.

motion, that the House resolve itself into a Committee of the Whole, the Speaker

left the Chair.

Committee of the

Whole

CHAIR (Warr):

Order, please!

We shall

take a few minutes to distribute the budgetary documents to all hon. Members.

(Budgetary documents are distributed.)

CHAIR:

Order, please!

The hon.

the Government House Leader.

MR. A. PARSONS:

Mr. Chair, I move that the

Committee rise, report progress and ask leave to sit again.

CHAIR:

The motion is that the

Committee rise, report progress and ask leave to sit again.

All

those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

CHAIR:

All those against, 'nay.'

Carried.

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

Speaker returned to the Chair.

MR. SPEAKER (Trimper):

Order, please!

The hon.

the Member for Baie Verte - Green Bay, the Chair of the Committee of Supply.

MR. WARR:

Mr. Speaker, the Committee of

Supply have considered the matters to them referred and have directed me to

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

MR. SPEAKER:

The Chair of the Committee of

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

and have directed him to report that they have made some progress and ask leave

to sit again.

When

shall the report be received?

Now?

MR. A. PARSONS:

Now.

MR. SPEAKER:

Now.

When

shall the Committee have leave to sit again?

Tomorrow?

MR. A. PARSONS:

Tomorrow.

MR. SPEAKER:

Tomorrow.

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

MR. SPEAKER:

Notices of Motion.

Notices of Motion

MR. SPEAKER:

The hon. the Minister of

Finance and President of Treasury Board.

MR. OSBORNE:

Thank you, Mr. Speaker.

I give

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

An Act To Amend The

Revenue Administration Act, Bill 7.

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

An Act

To Amend The Income Tax Act, 2000, Bill 8.

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

An Act

To Amend The Revenue Administration Act No. 2, Bill 9.

MR. SPEAKER:

Further notices of motion.

The hon.

the Government House Leader.

MR. A. PARSONS:

Mr. Speaker, I give notice,

and by leave, move that the composition of the Committees for Estimates will be:

the Resource Committee will consist of Members for the following Districts: Baie

Verte - Green Bay, Exploits, Fogo Island - Cape Freels, Fortune Bay - Cape La

Hune, Mount Pearl North, Harbour Grace - Port de Grave, St. John's East - Quidi

Vidi and Stephenville - Port au Port.

The

Government Services Committee will consist of the Members for the following

Districts: Torngat Mountains, Bonavista, Burin - Grand Bank, Ferryland, Harbour

Main, Conception Bay South, St. John's East - Quidi Vidi and Stephenville - Port

au Port.

The

Social Services Committee will consist of Members for the following Districts:

Burin - Grand Bank, Baie Verte - Green Bay, Cape St. Francis, Conception Bay

East - Bell Island, Exploits, Harbour Main, St. George's - Humber and St. John's

Centre.

MR. SPEAKER:

Is it the pleasure of the

House to adopt the motion?

All

those in favour?

SOME HON. MEMBERS:

Aye.

MR. SPEAKER:

All those against?

The

motion is carried.

The hon.

the Government House Leader.

MR. A. PARSONS:

Mr. Speaker, I further give

notice, and by leave, move that the following heads of expenditure be referred

to the Government Services Committee: Consolidated Fund Services; the Department

of Finance; Executive Council; Public Service Commission; Service NL; the Public

Procurement Agency; and the Department of Transportation and Works.

That the

following heads of expenditure be referred to the Resource Committee: the

Department of Advanced Education, Skills and Labour; Fisheries and Land

Resources; the Department of Tourism, Culture, Industry and Innovation; and the

Department of Natural Resources.

That the

following heads of expenditure be referred to the Social Services Committee: the

Department of Children, Seniors and Social Development; the Department of

Education and Early Childhood Development; the Department of Health and

Community Services; the Department of Justice and Public Safety; the Department

of Municipal Affairs and Environment; and the Newfoundland and Labrador Housing

Corporation.

Mr.

Speaker, I also wish to advise Members that on Wednesday, March 28, at 5:30 p.m.

the Social Services Committee will meet in the Chamber to review the Estimates

for the Department of Justice and Public Safety.

MR. SPEAKER:

Is it the pleasure of the

House to adopt the motion of referral?

All

those in favour?

SOME HON. MEMBERS:

Aye.

MR. SPEAKER:

All those against?

The

motion of referral is carried.

The hon.

the Government House Leader.

MR. A. PARSONS:

Mr. Speaker, I move, seconded

by the Minister of Natural Resources, that the remaining Orders of the Day do

stand deferred and that this House on its rising do adjourn.

MR. SPEAKER:

The motion is that this House

do now adjourn.

Is it

the pleasure of the House to adopt the motion?

All

those in favour?

SOME HON. MEMBERS:

Aye.

MR. SPEAKER:

All those against?

The

motion is carried.

This

House stands adjourned until tomorrow at 10 in the morning.

motion, the House at its rising adjourned until tomorrow, Wednesday, at 10 a.m.