May

4, 2009

HOUSE OF ASSEMBLY PROCEEDINGS

Vol. XLVI No. 14

The House met at 1:30 p.m.

MR. SPEAKER (Fitzgerald): Order, please!

Admit strangers.

Today the House of Assembly would like to welcome forty-six Grade 8 and Grade

9 band students from the Exploits Valley Intermediate in the District of Grand

Falls-Windsor-Buchans. The students are accompanied by their teacher, Mr. Denley

Henstridge; director, Mr. Mike Carroll; chaperons, Ms Joan Sutherland and Ms

Shelley Haas; and the bus drivers Mr. Joe Roberts and Mr. Andy Roberts.

Welcome to the House of Assembly.

SOME HON. MEMBERS: Hear, hear!

Statements by Members

MR. SPEAKER: The following members' statements will be heard: the hon.

the Member for the District of Burgeo & LaPoile, the hon. the Member for the

District of Baie Verte-Springdale, the hon. the Member for the District of Port

de Grave, the hon. the Member for the District of Fortune Bay-Cape la Hune, the

hon. the Member for the District of Placentia & St. Mary's.

The hon. the Member for the District of Burgeo & LaPoile.

MR. KELVIN PARSONS: Thank you, Mr. Speaker.

I rise today to recognize and congratulate the officers of Loyal Orange Lodge

151 of Ramea on hosting a successful convention in Ramea.

This is the 137 annual convention of the Grand Orange Lodge of Newfoundland

and Labrador. The convention is being attended by members from all over the

Province as well as from Nova Scotia, New Brunswick and Ontario. The convention

began this past Friday and will run until Wednesday of this week. Albeit Ramea

is a small community, they can accomplish big things. The way they have

organized this event and billeted so many people in that community is amazing.

I had the pleasure of attending their banquet this past Saturday evening and

meeting many of the enthusiastic participants. Yesterday they held a church

service and parade with a thirty-five piece band who were bussed in from the

Avalon Peninsula, actually, especially for the occasion.

Mr. Speaker, I ask all members of this House to join with me in extending

congratulations to the members of Loyal Orange Lodge 151 on hosting a successful

convention at Ramea. You should be very proud of the job you are doing and we

wish you well with the remainder of your convention.

Thank you

SOME HON. MEMBERS: Hear, hear!

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

Verte-Springdale.

SOME HON. MEMBERS: Hear, hear!

MR. POLLARD: Thank you, Mr. Speaker.

I rise in this hon. House today to salute a special hockey team who achieved

hockey supremacy in their division. It is my honour and delight to congratulate

Springdale's under twelve female hockey team who captured the goal medal at

the provincial division A championships hosted by Springdale during the Easter

break.

Coached by Dave and Lisa Edison, and Vicky MacDonald, the members of the

proud team are LaShonda Roberts, Kaitlyn Watkins, Robin Rideout, Brittany

Andrews, Sarah Mercer, Emily Edison, Kristy McDonald, Kailey Gillingham, Carrie

Thomas, Tara Traverse, Allie Saunders and Chelsea Hobbs-Regular.

As all hockey fans are aware, no championship comes about without hard work,

dedication, good coaching, talent, and community support. This team possessed

all of these ingredients and more besides.

Honourable colleagues, please join me in congratulating the Under 12 female

hockey club, and the coaches, for capturing the provincial title for the second

year in a row, Mr. Speaker.

Thank you very much.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for the District of Port de Grave.

MR. BUTLER: Mr. Speaker, this past weekend I was honoured to take

part in

the opening and closing ceremonies for the twelfth annual Avalon Regional

Historical Fair. I have to say, it was a pleasure to have the Member for

Carbonear-Harbour Grace, the Minister of Finance, visit the wonderful district.

This year's event took place at the Bay Arena, Bay Roberts, with forty-four

schools participating. Some forty-eight judges had the very difficult task to

view over 100 exhibits depicting our heritage. The research, presentation and

content of each exhibit displayed the tremendous involvement of all presenters.

Many awards were presented in various categories, but the end result was a

winner to represent our Province at the nationals. That honour went to Matthew

Blundon of Bay de Verde, who attends Baccalieu Collegiate. Matthew's project

was titled: Captain Bob Bartlett.

Mr. Speaker, I ask all hon. members to join me in congratulating the

organizers and sponsors of the twelfth annual Avalon Regional Historical Fair,

and to wish Matthew Blundon every success at the nationals.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for the District of Fortune Bay-Cape la

Hune.

SOME HON. MEMBERS: Hear, hear!

MS PERRY: Thank you, Mr. Speaker.

I rise in this hon. House today to recognize the commitment, perseverance and

leadership of the residents of rural Newfoundland and Labrador, in particular

Mr. Boyd Pack and Ms Jennifer Caines, who have demonstrated exemplary leadership

in the development of our Province's aquaculture industry.

At the 2009 annual NAIA conference, Mr. Boyd Pack was named Aquaculturist of

the Year. A pioneer in growing finfish, Mr. Pack has been part of the industry

from day one, for over twenty-five years, and we owe him a lot for the success

we see today.

I would also like to recognize Ms Jennifer Caines, who became the President

of the Newfoundland Aquaculture Industry Association at the same AGM. Along with

her husband Doug, they won the Aquaculturist of the Year Award in 2007, and

they, too, have worked tirelessly for over twenty years to see this industry

become a viable, significant economic generator in rural Newfoundland and

Labrador.

In 2008 production levels reached 11,545 tons, with an export value of $63.1

million. It is expected to increase again this year.

Mr. Speaker, it is people like Mr. Pack, Ms Caines, and others in the Coast

of Bays that are responsible for the introduction and growth of aquaculture in

this great Province. Through their courage, struggles, skills and stamina, we

have a thriving industry today that employs over 500 people in my district

alone.

I ask all members of this hon. House to rise with me and acknowledge the hard

work and remarkable achievements of these fine individuals.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for the District of Placentia & St.

Mary's.

SOME HON. MEMBERS: Hear, hear!

MR. COLLINS: Thank you, Mr. Speaker.

Mr. Speaker, I rise today to pay tribute to a great athlete from St. Mary's

Bay, Harold St. Croix, a native of Point La Haye, who recently accomplished the

ultimate reward in sports. On March 28, Harold was inducted into the

Newfoundland and Labrador Sports Hall of Fame. He had previously been inducted

into the Newfoundland and Labrador Track and Field Hall of Fame in July, 2008.

Harold excelled in the sport of track and field and had his humble beginnings

running as a student of Dunne Memorial Academy, on the beaches and gravel roads

of Point La Haye. He went on to become an elite athlete on the local, provincial

and national levels.

Mr. Speaker, time does not permit me to list all the achievements of this

great athlete; however, the following are some of the highlights of his career:

He was a six-time winner of the Tely 10 Road Race; at the age of seventeen he

broke the forty-eight-year-old record with a time of fifty-three minutes, six

seconds. He is one of only two people who have run the Tely 10 in under fifty

minutes, and the only runner to have won it in three consecutive decades: the

1970s, the 1980s and the 1990s.

Harold was named St. John's Athlete of the Month on three occasions. He

holds the provincial twenty-mile road race record and the provincial

half-marathon record. He won three provincial cross-country championships, the

Atlantic Open Cross-Country Championships in New Brunswick, and was named the

Provincial Track Athlete of the Year in 1977-1978. He competed on a number of

MUN Cross-Country Teams and, as a member of Team Ontario, won a gold medal in

the 1995 Times National Road Race in Ottawa. He has several other high school,

provincial and national awards to his credit and has competed internationally in

several events.

Harold now lives and works in Fort McMurray, but his mother, Rita St. Croix,

still resides in Point La Haye and is very proud of what her son has

accomplished.

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

congratulating Harold St. Croix, the little guy from a little place, on his

induction into the Newfoundland and Labrador Sports Hall of Fame.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Statements by Ministers.

Statements by Ministers

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

SOME HON. MEMBERS: Hear, hear!

MR. ORAM: Thank you, Mr. Speaker.

Mr. Speaker, today, on behalf of my colleague, the Minister of Government

Services, I participated in an event which draws the attention of employers,

employees, the general public and all partners in occupational health and safety

to the importance of preventing injury and illness in the workplace, at home and

in the community.

This afternoon, I was proud to raise the flag declaring this week as North

American Occupational Health and Safety Week, or NAOSH Week. I was joined by the

local

chapter of the Canadian Society of Safety Engineers, along with a number

of companies who are leaders in occupational health and safety.

This year's theme is: Make it Home SafeEvery Day. It reminds us all to

look around our workplaces to see what improvements can be made, so that we make

it home to our loved ones safely every day. It is also important to remember

that good health and safety practices should be used in all aspects of our

lives. Safety is not just for workplaces.

Mr. Speaker, NAOSH Week strives to increase understanding of the benefits of

investment in occupational health and safety and to raise awareness of the role

and contribution of health and safety professionals. It is our hope that by

recognizing NAOSH Week and participating in health and safety initiatives, we

will make further strides in reducing workplace injuries and illness.

NAOSH Week is celebrated every year in Canada, the United States and Mexico

and its success can be attributed to the high regard business, labour and

government have for this week. The Occupational Health and Safety Branch of the

Department of Government Services has always been a proud participant. We will

continue to work hard to do our

part in making workplaces safer.

Mr. Speaker, the local

chapter of the Canadian Society of Safety Engineers

put a lot of effort in planning and promoting NAOSH Week. In addition to the

flag being raised here at the Confederation Building, they have arranged for the

flag to be raised at all trade schools in this Province and some high schools as

well. This group was the pioneer of NAOSH Week, and their recognition of the

benefits of improving attitudes towards safety quickly turned into a need to

recognize this important issue across the rest of North America.

Our safety professionals have shown that they are leaders in spreading the

message about injury and illness prevention in our workplaces, and I

congratulate them on this achievement.

Mr. Speaker, I encourage everyone to do something in their workplace during

NAOSH Week to raise awareness of the importance of health and safety.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for the District of Port de Grave.

MR. BUTLER: Thank you, Mr. Speaker.

I want to thank the minister for an advanced copy of the statement, and to

say that we in the Official Opposition want to join the Canadian Society of

Safety Engineers and all the companies that are involved in health and safety,

congratulations in taking part, again, in the North American Occupational Health

and Safety Week, which was celebrated this week.

Mr. Speaker, from one of the documentations that I saw and I think it was

worded that the National Occupational Health and Safety Week officials say that

we have every reason to celebrate. Not only here in this Province, but

throughout our country, because over the past thirteen years we have experienced

a 75 per cent drop in the number of accidents in the construction industry.

We know that safety is not only with the construction industry, but at home,

in schools and wherever. Here in our Province, we have another program that when

employers do a good job through the PRIME program, that if they meet their

various incentives, then they are eligible for further refunds under the

program.

I guess, Mr. Speaker, we always want to continue to educate the public when

it comes to safety and we encourage government to continue to supporting any

safety measures in our Province.

Thank you, Mr. Speaker.

MR. SPEAKER: The hon. the Member for the District of Signal Hill-Quidi

Vidi.

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

I thank the minister also for the advanced copy of his statement.

Last week, here in the House, we celebrated the Day of Mourning recognizing

how many workers die on a regular basis in the workplace, and today we are

celebrating this week which is an important week, the NAOSH Week. We cannot take

too much time to recognize the needs for occupational health and safety and the

need to make workplaces as safe as possible for our workers in this Province, in

this country and around the world. It is good to know that we join with people

in two other countries today as we celebrate this week.

Statistics from WHSCC indicate that ninety-five working people have died from

occupational disease in our Province since 2002. This is a number that we would

really like to see reduced, and I know that we all do. I am concerned also that

the decline in injuries that we have seen in our Province in reporting from

7,954 in 2007 to 7,394 in 2008 is not necessarily a total reduction of the

actual numbers of accidents. Reporting right now is gone down, but there are

some concerns that it is because of incentives for companies to show a smaller

number of injuries. So we have to be sure that we really do have safer

workplaces.

We have done a lot in our Province to make workplaces safer. We have made

great strides, but we do have a long ways to go, and I am sure that government

will continue to work with the labour force to make sure this happens.

Thank you, Mr. Speaker.

MR. SPEAKER: Further Statements by Ministers?

The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MR. WISEMAN: Thank you, Mr. Speaker.

I rise in this House today to recognize National Mental Health Week 2009,

which officially runs from May 4 to May 10. This year's theme is: Now more

than everinvest in yourself. This theme highlights the impact of the economy

on our mental health, and the importance of investing in things that matter most

during the financial difficult times we are experiencing.

As we all know, countries all around the world are facing economic struggles

and challenges. Here in our Province, the impacts of these difficulties are

ringing true. While we have not been hit to the same level or degree of other

provinces or our neighbours in the United States, we must be mindful of the

impact of financial worries and stress on our mental health and wellness.

According to the Desjardins Financial Security 2008 Health Survey, Canadians

cite finances as their top source of stress more frequently than any other

issue. During Mental Health Week this year, the Canadian Mental Health

Association is reminding Canadians that in times of stress, the support and

caring of loved ones is often the best defence mechanism. And, that investing in

the relationships of family, friends, communities and yourself, provides the

strength and tenacity to handle the hurdles we all face in life.

Our government recognizes the importance of good mental health as a part of

our overall health and well-being. We have made significant progress in

supporting mental health in Newfoundland and Labrador, Mr. Speaker. This year we

are providing some $2 million to further enhance mental health services,

especially for children, adolescents, and persons with chronic and severe mental

illness. Support will also be provided to enable community groups to assist

individuals in improving their mental health. In addition, we are providing some

$500,000 for the planning of a new residential treatment centre for youth with

complex mental health needs.

Mr. Speaker, as well, funding in Budget 2009 brings the provincial government's

additional investment to $17.9 million over the last five years for mental

health and addiction services in our Province.

As we mark Mental Health Week in the House today, I would like to remind

residents of our Province that investment is not only about finances, but it

also spans family, friends, and community, as well as the workplace. I encourage

all residents to visit the Canadian Mental Health Association's Web site:

www.cmha.ca to learn more about managing stress and investing in what really

matters.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

I thank the minister for an advanced copy of his statement.

We want to acknowledge National Mental Health Week as well. Mr. Speaker, we

certainly feel that the federal government needs to do more in streamlining

services and programs for mental health right across the country. In fact, you

only have to go back a few months ago to see the documented stories in The

Globe and Mail that not only affected services in Newfoundland and Labrador

but also in New Brunswick, I think it was, Quebec, Ontario and British Columbia

where they talked about gaps that exist in services right across the country.

Mr. Speaker, this is a week that offers an opportunity for all of us to

promote awareness around mental health and mental health issues. Here in

Newfoundland and Labrador, we have seen firsthand the evidence of a system that

is failing many people who suffer from mental illness and one of those groups

have been the young people in this Province.

Government, while they committed to a treatment facility for youth, we have

not seen what the roll out process will be in terms of when the facility will be

operational, what the accommodation size of it will be, what the programs and

services will look like. Mr. Speaker, the reality is that we have young people

in this Province today who have been hospitalized and institutionalized for

nearly two years and have not been able to rehabilitate themselves back into the

community to be functional young people, and they are losing their youth

MR. SPEAKER: Order, please!

I ask the hon. member to conclude her remarks.

MS JONES: Thank you, Mr. Speaker. I certainly will.

I think this is an opportunity for all of us to be more cognizant of where

the gaps are, the work that is required and needs to be done, and to work

collectively to ensure that it happens.

Thank you, Mr. Speaker.

MR. SPEAKER: The hon. the Member for the District of Signal HillQuidi

Vidi.

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

I, too, thank the minister for the advance copy of his statement. It is

always helpful to have the statements ahead of time.

I am very happy to rise today with him and to acknowledge National Mental

Health Week

2009. I remember that two years ago we here in this House passed the new

Mental Health Act. I think it was an extremely good piece of work, that Mental

Health Act that was presented to this House. I remember that we made some

changes in it to reflect what people dealing with mental health, the issue of

mental health, wanted to see in the act, and one of the important changes was

making sure that the act said that the community treatment plan that is an

essential part of the act needed to include medical and other supports,

including income and housing required for the person to live in the community.

I would like to point out, Mr. Speaker, that there are many people who are in

the community, and in good communities in the community, but who are not

receiving what was promised to them by the legislation. A person on a disability

assistance right now - and mental illness is a disability - receives $374 every

two weeks. That money is supposed to take care of the housing needs of that

person, and all the needs of that person.

My experience, Mr. Speaker, is that people have to have the support of their

families in order to live on that. Adults who are living out in the community

cannot live on their own without support of families, so I ask this government

to look at the legislation that we pass and to make sure that we really are

concretely helping people live in the communities.

Thank you, Mr. Speaker.

MR. SPEAKER: Further statements by ministers.

Oral Questions.

Oral Questions

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

MS JONES: Thank you, Mr. Speaker.

In the weekend Telegram there was a full-page ad from the President of the

Canadian Federation of Nurses' Unions and the presidents of other provincial

nursing associations across Canada. They all agreed that the market adjustment

and extended earnings loss clauses proposed by the government opposite are

unheard of in other nursing union contracts.

I ask the Premier: With such widespread condemnation of these two clauses,

why are you unwilling to remove them from the negotiating table?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER WILLIAMS: Mr. Speaker, both myself and the Minister of Finance

have stated time and time again as to exactly what we have done for nurses. They

wanted an increase in their wages and we gave them a significant increase in

their wages which, on the template alone, is 21.5 per cent. They then wanted to

deal with recruitment and we dealt with recruitment. For first-year nurses now

it is over 30 per cent for the raise there. They wanted retention dealt with,

and we dealt with retention as well, so now the senior nurses, of course, are

going to be the highest paid east of Ontario. They asked for something to be

done with standby fees and we dealt with that. We have now made them, as well,

the second-highest if not the highest east of Ontario. Shift differential, we

did the same thing. We cannot do any more.

The sad thing now is it looks like we are definitely going to a strike, if

that strike vote gets a majority, and we are going to find that if these nurses

are out for a month then, in fact, they are going to actually lose the 8 per

cent that we have given them in the first year of the template, which is really

an unfortunate circumstance.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

It is certainly recognized that there has been a lot of headway made, both by

government and by the union, in terms of trying to sort out a negotiation.

Mr. Speaker, the national nursing representatives are charging that this

government wants the power, through the clause of market adjustment, to

negotiate individually and not collectively. Obviously, a huge union concern.

I ask the government today, and I ask the Premier: Why would government want

the power to be able to do that?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER WILLIAMS: Mr. Speaker, collective bargaining is a process of

trying to reach a reasonable agreement which is fair to both sides. We commenced

negotiations with the nurses first out of the gate, I think it was in January of

last year, and negotiated for three months to no avail. We broke off. We asked

them to come back to the table last June and they said no, that their

negotiators were on holidays, and we tried again.

It is obvious that there is a national agenda here. It has become quite

obvious to us right from the start that the national union is driving this. The

whole intention of this is that they go to strike and, in fact, the Newfoundland

and Labrador nurses will be punished for the benefit of the National Federation

of Nurses right across the nation so that we can be taken into court and they

can try and make a test case of the Newfoundland and Labrador situation.

That is what this is all about. We said it was a national initiative right

from the start. We said there was going to be a strike right from the start, and

the fact that we have stepped up and made our nurses the highest paid, or the

second-best paid east of Ontario does not make any difference.

Ms Forward and her national counterparts have an agenda and they are going to

see through it on the backs of the nurses of Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Mr. Speaker, the market adjustment and the extended earnings

lost clauses do no not save the government money - they admitted that last week

- and it is simply policy decisions.

I have to ask government today, and ask the Premier: Are these two policy

decisions worth so much to government, that you get those concessions now, that

you are willing to push this into a strike and cause further damage in our

health care system in Newfoundland and Labrador?

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

Board.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Thank you, Mr. Speaker.

Mr. Speaker, for the information of the Opposition Leader, market adjustments

are used throughout this country. They are used in every province. In fact, it

is what we have to do now to try to be competitive in recruiting and retaining

nurses. In fact, Mr. Speaker, we have had in this particular Province health

boards which are, in effect, competing with each other; so what we want to be

able to do is to bring all of this under one roof, under Treasury Board, set a

policy, and apply that policy so that it works towards what we have been told

from day one is the nurses' number one issue, which is recruitment and

retention.

As for policy decisions, let me put it to you this way: Other unions had a

problem with this market adjustment; however, Mr. Speaker, 30,000 public sector

employees have signed off on these conditions.

Now, we have gone outside the template with our wages so how far do you go, I

say to the people of Newfoundland and Labrador? We are doing everything we can

to avoid a strike, Mr. Speaker. As the Premier said, there appears to be a

different agenda at play.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

The reality is, the fact that 30,000 other people have signed on to it does

not make it a good enough rationale that we could practically see our health

care system in this Province closed down as a result of a strike.

I ask the minister again today: Will government not go to binding arbitration

on two issues that are not monetary in nature but are strictly policy, to get an

independent ruling so that this can get settled once and for all?

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

Board.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Mr. Speaker, the Premier indicated last week that we would

not be going to binding arbitration and I can indicate again today the answer is

no.

What we have is a situation where we have bargained in good faith. We have

done everything that the nurses asked us to do. Our number one concern is the

patients of this Province. We were criticized for not going outside the

template, the 21.5 per cent. We did that. We have increased significantly the

shift differential and standby rates. We have made our nurses the highest paid

east of Ontario, and the newer nurses the second-highest paid, so we have given

everything that they have looked for. Mr. Speaker, we have not gotten anything

back.

Unfortunately, we are at a standstill. It is in the nurses' hands right now

and they will make a decision as to whether or not they go to strike.

Again, as the Premier has indicated, it is unfortunate, Mr. Speaker, that the

nurses, if they are out for four weeks

MR. SPEAKER: Order, please!

The hon. the Leader of the Opposition.

SOME HON. MEMBERS: Hear, hear!

MS JONES: Thank you, Mr. Speaker.

Many provinces, including P.E.I. and New Brunswick, have made legislative

changes to allow pharmacists to manage medications without actually writing

prescriptions. It is often referred to as continuous care. This includes the

ability to cover situations like providing a few pills to a patient until they

can get a prescription filled by a doctor. This service has been provided by

pharmacists in our Province for a number of years. However, the legislation that

governs it has not been kept up and does not reflect the realities of how the

service is conducted today.

I ask the minister: When will we see changes to the pharmacy act and some

updates to allow for continuous care by pharmacists in Newfoundland and

Labrador?

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

SOME HON. MEMBERS: Hear, hear!

MR. WISEMAN: Mr. Speaker, in Newfoundland and Labrador we have made a

number of enhancements to our Prescription Drug Program. We have made some

enhancements to the contract that we have with the Pharmacy Association. In

fact, in this sitting of the Legislature we will be making some further

amendments to the legislation that will permit pharmacists to fill prescriptions

written by physicians from out of the Province.

The process of enhancing, the process of improving and providing better

quality care is an evolving process, Mr. Speaker. We have made some enhancements

in the past; we have some more coming in this session. We have a regular

dialogue with the Pharmacy Association and when it is appropriate, we will make

further enhancements to improve the quality of care to the people of

Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

The minister knows that the auditing process that is now in place for

pharmacists has been there for a long time and that there are a number of

concerns that are being expressed with that. Government legislation does not

allow, right now, for any kind of professional discretion to be used when it

comes to these pharmacists dispensing medications or drugs.

I ask the minister: In the meantime, will he commit to putting in place an

improved interim auditing process until some new legislative changes can be

made?

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

SOME HON. MEMBERS: Hear, hear!

MR. WISEMAN: Mr. Speaker, audits are kind of a sensitive issue. Any time,

whether you are audited by Revenue Canada or whether you are audited by any

taxation body or whether you are audited by a regulatory body, there is always

going to be, I say, Mr. Speaker, some degree of tension, sometimes healthy

tension, some more times it is conflict between a regulatory body and an

auditing body. Any time someone is subject to an audit when they have to either

repay money or to change a practice of doing business there is always going to

be differences of opinion, and the auditing of the Prescription Drug Program or

the auditing of our MCP program are such programs or such auditing mechanisms.

So I say, Mr. Speaker, by virtue of the nature of how audits are conducted there

is always going to be a difference of opinion between those being audited and

those who are doing the audits.

This coming Friday, we are meeting with the Pharmacy Association to discuss

the auditing process and some of the issues that they want to raise with us. So

audits are one of these things that there is always going to be questions and

concerns about, but we will work with the association to ensure that it works

beneficial for both parties.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

But what they are asking for is very fair. They are asking for some

discretion in the process so that when there is an order broken, or a

prescription order broken, that they are not laden with huge fines. They are one

of the few places in the country that has to follow this kind of an auditing

process without any discretion, Mr. Speaker.

I think, minister, I would ask you again today: In light of your meeting that

is coming up, is it possible that you could have a look at this to see if there

is a way that the process could be altered in the absence of any changes that

are not coming forward to the legislation?

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

SOME HON. MEMBERS: Hear, hear!

MR. WISEMAN: Mr. Speaker, I want to correct something. In the member's

preamble she said there are fines, and I want to point out, the audit process

does not impose a fine. The audit process is around where because

pharmacists get paid automatically for the prescriptions that they fill. So the

auditing process is a review of what has taken place, after the fact.

So therefore, if there was a prescription filled inappropriately, there is a

recovery of money that has already been paid out, and that is very different

than imposing a fine. So I want to clarify that particular point, because the

member opposite would have us believe that this is a very punitive process, and

if you did something wrong we are going to levy a penalty or a fine upon you.

Fundamentally, this is a process where if an audit discovers something that

is inappropriate, it is a recovery of money that has already been paid out by

government to someone that should not have necessarily received it. So that is

the process, I say, Mr. Speaker.

The mere fact that I am meeting with members of the Pharmacy Association on

Friday

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MR. WISEMAN: Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Mr. Speaker, in January 2008, government announced changes to

its provincial drug formulary so that the Province would only accept prices for

generic drugs that do not exceed the lowest price in any province. There was a

lot of concern raised at that time by the Pharmacy Association and government

agreed to delay the changes until the completion of an independent review. That

review was completed more than six months ago.

I ask the minister today: Can he update the pharmacists and the people of the

Province on what generic drug formulary government is considering and when we

will see these changes in effect?

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

SOME HON. MEMBERS: Hear, hear!

MR. WISEMAN: Mr. Speaker, I really hate doing this, but if the member

opposite does not get better researchers, I am going to have to always correct

her.

Number one, I did not say we were going to do an independent audit. The

Pharmacy Association did an independent audit themselves. What I had indicated

was we would defer the implementation of the legislation until we had worked

through an appropriate mechanism to have a pricing regime that was fair for

generic drugs. We have still done that. We still have not enacted that

legislation, because we still have not worked through a process that will see us

having a fair and equitable pricing mechanism in this Province for generic

drugs, one that is consistent with the spirit of the legislation but also one

that is fair to the residents of Newfoundland and Labrador and fair to the

pharmacists who provide the service to the people of Newfoundland and Labrador.

Until we are finished that process - in consultation, I might add, with the

pharmacy association - we will not be making any changes to our current pricing

regime.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

If the minister was listening, he would know I did not say government did the

review. I said it was an independent review and it was asked for by the pharmacy

association.

Mr. Speaker, the pending regulation changes will mean significant savings to

government, and it will also mean that government will pay a much lower price

for generic drugs; however, it will also mean a loss of revenue to pharmacists.

I ask the minister today: What would be those projected savings to

government, if you were to implement that formula, and what would be your plan

to offset the loss of revenue that would occur to pharmacists in the Province?

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

SOME HON. MEMBERS: Hear, hear!

MR. WISEMAN: Mr. Speaker, I want to refer the member to my previous

answer because there is a linkage here. I said earlier, in the second question

she posed, is that we are not going to be implementing the changes that are

proposed in the legislation, or enacting the legislation, until we have been

able to work through an appropriate pricing regime.

So, to answer your question about how much money we will save, or how much

money it will cost pharmacists, or what we will do to offset some of those

costs, that is something that when we announce what it is we are doing we will

be able to announce exactly what they will mean.

Until we have done the analysis, have worked through the process with the

pharmacy association - because we will work through a process with them - and

when we enact the legislation, then we will be able to inform the House the

impact of the implementation of that legislation at that moment in time based on

the national pricing for generic drugs.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

The minister must, at this stage, have some idea of what the cost savings

would be to government to move in this particular formulary method, and I ask

him if he could provide that information to the House.

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

SOME HON. MEMBERS: Hear, hear!

MR. WISEMAN: Mr. Speaker, this is a fairly significant calculation the

member opposite is asking. In fact, this is an issue that is not just unique to

Newfoundland and Labrador. Every province in the country is facing a similar

circumstance. In fact, a couple of weeks back, in meetings with my colleagues

from the rest of Atlantic Canada - because they are facing the same

circumstance. They have the exact same set of circumstances before them as we do

here in this Province. As a result of those discussions we have agreed to work

collectively to have that kind of financial analysis done for Atlantic Canada.

Maybe working together, the four Atlantic Provinces may be able to come up with

a pricing regime that would benefit all Atlantic Canadians.

The analysis that she is asking for, and the exact figure that she is asking

for, is one that is not easy to answer, because there are many variables in that

calculation and we need to better understand it ourselves before we implement

it. That is why we have now extended our research and involvement with three

other Atlantic Provinces to ensure that we are all best served by what we do.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

This is a national policy and, as the minister knows, eventually we will have

to fall under that regime within Newfoundland and Labrador.

I ask him today: Has he done any kind of analysis around what the value-added

services are that pharmacists provide; and, if we were to move in this

direction, how much that annual investment would be from government to

pharmacies in the Province in order to maintain the appropriate levels of

service?

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

SOME HON. MEMBERS: Hear, hear!

MR. WISEMAN: I do not know how many times I can say this. If you are

asking for a cost of something, and you are asking now: What is the cost of the

services and the value of the services provided by pharmacists that we would

actually have to contribute, should we implement it? That is a pretty broad

question.

Depending on the kind of services we are prepared to pay for, depending on

what we pay for, that will determine some costs. Depending on the negotiations

we have with the pharmacy association - because the member opposite would also

recognize and would be fully aware that there is a contractual arrangement

between the Province of Newfoundland and Labrador and the pharmacy association

on a

schedule of fees that we pay for services, and what those services will be.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MR. WISEMAN: Mr. Speaker, the outcome of these sorts of things comes

about as a result of negotiation between ourselves as a government and the

pharmacy association representing pharmacists in this Province.

When we have done that, I will tell the member opposite.

MR. SPEAKER: Order, please!

The hon. the Leader of the Opposition.

SOME HON. MEMBERS: Hear, hear!

MS JONES: Thank you, Mr. Speaker.

In November 2008 the Premier travelled to Brazil to meet with the mining

giant CVRD, the owners of Vale Inco and Voisey's Bay, to discuss, among other

things, the possibility of establishing an aluminum smelter in the Province.

The Premier said at that time that discussions on the issue of aluminum

smelters were also underway with other companies as well. Around the same time a

local economist, known to do work for government in the Province, reported that

he was very sure that an announcement was due any day.

My question today is: Can the Premier give us an update in the House as to

the status of an aluminum smelter for Labrador, or has the recent decline in

aluminum prices in the world market and the decline for service now caused

government to cancel or scrap all plans for aluminum smelters?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER WILLIAMS: As the hon. member opposite is aware, a smelter has

been a very, very important piece of possible development for Labrador adjacency

with regard to the Lower Churchill. It is very, very important that we have a

possible development for Labrador.

When we made the trip to Brazil, because of the nature of the business that

Vale Inco are in, we discussed with them because, besides being top iron ore

producers and nickel producers in the world they are significant aluminum

producers, so a discussion was commenced there about the possibility of an

aluminum smelter in Labrador. Other discussions have been held with companies

lie Rio Tinto and others.

It is all part of the Lower Churchill discussion and negotiation that power

would come from the Lower Churchill Development. Those discussions are still

being encouraged. Some drop on us, some fall off, some come on, but there is

certainly no intense negotiation going on now, but it is considered to be a

significant option of the future as commodity prices improve.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: I would like to ask the Premier as well: Has government,

through Nalcor, completed any feasibility studies on the perspective aluminum

smelters for the Province, and what were the results of these studies?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER WILLIAMS: I personally am not aware of any feasibility studies

that have been done, however I can certainly give the hon. member opposite the

assurance that Nalcor and the officials at Nalcor and Newfoundland and Labrador

Hydro would certainly have looked into the possibility of feasibility. Now,

whether there is, in fact, a formal study undertaken that has been completed, I

am not aware of that. I can certainly undertake to find out if there is, in

fact, a study that has been completed.

I can tell you, that they would not even be entering into discussions unless

they had some advanced form of knowledge and understanding of what the possible

economic consequences were.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: It was recently reported that briefing papers for the federal

Minister of Natural Resources mentioned that Rio Tinto was promoting an aluminum

smelter project for this Province as well. The project was expected to enter the

federal regulatory review system within six months of October 2008. That means

the smelter should have been submitted for review by now, but we see no public

announcements on that issue.

I ask the Premier if he can advise the House today as to the status of that

project.

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER WILLIAMS: I can't give you a formal answer. I would be

guessing, quite frankly. I can tell you, to my knowledge right now - and again

that can be checked with officials of Nalcor. As you are aware the minister is

at the conference at Houston right now. I am not aware of any formal submission

being made on any smelter, nor do I think there would be one being made.

As I have said, the smelter is a part of several options which are available

for the Lower Churchill. We, as a government, and Nalcor and Newfoundland Hydro,

are trying to keep all options open to make sure that we can obtain the best

possible deal or the best possible alternative creating the most benefits and

employment for Newfoundlanders and Labradorians, and as the hon. member opposite

is aware, and our members in Labrador are aware, particularly for Labradorians.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for the District of Port de Grave.

MR. BUTLER: Thank you, Mr. Speaker.

Last week I asked the Minister of Environment and Conservation to update this

House on the action her department is taking to curtail the decline of the

Woodland Caribou in Newfoundland and Labrador. The minister stated according to

Hansard, that extensive consultation had taken place with the outfitters. Mr.

Speaker, according to our information there has been no consultation with the

outfitters. Since government announced its caribou plan, the population of

caribou has dropped by 5,000 from 37,000 down to 32,000 and there are only 1,235

licences issued, so clearly stating the hunters are not the main problem.

I ask the minister: How low do the caribou numbers have to go before your

government will take action?

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The hon. the Minister of Tourism, Culture and Recreation.

SOME HON. MEMBERS: Hear, hear!

MR. JACKMAN: Thank you, Mr. Speaker.

Mr. Speaker, one thing that can be assured, there have been discussions

ongoing with the outfitters. Let that go to rest.

Mr. Speaker, we are in the process right now of compiling the final data and

information to bring forward a plan for this year. Mr. Speaker, one thing about

it, a $15 million commitment is no loose change.

SOME HON. MEMBERS: Hear, hear!

MR. JACKMAN: We are very serious about correcting and remedying, to the

extent that we can, the decline in our caribou population.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for the District of Port de Grave.

MR. BUTLER: Mr. Speaker, I agree with the minister, that $15 million is

no loose change but I can assure you, when your five year study is done you are

going to get the same results that you have had in 2003,2004,2005,2006,2007.

I ask the minister, outfitters believe caribou will be placed as an

endangered species list well before your $15 million is spent. You have to

intervene with the predators, Mr. Minister. When will your government take

action?

MR. SPEAKER: The hon. the Minister of Tourism, Culture and Recreation.

SOME HON. MEMBERS: Hear, hear!

MR. JACKMAN: Mr. Speaker, I can honestly say that we certainly do not

think the situation is hopeless or we would not be investing the money that we

are.

Secondly, that any plan that we bring forward is going to be based on

science. This is not going to be something that is going to be just a simple

measure where you decide that you are going to go out and kill animals. There is

much more to it than that. We are conducting our science and there will be an

intervention strategy, and when that is developed to the extent that we need to,

we will submit that the hon. member and all the people of the Province, Mr.

Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for the District of Port de Grave.

MR. BUTLER: Mr. Speaker, the minister just stated that they are not going

out and killing the animals. So much for the predators, but I guess he is not

too concerned about the caribou.

Mr. Speaker, the outfitters were promised fourteen months ago that there

would be a committee put in place so that they could sit down and consult with

government. To date, no such committee has been put in place.

The outfitters and environmentalists also suggest that when caribou

populations drastically decline it is a sure sign that the forest they inhabit

if not fairing as well.

I ask the minister: Your department plans at looking at the issue of health

of the caribou habitat, our forests, some time in the future, why is this not a

focus of the strategy today?

MR. SPEAKER: The hon. the Minister of Tourism, Culture and Recreation.

SOME HON. MEMBERS: Hear, hear!

MR. JACKMAN: Mr. Speaker, I did not say that we would not be tackling and

taking out some predators. That is all to be determined at this particular

point, but I can tell you that under this study everything from forest

management, to habitat, to food supply, to predators, all are being taken under

consideration.

Mr. Speaker, with regard to the advisory committee, we certainly hope to have

that committee all announced, probably within the next couple of weeks.

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.

Mr. Speaker, last Thursday the Premier promised that any cheque passed over

to AbitibiBowater in compensation for the assets expropriated by government will

have to take into consideration severance for workers. Mr. Speaker, there are

119 workers aged fifty-nine to sixty-four who did not receive their workforce

reduction programs cheque this morning due to AbitibiBowater cutting off their

payments. Mr. Speaker, the workforce reduction program was a plan worked out

with AbitibiBowater in an effort to take older workers out of the workforce and

allow younger people to remain.

Mr. Speaker, I ask the Premier: Will he extend to the 119 loggers that had

this agreement with AbitibiBowater the same commitment he made regarding

severances?

MR. SPEAKER: The hon. the Minister of Innovation, Trade and Rural

Development.

SOME HON. MEMBERS: Hear, hear!

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

Mr. Speaker, as all members in this House know, the agreement with the

workforce reduction program was three parties. It included the company, it

included the union, and it included Service Canada. There were particular

arrangements made that allowed some of the older workers to leave and allowed

younger workers to stay. There was, as the hon. member has indicated, a payment

made to those workers. The company now is in creditor protection, as we

understand. They have made a decision to take those payments and stop making

them. The union, as I understand it, is intervening on behalf of their

employees, former employees and their pensioners, to ensure that those payments

might be reinstated.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for the District of Signal Hill-Quidi

Vidi.

MS MICHAEL: Thank you, Mr. Speaker.

I say to the Premier, that the reasons for the severance being stopped are

the same reasons why the payments are not being made, and that is the bankruptcy

protection.

So I ask again: Will the Premier make the same commitment to the loggers that

was made to those who were getting severances?

MR. SPEAKER: The hon. the Minister of Innovation, Trade and Rural

Development.

SOME HON. MEMBERS: Hear, hear!

MR. SKINNER: Mr. Speaker, I can only reiterate again, that the decisions

that have been made by Abitibi are going to be, as I understand it, challenged

by the union. There was some reference made from the opposite side that there

was a decision today from the court that addressed that. That is not accurate.

The decision made today from the Quebec court is different than the one that

the hon. member is referring to. As I have said many times in this House, the

court process and all the other processes that are in place need to be followed

and we need to see what the outcome of those court decisions will be before

government decides whether or not any involvement is required of government.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for the District of Signal Hill-Quidi

Vidi.

MS MICHAEL: Thank you, Mr. Speaker.

I do not think I made any reference to the court ruling. Anyway, my next

question.

There are also forty-four seniors, thirty-one of which are widows, who also

received letters last week informing them that their special retirement

allowance will be cut off.

Is the Premier ready to extend his commitment to these forty-four seniors?

MR. SPEAKER: The hon. the Minister of Innovation, Trade and Rural

Development.

SOME HON. MEMBERS: Hear, hear!

MR. SKINNER: Mr. Speaker, again, I can only say to you that the

retirement allowances, the workforce reduction program, these were special

arrangements that were negotiated by the company, by the union, with her

workers, and in some cases involved a third party, such as Service Canada.

The company has arbitrarily made a decision not to continue with those

payments, and as I have indicated already, it is my understanding as

recently as a couple of hours ago when I spoke to members of the union - that

the union will be using the court process that is available to them to petition

on behalf of the people whose payments have been stopped.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The time allotted for questions and answers have expired.

Presenting Reports by Standing and Select Committees.

Tabling of Documents.

Notices of Motion.

Notices of Motion

MR. SPEAKER: The hon. the Minister of Innovation, Trade and Rural

Development.

MR. SKINNER: Thank you, Mr. Speaker.

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

entitled,

An Act To Amend The Research And Development Council Act. (Bill 20)

MR. SPEAKER: Further notices of motion.

The hon. the Minister of Business.

MR. ORAM: Thank you, Mr. Speaker.

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

An Act

Respecting The Registration Of Deeds And Other Documents. (Bill 21)

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

Act To Amend The Occupational Health And Safety Act. (Bill 23)

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

An Act

Respecting Consumer Protection And Business Practices. (Bill 22)

MR. SPEAKER: Further notices of motion.

The hon. the Member for the District of Exploits.

MR. FORSEY: Thank you, Mr. Speaker.

I rise today to move the following private member's resolution:

WHEREAS Newfoundland and Labrador have the lowest share of federal government

executive positions than our share of the national population; and

WHEREAS executive employees have a high level of input into national policy

and decision- making that significantly affects Newfoundland and Labrador; and

WHEREAS the number of federal executive positions in Newfoundland and

Labrador has been well below 1 per cent of the total number of positions in

Canada and these positions have declined since 1997; and

WHEREAS during the 2006 federal election campaign the leader of the federal

Conservative Party said: I think the secret will be to identify particular

functions and operations that should be here, as opposed to putting a few jobs

here and a few jobs there. There should be some specific things that are

headquartered here; and

WHEREAS the leader of the federal Liberal Party, prior to the 2008 federal

election, committed to advocate ways to be more effective in putting the

headquarters and the decision-making process closer to where the resources are;

and

WHEREAS the leader of the federal New Democratic Party shared this concern

and committed to reviewing federal government policies that have resulted in

this situation with a view to ensure fairness and full access to federal

government program delivery and services;

BE IT RESOLVED that the House of Assembly calls on the current Government of

Canada and any other national party, if it is elected to form the government, to

increase the number of federal decision-making executive positions and/or

national or regional headquarters based in Newfoundland and Labrador.

That is seconded by my colleague, the Member for Baie Verte-Springdale.

Thank you.

MR. SPEAKER: Further notices of motion.

Answers to Questions for which Notice has been Given.

Petitions.

Petitions

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

MR. KELVIN PARSONS: Thank you, Mr. Speaker.

I rise today to make a petition on behalf of the residents of Southwestern

Newfoundland, particularly those areas from Grand Bruit, LaPoile, Rose Blanche,

Burnt Islands, Isle aux Morts, Margaree, Port aux Basques, Cape Ray, the Codroy

Valley, and that is with respect to the issue of dialysis and the need for a

satellite dialysis facility at Port aux Basques.

We have a varying number of people in our area who, over the years, need

dialysis. Sometimes it is down as low as four and five; other times it is up

over twelve and fourteen. We average around nine or ten at any given time. Of

course, in order to access it right now they have to travel. Some go to

Stephenville for some treatment; some go to Corner Brook. In any case they have

to travel. If you go to Stephenville, a round trip anywhere from that area - and

they do it three times a week - runs you about a minimum of 350-400 kilometres

per trip.

Besides the cost of that, of course, there is the anguish and stress that it

causes on the patients themselves and their families. They get transported in

three times a week, and that is arduous enough as it is, let alone dealing with

the debilitating effects of the treatments.

Now, they have been trying for some years. We got the ear of the minister

last year in Corner Brook. We did not get his pen, or we did not get his

promise. He did not write the letter explaining to us where it stood. We are

still waiting for that, some six or seven months later, and nobody has heard

from his since that. We certainly have had no commitment. Western Health, of

course, cannot move and do anything without some commitment from the department.

We see them popping up all over the place. We see them going to St. Anthony,

we see them going to Marystown, we see them going to Carbonear; but, of course,

you do not see them where you have 10,000 or 15,000 people on the Southwest

Coast, and that is where the need exists as well. Notwithstanding that we have

been complaining for years now that we need this.

It has led to, in some cases, people actually having to move, and move their

families, because they could not afford it any more. They just financially could

not afford it and they could not emotionally afford it, because of the stress

that it took upon them in order to do this.

Again, I call upon the minister. We have already given an undertaking from

that area that we, the residents of that area, would pay the cost of any

equipment associated with that. We would do the necessary fundraising. We

already have funds raised that could be used for that.

With regard to the personnel needed to operate the facilities, we have

nurses. I understand it takes about a six-week course. I checked with one of the

senior nurses at Port aux Basques, who has been there for thirty years or so,

and she tells me that it would take about a six-week course to train a nurse to

be able to administer the dialysis machine. Now, I do not understand it. If you

have nurses who are prepared to undertake the training, several of them, and if

you have the money available to buy the equipment, I do not know why the

Department of Health would be so upset.

I notice Labrador has a similar need. We do not hear their member up speaking

about it. I do not know, maybe he is not allowed to speak about it, but this

member is certainly allowed to speak about it and intends to speak about it

because it is a need for the area, and I will continue to speak about it until

such time as we get some action.

Again, I do not understand the logic of an area that has the need, is

prepared to buy the equipment themselves, the nurses are prepared to undergo the

six-week training to do it, and yet this department will not permit it. Now,

there is something missing in that logic.

The equipment is the most important part; it costs hundreds of thousands of

dollars. We will raise the money. We made no qualms about it; we will raise the

money. We put hundreds of thousands of dollars into the Western health care

system in the past ten years for other needs, no matter what they were. We

always do our share. We will buy the equipment, I say to the minister and I say

to this government. We have the personnel who are prepared to train. Why can't

this happen and stop the anguish that it is causing the people, the patients and

the families on the Southwest Coast of this Province?

Thank you, Mr. Speaker.

MR. SPEAKER: Further petitions.

The hon. the Member for the District of Port de Grave.

MR. BUTLER: Thank you, Mr. Speaker.

I stand today to present another petition on behalf of the residents with

reference to a fixed link from Long Island to Pilley's Island in Green Bay.

The petition is from the people of Pilley's Island, Long Island, and all areas

in between, and different communities in that surrounding area.

MR. TAYLOR: (Inaudible).

MR. BUTLER: What we are looking for is a causeway, I say to the minister.

Mr. Speaker, the people in that area have some major concerns. When it comes

to the transportation, they know that they have been blessed with a good ferry

service, I guess, for twenty-six years, that gave them service. In their

petition they are saying at the present time that they are looking forward to a

replacement ferry or a fixed link. They contend that from the feasibility

studies that have been done, and the information that they have obtained, that

the most feasible way would be a causeway.

Some of the issues that they raise in relation to their petition, and the

calls and the concerns that we get, are in regard many times to the emergency

medical side of it. What they are saying is the time that would have lapsed from

getting to a doctor or to a hospital when it comes to the present ferry service,

or the ferry service that they had over the years, versus what a causeway would

be. They also mentioned concerns that their students experience travelling to

school and getting from the island. The same thing, Mr. Speaker, they believe

that the causeway is the best route to go. It has also been brought to our

attention, and we have mentioned this before, the transportation of the fish

products from the plant there. There have been issues from time to time with

regard to that.

I know correspondence has been sent to the Member for the Grand FallsWindsorGreen

Bay South area and I know he has been trying his best on their behalf; however,

we receive petitions. We know that back in 2003 those residents were told that

there would be a causeway built, there would be a Long Island causeway, and then

after they were told by a former minister that this would be placed on hold for

a while. It would be deferred until the finances became more stable here in our

Province.

Mr. Speaker, on behalf of the residents I present this petition with regards

to asking government to consider immediately to take measures to construct a

fixed link between Long Island and Pelley's Island in Green Bay.

Thank you, Mr. Speaker.

MR. SPEAKER: Further petitions?

The hon. the Member for the District of Burgeo & LaPoile.

MR. KELVIN PARSONS: Thank you, Mr. Speaker.

I appreciate the opportunity to present this petition on behalf of the

residents of Ramea, Grey River and Franois, and that concerns the lack of

health care facilities or services being offered in those communities.

The clinic is set up in Ramea; they do weekly coastal visits to Grey River

and to Franois. The problem is, the facility calls for two nurse practitioners

and they currently, and for several months now, have only had one. Western

Health has been trying to recruit but they have been unable to do so. They have

tried to supplement with LPNs; they have tried to have the nurses from Burgeo

come across to shore things up in the short term but that does not allow, for

example, for weekend coverage.

If something happens in Ramea on a weekend, or Grey River or Franois, game

over in terms of getting any kind of medical treatment. There is nobody there to

look after you. Now that is just unacceptable. The reason, of course, is the

only person you do have is currently working five days a week, twenty-four hours

a day on call and when the weekends come, or at least two days per week, she

needs a break and it is just not healthy for her to be trying to cover off on a

twenty-four-seven basis all year round.

The problem we have here, and this has been brought to the attention again of

Western Health and they are trying their best but they cannot get past the first

base with the minister's office that makes the policy pieces. We hear a lot of

talk about retention and recruitment of nurses, and one of the problems

vis--vis this clinic is it currently says that if you are prepared to go to

Ramea, for example, as a nurse practitioner, they will give you a recruitment

bonus of a certain number of dollars provided you are a new graduate or provided

you are from outside the Province.

Now that is pretty limiting. What we are saying is there are nurse

practitioners potentially in this Province who would be prepared to go there. So

why should the recruitment bonus and these cases of rural Newfoundland where it

is difficult enough to recruit, why should that caveat be placed upon that

recruitment bonus and those benefits? They should be allowed, we suggest, it

makes common sense, if you cannot get them there without the recruitment bonus

anyway, why would you restrict the benefits of the recruitment bonus by

restricting it to new graduates and to people from outside this Province?

There may well be someone here who is retired in one area of the Province but

would be prepared to go, even on an ad hoc basis, a certain number of months a

year to fill in, in places like Ramea and other communities in this Province.

Yet, they cannot do it because the government in its insistence upon seeing that

what happens to one happens to all, that it is just not going to happen. We have

to realize that not every community is the same, not every community has the

same needs. So therefore, you have to - what is it they say, cut the cloth to

fit the garment. That is what we have here. You have to make your policy be

adaptable so that if it does not work for certain reasons, and those reasons are

pointed out to you, that you change it so that it can fit and can work.

So again, I was there this past weekend, and they had in the case of this

weekend, they had about 150 people from outside who happened to be in there for

a convention. Now, it so happened, we anticipated this, and in advance we were

able to get Burgeo to backstop because there were numbers of people in the town,

but you should not only always be dependent upon Burgeo to send a nurse over

because you are going to have an event in your community. Normal, permanent

residents should not always be contingent upon somebody coming from Burgeo to

look after them. Again, I suggest that it can be done quite easily by changing

the recruitment bonus. That is one of the tools that can be used by this

government to accomplish that.

I appreciate the opportunity to bring this forward, Mr. Speaker, on behalf of

those residents.

Thank you.

MR. SPEAKER: Further petitions?

Orders of the Day.

Orders of the Day

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

MS BURKE: Thank you, Mr. Speaker.

I would like to call Order 2, third reading of a Bill,

An Act To Consolidate

The Law Respecting Revenue Administration. (Bill 4)

MR. SPEAKER: It is moved and seconded that Bill 4 be now read a third

time.

Is it the pleasure of the House to adopt the motion that Bill 4 be now read a

third time?

All those in favour, 'aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, 'nay'.

The motion is carried.

CLERK: A bill,

An Act To Consolidate The Law Respecting Revenue

Administration. (Bill 4)

MR. SPEAKER: Bill 4 has 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 Consolidate The Law Respecting Revenue

Administration," read a third time, ordered passed and its title be as on

the Order Paper. (Bill 4)

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

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

Resources, Labour and Employment, that Bill 7,

An Act To Amend The Workplace

Health, Safety and Compensation Act be now read a third time. (Bill 7)

MR. SPEAKER: Is it the pleasure of the House to adopt the motion that

Bill 7,

An Act To Amend The Workplace Health, Safety and Compensation Act, be

now read a third time.

All those in favour, 'aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, 'nay'.

The motion is carried.

CLERK: A bill, "An Act To Amend The Workplace Health, Safety And

Compensation Act," Bill 7.

MR. SPEAKER: Bill 7 has now been read a third time, and it is ordered

that the bill do pass and its title be as on the Order Paper.

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

Compensation Act," read a third time, ordered passed and its title be as on

the Order Paper. (Bill 7)

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

MS BURKE: Mr. Speaker, I would like to call Order 6, Second Reading of a

bill,

An Act To Repeal The Labrador Transportation Initiative Fund Act, Bill 5.

MR. SPEAKER: It is moved and seconded that Bill 5,

An Act To Repeal The

Labrador Transportation Initiative Fund Act, be now read a second time.

Motion, second reading of a bill, "An Act To Repeal The Labrador

Transportation Initiative Fund Act." (Bill 5)

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

Board.

MR. KENNEDY: Thank you, Mr. Speaker.

I rise in this House today to rescind Bill 5, the Labrador Transportation

Initiative Fund Act.

Mr. Speaker, while I am speaking I would like to give some background as to

this piece of legislation for the benefit of hon. members who were not here at

the time it was established.

In March 1997, Mr. Speaker, the federal and provincial governments agreed

that the Province would assume all responsibility for the operation of the

marine freight and passenger services on into the Coast of Labrador in exchange

for $340 million plus interest.

On December 19, 1997, the Labrador Transportation Initiative Fund was

established under the authority of this Act. The funds affairs, Mr. Speaker,

were managed by a Board of Management appointed by the Lieutenant-Governor in

Council, while the day-to-day administration of the fund was carried out by

officials in the Office of the Comptroller General. The board ensured that the

funding provided was in accordance with the Act, provided advice and monitored,

through projected cash flow calculations, the expected life of the fund in

consultation with the Department of Transportation and Works.

Over the life of the fund, Mr. Speaker, the Board of Management authorized

payments for the purposes of operations of the marine freight and passenger

services, and the maintenance of land wharfs and related facilities servicing

Labrador, the construction of the Trans-Labrador Highway, and other Labrador

initiatives related to transportation as approved by the Lieutenant-Governor in

Council.

During February of 2007, Mr. Speaker, the last reimbursement cheque to

Transportation and Works was issued from the fund which fully depleted all

remaining funds. Actual spending from the fund from 1998 to 2007 accounted for

$416,708,956; four hundred and sixteen million dollars, Mr. Speaker. When you

break that down into its inflows from inception there was an initial deposit in

1997-1998 of $349,172,013, there was accumulated interest revenue of

$67,536,943, for a total of $416,708,956. The outflows, Mr. Speaker, from

inception are broken down as follows: On the Trans-Labrador Highway there was

$239,442,844; the coastal Labrador ferry, $151,164,519; provincial roads and

others, $19,735,132; the ferry terminals, $6,292,959, and bank professional fee

charges of $73,502, balancing, Mr. Speaker, at $416,708,956.

Mr. Speaker, on April 9, 2007, the board of management served notice of its

intention to dissolve the fund. Further to this, the board approved the request

to have the Labrador Transportation Initiative Fund Act repealed, and ceased

doing business as of the date of the approval of this Legislature.

Mr. Speaker, I would like to make it clear, however, for hon. members and to

the residents of Labrador, that our government is committed to investing in

Labrador.

Mr. Speaker, when I was appointed as Minister of Justice after the election

October 2007, one of the first initiatives that I undertook was to liaise or

co-ordinate with our Aboriginal peoples in Labrador.

Mr. Speaker, Labrador is an absolutely amazing and wonderful part of this

Province. We have the benefit in this House, we are represented by Minister

Patty Pottle in her district, the Minister of Aboriginal Affairs, and I had the

opportunity to visit Nain and other communities in Coastal Labrador with her.

Then we have the Minister of Labrador Affairs, with whom I have travelled to

Goose Bay on a number of occasions, met with Aboriginal groups on a number of

occasions, and I can say, Mr. Speaker, that both of them are very strong

advocates for Labrador.

Then the Member for Labrador West, I have had the opportunity to travel to

Wabush, Labrador City, with him during pre-Budget consultations and on a couple

of other issues, justice issues, when we met with the women's groups in terms

of hearing the concerns about legal aid and the legal aid issues and also the

women's centre issues that they had in Labrador West.

I also had the opportunity to travel another time to Labrador West in

relation to the certain ceremonies for the Royal Newfoundland Constabulary.

Also, Mr. Speaker, when I became Minister of Finance, I had the opportunity to

travel to parts of Labrador for the pre-Budget consultations, to travel to Happy

Valley-Goose Bay. The Leader of the Opposition attended that night, Mr. Speaker,

and it was a very informative and well-received session. The next day we then

went to Labrador West where the member and myself, again, had a very

well-received, informative session.

There was a particular group in the Opposition House Leader's district, Mr.

Speaker, who could not make it to Happy Valley-Goose Bay. Nor could they make it

to St. Anthony, so I met with that particular group in St. John's. I have to

say, Mr. Speaker, I was very impressed with the quality of the presentation, the

knowledge possessed I think they were all women; I think it was four women

who met with me that day - the knowledge possessed and the reasonableness, Mr.

Speaker, in which they made their presentation. Some of these issues have been

raised by the Leader of the Opposition in terms of some of the difficulties that

are faced in Southern Labrador. They discussed issues from roads to the high

price of gasoline. Mr. Speaker, one thing that the Trans-Labrador Highway will

do, hopefully, is make it easier to access this great part of the Province and

hopefully allow for the services to be improved in that respect.

Mr. Speaker, since my election I think I have been in Labrador it must be

now, I guess, a dozen times. I remember one trip to Labrador or, excuse me, to

Nain, where we went and there was a tourism conference there at the time, in

Nain, and they were having this dinner in the quarry, the Labradorite quarry,

which we had to access it was late in the year - by Ski-Doo. We went to the

quarry and there was this amazing meal presented to highlight the opportunities

in Labrador for tourism.

What happened, Mr. Speaker, was that a young man, a chef in St. John's from

Nain, his father was a judge in Labrador for many years, and from scratch he

prepared this amazing five-course meal. I do not even think there was running

water there, but it was amazing, Mr. Speaker. The meal was as good as any meal

you would get in any restaurant. It was all local wildlife and birds. I am

trying to remember now exactly what it was.

The point I am making, Mr. Speaker, is that Labrador is a significant, a very

significant, part of this Province, and always has been, and the fact that this

act is being repealed does not mean that there is any change in this government's

approach to Labrador. Nor does it mean, Mr. Speaker, that there is any less

commitment to Labrador.

One issue, Mr. Speaker, before I move to some of the initiatives that we have

taken in relation to Labrador, as I met with our Aboriginal groups, one of the

things that I learned very quickly one of the first steps I took as Minister

of Justice, I met with a number of the elders in the communities, and a message

that I heard loud and clear, especially in relation to the justice system, was

the need to appreciate the culture of our Aboriginal people, the need to respect

their culture, and those meetings led to the formation of the plan to start,

first with the Innu, an Innu healing court, and hopefully that court will start

soon.

We travelled to Toronto to have a look at the Aboriginal court, the Gladue

Court, named after a Supreme Court of Canada decision, that they had in downtown

Toronto, of all places - it was quite amazing - but there was a high Aboriginal

population in downtown Toronto. Now their needs, Mr. Speaker, will be different

than the needs of the Innu, for example, in Labrador, but the principles were

basically the same. The principles that had been recognized in that Supreme

Court of Canada case, although being implemented in downtown Toronto, were also

applicable in Sheshatshiu or in Natuashish. So, Mr. Speaker, I had the

opportunity, as Minister of Justice, to work with the leadership of the Innu and

I have to say that I was very impressed with their commitment to their culture,

to their peoples, but also their willingness to work with us as a government to

try to improve the situation in their communities. One particular meeting that

stands out, Mr. Speaker, was the meeting with a women's group in Sheshatshiu,

and that was quite enlightening.

What we tend to do as a justice system is to look to treating everyone the

same. Now, obviously, Mr. Speaker, everyone is equal before the law and everyone

is presumed innocent and entitled to that equal treatment but in the case of our

Aboriginal peoples we have to be aware of certain cultural issues and cultural

differences, and we have to respect those. That is where the Innu court,

hopefully, will play a great part. The Innu Healing Path Court is the official

terminology.

Then, Mr. Speaker, as I have indicated, I travelled with both the Minister of

Aboriginal Affairs and met with the leadership of the Nunatsiavut government.

Again, Mr. Speaker, very clear commitment to their cultures, their land and

their people. So, as a government we are certainly committed to Labrador and I

think that commitment is shown by the fact that we have two ministers in Cabinet

representing the different parts of Labrador, one minister for Labrador Affairs

and another minister in Aboriginal Affairs.

So, Mr. Speaker, part of the difficulty in relation to Labrador though, and

part of the difficulty I guess you could say in relation to the Province of

Newfoundland and Labrador as a whole is the issue of geography. We live in a

vast Province in terms of land mass and the difficulty in providing services is

immense.

We have, Mr. Speaker - and again, I spoke about this in the House last week,

the importance of rural Newfoundland and Labrador in your district, the desire

to maintain that way of life, that closeness to the sea, the closeness to the

fishery. Everywhere people live, Mr. Speaker, as a government we have to try to

provide them with the basic services that are required. We have to try to

provide the best health care, access to community services, roads that can get

to their communities. So we face these problems in a Province as large as ours.

To put it in perspective, I was in Toronto last week at some meetings, and I

am always amazed at the size of Toronto, but if you look at the size of

Mississauga or even Brampton I guess, I am sure that the Brampton-Mississauga

area, the population there would be greater than the population of the Province

of Newfoundland and Labrador. It would be interesting at some point to look at

the City of Mississauga and see how many hospitals they would have in their

city. Because one boundary goes into another, they are probably served by I

do not know, Mr. Speaker. As I have indicated, it would be interesting to note

the number of hospitals,

whereas you look at this Province and you look at its

shear size and the number of medical facilities that are required. When we get

to Labrador, that situation is even made much more difficult because of the size

of the shear land mass again.

Mr. Speaker, in terms of our commitment to the Labrador portion of the

Province, even though this act is being repealed, we will continue to invest in

Labrador.

In Budget 2009, Mr. Speaker, we are investing more than $135 million in

Labrador through the Northern Strategic Plan, reaffirming our commitment to

improve the health and well-being of all Labradorians. This includes $58 million

in provincial funding, in addition to a federal investment of $26.5 million.

That is the complete construction of Phase III and to continue widening and hard

surfacing of Phase I of the Trans-Labrador Highway; $4 million towards

construction of new transportation depots at Cartwright Junction and Cook's

Lane, and $1 million for building alteration projects for various government

buildings throughout Labrador.

Mr. Speaker, what we are doing here today, and last week I spoke at some

length about legislation, how legislation is brought into force, how it begins

with it could be an idea in the head of a particular person. It could become

a policy decision of government, become

an act, but at points some acts lose

their necessity. One of the things that we have been trying to do as a

government, and I know in the last session of the House, was to repeal acts that

are no longer necessary, and this is one of them, Mr. Speaker.

What we are doing here today is primarily a housekeeping measure to rescind

an act that is no longer required. I would like to take this opportunity again

to talk a little bit about our government's commitment to Labrador and steps

that we have taken.

Mr. Speaker, these are some of the Budget 2009 highlights. Under Labrador and

Aboriginal Affairs there is $500,000 for the Air Foodlift Subsidy; there is

$390,000 for the grooming of coastal snowmobile trails; there is $120,000 in

operating funding to the Combined Councils of Labrador, and there is $100,000

for suicide and detrimental lifestyles program.

Mr. Speaker, in Transportation and Works there is $58 million in provincial

funding, in addition to the federal investment of $26.5 million to complete

construction of Phase III and to continue widening and hard surfacing of Phase I

of the Trans-Labrador Highway, as I have previously indicated.

In Justice, Mr. Speaker, there is $1.5 million to purchase living quarters

for the Royal Newfoundland Constabulary officers in Labrador West. One of the

things we found - I found this while I was in Justice, and I am sure my

colleague who is now in Justice is finding the same thing. We have, as a

Province, the obligation to provide policing to Labrador West. For those who do

not know it, Mr. Speaker, the Royal Canadian Mounted Police provide policing to

the Coast of Labrador, to Happy ValleyGoose Bay, and I would like to applaud

them in terms of the job they do in difficult circumstances in so many different

communities along the Coast of Labrador.

One initiative that I was very impressed with last year when we were to Nain

was the fact that they were now using video conferencing. So that someone

appearing for a bail hearing in Nain, even though the judge might be sitting in

Goose Bay, they were making that connection by video conferencing. I thought

that was a very welcome addition and one that is very innovative. When we went

to I think it might have been my second trip to Nain. We went to the local

school, Mr. Speaker. Quite a modern school, very nice, and went to their Grade

11 or Grade 12 class I think it was, and had a chat with a number of the people

who were there. It is amazing when you travel around this Province, the number

of people that you come in contact with.

There was this woman who came up and was having a chat with me, and she had

grown up just down the road from me in Carbonear. She had been living in Nain

for a number of years, but I had been speaking to this young lady in the school.

I think this young lady, if I remember correctly, wanted to be a doctor. Her

marks, there were a number of especially the young ladies stand out in my

mind. Their marks were astounding. It turns out that the connection this

young lady, her grandparents would have still lived down the road from my

parents, but in any event, I guess I digress a little. My point is that even in

Nain, as far north as it is, the quality of education there seemed to me to be

quite amazing. The quality of the students there were quite amazing. What they

were doing Mr. Speaker, also what they did that was very impressive to me

were the long-distance courses. They could do courses. They were set up, and

they would do it by computer; they would do the distance learning courses. They

were doing all kinds of I forget examples, but again it was quite amazing,

the use of technology. I guess my point being that, as a government, as we

invest further in technology and in broadband, Mr. Speaker, hopefully we can

connect the whole Province and do a good job. The distance education is one

example. The example of using video technology in terms of the courtroom is also

another great example.

The RCMP provides policing in Happy Valley-Goose Bay and the Coast of

Labrador. Then the Royal Newfoundland Constabulary provides policing in Labrador

West. So what we have is, in this Province, the Royal Newfoundland Constabulary

providing policing in St. John's, Corner Brook and Lab West; but in Lab West,

as we looked to try to find living accommodations for our police force it was

very difficult. The same thing with Churchill Falls; the Royal Newfoundland

Constabulary also provides policing in Churchill Falls.

We have to get progressive. If we are going to get young members to go there,

how do we go about that? One of the proposals this year was to actually purchase

living quarters, and thereby subsidize the cost of the young officers who are

living there.

I earlier talked about the Innu healing path court program; it is $206,000

for that, and $57,300 to make the position of Inuit court clerk in Happy

Valley-Goose Bay permanent.

Now, when I first got into the Justice portfolio, the department was working

on dictionaries. I do not know, Minister, if a dictionary would be the proper

term, but there were lexicons of the Innu-aimun and Inuit languages to be

utilized in the court program. That was one of the fascinating things, Mr.

Speaker, when I first met with the elders; they said: We do not understand the

language.

There is an assumption there that everything means the same, but there are

examples used of, in the Innu language, there were words used in court that they

had no words for. I think guilty/not guilty might have been one of them. I think

the word might not exist. Again, I am not sure if guilty was the word.

So, what happened? We were bringing people into a courtroom, saying: How do

you plead, guilty or not guilty? and they did not really understand it. So,

the purpose of this dictionary was to assist the court interpreters, and there

was also an initiative of the Department of Justice. I am not sure, Mr. Speaker,

if it was when you or when my colleague was first in Justice, the issue of the

court interpreters program, and that turned out to be an excellent program.

Because, if we are going to bring people into a court system then we have to

offer them the opportunity, at a minimum, to understand what is going on.

Then we moved, I think there were Innu clerks and an Inuit clerk, so there is

money in the budget to ensure the position is made permanent.

In health and community services, $1.1 million will be invested to increase

funding to strengthen existing family resource programs and to support the

start-up of new family resource programs throughout the Province, including

Happy Valley-Goose Bay. In environment and conservation there is $1.85 million

for further assessment and remediation efforts in Hopedale and Northwest Point,

Labrador.

Mr. Speaker, any time that we talk about Labrador and we talk about

development, we have to be cognizant of the effect on the environment. We have a

pristine environment. I will never forget the first time, probably twenty years

ago now, that I flew from Happy Valley-Goose Bay to Nain to go to court, and the

beauty of that rugged land, just looking down at it and realizing that it is

untouched by man. That is one of the things that make it so beautiful. As

custodians of our children's future we have the moral, and there is also an

economic, obligation to ensure that land, while developing it, is kept as

pristine as possible. That is the challenge that all modern-day societies face,

but what we have to do, and the way we do it, is ensuring, as best we can, that

there is a proper balancing between the two, which leads me then to the

importance, of course, of the Lower Churchill development.

I wish I had, and perhaps for another day - but in terms of looking at the

Upper Churchill development, and the mistakes that were made there for whatever

reason, one of our obligations as a government is to ensure that we learn from

those mistakes and that we not repeat the mistakes of the past. When you look at

that development, that potential of 2,400 megawatts of clean, green and

sustainable energy, we have to do it right.

I think last week in this hon. House there were questions from the Opposition

House Leader to the Premier as to the issue of the federal government, and us

getting along with the federal government better. The federal government should

be jumping at the opportunity to be involved in such a magnificent project in

this day and age when we have the volatility of the oil markets and we have the

rising prices that we encounter, which are good for us but it is also bad for

many parts of the world in terms of the cost and the environment. When you look

at that, then the federal government with all of this energy, there, ready to be

developed, you would think that the federal government would want to come on

board.

Again, Mr. Speaker, as protectors of the future, and that is what our job in

this Legislature is to a great extent, is to protect and define for our

children, as best we can, a future that is sustainable, that allows for

self-reliance and that allows us to take our place in this great country. When I

say take our place, Mr. Speaker, I do not simply mean that we say we are one of

the ten provinces. We want to truly be part of this federation.

This Lower Churchill Project, Mr. Speaker, is one that is renewable energy.

In 2041, the Upper Churchill will come back. Unfortunately, there is the renewal

process in 2017, or 2016, another twenty-five years after that. If you look at

our government's energy plan, that is what it is based on, a long-term vision

for the Province.

Mr. Speaker, as politicians that is what we are required to possess, not

simply: How do I do what is popular today to get the most votes that is good for

me? How do we do what is best to protect our children and our grandchildren's

interests? With the Lower Churchill, Mr. Speaker, we will do whatever we have to

do to ensure that it is done properly, that it is done in protecting our

environment and it is also done with ensuring a bright and prosperous future for

our children. So, whenever we talk about Labrador, we also have to talk about

the impact of future developments on the environment in Labrador, and as a

government we have to ensure that those impacts are minimized to the extent

possible.

Mr. Speaker, in Forestry and Agrifoods this year in Labrador, there will be

two new kilometres of roads in the forest management District 19 near Happy

ValleyGoose Bay. There will two kilometres in forest management District 21

near Port Hope Simpson. There will be road reconstruction and maintenance on

some existing roads in Labrador, and 100 hectares of pre-commercial thinning in

forest management District 19 near Happy ValleyGoose Bay, and 190 hectares of

planting in forest management District 21 near Port Hope Simpson.

In terms of the Fire Emergency Services of Newfoundland and Labrador, Mr.

Speaker, there will be a new fire protection officer in Labrador. The Fire

Emergency Services Newfoundland and Labrador will begin to recruit this position

and open up a satellite office in Labrador in 2009.

In the Human Resources, Labour and Employment field, Mr. Speaker, there is

$142,300 to expand the successful Employment Transition Programs for single

parents in Labrador; $70,000 for the state-of-the-art career work centre to be

established in Happy Valley-Goose Bay; and $31,000 to enhance community youth

networks throughout Labrador.

In Tourism and Culture, Mr. Speaker, there will be $150,000 to Destination

Labrador to enable the destination marketing organization to continue to promote

Labrador in key national and international markets to assist tourism operators

in their efforts to attract more clients and to help ensure visitors receive the

top quality services and experiences they expect.

In Women's Policy Office, Mr. Speaker, there will be $60,000 to the Rigolet

Partnership Against Family Violence towards its goal of establishing a shelter

in Labrador.

Now I remember the day, Mr. Speaker, as Minister of Justice that I was in

Rigolet with the Minister of Aboriginal Affairs and we met with this particular

group, met with the town council. I remember speaking to the police officer

there, and it just brought home to me the difficulty that the RCMP face in

isolated areas like Rigolet. I think there might have been one or two officers

there, but in last year's budget we brought forward some positions for the

RCMP backup plan where there have been some very unfortunate events across this

country with RCMP officers having to respond to dangerous calls by themselves.

So the backup plan requires, I think - and again, I am sure the Minister of

Justice at some point in the future will have an opportunity to speak to this,

but I think it requires two officers to attend the scene. In a situation like

Rigolet though that becomes very difficult because I think, if I remember

correctly, there might have been only two officers and a community constable.

Well, it made it very difficult because they are always on call. That is a very

difficult way to police a situation.

Now, Mr. Speaker, I have to say, I was quite surprised when I met with this

committee of the difficulties that they were facing in Rigolet in terms of the

violence. They were very earnest in their approach and I am pleased that we can

do something to assist them this year.

Mr. Speaker, in the midst of all of this there is always the issue of

relationships with our Aboriginal communities. As I have indicated, the issue in

terms of the Innu communities and dealing with the Innu leadership, I think, as

witnessed by the New Dawn Agreement, has certainly come a long ways. We are

continuously in contact, through the Minister of Aboriginal Affairs, with the

Nunatsiavut government, and we are always looking to better the situation,

whether it be from a social, a justice, or a health perspective, of our people

in Labrador.

Mr. Speaker, the Act that we are repealing here today appears to have been

brought in for a particular reason, and that was simply to allow for the

replacement by the Province assuming all responsibility for the operation of the

marine freight and passenger services, in exchange for $340 million plus

interest.

Mr. Speaker, there were a number of times in the past when we have engaged in

this kind of agreement with the federal government. Most notably, I guess, would

be the replacement of the railway in Newfoundland and Labrador by essentially

agreeing to take a sum of money. This appears to be another one of these

situations. It appears that there was a significant amount of money put into

Labrador over a short period of time.

I forget now, but I am sure the Minister of Labrador Affairs who has probably

driven every portion of the road can tell me. My recollection, Mr. Speaker, is

that this would cover hundreds and hundreds of kilometres of highway. If you are

going to go from Lab City, Wabush Jim, how many kilometres are we talking

here?

MR. BAKER: About 1,200 from one end to the other.

MR. KENNEDY: The Member for Labrador West just indicated to me, Mr.

Speaker, about 1,200 kilometres of roads. I am trying to remember how many it is

to cross the Island. It is less than that. It always amazes me, Mr. Speaker. It

sometimes puts it in perspective when every now and then I will talk to someone

who will say they have never been to Newfoundland and Labrador. They have been

to Cape Breton, but they were going to come over for the day. I said: Where were

you going to go for the day? By the time you cross on the ferry you are looking

at six or eight hours to get to Port aux Basques, and if you take the Argentia

ferry people have no real concept of the distance in this Province.

We are talking 1,200 kilometres to cross Labrador. What it will do, Mr.

Speaker, hopefully, will open up the ability to allow for services that may be

lacking now. In the wintertime there is obviously the issue of ice, and then

there is cost of air travel. So hopefully this will allow, this road, when it is

finished and it is quite a gigantic venture will allow for easier access

both to and from Labrador for the residents and also for people to get to

Labrador, because it is something that everyone should do and visit.

I remember last year - and the Minister of Justice will remember this - the

Deputy Minister of Justice is quite an avid hiker, and apparently last year he

went on a ninety kilometre trek in the woods from Natuashish on. I do not know

where he ended up. He went with an Aboriginal group, and it was quite a trek.

I am not suggesting that everyone has to do what the Deputy Minister of

Justice did, and go on a ninety kilometre trek, but just to see Labrador. Every

time I fly over it, the absolutely

MS BURKE: The minister should go.

MR. KENNEDY: The House Leader makes the point that the Minister of

Justice should engage in that trek the next time around.

Mr. Speaker, every time I fly over I am just struck by the awesome beauty of

Labrador. Hopefully, the people of Labrador will appreciate our government's

commitment to them, our willingness to work with the native governments.

Because, Mr. Speaker, a number of years ago - the Nunatsiavut government is

actually a self-governing body that came out of the agreement on the land

claims,

whereas the Innu Nation are still negotiating land claims. Then, of

course, we have the Labrador Mtis Nation that is still in discussions, it is

my understanding, with the federal government.

Mr. Speaker, at this point I would simply like to state and reiterate our

commitment to this Province as a whole, the commitment to Labrador, and simply

recommend that this act be rescinded because it serves, as I have indicated, no

further purpose.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER (T. Osborne): The hon. the Opposition House Leader.

MR. KELVIN PARSONS: Thank you, Mr. Speaker.

I was under the mistaken impression, I guess, the Leader of the Opposition,

of course, being from the Labrador area, Cartwright-L'Anse au Clair, I thought

she had worked out an arrangement with the minister that he would continue to

speak until such time as - she is out doing a scrum, and I thought that someone

would speak until she returned from the scrum. Rather than lose the time, of

course, I would speak if we had to.

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

MS BURKE: Mr. Speaker, to continue with the Order Paper and certainly to

accommodate all members who would like to speak on any particular piece of

legislation, I am going to call second reading of Bill 6,

An Act To Amend The

Pensions Funding Act.

Motion, second reading of a bill, "An Act To Amend The Pensions Funding

Act." (Bill 6)

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

Board.

MR. KENNEDY: Thank you, Mr. Speaker.

I thought I was going to get a little rest, Mr. Speaker, but there is no rest

for the weary.

Mr. Speaker, I am pleased today to introduce an amendment to the Pensions

Funding Act that will modify the annual reporting requirement with respect to

the operations of the Province of Newfoundland and Labrador Pooled Pension Fund.

The amendment, Mr. Speaker, again is housekeeping in nature but it will give

me the opportunity to discuss in some detail the issue of pensions, and how

pensions work, because it is an issue of significance to all of our public

employees, especially in these economic times. Mr. Speaker, I am going to review

in some detail where we are with our pension funds, and where we can expect to

go, as best as I can see.

Mr. Speaker, this particular amendment will deal with the Pensions Funding

Act. Since the inception of the Pooled Pension Fund in 1980, the Minister of

Finance was required under the Pensions Funding Act to submit the December 31

annual financial statements of the pension fund to the Lieutenant-Governor in

Council for a review by June 30 of the following year. Subsequent to this

review, the minister would then table the financial statements before this hon.

House at the earliest opportunity. In many instances, Mr. Speaker, this

reporting process often delayed the tabling of the statements in the House of

Assembly until the fall sitting of the House.

With this amendment, Mr. Speaker, the annual financial statements of the

pension fund will be tabled before this hon. House in a more timely manner,

consistent with the reporting requirements of the Transparency and

Accountability Act. Under those requirements, the financial statements for the

fund will be tabled on or before June 30, which is within six months of the

year-end of the Pooled Pension Fund.

Mr. Speaker, the act that we are dealing with is called the Pensions Funding

Act. In this act, it refers to the pensions that we have responsibility for as a

government. They include: the Uniformed Services Pensions Act, 1991 and the

Royal Newfoundland Constabulary Act; the Teachers' Pensions Act and The

Education Act you have to read them together, Mr. Speaker - the Provincial

Court Judges' Pension Plan Act; the Members of the House of Assembly Retiring

Allowances Act, and the Public Service Pensions Act.

Also, Mr. Speaker, as outlined in

section 4 of that act, the

Lieutenant-Governor may by order include a pension plan that covers an employee

or pensioner of the government of the Province, or of an agency, board or

commission.

The Province of Newfoundland and Labrador Pooled Pension Fund is continued

under

section 5. The fund shall be held in trust by the minister and may be

plan shall participate in the fund proportionate to its equity in the fund. The

participation of a plan shall operate under the regulations.

Mr. Speaker, I am going to talk about this for a few minutes here today. One

very important aspect of this is the deficiency guarantee under

section 9 of the

act. "Where (

a) there are insufficient assets to meet the obligations of

the fund; or (

b) the equity apportioned to a plan referred to in

section 7 is

insufficient to meet the obligations of the plan under

section 11, the minister

shall pay out of the Consolidated Revenue Fund sufficient money as may be

necessary to cover the deficit, and the money shall be paid on a timely basis in

order to protect the other plans included under this Act."

Mr. Speaker, that is a very important point for this reason: For the person

who is out there who works in a private corporation, or the self-employed

individual, he or she probably has monies invested in an RRSP. Now, Mr. Speaker,

in that RRSP investment what will happen is, the fund will go up and down with

the markets but there is no one - that I am aware of, at least, when I was

employed as lawyer - there is no one there who, when your fund goes down, says:

Well, I will pick up the deficiency here; I am responsible for the deficiency.

To put it in perspective, Mr. Speaker, if an individual has an RRSP that is

worth $100,000 and that fund goes down $30,000 which is consistent with what

we saw, the drop in the markets last year. Well, there is a deficiency of

$30,000. No one covers that, Mr. Speaker. It is the responsibility of the

investor until if and when the fund recovers.

With our employees, Mr. Speaker, it is very important for them to understand

that government is responsible. So that the numbers I am going to go through in

a second, although they are up and down, ultimately, at the end of the day,

government is the one who is responsible for the plans that I have just talked

about.

So, Mr. Speaker, government has an obligation. I think it specifically refers

to, as I have indicated, the minister of the fund shall be held in trust by

the minister. Now, last week at one point I talked briefly, when we were talking

about another act, about what it means to hold in trust. I think, if you

remember, in the Revenue Administration Act there was reference to taxes owing,

whether it be gasoline tax, tobacco tax, having to be held in trust upon being

received and then payable to the government, and that there was a trust

situation existing. I think I had used the example, Mr. Speaker, of which you

had been aware, of the importance of trust accounts as a lawyer and the

obligation when handling other people's money.

Mr. Speaker, in this particular case, the act specifically refers to the

how do you go about investing people's money when they are pension funds? It

is their futures, and we have heard quite a lot of discussion about that in this

House in recent times with the AbitibiBowater situation.

The difference here, Mr. Speaker, is that if these funds go down, then at

some point government is obliged. The best example I can use is that when our

government took office in 2003 the Public Service Pension Plan and the Teachers'

Pension Plan were significantly underfunded. The Teachers' Pension Plan at

that point was 26 per cent funded, and would have run dry by 2012.

Now just think of the enormity of that situation, Mr. Speaker. We have

approximately, I think, at any given time I am trying to remember from the

collective bargaining, but there is something like 6,000 or 7,000 teachers, I am

sure. Next to NAPE, I think it is probably our biggest union.

AN HON. MEMBER: About 6,000.

MR. KENNEDY: Yes.

So, in any event, Mr. Speaker, it was 26 per cent left in the fund. It would

have run dry. So what our government did, again to put this in perspective, we

would have been required to pay $200 million annually from general revenues just

to meet the pensioner payroll. Now the significance of that to the economy, when

you look at where we were in 2003 and where we are today, there is no

comparison, but what we did as a government, in terms of prudent and reasonable

financial management, we looked at this fund and said we have to deal with this

situation. We have to fix this up. So in order to bring stability to the pension

plans, in 2006 government contributed $1.953 billion to the Teachers' Pension

Plan. These monies were funded from the $2 billion Atlantic Accord.

Mr. Speaker, again last week, I come back to it, the Opposition House Leader,

as is the right of the Opposition to question and to criticize I suppose, if

that is a term, and said to the Premier: How come we are still not getting along

with the federal government, what is the problem here? Does anyone in this House

think that if Premier Williams had not taken the stance that he took back in

2005, 2006 that we would have gotten that $2 billion that we had to put into

that pension fund? Not likely. So it was by Premier Williams and this government

taking a strong stance and standing up for ourselves that those monies were

obtained. Then what happened to those monies? They were immediately injected

into this pension fund to try to bring stability to it.

Mr. Speaker, this special payment of the $1.953 billion increased the funding

status of the plan to 85 per cent at the time. They have since declined, as I

will go through in a second, but the point being is that this was again an

example of prudent, fiscal management. What do you do? Again, my point, what do

you do when you have money belonging to other people? They pay it in, it is paid

in trust, how do you oversee the investment of this money? We have all of our

various unions involved with them, all of which I am very familiar with over the

last six months. Including NAPE, NLNU, NLTA, CUPE, Association of Allied Health

Professionals, the RNC.

Under the Pensions Funding Act, the Lieutenant-Governor in Council oversees

the operations. So these funds are broadly invested professionally by eleven

investment managers. There is a pension investment committee appointed by the

Lieutenant-Governor in Council. Now who are the members of this committee? How

do we determine? Who is going to look after or oversee - not look after, because

that is where we have professional managers. Who is going to oversee these

funds?

We have representatives from all of the unions, Mr. Speaker. We have a

representative from the Public Sector Managers' Association, we have a

representative from the Public Sector Pensioners Association, we have seven

government officials, including the Deputy Minister of Finance as Chair, and we

have one private sector representative.

Mr. Speaker, we have involvement and input from the unions and I am going

to go through, in a second, the way this is looked at. As a government then,

what do we do? We hire a company who looks at retaining professional managers to

deal with the investment of our pension funds. It would have to be a diversified

portfolio again, as I go through. The company, who is our advisor, is a

company called Russell Investments. Russell Investments - I just happened, last

week while I was in Toronto on certain meetings, to meet with the people who run

this company. There was a gentleman who flew in from New York, and we had a

discussion as to how the funds were doing and how our portfolio managers were

doing. Make no mistake about it, Mr. Speaker, they get paid good money to run

these funds.

Russell Investments, Mr. Speaker, offer investment. You can go in; it is all

on their Web site if anyone out there, any member of this House or member of the

public is interested in finding out. They offer planning services to

institutional investors and individuals in forty-six countries. They advise

clients on the investment of approximately $813 billion of Canadian assets and

serve 2,800 organizations and millions of individuals.

Mr. Speaker, there is $171.2 billion invested in Russell funds globally. They

were founded in 1936 and they have been involved and consulted they have

pioneered the field of investment consulting by focusing on investment

management rather than investment products. Now that is an important point,

investment management rather than investment products.

Mr. Speaker, what we have is when you are going to determine what they do

with pension funds and the value of the again, this is a startling example

of the volatility of these markets. The funded ratio of our plans is currently

down, but one of the reasons I met with them last week is: Are there any changes

that need to be made that you would suggest to the Pension Investment Committee?

Because, as the Minister of Finance, we are responsible here for these funds.

Mr. Speaker, the current value of the fund is approximately $5.07 billion.

That is down significantly and approximately, I think, 20 per cent from the same

time last year. Now, that is consistent with the markets. There is a $5 billion

fund that has to be invested, so we have to look at a rate of return and

investments that will allow the fund to grow and attain a certain funded status.

To give you an example of the volatility of the market, in March I think we

picked up approximately $200 million in the fund, so the fund grew by $200

million in one month. So my question, as I met, and the deputy minister was with

me, when we met with the Russells in terms of pension advisors, was: Do we need

to do anything different? Is there any advice that should be brought back

through the deputy minister, who is the chair of the committee? Is there

anything that needs to be brought back to the committee in terms of their

discussion?

Also, Mr. Speaker, as I have indicated, where the funds are held in trust by

the minister, it is something I am very concerned about. This pension fund, Mr.

Speaker, again you look at your goals - and again I am just going on what I have

learned as I have consulted with various people. We happened to meet that

afternoon with the Canada Pension Plan executive director, I think he was, or

CEO, just to get a feel for what they were doing. Their pension fund is

currently worth $108 billion. The amounts here are staggering, when you think

about it, but people's livelihoods are at stake. That is one of the benefits,

Mr. Speaker, in terms of working with the provincial government or the federal

government. Some people you will often hear say, well, I can make more money in

the private sector; but, Mr. Speaker, when you work in the private sector you

will find few companies with pension funds as good, or pension plans as good, as

the ones that are offered by government, and finding a pension plan that is

guaranteed essential is something that I think brings a certain security.

Because, if you look at someone who starts with government at age twenty-five,

and they work for thirty years, they can retire at fifty-five, with their

pension funds guaranteed, so, you have to have a plan that is long term and

based in the future.

So the view of Russell Investments in terms of what do we do here, what

return we are looking for on the money here, their view is that while things are

changing there are changes happening in the markets and the economy - their

view is that the circumstances that drive the Province's current investment

beliefs have not changed.

Now, I was reading from a piece of paper which had the word fundamentals

there. Well, I do not like that word and I am not going to use it because - just

by way of anecdote, I read recently that back around 1929, around the Great

Depression, that was the line that was used by the people of the day, the

economists, that the fundamentals are good.

Now, where did we hear that fundamentals are good? Back in October of this

year, the Prime Minister of Canada said the fundamentals are good. Now, what

John Kenneth Galbraith said in a book he wrote about the Great Depression or

the 1929 crash was, any time you hear a politician say the fundamentals are

good, disbelieve what he or she is saying.

So I just changed that line, but the point I guess I am making is that our

Province's current investment beliefs have not changed. Therefore, Russell's

advice to us is to stay the course with the proposed asset allocation in terms

of equity, Canadian funds, international funds, real estate whatever various

ways the money are invested - in terms of the equity and bond allocation, and

then to consider some investments in alternatives.

What gives me some solace - I hold money in trust belonging to pension funds

- is that all of the unions, the people whose interests are at stake here, are

all involved in this. They are all there having a say with this committee,

overseeing these funds. I think that is crucial in terms of making sure that

their funds are handled properly.

Now, when I say handled properly, Mr. Speaker, could anyone have predicted

what has taken place in the last six to eight months, in the last year? Some

people could, I am sure, and they probably made a lot of money, but when we look

at and, again, I read somewhere the other day how all of the best and

brightest people got it wrong. How people were saying there is not going to be

any recession, there is not going to be a depression, a lot of trained

economists, Mr. Speaker, who got it wrong.

So what we have to try to is to make sure that, as best we can, we follow the

advice given to us, and that we get the best advice we can. Now, that is one

thing that I have tried to do as the Minister of Finance, is to seek the best

advice that is available. We have met, as I have indicated in the past, with

local economists. We have met with b