May 14, 2007 HOUSE OF ASSEMBLY

PROCEEDINGS Vol. XLV No. 12

The House met at 1:30 p.m.

MR. SPEAKER (Hodder): Order, please!

Admit strangers.

This afternoon we are pleased to welcome six Level III students from Basque

Memorial School in Red Bay, Labrador, in the District of Cartwright-L'Anse au

Clair. These students are accompanied by their teacher, Ms Amanda Anthony.

Welcome to the House of Assembly.

SOME HON. MEMBERS: Hear, hear!

Statements by Members

MR. SPEAKER: This afternoon we have members' statements as follows: the

hon. the Member for the District of Conception Bay South; the hon. the Member

for the District of Grand Falls-Buchans; the hon. the Member for the District of

Terra Nova; the hon. the Member for the District of Humber Valley; the hon. the

Member for the District of Topsail; and, the hon. the Member for the District of

Port de Grave.

The Chair recognizes the Member for Conception Bay South.

SOME HON. MEMBERS: Hear, hear!

MR. FRENCH: Thank you, Mr. Speaker.

I rise today to recognize and congratulate Dr. Adrian Power for his

contribution to the sporting community in Conception Bay South.

From May 4 to May 6, Dr. Power organized a curling extravaganza, starting

with a day of training on May 4 and ending with a two-day fun spiel. This event

saw over 450 people receive a basis lesson in curling on Friday; most notable

was the participation of 300 students from the various schools in our town.

The event continued Friday night with demonstration games between our

Province's most celebrated curlers. In attendance there was the 2006 Senior

Men's and Male Champions, the 2007 Senior Ladies and Ladies Champions, the

Newfoundland Junior Men's Champions, the Newfoundland Under-17 Female and Male

Champions and, of course, the 2006 Olympic Gold Medalists.

On Saturday and Sunday over twenty teams competed in the fun spiel, bringing

the total participation in the weekend event to 1,700 people.

I would also like to congratulate the recreation staff and, in particular,

the staff and management at the CBS Stadium. This exceptional group of people

transformed an ice hockey rink into a curling rink, and you can only imagine the

time and dedication needed for this to happen successfully. To quote one of the

many kids in attendance, "The ice looked wicked."

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

Adrian Power and all those who contributed to brining the great sport of curling

to Conception Bay South.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Grand Fall-Buchans.

SOME HON. MEMBERS: Hear, hear!

MS THISTLE: Thank you, Mr. Speaker.

Mr. Speaker, during my almost twelve years as MHA I have been to many

official openings, but last Wednesday I experienced a first. I rise in this

House today to extend congratulations to Aur Resources on the official opening

of their Duck Pond mine. The mining industry is not revitalized in the

Millertown-Buchans area.

Mr. Speaker, "we are ready". Those are the words that were spoken

by each departmental supervisor as part of the official opening ceremonies last

Wednesday when mine manager Guy Belleau questioned them to determine whether the

employees and the mine were prepared to produce concentrate.

Aur Resources is blasting its way into the economy of Newfoundland and

Labrador with their investment of over $100 million into their Duck Pond mine.

Mr. Speaker, the project started in 1973 when a significant body of copper

and zinc was discovered by prospector Allan Keats of Gambo. In fact, he was in

attendance last week. The property changed hands several times until Aur

purchased the rights in March 2002 and construction began in the first quarter

of 2005.

Mr. Speaker, one of the most significant benefits noted during the opening

ceremonies by all speakers was the fact that out of the 200 permanent jobs at

Duck Pond mine, 95 per cent of the employees are Newfoundlanders and

Labradorians - many of those returning home from mainland Canada to work at the

mine site.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MS THISTLE: In April of this year, the first shipments of concentrate

left the mine site bound for St. George's on the West Coast and from there it

is transported to smelters. Presently, ten tractor-trailer loads of concentrate

are being hauled out of the mine every day, each one containing forty tonnes of

ore, and this is expected to increase to fourteen tractor-trailers by early

summer.

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

extending congratulations to Aur Resources on the official opening of their Duck

Pond mine in Millertown. Best wishes to Aur Resources management and staff for a

long and prosperous future in our region.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Terra Nova.

SOME HON. MEMBERS: Hear, hear!

MR. ORAM: Thank you, Mr. Speaker.

Mr. Speaker, I rise today to congratulate the Glovertown Gymnastics Club on

an outstanding performance at the Flight Invitational 2007, held at Gander. The

club may only have sent five members to the competition, but the small squad

showed they could compete with the larger clubs. As a unit, the Glovertown

gymnasts claimed nine individual medals, and two overall accolades, including

one gold at the two-day event.

Mr. Speaker, Jake Marshall led the Glovertown Charge by capturing overall

honours in the boys under ten Level I division by placing first in all five of

his individual events. Rebecca Smith captured Glovertown's second overall

medal by finishing third in the provincial Level II tyro competition. Victoria

Pollard was just a few positions back of Smith in the same category. Katlyn

Hawkins was twelfth in provincial Level I argo, and Taylor Blackwood came

seventeenth in provincial Level I tyro to round out Glovertown's results.

Mr. Speaker, the success of this smaller gymnastic team shows that smaller

teams from rural areas can certainly compete with clubs from larger areas in

Newfoundland and Labrador.

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

congratulating the Glovertown Gymnastic Club on their impressive achievements.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Humber Valley.

MR. BALL: Mr. Speaker, I rise in this House today to recognize a

constituent from my district, Jessica Rowe of Deer Lake. She recently took

part

in the district's annual Royal Canadian Legion Branch 3 Remembrance Day senior

essay competition, and went on to win the provincial title.

Due to her win at the provincial level, Jessica became the second constituent

in consecutive years from my district to be awarded the honour of representing

the region's youth at Beaumont Hamel. She will be travelling with the Canadian

contingent to France on June 28 and spend six days exploring our history. She

will stand proud and present her winning speech to those in attendance at the

Canada Day Ceremony.

Mr. Speaker, seventeen-year-old Jessica, who is the daughter of Denise and

Israel Rowe, will become one of the Province's high school graduates this

year, finishing off her high school career a straight "A" student. She

hopes to further her education at Sir Wilfred Grenfell College in September and

has her goal set on becoming a member of our prestigious Royal Newfoundland

Constabulary.

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

to Jessica Rowe on winning the first place senior essay competition and

representing the region's youth at Beaumont Hamel.

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MS E. MARSHALL: Thank you, Mr. Speaker.

This past Friday, the Town of Paradise held its annual Municipal Awards

Banquet to recognize several residents who have made a significant contribution

to their community. The town also presented a number of awards during the

evening.

Mr. Bob Bennett received the Volunteer of the Year Award. Mr. Bennett is a

devoted member of the Topsail United Church and is involved with all activities

of the church.

The Kin Club of Paradise received the Volunteer Group of the Year Award. The

Kin Club is actively involved with the youth in our community, as well as a

number of events to help the less fortunate.

Ms April Stapleton received the Youth of the Year Award. She participates in

numerous school and other activities. April volunteers with the SPCA and is a

member of the Girl Guide movement.

Ms Jennifer Neville received the Coach of the Year Award. Jennifer coaches

soccer in Paradise and also at the provincial and national level.

Ms Sarah Davis received the Female Athlete of the Year award for her

involvement in women's hockey. She is also captain of the Boys Bantam A Hockey

Team.

Mr. Michael Pittman received the Male Athlete of the Year for his involvement

in a number of sports including: rugby, hockey, baseball, volleyball and soccer.

Ms Ruth Anne Burnell was selected as Citizen of the Year. Ruth Ann helps out

in many areas including church, Sunday school, assisting neighbours who are in

ill health and other activities too numerous to mention.

Mr. Speaker, I ask all Members of the House of Assembly to join me in

congratulating all of the award winners, as well as those who were nominated for

their individual achievements in their community, the Town of Paradise.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

MR. BUTLER: Mr. Speaker, I rise in this House today to extend

congratulations on the tenth Annual Regional Historical Heritage Fair held at

the Bay Arena, Bay Roberts on May 11-12, 2007. I was honoured to be a part of

the opening and closing ceremonies.

Forty-two schools, nearly 200 students and approximately 145 exhibits were on

display representing the Avalon region. The Fair's program supports school

curricula and helps bring history alive for students.

I am sure that the hon. members for Mount Pearl and Harbour Main-Whitbourne

would agree that it brought history alive for each and everyone who was in

attendance.

Mr. Speaker, this year's themes is: Where Once They Stood, and I can assure

you that the general public and judges were entertained and informed through

music, dance, drama, art, video and costume.

This year's winners, who will represent the Avalon region at the national

fair in Lethbridge, Alberta on July 9-16 were: Matthew Morry, from St. Peter's

Junior High, Mount Pearl and Andrew Bonnell from I.J. Samson Junior High, St.

John's. Those awards were presented by His Honour the Lieutenant Governor,

Edward Roberts.

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

you to the organizers, the sponsors and all those who participated. A special

congratulations and best wishes to those who will participate at the nationals.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Statements by Ministers.

Statements by Ministers

MR. SPEAKER: The hon. the Minister of Natural Resources.

SOME HON. MEMBERS: Hear, hear!

MS DUNDERDALE: Mr. Speaker, I rise today to inform Members of the House

of Assembly that my department is seeking proposals from those interested in

pursuing the development of the forest products industry in Central Labrador.

The formal call for Expressions of Interest will allow us to assess the level

and type of interest in the harvesting, sawmilling and secondary processing

sectors in this region.

Mr. Speaker, we released in November the Strategic Plan to Develop Labrador

Secondary Manufacturing and Value Added Wood Products Industry. The independent

study identified potential forestry operations based on the constraints and

opportunities in the Labrador forest sector.

The study recommends the establishment of a sawmill and manufacturing plant

in Happy Valley-Goose Bay, to produce construction lumber and packaged homes

both for local and northern markets.

At the time the study was released, we established a senior management team

with representation from a number of government departments to work through the

issues identified in the study. This included the viability of the

recommendations, identification of investors and proponents.

Mr. Speaker, I am pleased to inform members today that as a result of this

work, we are now ready to explore the capacity of local interests to develop

this sector. The proposals we received through this process will be evaluated

against their linkage to the recommendations in the study.

The forest sector in Labrador holds opportunities for development and we are

now attempting to determine the interest in pursuing projects that hold the most

promise. We look forward to receiving the proposals and to see work start on the

creation of a new diversified industry in Labrador for the benefit of the people

of Labrador.

Mr. Speaker, we have consulted with interest holders in Labrador at every

step in this process and we believe that with the right strategic approach, the

forest industry in Labrador has a very, very bright future.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Cartwright-L'Anse au Clair.

MS JONES: Thank you, Mr. Speaker.

I would like to thank the minister for an advanced copy of her statement. I

agree with one thing she says in the statement, and that is that the forest

sector has a great future in Labrador.

Mr. Speaker, this government continues to fail miserably in putting their

money where their mouth is, and I say that because they talk about development

of industry in small communities and revitalizing rural economies in this

Province, but yet we have the government again calling for the creation of a

sawmilling and secondary wood processing facility in Central Labrador and not on

the South Coast of Labrador.

Mr. Speaker, this development alone will create almost 100 new jobs and it

would increase the long-term viability of communities adjacent to heavy forest

resources like Port Hope Simpson, Charlottetown, Cartwright, St. Lewis, Mary's

Harbour, all rural remote communities in our Province.

I am going to say to the minister, she knows that these areas of our Province

are dependent upon only two resources, that being the forestry and the fishery.

I have met with her officials -

MR. SPEAKER: Order, please!

The hon. member's time has expired.

MS JONES: May I have leave to conclude, Mr. Speaker?

AN HON. MEMBER: By leave.

MR. SPEAKER: Leave has been granted.

MS JONES: I say to the minister, I had met with her officials. I have

attended the brief selective and limited consultation that they have held

regarding this issue, which I might add was excluded from any presence or major

presence of the Labrador Metis Nation, and I am appalled that the only solution

that the minister and her department could find for the nearly 100 cubic metres

of wood that lies in my district is to have it trucked to Happy Valley-Goose

Bay.

Mr. Speaker, that does not lay promise or economic opportunity for the people

of Southern Labrador, and I have nothing against Central Labrador or against

Happy Valley-Goose Bay. I have stood in my place in this House and I have been a

strong proponent for things like 5 Wing Goose Bay, for the Lower Churchill

Development, for the future mining industry in Happy Valley-Goose Bay and the

potential promise that it has, Mr. Speaker. What disappoints me is that this

forestry concept that the minister talks about is a perfect fit for the South

Coast of Labrador and I am appalled that she and her government is not seeing

the real benefit that this industry can create for Labradorians in the South

Coast of Labrador.

SOME HON. MEMBERS: Hear, hear!

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

MS MICHAEL: Thank you, Mr. Speaker.

I thank the minister for the advance copy of her statement.

Obviously, I am always glad to see secondary processing happening and, on the

surface, I was quite pleased to see this message from the minister; however,

when I did take a quick glance at the report, I looked to see if, in the

appendices, there was a list of those who were consulted. I was disappointed to

see there was not, although I think the report mentions eighty people. I do not

know if it is people or groups.

MR. SPEAKER: Order, please!

The hon. member's time has lapsed.

MS MICHAEL: By leave, Mr. Speaker?

AN HON. MEMBER: By leave.

MR. SPEAKER: Leave has been granted.

MS MICHAEL: Thank you.

The one thing I would like to say is that I hope the consultation was broad

enough so that in doing this project the minister in the ministry will be

meeting the needs of all the communities in Labrador - and I am hearing from my

colleague that perhaps that has not been the case - meet the needs of the

communities, that the housing that is being built is going to meet the needs of

the different size families in Labrador and in northern regions, because you

have quite a variety of family sizes. I also hope that they are going to be

looking at issues like energy efficiency in putting these units together.

Thank you very much, Mr. Speaker.

MR. SPEAKER: Further statements of ministers.

The hon. the Minister of Justice.

SOME HON. MEMBERS: Hear, hear!

MR. T. OSBORNE: Thank you, Mr. Speaker.

I rise in the House today to recognize Police Week and to pay tribute to our

two outstanding police forces in the Province.

Office of Public Safety and Emergency Preparedness Canada and its provincial

counterparts. It starts on the Sunday in the week that contains May 14, ending

on that Saturday, the following Saturday. Today, May 14, is recognized

internationally as Peace Officer Memorial Day.

During Police Week, community groups will join with police services in

arranging special activities and displays that promote the concept of police and

community working together to enhance public safety and security. At this time,

police take the opportunity to highlight the services and technology that they

provide within their communities.

Earlier today, I joined the Royal Newfoundland Constabulary and the Royal

Canadian Mounted Police to celebrate with some of our Province's young people

to help them understand the important role that police officers play within our

communities, and later today I will participate in honouring long-term RNC

members - and it is certainly a wonderful part of my ministerial duties.

I believe that our government has proven that we, too, value the role of both

police forces by the investments that we have put into policing.

In Budget 2007, this Administration responded to the recommendations of the

Lamer report by investing more than $2 million this fiscal year. That is

following two previous years, Mr. Speaker, of investments in both police forces

in the Province. Many of those resources are dedicated to policing.

We provided funding this year for both the RCMP and the RNC for new

positions. Mr. Speaker, we have also extended the recruitment program for the

RNC for an additional three years, this year.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

MR. PARSONS: Thank you, Mr. Speaker.

I thank the minister for an advance copy of his Ministerial Statement.

We also, in the Opposition, would like to extend our congratulations and best

wishes to all police officers in our Province during this National Police Week.

Indeed, best wishes and thank you to all peace officers, which would, of course,

include all police officers in our Province.

The release refers to police and community working together to enhance public

safety and security; but, of course, anyone who lives in this Province knows

full well that the police officers in our Province do more than just provide

safety, enhance safety and protection and security issues. They play a major

role in our communities, whether it be social but particularly recreational, so

their contribution to our communities in our Province have been well recognized

for many years and it has been pleasing to see that there is indeed such a thing

as National Police Recognition Week.

With regard to the investments, I can certainly appreciate the situation that

any minister or Attorney General finds himself in, in this Province. The need

for investments, of course, is ever changing, given attrition and given changing

technologies and the professional standards that change over time. Just about

every one of them has a major price tag attached to it. You need to keep making

MR. SPEAKER: Order, please!

The hon. member's time has expired.

AN HON. MEMBER: By leave.

MR. SPEAKER: Leave has been granted.

MR. PARSONS: Thank you.

In order to keep abreast, even, with these major changes that are occurring

in our police forces, and to keep them truly profession and up to date, we have

to continue making these investments in our forces.

I would also like to take this opportunity to pay our respects and

remembrance to all of those police officers who have passed on. This being May

14, of course, Peace Officer Memorial Day.

Thank you.

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

MS MICHAEL: Thank you, Mr. Speaker.

I, too, thank the minister for his advance copy of the statement and I, too,

pass on my congratulations and best wishes to all those involved in policing in

this Province.

The NDP has been calling for awhile now for foot patrols as a way of dealing

with rising crime in this Province. I know that there are sixteen new positions

in the Budget. Whether or not these in any way can deal with foot patrols, I do

not know.

In a note from the Chief of Police dated October 13, 2006 -

MR. SPEAKER: Order, please!

The hon. member's allotted time has expired.

MS MICHAEL: By leave, please, Mr. Speaker?

AN HON. MEMBER: By leave.

MR. SPEAKER: Leave is granted.

MS MICHAEL: Thank you.

A note from the Chief of Police dated October 13, 2006, to my predecessor

indicates that he does believe that foot patrols can be effective policing

strategy; however, the current budget that he has to work with does not allow

the level of staff that would be required, except for special occasions.

I would hope that if the sixteen new positions that are there this year

cannot meet putting in more foot patrols at more times than just special

occasions, that the minister will think about the need for that in the next

budget.

Thank you very much, Mr. Speaker.

MR. SPEAKER: Further statements by ministers?

Oral Questions.

Oral Questions

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

MR. REID: Thank you, Mr. Speaker.

Mr. Speaker, the Minister of Fisheries has stated publicly that both he and

the Premier have made it absolutely and abundantly clear that if the Government

of Newfoundland and Labrador is to approve the sale of FPI's assets then the

quotas and licences of that company must rest with the Province. In fact, Mr.

Speaker, the minister confirmed that in the House last Monday.

Mr. Speaker, media reports today suggest that the Province is backing away

from this position. I ask the minister where he and his government stand with

regard to FPI quotas today.

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

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: Mr. Speaker, the government's stand with respect to FPI

quotas and licences as it relates to its groundfish quotas are the same today as

they were yesterday, as they were when the Leader of the Opposition asked a

question, I believe it was on Thursday, as it was the day before that, and as it

has been many, many days and many, many weeks previous.

I have made it abundantly clear, the Premier has made it abundantly clear,

that we sought the position and took the position that the ownership and control

of those quotas ought to rest with the Government of Newfoundland and Labrador,

or some entity thereof. The federal minister has a different view.

When we last met in Ottawa, a week ago Sunday past, the federal minister

indicated that he would look at some regulatory possibilities of beefing up the

condition of licence scenario that they wished to pursue. We did not accept

that, we did not reject that, we said we would be open-minded and look at that.

That is exactly where we are as of this moment, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

MR. REID: Mr. Speaker, I do not know how the minister can have it both

ways. He is saying, first and foremost, that they will not allow the deal to go

through unless we gain control of the quotas - the Province, the Government of

Newfoundland and Labrador. Now you are talking about assurances, or rules and

regulations that the federal minister might change in order to make this happen.

That still does not mean that you will own the quotas.

It is my understanding that the federal government says that they will not be

transferring the quotas directly to the Province, and he is giving some

assurances that they may be able to do something.

Well, Mr. Speaker, I say to the Minister of Fisheries and all those opposite

that we have had assurances in writing from Stephen Harper and his gang on

non-renewable natural resources. Where did that get us?

I ask the minister: What assurances has the federal minister given you that

he, in fact, will transfer the quotas to this Province?

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

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: Mr. Speaker, unless the Leader of the Opposition is not

cognizant of what is happening around him, the federal minister has given no

assurances. In fact, the federal minister has taken the position that he is not

prepared to transfer quotas to the Province, and he has made that abundantly

clear.

We have made it just as clear that we sit on a different plane and we have a

different position. Now, is it possible to square that circle? I do not know if

it is possible to square it or not, but the question that he puts to me is not

one that I can answer. It is one that the federal minister has to answer. He has

made it clear that he is not prepared to do an Arnold's Cove type deal any

more with the Province of Newfoundland and Labrador, despite the fact that he is

prepared to allow it to happen and carry on in Nunavut, despite the fact that he

has allowed to have it carry on with P L che

Nordique in Quebec, despite the fact that he has allowed it to carry on with

other entities and other regimes in Atlantic Canada.

That question I cannot answer; it is for somebody else to answer.

SOME HON. MEMBERS: Hear, hear!

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

MR. REID: Thank you, Mr. Speaker.

The minister said in response to my first question, that the deal will not go

forward unless we gain control of FPI's quotas. Then we hear in the media that

there are talks going on, and even though that might not be the case, there

might be a deal reached. Well, you cannot have it both ways, we either are or we

are not getting the quotas. Then, again, maybe the minister is not in the loop.

Maybe it is the Premier's Chief of Staff who has been in negotiations with the

companies and the federal government, as the media said this morning.

Mr. Speaker, my final question to the Minister of Fisheries is: The Minister

of Fisheries confirmed on Friday that he has asked the Securities Commissioner

to investigate insider trading with regard to the sale of FPI shares by a Mr.

George Armoyan, who is formally of that company. I ask the minister if this

investigation will in any way affect the negotiations that are going on between

FPI and the proponents wishing to purchase that company?

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

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: Mr. Speaker, let me assure the Leader of the Opposition that

this minister is very much in the loop.

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: Let me assure anybody who wants to speak on FPI that there

is only Tom Rideout who is concerned about trading of shares or insider trading.

Let me assure everybody out there, Mr. Speaker, who wants to listen, that when I

speak on those matters, I speak on behalf of the government and I speak with the

full knowledge -

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: - and understanding and support of the Premier as leader of

this government.

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: Let me say as well, Mr. Speaker, I cannot stop media

speculation. I cannot stop feel-good stories coming from FPI shareholders or

from people who want to buy assets of FPI. I cannot stop any of that, but, Mr.

Speaker, let me assure you that meaningless weasel words will not cut it when it

comes to ensuring that those quotas accrue to the benefit of the people of

Newfoundland and Labrador. That is what we will try to ensure as a government,

Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

MR. PARSONS: Thank you.

Mr. Speaker, we learned last week that the provincial government has indeed

written to the Securities Commission to investigate Mr. George Armoyan, whether

he was involved in insider trading activities that propped up the share price of

FPI. While there is another similar circumstance that this government has not

discussed, and that is whether Mr. Dean MacDonald was negotiating the sale of

Persona while negotiating with the provincial government for the $15 million for

the fibre optic cable.

I ask the Premier: Will government confirm or investigate in order to

confirm, whether negotiations were ongoing between Bragg and Persona while a

deal was being negotiated to get $15 million of taxpayers' money to subsidize

the fibre optic project?

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

SOME HON. MEMBERS: Hear, hear!

MR. O'BRIEN: Mr. Speaker, the fibre optic deal, I say first, as being

referenced - in regards to business, the boards of trades, Memorial University

and CONA - is an absolutely fabulous deal. This deal started back beyond when I

was a minister, but certainly I see it as a great initiative as well.

Also, I will say that Dean MacDonald, the Persona deal, they entered into a

negotiating stage with the provincial government in regards to this particular

project. I will also say that it is not a deal that we actually invested in an

issue as a grant or a loan. It was the buying of fibre optic, that is what it

was. That is exactly what it was and it certainly puts this Province in a good

position when it comes to business attraction.

SOME HON. MEMBERS: Hear, hear!

MR. O'BRIEN: I will also say that to my knowledge, and I will defer the

actual question to the hon. Minister of Innovation, Trade and Rural Development,

certainly I do not see any conflict whatsoever.

SOME HON. MEMBERS: Hear, hear!

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

MR. PARSONS: Thank you, Mr. Speaker.

It is quite obvious this minister knows nothing whatsoever about this. Maybe

you just should have said from day one, when you stood on your feet here, I will

take it under advisement and get the minister to handle it, instead of trying to

bluff your way through it as if you knew something about it.

I will just say again to the minister, maybe you can take the question back

to the real minister, that is the duct tape minister who knows all about the

fibre: Will government confirm - a pretty simple question - or agree to

investigate in order to confirm, whether negotiations were ongoing or not

between Bragg and Persona while a deal was being negotiated, which we know is

still being negotiated and not finalized between Persona and this Province,

whereby this Province was going to inject $15 million of taxpayers' money?

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

SOME HON. MEMBERS: Hear, hear!

MR. O'BRIEN: Certainly I will say one thing, I was not expecting any

questions on this matter today because the hon. member, the Opposition House

Leader, confirmed that it was an absolutely good deal over the weekend.

SOME HON. MEMBERS: Hear, hear!

MR. O'BRIEN: Also, as a minister, I have no problem in regards to

researching that aspect and that question; no doubt about it. I am certainly

sure that during the process the Auditor General will confirm the results as

well.

SOME HON. MEMBERS: Hear, hear!

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

MR. PARSONS: Thank you, Mr. Speaker.

I say to the minister and all of the group opposite, seeing some merit in a

deal and asking whether a deal was done properly are two different things.

SOME HON. MEMBERS: Hear, hear!

MR. PARSONS: This deal was not done properly. This deal stank from day

one and it will be proven to be such. You cannot look after your buddies with

taxpayers' monies and expect it to wash with the people. Now, Mr. Speaker,

once again we see a double standard between the treatment received by the

Premier's friends and that of everyone else.

I ask the Premier: How much did the $15 million of our taxpayers' monies

increase the value of Persona? Are you willing to launch an investigation into

whether Dean MacDonald was using taxpayers' dollars to increase the value of

Persona?

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

SOME HON. MEMBERS: Hear, hear!

MR. O'BRIEN: Well, they certainly keep asking the same questions over

and over again. They have been asking that now since November, various aspects

of it.

As I said before in my last answer, the Auditor General is going through a

process, as we speak, in regards to the Persona deal. That lies with the Auditor

General. It will show clearly if Dean MacDonald was negotiating a deal prior to

the government entering into a deal and the buying of fibre optic from this

particular company. There is a consortium of companies, and each and everyone of

the consortium of companies are at the table. As a matter of fact, I would say

probably just about anybody who could actually do a deal in Newfoundland and

Labrador in regards to the laying of fibre optic across the Gulf were part of

that deal. The Auditor General's review will certainly show all of the

questions that they are asking.

SOME HON. MEMBERS: Hear, hear!

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

MR. PARSONS: Thank you.

I say to the minister, the Auditor General has a job to do and so does the

Opposition have a job to do. In fact, the Auditor General is on record in

writing, in public, saying that this deal is a moving target. There have been

significant and substantial changes to the fibre optic deal since it was first

made public last November. Now the minister knows that and everybody in this

Province knows that. What we are trying to do, contrary to hiding anything, is

ferret out some information that might be of assistance to the Auditor General

because, God knows, you have only ever given him anything that he had to force

out of you.

Now, Mr. Speaker, in a June 16, 2006 e-mail from an Assistant Deputy Minister

of Finance, an economic analysis note is referenced outlining financial

discrepancies between Finance's projections for this projection and ITRD's

projections for the fibre project.

I ask the minister: Why was that analysis not - and to our knowledge still

not - part of the documentation tabled in this House? Would you now be willing

to table that economic analysis so that we can ensure it does indeed find its

way to the Auditor General, because it is our understanding he does not have it

either?

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

SOME HON. MEMBERS: Hear, hear!

MR. O'BRIEN: The e-mail, actually, that the hon. member references -

and I followed the questions last week and the week previous in regard to, when

they reference e-mails, they never give the actual information prior or after

the e-mail, which gives a whole different context to the actual e-mail itself.

That is exactly what they do.

Certainly, government was trying to compare what the cost would be without

the project, or they might have after the full competition was over, and that is

what that e-mail is referencing. I do not have the whole information because I

am not the Minister of the Department of Innovation, Trade and Rural

Development, but I will speak to my hon. colleague and he will get back to you

on that one.

SOME HON. MEMBERS: Hear, hear!

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

MR. PARSONS: Thank you.

I have one final question for the minister who obviously knows very little

about the deal. Maybe you can pass the question, at least, on to your minister.

My question for the Premier and government: During the fibre process again,

when it was being negotiated, a civil servant in the Department of ITRD prepared

statements for use by a political assistant. I want to make it quite clear, it

was a political assistant that he prepared the notes for.

Now, I am asking the Premier: Is that acceptable, when we have civil servants

who are employed by the people of this Province - not by any politician -

preparing notes which are passed on for use by political assistants in ministers'

offices? Is that acceptable, and do you condone such behaviour?

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

SOME HON. MEMBERS: Hear, hear!

MR. O'BRIEN: First off, I would like to reference that the

communications people within the departments are public servants, and that is a

fact.

AN HON. MEMBER: (Inaudible).

MR. O'BRIEN: Yes, they are. They are public servants. The

communications directors within the departments are public servants.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MR. O'BRIEN: Constituency (inaudible).

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MR. O'BRIEN: Yes, different than they have.

I have no knowledge of such an item that you just referenced, but I will

definitely look into it and get back to the House.

MR. SPEAKER: The hon. the Member for Humber Valley.

MR. BALL: Mr. Speaker, on the front page of The Telegram today

there is a story about an individual and her family's struggle to pay for

drugs she needs to regain her vision. Her doctors sent her to St. John's to be

treated with an experimental drug, Avastin, but the drug is not covered by the

provincial drug plan.

I ask the minister: Given the high cost of this drug, and the fact that it is

being recommended by some doctors, will he consider speeding up the approval of

this drug for people with eye disease?

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

SOME HON. MEMBERS: Hear, hear!

MR. WISEMAN: Thank you, Mr. Speaker.

As the member opposite would very well know, when he talks about speeding up

a process, he would be fully aware that there are three steps to a process like

that. The first one, though, rests with Health Canada. The manufacturer of the

product has to make an application to Health Canada to have the drug approved

for use in Canada. Secondly, there is a committee that reviews the common use of

drugs across the country; that is the second step. The third step is where the

Province reviews it to determine whether or not it includes it in our provincial

formulary. It is that third step, and that third step only, that we have full

control over.

Where the process sits right now, and the member knows this - as a practicing

pharmacist he would understand this perfectly, and it is misleading to pose the

question the way he did - the manufacturer of that product has not made

application to Health Canada yet for the approval of its use in Canada for that

purpose. It has made an application for its use for treatment of cancer, but not

for macular degenerative disease.

I say to the member opposite, and the people in Newfoundland and Labrador,

that we have no control over what the manufacturer nor what Health Canada would

do with such an application. It is not yet in our hands at all, I say to the

member opposite.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Humber Valley.

MR. BALL: I take from the comments of the minister that he is not willing

to help speed up the process, which is what I asked.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MR. BALL: Mr. Speaker, the person mentioned in the news story had to pay

$4,500 for three treatments, as well as the cost of travel to St. John's to

see a specialist, plus three tests that cost $100 each.

I ask the minister: Does he think it is reasonable that people have to risk

financial ruin and pay such high sums of money to get the treatment they need?

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

SOME HON. MEMBERS: Hear, hear!

MR. WISEMAN: I say, Mr. Speaker, and I say to the people of Newfoundland

and Labrador, as a government we are very much aware of the cost of sometimes

accessing health treatment. That is why we have a provincial transportation

program to assist people who travel, that is why we just recently introduced a

new enhancement to our provincial drug program, all because we are very much

aware.

SOME HON. MEMBERS: Hear, hear!

MR. WISEMAN: We are very much aware, I say, Mr. Speaker.

One of the things we need to be very careful of - and the member would know

this very well - is how we support programs, whether it is medication or

treatment regimes, that are very much in the experimental stage. We are putting

individuals at some degree of risk if we support, embrace, fund and support

those kinds of treatments that are very much experimental.

When they go beyond that experimental process and they go through the

approval mechanism that I outlined in my previous answer, then government will

be in a position to include it in our provincial formulary, will be in a

position to cover it within our provincial program, and will be in a position

then to cover some of the costs associated with delivering those programs. It is

a matter of process, some of which we have no control over, I say, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

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

My question today is for the Minister Responsible for the Status of Women.

In its response to last week's skills task force report the government said

it will establish a process to require diversity plans for large scale

development projects. Mr. Speaker, a process already exists where employment

equity is tied to the approval of development plans under the provincial

Environmental Assessment Act, and this process has resulted in hiring more women

and other under-represented groups in projects such as Voisey's Bay, Terra

Nova and White Rose.

My question for the minister is: When will government apply diversity

requirements to all significant government contracts and to industry engaged in

large scale development projects in the Province, whether or not an

environmental assessment is involved?

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

SOME HON. MEMBERS: Hear, hear!

MS BURKE: Mr. Speaker, there is one thing about this government, we are

certainly committed to advancing the Status of Women in Newfoundland and

Labrador. We understand there is work that needs to be done and we have

undertaken a number of initiatives. Last year we had $200,000. We had a contract

with the IBEW to be able to promote women as electricians.

Mr. Speaker, we also have the future and skilled trades program. We are about

to embark on a campaign to make sure that 50 per cent enrolment in the future of

skilled trades are females.

Mr. Speaker, we also know from our task force report, which was released last

week, that we need to do more to encourage women. We do have certain processes

in place and we will continue to work with it.

Mr. Speaker, it was just today that I received correspondence from the Women

in Resource Development Committee, and they write: We commend the department for

its vision and support for creating employment for women. With continued support

of the Province for working women, we have a wonderful opportunity to tap into

the full labour pool that is available in this Province.

Mr. Speaker, that is the road we are on and we will continue in that

direction.

SOME HON. MEMBERS: Hear, hear!

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

MS MICHAEL: Mr. Speaker, I am sorry that the minister just cannot

acknowledge that the government is not using the rule for other people inside

their own house. That is all I am asking, why isn't it happening with

government projects.

In the response to the report, government also said that it plans to expand

scholarships and mentorships for women in trades programs. This is a positive

step and I am happy with that, but I do have another question for the minister:

When will the Province adopt a universal legislated employment equity plan,

including procedures for monitoring and reporting to government and penalties

for non-compliance, in order to actually get more women long-term jobs, not just

in skilled trades but in other male dominated careers and occupations?

MR. SPEAKER: The hon. the Minister of Education, and Minister Responsible

for the Status of Women.

SOME HON. MEMBERS: Hear, hear!

MS BURKE: Mr. Speaker, as Minister Responsible for the Status of Women, I

am fully committed to advancing the status of women in Newfoundland and

Labrador. I am also committed to working with my fellow ministers to make sure

that every time we develop policies and procedures that we do effective gender

based analysis and make sure that women are advanced and we have equality and

equity in the programs that we promote in Newfoundland and Labrador.

Mr. Speaker, we do have a shortage of female workers in the skilled trades

area and we are certainly doing what we can to advance that. Not only are we

going to be addressing the young people in high schools and the future of

skilled trades, but, Mr. Speaker, last year the Government of Alberta offered us

twenty-five scholarships, each valued at $2,005 for their centennial. We put all

of those scholarships into the skilled trades and put two-thirds of those

scholarships for females who are entering skilled trades.

Mr. Speaker, we are engaging in partnerships with the unions in Newfoundland

and Labrador. We made sure we had representation on our Skills Task Force and we

will continue to work in that direction, both within government and where we can

in Newfoundland and Labrador, to advance the employment equity for women in this

Province.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Cartwright-L'Anse au Clair.

MS JONES: Thank you, Mr. Speaker.

Today, earlier in the House, the minister made an announcement that she would

call for proposals to pursue the development of the forest industry, such as the

sawmilling and secondary processing industry in Labrador, but she restricted her

Call for Proposals to Central Labrador.

I ask the minister today: Have you considered the idea of establishing this

operation in Southern Labrador, and what analysis of this concept did your

department do after they received the study?

MR. SPEAKER: The hon. the Minister of Natural Resources.

SOME HON. MEMBERS: Hear, hear!

MS DUNDERDALE: Thank you, Mr. Speaker.

As my colleague referred, there was a study done on the forestry sector in

Labrador. It was a substantive piece of work that did a broad consultation in

Labrador, and all Labradorians were invited to participate and given the

opportunity to do so. There were a number of recommendations that came out of

that report. That report was released some months ago. Immediately, we put

together an interdepartmental committee to look at those recommendations and the

viability of those recommendations. They were found to be sound. Work was done

in terms of substantiating information around markets for products coming out of

Labrador. This recommendation around this facility in Central Labrador will work

for all of Labrador, in a central location, bringing in fibre from all over the

area and it is a good thing for all of Labrador, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Cartwright-L'Anse au Clair.

MS JONES: Thank you, Mr. Speaker.

I am sorry to inform the minister but shipping wood fibre out of my district

is not good for employment or stability in my district, despite the fact the

Member for Lake Melville thumps on his desk, knowing it will be shipped out.

I ask the minister today: How many cubic metres of wood will be required to

be transported from the District of Cartwright-L'Anse au Clair, in the

southeast coast region, in order to make this concept viable in Happy

Valley-Goose Bay?

MR. SPEAKER: The hon. the Minister of Natural Resources.

SOME HON. MEMBERS: Hear, hear!

MS DUNDERDALE: Thank you, Mr. Speaker.

One hundred-and-twenty-thousand cubic metres of wood is going to be required

to make this a viable operation. I cannot speak specifically, right off the top

of my head, as to what percentage of that will come out of Southern Labrador.

That wood will come from all over Labrador. It is going to be a significant

investment by private industry into this enterprise. If there is a capacity to

have such a facility and people are prepared to make the investment in Southern

Labrador, Mr. Speaker, that will surely be considered.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Cartwright-L'Anse au Clair.

MS JONES: Mr. Speaker, the minister already stated that the senior

management committee of her department have identified investors and proponents

for this project. So I have to ask the minister today two questions. One, is

there any provincial government money being invested here? Two, who are the

proponents and investors you have identified, how many are there, or is there

just one select group?

MR. SPEAKER: The hon. the Minister of Natural Resources.

SOME HON. MEMBERS: Hear, hear!

MS DUNDERDALE: Mr. Speaker, what the interdepartmental committee have

identified is that there are potential investors and there are potential

markets. There is a need for those products in this country and outside of this

country. What we have asked for is an Expression of Interest so anybody in this

Province or beyond, who is prepared to invest in this kind of a facility, we are

now asking them to come forward and present a proposal to the Government of

Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

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

MR. BUTLER: Thank you, Mr. Speaker.

My question is for the Minister of Education.

I ask the minister: By now she should have received a review of teacher

allocations in this Province -

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The Chair recognizes the Member for Port de Grave.

MR. BUTLER: I will repeat it, Mr. Speaker, I do not think the minister

could hear my question.

My question is for the Minister of Education. I am wondering if the minister

has received a copy of the review of teacher allocations in this Province, and

if she has received those recommendations, when will they be made available to

the public?

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

SOME HON. MEMBERS: Hear, hear!

MS BURKE: Mr. Speaker, first of all, I would like to thank the hon.

member for the question, because obviously the teacher allocation review is

something that has been ongoing for quite some time and there are many people in

the Province of Newfoundland and Labrador very interested in that.

Mr. Speaker, I do anticipate to receive the final report within the next

couple of weeks. Once we receive the report we will certainly be doing a full

analysis within government to determine how we can proceed on this.

Mr. Speaker, we certainly noted that there was difficulty in the previous

formula, which was numerical based only, the Sparkes-Williams formula, and we

have been committed as a government that we will develop a new formula as we

move forward to make sure that our classrooms are properly resourced.

Thank you.

SOME HON. MEMBERS: Hear, hear!

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

MR. BUTLER: Mr. Speaker, knowing that the minister will receive the

recommendations within the next couple of weeks, I ask her: Will those

recommendations be implemented for the new school year beginning in September?

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

SOME HON. MEMBERS: Hear, hear!

MS BURKE: Mr. Speaker, I guess it is necessary to inform the hon. member

that, based on the school year and how we allocate resources, that we made

announcements in the Budget that we are dealing with now in the House of

Assembly. We have made a public announcement regarding how many teachers will be

in the system for September. Mr. Speaker, that is how we do business here within

government, and it comes out in the Budget.

We will take the report, we will do the analysis, but it will take some time.

The allocation and the actual assignment of teachers for the classrooms will be

made this month as opposed to something that we will do during the summer months

leading into September.

SOME HON. MEMBERS: Hear, hear!

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

There is time for a brief supplementary.

MR. BUTLER: Mr. Speaker, I was under the impression that the minister had

received the report.

I am wondering if she also has received the report with regard to the ISSP/Pathways

Model with regard to special needs for students, and when will those

recommendations be made public?

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

SOME HON. MEMBERS: Hear, hear!

MS BURKE: Mr. Speaker, the hon. member is wrong. I have not received the

final report regarding the teacher allocation formula.

Mr. Speaker, it is also my understanding that I will receive the report that

is being done on the ISSP review possibly by the end of the month or certainly

by mid-June.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The time allocated for Question Period has expired.

Presenting Reports by Standing and Select Committees.

Presenting Reports by Standing and Special Committees

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

SOME HON. MEMBERS: Hear, hear!

MR. RIDGLEY: Mr. Speaker, the Social Services Committee have considered

the matters to them referred and have passed, without amendment, the Estimates

of Expenditure for: the Department of Education; the Department of Health and

Community Services; the Department of Justice; the Department of Municipal

Affairs; the Department of Human Resources, Labour and Employment; and, the

Newfoundland and Labrador Housing Corporation.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Further reports by standing and select committees?

Tabling of Documents.

Tabling of Documents

MR. SPEAKER: In accordance with the Public Tender Act, I am tabling the

Report of Public Tender Act Exceptions for the months of November and December

2006 and for the months of January and February 2007.

Further tabling of documents?

Notices of Motion.

Notices of Motion

MR. SPEAKER: The hon. the Member for Conception Bay South.

SOME HON. MEMBERS: Hear, hear!

MR. FRENCH: Mr. Speaker, I give notice of the following private member's

motion:

WHEREAS this government is committed to protecting the resources and the

future of Newfoundland and Labrador; and

WHEREAS our Province has been betrayed by the Prime Minister - I repeat,

WHEREAS this breach of trust will result in our Province and our people being

seriously disadvantaged; and

WHEREAS the Province's non-renewable resource revenues represent a

meaningful and long-term opportunity for our Province to attain true

self-reliance and economic prosperity;

BE IT RESOLVED that all members of this hon. House support the Premier and

commitment respecting the removal of non-renewable resource revenues from the

equalization formula.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Further notices of motion?

Answers to Questions for which Notice has been Given.

Petitions.

Orders of the Day.

Orders of the Day

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

MR. RIDEOUT: Thank you, Mr. Speaker.

Mr. Speaker, Order 3 - I think it is 3.(b) - the adjourned concurrence debate

on the report of the Government Services Committee.

I believe that debate was adjourned by the hon. the Leader of the Opposition,

but I believe there is an understanding that the few minutes he had left will be

used by the Leader of the third party.

MR. SPEAKER: The Chair wishes to note that there is twelve minutes left

in this part of the concurrence debate.

The Chair recognizes, by agreement, the hon. the Member for Signal Hill-Quidi

Vidi.

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

I would like to thank the Leader of the Opposition for giving me the last

twelve minutes from his time that he did not use on Thursday.

I am very happy to get an opportunity to speak to the concurrence debate on

the general government sector. I am particularly pleased to speak during the

concurrence debate because, being the only person representing my party in the

House, I was not able to attend all of the Estimates Committee meetings,

obviously; it just would have been impossible.

I served on the Social Services sector Committee and attended all of those

meetings, and I did get to attend one of the meetings under the Resource sector,

but it was impossible for me to be able to attend more meetings than that. There

just was not enough time in the day for me to do so, so I am glad to get this

opportunity today to speak during this concurrence debate.

Obviously, I will seek other opportunities as we continue the concurrence

debates under the other sectors, so I have had to choose carefully what I will

talk to today. The first thing I decided I would like to speak to is the work of

the Rural Secretariat, which is covered under this sector.

There is no doubt that we need to be looking at the development of rural

Newfoundland, and when I read what the role of the Rural Secretariat is, and

what the Budget says it is giving the Secretariat money for, it says that the

money that is allotted is given: "...to promote sustainable economic and

social development, ensure that rural issues are considered throughout the

Provincial Government, and promote collaboration in policy and program

development."

Now, that is quite a laudable task that has been given to the Rural

Secretariat, and I personally think it definitely is what we want the Rural

Secretariat to do. We do want it to promote sustainable economic and social

development. That means economic and social development that will be good for

rural communities in the present and will also last well into the future so that

people who live in the communities now can say: Oh, I can be in this community

in twenty years time if I want to be, and have a job and be able to live here. I

can raise my children here. I can have grandchildren here. That is what

sustainable economic and social development is about.

Well, right now in our Province in rural Newfoundland and Labrador, people

are not able to say: I can raise my children here; I can have grandchildren

here. There are not even sure that they can raise their children. Young couples

who have children in elementary school, for example, primary and elementary,

these couples are having to decide to leave communities where they lose jobs

that they have had in the fishing industry, or in other sectors, and they cannot

go on and get further work. These people are having to leave. The hope of

thinking down the road that they are going to be able to be in that community

with their grandchildren is just not there for them. It is not a reality. It is

not something that they can even think about.

The Rural Secretariat has quite a job set out for itself if it is going to

promote sustainable, economic and social development. First of all, they have to

have the ability to do more than promote. They have to have the ability to come

up with plans that can put in place some real programs in communities.

This Budget gives $1.8 million to the Rural Secretariat. With $1.8 million,

the Rural Secretariat cannot really do much more than what it is doing. What it

is doing is talking. The committees that have been put together, the regional

boards that have been put together, so far have not done much more than talk. I

understand that right now they are in what is called the visioning phase. I have

to ask: How much more visioning has to go on in this Province?

We had a Strategic Social Plan under the last government. It actually did

start getting somewhere. At least one thing that has continued from that

Strategic Social Plan is the fact that we are now getting good statistics that

tell us what the situation is here in our Province, both from the perspective of

the economic reality as well as the social reality. At least something concrete

came out of the Strategic Social Plan, but that plan did do a lot of visioning.

There were all kinds of meetings under that project, that program, the Strategic

Social Plan. All kinds of things came out with regard to the vision for

Newfoundland and Labrador.

Then there was a royal commission that also had meetings all around this

Province. That, too, came out with all kinds of visioning and all kinds of

wonderful ideas about what is needed in Newfoundland and Labrador. Then we get a

change of government and we have to start all over again with a whole new

structure, with a new name, but really not doing anything differently than what

had been done before.

I followed, almost two years now, the Rural Secretariat, and I cannot see

anything coming from it. I get very discouraged when I see $1.8 million that is

going into supposedly strengthening the future of rural Newfoundland but I do

not see anything going into a process that will help with that. Rural

development does not happen magically. My colleagues have heard me say this

before. It takes real effort to make communities work. It takes real effort to

develop them economically and socially. If we are going to have development that

is rooted in the life of the communities; if we are going to have businesses

that are rooted in the resources, both the human and the natural resources in a

community; if communities are going to be able to come up with their own ideas

for where to go as a community; if they are going to be able to come up with

their own ideas around business; if they are going to be able to come up with

their own ideas around generating employment in their communities well into the

future, then communities need help in doing that. They need people who are

trained, who can work with them. This cannot be done purely on a volunteer

basis. This cannot be done by women and men volunteering their time only. There

have to be resources given to the communities so that people can be hired, so

that people can be hired to make sure that the organizing of people happens,

that the research that has to be done in a community can be done, because there

are so many things out there that people need to consider. We cannot expect the

communities totally, through their volunteer labour, to do that.

I would really like to see the government realize that if we are really going

to help rural Newfoundland and Labrador develop, then we have to put money into

rural development from the ground, not putting money into a higher bureaucracy,

more people in here in St. John's, in the Confederation Building talking and

planning and visioning. Meetings of regional boards, as good as the people on

these boards may be - I have nothing to say against the people on the regional

boards - but as good as they may be, we are not going to get anywhere just

putting money into people sitting around and talking. We have a lot of knowledge

out in this Province about what can be done, tremendous knowledge out there

about what can be done. I think we need to identify the people who historically

in this Province have done some of this work and get those people involved in

communities. Give the communities the ability to hire people in their own

communities who have the skills so that they can start doing community

development work. If we just go on talk, talk, talking, we are not going to get

anywhere. Real money has to go into this.

I look at the Budget and I see a heading in the Budget Highlights saying:

Action to Promote Economic Growth, Investing in a Healthy Business Climate. I

see $25 million for a new Business Attraction Fund providing for large-scale,

strategic investments in business ventures and infrastructure for the purpose of

attracting business to the Province. I see $7 million for a Business Grants Fund

to assist with start-up costs for large scale companies setting up business in

the Province. I look at that and something in me reacts. It is sort of a d j B

vu moment. The d j B

vu is we have had Premier after Premier after Premier in this Province who has

seen the future of rural Newfoundland in large scale development and we have

project after project after project of so-called large scale development that

has failed.

The answer for rural Newfoundland and Labrador is not large scale. The answer

for rural Newfoundland and Labrador is community based economic development tied

in with the social needs of the community. That means creativity, that means

diversity. That means helping people do their visioning in their communities, on

the ground in their communities. I know from my own personal experience where

that kind of visioning in a community goes. I know the businesses that come from

those visioning exercises. I know that work can be created. It is amazing the

ideas that people come up with, but they have to have the resources to continue.

They can have all the ideas they want but they have to have resources to do that

work.

It would be wonderful if the government had as much understanding of the role

of rural communities and the ability of people to come up with their own futures

as they have hope in large scale developments, as they have hope in companies

that they are going to invite from the outside to come in and do large scale

developments. Take some of that $25 million and give it to communities so that

they can hire people to work with them, so that they can get their own projects

going in their own communities. The large scale development should be small

scale development in all of our rural communities, whether that is secondary

processing in the fishing industry or whether it is year-round tourism. The

people will come up with the ideas. We have to start changing that idea, that

the only way we get employment is through large scale developments. As a matter

of fact, an awful lot of large scale developments have small amounts of

employment attached to them. A lot of money goes in, and a lot of money goes to

the shareholders, but the number of jobs, very often, is a small number.

Even a rig out in the North Atlantic does not employ a tremendous number of

Newfoundlanders and Labradorians. The more you get into production, the smaller

the number of people becomes who work on a rig. We have to start putting our

faith in the communities, in the people, but we have to put the resources there.

The faith in them is not sufficient. We have to put the resources there so that

people can develop themselves.

I do not know how much I can say that, how often I can say it, to get this

government to understand where I am coming from, because they do not seem to be

hearing it. They say they believe in the people, they say they want a future for

rural Newfoundland. I have not seen yet, for the four years -

MR. SPEAKER: Order, please!

The hon. member's allotted time has expired.

MS MICHAEL: May I just have one sentence, please, Mr. Speaker?

AN HON. MEMBER: (Inaudible) just to clue up.

MR. SPEAKER: Leave has been granted to make some concluding comments.

MS MICHAEL: Just to clue up, thank you very much.

I would just hope that what I have had to say will give some thought to those

in the bureaucracy who are working with the Rural Secretariat.

Thank you very much, Mr. Speaker.

MR. SPEAKER: Order, please!

The motion made by the hon. the Member for Terra Nova is that the House

concurs in the approval of the report of the Government Services Committee on

Supply.

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

AN HON. MEMBER: Nay.

MR. SPEAKER: The motion is carried.

The hon. the Government House Leader.

AN HON. MEMBER: It wasn't unanimous.

AN HON. MEMBER: Yes, it was.

MR. RIDEOUT: I don't know if we can count a voice vote when a member is

not in his seat, Mr. Speaker.

Mr. Speaker, Order 3.(a), the concurrence report, and follow debate on the

Estimates and the report of the Resource Committee.

MR. SPEAKER: The motion is that the House concurs in the approval of the

report of the Resource Committee.

The Chair recognizes the hon. Member for Bonavista North.

SOME HON. MEMBERS: Hear, hear!

MR. HARDING: Thank you, Mr. Speaker.

I guess we are ready today to begin the concurrence debate on the Estimates

for the six departments that were considered under the Resource Committee.

First of all, before I do that, I would like to acknowledge the members who

participated in the meetings that were held. These members were: the Member for

Labrador West; Windsor-Springdale; Trinity-Bay de Verde; Cartwright-L'Anse au

Clair; and the Bay of Islands. We also had substitute members for some of the

regular members who could not attend. These members were: the Members for St.

Barbe; Ferryland; Torngat Mountains; Bellevue; Fogo & Twillingate; and also

the Member for Signal Hill-Quidi Vidi. I would like to thank all of these

members for their attendance and for their participation. I would also like to

thank the six ministers and their officials from their respective departments,

as well as the staff with the House of Assembly.

Mr. Speaker, the Resource Committee considered the Estimates for the

Department of Business; the Department of Environment and Conservation; the

Department of Fisheries and Aquaculture and Aboriginal Affairs; the Department

of Innovation, Trade and Rural Development; the Department of Natural Resources;

the Department of Tourism, Culture and Recreation, as well as the Rural

Secretariat.

Mr. Speaker, I have to say that the Estimates for these six departments, this

year, has increased by $145 million. Last year, the actual expenditures for

these six departments amounted to $191 million. This year, it has increased to

more than $336 million.

Many of the questions and answers centered around the increased spending of

the six departments, so it is in that context that I would like to make a few

comments today with respect to the increased spending.

First of all, the Department of Business: As you know, Mr. Speaker, the

Department of Business is relatively a new department with government. The last

couple of years it just had a few staff members, and the expenditures for last

year amounted to a little over $3 million. This year, that department's

estimates have been increased to $38 million, an increase of almost $35 million

over last year.

Included in the increase are expenditures of $25 million for a Business

Attraction Fund, and that fund is to provide for large-scale strategic

investment in business ventures and infrastructure for the purpose of attracting

new business to the Province.

There is also an additional $7 million for a business grants fund. This fund

is to assist with start-up costs for large-scale companies setting up business

in the Province. These increased funds will certainly give the Department of

Business the resources that it needs to promote new economic growth in our

Province.

The Department of Environment and Conservation: Mr. Speaker, last year's

revised expenditures amounted to $28 million. This year, that has increased by

almost another $15 million, bringing their estimates for 2007-2008 up to $42.7

million. These increases, Mr. Speaker, will affect the Eco-Trust with issues

related to clean air and climate change, sustainable development of our

strategic science, extra monies for pollution prevention, additional monies for

water resources management, continued support the Voisey's Bay Environmental

Management Board, increased monies for land management and development, and

there is also going to be production of new maps in the digital format for all

of the Province. There are going to be improvements made to our provincial

parks. Also, there is extra funding in that department for the Institute of

Biodiversity and Ecosystems Science.

The Department of Fisheries and Aquaculture and Aboriginal Affairs: Mr.

Speaker, last year the revised expenditures amounted to $10.8 million, and this

year the estimates for that department have increased by $19.5 million, bringing

it up to total estimates of $30.3 million.

Of those increases, Mr. Speaker, $5 million will be used for programs and

services to assist the Newfoundland and Labrador fishing industry to become more

economically sustainable and competitive. There is additional monies for seafood

diversification, for marketing and development of new species, new products, and

new techniques in harvesting, in processing, as well as in handling. There is

further development of the Quality Assurance Program that we have been using for

a number of years, Mr. Speaker, and this puts greater emphasis on compliance and

enforcement programs in support of the Fish Inspection Act.

With respect to that, I know this past winter, Mr. Speaker, that a number of

the field inspectors with the department have been doing very intensive training

courses with respect to that program.

There are also major increases in funding in aquaculture development.

In addition to these extra expenditures, Mr. Speaker, the government is also

funding 40 per cent of the new capital gains tax exemption that was announced

some time ago by the federal government. With respect to that, Mr. Speaker, our

government could be asked to contribute approximately $25 million for that

program.

Furthermore, Mr. Speaker, the federal changes to the harvesting policy for

our fishermen - that is the policy with respect to the changes in vessel length

and combining of licences - this change could mean that our government will be

probably liable for up to $100 million in loans that will be going out to the

fishermen in this Province. That is a significant commitment in itself, Mr.

Speaker.

Next, the Department of Innovation, Trade and Rural Development. That

department, last year, had spendings of $25.6 million. This year, it has

increased by $32.9 million. That will bring its estimates for 2007-2008 up to

$58.5 million. Increases for that department, Mr. Speaker, will be going towards

strategic partnership programs and the Ireland Business Partnership Initiative,

which has turned out to be quite successful, and increases in the export and

investment program, which encourages the increased export of goods and services

by local industries and businesses in the Province. That is business that will

be exporting both nationally and internationally. As well, it will also be used

to increase investment generally within the business sectors in our Province.

There are major increases in the Strategic Enterprise Development Fund. This

fund, Mr. Speaker, provides financing for support of businesses throughout the

Province with emphasis on small and medium-sized business, especially in rural

Newfoundland and Labrador.

Just a couple of weeks ago, Mr. Speaker, if anyone attended the home builders'

show at the Mile One stadium, they would certainly see the positive results of

some of the funding from that special fund.

There is increased funding towards industry and business advisory and

counselling services, and the provision of community economic development

services throughout our Province.

There are increased grants and subsidies for regional and sectoral economic

development and diversification initiatives and projects throughout the

Province; particularly, Mr. Speaker, projects that leverage funding from other

sources, especially the federal government.

There are increases for advancement of knowledge-based industries and the

application of advanced technologies within the Province.

There is an additional $4 million in that department this year to assist

companies in developing innovative products and services.

Also, as everyone in the Province is aware, there is $10 million this year on

the Trans-Gulf fibre optics telecommunications link.

We also considered the Estimates for the Department of Natural Resources.

That department, last year, had spendings of $79 million. This year, it has

increased by another $37 million, bringing it up to $116 million. That

department, Mr. Speaker, as you are aware, has a number of different divisions

within it.

First of all, the Forestry Management Sector of the Department of Natural

Resources, there are increased expenditures in the budget this year for the

future of the forestry in the Province, and that is in silviculture development.

There is increased funding for resource road construction, and there is

greater emphasis on the overall administration and program management systems

already within the department.

There are increases in insect control management, increased funding to

improve our Province's water boomer fleet, and also additional monies in the

agriculture and agrifoods division of that department. There is going to be

additional money for construction of agricultural roads and the acquisition of

farmland throughout the Province, to be passed back to local business people at

a later date.

There is almost a $9 million increase for incentives to stimulate and attract

large-scale investments in agriculture and agrifoods products; particularly, Mr.

Speaker, in secondary processing and value added sections.

Also, with the minerals resources division with the Department of Natural

Resources, there is increased funding in geological mapping and surveying

programs.

An extra $3.5 million is in that department this year for the management and

implementation of incentive programs for further exploration and development

within the Province.

In the Energy sector of that department, there is extra funding for the

development and implementation of the new energy policy. With respect to that

one, there is an additional $12 million in grants and subsidies that will be

provided towards initiatives under the new energy plan.

The final department that our committee reviewed was Tourism, Culture and

Recreation. That department had expenditures last year of $44 million. This year

it has been increased by $6.4 million, to $50.5 million for 2007-2008. Increased

expenditures in that department, Mr. Speaker, there is an extra $1 million for

Tourism Marketing, an extra $1 million for our Culture and Heritage sectors.

There are increased grants to the Newfoundland and Labrador Arts Council,

increased funding for historic sites throughout the Province, and there are also

increased grants in support services towards recreation and sports facilities in

the Province.

Mr. Speaker, in conclusion, and in accordance with Standing Order 76, I move

that the report of the Resource Committee be concurred in by the House.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Cartwright-L'Anse au Clair.

MS JONES: Thank you, Mr. Speaker.

I rise today to participate in the concurrence debate as it relates to the

Estimates of the Natural Resource Committee.

Mr. Speaker, I was a part of that committee, and as the previous speaker

already noted, we looked at the Estimates of a number of departments of

government, including those of Innovation, Trade and Rural Development; the

Department of Business; the Department of Tourism, Culture and Recreation; the

Department of Natural Resources itself, and the Department of Fisheries and

Aquaculture. During looking at these estimates, of course, as you can

appreciate, there are a lot of questions that arises out of those estimates as

it pertains to those particular departments and what has been happening in those

departments in particular.

Mr. Speaker, I would like to get into a couple of those issues. I am not

going to have an opportunity in the next twenty minutes to cover off each and

every one of the departmental estimates that we did review, but I think my

colleague has already outlined what the government expenditure has been and is

voted to be for this year in the Estimates for each of those departments. What

we do is we evaluate, as a committee, where that money is going to be spent and

what it is going to be used for in the course of the next twelve months within

that particular department.

Now, Mr. Speaker, a couple of things arose out of the estimates that really

caused me some concern. One of the issues that I want to talk about is the money

that was to be invested for small and medium-sized businesses in the Province

under the Department of Innovation, Trade and Rural Development. The department

last year and the government had voted $8 million for investment in the small

and medium-sized businesses in our Province. The take-up on that $8 million was

like $50,000. It is very small when you look at it in terms of the amount of

money that was available that did not get let to businesses in this Province for

use and investment in their communities. Obviously, being a new program, I can

certainly understand that it does take some time to get the message out, to make

people aware of the program that is there and how they can access the money.

Also, I think the real problem with that program is the fact that their

business community is not coming forward looking for the investment because they

do not necessarily have a great deal of confidence in the progress of the rural

areas of the Province where they are. That is a very sad statement to have to

make but when you look at it in the context of this, if government is not

prepared to invest in a very substantial way in rural communities around the

Province, what makes you think the business community is going to be wanting to

do so? They need to feel that the government has confidence in rural areas and

the opportunity for rural communities to progress. Once they do, they too will

continue to invest at a rate that is equivalent to what government is doing.

So, Mr. Speaker, when you look around rural Newfoundland and Labrador today,

the real economic opportunities are being created by small and medium-sized

businesses. You are not going into small communities in Newfoundland and

Labrador - I do not care what bay, cove or inlet that you represent or belong to

- and finding massive scale industry. What you are finding is businesses that

are creating two, three, four, five, up to twenty or twenty-five jobs at a time.

You are seeing that kind of new industry coming on stream and that is the kind

of jobs that are securing long-term sustainability for many of these

communities.

When you have a program out there for those businesses where they can access

this money and invest it into their region by investing it into their business

and they are not taking up the government on those kinds of programs, I have

some serious concerns about that. One of two things needs to happen, or both.

One, there has to be more investment by the government into these communities to

show that government is confident, to show that you see there is a future in

those particular regions and that you are prepared to put your money up to make

it happen. The other thing they might want to do in order to encourage

investment in the program is to offer up a better arrangement financially. The

program now works on a fifty-fifty percent investment on capital investment.

Maybe they could look at how certain sectors work well in rural areas of the

Province and could probably access more money, maybe on a seventy-thirty

arrangement in terms of investment, depending on the number of jobs that you are

going to create. So, if you are creating more than twenty jobs in a small

business in a rural area, you probably could become eligible for a greater level

of investment from the government in terms of borrowing. I think even doing that

would certainly help small and medium-sized businesses look at the program in a

little different light and be able to access that money.

Mr. Speaker, I raise that today only because the government continues to talk

about their plan for rural Newfoundland and Labrador, a plan that we failed to

see in the last four years. In fact, when they put out their Blue Book in the

election campaign of 2003, they stated in the Blue Book that they would have a

rural plan for Newfoundland and Labrador. We have yet to see it. In fact, if you

listen very closely to where government is investing some of its money and some

of its policies that they are making these days around industry in our Province,

you will note one thing, that it omits any real investment or real consideration

being given to rural areas of our Province.

I can say that with great certainty because even today, as I came to the

House of Assembly, I got a statement from the minister telling me that they are

going out to call for proposals for a forestry operation in Labrador that will

include everything from harvesting to sawmilling, to secondary processing, to

small scale manufacturing. They are going out to call for proposals, but they

have to put the operation in Central Labrador. Now I have a huge problem with

that and I will tell you why. How can you have an open process if you are going

to tell people, first of all, where it has to go? I think the district that I

represent in Cartwright-L'Anse au Clair has one of the finest areas in this

Province for sawmilling, harvesting and secondary production in the forest

industry. In fact, Mr. Speaker, part of the district that I represent has nearly

100,000 cubic metres of wood available today for processing, and they are all

small communities. If you look at the whole regions, right from Lodge Bay to

Mary's Harbour, right up through to Cartwright and all of those communities in

between, they really have only two resource sectors that they can hang their hat

on in terms of creating jobs in those regions. That is the fishery and the

forestry.

Mr. Speaker, I was appalled and, to say the least, very disappointed today to

learn that government is not even going to give them consideration in terms of

developing a forest industry in that area. In fact, what the government believes

- what they believe, Mr. Speaker, and what they are going to move forward with -

is a concept of putting an operation in Happy Valley-Goose Bay and trucking all

of the wood off the Coast of Labrador, from the southern region, up to Lake

Melville, some 600 kilometres, Mr. Speaker, for processing.

What does that do for the people in my area? The one good thing it does, if

you want to hear the one good thing that it can do, it will give those people

who now have a licence to cut wood in that area a market to sell what used to be

pulpwood that they used to sell to Stephenville; they will now have an

opportunity to off-load that pulpwood or that by-product wood, hopefully, into a

market place. That would be the one good thing that might come out of it.

Let's look at all of the negative things that come out of it, Mr. Speaker.

You are asking the people in this part of the Province to give up a resource

that is on their doorstep, to have it transported to another part of Labrador to

create jobs in that region. Do you think the people in my district are going to

be well receptive to that concept? I don't think so. I have lived there all of

my life; I know these people. I know how hard they have struggled over the years

to try and build the forest industry, just like they have struggled to build the

fishery.

Mr. Speaker, they do not ask for a lot, but do you know what they do expect

from their government? They expect to at least be given consideration. In

looking at this particular concept, the Department of Natural Resources, through

its forestry division, did not entertain that as a possible or potential

development opportunity for that area of the Province.

This is a government who claims they are going to be the saviours for rural

Newfoundland and Labrador, that they have a plan, they have a strategy. I am

going to tell you something: You are going to have to start proving it, because

doing things like this prove the very opposite: that you do not have confidence

in a lot of those rural areas, that you are not prepared to invest or work with

proponents and investors to create industry there.

So, Mr. Speaker, the people in my district can now look forward to, over the

next three years, the highway opening between Cartwright and Happy Valley-Goose

Bay and having nearly 100,000 cubic metres of wood transported off the doorsteps

of their communities to Goose Bay to create jobs in the Upper Lake Melville

area.

Now, do you think I am going to support that? Absolutely not. In fact, Mr.

Speaker, no member should be supporting that when they know that they can invest

the money right where the resource is and create the jobs for the people in that

area. A hundred jobs in that area would maintain the viability, long term, of

five to six communities in that one region. Anyone over there who is familiar

with the South Coast of Labrador know what I speak to be factual.

Mr. Speaker, I will give you another example. There is one shrimp processing

plant in Labrador, and we fought hard to get it. We fought hard to get a licence

when government at the time, that I was a part of, did not want to give out

licences. We fought hard to get investors to invest, because it was up in

Labrador. It was far away, it was easier to put it on the Island, but at the end

of the day government came to the table, not only with a licence but they also

came as a partner in terms of investing in the infrastructure that was required

to support that operation. They put a new water system into the community so

they could provide for a shrimp plant. They upgraded the diesel generated power

to a Phase III power source, investing more than $2 million at the time to

provide power for this company who was prepared to invest there. They partnered

with the federal government to put in new docking facilities so that the boats

could land their catch right at the plant.

Do you know what, Mr. Speaker? At the end of the day, the private sector

still invested $10 million into this plant. Well, let me tell you, it created

over 100 jobs. Over 100 jobs in that small area. One hundred jobs today that

sustains that community and some of the communities around it with good,

well-paid jobs. Although they are seasonal, they usually work five to six months

out of the year, but they are good jobs and they pay well.

Mr. Speaker, all I am saying is, that was a model concept for what should

have happened in the forest industry on the South Coast of Labrador as well.

Three years ago when the study was called for, to look at long-term

sustainable development in the forest industry there, I never dreamed that study

would become the catalyst for government to move all the wood out of my district

to Goose Bay.

Let's talk about Goose Bay for a minute, because I have nothing against

Goose Bay. I have spent half of my life there, back and forth there. Every job I

have ever had, in my working career, has taken me to Happy Valley-Goose Bay. In

fact, I have lived there for a number of years as well.

Let me say this to you, Mr. Speaker, I have stood on many platforms

supporting the people of Goose Bay, and industry for that community. I have

stood with the people there on many occasions to support them with 5 Wing Goose

Bay, to help them secure more benefits from developments on the Lower Churchill

project, which I will continue to do, to help them lobby for roadwork and

upgrading, for schools, for hospitals, for every single thing that they came

forward with.

I look at a town like Happy Valley-Goose Bay with a tremendous amount of

potential. Not only are they going to get 600 troops, as has been promised by

the federal government, although we have not seen them yet, but they have been

committed to, 600 new troops being added to the base in Goose Bay, not only are

they moving forward with their new hotel concept of operating the base along for

expanded and new business, but they sit as the bedroom community for the Voisey's

Bay project, they are in the heartland of the new developments of the Lower

Churchill project, and they are surrounded by four new potential mining

operations, some of which may be as big as Voisey's Bay or as the iron ore

mine in Labrador City, I say to hon. members.

The potential and the opportunity for that community in Central Labrador is

beyond what many can even believe or are capable of looking to in the future.

That is how great the opportunity is in that region and, believe me, I celebrate

it. I want to participate in it. I want my district to be a part of it, but I am

not prepared to stand and to give away the wood resources of the Coast of

Labrador that belong to the small communities, the families who have tried to

build this industry over the years, to some collaborative company in Happy

Valley-Goose Bay. I will not do it, and I wish that the government would

reconsider their decision. I wish they would, knowing what the real

opportunities are for Goose Bay, and knowing what the limited opportunities are

for Coastal Labrador and those rural areas and rural communities, and that they

would at least make an effort to invest in that region.

They went out and they talked about how they have investors and proponents

lined up to bid on this project. Well, I am aware of some of that, Mr. Speaker.

I am aware that there are a couple of people in Goose Bay who have been really

eager to bid on this project; a couple of people who are very eager to invest in

forestry development in Labrador. I do not know if anybody has even talked to

them about investing in Southern Labrador in a similar type operation. I

certainly can safely say they were never encouraging them to but I do not know

if they have even asked them to.

So, Mr. Speaker, when you talk about providing for industry or for economic

benefits in rural communities in the Province, you just cannot talk about it,

you have to start doing it. That means leaving the resources where the people

are and working with them to try and bring about those kinds of changes.

Mr. Speaker, I sat in on the consultation, the one that was held, and I asked

the officials in the Department of Natural Resources: Why isn't my district

being considered for this operation? Why is government not working with

proponents in the area to try and make this work and create 100 jobs here on the

coast of Labrador, like we did with the shrimp processing plant? A very

successful operation today, I might add. Do you know what I was told, Mr.

Speaker? I was told because the price of electricity was so high in my district

they could not probably look at that concept. Actually, do you know something?

They are probably right. They are probably right in that the price of

electricity is very high for industry or commercial users in that area, but

government can do something about that. Government has complete control to do

something about that. I am going to tell you a little bit about it because in

Labrador right now, in the last three years government has jacked up the hydro

rates in Labrador City and Wabush by about 150 per cent. Every year the people

in those communities have seen their light bills increase year over year, year

over year, until they came to a level where they were paying the same amount for

electricity as the people in Happy Valley-Goose Bay were. Then they called

themselves the Labrador integrated grid rate. That is the rate they are now on

which is determined by Newfoundland and Labrador Hydro standards.

Mr. Speaker, we have been lobbying for the last three to four years, lobbying

through the Public Utilities Board, through the government, through the

Department of Natural Resources, through Newfoundland and Labrador Hydro, to

anyone who will listen, that we want to be part of that Labrador interconnected

rates as well; which means that we would pay the same as people in Goose Bay and

Labrador West would pay. Government in the last Budget decided they would do

that for domestic customers in Labrador. Let me tell you why they would do it,

Mr. Speaker - not that the reasons why are relevant to me. I am glad it is being

done. I am absolutely pleased as punch it is going to be done. I could hardly

keep the smile off my face the day it was announced, I was so happy and excited

to have it, but just let me tell you the real facts about it.

The ratepayers in Labrador West have paid enough over the last three years

through their increases of nearly 150 per cent, that they, in fact, are

subsidizing the power in the District of Cartwright-L'Anse au Clair. That is

why we became a part of the integrated grid rate, not because the government was

prepared to reach into its pocket and haul out $2 million in subsidization. It

was because the ratepayers in Western Labrador were forced to reach into their

pockets and haul out more money, and as a result of it -

MR. SPEAKER (Fitzgerald): Order, please!

I remind the hon. Member for Cartwright-L'Anse au Clair that her speaking

time has lapsed.

MS JONES: May I have leave to clue up my statements, please?

MR. SPEAKER: Does the hon. member have?

MR. RIDEOUT: (Inaudible) to clue up.

MR. SPEAKER: The hon. member by leave.

MS JONES: I thank the Government House Leader, and I will not be very

long. Thank you.

The real story is this, the $1.6 million that it will cost to subsidize

domestic users of electricity in Southern Labrador will be paid for by the

ratepayers in other regions of Labrador and not necessarily out of the coffers

of Newfoundland and Labrador Hydro or the provincial government. So, Mr.

Speaker, why did they not take it a step further and include commercial rate

users? That is where I have the problem.

If I own a business today in Happy Valley-Goose Bay or in Labrador City, I

will pay less than five cents a kilowatt hour for power. In fact, if I have any

scale of industry at all, I will pay less than two cents per kilowatt hour for

power. But, if you live in my district or live in my colleague's district in

Northern Labrador, you are going to pay up to nineteen cents a kilowatt hour for

that same power. So, you tell me, how can businesses on the southern and

northern Coast of Labrador compete with those kinds of rates? They cannot, and

until government is prepared to offer up the Labrador grid rate on commercial

and industrial users on the Southern Coast of Labrador and Northern Labrador,

the same as they have for Happy Valley-Goose Bay and Labrador West, then they

are always going to be able to hide behind the excuse that the cost of power is

too high to have industry development in the southern region. If the ball was in

their court, they have the money to be able to subsidize it and they have the

power to be able to change it. So if they are serious about investing in rural

communities and making industry work for rural communities, they could have

started by putting a full scale operation for processing of wood in the Port

Hope Simpson area, or in the Cartwright area in my district, Mr. Speaker, and it

would have contributed to the long-term viability of those communities.

Thank you, Mr. Speaker.

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

SOME HON. MEMBERS: Hear, hear!

MR. HUTCHINGS: Thank you, Mr. Speaker.

Mr. Speaker, I am delighted today to rise and speak to the Estimates Resource

sector. It is the first opportunity I have had since being a member of the House

to speak to a Budget and or Estimates.

Mr. Speaker, these are areas and departments that are very important to my

district. Overall, some of the initiatives of the Budget, obviously, are quite

important to the Province. If we look at the Business department, Environment

and Conservation, Fisheries and Aquaculture, ITRD, Natural Resources, and

Tourism, Culture and Recreation, all very important drivers for the economy and

important drivers of rural Newfoundland.

Mr. Speaker, we have to look back and say, how did we get here today, in

terms of what this Budget is offering all of Newfoundland and Labrador? How did

we get here? This government came to power in 2003 in the process of getting our

financial house in order. Obviously, to get our house in order we had to

determine our full liabilities and develop a long-term financial plan. We had to

look at and consolidate our liabilities, both direct and indirect. It was only

then that we could move forward and strategically identify where we needed to

go.

This government had to make tough decisions to set the stage for where we are

today and to be able to make the investments that we see today being made in

this Budget. Obviously, the Atlantic Accord was a tremendous accomplishment of

this government, an infusion of new money into the financial plan as we move

forward.

Mr. Speaker, there is, indeed - over the past number of years, and especially

today in terms of the Budget - a feeling of positive change in our Province and

a renewed confidence of where we are going and confidence of where this

government is going to take us.

Mr. Speaker, interestingly enough, watching this government over the past

couple of years in terms of the efforts they made and choices they made had a

large part to do, for me, in terms of getting involved in politics. Two reasons

I got involved in politics, the first was that I always wanted the opportunity

to represent the District of Ferryland, and the people, and as well because of

the leadership of this government, and the Premier, in terms of having a vision,

having a plan, putting our financial house in order and moving forward.

Mr. Speaker, when we look how we have done over the last couple of years,

especially in 2006, we look at economic indicators, how we have done, we have

seen GDP growth in 2006 at 1.9 per cent, participation and employment rates at a

near record high in 2006. We see retail sales expanding at 3 per cent to $6.1

billion. This is significant, retail sales, because obviously that indicates

there is more money in people's pockets and they are able to spend, and

obviously that drives the economy.

We saw, in 2006, residential construction continue to grow 3.1 per cent, in

excess of over $1 billion. In 2006, we saw our non-resident tourists visiting

the Province increase by 5.6 per cent to almost 497,000 people from all over the

world visiting all parts of the Province, as well as many parts of my district

which relies so heavily on the tourism industry, expenditures of $366 million,

which is an increase of 8.8 per cent from the prior year. Other areas we saw

growth in, exploration, totalling almost $98 million, the highest ever.

So, as we move into 2007, Mr. Speaker, and this government continues to

invest in various areas like some of the ones I mentioned that have been

discussed in the Estimates - ITRD; Natural Resources; Tourism, Culture and

Recreation - they are very important. If we look to 2007, what is expected in

terms of moving forward? Our GDP is still expected to grow, employment is

expected to increase, real personal income and real disposable income are both

expected to grow, retail sales, again, is expected to increase to $6.2 billion

in 2007, up 2.5 per cent from 2006. Again, Mr. Speaker, good signs of a stable

and growing economy, good signs for our people, good signs overall.

Offshore oil production is expected to grow significantly in 2007. Again, Mr.

Speaker, a good sign of a flourishing economy.

Mr. Speaker, specifically now I would like to speak to some of these

particular Estimates and my district, in particular, in terms of the benefits -

Tourism, Culture and Recreation. In the District of Ferryland, Mr. Speaker,

tourism is a tremendous part of the economy. It is flourishing, it is growing,

it is doing quite well. I will just cite a few examples of investments made by

this government, and opportunities that lie ahead for us and which this

government is committed to.

Just a couple of weeks ago, Mr. Speaker, I had the opportunity to attend the

grand opening of the new visitor centre in Portugal Cove South. It officially

opened its doors on the Southern Avalon. This site is going to promote the

natural historic attractions that include a world-renowned fossil site and the

wireless station that received the Titanic's last distress call.

Mr. Speaker, this venture was a partnership between the Government of

Newfoundland and Labrador, the Atlantic Canada Opportunities Agency, Service

Canada, and saw Innovation, Trade and Rural Development invest $150,000, as well

as the Department of Municipal Affairs.

Mr. Speaker, it has major tourist attractions, as I said, the Cape Race Light

Station National Historic Site, the Marconi Wireless Station, and the Mistaken

Point Ecological Reserve. It is interesting, Mr. Speaker, the Mistaken Point

Ecological Reserve has been short-listed for UNESCO World Heritage Designation,

and is seen as one of the most significant fossil sites in the world. A

tremendous opportunity for this region, Mr. Speaker. Portugal Cove South area,

Trepassey, Biscay Bay, that area, a tremendous investment here for tourism,

culture, and the overall Irish Loop.

Mr. Speaker, in speaking to a geologist who has worked on this project with

community groups and with the community for the past number of years in terms

of: What are the possibilities of a UNESCO designation? What is it going to

mean? What could the return be? It was indicated to me that such a process, if

it gets UNESCO designation, could mean as many as seventy-five to 100 people

could visit that site every day. Mr. Speaker, that is phenomena - a phenomenal

number of people in that rural community - and this government has invested in

it and is proud to do so. Mr. Speaker, it is just one more example of how this

government is investing in rural Newfoundland and Labrador, and that there are

significant returns for that investment.

As part of the UNESCO designation for that site in Portugal Cove South, this

government, in the Budget, through ITRD, Industry, Trade and Rural Development,

has recommended it be approved that a three-year budget be set so that a

biologist could be hired to prepare the nomination papers and be submitted to

have this designation obtained. Once again, a commitment by this government in

rural Newfoundland in terms of promoting jobs and the economies of rural

Newfoundland and Labrador, much needed.

Mr. Speaker, as well in my district, this government continues the

commitments to the provincial parks program. In my district we have La Manche

Provincial Park. Normally during the summer months it is 100 per cent occupancy,

a great site, a great facility used very much by people from all over. Again, in

this Budget this year, I am pleased to recognize that it has continued the

renewal strategy, and even gone from a three-year commitment to a four-year $4

million initiative. So, once again this year, we will see upgrades to La Manche

Park and they will continue next year as well, another growing part of the

tourism industry along the Southern Shore. Tremendous, Mr. Speaker.

As well, we know that any tourism industry in general, business, small,

medium and large, the fishing industry in my district, in terms of

transportation back and forth, resource back and forth, if it is not landed

there, an important issue. This government, again this year, will be investing

in roads infrastructure in my district, $2.3 million, a tremendous amount of

funding to improve various sections of the highway from Bay Bulls to Trepassey,

and as well some side roads, community roads. Once again, to build that

infrastructure is so vital to economic development and to rural Newfoundland.

Once again, Mr. Speaker, this Budget is looking at investing in the historic

sites throughout Newfoundland and Labrador, which is very important.

Mr. Speaker, as well, in the last couple of weeks I had the opportunity to

meet with the Irish Loop - I attended the Irish Loop annual general meeting. I

had the privilege of having the Minister of Business up to speak. It was very

interesting to sit with those businesses in my community, small and medium; very

positive, a very bright outlook. We heard people stand and talk about how they

are starting new businesses or they are expanding existing businesses. Very

positive, Mr. Speaker, very positive.

My district has twenty-seven small, rural communities. Many of the businesses

that are in those small communities are doing quite well, expanding, and people

are stepping forward with the entrepreneurial spirit and getting involved in

creating jobs.

SOME HON. MEMBERS: Hear, hear!

MR. HUTCHINGS: It is very good to see, Mr. Speaker.

Mr. Speaker, as well, just recently on Saturday, I spoke to the Irish Loop

Tourism Association. Once again, in the district alone - in the past number of

years we have seen the growth of twenty-five new small and medium-sized

businesses. Once again, Mr. Speaker, very good initiatives; very positive. A

very good outlook from those people in terms of what is happening in the

communities and how things are going. Tremendous!

Mr. Speaker, overall, in terms of some of the initiatives we see in the

Budget, very positive. I have mentioned some as I have gone through. I guess the

biggest highlight is fiscal performance, where we were and where we are today. A

review of 2006-2007, a surplus of $76 million versus a surplus estimated at $6.2

million; a reduction in net debt by $70 million. Once again, Mr. Speaker,

getting our financial house in order so we have the ability to invest in rural

Newfoundland and make the investments to support the economic climate we need to

have successful business.

The forecast for 2007-2008. Mr. Speaker, we are forecasting a $261 million

surplus. A reduction in net debt of $66 million, a reduced debt servicing cost

of $51 million. Once again, Mr. Speaker, this is about getting our financial

house in order, as I mentioned. You have to look at your debt and look at the

interest you are paying on your debt; just like running a household, in terms of

your mortgage and all of the other expenses of average families. You have to get

your cost under control so you can pay for day to day and then to pay for things

in the future that you require. That is what this government is all about, Mr.

Speaker.

Mr. Speaker, when we look at senior's benefits, this is a Budget about all

sectors of our economy, all peoples, all people of our Province; everybody

getting a return on the good fiscal management of this government and the

decisions they are making.

Once again, Mr. Speaker, I talked about some of the small and medium-sized

businesses in my district and how they are doing. This government is recognizing

this as well and is helping to promote economic growth by investing in a healthy

business climate, which is so important. We are seeing $8 million for small and

medium enterprise funds from the Regional Sectoral Diversification Funds and $1

million for business and marketing programs. Tremendous, Mr. Speaker, well

directed and strategic investment. Again, we are seeing $1 million for tourism

marketing, bringing the total budget to $11 million; $11 million for this

Province. It continues to grow. The budget for Tourism has approximately doubled

since this government took office; a tremendous investment.

As I mentioned before, investing in infrastructure; the second year of

government's investment in infrastructure was $2 billion over a six-year

period. This year the investment is about $67 million. Once again, reinvesting

in rural Newfoundland and Labrador. That is where most of that funding is going.

As well, our incorporated communities and towns are seeing an investment of $51

million there. Once again, to put in place the appropriate infrastructure.

We are seeing investing in skills, Mr. Speaker, which is so important. This

government has recognized that for some years the skills development which was

required by our young and old alike, that is needed in the economy, we may have

fallen behind. This government recognizes that and has provided the appropriate

investment to make sure we are ready today and ready in the future for those

skills that we require in our workplace.

SOME HON. MEMBERS: Hear, hear!

MR. HUTCHINGS: Young people, Mr. Speaker, we see increased funding for

community youth network to expand in six new areas of the Province. Mr. Speaker,

youth, obviously we know, we always say are the foundation for our future. Once

again, we look at education and our youth. Where do we go? Where is our future?

Our future is with our youth. They are the leaders of tomorrow. I have two small

children. Obviously, we look to ensure that the Newfoundland and Labrador of

tomorrow will be theirs. We want to make sure the appropriate environment is in

place for them where they can flourish, certainly like all parents, the children

of Newfoundland and Labrador.

Mr. Speaker, this year, unprecedented, a $1 billion investment in education.

The first time in the history of this Province that we have seen that amount

invested. A further investment of $41 million in the K to 12 system. We have

seen unprecedented expenditures in school infrastructure, in maintenance and

repair of high schools, as well as construction of high schools. Much needed,

Mr. Speaker. It was the ability of this government to put their financial house

in order, beginning in 2003, and be able to invest right now and do what is

required to do as we move forward.

Again, with our school system and education; we see the retention of 137

teaching positions in the system to ensure we can meet the needs of all our

classrooms, not only in the urban setting, but in rural Newfoundland and

Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. HUTCHINGS: Again, Mr. Speaker, in education, we have seen a

tremendous investment of $13 million of free textbooks in courses for all

children from Kindergarten to Grade 12. Another tremendous investment.

As we move forward, as children move through their primary and high school

and they look to the future, where do they need to go? Post-secondary. I had the

opportunity to attend Baltimore High School in my district for their graduation

last Thursday night. There were a lot of students there. Obviously, a lot of

students with wonderment and expectations of what the future holds. What will

they do? Where will they go? What does the future hold? A lot of concern for

parents and, obviously, students: What is the cost going to be? What is my

government going to do? Are they going to step up and assist me? Once again,

this year government has frozen tuition and is looking to the future. This fall

it is beginning a grant program, as well as looking at interest relief. So this

government is meeting the call and is helping our students and young people

again.

Mr. Speaker, we have investment in personal health in this Budget again,

amendments to the provincial drug program to make drugs more affordable. When I

went door to door in February, I met a number of families who spoke to me in

regard to the troubles in terms of, unfortunately, a member of the family had a

particular disease, or needed particular drugs, quite expensive, quite high.

Obviously, it ate into their disposable income - middle-class family, all the

requirements and aspirations of any of the rest of us in terms of children and

moving through life, big concerns in terms of, how would they pay for those

drugs?

Once again, Mr. Speaker, this government has stepped up and looked at

enhancing the provincial drug program, and no doubt will help those families and

help all families, and that is so important.

In terms of children under eighteen -

MR. SPEAKER: Order, please!

I remind the hon. Member for Ferryland that his time for speaking has

expired.

MR. HUTCHINGS: With leave?

MR. SPEAKER: Does the hon. member have leave?

AN HON. MEMBER: By leave.

MR. SPEAKER: The hon. member, by leave.

MR. HUTCHINGS: Thank you.

Mr. Speaker, there are many initiatives here in terms of what this Budget

holds, very important to the people of Ferryland District and to all of the

Province, and I am certainly delighted to speak to it. The future looks bright,

and I am certainly delighted to be on this side of the House and to be able to

speak on these Estimates and on the overall Budget.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The hon. the Member for Bay of Islands.

MR. JOYCE: Thank you, Mr. Speaker.

I stand here to speak on the Resource Committee on the Estimates that we had.

This is an opportunity where we sit down and discuss the Budget with the

ministers. We go through item-by-item, and some of the highlights and the

deficiencies that we see in the Budget, as an Opposition, we express it. Some of

the departments that we have seen there are: Fisheries and Aquaculture;

Environment and Conservation; Tourism and Culture; Business; Innovation, Trade

and Rural Development; and Natural Resources. We sit down and usually go for two

or three hours and go through different parts of it and we highlight some of the

things that we see in the Budget.

Before I get into some of the Budget items, Mr. Speaker, there was a question

raised today by my colleague for Humber Valley on behalf of Ms Wheeler about

trying to get some treatment. The minister here was asked today would he

intervene and try to speed up the process? Of course, the minister gave his

answer, that he is not going to get involved, they have to wait for the

application to be made.

The other question that was asked by my colleague, the Member for Humber

Valley, who is the health critic, was: Would he help with the transportation to

and from St. John's to help this lady? Again, the minister said no, that he

did not want to get involved with any transportation because he is not sure what

effects it will have. He is not sure what the outcome would be.

Well, I can tell th