April 19, 2011

HOUSE OF ASSEMBLY PROCEEDINGS Vol. XLVI No. 18

The House met at 2:00 p.m.

MR. SPEAKER (Fitzgerald): Order, please!

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

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Thank you, Mr. Speaker.

Mr. Speaker, I move, seconded by the Premier, that this House approves in

general the budgetary policy of the government.

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

budgetary policy of the government.

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

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Thank you, Mr. Speaker.

Introduction

Mr. Speaker, our Province has never been stronger than it is today.

Our prospects have never been brighter than they are for tomorrow.

Our priorities have never mattered more than they do right now.

Mr. Speaker, this is Newfoundland and Labrador's time to grow.

As this year's Speech from the Throne states clearly, "To make growth happen,

individuals, businesses and communities must rise to the challenge and seize the

opportunities before them. Through a partnership of collective effort and

individual responsibility, we as Newfoundlanders and Labradorians can achieve

goals others think impossible. Each of us has the power to master our own

destiny, and each of us has the responsibility to use it."

The government, too, has a role to play in creating "conditions conducive to

growth: a strong commitment to fiscal responsibility, a solid foundation of

reliable infrastructure, competitive taxation, minimal red tape and progressive

public services, including a range of instruments and initiatives to help

businesses grow and individuals prepare for opportunities."

That defines our vision moving forward, Mr. Speaker.

Still, there are those who would have us second-guess the path we're on.

There are those who would have us retreat from challenge, recoil from

opportunity, fall back to the old ways of thinking that were leading us nowhere

but down. But we will not be deterred.

Mr. Speaker, through the choices we are making, as demonstrated in our eighth

Budget, we are not falling back, but we are standing strong.

Standing strong for prosperity.

Standing strong for our future.

Standing strong for Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Not with old ways of thinking, but with bold

ways of thinking.

Not by half measures, but by reaching the full measure of our

potential for the greater benefit of the people of Newfoundland and Labrador.

Economic Performance 2010

Mr. Speaker, this time last year, we were cautiously optimistic that 2010

would be a good year, but there was still considerable risk that global growth

could stumble back into recession. The world was still in a period of economic

uncertainty. As 2010 unfolded, the world economy did rebound from the recession

and all major economies showed positive growth in Gross Domestic Product (GDP).

The recovery, however, has been uneven, with strong growth in emerging economies

like India and China and slower growth in many advanced economies such as the

United States and Europe. Canada escaped the severest effects of the recession

and, in 2010, experienced a solid economic recovery. Because Newfoundland and

Labrador produces commodities that the world wants and needs, our economy fared

very well in 2010.

Economic growth was very strong in Newfoundland and Labrador in 2010. Real

GDP is estimated to have grown by 5.6%, fuelled by strong investment growth and

a rebound in exports. Real GDP growth in Newfoundland and Labrador last year was

the highest among all provinces in the country.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Investment grew by 32% to over $6.5 billion in 2010, due in

large part to the development of major projects, but also aided by public sector

infrastructure spending. Work on several major projects progressed, including

Vale's nickel processing facility in Long Harbour, the Hebron oil project, and

expansions at White Rose and Hibernia. A decision to renew iron ore expansion

plans at IOC was also taken.

Exports received a significant boost from the recovery in global commodity

markets. Real exports are estimated to have increased by 4% due to a significant

increase in mineral output, particularly iron ore and higher oil production. The

value of mineral shipments increased by about 90%, mainly due to higher

production and prices for iron ore. Offshore oil production totalled 100.7

million barrels, an increase of 3.1% relative to 2009.

Tourism performance continued to be strong, with the number of tourists

visiting the Province growing by more than 7% to a record 518,500. The

convention business continues to grow.

Employment grew by 3.3% to reach 219,400, recouping all the losses

experienced during the 2009 recession a remarkable feat. Mr. Speaker, this

performance marked the quickest recovery in employment from a recession since at

least the 1970s. Moreover, employment growth in the Province was the highest

among all provinces in the country and more than double the national rate of

growth.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Retail sales grew by 3.7% to $7.4 billion buoyed by income

growth and solid consumer confidence. Other areas of the domestic economy were

also quite strong last year. Housing starts increased by 18% to 3,606 units

2010, the highest level in 30 years. The strength in the economy and continued

optimism about future prospects contributed to net in-migration and a further

increase in the Province's population, which stood at 509,739 as of July 1,

2010. This is an increase of 0.3% compared with July 1, 2009. This marked the

second consecutive year of population gains after 16 years of decline.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Investment builds new capacity and produces new

opportunities to create wealth. It provides businesses and workers new avenues

by which to pursue new opportunities and realize their potential. Mr. Speaker,

it was with great pleasure that an agreement to develop the Muskrat Falls

portion of the Lower Churchill River hydroelectric development was announced

late last year. This development has enhanced an already robust investment

landscape for Newfoundlanders and Labradorians, with benefits for years to come.

Mr. Speaker, this government continues to believe we cannot ever be complacent

and that we must continue to seize every reasonable opportunity we can to

advance economic prosperity. We are shaping our own destiny, boldly forging a

new path to prosperity today, while securing a prosperous future for our

children and grandchildren.

SOME HON. MEMBERS: Hear, hear!

Fiscal Review of 2010-11

MR. MARSHALL: Mr. Speaker, for the fiscal years from 2005-06 to 2008-09,

this Province recorded four consecutive surpluses, totalling over $4.1 billion.

In 2009-10, the global economy was in the midst of the greatest recession since

the Great Depression. Despite this, Newfoundland and Labrador was able to record

a very modest deficit of less than $33 million for that year.

A year ago in Budget 2010, we forecast a deficit of $194 million for the year

ended March 31, 2011. At the time of the release of our Fall Update, oil prices

were below our forecast, but oil production was well above what had been

expected. The net result was an increase in oil royalties. As a result of the

economic growth happening in this province and the recovery occurring outside

the province, we were also seeing increases in other revenues. Subsequently, Mr.

Speaker, in our Fall Update, government forecast a small surplus of $12.3

million.

Mr. Speaker, since that time, oil prices have continued to increase, and it

comes as no surprise that our fiscal performance has been positively impacted.

Other commodity prices have also increased, and that is providing a boost to

mining tax. Recent updates from the federal government, which administers and

collects about 75% of provincial tax revenues on our behalf, indicate further

improvements in sales tax and personal and corporate income taxes.

I am pleased to report to this House that when we close the books in

2010-2011, we expect to record a surplus of $485 million.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, this will be the fifth surplus in six years.

The cumulative value of these surpluses is almost $4.6 billion and we are also

expecting Net Debt to decline in 2010-2011.

2011 Economic Outlook

Mr. Speaker, while uncertainty persists within the global economy, recovery

is expected to continue in 2011. This global growth augers well for our own

economy. Newfoundland and Labrador can expect another solid year of economic

growth and prosperity.

Economic growth is expected to be 3% in 2011, fuelled by investments in major

projects and mineral production. Capital investment in the Province is expected

to increase by another 27.2% this year to an unprecedented $8.3 billion.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Of this, $2.7 billion is expected to be spent in the mining

and oil and gas industries. Peak activity is expected to occur at the Vale

nickel processing plant with over US$800 million in expenditures planned for

this year. Development of the Hebron oil field will continue to advance and the

Lower Churchill Project will continue towards achieving project sanction for

construction.

In fact, Mr. Speaker, Newfoundland and Labrador is expected to be among the

leaders in Canada in GDP growth once again in 2011.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Employment is expected to grow by 3% to an average of

226,000. This, Mr. Speaker, will be the highest level of employment ever

recorded in Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Personal income and disposal income are expected to grow by

5.5% and 5.4% respectively, both aided by wage gains and employment growth.

Retail sales are expected to increase by 4.2%. Population will increase another

0.3% due to positive net migration.

Mr. Speaker, in short, as the global economic continues to recover, the

momentum in the provincial economy continues to build.

Beyond 2011

Mr. Speaker as we look beyond 2011, the economic outlook remains positive as

well. Business and consumer confidence are strong. While GDP growth will depend

on major project timelines and natural resource production, other indicators

such as employment and income are expected to record steady growth. Sustained

high levels of capital investment will support these gains. In fact,

construction employment related to major projects, including spin-offs, is

expected to increase by about 3,000 to 9,700 person years in 2011 and by a

further 2,100 to 11,800 in 2012. Increased employment and income will bolster

consumer spending. Continued economic growth and optimism about the development

of major projects is expected to lead to further net in-migration and an

increase in the population.

Mr. Speaker, there has never been a better time to make this Province home.

Fiscal Forecast for 2011-12

The economies of developed nations are still struggling to gain traction. Our

country is still feeling the effects of the global recession, and it is

impacting fiscally in an adverse way. Most governments in our country are

forecasting deficits for the coming year. Mr. Speaker, Newfoundland and Labrador

will fare better than most. I am pleased to report that we are forecasting

another surplus again this year the sixth in the last seven years a surplus

of $59 million for 2011- 2012.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: As you can see, Mr. Speaker, since 2004, we have made

substantial financial progress. Net debt has decreased from a high of almost $12

billion to a projected $8.2 billion at the end of 2010-11, a decline of about 31

%. One of the primary fiscal indicators used by financial markets and bond

rating agencies to measure the ability of a government to support debt is the

percentage of Net Debt to GDP: the lower the percentage, the greater the ability

to support debt. Net debt as a percentage of GDP will have improved from a high

of 70.2 % to 26.7% as of March 31, 2012 -

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: - a very significant indicator.

Another key measure of fiscal performance is the percentage of revenue which

is consumed to service the debt. In 2004, debt expenses consumed over 23 % of

our revenues. Budget 2011 forecasts debt expenses to be 10.2 % of revenue, a

significant improvement over that period of time.

Mr. Speaker, when we were elected to office in October, 2003, there was much

work to be done after years of neglect. There had been little new

infrastructure, and the infrastructure already in place was in decay. Routine

maintenance was often deferred. Our existing social programs were underfunded.

We had to make the necessary investments to ensure that we remained the best

place in the world to live, to work, to raise a family, and to retire with

dignity.

We have responded since being elected to office with expenditure levels that

support a high level of programs and services, and we also stimulated the

economy during the recession. Always, however, we were committed to spending

within our means. During my consultations this year with the people of the

Province prior to this Budget, I was clear that, while strong expenditure growth

was necessary during the catch-up and stimulus periods, more moderate

expenditures are required in the future. Our net program expenses will grow by

less than 5% in 2011-12, with much of this growth relating to wage increases

previously negotiated.

Mr. Speaker, our accomplishments in improving the fiscal health of the

Province have been validated in the financial markets. While we have not

borrowed in the markets since 2007, our bonds are trading in the secondary

markets at rates that are at historic levels compared to the federal government

and other provinces.

Just over a month ago, Standard & Poor's Rating Services raised the credit

rating assigned to the Province form A' to A+'. This is the highest rating

that Standard & Poor's has ever given to Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: This rating will reflect favourably for any future

borrowing requirements. In upgrading our rating they said the Province "has a

strong liquidity position, reflecting its past operating surpluses and prudent

spending practices."

Standing Strong

STANDING STRONG ON ENERGY

Mr. Speaker, looking forward, our Province's energy corporation, Nalcor, has

an obligation to identify the lowest-cost option for meeting our Province's

energy needs. Nalcor identified the Muskrat Falls hydroelectricity development

project as the best choice moving forward. Not only is Muskrat Falls the

lowest-cost opportunity to supply the power Newfoundlanders and Labradorians are

going to require: it is also a powerful means of attracting new industrial

growth to Labrador, Mr. Speaker, where opportunities abound.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: As the Muskrat Falls project continues to advance through

the approval process, we will invest $348 million in Nalcor to support energy

development in 2011-12, most of which will be employed for the Lower Churchill

project. After Muskrat Falls will come the Gull Island development and, by 2041,

the return of the Upper Churchill to the control of Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

STANDING STRONG ON INFRASTRUCTURE

MR. MARSHALL: Mr. Speaker, energy continues to be a major driver of

economic growth and revenue growth in this Province. Our detractors have said

the benefits are enjoyed by only a few Newfoundlanders and Labradorians. They

are wrong. In many ways, including a multi-year infrastructure strategy

currently valued in excess of $5 billion, we have reinvested those revenues in

communities throughout Newfoundland and Labrador, laying a solid foundation for

investment attraction and new economic growth. We have invested in securing the

foundation of regions throughout Newfoundland and Labrador because we believe in

the future of regions throughout Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: In 2011-12, the Province of Newfoundland and Labrador will

invest $216.4 million in roads and bridges for a total federal-provincial

investment this year of $251.6 million. Initiatives will include: Funding to

repair roads damaged by Hurricane Igor, a portion of which is recoverable from

the Federal Disaster Financial Assistance Program; funding for new projects

under the Provincial Roads Program throughout the Province, including $2 million

for brush cutting; funding for various road and bridge projects along the

Trans-Canada Highway; funding to continue construction of the Team Gushue

Highway and the CBS By-Pass from Kelligrews to Seal Cove; funding to continue

work to replace the Sir Ambrose Shea Lift Bridge in Placentia; funding to

replace the Kenmount Road overpass; and, funding to complete the Torbay By-Pass.

We will invest another $38.7 million in public buildings, which includes $1

million for energy efficiency improvements in public buildings, supplemented by

an additional $2 million from the Newfoundland and Labrador Green Fund.

We will invest $56.4 million in marine infrastructure, including: $39.3

million to continue the vessel replacement strategy; $12.1 million for ferry

vessel refits; and, $5 million for maintenance and upgrades of wharves at ferry

terminals.

Added to this will be significant new infrastructure investments in municipal

affairs, education, health and community services, fisheries and aquaculture,

environment and conservation, justice, heritage and housing.

In total this year, Mr. Speaker, we are investing more than $1 billion in

infrastructure projects throughout our Province.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: That will fuel economic activity, laying a solid foundation

for future growth and generating an estimated 7,680 person-years of employment.

STANDING STRONG ON INNOVATION

Mr. Speaker, reliable infrastructure is indispensable to prospective

investors looking to create jobs and wealth, but infrastructure is just the

start. Investors are also looking for resources that they can access, skilled

workers they can hire and a government that thinks ahead of the curve. It is not

by accident that in Newfoundland and Labrador today, they are finding all three.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: In 2006, we launched our Province's Innovation Strategy, a

new approach to development based on a new way of thinking. Through innovation,

we are learning to put our resource wealth, our strategic advantages and our

people's ingenuity to use in inventive ways that enable us to compete

successfully with the best throughout the world. Innovation has enabled

Newfoundland and Labrador to become a major player in ocean technology, genetics

research, aerospace technology, software development, communications technology,

deep-sea robotics, energy production and other fields.

We are renewing our commitment to the Innovation Strategy this year with a $3

million investment to expand the Commercialization and Innovation Enhancement

Programs.

We are providing a further $8 million to help address gaps in broadband

availability in under-serviced areas and to further develop an advanced internal

telecommunications network.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We are investing $3 million a year for the next three years

in the Aerospace and Defence Development Fund in support of a sector that

currently employs some 1,500 Newfoundlanders and Labradorians and generates $150

million a year in revenue.

We are continuing our commitment to the Province's Research & Development

Corporation with $19 million available to strengthen Research & Development

activities in the Province through targeted investments.

We are also investing: $71 million for various tax credits and incentives to

stimulate business growth; $29 million for the Business Attraction Fund; $12.8

million for the Small and Medium-sized Enterprise Fund; $6.1 million for the

Ocean Technology Sector Strategy; $5 million for the Regional/Sectoral

Diversification Fund; $2 million for the Oil and Gas Manufacturing and Services

Export Development Fund; $1.7 million for the Air Access Strategy; and, $1

million for the Business and Market Development Program.

Mr. Speaker, I am also delighted to announce that the Payroll Tax is being

decreased this year. Retroactive to January 1, 2011, the payroll tax exemption

threshold has been raised from $1 million to $1.2 million, removing an

additional 90 businesses from the tax rolls and reducing the tax burden for 845

others.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: This measure will put $2.3 million back in the hands of our

Province's employers.

Mr. Speaker, innovative thinking is transforming many of our Province's

traditional industries, and we are making investments this year to reinforce

that approach to growth.

In the mining sector: We are continuing to invest $2.9 million in the Mineral

Incentive Program to provide prospector grants and junior exploration

assistance; and, we are investing $1.2 million to support geoscience data

collection, storage and distribution.

In the forestry sector, we are investing $1.1 million over three years in the

Forest Research and Innovation Fund to foster innovation and to identify new

opportunities for growth.

In agriculture: We are investing $250,000 to begin implementing our new

five-year Agriculture and Agrifoods Action Plan entitled "Our Farms, Our Food,

Our Future"; this will include $150,000 for the development of new entrants

initiatives and $100,000 to assist new entrants with legal land survey costs;

and, in addition, we are investing $500,000 in equipment for our Animal Health

Laboratory to provide greater food safety and milk quality testing capabilities.

In aquaculture: We are investing $344,000 to improve biosecurity; we are

investing a further $300,000 to improve waste water treatment on the Connaigre

Peninsula; we are investing $535,000 to complete the construction of the Centre

for Aquaculture Health and Development; we are investing more than $9 million

for wharf infrastructure including provincial funding of $6.3 million to

complete wharves at Pool's Cove and Hermitage and construction of new wharves at

Belleoram and Harbour Breton, and $2.8 million funded through Transport Canada's

Port Divestiture program to upgrade wharves at St. Alban's and Milltown

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: That is not all, Mr. Speaker. We are investing an

additional $4.7 million in the Aquaculture Capital Equity Investment Program,

for a total investment this year of $8 million; and, we are investing $100,000

for the clean-up of abandoned aquaculture sites.

In the fisheries sector: We are investing $300,000 as part of a three-year

investment in the Coastal and Oceans Management Program that identifies

sustainable ocean resource practices; $6.6 million over three years in the

Fisheries Technology and New Opportunities Program for fishing industry research

and development, leveraging additional investments from the fishing industry and

other sources during that period; also, $100,000 to address seafood trade

concerns, particularly tariffs; we are also extending the Fishing Industry

Workforce Adjustment Program for another three years with a total investment of

$3.1 million; and, we are investing $150,000 for the demolition and site

restoration of abandoned fisheries infrastructure.

Mr. Speaker, a total of $200,000 has been allocated for sealing industry

advocacy and development in Budget 2011. This represents an increase of $100,000

over previous years. This funding will help address new opportunities for the

sealing industry in the global marketplace as the provincial government supports

the development of new seal products and new international markets in countries

such as China and Russia.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: By far most of these initiatives are based in our rural

communities. Opportunities for innovation and growth in rural Newfoundland and

Labrador are boundless, and that is why our Premier and our government are hard

at work harnessing the energy and the ingenuity to bring these opportunities to

fruition so our communities can continue to grow.

STANDING STRONG ON CHILD CARE

Mr. Speaker, initiatives like these are opening doors for investors to expand

their operations and to create jobs for our people and jobs for Newfoundland and

Labrador families. Now, let me focus on some of the things we are doing to

prepare our people to take these jobs and to bring home the benefits.

A major barrier to employment many face is the lack of access to child care.

For our Premier, this is a priority. Budget 2011 continues to advance the

family-friendly policies established during our tenure in office. Building on

the Early Learning and Child Care Capacity initiative we announced back in 2006,

we are introducing this year a two-year pilot project focused on the development

of child care spaces in family homes throughout Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, we will increase from $2,500 to $5,000 the

start-up grant to become a regulated family child care provider, and we will

provide start-up grants of $7,500 for homes that care exclusively for children

up to the age of two. This initiative is also providing for an ongoing stimulus

grant to infant care homes of $200 a month per infant space, in recognition of

the higher cost of operation in terms of staff ratios. This approach will help

keep rates attainable for parents requiring infant care - the very type of care

that, right now, is in the shortest supply. It will be of particular benefit for

families in rural and under-serviced areas: the initiative will encourage the

development of regulated home-based chid care in these areas because they are

feasible on the small scale. This pilot project has the capacity to support the

creation of up to 400 child care spaces over two years, in addition to those

created by our other initiatives.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: I am also pleased to announce today that we are introducing

a provincial child care tax credit. Currently, a parent may deduct eligible

child care expenses from income. Effective for the 2011 tax year, we will

provide additional tax relief: a new, non-refundable tax credit for eligible

child care expenses. Under this initiative, a person with eligible expenses of

$7,000 would save an additional $539 in provincial income tax. This initiative

will return about $3 million to almost 12,000 families across the Province.

SOME HON. MEMBERS: Hear, hear!

STANDING STRONG ON EDUCATION

MR. MARSHALL: Mr. Speaker, complementing our child care initiatives is

our Early Childhood Learning Strategy, entitled "Learning from the Start". With

a commitment of $4.8 million over three years including an initial commitment of

$1.3 million, we will move forward this year with a range of initiatives for

children up to the age of three, focusing on social and early learning

development opportunities to give these children a head start well before they

enter the K-12 school system.

We are also prepared to do more at the K-12 level, building on the enormous

investments we have made to date. To ensure our children benefit fully from

advances in educational technology and programs, we are introducing our 21 st

Century Learning Strategy. We are providing an investment of approximately $11

million in 2011-12, on top of $5.4 million we have already invested, to provide

computers and interactive whiteboards for our classrooms.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Complementing our investments in technology and programs

will be significant investments in K-12 infrastructure, with new and ongoing

projects this year valued at $94.5 million. As a result, we will see a number of

much needed projects move forward, including: planning for the extension and

redevelopment of Roncalli Elementary in St. John's; planning for the extension

and renovation of the former Regina High School to create a new intermediate

school in Corner Brook; planning for the extension and renovation of Holy Spirit

High in Conception Bay South; planning for the extension and renovation of

Gander Academy; planning for the refurbishment of Holy Heart Regional High in

St. John's; planning work to provide new capacity to address growing enrolment

in the Portugal Cove-St. Phillip's area, and in the area of Torbay, Flatrock,

Pouch Cove and Bauline; and, planning to address capacity issues at schools in

the rapidly growing Conception Bay South area.

Mr. Speaker, when you tally up all the funding for construction of new

facilities, extensions and major renovations to existing facilities, and repair

and maintenance projects from our first Budget in 2004 to our eighth Budget this

year, our government's total investment in K-12 infrastructure has now surpassed

half a billion dollars.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Every single dollar represents new opportunities for our

children.

A K-12 education in Newfoundland and Labrador provides a solid foundation for

young people seeking a future of self-reliance, and many will build on this

foundation with a post-secondary education. Every year since we have been in

government, to make a post-secondary education more accessible, we have frozen

tuition fees at Memorial University and the College of the North Atlantic. To

enable the freeze to happen in 2005, we provided funding increases to our

post-secondary institutions to offset the revenues they would not be getting

through fee increases. When the freeze was extended for a second year, we once

again provided the amount of the initial offset plus a second offset to keep

fees from rising. As we continued the tuition freeze in subsequent years,

government provided incremental funding year over year to offset the lost

tuition revenue. Today, as a result of those investments, our tuition fees are

the most attractive in the country, and students are coming here from across

Canada to join our own students who are staying at home to study. The benefits

to Newfoundland and Labrador are enormous. This year we are once again providing

an additional $6.4 million in order to continue for a seventh year the freeze on

tuition fees at Memorial University and the College of the North Atlantic -

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: - bringing the cumulative investment over the last seven

years to $138.8 million.

In addition to the freeze on tuition fees, we are continuing to provide

upfront, needs-based grants under one of the most progressive student aid

programs in the country.

We are also investing significant amounts in post-secondary infrastructure.

To maintain and modernize Memorial's buildings, we are investing an

additional $19.8 million over the next three years for maintenance projects,

bringing the three-year total to $36 million.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: To upgrade Memorial's laboratories we are investing an

additional $7.7 million over the next two years, bringing the total invested in

labs since 2009 to $13.5 million.

To upgrade and renew the College of the North Atlantic's infrastructure, we

are investing an additional $3.2 million over the next three years for

maintenance projects.

To modernize the College's labs and shops in order to provide the kind of

training required by today's industrial employers, we are investing an

additional $7 million over the next three years. This is in addition to the $2

million we have already allocated for the next two years through our Skills Task

Force commitments.

Classroom, shop and lab training is often not enough to qualify for a skilled

trade. Many graduates also need apprenticeships. The supply of apprenticeships

has not kept pace with the demand, especially for traditionally

under-represented groups, such as women, Aboriginals and persons with

disabilities. We will address that deficiency by allocating $15.4 million over

the next three years to providing additional incentives to employers to hire

apprentices, particularly those from under-represented groups.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: The details of our Apprenticeship Employment Rebate will be

announced in the coming weeks. This program will complement the recently

announced increases under the Wage Subsidy Program and other initiatives

announced to date to help apprentices move through their training program and

achieve journeyperson status in a timely manner.

We are also determined to advance opportunities for persons with

disabilities. This year, we will increase funding for supported employment

initiatives; plus, we are allocating $400,000 in interim funding to implement

the first stages of our Provincial Strategy for the Inclusion of Persons with

Disabilities.

SOME HON. MEMBERS: Hear, hear!

STANDING STRONG ON POVERTY REDUCTION

MR. MARSHALL: Mr. Speaker, one of the greatest barriers to opportunity is

poverty. The circumstances that place some people in poverty can make it very

difficult for them to escape it. Determined to reduce poverty in our Province,

we moved forward in 2006 to introduce Newfoundland and Labrador's first Poverty

Reduction Strategy, a multi-year, multi-faceted initiative designed to address

many of the challenges people face. Up to last year, our total investment in

poverty reduction initiatives since 2006 was $482.7 million.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: This year, Mr. Speaker, we are doing even more.

Our new initiatives this year will focus primarily on four areas: improving

access to key health services; enhancing housing and community supports;

ensuring a better-educated population; and, enhancing our social safety net.

Among the greatest expenses for adults with low incomes is dental care. With

an investment this year of $1.5 million annualizing to $6.1 million in

subsequent years, we will introduce an Adult Dental Program, providing

diagnostic and therapeutic dental services once every year three years to adults

18 and over who have low incomes or are in receipt of income support.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: This initiative will provide many in our Province with

unprecedented access to dental services. This complements our significant

investments in the dental care program, which focuses on children, and brings

our total investment in dental care this year to over $10 million.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Among the most significant challenges an individual or

family may face in attempting to move from poverty to self-reliance is the

shortage of affordable places to live. The situation was far worse when we

entered office. Recognizing the problem, we set to work developing a strategy to

address the need and, in 2009, became only the third jurisdiction in the country

to adopt a provincial social housing plan.

We tripled Newfoundland and Labrador Housing's modernization and renovation

fund to $12 million, the first increase in 25 years;

We increased the rent supplement program from $4 million to $6 million, the

first increase in 25 years, and dedicated 80 supplements to help persons with

complex needs in partnership with the Stella Burry Corporation and the Canadian

Mental Health Association;

We increased funding for the Housing Corporation's heat subsidy program from

$6.9 million to $9.4 million;

We doubled the operational grants for its eight community centres to

$150,000;

We doubled our contribution to the Provincial Home Repair Program, raising

the total to $12 million;

We introduced the first-ever residential energy efficiency two-year pilot

program, enabling participants to reduce their costs by 35% and save nearly $800

a year;

We introduced the first-ever Homelessness Fund in 2009 with an investment of

$1 million;

We created nearly 900 new affordable housing units throughout the Province

over the past six years and, in partnership with the private sector, the

non-profit sector and supportive living advocates, we are providing these units

primarily for seniors, persons with disabilities, families and persons with

complex needs.

We are prepared to do more. To address the problem of homelessness, we are

moving forward this year to expand the Supportive Living Community Partnership

Program, doubling its funding from $2.4 million to $4.8 million

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: to enable community-based organizations to help people

who are vulnerable to homelessness, including many with complex needs such as

addictions, criminal records and mental illness.

To provide financial help to low-income families currently waitlisted for

housing units, we are once again expanding the Housing Corporation's Rent

Supplement Program from $6 million in 2010-11 to $7 million in 2011-12 and $8

million the following year. By next year, our investment in rent supplementation

will be double what it was when we took office, and it will be complemented by

other investments to address housing needs. As part of this initiative, we are

also providing 25 more rent supplements each to the Stella Burry Corporation and

the Canadian Mental Health Association to provide housing for persons with

complex needs.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, we will partner once again with the Government

of Canada to proceed with the fourth phase of the affordable housing program

with a total provincial investment over the next three years of $8.1 million

matched by the federal government to create some 250 to 300 new affordable

housing units for those with the greatest need.

We will also advance poverty reduction through education.

We will invest $1 million over the next two years in the Positive Actions for

Student Success, or "PASS", program, which currently supports over 250

disengaged or at-risk young people across the Province so they stay in school;

we will invest an additional $115,400 in the Murphy Centre in St. John's to

expand access to academic programs; and, we will provide an additional $225,000

for the Housing Corporation's Education Incentive Program, which is keeping many

Grade 7-12 students from dropping out of school.

To expand the social safety net and eliminate a potential barrier to

employment, we are eliminating the clawback of income tax refunds so income

support clients are better able to transition into the job force.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We are also expanding the Employment Transitions Program to

two new locations, enabling single parents to attend sessions on career

planning, job readiness, job maintenance and life skills.

As our Premier stated in her response to this year's Speech from the Throne:

"Child care, early childhood learning, education, career access, inclusion for

persons with disabilities, poverty reduction, affordable housing our

investments in these areas all contribute to placing self-reliance within reach

of many Newfoundlanders and Labradorians who might not achieve it otherwise."

With a total investment in poverty reduction this year approaching $140

million, we are bringing our cumulative investment in poverty reduction since

2006 to more than $620 million. It is no wonder antipoverty advocates are

describing us as a model for the entire country!

SOME HON. MEMBERS: Hear, hear!

STANDING STRONG ON LABRADOR

MR. MARSHALL: Mr. Speaker, let's talk about Labrador.

In 2007, we introduced our Province's first-ever Northern Strategic Plan for

Labrador, a far-reaching initiative to address the challenges unique to Labrador

and give Labradorians new opportunities to prosper. We had already begun

investing in Labrador in our first Budget in 2004. In fact, by the end of the

current fiscal year, our government's total spending in Labrador since 2004 will

have exceeded $3 billion.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: It is money well spent, Mr. Speaker, because it is changing

lives as never before. This year's initiatives will make a significant

difference in the lives of families from the Labrador Straits to the north

coast, and from Happy Valley-Goose Bay to Labrador West. Let me list a few of

them.

We will invest $68.2 million provincially plus another $3.5 million in

federal funding in order to complete the widening and continue the

hard-surfacing of Phase I of the Trans-Labrador Highway.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We will invest $3.4 million provincially and will lever an

additional $1.5 million in federal dollars to complete a highway realignment at

Pinware River on the Trans-Labrador Highway in southern Labrador; we will invest

$2 million to complete a new weigh scale inspection facility near Wabush; we

will invest $6.3 million over the next three years, including $2.2 million this

year to remediate the former military site in Hopedale.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We will continue to invest $230,000 in the Air Foodlift

Subsidy program this year, ensuring fresh and healthy food is available at

reasonable prices to residents of Labrador's communities at times of the year

when ice makes marine transportation impractical; we will invest $1.2 million to

construct four public housing units for low-income residents in Hopedale.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: For residents of Inuit communities on the north coast who

register their home heating oil tanks in compliance with the storage tank

regulations, we will invest $1.5 million to reduce the costs they incur from

about $4,400 to about $1,800 a 60% savings.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, we will continue to provide for subsidies

totalling over $20 million a year to reduce the cost of electricity and home

heating for residents in coastal Labrador communities.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We will invest $1 million for this year's component of a

three-year Labrador Caribou Management Initiative to enhance the collection of

data from the George River caribou herd; and, $2.1 million for a new Inland Fish

and Wildlife Enforcement Division to enhance enforcement measures designed to

protect Newfoundland and Labrador's valuable fish and wildlife resources,

including specifically for Labrador an additional $1.3 million investment in

the Inland Fish Enforcement Program to protect valuable salmon, trout and Arctic

char stocks in Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We will invest $357,000 to support justice programs in

Natuashish and Sheshatshiu that build on the success of the Innu Healing Path

initiative; we will invest $100,000 to update our Aboriginal Consultation Policy

to ensure there are open lines of communication for dialogue on development

projects and other key issues; we will invest $100,700 to continue land use

planning in the Labrador Inuit Settlement Area; we will invest funding for the

Northern Development Ministers' Forum taking place in Happy Valley-Goose Bay in

August on the theme of "Northern Directions: Evaluating Strategic Planning in

Northern Canada"; we will invest $656,000 over the next three years to support

Memorial University's Native Liaison Office; we will invest $3.6 million to

complete construction of the College of the North Atlantic Labrador West campus.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We will invest $892,000 to complete the construction of

K-12 schools at Port Hope Simpson and L'Anse au Loup, for a total investment of

$25.4 million; we will invest an additional $200,000 in the Labrador Travel

Subsidy Program to help offset the high cost of travel for Labrador athletes and

teams coming to the island of Newfoundland to compete in provincial sport

competitions, provincial and Canada Games tryouts, and training; the program

also includes a hosting grant for provincial championships within Labrador to

alleviate the cost of teams coming from the island to Labrador to compete in

provincial competitions.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We will further enhance the Medical Transportation

Assistance Program by allowing for the prepayment of 50% of the cost of economy

airfare for medical travel for all residents throughout the Province; we are

investing to enhance mental health and addictions supports in Labrador, which I

will highlight in just a few moments when I outline the significant overall

investment our government is making in mental health and addictions services;

and, we will invest $23.7 million this year toward the construction of the new

$90 million regional health care facility in Labrador West.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, we are standing strong with the people of

Labrador.

STANDING STRONG ON HEALTH CARE

Mr. Speaker, throughout Labrador and across the island, health care is our

number one priority. While it would be impractical for me to list everything our

investments in health care this year will achieve, let me describe some of the

advances we are going to be making, focusing on initiatives that improve access,

address mental health and addictions issues, enhance long-term care services and

expand infrastructure.

Parents of children with autism have told us they want greater access to

intervention programs. We have listened. Currently, the provincial Applied

Behaviour Analysis program ends in Kindergarten.

With an initial investment of $2.2 million this year, we will expand access

to that program to Grades 1 and 2, and with funding of $2.9 million in 2012-13,

we will expand the program to Grade 3.

Funding of $297,000 is also included to add seven positions to enhance the

diagnosis of autism and also decrease wait times for speech language and

occupational therapy services for children with autism and other diagnoses.

In addition, $255,000 is provided to develop a regional office of the

Province's Autism Society in western Newfoundland and expand two programs that

provide specialized therapy for children and youth with autism.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We are also investing in a range of other initiatives to

improve access to care.

We are investing $700,000 to strengthen the Medical Transportation Assistance

Program. As I just mentioned a few moments ago, Mr. Speaker, this will allow the

prepayment of 50 % of the cost of economy airfare for medical travel - a benefit

of great significance to the people of Labrador, western Newfoundland and other

areas. But there is more, Mr. Speaker. We are also going to help those who use

private vehicles when travelling to access insured medical services. We are

lowering the threshold for claiming expenses from 5,000 kilometres a year to

just 2,500 kilometres a year, retroactive to October 1 of 2010.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, we are also investing $734,000 to eliminate

patient fees for interfacility transfers by road and air ambulance services.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: In addition, six new drug therapies will be covered by the

Newfoundland and Labrador Prescription Drug Program.

Access to care is a significant issue for people suffering from kidney

failure. Since 2004, we have greatly improved regional access to dialysis

services right across the Province. This year, as announced last week by the

Minister of Health, we are building on those measures by investing a further

$3.1 million for dialysis enhancements in Burin, in St. John's, in Stephenville,

in St. Anthony and Labrador City.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: There is one more, Mr. Speaker. We are also establishing a

new satellite dialysis site in Harbour Breton.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, we are taking significant steps this year to

advance the care of persons with mental health and addictions issues, to help

reduce the stigma often associated with these conditions. Our government

recognizes that individuals living with mental health and addictions issues in

our communities must have the appropriate programs and services available to

them, and we continue to illustrate that commitment through significant

investments.

We will invest $4.5 million this year to begin, or to finally begin, the

replacement of the Waterford Hospital in St. John's.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: This new mental health facility will support a

modernization of the approach to treating those with mental illness.

One of the biggest challenges in advancing mental health and addictions

issues is the stigma associated with them. We are working to demystify mental

health, create awareness and promote understanding by the public. Through an

investment of $1 million, we will implement three new initiatives for this

purpose: We will develop an interactive, web-based e-mental health service. This

is an innovative and engaging method that creates greater access and service

delivery of mental health services in areas that are geographically isolated; we

will enhance tele-mental health services to increase rural and remote access to

mental health and addictions counselling; and, we will create a provincial

public awareness campaign to decrease the stigma and discrimination attached to

mental illness and addictions and increase understanding of how and when to seek

help.

Our commitment to enhancing mental health and addictions services throughout

the Province continues through the following investments: We will invest $2.2

million to place five full-time mental health and addiction counsellors in Nain,

Hopedale, Makkovik and Natuashish

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: - plus $195,300 to place mental health and addictions

intake workers at Labrador West and Happy Valley-Goose Bay; we will also invest

$402,900 to add two rural case managers for adults in Placentia and Bonne Bay

and add two rural case managers for youth in Corner Brook and Grand

Falls-Windsor; we will provide $180,000 to enable the provincial division of the

Canadian Mental Health Association to staff regional offices in Stephenville and

in Grand Falls-Windsor.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We will provide $140,000 for the Province's Consumer Health

Awareness Network to provide community mental health peer support personnel in

the central and western regions; and, we will provide funding to enable Choices

for Youth to advance its "Moving Forward" program.

In addition to improving access and enhancing mental health and addictions

services, we are also continuing to move forward to enhance long-term care,

acting on some of the input the Minister of Health and Community Services

received in public consultations over the past year. These investments will

include: $2.6 million to increase the current home support hourly subsidy rate;

$2.4 million to increase the personal care home subsidy rate and create new

portable subsidies; $1.1 million to increase the monthly maximums for home

support subsidies; $792,000 to create a Small Personal Care Home Subsidy Program

to address cost pressures that some of the smaller homes are facing; and,

$250,000 to review the current home support program.

We will also invest: $3 million to increase bed capacity at the new long-term

care facility in Corner Brook -

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: - and, $250,000 to implement new legislation regarding the

protection of adults; and,

$189,300 to accommodate a level of care for individuals with dementia

residing at the Protective Care Residence in Corner Brook.

We are committed to continuing to improve recruitment and retention of health

care professionals in our Province and we are proud of the progress we have made

in this area. Right now, we have more physicians and more nurses working in

Newfoundland and Labrador than ever before in our history.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We will continue to do more.

With an investment of $1.2 million, we will increase funding for the resident

bursary program for medical and dental students who choose to serve in

Newfoundland and Labrador communities.

With an investment of $700,000, we will improve accommodations in rural areas

for medical students, recognizing that many who have a positive experience in

these regions are more likely to return to practise and live there.

We are also investing $3.6 million to remunerate physicians who take on

significant leadership roles within the regional health authorities, where their

expertise can be invaluable in improving operations and increasing access for

patients needing care.

We are also investing $902,000 this year and $1.9 million over three years to

offer the Medical Laboratory Sciences program at the College of the North

Atlantic's campus in Grand Falls-Windsor; and, we are investing $1.9 million

through the Labour Market Development Agreement to maintain the College's

Licensed Practical Nursing program.

Recognizing that access to medical services can be improved by moving

patients through the health care system more efficiently, we are investing $1.1

million to implement the efficiency recommendations of the Patient Flow Study

conducted by Eastern Health; and, we are investing $1.8 million to establish a

new Division of Access and Clinical Efficiency within the Department of Health

and Community Services to identify new ways to reduce wait times across our

health care system.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, we will also improve access for patients this

year by investing significantly in health care infrastructure. With more than

$200 million in new and continuing construction and redevelopment projects to

announce this year, we are bringing our total health care infrastructure

investment in 2011-12 to $272.2 million.

In addition to the investment to begin replacement of the Waterford Hospital

in St. John's, we will begin planning for three other new facilities throughout

the Province: $600,000 to begin planning for a redeveloped Green Bay Community

Health Centre in Springdale.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We will invest $90,000 to start construction of a new

building to replace the existing medical centre in Glovertown.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We will also invest $1.7 million for the construction of a

protective care community residence in Clarenville.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We will also be making significant investments this year to

continue work on several major projects already underway, including: $56.2

million to advance the new long-term care facility here in St. John's; $23.7

million this year toward the construction of the new $90 million regional health

care facility in Labrador West; $20 million to advance the new 250-bed long-term

care facility in Carbonear; $18.5 million to advance the construction of a new

hospital in Corner Brook; $12.1 million to advance the redevelopment of the

North Haven Manor in Lewisporte; $6.8 million to advance the redevelopment of

the Central Newfoundland Regional Health Centre in Grand Falls-Windsor, which

represents an overall project investment of $30 million; and, $5.5 million to

advance the redevelopment of the James Paton Memorial Regional Hospital in

Gander, which represents an overall project investment of $28.3 million.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: In addition, we are committing a further $17.8 million to

expand the PET/CT cyclotron project. This funding will see the consolidation of

nuclear medicine services at one site and allow for the future expansion of the

cancer care program, which will increase the total project cost to approximately

$29.8 million.

Mr. Speaker, we cannot speak responsibly about health care without focusing

on preventative health care and wellness. You have to look no further than our

government's Provincial Wellness Strategy, in which we invest $4.1 million

annually, to recognize that we are committed to promoting health and wellness

throughout the Province.

Some of this year's initiatives include: $477,700 to expand the Janeway

Lifestyles Program, providing services to help lower children's risk factors for

certain illnesses; $225,000 for a school-based tobacco prevention campaign that

campaign that focuses on youth and young adults with smoking prevention and

cessation messages, plus an increase in funding to the Newfoundland and Labrador

Lung Association for the operation of the Smokers' Helpline; and, $64,900 to

increase the Mother Baby Nutrition Supplement Program for some 400 pregnant

women a month.

STANDING STRONG ON SAFETY

Mr. Speaker, complementing health is safety, and safety can mean many things:

for example, keeping children safe from harm, keeping families safe from

violence, keeping citizens safe from crime, keeping workers safe from accidents

and keeping communities safe from damage. We are taking action on all of these.

To keep children safe from harm: We are investing an additional $9.2 million

in the new Department of Child, Youth and Family Services to bring our total new

investment in that department to $33 million in just two years.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Having undertaken the first transition of staff from the

Western Regional Health Authority to the new department on March 28, we will

undertake the remaining three transitions in stages over the next year; and, we

are hiring 15 staff to complete the corporate structure.

To keep families safe from violence: We are investing $360,000 to increase

safety and security at ten transition houses; we are investing $100,000 to

increase the capacity of ten Regional Coordinating Committees for violence

prevention activities; we are investing an additional $10,000 to enable the

Newfoundland and Labrador Sexual Assault Crisis and Prevention Centre to expand

services Province-wide; we are investing an additional $46,000 in the Province's

eight Status of Women Councils to help women access services and programs

related to social issues including safety, as well as economic well-being; and,

we are investing $529,000 to continue the Specialized Family Violence Court

pilot project to provide treatment intervention for eligible offenders and

support for victims and their children.

To keep citizens safe from crime: We are building on our strong and ongoing

investments in policing over the past several years by funding an additional

crime analyst to apply the RCMP's Crime Reduction Strategy in Trinity-Conception

District; and, we are investing $108,300 a year for a Royal Newfoundland

Constabulary officer to staff a Child Exploitation Prevention Unit in Corner

Brook, further expanding our Province's capacity to combat child exploitation.

This government has increased investments in policing by over 70% since 2004.

This includes the creation of 192 positions, including 144 uniformed positions.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: To keep workers safe from accidents: An additional $2.8

million, cost shared by the

Province, the federal government and industry, is being provided to the

Canada-Newfoundland and Labrador Offshore Petroleum Board to support its

operations and implementation of the recommendations for Phase I of the Offshore

Helicopter Safety Inquiry. We look forward to any further recommendations coming

from Commissioner Wells as he completes Phase II of his Inquiry. Our commitment

to improving safety offshore is strong and is unwavering.

We are also investing $650,000 over the next three years to support Memorial

University's purchase and installation of two simulators: a Helicopter Ditching

Trainer and a Freefall Lifeboat Simulator.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: To keep communities safe from damage: We are investing

$510,000 to maintain tailings dams at Baie Verte, Daniel's Harbour, Springdale

and South Brook; and, we are investing $100,000 for coastal vulnerability

mapping to prepare for storm surges, flooding, coastal erosion and landslides

that are associated with climate change.

Mr. Speaker, we are investing $3.9 million to purchase as many as twenty-two

new fire trucks and firefighting vehicles -

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: - an increase in funding from $2.5 million last year; and

we are also continuing to invest $1 million for new firefighting equipment such

as certified breathing apparatus and bunker suits bringing our total investment

in fire protection services this year to a historic high of $4.9 million.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, volunteers are the lifeblood of vibrant

communities. Approximately 5,900 volunteer firefighters contribute to the

security and safety of communities throughout Newfoundland and Labrador, and we

deeply appreciate the commitment they are making. Today, I am announcing a new

non-refundable Volunteer Firefighters' Tax Credit which will provide a benefit

of up to $231 to eligible volunteer firefighters - a total benefit of $1.4

million.

SOME HON. MEMBERS: Hear, hear!

STANDING STRONG ON COOPERATION

MR. MARSHALL: Mr. Speaker, through regional and community co-operation,

we are forging partnerships that enable us to reach further and achieve more

than we could otherwise. For example, while regional waste management may not be

the answer for every community, for many it is an ideal way to cut costs by

sharing services. The same cooperative approach can ensure all sorts of reliable

services are delivered to citizens at reduced costs: recreational

infrastructure, firefighting and many others.

Co-operation is particularly evident in many sectors of our economy.

Communities and regions are co-operating more than ever to enhance tourism

opportunities. Cupids 400 was one example, and there are others.

In keeping with our tourism strategy entitled, "Uncommon Potential", we will

continue to run our award-winning tourism marketing campaign with a budget this

year of $13 million, which is $7 million higher than the marketing budget when

we first took office.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We will invest $300,000 to continue to develop and support

multi-seasonal tourism products and to focus on regions offering great promise

for growth: Labrador and the Twillingate-New World Island area; we will invest

$450,000 in winter tourism infrastructure for the skiing centre of the West

Coast: Marble Mountain; and, to promote the Province's tourism experiences to

visitors arriving on the ferry to Argentia, we will upgrade the area's Visitor

Information Centre with an investment of $500,000.

A key feature that many tourists are drawn here to experience is our rich,

vibrant and varied cultural heritage.

Building on our Strategic Cultural Plan, which has brought a total investment

of $48.8 million to the cultural sector since the plan's inception, we will

invest a further $3 million over the next two years for season three of the

Republic of Doyle, bringing to $7.5 million our total commitment in this

internationally syndicated showcase of Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: We will invest $2.8 million to leverage additional funding

to restore the historic Colonial Building; we will invest $375,000 to revitalize

the presentation of live performances at regional Arts and Culture Centres and

community presentation venues, and to give audiences, particularly our students,

greater access to these facilities; we will invest $200,000 in the Cultural

Economic Development Program to engage community groups in promoting key

heritage attractions; we will invest an additional $150,000 in the Newfoundland

and Labrador Arts Council, bringing the total annual grant to $2.1 million; and,

we will invest in Provincial Historic Sites programming to promote a sense of

cultural ownership that will enhance their appeal.

Mr. Speaker, some of our greatest monuments mark some of our most profound

tragedies. This year, we will provide $400,000 to erect a monument to Cougar

Flight 491. Following appropriate consultations with the bereaved families and

with fellow offshore workers, we will issue a Request for Proposals for a

suitable design.

As our Province grows, so too our cultural richness is growing as immigrant

families choose Newfoundland and Labrador to be their new home, and we certainly

welcome them. Through our Immigration Strategy, we are embracing immigrants as

members of our family. With an additional investment of $150,000 over the next

three years, we will support grants and subsidies for settlement and integration

events and other community initiatives that nurture a welcoming atmosphere.

As our municipal leaders work co-operatively with each other to provide

services, we will work more closely with them to grow our communities. For the

first time in over a decade, we are increasing the Province's Municipal

Operating Grants by providing a one-time increase of $4.6 million, bringing the

total allocation to $22.4 million.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Along with this increase, the Department of Municipal

Affairs will also undertake a review of the MOG formula. Allocations for this

year will increase the current Municipal Operating Grants for municipalities as

follows. The bulk of the increase - 50% - will go to municipalities with fewer

than 1,000 people; 30% will go to municipalities with 1,000 to 3,000 people; 20%

will go to municipalities with 3,001 to 7,000 people; and 10% will go to

municipalities with over 7,000 people.

We are also investing $14 million to continue the Provincial Solid Waste

Management Strategy to divert garbage from landfills, water tables and

incinerators.

This year, Mr. Speaker, we are also committing a further $30 million in block

funding for recreational and multi-purpose facilities that will be used to

leverage funding from other sources and will be spent over the construction life

of the projects.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Municipal infrastructure is at the core of our communities.

In sum, the Province is allocating $140.8 million for municipal infrastructure

this year an investment that will leverage federal and municipal funding, and

bring the year's total investment to $219 million.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: To further support the growth of our communities and

families, we are announcing two initiatives that will help homeowners and

generate additional business for local enterprises.

Firstly, building on a successful two-year pilot project to lower household

energy costs, we are today announcing a new three-year, $12 million investment

in the Residential Energy Efficiency Program.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Secondly, Mr. Speaker, with a provincial investment over

the next three years of $24 million and a total investment of $36 million, we

are announcing a three-year extension to the Provincial Home Repair Program to

help seniors stay in their homes.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Finally, Mr. Speaker, let me close by making it perfectly

clear that, on our watch, Newfoundland and Labrador will continue to benefit

fully and fairly from the development of our resources, and that Newfoundlanders

and Labradorians will continue to feel those benefits directly. As our Province

becomes an energy powerhouse, it is important that we continue to maximize the

benefits that Labradorians and Newfoundlanders receive from these developments.

To that end, I am announcing today a rebate equivalent to the 8% provincial

component of the HST for residential energy generated by home heating fuel,

electricity and other energy sources for every household in the Province.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: The rebate program will be effective October 1, 2011, in

time for the winter heating season, and will assist individuals, families and

seniors with the rising cost of energy, and it will be in addition to the

current home heating rebate.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Our energy tax rebate will put another $38 million back in

the hands of taxpayers. All this, plus the electricity rate-reduction impact of

a federal loan guarantee on Muskrat Falls, will reduce the cost of living for

all consumers in Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

Conclusion

MR. MARSHALL: We believe in our families, Mr. Speaker. We believe in our

future. We have the vision, the plan and the drive. We are steadfastly focused

on the best interests of Newfoundlanders and Labradorians.

Many of our great communities are small in size, but they are anything but

small in their thinking.

The people of our great Province are known for thinking ahead of the curve

and dreaming dreams so big that some governments have been unable to keep pace.

Not ours, Mr. Speaker.

In years past, when people could not find opportunities here at home, they

travelled the globe to find challenges big enough to satisfy their drive and

ingenuity. Whether it's been raising the skyscrapers of New York, revving the

engines of Ontario or wringing wealth from the oil sands of Alberta, you will

always find a Newfoundlander and Labradorian when there's a tough job to be

done.

Now the time has come to turn the focus to home. This is where the golden

opportunities are. Oil, gas, minerals, hydro, fish, farms, flora, fauna, oceans,

aerospace, genomics, robotics, green technology, ecotourism, and on and on the

list of opportunities right here grows and grows.

We are closer than ever to achieving our goals. This is no time to retreat,

no time to recoil, no time to fall back or back down.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: With this year's Budget, we stake our ground.

With a commitment to fiscal responsibility, we are standing strong.

With a commitment to low taxation, we are standing strong.

With the continent's greatest green energy resource on the Lower Churchill

River on the threshold of being developed, we are standing strong.

With the leadership our Province's tenth Premier is demonstrating on this

project and every project, Mr. Speaker, we are standing strong.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: With investment poised to grow, with our economy poised to

grow, with employment poised to grow, with personal income poised to grow, with

disposable income poised to grow, with retail sales poised to grow, with our

population poised to grow, with prosperity poised to grow, we are standing

strong.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Stronger than ever.

More confident than ever.

More sure than ever that we are on the one path that leads us to where we

need to go.

To a brighter future of opportunity and prosperity for the people of

Newfoundland and Labrador!

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: I move, seconded by the Minister of Health and Community

Services, that the debate be adjourned.

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

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

The motion is carried.

On motion, Budget Debate adjourned.

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

Board.

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

received a message from His Honour the Lieutenant Governor.

MR. SPEAKER: All rise.

The letter is addressed to the hon. the Minister of Finance and President of

Treasury Board.

It states: As Lieutenant Governor of the Province of Newfoundland and

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

Province for the year ending 31 March 2012, in the aggregate of $7,360,504,100

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

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

Sgd.: ________________________

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

Lieutenant Governor

Please be seated.

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

MR. MARSHALL: Mr. Speaker, I move, seconded by the Minister of Health and

Community Services, that the message together with the Estimates be referred to

a Committee of Supply.

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

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

of Supply and that I do now leave the Chair.

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

The motion is carried.

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

Supply, Mr. Speaker left the Chair.

Committee of the Whole

CHAIR (T. Osborne): Order, please!

We shall now take a few minutes to allow the Pages to distribute the

budgetary documents to all hon. members.

[Budgetary documents are distributed]

CHAIR: Order, please!

The hon. the Government House Leader.

SOME HON. MEMBERS: Hear, hear!

MS BURKE: Mr. Chair, I move that the Committee rise, report progress and

ask leave to sit again.

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

leave to sit again.

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

CHAIR: All those against, nay'.

Carried.

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

again, Mr. Speaker, returned to the Chair.

MR. SPEAKER (Fitzgerald): Order, please!

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

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

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

progress, and ask leave to sit again.

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

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

report progress and ask leave to sit again.

When shall the report be received?

MS BURKE: Now, Mr. Speaker.

MR. SPEAKER: Now.

When shall the Committee have leave to sit again?

MS BURKE: Tomorrow, Mr. Speaker.

MR. SPEAKER: Tomorrow.

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

tomorrow.

MR. SPEAKER: Notices of Motion.

Notices of Motion

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

Board.

MR. MARSHALL: Thank you, Mr. Speaker.

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

An Act To

Amend The Income Tax Act, 2000. (Bill 31)

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

Act To Amend The Tax Agreement Act, 2010. (Bill 32)

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

Act To Amend The Revenue Administration Act No. 2. (Bill 33)

Thank you, Mr. Speaker.

MR. SPEAKER: Further notices of motion?

The hon. the Government House Leader.

MS BURKE: Mr. Speaker, by leave, I would like to give notice regarding

the Committees for Estimates and the composition of these committees.

MR. SPEAKER: The hon. the Government House Leader, by leave?

AN HON. MEMBER: By leave.

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

MS BURKE: Thank you, Mr. Speaker.

I give notice and by leave move that the following committees comprise the

following members. The Resource Committee will consist of the following: the

Members for Lewisporte, Burgeo & La Poile, Labrador West, Topsail, The Straits &

White Bay North, Grand Falls-Windsor-Green Bay South, Cartwright-L'Anse au

Clair, Signal Hill-Quidi Vidi, and Conception Bay East & Bell Island.

The composition of the Government Services Committee will be: the Members for

Exploits, Port de Grave, St. John's East, The Straits & White Bay North,

Kilbride, Bay of Islands, Signal Hill-Quidi Vidi, Burgeo & La Poile, and Baie

Verte-Springdale.

The composition of the Social Services Committee will be: the Members for

Ferryland, Port de Grave, Port au Port, The Straits & White Bay North,

Cartwright-L'Anse au Clair, Signal Hill-Quidi Vidi, Cape St. Francis, St. John's

North, and St. Barbe.

The following Heads of Expenditure will be referred to the Social Services

Committee: the Department of Child, Youth and Family Services; the Department of

Human Resources, Labour and Employment; the Status of Persons with Disabilities;

Labour Relations Agency; Newfoundland and Labrador Housing Corporation and Youth

Engagement; the Department of Municipal Affairs; the Department of Justice and

Attorney General; the Department of Education, and the Department of Health and

Community Services.

The following Heads of Expenditure will be referred to the Government

Services Committee: the Department of Finance and Treasury Board; the Public

Service Commission and the Office of the Chief Information Office; the

Department of Government Services; Government Purchasing Agency; the Department

of Transportation and Works; the Department of Labrador Affairs; the Department

of Aboriginal Affairs; the Department of Intergovernmental Affairs; Volunteer

and Non-Profit Secretariat.

The following Heads of Expenditure will be referred to the Resource

Committee: the Department of Business; the Department of Environment and

Conservation; the Department of Fisheries and Aquaculture; the Department of

Innovation, Trade and Rural Development; as well as the Newfoundland and

Labrador Research Council, Rural Secretariat, the Status of Women and

Francophone Affairs; the Department of Natural Resources, Agrifoods and

Forestry; and the Department of Tourism, Culture and Recreation.

On tomorrow, April 20, the Social Services Committee will meet in the House

at 9:00 a.m. to review the Estimates of the Department of Municipal Affairs, and

tomorrow afternoon the Resource Committee will meet in the House at 5:30 p.m. to

review the Estimates of the Department of Natural Resources, Agrifoods and

Forestry.

MR. SPEAKER: Shall the committee structure as put forward by the hon. the

Government House Leader carry?

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

The motion is carried.

Motion carried.

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

MS BURKE: Thank you, Mr. Speaker.

I move, seconded by the Premier, that the remaining Orders of the Day do

stand deferred and the House on its rising do now adjourn.

MR. SPEAKER: The motion is that this House do now adjourn.

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

This House now stands adjourned until 2:00 o'clock tomorrow, being Wednesday.

This House now stands adjourned.

On motion, the House at its rising adjourned until tomorrow, Wednesday, at

2:00 p.m.