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December 10, 2014

HOUSE OF ASSEMBLY PROCEEDINGS

Vol. XLVII No. 54

The House met at 2:00 p.m.

MR.

SPEAKER (Verge):

Order, please!

Admit strangers.

Statements by Members

MR.

SPEAKER:

Today we have members' statements from the Member for the District of St. John's

East; the Member for the District of St. John's South; the Member for the

District of Bay of Islands; the Member for the District of Cape St. Francis; the

Member for the District of Bellevue; and the Member for the District of Baie

Verte Springdale.

The hon. the Member for the District of St. John's

East.

MR.

MURPHY:

Thank you, Mr. Speaker.

Mr. Speaker, from time to time, members of this House

have the great joy of rising to salute a constituent who has reached 100 years

of age. I do not think there are

words to say how happy I am today to ask this House to congratulate not one, not

two, but seven residents of St. John's East who have reached that landmark this

fall.

SOME HON. MEMBERS:

Hear, hear!

MR.

MURPHY:

Glenbrook Lodge is the home of three new centenarians.

On September 12, Mr. Isaac Barnes, originally from Coombs Cove, Fortune

Bay, turned 100; on November 13, Joshua Coward reached the milestone; and on

November 22, Bride O'Toole celebrated her 100 th birthday.

At Tiffany Village, Kathleen Collins and Marie Maher

had 100 th birthday parties this fall; and at St. Patrick's nursing

home, Ms Bridget Martin turned 100, and Gertrude Perks celebrated 102 years of

life.

I had the pleasure of attending many of the parties

held to honour these remarkable men and women, and I can tell you there is

little I enjoy more than hearing the stories of their lives and the opinions

fashioned by 100 years of wisdom and experience.

I ask all hon. members to join me in congratulating

theses seven men and women on their milestone birthdays.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR.

SPEAKER:

Shall we stand and join with the member

[Applause.]

MR.

SPEAKER:

is a time-honoured tradition that has happened twice now, I say to the Member

for St. John's East.

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

MR.

OSBORNE:

Thank you, Mr. Speaker.

Today I recognize the organizers of the Shea Heights

Santa Claus Parade and tree lighting ceremony.

The annual parade this year had floats, characters, and school teams.

We had a beautiful day for families to watch the parade as it travelled

the route, to the delight of all the children.

Following the parade was a tree lighting ceremony with

plenty of cookies and treats. All of

these festivities take a great deal of organization and effort by the volunteers

who put these events together.

I ask all members of the House to join me in

recognizing not only the great community spirit in Shea Heights, but the

volunteers of this committee who put these events together.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR.

SPEAKER:

The

hon. the Member for Bay of Islands.

MR.

JOYCE:

Mr.

Speaker, I rise in this hon. House today to recognize Emily Bolt, a young woman

from the Town of Meadows. Emily, a

third-year psychology student at Grenfell campus, is known throughout the area

for her beautiful singing and is often called upon to sing and play at various

events, including the seniors' homes, long-term care facilities, and fundraising

events.

She is actively involved with the Holy Trinity Church

in Meadows, is a member of the Vestry Committee and the Parish Council, has led

church services, and often plays and sings at church events.

In keeping with her desire to give back to her church,

Emily, joined by her playing partners, Ted Taylor and Bobby Hull, organized a

Christmas and Gospel benefit concert at the church.

They also invited local musicians Shannon Vallis, Louise Brake, Jamie

Stone, Robyn Terry, and Ada Moores to perform, and the mummers even made an

appearance.

The response and support was overwhelming, and last

Tuesday night they played to a sold-out concert and presented a $2,500 cheque to

the Holy Trinity Church.

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

recognizing Emily and, indeed, all the performers for their tremendous

contribution to the Holy Trinity Church.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR.

SPEAKER:

The

hon. the Member for Cape St. Francis.

SOME HON. MEMBERS:

Hear, hear!

MR.

K. PARSONS:

Thank you very much, Mr. Speaker.

I rise in this hon. House today to recognize and

congratulate Mr. Terry Hart on his retirement.

Terry began his career with CKCM in Grand Falls-Windsor, and has worked

in just about all aspects of the radio industry.

He specialized in business news, positive news stories, and aired the

Good News Report .

He has won numerous news and other awards, including the inaugural

Broadcast News Award for

News Excellence.

Terry

received Hospitality Newfoundland and Labrador's Ambassador Award for coverage

of the tourism industry. He has

interviewed Cuban President, Fidel Castro; Soviet President Brezhnev; Muhammad

Ali, among others. He has also met

Queen Elizabeth, Prince Phillip, Princess Diana, Prince Charles, U.S. President

Bill Clinton, and most of the Prime Ministers in Canada since the late 60s, and

all Newfoundland and Labrador Premiers.

In 1980,

he spent three days with Terry Fox during his run through Central Newfoundland.

He has covered hijackings, the devastating air disaster at Gander, and

the major events impacting this Province.

He always did so with utmost respect.

Terry is

passionate about sports. He is a

member of the Newfoundland Baseball Hall of Fame, and for many years he has

broadcast senior, junior, intermediate, and high school hockey games.

I ask

all hon. members in this House to join with me in wishing Terry Hart all the

best in his retirement.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Bellevue.

SOME HON. MEMBERS:

Hear, hear!

MR. PEACH:

Thank you, Mr. Speaker.

I rise

in this hon. House today to recognize the thirty-sixth Annual Ecumenical Carol

Service held by the Arnold's Cove Lions Club.

All proceeds raised at the service went directly to the Children's Wish

Foundation. This year, the service

was held at the Anglican Church in Arnold's Cove on December 8, 2014 and I was

joined by the Minister of Education and Early Childhood Development.

Children's Wish Foundation is a Canadian charity that helps Canadian children,

families and communities by granting the wish of a child who is diagnosed with a

life-threatening illness. With every

wish that is granted, the foundation has given a child hope and something to

look forward to for the future. This

year, the Carol Service raised $28,650, which is the equivalent of two wishes

for children.

I would

like to recognize Florence Peach for her thirty-six years of dedicated volunteer

service with the Carol Service, and Howard Brown and Michael Penney for the

fundraiser Fog Trot, which they too raised $8,000.

I ask

all members of this hon. House to join me in congratulating the Lions Club on

another successful year for their carol sing and thank them for their services

to the Province.

Thank

you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for Baie

Verte Springdale.

SOME HON. MEMBERS:

Hear, hear!

MR. POLLARD:

Thank you, Mr. Speaker.

A Copper

Ridge Academy Level 3 student from Baie Verte had the time of her life on the

weekend of November 13 to 16.

She was

awarded the Spirit of Youth Scholarship and placed second at the Miss

Achievement NL competition, at the gala event held in the Holy Heart theatre.

This is a premiere scholarship program for young women between the ages

of thirteen to eighteen, held in St. John's every year.

Lindsee

Clarke, daughter of Eugene and Connie Clarke, had the opportunity to showcase

her brilliance, her talent, her academics, and her fitness.

She demonstrated why her twenty-four peers voted her as the person who

best exemplifies what the Miss Achievement NL award is all about.

Lindsee,

as a result of winning the award, walked away a little richer with $700 in her

back pocket. In speaking with her

mom, I learned that Lindsee has met and made lifelong friends.

She also participates extensively in school and community activities and

can be relied upon to do any task that she is asked to do.

Mr.

Speaker, I proudly ask that all colleagues in this hon. House join me in

congratulating Lindsee upon her amazing achievement.

Thank

you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

Statements by Ministers.

Statements by

Ministers

MR. SPEAKER:

The hon. the Minister of

Health and Community Services.

SOME HON. MEMBERS:

Hear, hear!

MR. KENT:

Thank you, Mr. Speaker.

I am

proud to rise in this hon. House to speak to our government's recent funding

partnership in support of the Translational and Personalized Medicine

Initiative, or TPMI as it is known.

I was pleased to attend the launch event late last month along with the Premier

and a number of my Cabinet colleagues.

The TPMI

is an important project and represents an innovative approach to delivering

health care services. It has the

potential to enhance care, reduce health care costs, and increase efficiencies,

and we are very proud to support this initiative with a contribution of $7.2

million over five years.

Mr.

Speaker, the TPMI will bring the latest and most innovative discoveries in

health research directly to patients in an effort to enhance care and treatment

options. It will allow physicians to

access a significantly greater wealth of evidence-based research, knowledge, and

techniques directly at bedside. The

potential applications are tremendous and will make a real difference in the

lives of Newfoundlanders and Labradorians receiving care.

Mr.

Speaker, three components comprise the initiative.

First, the next generation hardware and software to help analyze data and

inform policy decision making.

Second, improvements to individual patient outcomes in families affected by

genetic disease such as colon cancer, hearing health, arthritis and others.

Finally, applied clinical health research to inform future health policy

as a means to decrease health care costs while improving services.

It is

exciting to see Memorial University yet again partnering with a leader like IBM,

and this latest development further showcases the university's ability to

deliver top quality research that will benefit the people of Newfoundland and

Labrador. Together with the funding

pledged by IBM and support from the provincial and federal governments, this

project will see a total investment of $50 million over five years.

Mr.

Speaker, enhancing patient care through innovation, evidence-based research, and

collaboration is essential to strengthening our health care system.

It benefits patients in Newfoundland and Labrador, it benefits

researchers, and it benefits the entire health care sector in the Province.

Thank

you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for St.

John's South.

MR. OSBORNE:

Thank you, Mr. Speaker.

This is

an important initiative for our Province, since this Province has some of the

highest rates of diabetes, stroke, and blood pressure in all of Canada.

Mr. Speaker, we have an aging population; 40 per cent of our provincial

budget in this Province is spent on health care.

So, anything we can do to improve these outcomes is greatly needed.

I would

like to recognize IBM and Memorial University.

Memorial is a world-class facility.

We should be doing everything we can in partnering with them and

supporting an environment that allows more innovative research and learning

opportunities.

This

announcement helps bring improvements to patient outcomes, how physicians treat

patients, and how those physicians provide care for our patients.

Mr.

Speaker, anything we can do we need to be committed in this Province to

providing better health care more efficiently, allowing our health care dollars

to go further.

Thank

you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of the

Third Party.

MS MICHAEL:

Thank you very much, Mr.

Speaker.

I, too,

thank the minister for the advance copy of his statement.

The TPMI seems a good collaboration of Memorial, the Canadian Institute

of Health Research, government, and others to strengthen health research in this

Province.

Collecting patient information this way as part of research in order to give the

best care and up-to-date therapies is innovative; but, beyond this activity, we

also need to have the implementation of electronic medical records, which is way

behind schedule, I remind the government.

It is also one of the four priorities of the Newfoundland and Labrador

Medical Association which stressed they would be working on this year.

Thank

you very much, Mr. Speaker.

MR. SPEAKER:

Further statements by

ministers?

The hon.

the Minister of Business, Tourism, Culture and Rural Development.

SOME HON. MEMBERS:

Hear, hear!

MR. KING:

Thank you, Mr. Speaker.

I rise

today to share with the House the excitement that is building around the Fogo

Island Inn and its growing reputation as a prestigious and unique international

destination, offering an unforgettable encounter with Fogo heritage.

Mr.

Speaker, the Fogo Island Inn has recently been recognized by

Vogue magazine as a top-five winter

vacation destination.

Vogue has ranked the inn amongst its

top destinations for outstanding winter holiday offerings, positioning the Fogo

Island Inn against locations in Iceland, Greenland, Japan, and Norway.

The inn

has also been recently named as a finalist for National Geographic's World

Legacy award as one of three contenders in the Sense of Place Category.

Operated by the Shorefast Foundation, the Fogo Island Inn has been

nominated for this award because of the operator's steadfast commitment to

protecting community heritage, and by offering of an experience that celebrates

the intrinsic value of Fogo's culture, traditions, and lifestyle.

Winners will be announced in Berlin in March.

Mr.

Speaker, the Fogo Island Inn is no stranger to this kind of attention.

Prominent press has included coverage in

Forbes magazine, as well as the

New York Times .

The inn was also named to MacLean's

2014 list of 10 Places You've Got To See, and to the list of 50 Things That

Will Make You Say Wow! by Oprah Winfrey's own

O magazine.

Last year, the inn also won the Culture Tourism Award, which is presented

by my own department in partnership with the Departments of Canadian Heritage as

well as Hospitality Newfoundland and Labrador.

The Fogo

Island Inn has made tremendous strides, some of which have been made possible

because of strategic supporters like the Government of Newfoundland and

Labrador. I am proud that through

our various programs, the provincial government has been able to provide $9.1

million to support the Shorefast Foundation and its efforts to make Fogo Island

Inn a premiere international destination.

Mr.

Speaker, it gives me great pleasure to recognize the outstanding efforts of the

Fogo Island Inn. I offer heartfelt

congratulations to the inn and its staff on all their recent success and

international recognition, and I look forward to all their future achievements

in promoting this wonderful area of our Province.

Thank

you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for The

Straits White Bay North.

MR. MITCHELMORE:

Thank you, Mr. Speaker.

I thank

the minister for the advance copy of his statement.

I have been to Fogo Island, one of the four corners of the earth, where I

met Zita Cobb, the brainchild of the Shorefast Foundation that has led to an

award-winning social enterprise, the Fogo Island Inn.

I have also had the pleasure of being hosted by the chef of the Fogo

Island Inn who has roots in St. Anthony.

Those

who have met Zita have heard the saying: The most important thing is to keep the

most important thing the most important thing.

Cobb has invested $35 million of her own money to help build the hotel,

then collected another $18 million from provincial and federal governments, and

$23 million from private donations.

Net

earnings from this business activity are allocated to the sole beneficiary and

that is the trust, the charity; and subsequently, it is reinvested into local

initiatives to strengthen cultural and economic resilience.

I have toured their Wind and Waves Artisans' Guild.

They have the Fogo Island Arts, the punt race, and they do the

partridgeberry harvest festival.

They have a Business Assistance Fund that has supported sixteen entrepreneurs,

cod potting, an Ocean

Interpretation Centre.

They also have a Geology Residency Program.

behalf of the Official Opposition, we would like to congratulate the staff at

the inn.

Thank

you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for St.

John's Centre.

MS ROGERS:

Thank you, Mr. Speaker.

I thank

the minister for an advance copy of his statement.

Congratulations to the visionary Zita Cobb, the Shorefast Foundation, and

the people of Fogo for an incredible job on the Fogo Island Inn.

Their work has made an impressive impact on the community, and bravo;

$9.1 million of the people's money, that is a lot of money.

Heritage and museum groups across the Province continue to struggle with

mere crumbs. Provincial historic

sites are in poor repair and need proper investment; $9.1 million, and we cannot

afford a Family Violence Intervention Court.

MR. SPEAKER:

Order, please!

MS ROGERS:

What are we to make of this,

Mr. Speaker? What are we to make of

this?

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Minister of

Natural Resources.

SOME HON. MEMBERS:

Hear, hear!

MR. DALLEY:

Mr. Speaker, I truly wish I

had the time to explain to her what to make of this, but I do not.

Mr.

Speaker, I rise in this hon. House today to highlight the significant

contribution the Growing Forward 2 program is making to the agriculture and

agrifoods sector of this Province.

The

initial Growing Forward program was cost-shared by the provincial and federal

governments and implemented by the Department of Natural Resources.

From 2008 to 2013, $29 million was invested to promote the sector.

This

first program was so successful that we did not hesitate to partner with our

federal counterparts in Growing Forward 2.

Over five years, we will contribute $14.8 million, which is 40 per cent

of the total $37 million budget.

Growing

Forward 2 is built on partnerships.

Farmers and producers use this program to further enhance their entrepreneurial

spirit, to be creative and innovative, and to help drive economic growth.

In 2013,

the provincial and federal governments invested close to $6 million in 158

projects under Growing Forward 2.

Another $6 million will be allocated for 130 projects in Newfoundland and

Labrador during 2014. Here are some

examples.

Pure

Holsteins Limited in Little Rapids has a new, state-of-the-art milk production

system because of Growing Forward 2.

This is the first robotic milking system in Newfoundland and Labrador and

already this innovative project has resulted in an 18 per cent increase in milk

production.

Lester's

Farm Market Incorporated has a new harvester that improves crop harvesting speed

and efficiency. Our investment will

enable the farm to be more competitive and allow them to increase their acreage.

The

Newfoundland and Labrador Federation of Agriculture, in partnership with the

Young Farmers Forum, will be able to complete a training needs assessment and

deliver a Young Farmer's Leadership Summit because of Growing Forward 2.

Growing

Forward 2 continues to invest more than $300,000 in agriculture in the classroom

activities, including the Little Green Thumbs program which is being offered in

seventy classrooms this year. School

children learn to grow vegetables in their classrooms and to understand the

value of food production and healthy eating.

Mr.

Speaker, the Newfoundland and Labrador agriculture and agrifoods sector

generates direct and indirect employment for approximately 6,500 men and women

in Newfoundland and Labrador communities. The

total value of the sector is more than $500 million a year.

I commend the excellent work being done through Growing Forward 2, and,

Mr. Speaker, I look forward to building on these successes in years to come.

Thank

you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for St.

George's Stephenville East.

MR. REID:

I thank the minister for an

advance copy of his statement.

Agriculture is indeed an important industry for Newfoundland and Labrador.

Anything that government can do to grow the industry is always positive.

Growing

Forward 2 is an excellent program that farmers and producers alike have availed

of since its inception in 2008.

Although the number of farmers in the Province is steadily declining, the value

of the industry continues to increase, now reaching over $500 million.

Although

the farming industry is expected to post modest gains in 2014, this is an

industry that has enormous potential for growth.

Given the right environment, this is an industry that can contribute to

the diversification of our economy.

I encourage government to continue to invest in the agricultural industry.

Thank

you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of the

Third Party.

MS MICHAEL:

Thank you very much, Mr.

Speaker.

I too

thank the minister for an advance copy of his statement.

The

Growing Forward program has indeed provided many benefits to the agrifoods

sector for the last six years, and it is good that the second program has

changed somewhat and is more responsive to the needs of small-scale agriculture

and new entrants, but I would also ask the minister to consider that we need

more resources to go towards our Province's food security.

For example, by linking small farmers to local buyers and consumers,

supporting value-added processing, and protecting our remaining arable land

across the Province.

Thank

you very much, Mr. Speaker.

MR. SPEAKER:

Oral Questions.

Oral Questions

MR. SPEAKER:

The hon. the Leader of the

Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

Yesterday the Premier said that when the government made the fisheries

innovation fund announcement this is back in October, 2013 they were

celebrating a deal, a deal that allows for the future of the fishery.

In the documents that were tabled yesterday we have yet to see a signed,

final agreement.

I ask

the Premier: Is there a signed, final agreement on this fisheries innovation

fund?

MR. SPEAKER:

The hon. the Premier.

SOME HON. MEMBERS:

Hear, hear!

PREMIER DAVIS:

Thank you, Mr. Speaker.

The

fisheries innovation fund is directly related to negotiations through the CETA

discussions that have been happening with the federal government, the Government

of Canada.

Mr.

Speaker, there has been a comprehensive set of discussions.

There is a large number of documentation that has gone back and forth

between the federal government and the Province, the Province and the federal

government, that outlines a course of negotiations and discussions that have

taken place that led to the agreement.

Mr.

Speaker, I would like to point out that even this morning Senator Wells,

representing the federal government, pointed out on the public airwaves that

there was an agreement reached last year.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of the

Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

Yesterday the Premier said that the minimum processing requirements were an

important aspect on what keeps the fishery alive in our Province.

He also said that the removal of them would not have a negative impact on

the fishery.

I ask

the Premier: Why do you say on one hand that MPRs are fundamental to our fishery

and on the other hand removing them would have no effect?

MR. SPEAKER:

The hon. the Premier.

SOME HON. MEMBERS:

Hear, hear!

PREMIER DAVIS:

Thank you, Mr. Speaker.

The

member opposite should first remember, and it should be clear to everyone, that

the discussion on removing MPRs was part of the CETA negotiations.

It would directly relate to tariffs to shipments to the European Union.

It does not impact our largest trading partner, such as the United States

and China and other trading partners we have.

This is strictly about our tariffs and our trading with the European

Union.

Mr.

Speaker, MPRs are enshrined in our legislation under the Fish Inspection Act.

It is something that has been very important to Newfoundlanders and

Labradorians for as long as the fishery has been alive, is the view of many, for

a long, long time. It is important

to us as a government as well.

When the

federal government came knocking on our door and asked us to remove MPRs, we had

a discussion, we had an agreement.

That resulted in the fisheries innovation fund that we celebrated last year.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of the

Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

I remind

the Premier the celebration that he had last year was supposed to lead to a

meeting just today. Obviously, the

celebration seems to be a little premature in my mind, I say, Mr. Speaker.

government's May 14, 2014 letter, they referenced a 2006 independent review of

MPRs. That report, which was done by

Burke Consulting, did not put an exact value on MPRs, but it did recommend a

further evaluation of the MPR system to be undertaken in two or three years to

assess the impact on the industry.

I ask

the Premier: Why hasn't this additional evaluation been completed?

MR. SPEAKER:

The hon. the Premier.

SOME HON. MEMBERS:

Hear, hear!

PREMIER DAVIS:

Thank you, Mr. Speaker.

appreciate the member opposite's question.

I want to go back to his

preamble and his comments about the celebration

this Province had last year , a celebration that we partnered with industry

representatives that came together to celebrate the fisheries innovation fund

agreement that we reached with the federal government.

Mr. Speaker, it is not unusual to celebrate when you

reach a point in negotiations where you have a framework of an agreement, or as

Senator Wells put it this morning, an agreement in principle and that is what

he said this morning publicly as well.

It is not unusual for governments and organizations to celebrate such

milestones. It was worthy of

celebrating for Newfoundland and Labrador, because this fund is about the

long-term benefits of the fishery, Mr. Speaker, right here in Newfoundland and

Labrador.

I would say to the member opposite, the federal

government had a similar type of celebration just this September when they had a

much bigger and broader celebration than we had last year, when they brought

members of the EU right here to Canada to celebrate the Comprehensive Economic

and Trade Agreement that has yet to be reached, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR.

SPEAKER:

The

hon. the Leader of the Official Opposition.

MR.

BALL:

Thank you, Mr. Speaker.

Well, I remind the Premier that the folks from the EU

showed up for that celebration.

Mr. Speaker, the problem with this government is they

went into negotiating with the federal government without having any idea of the

value of MPRs on our fishery.

So I ask the Premier: Without having any idea of the

value of MPRs, how did you arrive at the $280 million figure?

MR.

SPEAKER:

The

hon. the Minister of Municipal and Intergovernmental Affairs.

SOME HON. MEMBERS:

Hear, hear!

MR.

HUTCHINGS:

Thank you, Mr. Speaker.

Mr. Speaker, as has been indicated over and again, this

is a negotiation process where the federal government came to us bilateral

discussions with the Province of Newfoundland and Labrador and with the federal

government, much like they would have with the other nine provinces and three

territories. Within the scope of

that, obviously we looked at all the chapters in terms of CETA, where we would

have an understanding of where that would go, and agreed to it.

As well, to that, it would be the issue of the

investment fund, which the federal government agreed to.

Within the context of that, we came up with a number, certainly looking

at what investments we have made over the past number of years.

Since 2003, there is something like $100 million been invested in the

fishery in various forms. Some of

those are part of the five pillars that we have certainly looked at.

So, collectively, with all of that, we see a way

forward. This is an agreement for

perpetuity. It is important that we

have the infrastructure we need to move it forward.

An agreement was made in negotiations and we expect that agreement to be

honoured, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR.

SPEAKER:

The

hon. the Leader of the Official Opposition.

MR.

BALL:

Thank you, Mr. Speaker.

Well, I am sure the minister, who has played a key role

in all of this, realizes that the five pillars that they keep talking about

really did not become part of this discussion until even earlier this year.

In government's October 30, 2013 letter, they claim

that the federal government had placed a new condition, that the fund would only

be up to $400 million. However, the

federal government was consistently using this language saying up to $400

million for over a year. In fact,

they used it over six times over the last year before this government even

questioned them on that.

So I ask the Premier: You reviewed the letters, why did

you not seek clarification on what the exact amount of the fund would be?

MR.

SPEAKER:

The

hon. the Premier.

SOME HON. MEMBERS:

Hear, hear!

PREMIER DAVIS:

Mr.

Speaker, the terminology used by the federal government of up to $400 million

was not the new condition that was introduced recently by the federal

government. The up to $400 million

was used because they were looking for a 70-30 split between the Province, and

how much they put in was contingent on how much the Province was committed to.

If he reads the documentation, he will see

documentation from October 2013 from Minister Charlene Johnson, minister of the

day, who was negotiating with the federal government, that confirmed that we

would put in our 30 per cent share of $120 million and that leveraged $280

million from the federal government.

SOME HON. MEMBERS:

Hear, hear!

MR.

SPEAKER:

The

hon. the Leader of the Official Opposition.

MR.

BALL:

Well, the Premier knows that even in some of the latest correspondences between

the provincial government and the federal government they continue to use the

up to, so if your commitment was there it obviously needed clarification.

That is the reason why I asked the question: Why didn't

you seek clarification before you had the party celebrating this deal?

MR.

SPEAKER:

The

hon. the Premier.

SOME HON. MEMBERS:

Hear, hear!

PREMIER DAVIS:

Mr.

Speaker, the value of the fund here is not a question in any way, shape or form.

We were quite clear. The

federal government were quite clear.

They used the terminology up to $400 million because it was contingent on the 30

per cent contribution by the Government of Newfoundland and Labrador.

We confirmed, and it is clear in the documentation, in the fall of 2013,

in October 2013, our commitment of the 30 per cent, being $120 million;

therefore, that confirmed their contribution of $280 million, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR.

SPEAKER:

The

hon. the Leader of the Official Opposition.

MR.

BALL:

Thank you, Mr. Speaker.

The Premier, I am sure, as he has read this

correspondence, also knows that much of this fund is contingent on the number of

job losses that CETA would have on the fishers of Newfoundland and Labrador.

This is a reason why the up to is critical in this discussion.

I say, Mr. Speaker, yesterday the Premier told the

public that he had a meeting with the Prime Minister today on this very issue,

but as we all know the meeting was not confirmed by the Prime Minister.

I ask the Premier: Since the meeting did not happen

today, when will it happen?

MR.

SPEAKER:

The

hon. the Premier.

SOME HON. MEMBERS:

Hear, hear!

PREMIER DAVIS:

Thank you, Mr. Speaker.

I just reiterate the communications were clear.

It was October 24, 2013, it is a public document, where we confirmed $120

million towards the industry transition fund; and, as confirmed through a

telephone conversation prior to this correspondence with the hon. Ed Fast, that

would be equal to their 70 per cent share, $280 million, Mr. Speaker.

The documentation is very clear.

This is about the future of the fishery.

This is about maintaining the fishery for many years to come, Mr.

Speaker. It is about opportunities

for rural Newfoundlanders and Labradorians and maybe the member opposite can

tell the people of the Province: Do you support Newfoundland and Labrador in

ensuring that the federal government maintains their commitment of $280 million

to Newfoundland and Labrador to ensure the future of the fishery?

Does the hon. member support that position?

SOME HON. MEMBERS:

Hear, hear!

MR.

SPEAKER:

The

hon. the Leader of the Official Opposition.

MR.

BALL:

thank the Premier for giving me the opportunity to answer that question.

Of course I support the people of Newfoundland and Labrador.

I support the fishing industry in Newfoundland and Labrador.

We always have.

What I also support, though, is that when you are going

to negotiate, you understand what you are negotiating with.

You know what you are giving away.

You do not know that, I say to the Premier.

I ask the Premier one more time: Is there a meeting

finalized with the Prime Minister or not?

SOME HON. MEMBERS:

Hear, hear!

MR.

SPEAKER:

The

hon. the Premier.

SOME HON. MEMBERS:

Hear, hear!

PREMIER DAVIS:

Mr.

Speaker, I am glad the hon. member has confirmed that because yesterday he did

not say he supported us today, he said he supported us a year ago.

Now today he is supporting us today and I thank him for his support for

the people of Newfoundland and Labrador.

We support the fishery over here and I am glad that he is supporting it

as well.

Mr. Speaker, I am glad he is saying that because the

Prime Minister

SOME HON. MEMBERS:

Oh,

oh!

MR.

SPEAKER:

Order, please!

SOME HON. MEMBERS:

Oh,

oh!

MR.

SPEAKER:

Order, please!

The hon. the Premier.

PREMIER DAVIS:

Thank you, Mr. Speaker.

I thank the member opposite again for confirming his

support because we know that members opposite did not all support this

initiative with the federal government in securing the future of the fishery of

Newfoundland and Labrador.

Mr. Speaker, I respect the fact that the Prime Minister

has a very busy schedule. I have a

busy schedule. I am sure the Leader

of the Opposition has a busy schedule.

We had indications and were given information yesterday that the Prime

Minister would be available this afternoon.

He was not able to. He is

attending a funeral in Montreal today.

We have a meeting scheduled for Friday afternoon.

SOME HON. MEMBERS:

Hear, hear!

MR.

SPEAKER:

Order, please!

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

MR.

OSBORNE:

Thank you, Mr. Speaker.

The Supreme Court, almost six years, upheld an earlier

decision of the arbitration board to compensate employees affected by the 2005

closure of thirteen provincial highway depots.

The arbitration board, again, a year and a half ago ordered redress for

the employees. These workers have

proven their case, Mr. Speaker, and government owes them wages.

I ask the minister: When will government meet its

obligations and compensate employees affected by the closure of these depots?

MR.

SPEAKER:

The

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

SOME HON. MEMBERS:

Hear, hear!

MR.

WISEMAN:

Mr.

Speaker, this government has demonstrated clearly that we respect the collective

bargaining process. We have been

very successful negotiating any number of collective agreements since we have

been in government, and we will continue to honour and respect the provisions of

those collective agreements.

Periodically, there will be some difference of opinion

about the

interpretation of that.

That is why we have arbitrations.

That is why we have court rulings.

When those arbitration hearings are held and court rulings uphold those

decisions, we honour and respect those decisions and will implement their

direction provided for in those cases.

SOME HON. MEMBERS:

Hear, hear!

MR.

SPEAKER:

The

hon. the Member for St. John's South.

MR. OSBORNE:

Mr. Speaker, the court

ordered a year and a half ago redress for these employees.

They are waiting almost ten years for compensation.

According to an ATIPP request by our office, the Province still does not know

how much this is going to cost or how much the 167 workers will receive in

compensation.

Why has

government dragged its heels, I wonder?

These workers have been waiting almost ten years for compensation.

When are you going to pay them?

MR. SPEAKER:

The hon. the Minister of

Finance and President of Treasury Board.

SOME HON. MEMBERS:

Hear, hear!

MR. WISEMAN:

Thank you, Mr. Speaker.

As I

said a moment ago, we will continue to respect decisions of, whether it is an

arbitration board or whether it is a court decision, and when we are provided

that kind of direction and settlement of the case, then we will move forward and

make the appropriate adjustments.

MR. SPEAKER:

The hon. the Member for

Virginia Waters.

MS C. BENNETT:

Thank you, Mr. Speaker.

Yesterday, the Minister of Finance said that government was consulting

economists. Well, Mr. Speaker, so

are we. The economists and the

financial experts and the people of the Province know that a mid-year update can

be done now. In fact, the Minister

of Finance said in this House on November 27 that it would be available in eight

to ten days. That was thirteen days

ago.

I ask

the minister: Will the people of the Province see the financial update before

the House closes for Christmas?

MR. SPEAKER:

The hon. the Minister of

Finance and President of Treasury Board.

SOME HON. MEMBERS:

Hear, hear!

MR. WISEMAN:

Mr. Speaker, Hansard is a

wonderful thing in the House of Assembly.

If you check it, you will find that every question is posed and every

answer is provided. If you check

Hansard from yesterday the very same question was posed, and let me give you the

same answer. I may not get the exact

same words, but the thrust will be the same.

The

people of Newfoundland and Labrador will have an update of where we will be for

March 31, 2015 before Christmas. I

stick to that commitment, Mr. Speaker.

The people will have that before Christmas.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Virginia Waters.

MS C. BENNETT:

Mr. Speaker, today the price

of oil has fallen below $65 a barrel,

whereas your government has budgeted $105

per barrel. Thousands of people and

organizations will be impacted by this government's actions, as they were in

2013 when there were hundreds of layoffs.

I ask

the minister: Will he provide the mid-year update before this House closes so we

can debate it here in the House?

MR. SPEAKER:

The hon. the Minister of

Finance and President of Treasury Board.

SOME HON. MEMBERS:

Hear, hear!

MR. WISEMAN:

Mr. Speaker, I am delighted

the member opposite has recognized the significance of the decisions that

government makes on a day-to-day basis.

Any decisions we make with respect to our budget will affect many lives

in Newfoundland and Labrador. That

is why it is critically important, that is why it is really, really important,

that we make sure we understand what we are doing.

We are

in a time of some uncertainty and some degree of unpredictability.

We have seen lots of volatility in the

price of oil in the last week or two, or ten days or so.

I say, Mr. Speaker, without knowing and having a good feel for what that

future looks like, to start making decisions about what next year's budget will

be, or adjustments we may need to make in our expenditure level prematurely,

would create a tremendous amount of unrest.

So, we want to make sure, Mr. Speaker, that when we make budget decisions

they are well informed.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Virginia Waters.

MS C. BENNETT:

Mr. Speaker, we have asked

the question repeatedly about whether or not the update will be released before

the House closes.

Now I am

going to change course, Mr. Speaker, and ask the minister: Why won't you commit

to providing a mid-year update before this House closes?

MR. SPEAKER:

The hon. the Minister of

Finance and President of Treasury Board.

SOME HON. MEMBERS:

Hear, hear!

MR. WISEMAN:

Mr. Speaker, unless the

member has a crystal ball, I do not know when the House is closing.

We are still here. No one has

given any motion that the House will adjourn.

So I say, Mr. Speaker, we may be here until Christmas.

What I

am saying, Mr. Speaker, and let me repeat it again.

What I have made is a commitment, because of the volatility we have seen

in the last ten days we want to have a clear sense of what we can expect with

respect to oil prices particularly, because that is our primary revenue stream.

We need to have a real good feel for what that price will be taking us to

March 31, 2015. Over the course of

the next little while we will be able to make sure we understand that better.

I will

reiterate my commitment. The House

and the people of Newfoundland and Labrador will have an update on our fiscal

position for this fiscal year before Christmas.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for St.

John's North.

MR. KIRBY:

Mr. Speaker, this

government's failure to support the literacy needs of Newfoundlanders and

Labradorians is nothing short of shameful.

They have cut library funding.

They have closed libraries.

They have cut library staff at public libraries in this Province.

I ask

the Minister of Education: How do you expect students to value literacy when

your government shows such disregard for it?

MR. SPEAKER:

The hon. the Minister of

Education and Early Childhood Development.

SOME HON. MEMBERS:

Hear, hear!

MS SULLIVAN:

Thank you, Mr. Speaker.

Mr.

Speaker, that might be his opinion.

It is not the opinion I am hearing back from educators, it is not the opinion I

am hearing back from AECENL in terms of early literacy, and it is not the

opinion I am hearing on the ground whenever I am out and about in the schools,

Mr. Speaker.

What I

am hearing is they are very thankful for the $2.5 million, Mr. Speaker, that we

have invested just in the last three years in terms of literacy partnerships, in

terms of early learning opportunities, particularly with our libraries.

What we also are hearing is about the positive support that comes from

our parent resource kits for early learning opportunities as well.

Mr.

Speaker, if I were to look at the K-12 system I would need more than Question

Period to be able to answer, but let me start.

where we have seen huge

SOME HON. MEMBERS:

Hear, hear!

MS SULLIVAN:

Thank you, Mr. Speaker.

I am

sure there is a follow-up.

MR. SPEAKER:

The hon. the Member for St.

John's North.

MR. KIRBY:

Mr. Speaker, if this

government truly valued literacy they would not have cut specialist learning

resource teachers who staff our libraries in schools.

Now to make matters worse, district staff are out looking at carving up

school libraries so they can jam in overcrowding classes of full-day

Kindergarten students.

I ask

the minister: How do you expect teachers to engage students in reading and in

literacy activities when you are cutting the resources that they need to the

bone?

MR. SPEAKER:

The hon. the Minister of

Education and Early Childhood Development.

SOME HON. MEMBERS:

Hear, hear!

MS SULLIVAN:

Thank you very much, Mr.

Speaker.

huge improvements as well. A million

dollars invested in resources for school libraries, classroom reading resources

that have been implemented, a wide variety of materials for all of our K-6

classrooms, numeracy and literacy specialists have been hired, Mr. Speaker.

The end result has seen a graduation rate this year of 93.7 per cent of

our graduates in Grade 12, Mr. Speaker.

We are seeing huge progress.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Cartwright L'Anse au Clair.

MS DEMPSTER:

Mr. Speaker, over half of

adults in our Province are below the literacy level required in a modern

society. Government's own labour

market plan says that current workforce levels will pose challenges in filling

new jobs. Meanwhile, Literacy NL is

facing possible closure after an ending to its federal funding.

I ask

the minister: Education and literacy are areas of provincial jurisdiction.

Why are you allowing literacy funding to sit idle in an endowment fund

while literacy organizations are on the brink of closing?

MR. SPEAKER:

The hon. the Minister of

Advanced Education and Skills.

SOME HON. MEMBERS:

Hear, hear!

MR. O'BRIEN:

Mr. Speaker, the hon. member

clearly does not understand the mechanism behind that endowment fund, to be

quite honest with you. It cannot be

used for core funding, it can be used for projects.

We have

encouraged Literacy Newfoundland and Labrador to apply in regard to those

projects. They are well able to, we

have encouraged them to, and we are waiting for them.

As a matter of fact, I anticipate getting them, and I will absolutely

support it, but it cannot be used for core funding, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Cartwright L'Anse au Clair.

MS DEMPSTER:

What about the interest, Mr.

Speaker, $400,000?

Two

weeks ago, the minister said the adult literacy plan promised almost eight years

ago will be released soon. Last

year, the acting minister said that information gathered in 2008 was outdated

and government would need to seek input from stakeholders.

I ask

the minister: Will you hold a consultation process before finalizing your plan

so that you are at least working with current information?

MR. SPEAKER:

The hon. the Minister of

Advanced Education and Skills.

SOME HON. MEMBERS:

Hear, hear!

MR. O'BRIEN:

Yes, Mr. Speaker, as the

minister for over a year now, I have met with many of the stakeholders

personally. We will be moving

forward in regard to that literacy plan very soon, I say to the hon. member.

As a matter of fact, it is a great piece of work done by a lot of the

stakeholders, the input from the stakeholders, along with the staff of my

department. We will be addressing

it.

In the

meantime, Mr. Speaker, I remind the hon. member, she said there was $400,000

worth of interest in the endowment fund, but the answer is still the same: it

cannot be used for core funding.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Torngat Mountains.

MR. EDMUNDS:

Mr. Speaker, both the

Minister of Natural Resources and the Minister of Labrador and Aboriginal

Affairs support the application from Newfoundland and Labrador Hydro to increase

residential rates for coastal Labrador communities by 11.4 per cent.

They support the process rather than the people.

I ask

the Minister of Labrador and Aboriginal Affairs: Why are you abandoning the

people of Labrador in favour of a process that will see Labrador residents hit

with the largest per cent of increase?

MR. SPEAKER:

The hon. the Minister of

Labrador and Aboriginal Affairs.

SOME HON. MEMBERS:

Hear, hear!

MR. RUSSELL:

Thank you, Mr. Speaker.

Time and

time again people from across the way accuse me and the Minister of Natural

Resources of supporting this rate increase.

Government is not making this rate increase, Mr. Speaker.

This is about Hydro going to the regulator to look for an increase to

cover their costs. We support the

viability of having reliable power put to the people on the North Coast of

Labrador who need it.

Just

last year the Northern Strategic Plan, managed through my department, put $2.2

million into subsidies for those people that taxpayers all across this Province

cover. They have to cover the cost

of the product and service that is issued to them.

It is the same everywhere, all over Canada.

It is

not about abandoning people. It is

about making sure that hydro is viable and that people get the power they need.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

Order, please!

The hon.

the Member for Torngat Mountains.

MR. EDMUNDS:

Thank you, Mr. Speaker.

It is

definitely not the answer that I was looking for.

Mr. Speaker, businesses will see a 20 per cent increase in rates that

will no doubt be passed onto the consumer who already pays enormous costs for

food.

I ask

the Minister of Labrador and Aboriginal Affairs: Do you also support NL Hydro's

application to increase a 20 per cent rate in hydro to small businesses along

the coast?

MR. SPEAKER:

The hon. the Minister of

Natural Resources.

SOME HON. MEMBERS:

Hear, hear!

MR. DALLEY:

Mr. Speaker, the member time

and time again has stood in this House advocating for the people of coastal

Labrador. I certainly support that,

as do members on this side of the House.

We have many, many examples of what we have done as a government.

Let's be

very clear, Mr. Speaker, what is important here is that they are able to get the

power when they need it. Mr.

Speaker, everywhere in this Province everywhere there are challenges to pay

their bills, but everywhere you have to pay for the service that comes and it is

no different on coastal Labrador.

The only

difference on coastal Labrador, Mr. Speaker, which this government supports, is

that we subsidize the rates so that the business community only pays 32.5 per

cent of their bill. Granted, yes,

the potential increase is high, but we will be there to support them with

subsidies, like we have always done.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

Order, please!

The hon.

the Leader of the Third Party.

MS MICHAEL:

Mr. Speaker, the fastest

growing demographic in this Province is seniors.

Some face an old age with little income and challenges in literacy and

navigating the system. They are

vulnerable to isolation and abuse.

I ask

the Premier: Will his government create an independent office of the seniors'

advocate, similar to those of the citizens' advocate and the Child and Youth

Advocate?

MR. SPEAKER:

The hon. the Minister of

Seniors, Wellness and Social Development.

SOME HON. MEMBERS:

Hear, hear!

MR. JACKMAN:

Thank you, Mr. Speaker.

Mr.

Speaker, the demographic that the member talks about is certainly one of the

reasons that the Premier established a new department.

It is to deal with the issues that seniors face on a daily basis.

Right

now, we are not considering implementing a seniors' advocate.

Mr. Speaker, we think there are many avenues that seniors and all people

of the Province have in which they can get their issues addressed.

We will

continue to support seniors through the programs that are available through

Newfoundland and Labrador Housing. I

met with Newfoundland and Labrador Housing yesterday.

We have an entity there that will support all people of the Province but,

in particular, seniors a focus of that division and our government.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of the

Third Party.

MS MICHAEL:

Thank you, Mr. Speaker.

I ask

the minister: Why won't they show the seniors of the Province that they are

concerned enough about them to put in place an independent advocate focused on

their issues?

MR. SPEAKER:

The hon. the Minister of

Seniors, Wellness and Social Development.

SOME HON. MEMBERS:

Hear, hear!

MR. JACKMAN:

Mr. Speaker, as I have said,

there are avenues that seniors have to address their needs.

Through Mr. Fleming's office, the Office of the Citizen's Rep, is one

example where seniors can have their issues addressed, should they need them.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for St.

John's Centre.

MS ROGERS:

Mr. Speaker, Cyra Rees

submitted a Charter application challenging the Vital Statistics Act through the

Supreme Court of Newfoundland and Labrador.

Our act requires a trans person undergo reassignment surgery and a doctor

verify their anatomy before their birth certificate gender markers can be

changed. Court challenges forced

Ontario and Alberta to change their act.

Manitoba changed theirs willingly because it was the right thing to do.

I ask

the Minister of Justice and Attorney General: Will she do the right thing now

and change our Vital Statistics Act?

MR. SPEAKER:

The hon. the Minister of

Service Newfoundland and Labrador.

SOME HON. MEMBERS:

Hear, hear!

MR. CORNECT:

Thank you, Mr. Speaker.

I thank

the hon. member across the way for the question.

In fact, I was waiting for it last week, I tell the hon. member.

Mr.

Speaker, protecting the rights of all residents of Newfoundland and Labrador,

including the transgender community, is of the very utmost importance to this

department, to this Premier, and to this government.

This government believes that everyone has the right to be free from

discrimination. We are committed to

ensuring there are no unnecessary barriers in accomplishing this.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for St.

John's Centre.

MS ROGERS:

Mr. Speaker, I ask the

minister: Why would she force our people to go to court for a basic human right

about safety and dignity for trans people?

MR. SPEAKER:

The hon. the Government House

Leader.

SOME HON. MEMBERS:

Hear, hear!

MR. KING:

Thank you, Mr. Speaker.

The

member opposite would know, first of all, this is an issue currently before the

courts, so we are not about, at all, to entertain a discussion in the House of

Assembly on the merits of that case.

What I

will say to the member, though, is she ought to recognize it was our government

who made significant investment into changing the Human Rights legislation of

this Province. I happened to be the

minister of the day who did that, just last year, to provide for greater

protection for people such as the one individual she is describing.

certainly firmly believe that people in society have rights and their rights

ought to be protected, but we are not about to debate the merits of an

individual case that is before the courts here on the floor of the House of

Assembly.

MR. SPEAKER:

The hon. the Member for St.

John's Centre has time for a very quick question.

MS ROGERS:

Mr. Speaker, I ask the

minister: Will she change the Vital Statistics Act, given that this is a safety

issue for trans people, individuals in the Province everywhere?

MR. SPEAKER:

The hon. the Government House

Leader has time for a quick reply.

MR. KING:

Thank you, Mr. Speaker.

certainly will continue to do due diligence of this particular file, as we have

been doing for many years. That case

that is being discussed here today, we will await the outcome of the court.

If there are some recommendations there that suggest we ought to change

the legislation, then we will certainly follow the recommendations of the court.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The time for Question Period

has expired.

MR. JOYCE:

A point of order.

MR. SPEAKER:

The hon. the Member for Bay

of Islands, on a point of order.

MR. JOYCE:

Mr. Speaker, in questions to

the Minister of Education, she clearly read from documents which she handed to

the Minister of Health. So I ask

that those documents be tabled that she was reading from, that she handed to the

Minister of Health.

MR. SPEAKER:

Order, please!

The hon.

the Government House Leader, to the point of order.

MR. KING:

Mr. Speaker, I think it was

very obvious

MR. SPEAKER:

Order, please!

MR. KING:

I think it is very clear to

people here, as happens in Question Period every single day, when ministers

stand on their feet they often take papers up, they reference papers, they

glance down at notes. I think the

rules of order that guide this House are very clear, Mr. Speaker, that unless

ministers read directly verbatim from a paper we are granted the privilege of

glancing from documents as a point of reference, and I think that is what the

Minister of Education did here today.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

Order, please!

The

rules of the House are clear. If

ministers, during Question Period, read directly from documents and it is

requested that those documents be tabled, then the documents are to be tabled.

As the Chair, I did not notice that the minister read directly from those

documents. If she did, I will ask

her to table them.

Presenting Reports by Standing and Select Committees.

Tabling

of Documents.

Notices

of Motion.

Notices of Motion

MR. SPEAKER:

The hon. the Minister of

Municipal and Intergovernmental Affairs.

MR. HUTCHINGS:

Thank you, Mr. Speaker.

I give

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

An Act To Amend The

Municipalities Act, 1999. (Bill 41)

MR. SPEAKER:

Further notices of motion?

Answers

to Questions for which Notice has been Given.

The hon.

the Government House Leader, are you going to ask leave to

MR. KING:

Yes, Mr. Speaker.

apologize. The noise caught me a

little bit.

With

leave from my colleagues opposite, Mr. Speaker, I would like to move two bills

forward for first reading.

MR. SPEAKER:

Does the hon. the Government

House Leader have leave?

AN HON. MEMBER:

Leave.

MR. SPEAKER:

Leave.

The hon.

the Government House Leader.

MR. KING:

Thank you, Mr. Speaker.

I would

like to call Motion 3, to ask leave to introduce a bill entitled,

An Act To

Amend The Pensions Funding Act And The Public Service Pensions Act, 1991.

(Bill 39)

So moved

by me, seconded by the Premier, that the bill be now read the first time.

MR. SPEAKER:

It is moved and seconded that

the hon. minister shall have leave to introduce a bill entitled,

An Act To Amend

The Pensions Funding Act And The Public Service Pensions Act, 1991, Bill 39, and

that the said bill be now read a first time.

All

those in favour, 'aye'.

SOME HON. MEMBERS:

Aye.

MR. SPEAKER:

All those against, 'nay'.

Carried.

Motion,

the hon. the Minister of Finance and President of Treasury Board to introduce a

bill,

An Act To Amend The Pensions Funding Act And The Public Service Pensions

Act, 1991, carried. (Bill 39)

CLERK:

A bill,

An Act To Amend The Pensions Funding Act And The Public Service Pensions

Act, 1991. (Bill 39)

MR. SPEAKER:

This bill has now been read a

first time.

When

shall the bill be read a second time?

MR. KING:

Tomorrow.

MR. SPEAKER:

Tomorrow.

motion, Bill 39 read a first time, ordered read a second time on tomorrow.

MR. SPEAKER:

The hon. the Government House

Leader.

MR. KING:

Thank you, Mr. Speaker.

Once

again, I ask leave to introduce a bill entitled,

An Act To Modify Eligibility

For Other Post-Employment Benefits.

(Bill 40)

So moved

by me, seconded by the Premier, that the bill be now read the first time.

MR. SPEAKER:

It is moved and seconded that

the hon. minister shall have leave to introduce a bill entitled,

An Act To

Modify Eligibility For Other Post-Employment Benefits, Bill 40, and that the

said bill be now read a first time.

All

those in favour, 'aye'.

SOME HON. MEMBERS:

Aye.

MR. SPEAKER:

All those against, 'nay'.

Carried.

Motion,

the hon. the Minister of Finance and President of Treasury Board to introduce a

bill,

An Act To Modify Eligibility For Other Post-Employment Benefits,

carried. (Bill 40)

CLERK:

A bill,

An Act To Modify

Eligibility For Other Post-Employment Benefits.

(Bill 40)

MR. SPEAKER:

This bill has now been read a

first time.

When

shall the bill be read a second time?

MR. KING:

Tomorrow.

MR. SPEAKER:

Tomorrow.

motion, Bill 40 read a first time, ordered read a second time on tomorrow.

MR. SPEAKER:

Petitions.

Petitions

MR. SPEAKER:

The hon. the Member for

Torngat Mountains.

MR. EDMUNDS:

Thank you, Mr. Speaker.

To the

hon. House of Assembly of the Province of Newfoundland and Labrador in

Parliament assembled, the petition of the undersigned humbly sheweth:

WHEREAS

Labrador's coastal communities already pay extremely high hydro rates; and

WHEREAS

small businesses are struggling to stay in operation against rising costs; and

WHEREAS

Nalcor, a Crown corporation, is proposing an 11.4 per cent increase to

residential hydro rates and 20 per cent to businesses;

WHEREUPON the undersigned, your petitioners, humbly pray and call upon the House

of Assembly to urge government to work with Nalcor to establish rates that are

fair and consistent.

As in

duty bound, your petitioners will ever pray.

Mr.

Speaker, I have risen on this a couple of times, and I have actually asked

questions on it earlier today. It is

the first time I have heard some encouragement from the government.

I heard the Minister of Natural Resources, and I quote: We will be there

to support them as we have always been.

Mr. Speaker, I will hold them to that.

Before I

get there, I would like to talk about a 25 per cent increase that was put on the

table by Nalcor for Lake Melville and Labrador West.

The question is, why was it pulled off the table?

I will tell you why. Because

the people in Central Labrador and the people in Labrador West did not like it,

so it was taken off the table.

This

government supports now to go after the crowd who are living up on the coast

with diesel-generated power. It is

okay to charge them? This government

talks about fairness and equity. In

this case, Mr. Speaker, I do not see it.

I do not see it at all. I

look forward to the minister strengthening his remarks where he is saying yes,

we pulled it off the table for Central Labrador and Labrador West and I think we

can do it again for everyone in the Province who has to pay outrageous rates.

I do not

have a problem with 1.9 per cent. I

do not even have a problem with 2.9 per cent.

What I do have a problem with is 11.4 per cent and 20 per cent.

That is what I would like to see this government negotiate with Nalcor

and put a proposal to the PUB that shows fairness and equity everywhere in this

Province, Mr. Speaker, and not isolated to areas that already pay extremely high

amounts.

Thank

you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

Order, please!

Orders of the Day

Private Members'

Day

MR. SPEAKER:

The hon. the Member for Port

de Grave.

MR. LITTLEJOHN:

Thank you, Mr. Speaker.

I move,

seconded by the Member for Bellevue:

WHEREAS

the provincial government announced in the 2014 Budget in greater detail on

November 4, 2014 that it will invest in two venture capital funds: Venture

Newfoundland and Labrador and Build Ventures;

BE IT

RESOLVED that this hon. House supports the provincial government's decision to

help further diversify our economy and further strengthen the business climate

of our Province by investing in venture capital funds.

That is

the motion to be debated today, Mr. Speaker, and I thank you for recognizing me

today.

Mr.

Speaker, it is an honour today to rise in this House and provide my colleagues

with some details on our venture capital announcement of November 4.

The announcement was done at the Common Ground.

Mr. Speaker, one of the things about doing all this is that sometimes

when you go to represent one of the ministers your interest gets piqued in an

area, and this is one of the areas.

From a recent visit to Common Ground I got my interest piqued in venture capital

and entrepreneurship in the Province of Newfoundland and Labrador.

Mr.

Speaker, for those who do not know, the Common Ground is an entrepreneurial

incubator where our up and coming business innovators can come together and

build their businesses. Actually,

just this morning, Mr. Speaker, as a follow-up to that, the Executive Director

of Common Ground, Ms Jennifer Smith, met with myself and the Minister of

Business, Culture and Rural Development.

Mr.

Speaker, one of the things that hit me when I was talking to Ms Smith this

morning was the fact that she said, and I paraphrase, but it was: this city is

vibrating with opportunities. The

Common Ground right now is serving as a hub for over thirty entrepreneurs in the

city and in this Province.

Ms Smith

talked eloquently about the fact that there are great opportunities and great

things happening for Newfoundland and Labrador, and having this fund, Mr.

Speaker, will be great opportunities for some of these incubator businesses to

grow and expand. Now, a lot of the

businesses are in the technology sector, but the Premier said back in November

it is an exciting time to live and work in Newfoundland and Labrador.

Listening to Ms Smith this morning, it certainly is an exciting time to

be living in Newfoundland and Labrador.

Once in

a while I think maybe there are the people opposite may not think, but the

Province is going through a pretty prosperous time.

The business opportunities and business optimism remains fairly high in

this Province. In fact, if you talk

to small business owners in our Province, they are very optimistic maybe the

most optimistic in the country.

Mr.

Speaker, I can talk about my own local area and I can talk about some of the

small businesses there that have invested and built new buildings.

I think of that as well.

Again, there is great optimism in the Province for business.

What we

are trying to do here and what we have been trying to do, we have been trying to

maximize the benefits of our non-renewable resources to invest in our programs,

services, and our infrastructure.

Mr. Speaker, we have also been looking at industry to support innovation and

business development. By supporting

innovation and business development, this would lead to diversity of our

enterprises, which is crucial for the sustainable growth of the Province.

As well,

we have to leverage some of our current resources to help create an economy that

is stable and sustainable over the long term.

Mr. Speaker, that is a challenge.

We hear all the time from members opposite that we are not diversifying

our economy, we are not doing enough, but we have to be able to build diversity

in our economy so that we have a sustainable future.

We also

know that our Province has to be more than just oil or minerals.

Mr. Speaker, it has to be about our people.

It has to be about the ingenuity of our people.

It has to be about the work ethic of our people, and it has to be about

their ability to draw and their drive to succeed.

That will always prove to be this Province's greatest resource, is the

people, those young entrepreneurs who are prepared to go out there, take risk,

and develop and grow new business in our Province.

talking to Ms Smith, that is alive and well.

Anybody who wishes to go to Common Ground any time of the day or night,

by the sounds of it from Ms Smith, you will see those young entrepreneurs in

action.

Mr.

Speaker, in recent years, this Province's entrepreneurs have achieved remarkable

success across a variety of sectors.

I just want to take a moment to highlight two or three of these success stories.

Much of

the success has been in our technological industries.

Mr. Speaker, I was interested to learn about Sequence Bio, an early stage

company that is at the forefront of genomics in their new drug research.

Dr. Tyler Wish is one of the co-founders of this company.

When we made these announcements, he said, It is positive to see the

partners involved in the creation of these funds come together to address the

gap in the supply of early stage capital for companies like mine.

He said, Today's investment evens the playing field for Newfoundland

companies.

Now, Mr.

Speaker, that is fairly significant.

This work would not be possible without successful partnerships and the

world-leading expertise that has taken up residence in Newfoundland and Labrador

over the past several years. Their

efforts will not only help to establish the biotechnology sector in Newfoundland

and Labrador, but it will also lead to better health care and improved patient

outcomes.

We spend

a lot of time in this House talking about the need to improve our health care

and to have better outcomes, and also the need to spend our money more wisely.

With Dr. Tyler Wish and with this information, we will have better health

care and improved patient outcomes.

Mr.

Speaker, another company that I was very interested in, and when I did some

research, was Verafin. Verafin was

established in 2003, and Verafin was established by three young gentlemen.

These gentlemen now are North American leaders in fraud detection

software, with their product being used in over 1,000 banks and credit unions

worldwide.

This

company, this idea, that grew out of four students from Memorial University back

in 2003 is now worth some $150 million.

Mr. Speaker, $150 million this company is worth.

This is a great example of how entrepreneurs in our Province have created

success with the backing of angel investors and venture capital investment.

When we talk about Verafin we are also talking about a lot employment

offices setup in the United States and other parts of Canada.

The last

example I want to use is SubC Imaging.

This came out of the Genesis Centre.

It is a graduate of the Genesis Centre.

The Genesis Centre is a centre at Memorial University.

The Genesis Centre is doing some great work.

SubC Imaging is doing some great work in innovative and ground-breaking

business that is operating right here in our Province.

SubC is leading edge in reliable solutions for video, image, and lighting

requirements in the offshore and SubC markets.

Mr.

Speaker, earlier today I was looking at a list and SubC basically works around

the world. They have suppliers and

distributors all over the world. It

is amazing to think that a small company, born out of Newfoundland and Labrador,

has distributors throughout the world for video and image lighting requirements

in the offshore and SubC markets.

Mr.

Speaker, that is great. That is

wonderful. SubC is now employing

eleven full-time staff, operating two offices, and they are a great example of

an innovative, high-growth enterprise that would be a great fit for venture

capital like we announced in November.

We did a

lot of consultation in the Province with investors who want to help support this

industry, such as the Newfoundland and Labrador Angel Network and other

stakeholders such as Memorial University.

Memorial University, right now, exceeds $100 million in research funding,

placing them in the top fifteen institutions in the country R&D research

coming out of our university. Our

government is determined that it is imperative we expand the source of finances

required to establish and sustain entrepreneurial success right here in

Newfoundland and Labrador.

This

government has planned and will expand the funding opportunities for new

businesses in this Province, thereby expanding opportunities for all

Newfoundlanders and Labradorians.

Mr. Speaker, we know what a positive difference access to venture capital can

make to both new and established entrepreneurs.

The three examples I gave, without venture capital and without somebody

believing in them and without somebody investing in them, these businesses would

have never got off the ground.

I was

intrigued by this stat that I saw. I

took this out of an

article I saw, Mr. Speaker.

In 2013, $2 billion in venture capital was invested in Canadian

companies. That was 31 per cent more

than the year before.

Mr.

Speaker, I was also struck with the fact that venture capital-backed companies

outperform those or outcompete and outlast those that are not backed.

Nearly 130 per cent, almost two-and-a-half times the sale growth is in

venture company-backed firms versus non-backed firms.

Those are very interesting stats.

Mr.

Speaker, that is why in November this government invested a total of $20 million

in two venture capital funds. One

venture capital fund, $10 million in Venture Newfoundland and Labrador.

By the government putting in $10 million, we also leveraged another $2

million from the business development corporation, and also $2.5 million in

private investors through the Angel Network.

Our investment of $10 million got us about $14.5 million in Venture

Newfoundland and Labrador. We also

put $10 million in a Build Ventures Fund.

Mr.

Speaker, the Build Ventures Fund was a pre-existing fund.

It was privately managed by the Atlantic Canadian Regional Venture Fund

currently partnered with the business development corporation, as well as our

sister provinces in Atlantic Canada.

The Government of Nova Scotia, the Government of New Brunswick, and the

Government of Prince Edward Island, along with other private sector investors.

That put the total investment in that venture capital fund to over $60

million.

This

Build Ventures supports early stage companies that have already had demonstrated

sales. They have already had

demonstrated sales, but they require, Mr. Speaker, some extra capital to rapidly

expand and capture significant market share.

This fund was started in 2013, making equity investments in early stage

technology-based companies that have successfully gained early customers in what

is expected to be a large global market.

Mr.

Speaker, while there is no guarantee in the Build Ventures Fund that we would

get a specific amount, the Government of Newfoundland and Labrador is confident

that the Province will receive investments equal to or greater than the share of

the total fund capital. In talking

to Ms Smith, and being at the Common Ground a number of weeks back, I have no

doubt that we will get our share or more of that particular fund.

Additionally, Mr. Speaker because my time is running down, I just want to be

quick our government acted as a limited partner in the Venture Newfoundland

and Labrador Fund providing a broad spectrum of direction to the fund manager.

We are not involved in the day-to-day operations but we do have an

arm's-length interest. Mr. Speaker,

the venture capital model of investment has been a primary facilitator of the

growth in the knowledge-based sectors in recent decades and it is anticipated

that this will remain the case.

Mr.

Speaker, I will get a chance to finish my comments at the end of the debate.

I look forward to the comments that are going to be made by all hon.

members on both sides of the House.

Thank

you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Virginia Waters.

MS C. BENNETT:

Thank you, Mr. Speaker.

It gives

me great pleasure to stand in this House today and participate in this debate of

government's private member's resolution as it relates to venture capital.

I was

particularly pleased that the member opposite spoke about Verafin, which proudly

resides in the District of Virginia Waters.

I believe it is the largest employer, certainly the largest exporter that

I have the pleasure of having in my district and representing here in the House

of Assembly. I was certainly pleased

to hear him speak about Verafin.

I was

also interested in his initial comments when he spoke about visiting Common

Ground and his interest being piqued. For

me to be able to stand here and speak to this private member's resolution, my

interest was piqued back in 1996.

What I

would like to do today is talk a little bit about that experience in the area of

venture capital, but I thought first what I would do is take the opportunity

just to ground us in exactly what venture capital is.

As I am

sure the members opposite understand, there are six stages in a venture round of

financing for venture capital. There

is the seed money, which goes to those entrepreneurs who are desperately trying

to figure out if their idea is marketable, whether or not their idea can

actually hit the ground running and turn a profit.

Seed funding often comes from angel investors, which I am very pleased to

say I was a member of that community and one of the initial investors on the

Newfoundland and Labrador Angel Network.

Other

ways of funding, seed funding include equity crowd funding, which is actually

something that Common Ground did a few weeks ago when they tried to come up with

some funding to pay for their operating costs.

There is also an emerging option for seed funding for new start-ups.

Early

stage start-ups require very different supports and funding, and have expenses

related to marketing and product development.

Then as you move through the product development stage into early sales

and manufacturing the products, funding is needed to actually put the idea or

the widget, as we like to call it into operations.

Working

capital is required at the stage where companies are selling the product but

have not yet turned a profit. As I

am sure many people in this House of Assembly would understand, just because you

have a great idea, just because you can make it, just because it is profitable

to make, it does not mean you can make it fast enough for your customers to buy.

That working capital is important.

Then

there is the issue of mezzanine funding, which is about those companies and I

would argue like Verafin who have the potential and have grown substantially

over the last number of years.

Companies that are at a place where their employment size has increased

drastically, and they have great opportunities ahead of them.

experience with NLAN was very valuable.

I had the opportunity as an angel investor to invest in three different

investments. Each of those

investments, one was related to an IT product, one was related to an ocean tech

product, and another one was related to a business processing system.

Each of those investments provided me an opportunity to understand from

the investor's side why venture capital was a place where as a Newfoundlander

and Labradorian I wanted to put my money into businesses in Newfoundland and

Labrador.

I will

also say, I was a part of the consultation that NLAN undertook to lobby

government to implement the changes that it has implemented.

If my memory serves me correct, I was part of those consultations back in

2010. I am also pleased to stand

here as an angel investor, an investor in it with a business partner, with a

young woman who is a passionate entrepreneur and we have been working together

to grow her business.

All of

these experiences, as well as experiences I have had in other provinces,

highlight the huge differences between the investment environment in

Newfoundland and Labrador, and what it has been up to this point, and what

programs Newfoundland and Labrador did not have for private investors to keep

their money here in this Province.

Venture

capital is not only restricted to technology investment.

It is important to any entrepreneur who is creating a new service, a new

product and developing a market, to sell that product.

Not only have I experienced the investment side as an investor and

somebody who has taken my own equity and invested in companies, I have to go

back to 1996 when as a young entrepreneur I had a small bit of money and I went

out and found a venture capitalist who helped me buy my first business.

Part of that purchase

included the establishment of a board of directors that

helped coach and mentor me along the way.

When you start your own business, as many people in

this House of Assembly know, you really only have limited options.

You can use your own money; you can do what is called bootstrapping,

which is really taking your operations and funding it from the money that you

are making right in your cash register; you can borrow but the reality is if

you do not have a track record, like many of those young entrepreneurs who are

working in Common Ground right now, if you do not have a track record to borrow,

then the banks and other financial institutions typically do not want to lend to

you or you need to borrow from others; or you need to bring in cash into your

company from other investors.

What venture capital does is it allows young, eager

entrepreneurs and I would argue, like me to grow our businesses into

something that is very successful employing thousands of people.

For the business operator there are definitely advantages.

The difference between money that you borrow and money that goes into

your company that is related to venture capital is that oftentimes it is patient

capital, as both the original owner and the venture capitalist believe in the

long-term value of the company and growing the value long term.

With that money and that investment, comes valuable

expertise and advice and industry knowledge from the venture capitalist.

It could be knowledge around accounting, human resource management,

market development, exporting, how to deal with patent legislation a myriad of

things that come as a result of not only the investor providing money, but the

investor also providing knowledge.

One of the keys to venture capital, quite frankly, is

that the investors typically provide mentorship, not only to the owner of the

business but even, more importantly, to the management group who operates that

business. One of the stunning things

I think about venture capital investments is the fact that it has been proven to

have a substantial impact on job creation.

Two per cent of the US GDP a full 2 per cent is driven by venture

capital. The ability for the US

investors to invest their money back into US companies, creating jobs.

So, obviously I am supportive of venture capitalists and the work that

the Province has undertaken.

There are advantages to the economy.

It has an impact on job creation.

Now, I am not going to stand here and not say that venture capital is not

risky. It requires that both sides

of the agreement recognize the risk.

There is a loss of control for the operator, or the owner of the idea, and there

is also the risk for the investor of failure.

Three failures in an angel investing experience for me,

it was an investment in the community and an investment to try to create jobs in

Newfoundland and Labrador. It was an

investment that I was proud to make, but it is a risk of venture capital.

What it does bring, when you have outside

investment coming into your company, is increased accountability and scrutiny.

Some would argue this extra level often provides an opportunity to

further risk mitigate.

As I was preparing for this debate today, and I looked

at the chronological order of what has been discussed, I have to say, as a

Member of this House of Assembly, I am confused.

On March 27, in Budget 2014, government announced a $10 million venture

capital fund, but during May 17 Estimates, a colleague of mine asked the

question to confirm that the fund would use existing money.

So this is not new money.

This is money that is already budgeted under the Business Investment Fund and

that the $20 million is over time.

It is not this year; it is over time, meaning several years.

On June 2, when we actually debated the bill, I asked

for specifics around the tax credit because part of the uncompetitive platform

that we had in Newfoundland and Labrador was that other jurisdictions had

already implemented tax credits to keep their investors' money in their

province, something that this government had not done.

On November 4, government released a press release

stating that the investment fund would be $20 million.

Well, Mr. Speaker, I have been around the venture capital business for a

long time, and the reality is very little of that capital will even be available

for the businesses that need it now.

I would ask: What is in place for the businesses that

need it now? Those young

entrepreneurs who are working down in Common Ground today, who are creating the

next best widget that is going to create a lot of jobs in Newfoundland and

Labrador, need access to capital. I

would ask: What is in place today?

The funds government has announced will take time to percolate through the

system and ultimately end up in the hands and invested in a way that provides

that support to those young entrepreneurs.

So, I think it is a good step, but it is step that does

not wipe away this government's failure in the past.

What has the return been on the so-called $2.1 million they have

allegedly invested in business, development and attraction?

When the bill was introduced, former Minister Charlene

Johnson said this was a very unique, made in Newfoundland fund.

Venture capital and private equity in the industry has been around since

the 1940s and is certainly not unique to Newfoundland and Labrador.

Quite frankly, I would argue that this is another case

of spin before fact, similar to what we have seen in the House on the alleged

CETA deal over the last few weeks, where telling a story is more important than

the facts and delivering the results. Then

Minister Johnson went on to say that we were growing on par our technology

industry. Mr. Speaker, there is a

huge potential of growth that lies in our technology sector and other sectors

and other ideas that are based in business.

Other provinces have been way ahead of us at a time

when this government touted massive investments to advance business and support

economic diversification, yet they struggled to get the money out the door and

put policies in place that created the environment for businesses to succeed.

Mr. Speaker, I support the intention of what the government is trying to

do, but I will, and my colleagues will, continue to vehemently question their

ability to turn their intentions into actions.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR.

SPEAKER (Cross):

The

hon. the Member for the District of Exploits.

SOME HON. MEMBERS:

Hear, hear!

MR.

FORSEY:

Thank you, Mr. Speaker.

I appreciate the opportunity to speak on the private

member's motion today brought forward by my colleague the Member for Port de

Grave. I would like to make a

comment to the Member for Virginia Waters, Mr. Speaker.

I am certainly enthused with the fact that she had the opportunity to

become an angel investor. A lot of

us do not have that kind of money; we cannot do it.

I am sure that if we did, we would love to be able to do it.

I think for her it was a great opportunity to help some small industry or

junior entrepreneurs to start up their business.

From way back when I was in business, Mr. Speaker, it

was a struggle back then, but we had nowhere to go other than the chartered

banks and institutions like that, and you paid through the nose for it.

For the information of the Member for Virginia Waters, in Budget 2014 our

government committed to $17.7 million to help grow and compete in the markets;

$9.2 million for regional development through the Regional Development Fund;

$3.6 million to support growth and innovation for small and medium-sized

business through the

Business Development Support Fund.

Some

quick facts, too, Mr. Speaker: through Budget 2014 approximately $72 million

will be invested in continuing tax credits and incentives for businesses which

include initiatives such as small business tax, Manufacturing and Processing

Profits Tax Credit, Direct Equity Tax Credit, Economic Diversification and

Growth Enterprise Program.

Are we

doing for business? Yes, we are.

There are times we did not have to do it because the economy has been so

robust that it was not necessary.

When the opportunity came to invest in venture capital, as a government, we took

that opportunity to do so.

Mr.

Speaker, also, to further strengthen a competitive tax environment for small

business in the Province, effective July 1 of this year the provincial

government decreased the small business corporate income tax rate to 3 per cent.

We are now tied with Nova Scotia for the lowest rate in Atlantic Canada.

I think as a government we have been certainly investing in business in

the Province of Newfoundland and Labrador.

A couple

of examples that came from that and I would like to also get into more of the

venture capital, but we are talking investments.

We are talking investments by this government and what we are doing for

business and junior business, Mr. Speaker.

Just the

rural broadband alone that we invested was $1.33 million for Fortune Bay Cape

La Hune. Dynamic Air Shelters in

Grand Bank; the Member for Grand Bank, I am sure, is quite familiar with Dynamic

Air Shelters. I am sure he is quite

pleased that our government was able to invest in this type of business, Mr.

Speaker. I do not know the staff or

how many employees, but I am sure it is probably between sixty and eighty, or

eighty and ninety people employed there.

I think the investments by this government are certainly showing through

in the workforce that these companies are producing.

The

Genesis Centre, funding of $202,818.

That is for ocean technology start-ups at MUN.

There were also four funding approvals for Grey Island, Whitecap

Scientific, ExtremeOcean Innovation, and EMSAT Corporation, Mr. Speaker.

I think we have been doing very well as a government, and our investment

in private industry.

In the

meantime, as a government we have to foster a culture of creative thinking, Mr.

Speaker. This venture capital is

just another step and going to help the young, junior entrepreneurs to move

forward. Venture capital as the

Member for Virginia Waters spoke on it and explained it somewhat because she is

familiar with it is a more high risk fund.

What we decided to do as a government was to invest $10 million in

Venture Newfoundland and Labrador and $10 million into Build Ventures.

The $10

million in Venture Newfoundland and Labrador and of course there was a

commitment of $2 million by the Development Bank of Canada, plus there is

anticipated investment from private investors.

That particular fund in itself is for start-up.

It is at the beginning stages of when a business is thought of and the

ideas are there, but they really need the money to get started.

That particular fund is for Newfoundland and Labrador.

The

Build Ventures fund is on a broader scale.

It is more or less what is it we call that one, the

Shark Tank . What is the

other one?

MR. RUSSELL:

Dragons' Den .

MR. FORSEY:

Dragons' Den .

That is the one. Thank you

the Member for Lake Melville.

In the

Dragons' Den y ou go in and you present

your case. You have already got an

industry and a business. You have

made some steps forward, but you need that extra funding to get to the markets

to improve on your sales and your industry.

That is what this fund is for, this Build Ventures.

We are

becoming a part of a group that is also participated in by the provinces of Nova

Scotia, New Brunswick, and Prince Edward Island, the Business Development

Corporation of Canada, Business Development Bank of Canada, and also a

technology venture corporation, Mr. Speaker.

This total fund will probably be around $60 million that can be accessed

through that particular fund.

It is

commercially managed, which means there is a committee and a board where people

will look at that particular application from the industry or the business that

is looking for the fund. They then

decide on whether or not they will invest in it.

Most likely they will because it is more of a risk taker, but also it is

the fact that I see the Member for Bay of Islands is listening attentively.

Thank you very much today. It

is the fact that sales are two-and-a-half times that of non-backed firms.

Firms

that are not backed by venture capital, the sales are not as great.

The sales by backed firms of venture capital are two-and-a-half times the

size of non-backed firms. The

employee growth is over 50 per cent greater.

That is an amazing fact, Mr. Speaker.

We have been listening closely to the start-up business community and

investors who have indicated that greater access to venture capital will support

innovative companies operating in Newfoundland and Labrador, and lead to

exciting new opportunities.

Another

fact and some important information I guess we should get out there, Mr.

Speaker, is that GrowthWorks manages funds by the following core principles.

That is who will be managing this fund is GrowthWorks.

The following core principles: structure strategic investments in

growth-oriented companies, value portfolio assets conservatively, build vital

industry connections, and minimize risk through diversification.

GrowthWorks have specialized teams in each core sector to identify and structure

investments. As I was referring to

earlier with the Dragons' Den , there

are different investors there and they have different ideas, but they have all

kinds of ways to market and promote certain products by certain business.

These

teams also help the companies with GrowthWorks managed funds to grow with

strategic management supports and advice.

Companies get guidance from experienced leaders and in turn, the funds

investors know that these companies receive direction to help them thrive.

Basically, they are getting not only funding, but they are also getting

support, whether it is through

administration or human resources and so on.

They provide that as well as the funds.

Also, I guess noteworthy recently Tom Hayes, President

and CEO of GrowthWorks Atlantic Ltd., said that he believes this time is right

for public and private investors to create this pool of capital for budding

entrepreneurs. He is very pleased to

be involved in this exciting opportunity.

That is what we are doing, Mr. Speaker, doing the very same as what is

being expected and what they are looking for.

Mr. Speaker, also in support of the venture capital,

Dr. Tyler Wish, the co-founder of Sequence Bioinformatics, a local company that

develops applications for personalized medicine, is applauding government's

investment.

As I was listening to the Member for Virginia Waters,

in a roundabout way, I think, she was applauding the very same thing because she

understands venture capital and she knows how tough it is to get going in

business and in industry, especially if you are in junior start-up and you are

in more of a high-risk business you need that support.

Most likely, most agencies like chartered banks will not look at you

anyway.

Nancy Healey is the CEO of the St. John's Board of

Trade and sponsor of the Newfoundland and Labrador Angel Network of investors,

so she is quite aware of what venture capital does and what the Angel Network

does. She has said the early-stage

capital is essential to building new businesses, which is important.

Mr. Speaker, we have mentioned angel investors a number

of times here today, but unlike angel investors, venture capital Newfoundland

and Labrador is for start-up companies.

This fund is fueled by institutions, supporting information technology,

ocean technology, and manufacturing, so it is unlike an angel investor, but it

is much the same.

As we were talking about it amongst ourselves as

colleagues, we said it is much like and we have all invested, I am sure, in

mutual funds, not a lot of money, but I am sure some of us have put some into

mutual funds. Mutual funds are considered

high risk. I think I managed to

invest in mutual funds myself in a very small way, and you can probably get a

good return on it when it is right.

You can lose big on it, but you can also make big on it.

Your returns are great.

Mr. Speaker, I think this is a great incentive today,

and I am certainly supporting this private member's motion on venture capital.

Thank you very much.

SOME HON. MEMBERS:

Hear, hear!

MR.

SPEAKER:

The

hon. the Member for The Straits White Bay North.

MR.

MITCHELMORE:

Thank you, Mr. Speaker.

I am pleased to follow my esteemed colleague, the

Member for Virginia Waters, speaking about her own experiences as being

supported by a venture capitalist and being a venture capitalist, and providing

a lot of education, I think, for the House, really adding to the quality of

debate here.

I just want to point out myself that I started as an

entrepreneur at the age of sixteen without an investor.

Since that time I have always found myself surrounded by business and

lending. I worked for the former

Department of Innovation, Trade and Rural Development at the time and in the

private industry with an international marine and engineering consultancy with

offices around the globe. With a

business development corporation, there I would analyze and make recommendations

on various types of lending, whether it be a direct loan or whether the

corporation would make an equity investment and take shares in a particular

company. So I know what it is like

to deliver flexible financing and be a patient lender, which venture capital

really is all about.

I wanted to point out that since I have been in this

House as an Opposition member, I have been responsible for business.

Looking at that and looking at the context on the government side when it

comes to the Minister Responsible for Business, well, in Estimates of 2013 it

was the Member for Ferryland and then it became Charlene Johnson, following

Terry French, and then we had the Minister of Education there for a brief

period, followed now by the current Member for Grand Bank.

Since we see all of that shift and time, it really does

not provide any level of stability or confidence in the people of the Province

when you are constantly moving and doing that.

When you do that in business and you do that in a form of venture

capital, it does have impacts. If we

look at where the Department of Business currently is, the PC government really

has failed to deliver on the Business Attraction Fund.

In 2012 there was $15 million, but it only got $8 million out the door.

Then in 2013, another $15 million was invested, put

forward, but only $9 million was actually delivered in attracting business.

Then in 2014, another $15 million has

been invested, but with no mid-year fiscal update we really do not know what is

going on in terms of the expenditures of the Province.

So, out of a $45 million promised Business Attraction Fund, only $17

million has actually been spent on attracting local business.

HON. MEMBER:

(Inaudible).

MR.

MITCHELMORE:

Then if we look at the business development fund I say to current Minister of

Business, the relevance is the funds coming to fund this venture capital program

is coming through the Business Attraction Fund.

So, the business development fund, in 2012, the PC

government invested $2 million, but spent only $300,000.

In 2013, the PC government invested $16.2 million, but spent nothing.

In 2014, another $16.2 million is on the table, but no mid-year fiscal

update so we really do not know what is going on with these particular funds or

the investments and that has not been clear.

So, that is setting the context for, when we talk about

lending and where this government has been, in terms of the investment.

HON. MEMBER:

(Inaudible).

MR.

MITCHELMORE:

Now, I will answer the Minister of Business' questions: Do I support venture

capital? Of course I support venture

capital.

SOME HON. MEMBERS:

Hear, hear!

MR.

MITCHELMORE:

was in this House in 2013 when we were debating Bill 39.

MR.

SPEAKER:

Order, please!

MR.

MITCHELMORE:

Bill 39, not the infamous Bill 29, we were debating Bill 39, loan and guarantee

immigrant investment fund, hundreds of millions of dollars sitting in a bank

account. I brought up how British

Columbia was investing in venture capital and doing it very successfully, in

this very House. I talked about it

again in Estimates of 2013 and brought that example up as to how you can use

venture capital to lever investments and help work on diversifying an economy.

It is one tool.

It is one element. It is not

the answer, but it does provide another tool moving forward because we need

and I have talked about many times in this House to advance the

knowledge-based economy. That is

something that venture capital can do.

It is not exclusive to technology, but it does invest heavily, as the

Member for Port de Grave was talking about, the innovative sectors.

It is unfortunate that the current Department of

Business, Tourism, Culture and Rural Development dropped in the innovation

even the Member for Port de Grave did not pronounce it right, as many people in

the community, it is a big joke, the naming of the current department.

It is just long and nobody gets it right.

That is very frustrating when you are talking about we need to have that

level of innovation and that focal point on innovation and venture capital, when

we look at the focus on life sciences and the biotechnology fields.

So I looked at government's dated export strategy back

in 2007, I believe it was, and it talked about biotechnology and life sciences.

One of the highlights was there was lack of critical mass of a strong

life science cluster. This is

government's own report. It talked

about poor access to investment capital and the forms of export financing. Clearly, their

department, back a number of years ago, talked about how this sector was lacking

financing. It is good to see that

there is some final movement on this, because this is years ago from the

government's own report.

The same

thing with the ICT sector. It

supports 3,900 employees, $1.6 billion sector in the economy of Newfoundland and

Labrador, and it talks about some of the challenges being the lack of private

sector investment. Often because of

the size of small companies, it means that companies are often unable to take

advantage of opportunities to grow at a more aggressive pace.

For

years and years and years this government has ignored their own reports when it

comes to the export strategy, when it comes to the type of investment that is

needed. It is good to see this type

of tax credit come forward.

Liberal government in New Brunswick took a very ambitious and aggressive

approach when it comes to the amount of investment that an individual can put

forward, and that is something we need to look at.

As well as ocean technology industries, the lack of support for to

demonstrate limited sources of private investment capital.

We are

talking about capital, and apparently government has been doing it wrong for

some time if we look at the Business Attraction Funds where money is not being

invested into the community, into businesses that can accelerate and grow.

I only hope the venture capital funds that are being established will

provide that access to capital.

Also,

the technical expertise and resources that businesses need to thrive, they need

that and they need that expertise.

Venture capital can provide that.

There are some limits as well, as the Member for Virginia Waters talked about,

because venture capitalists will want ownership of companies.

Primarily, they want to have greater say.

So, a business owner has to be prepared to give that up.

Now, I

want to talk a little bit about venture capital, about how it brings significant

management and technical expertise, which many companies need to really bridge

into that big world of doing the export.

We have some very good incubation companies that are graduating and

getting in there through the Genesis Centre.

We have had thirty-six graduate since 2000.

We have nine current tenants there, and half of them are in ocean

technology.

We have

an opportunity here where they can capitalize on this made in Newfoundland and

Labrador fund. So can others as

well, but I do have concerns. I put

those forward in the House of Assembly, because when Terry French was minister

this was around the time of the Budget, and we have been through a number of

ministers since then. French said

the announced $10 million in spending in the regional fund will be spread out

over five to seven years. When we

look at this $10 million that is going into the fund, it is not $10 million

today. According to the minister, it

is five to seven years.

Maybe

the Minister of Business will get up and explain if it is a $10 million cheque

that is being cut to GrowthWorks and that is actually going in there.

When the Premier got up and announced this on November 4, it was $20

million. I have no documentation to

prove there is $20 million today going to the Atlantic fund or going to

GrowthWorks for that made in Newfoundland and Labrador fund.

Actually, if we go into the Estimates, I have information when I asked the

department of

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

MR. MITCHELMORE:

The current department in the

Estimates, I asked what the investment was.

The answer was about the $20 million.

They said, The total investment pot over time will be $20 million.

They said that they are going to take, and this is in Hansard, this

Business Attraction Fund based on calls for investment.

We will be introducing a call this year, and we have projected roughly $5

million for two calls. Part of that

will go into Newfoundland and Labrador and the other part will join the larger

investment pot. You will see how

robust the uptake is.

We have

seen that with the current two funds the uptake has not been very robust.

They have the cash flowed over three, four, or five years.

What is it? Is it three,

four, five, six, seven, or ten years?

That is where we need clarity.

That is where we need to know.

The

business community in Newfoundland and Labrador and in the Atlantic region want

to know how much access to capital they would have through the venture capital

fund from public dollars. As well,

former Minister Terry French said he was hoping that any investment that was

made with public funds would also be made public if it was made through the

venture capital fund.

We need

to know what type of regulation is being put forward and what type of public

disclosure is being made on how these public funds will be spent.

That is something that Terry French said when he was the minister.

I do not know what is happening right now.

Maybe the minister will clarity that.

It seems

like there has been a lot of confusion as to what is happening in the particular

funds. Is it $20 million or is it

only $5 million, as the minister's own staff said in Estimates?

Five million dollars is what was said: $2.9 million for one fund, and

$2.1 million for another. That is

the type of thing that is happening in Hansard.

This is

why we get confused, and the business community gets confused.

This is why people do not feel comfortable with the instability of things

shifting and changing over and over and over.

Only 6 per cent of all the funds that were dedicated for the Business

Attraction Fund and the Strategic Enterprise Development Fund those two funds

combined, only 6 per cent of the funds got out the door.

That is

a real challenge, but I am impressed to see that when you look at investing in

funds, you look at the investment experience, the management experience, the

technical expertise they bring, and GrowthWorks brings 200 years of investment

experience and over $200 million in assets in their current portfolio.

There are a number of unanswered questions, and I will probably get to

them at some other point in time, but we need to know what type of role

government will be playing in that process.

The member talked about and the press release outlines how they are going

to play a limited role in partnership, but there are still a number of questions

that will be unanswered.

I wanted

to highlight that this is something now that one pool of funds that was

available for something else is now being diverted into venture capital.

This is not increasing access to any new money from a public perspective.

Any new access will come through angel investment.

It will come through being able to access these Atlantic funds, but there

was the introduction of a tax credit, which is a good thing.

We need

to, and the start-up advocates have been pushing for years for the Atlantic

Provinces to adopt a policy where the Atlantic Provinces would have some

uniformity in terms of tax credits and being able to be an investor, maybe from

Nova Scotia to invest in Newfoundland and Labrador, and vice-versa, to have that

ability to make those contributions.

Because we need to have a climate and we need to have that level of confidence

for a business community in Newfoundland and Labrador.

I think

we have significant opportunity. I

am very pleased to see that venture capital is going to be one tool, one piece

of utilization. I have been calling

for venture capital since 2013, and I have been asking for it many times.

I will certainly support this resolution going forward.

It is something I have been asking for and I want to see it work.

That is why the question is, how much money is really there?

Provide that clarification, because it is not $20 million.

It is not $20 million as announced by the former minsters, a slew of

them. Some of them are no longer in

this House, so they can no longer be accountable for their statements.

I would

think that either the Minister of Business or the Member for Port de Grave

should clarify government's investments in those particular funds and tell the

people of the Province that it is over five to seven years, and that this

investment is not just happening this year from this Budget.

Because I would think that probably no business would be able to access

this Newfoundland and Labrador fund in this year's Budget because it has not

been created, the whole framework and ability.

There is a lot of work left to do.

We need to know what is actually happening and when that is going to

become available. These are the

types of things that in an era of open government, be more open and provide

those updates to people of the Province, but I will certainly support this

particular piece of legislation.

Thank

you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for Cape

St. Francis.

MR. K. PARSONS:

Thank you very much, Mr.

Speaker.

It is

indeed a privilege to get up here again today, like I always say, and represent

the beautiful District of Cape St. Francis.

I am glad that the Member for The Straits White Bay North is going to

vote in favour of this motion. You

would never say by the way he was talking there earlier, so I am pleased he is

supporting this.

The

business climate in our Province, Mr. Speaker, we are very fortunate.

I just listened to stats across Canada and you see where other provinces

are to when it comes to creating business and small business.

It seems that Newfoundland and Labrador are always in the front when you

look at provinces right across Canada in growth.

Growth

is very important. We have a lot of

major industries on the go and everything else, but growth is very important

when we see small businesses established in this Province.

I have so much confidence in the people of Newfoundland and Labrador, the

young people of Newfoundland and Labrador, and I think we can compete with

anybody in the world.

Today we

operate in that market. We operate

in a global market where you can be in Pouch Cove and you can be doing business

with people in England, in Germany, anywhere else in the world.

That is the kind of market that there is today.

Small businesses are set up all over the Province and it does not make

any difference; you do not need to be in St. John's, you do not need to be in

the major centres, you do not need to be in Corner Brook, but it is important

that we, as government, make sure we are there to support these small

businesses.

That is

a lot of what this fund is doing today.

What we are talking about today, the Venture Newfoundland and Labrador

fund and the Build Ventures fund, is mainly designed for small and medium

business. Mr. Speaker, we had a

private member's statement here today about Fogo Island and business on Fogo

Island. How good is it to see that

we have business thriving in rural Newfoundland and Labrador, and that is what

keeps rural Newfoundland and Labrador going is small business.

Small business is the key to it.

Like I

said earlier, your business today does not necessarily have to be in the major

centres to survive. I look at what

we are doing at the university, and I heard the Member for Port de Grave get up

and talk about the investments we have made in the university and what we are

doing here. I am so proud of our

young people coming out of university because the ideas and what they have and

what they have to offer to Newfoundland and Labrador, they want to stay here and

they want their ideas to work in Newfoundland and Labrador.

Anything

that we can do to help with their ideas, to get it to that stage where it can be

developed and where they can get into the markets and later on they can hire,

that is what it is all about, is investing our money so that we get a return on

what we are doing.

Basically, government must be doing something right.

We must be doing something right out there, Mr. Speaker, because if our

growth is high and I heard the other day that the economy here in the

Northeast is still growing. In 2008,

we went through probably the worst economic time in the world.

This Province went through it like you would not believe.

It was because we were invested and we were smart, making smart

investments.

Again, I

just want to talk about our economy and how strong it is.

This is the key to it. This

is a key factor. Rural Newfoundland

and areas like where I am from, small business plays a major factor in what it

is all about.

Mr.

Speaker, venture capital starts and Venture Newfoundland and Labrador I know

the Member for Exploits explained it very well, how it starts at the early

stages, but that is probably the most difficult time for any company or group of

companies to get started. If the

idea is a great idea I learned a lot about it over the last number of days

with angel investors and stuff like this.

I applaud the Member for Virginia Waters; I am glad that she could do it

and invest in small business. I applaud all Newfoundlanders and Labradorians who

can and take the chance on young people, take the chance on young businesses and

new business.

It is

not only young people; people can be old and start a new business.

It does not make any difference.

They need that idea, from when you get the idea to you get to the point

to develop it, then you get the point for the growth and then the maturity of

your idea once you get it to market, then people really see the value of what

you are doing; but it is the hard stage, and that is what this fund is for.

The hard stage is to get it to the development stage.

It is

great to see that we are investing and whatever we do it is investing that is

not what my talk is about today. I

wanted to talk a lot about what we are doing and the reasons why it is so

important to invest this $20 million and what it does basically for our

investors, how it benefits them, and also how it invests the business

communities. Not only that, but how

it benefits the citizens of Newfoundland and Labrador.

Mr.

Speaker, I am very proud that just a short little while ago I was named

Parliamentary Secretary to the Department of Business, Tourism, Culture and

Rural Development. To tell you the

truth, I am very impressed with the people who are working in that department

and their plan for business and the enthusiasm for what they do and how they are

involved in so many different sectors in this Province and trying to make this

Province grow.

We have

to diversify, Mr. Speaker. We cannot

depend on oil. We cannot depend on

our minerals. They are a

non-renewable resource. When the oil

is gone, we have to have businesses here before.

We are looking at a time now where the price of oil is down and who knows

what could happen, and we have to make sure we have the diversification in our

society so people are employed here.

It is a great time to do it, because people want to invest in Newfoundland and

Labrador.

We are

leaders when it comes to oil and gas.

We are leaders when it comes to ocean exploration and ocean technology.

Right now, people in the rest of the world are looking at small

businesses here in Newfoundland and Labrador and saying they have the expertise,

maybe we can see what they are doing there.

It is huge that we support these small companies, these technology

companies that are out there, so they do have the expertise and they do have the

know-how to get their companies off the ground, because they are wanted all over

the world.

Like I

said earlier, today's technology does not mean that you just supply something to

somebody that is your next-door community or whatever.

We are in a global market. It

is a global market today. That is

what we see out there, the global market.

These investments that we are making on new enterprises, new early

stages, getting them off the ground is huge.

It is

huge because we have the technology here in our Province.

We have the people, we have the smarts, we have the expertise, and we

have the resources. We are here in

the oil and gas industry that is world renowned, and people all over the world

are looking at how we are doing things.

Our mining industry is the same way.

Our fishery is the same way, and how we are doing our fishery, and how we

are looking at things in our ocean.

I think it is SubC it is called in Clarenville and what they do, they have these

remote controls and they can go with cameras and everything else world

renowned. They are growing, and that

is all through venture capital investments that we are making.

Like I

said, the Department of Business, Tourism, Culture and Rural Development, our

main goal in that department is to get enterprises developed, small businesses

and medium-sized businesses in this Province, to make sure they have the tools

to go out there. What this does, it

also makes them competitive nationally and internationally.

So, the more you invest in this, and they can be competitive because

that is what we are dealing with, we are dealing with that market, a competitive

market out around.

Mr.

Speaker, I just want to talk a little bit about the benefits of small business

and what small business does to communities all over this Province.

From my district, the Town of Torbay has around not quite 8,000 people in

the town. I called and wanted to

know how