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May 16, 2018

HOUSE OF ASSEMBLY PROCEEDINGS

Vol. XLVIII No. 20

The

House met at 10 a.m.

MR. SPEAKER (Trimper):

Order, please!

Admit

strangers.

Orders of the Day

MR. SPEAKER:

The hon. the Government House

Leader.

SOME HON. MEMBERS:

Hear, hear!

MR. A. PARSONS:

Mr. Speaker, I call from the

Order Paper, Order 3, third reading of Bill 13.

MR. SPEAKER:

The hon. the Government House

Leader.

MR. A. PARSONS:

Mr. Speaker, I move, seconded

by the Minister of Natural Resources, that Bill 13,

An Act To Amend The Jury

Act, 1991, be now read a third time.

MR. SPEAKER:

It is moved and seconded that

the said bill be now read a third time.

Is it

the pleasure of the House to adopt the motion?

All

those in favour?

SOME HON. MEMBERS:

Aye.

MR. SPEAKER:

All those against?

This

motion is carried.

CLERK (Barnes):

A bill,

An Act To Amend The

Jury Act, 1991. (Bill 13)

motion, a bill, “An Act To Amend The Jury Act, 1991,” read a third time, ordered

passed and its title be as on the Order Paper. (Bill 13)

MR. SPEAKER:

The hon. the Government House

Leader.

MR. A. PARSONS:

Mr. Speaker, I call from the

Order Paper, Order 4, third reading of Bill 14.

MR. SPEAKER:

The hon. the Government House

Leader.

MR. A. PARSONS:

I move, Mr. Speaker, seconded

by the Minister of Natural Resources, that Bill 14,

An Act Respecting Children,

Youth And Families, be now read a third time.

MR. SPEAKER:

It is moved and seconded that

the said bill be now read a third time.

Is it

the pleasure of the House to adopt the motion?

All

those in favour?

SOME HON. MEMBERS:

Aye.

MR. SPEAKER:

All those against?

This

motion is carried.

CLERK:

A bill,

An Act Respecting

Children, Youth And Families. (Bill 14)

MR. SPEAKER:

This bill is now read a third

time and it is ordered that the bill do pass and its title be as on the Order

Paper.

motion, a bill,

An Act Respecting Children, Youth And Families,” read a third

time, ordered passed and its title be as on the Order Paper. (Bill 14)

MR. SPEAKER:

The hon. the Government House

Leader.

MR. A. PARSONS:

Mr. Speaker, I call from the

Order Paper, Order 6, second reading of Bill 8.

MR. SPEAKER:

The hon. the Minister of

Finance and President of Treasury Board.

MR. OSBORNE:

Thank you, Mr. Speaker.

I move,

seconded by the hon. Government House Leader that Bill 8,

An Act To Amend The

Income Tax Act, 2000 be now read a second time.

MR. SPEAKER:

It is moved and seconded that

Bill 8 entitled

An Act To Amend The Income Tax Act, 2000 be now read a second

time.

Motion,

second reading of a bill, “An Act To Amend The Income Tax Act, 2000.” (Bill 8)

MR. SPEAKER:

The hon. the Minister of

Finance and President of Treasury Board.

MR. OSBORNE:

Thank you, Mr. Speaker.

The

amendments that are needed to bring this act in – what we're doing with this act

essentially, Mr. Speaker, is changes to the search and rescue tax credit that we

announced as part of Budget 2018.

We were

honoured, myself and the Member for

Stephenville - Port au Port East, I think it is

called –

MR.

FINN:

Stephenville - Port au Port.

MR.

OSBORNE:

Stephenville - Port au Port, who brought the idea to me during the budget

consultations. I know that the Minister of Service NL and the Minister of

Justice and Public Safety, we did a news conference a couple of weeks ago with

the St. John's Rovers regarding this issue. There were a number of search and

rescue organizations from across the Island came into the city.

This is something that search and rescue volunteers

have been asking for, for quite some time. Volunteer firefighters currently have

the tax credit; the tax credit is a $3,000 tax credit. You need 200 hours of

volunteer time in order to apply for the tax credit on your income tax.

What we're doing in this act is bringing it in line

with the volunteer firefighters' act. We are allowing any individual who

volunteer for both search and rescue and the volunteer firefighter to combine

their hours. They can only claim either one tax credit or the other, but we're

allowing individuals to combine their hours to give them a total of 200 hours

because some individuals throughout the province volunteer for both search and

rescue as well as volunteer firefighting. We felt it was appropriate to allow

individuals to combine their hours.

Mr. Speaker, those individuals who dedicate their time

in excess of 200 hours per year, it's a very fitting reward for them for

government to recognize their time, the valuable hours that they put into search

and rescue, saving lives, the valuable hours that they put into volunteer

firefighting and give very selflessly of their time as a volunteer. T his

tax credit, while it's not a huge cost to the province, is certainly a big

benefit to those individuals who volunteer their time and provide that volunteer

service to the people of Newfoundland and Labrador.

I can't

overstate how impressed I am with the commitment of volunteers who do search and

rescue or volunteer firefighters, and the level of skill they bring to search

and rescue throughout our province, but I'm also impressed with the level of

composure and focus that they bring to difficult and often traumatic situations.

Under very difficult circumstances, our province's search and rescue volunteers

face demanding situations head-on, helping others, in what is often their

darkest hours. It's for those reasons that we expanded government's support for

first responders by introducing the search and rescue tax credit.

The tax

credit, as I said, will allow a $3,000 non-refundable tax credit starting

January 1, 2019 on their provincial income tax returns. They require the 200

hours, as I said. So the provincial government along with WorkplaceNL have made

several enhancements in recent years to help volunteers, first responders and

will continue to stand behind them as they provide their services to the people

of the Newfoundland and Labrador.

Throughout the province some people might actually be surprised, Mr. Speaker, to

learn that Newfoundland and Labrador Search and Rescue Association is comprised

of 27 teams and have more than 1,000 volunteers throughout the province. That's

really quite impressive for those individuals to give so selflessly of their

time to help others in, as I said, what is sometimes a very traumatic situation.

The

search and rescue volunteers work hard to bring those people home safely to

their families. Most of the time, they are able to bring the individuals home

safely. We know of just recently snowmobilers on the Northern Peninsula and I

believe in Labrador were highlighted in the news and those searches were

successful. They found the individuals and brought them home.

without the help of these 1,000 volunteers throughout the province, that would

not always be the case. We wouldn't always see a situation where they were able

to bring somebody home safely. So the tax credit that we're putting forward, Mr.

Speaker, is a very small cost to the provincial government, but it's a very,

very large benefit to those volunteers.

It's

important that we do whatever we can to support the volunteers who play such an

important role in search and rescue operations in Newfoundland and Labrador.

These people, the men and women who volunteer their time in search and rescue,

Mr. Speaker, are an integral part of the public safety in this province. The

work they do is extremely important. As a government we recognize that work,

which is why we're offering this tax credit in this year's budget. Our

government will always seek opportunities to support those individuals who spend

their time supporting families throughout our province.

I would

particularly like to recognize, Mr. Speaker, the head of the Rovers Search and

Rescue who put together the opportunity that we had for the news conference two

or three weeks ago where myself, the Member for Stephenville - Port au Port and

the Minister of Justice and Public Safety were greeted very respectfully and

welcomed into that facility. It was an honour to be able to look at some of the

equipment they use throughout the province and the technology they use. I'm very

impressed with the command centres they use. The Rovers Search and Rescue, I

wanted to send a thank you to them as well for organizing that event and

welcoming us to their facility and showing us some of what they do, but, as

well, other operators throughout the province.

Mr.

Speaker, the Member for Stephenville - Port au Port has a great deal of respect

for first responders. As I said, it was his idea during the budget

consultations. A number of the changes we made in this year's budget were as a

result of listening not only to individuals throughout the province in the

pre-budget consultations, but Members of the House of Assembly. We put an

invitation out to all Members to come to us and provide us with ideas. Those

Members who did, where we were able to incorporate those ideas into

Budget 2018 , we certainly did.

Mr.

Speaker, it is extraordinary that in our busy world there are so many people

that are so willing to give freely of their time. This new tax credit is

intended to reward those volunteers for the good work they do. The amendments

we're making today are to put this program into effect. Through these

amendments, we are making changes that will allow us to reward and recognize the

good work of the volunteers that work in search and rescue.

Mr.

Speaker, included in these amendments, we're looking at the combined total of

tax credits as $5,000, which is consistent with volunteer firefighters. We also

looked at making some small amendments to educational and training tax credits

that have to be used. If you're transferring tax credits to a spouse or a

parent, your volunteer tax credit has to be used prior to being able to transfer

your educational tax credits. So that's a part of these amendments as well. It's

generally housekeeping in order to put into effect the recognition that we want

to provide to the volunteers throughout the province.

With

that, Mr. Speaker, I will say that it's a pleasure to stand and recognize the

tireless work of our search and rescue volunteers throughout our province and

how this amendment will ensure that these dedicated volunteers will have

additional financial support as a reward for the good work they do.

Thank

you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Opposition House

Leader.

MR. HUTCHINGS:

Thank you, Mr. Speaker.

I'm

pleased to stand to speak to Bill 8,

An Act to Amend the Income Tax Act, and

deal specifically with search and rescue volunteers. As the minister said,

bringing the tax credit availability to that group of volunteers who do

tremendous work in our communities and regions in times of crisis in many cases

where search and rescue skills and expertise are required and do that right

across our province. This recognizes their work on a volunteer basis and gives a

tax credit related to that activity.

This

comes in line with what was introduced in 2018, I do believe, in regard to

volunteer firefighters and being able to access the firefighters' tax credit.

Newfoundland and Labrador, when you look at statistics in volunteerism on a per

capita basis, we have some of the highest rates of volunteerism in the country.

Based on that, it's important that we recognize the activities, certainly

volunteer firefighters, search and rescue volunteers as well and the work they

do and how critical they are in our communities, especially our smaller

communities, where they keep these fire brigades operational and as well, from

the search and rescue point of view, in times of need they're there.

They're

usually there in the regions in communities and they're accessible very quickly

in a time of need like that. So they play a critical role in our communities, in

our regions. When we talk about sustainability of areas in parts of our

province, they play a key role in having that service and people having the

comfort level of living in those communities and regions because those

volunteers exist.

This tax

credit looks at giving back to this group of people and the work they do. The

Search and Rescue Volunteer Tax Credit, as we're talking about here in this

particular bill, will be identical to the firefighters' tax credit.

The

minister has referenced the fact that 200 hours of service is required. My

understanding, based on the bill, is that's cumulative and can be used for

either activity. We do have people that are involved in many activities in their

community and in volunteerism, and could be involved in a volunteer firefighting

brigade and as well, involved in a search and rescue volunteer fire brigade.

Collectively, if they put in different hours in different activities, they can

avail up to 200 hours – use it in both of those activities, the 200 hours to

avail of the tax credit.

The

credit would be $3,000 taxed at 8.7 per cent. This tax credit was announced in

this Budget 2018 and my understanding

is it can be availed of in taxation year 2019. When individuals are doing their

personal income tax they can draw down on that tax credit at that point in time.

question I had reading through the bill – and probably when we get to Committee

the minister can speak to it. I said about the large number of volunteers we

have in the province and in volunteer fire brigades and the number of people

that are involved in that. I'm just wondering if the minister in Committee could

maybe get some information in regard to the number of registered volunteer

firefighters and the uptake that's been seen on the actual tax credits since

it's come in for volunteer firefighters because it's relevant here. One would

ask are people aware of it? Has it been availed of? It's important that those

volunteers would be aware of it and could avail of it.

Then,

looking forward, I think he mentioned in regard to the search and rescue and the

numbers, I think he referenced the number of maybe 1,000 in regard to those that

are involved in search and rescue. Those would be volunteers that could avail of

this actual tax credit in 2019. I guess that would be the projected of 1,000 who

could be available. It's always good to make them aware that this tax credit is

available to them and they can avail of it based on their service up to – and

requiring 200 hours of service.

I know

from the search and rescue point of view, I've seen it myself over the past

number of years in regard to the role they play. I refer to a number of years

ago we were in the Avalon wilderness, into Frank's Pond with a group of people,

there was a gentleman with a young son who went off for the day to a fishing

hole, didn't make it back to camp, darkness came and there was a call made to

the local search and rescue volunteer group.

They

arrived late at night, it was probably about 11 o'clock and it was a very

nervous time for the family indeed. Luckily enough, it all worked out well, but

it just goes to the unique situations that can occur. It's not a good place, if

anyone is familiar with the outdoors and certainly the Avalon wilderness, once

darkness comes, the temperature drops, and there could be challenges and dangers

to everybody. But these are the kinds of people that are involved in activities

that could be called upon to go out and assist, and what this bill does is

certainly recognize that activity, that commitment and what they do.

The

other thing about it is this is not an activity, for these folks, that's 9 to 5.

Most of these activities happen late at night and, oftentimes, in extreme

conditions. It's not just a 9 to 5 in the perfect conditions outdoors that they

would respond to certain activities. It is unique in what they do.

The

provisions of the bill and the various sections that have been amended – clause

1 adds the definition needed for the tax credit. From my understanding, the

definitions are in line with the federal act and tax credits, and that's in

clause 1. Clause 2, this adds 17.4 to the legislation and adds the search and

rescue tax credit to the order and to various provisions.

The

other provisions in it look at – and the minister mentioned this as well –

referencing the fact about the transfer of unused education credits and fully

utilized other tax credits before being able to avail of this actual search and

rescue tax credit first. I think the minister had mentioned that as well when he

was up.

Then it

goes on and parts of it talks about, as I said before, using jointly the two

activities of volunteerism, the firefighting component and the search and rescue

component, to get to the required 200 hours as indicated in the bill.

You

can't receive – and the minister said this as well – two of the tax credits

cumulatively one on top of the other, stack them I guess, in terms of that

regard; but cumulatively, you can receive them up to the maximum, up the cap

that exists.

From our

perspective, Mr. Speaker, in terms of this bill, I thank the minister for

bringing it forward in regard to our volunteers and all the work they do. As I

said, there are a few questions there that are brought up. Maybe in Committee we

can have a short discussion on those and some of the indicators of what's been

availed of to date in regard to the volunteer firefighters, what's the

expectation or how do we market and make those volunteers aware that this exists

so those that partake can fully utilize the tax credit to the benefit of them

and their families.

We look

forward to that and having a chat on that in Committee.

Thank

you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for St.

John's East - Quidi Vidi.

MS. MICHAEL:

Thank you very much, Mr.

Speaker.

I, too,

am pleased this morning to rise and speak to Bill 8,

An Act to Amend the Income

Tax Act. I'm particularly happy to do this because of the content of this bill

which has –

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

MS. MICHAEL:

Thank you, Mr. Speaker.

Which

both the minister and the Member for Ferryland have spoken to in terms of the

details of this bill, something I think which is long overdue. It's certainly

something which has been sought for and spoken to by people who are involved in

search and rescue in this province as volunteers and is also involved in

firefighting.

We do

know that this tax credit which we are talking about here today, a tax credit

for search and rescue volunteers, is something that does exist in the federal

tax act. Of course, our provincial act should be parallel with the federal act.

I think it's important. It was necessary that this be brought in to our

provincial tax and will be administered in a parallel way with the federal tax.

I won't

go into the details of the bill; the minister and the Member for Ferryland have

done that. It basically is technical. You do have the definition in there of

adding search and rescue volunteers to the list of people who get tax credits in

doing this kind of volunteer work. Then you have all of the technical ways in

which that gets dealt with inside of the taxation system. The important thing is

that this credit is going in place.

A lot of

people may not realize but people who voluntarily do this search and rescue work

pay for expenses out of their own pockets. The equipment that they use comes out

of their own pockets. For example, nowadays they use GPS, obviously; have always

used compasses, they're still in use; proper clothing. They use gas in driving

to and from the sites where they're involved in doing the search and rescue

work. All of these expenses – a GPS alone can cost $500.

giving a tax credit I think will really help to – the minister used the term

reward the volunteers, and I think it's a recognition of not just the time that

they put into this and not just the human danger in which they put themselves,

but also the money that comes out of their own pockets to pay for the equipment

that they use. So this is a recognition, I think, of all of that. There are 27

search and rescue groups in this province, and all of them, obviously, have

welcomed this tax credit.

This has

been asked for, for a long time, as the minister has pointed out. Recognition of

volunteers is extremely important, but especially these volunteers – and this

goes along with the firefighters as well, the volunteer firefighters, because

they are involved in something which has to do with life and death in our

province. It amazes me – it really does – when I hear of the situations in which

they put themselves in, in order to help the community and to help the people of

this province, and to make sure the people of this province are kept safe.

I was

delighted when the budget speech said this was going to come in, and we are

happy as the caucus here to support this bill today. The credit itself will

start on January 1 of 2019, which means in 2020 when people do their tax return

in 2020 that will be the first time that they'll claim, because they'll be able

to claim for the expenses starting with January 1.

So it's

good news and I thank the minister for bringing it in, for listening to the

voice of the many, many volunteers out there doing this work, and we'll be very

happy to support the bill.

Thank

you, Mr. Speaker.

MR. SPEAKER:

The hon. the Member for

Stephenville - Port au Port.

MR. FINN:

Thank you, Mr. Speaker.

It's

certainly a great pleasure to rise today to speak to Bill 8,

An Act to Amend the

Income Tax Act. I certainly wish to, first and foremost, thank the Minister of

Finance for acknowledging the fact that I did bring this idea forward with

respect to providing a tax credit to our search and rescue volunteers, but I

certainly cannot take all of the credit, that's for sure.

Mr.

Speaker, as you're aware, we listen to our constituents across our districts and

we listen to citizens from all across our province, and this was something that

was brought to me. It's an idea that was brought to me by a gentleman by the

name of Mr. Gerry Clark. I'd certainly be remiss not to acknowledge Mr. Gerry

Clark.

Mr.

Clark actually happened to be my grade 10 teacher at one point, and then again

in grade 12 in my senior year of high school. He actually taught me the first

aid and safety course. It's an interesting story behind that and my work with

Mr. Clark throughout that program. I guess at that time I had taken a search and

rescue and various safety courses: backpacking, mapping, using compass, the

ability to stay in the woods overnight, a number of things, and in particular

first aid, I had taken on a number of occasions. So by the time I got to his

grade 12 class, I wasn't entirely interested in continuing with the first aid

course.

I'll

make a bit of a long story short, but it is quite comical. Mr. Gerry Clark who

is the head of the Stephenville-Kippens-Port au Port Search and Rescue group, he

and I certainly chuckle over this. Entering my grade 12 year, I had already

accumulated a number of what I had thought to be extracurricular credits towards

completing my high school diploma.

In the

beginning of my senior year of high school, the principal at the time and the

vice-principal had called me down to the office. They said: John, if you do not

enrol in this first aid course with Mr. Clark, unfortunately, you will not have

enough credits to graduate high school. I said I wasn't aware that was the case.

I thought I had all of these extra credits and I did some extracurricular

activities and there was an after school band program and so on so forth. They

said: No, John, if you do not take Mr. Clark's first aid course you will not

graduate high school.

Now, in

my senior year of high school, once you had reached so many credits and all of

your course opportunities were taken, you could have what we called free periods

or free slots. There would be some days of the week, Mr. Speaker, where I would

only go to high school for an hour in the morning. I'd be off for two hours and

then I'd go back for an hour or two in the afternoon. I had the most free slots

in the school, and it was because I had taken a lot of these extra courses;

however, they said you cannot not have this extra free slot or free period,

you're required to take this course with Mr. Clark. In doing so, as I said, I

was quite frustrated. I had completed first aid on a number of occasions.

Mr.

Clark had taught me since grade 10. I did complete the bronze, silver and gold

Duke of Edinburgh Award program, which had me at the age of 14 doing everything

from map and compass to hiking from Corner Brook to Stephenville on a

three-night, four-day expedition, kayaking and horseback riding, hiking all over

Gros Morne, you name it, Mr. Speaker. So being out in the woods and out in the

forest was something I was accustomed to. So I did not want to take this first

aid and safety course again.

What I

did, Mr. Speaker – which I have no trouble admitting now, it was a probably a

little tough to admit a number of years ago – I skipped most of Mr. Clark's

classes. In fact, I actually skipped – and he'll acknowledge this, and this is

why this is quite funny today. He's extremely proud this was brought forth and

that I was in a position to do so.

skipped so many of his classes that it got to the point come June of my

graduating year of high school, they said: John, if you do not complete this

next necessary assignment, you need to achieve a 70-plus or otherwise you will

actually receive a failing grade in this course as a result of your

non-attendance, losing marks for attendance. Ultimately, this will mean you will

not graduate high school.

Nevertheless, Mr. Speaker, I did everything I could to complete this last

assignment. I did pass. On my transcript I believe you will see that I received

a 51 per cent in my first aid and safety course. The 51 per cent, as I

mentioned, was not a reflection of what I was aware of, it was more a reflection

of the fact that I did not wish to go to this particular class.

The

irony of this story is – and I've actually told it at one or two graduations –

when I did receive my transcript and diploma the principal and the

vice-principal, I went down to see them. I actually graduated with three extra

credits. They lied to me in essence. I guess lying is a tough word.

The

reality was, and the lesson I learned from that was the principal and the

vice-principal had informed me they did not want to see a student with any

potential not working. They wanted to see me strive to do more. As a direct

result of that, they essentially tricked me into thinking that I would not

graduate unless I took Mr. Clark's first aid and safety course.

Mr.

Clark and I have a great relationship. He continues to drop into my constituency

office almost weekly to have a chat. I just share that story because it's quite

comical. It certainly provided a nice lesson to me, but it gives me an

opportunity to talk about Mr. Gerry Clark and some of the great work that he and

the Stephenville-Kippens-Port au Port Search and Rescue group do.

Mr.

Speaker, we have search and rescue organizations all across this province. I

believe there are 25 organizations: we have eight in Labrador and 17 here on the

Island. These groups represent some 25,000 hours of volunteer service. There are

1,000-plus members that volunteer with these 25 different organizations. Can you

imagine, 25,000 hours of volunteer service. This is for both ground and inland

search and rescue operations.

In 2017,

they had 100 missions across Newfoundland and Labrador – 100 search and rescue

missions that they were engaged in across this province. On the West Coast in

particular – sometimes in our media, be it CBC evening news or NTV Evening News

or the VOCM News, as we're all aware, there is a bit of an emphasis on the East

Coast, the Avalon region. I'm not saying that to take away from any other areas

or where they want to put their focus. Primarily, it's due to population and the

amount of incidents and things that arise.

always see on TV – particularly us at home on the West Coast. We always see on

TV, the rovers are out for a search and rescue mission or the rovers were

engaged in a search and rescue mission. Well, what I can tell you is the

Stephenville-Kippens-Port au Port Search and Rescue group is quite a busy

operation.

Mr.

Speaker, on the West Coast, just north of Point au Mal on the Port au Port

Peninsula, we have a Cabox, what's referred to as the Roof of the Newf. The

highest elevation in Newfoundland is in the Lewis Hills, which is between Point

au Mal and it moves north towards the Bay of Islands. This particular area,

being the highest elevation in Newfoundland and Labrador, despite what others

sometimes think would be Gros Morne. This particular area presents some extreme

challenges. In the summertime we have individuals that go hiking through this

region and they may get lost or disoriented.

actually had a really good friend of mine that I grew up with, and his self and

fiancé at the time had taken off – this was just two summers ago – and they

embarked on a day hike. They had their backpacks and they had a bottle of water

and a few snacks. They embarked on this day hike. When they got to the top of

the Lewis Hills the fog started to come down, the ceiling started to drop and

within less than an hour they did not know where they were. They were completely

lost.

As the

evening hours wore on there was some great concern as to where they were. It's

the folks from the Stephenville-Kippens-Port au Port Search and Rescue group

that immediately left their depot – a lot of these members are on call 24-7,

they have their cellphones and they have their CBs – and they took off. It took

until early the next morning, but through that search, God bless, that they did

in fact find my good friend and his fiancé. It's one example that has stuck out

to me, again given the proximity and closeness of myself and my friend. That's

just one of the many examples of some of the missions they do.

The

other thing, Mr. Speaker, is that's not a summer day hike. The other interesting

part about the Lewis Hills being the highest elevation in Newfoundland and

Labrador, is we have snowmobilers – as you would, Mr. Speaker, in Labrador – all

winter long. You can snowmobile in the Lewis Hills from December until probably

presently. You would have to drive in a little ways now with truck and trailer,

but you can still snowmobile on the West Coast in the mountains.

Individuals get lost, accidents happen. It's these types of volunteer groups,

these research and rescue groups, that we rely on to find us when danger arises.

We hope we never have to rely on them, but in fact if they were not there, we

would not be so fortunate enough to have them.

So, Mr.

Speaker, this particular tax credit is something that was brought up, as I said,

to me from my teacher Mr. Gerry Clark who I mentioned a moment ago, from he and

his members. I also understand as the Member mentioned from Ferryland, as did

the Minister of Finance, it's something that volunteer search and rescue groups

in this province have been asking for, for quite some time. It was new to me

when it was brought forth, and I understand I have to give credit as well to the

former –

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order please.

MR. FINN:

– minister of Finance who did come out and visit the Stephenville - Port au Port

District. The Minister of Justice actually spent some time with me in

Stephenville, took a tour of the facility and got to meet and speak with some of

our first-hand volunteers, including Mr. Clarke.

One

thing I can tell you, organization is something that they are very strong on.

There is not a single search and rescue mission that they have completed over a

25-year period that is not documented to the T. They have the maps drawn,

everything has been archived and they draw upon these historical searches –

these practical, actual searches that took place – for their practical learning

experiences moving forward. It's certainly remarkable to see the dedication and

organization and the way in which they train their volunteers.

What's

actually important as well, Mr. Speaker, is that these search and rescue groups,

they train with one another. And this is something that we see in a number of

different areas in our province where different volunteer groups partner and get

together. But the Stephenville-Kippens-Port au Port search and rescue group

often partners with the Barachois search and rescue group, which is

representative for the Member of St. George's - Humber. They partner with their

group out of the Bay of Islands as well, and they do all types of training, be

it rescuing from waterways, from boats overturned, the ice-free rescues, just

certainly a tremendous amount of work. And this is just in their training.

Mr.

Speaker, they're also good community citizens as well. There is not a community

event that I can recall that has happened in the Stephenville - Port au Port

area where the search and rescue volunteers are not present. They often take

care of things like crowd control, Mr. Speaker. The West Coast Senior Hockey

League is up in operation now and we have sometimes upwards to 1,000 or 1,100

citizens in attendance, and the search and rescue volunteers are there for crowd

control. They're also there as first responders in case there might be any

incidents with either players on the ice or citizens in the arena. Then they

also take care of the parking and folks that are leaving to ensure there's a

smooth flow of parking.

They

show up to our Canada Day activities, our municipal awareness days. The amount

of activities that they show up to just to provide and lend their support is

astonishing. What I can tell you, Mr. Speaker, is the people who look up to

these volunteers the most is the children. And to see some of these big trucks

come in with the ladders and their command posts and their command centres and

they take the children in and they show them all around, and they show them the

sirens and they show them how to use the CB radios, it's so interesting and the

children are so intrigued. So it's something that (

a) they're providing

community service and (

b) they're encouraging our youth and our young people to

look up to them.

They

also have a Hug-A-Tree program, is what it's called. A nice program for our

children. It's a way that our search and rescue volunteers actually show our

children and teach them methods of finding their way out, and/or staying put and

learning techniques involved when lost in the woods. It's a very great program

they provide to our children and our youth.

Mr.

Speaker, I just stand to kind of highlight some of the things that the search

and rescue groups have done. I'm extremely proud, certainly very passionate

about the work they do. To see that our volunteer firefighters have been

receiving this type of credit for years and as we know our rural communities, in

particular, depend on our volunteer firefighting services. So to see that our

volunteer firefighter groups have been receiving this tax credit for a number of

years, it was only fitting that we were able to bring it in for our search and

rescue volunteers as well.

So from

now forward, Mr. Speaker, as the Member for St. John's East - Quidi Vidi

mentioned, this will take effect in 2019. Essentially, what takes effect is that

if a member of a search and rescue volunteer group has logged either service

hours or training hours up to a 200-hour level, they will qualify for up to a

maximum of a $3,000 non-refundable tax credit on their provincial income tax.

It's

noteworthy again that it does begin in 2019, and this is primarily because we

are already in the tax year of 2018 so it was not entirely feasible to

backtrack. We have tax tables that we have to adhere to and methods in which we

file our provincial income tax.

So it's

a small gesture in some regard, but to these 1,000-plus volunteers across

Newfoundland and Labrador, this is something that is not a small gesture at all.

They do spend a significant amount of their money for various uniforms, various

pieces of equipment that they may require. While these organizations do their

own fundraising, and they do seek great municipal support as well, this is

something that will allow them a bit of relief when it comes to the end of the

year, and it's a bit of a reward and a bit of a thank you to recognize that we

see the value in the service they provide across our province.

Mr.

Speaker, I won't take much longer, as I understand some of the Members have

alluded to it, I just felt it would be interesting to share a little story about

a teacher of mine who has had a great impact on my life and someone who I'm very

close to.

addition to the minister recognizing that I had the opportunity to bring this

forward, it was certainly Mr. Gerry Clark who had brought it forward to me. I

would also be remiss not to thank the minister's staff, in particular, his

deputy minister, Ms. Denise Hanrahan and also one of his directors, Mr. Jay

Griffin, who I actually started communicating with this on I believe last May,

if you will, maybe last April, and we started conversations on it then.

certainly a huge thank you to the minister and his staff for bringing this

opportunity to a reality, and a sincere thank you to Mr. Gerry Clark, the

Stephenville - Port au Port search and rescue, as well as all of the search and

rescue organizations across Newfoundland and Labrador.

Thank

you very much, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the leader of the Official Opposition.

MR. BRAZIL:

Thank you, Mr. Speaker.

I'll

just take a few minutes to echo, again, some of the key points that my

colleagues here have said, and particularly to my colleague from the District of

Ferryland. I'll start by saying we on this side here, the Official Opposition,

will wholeheartedly be supporting this. We see it as a good piece of

legislation, and we see it as serving a key component to our society and

acknowledging the key work that a group of people do here to service the people

of Newfoundland and Labrador.

I will

start by saying I'm confident that no first responder, particularly those in

search and rescue or volunteer firefighters, go in to provide that service based

on a principle that they'll get a tax break down the road. They don't do that.

But adding an incentive here, and having agencies that lobby for that, just

shows the real support that we have for the service that's being provided here.

And it was acknowledged, too, by my other colleagues here at the end of the day

– and people may not know this – there is a cost related to this by those

volunteers. They lose out-of-pocket wear and tear on vehicles, other courses

that they'll pay for out of their own pocket to be part of to upgrade their

skill set.

They'll

also, in certain cases, be part of a fundraising event where they pay or spend

part of the money or donate things to be able to provide an ability to raise

money to provide an ability to buy equipment that enhances not only their

ability, but provides a better service for people.

I had

the privilege of being one of these first responders in a different world and

can really understand the value of the service that's being provided, but

particularly the fact that the general public appreciates that and acknowledge

that. You know at any time when you select a particular group and give them a

break over other groups in society, particularly around taxes, you get a

backlash. One thing you won't get in Newfoundland and Labrador is a backlash for

those volunteer first responders because people see the value. They see the

necessity. They see what it does to keep people safe, what it does to give

people peace of mind, and what it does to ensure that every region of our

province has access to safe services by professionals who are well trained and

are committed to their service there.

adding this here – I can remember a few years ago when the firefighters licence

plate came into being as an acknowledgement because in most cases, first

responders – in those cases there, the firefighters – had to respond quickly,

particularly in small areas as firefighters. They would with due diligence but

would have to probably exceed the speed limit, or they would probably have to

take routes that may not have been following all the pure legalities of the law

or the Traffic Act. Police officers and that could identify these people were

doing it to respond to an emergency as part of that.

That was

the first step in us really recognizing – I say us as a society. Here's a group

of volunteers that we have to provide every service incentive so that they can

go do their job. What we're doing here, the incentive we're providing is not

money in their pockets, because I know where their money is going in any little

tax break they'll get down the road. But they're putting that back into

upgrading their own skill set, how they go towards fundraising for pieces of

equipment or how they themselves ensure that they are better equipped to be able

to respond quickly.

I go

back to the point about bringing in an incentive for a particular group when you

know it's good because there's no backlash. I'll just tell a little quick story.

Twenty years ago in a former life I had to respond to one of these situations.

It was in a snowstorm. I was off the main road in a subdivision in the town,

Goulds at the time, before it was part of the city. I couldn't get out in the

snowstorm, got halfway out, almost in part of the middle of the road. The back

of my driveway you couldn't get out to get to the main thing. We had radios in

those days. It wasn't cellphones. I radioed ahead to one of the other people who

had a four-wheel drive. I walked to the main road, got picked up there. We went

and responded to the circumstance.

I came

back the next morning and had to get a plow to come in to plow me out so I could

get out. As the person came while we were doing the plowing, he basically said

what idiot, really, would come out in a blizzard snowstorm at 3 o'clock in the

morning – I said 3 o'clock in the morning – to try to get out to go. The car was

parked there and I think it was going to be $15 for him to plow it out. I told

him I was a volunteer firefighter and that we had a fire at a house. He stopped.

He did all the plowing, put it away. I went to pay him and he said: No, that's

on me. He said that's because he respected what first responders do and the

impact they had.

appreciated that, but it gave me a real understanding that everybody understands

and appreciates what other people do in our society. The things we need to do

and the incentives are not there about monetary gain, but we need to make it so

less intrusive for them financially that there would be a benefit.

I'll

tell another little quick story about a young man. I had some businesses at the

time and this young gentleman, who had become a volunteer firefighter also, was

the manager of one of my businesses. He was offered another job paying more in

another part of the city which would have restricted him from being able to

respond, particularly, daytime was the big issue, in the Goulds at the time.

They didn't have so many volunteer firefighters. There was no paid staff at the

time.

Those

other members of the department, who worked in the city or other areas, couldn't

respond in our normal three-to-seven-minute response time. He was offered a job

in the city, turned it down because he did not want to not be able to fulfil his

duty and protect his home community. So there's a testament to a gentleman like

that.

Fortunate enough, two years ago the Paradise fire department, the new building

was opened. I got the privilege to go with the Member then; the two of us are

Members, myself and the former leader of the Opposition. We sat, and as all the

dignitaries of the city, the mayor of the city, the mayor of Mount Pearl,

because it's a regional fire department now as part of the process, got to

unveil that and introduce the captain for that fire department. It was that

young man who had been a volunteer firefighter, who had gone on to become a

professional firefighter and was now the captain for that particular fire

department.

there's a connection there between the volunteer, what they do and the service

they provide. Their expectation, and all their expectation is nothing, is that

they can provide the service to the best of their ability.

We have

an ability to improve how they do that by giving some incentives, by being able

to restrict, take away some of the barriers that may be in place, but also just

acknowledging the great work they do and how it's appreciated. This piece of

legislation, with this change to that, does that, but it also recognizes the

other part.

Sometimes we take into account that volunteer firefighters and search and rescue

are one in the same. In principle, their value is one in the same – don't get me

wrong, without a doubt – but people not realizing they're two distinctive

organizations here.

One

being identified was important, and I think was a great first step. It has done

yeoman service to be able to still encourage people to stay there. It's a little

bit of incentive for them to be able to take the little bit of a tax break and

put it back into whatever it is they may do.

I had

one firefighter who had said to me at one point, the tax incentive they get at

the end of it, he takes his family out as a little reward for them being able to

put up with him gone to training, sometimes twice a week, depending on how many

responses they have to respond to.

Also,

putting in search and rescue volunteers is key because, again, as was noted here

by my colleagues, search and rescue volunteers, at a moment's notice, could be

called away to go to whatever particular area they're in to do a particular

search, not knowing what the outcome is going to be. They respond not knowing

exactly what it is they're going to face at the beginning until they're there

and the briefing is done and they set up their response.

In a lot

cases some of these are taking their own equipment. I've had guys who've taken

their own flashlights, their own radios; they're using their cellphones and this

type of thing. They do that without a moment's notice of thinking about that,

without a whim about what impact this is going to have, am I out of my zone for

minutes on my telephone. That's not in any way, shape or form an indication of

them even worrying about that. They do it because of the service they're

providing and the benefit it is to everybody here.

So it's

good to see that this is accepted here, it'll be accepted as part of the federal

tax credit. The fact that the year down the road before it kicks in gives an

opportunity to those agencies – the umbrella agencies that oversee particularly

the first responders who are volunteers – an opportunity to educate their

members on how they can apply for this tax credit.

Everybody in principle is entitled, just some will benefit a little bit more

because of the determination on their taxes they pay in, and where they fit

within the tax regime. The fact we're acknowledging as a society that we value

the work they're doing, and we know they're not doing it for any remuneration,

but we're saying here's an ability for you to get a little bit of a return on

your own investment, knowing that you invest 20 times what we do here.

There is

one little caveat, too, that I've known, because we all get caught up in our own

lives as first responders, that sometimes you make a decision: I don't know if

I'm going to be able to get to training tonight because I've got this, and I

could make it if I worked around it. The little incentive of the 200 hours, that

might be enough, particularly people who are saying, I've got a softball game

tomorrow night but you know what? I want to get to my 200 hours because I want

that tax credit because I can buy a new piece of equipment or I can do something

with my family as a reward for them supporting me as a volunteer.

So,

there's an incentive there along the way for those who are close, to be able to

say you know what, I'm going to make an extra effort there because at the end of

the day I can get an incentive that's going to help me even do my volunteer work

better, and also be able to, if I want, reward those people who are going out of

their way to support me.

Again, I

just want to acknowledge that I think there's a great piece of legislation here.

We will wholeheartedly be supporting this and say congratulations to all first

responders, but particularly those now in the search and rescue volunteer sector

for the great work they've been doing and continue to do, here's a little

incentive to say thank you.

Thank

you, Mr. Speaker.

MR. SPEAKER:

The hon. the Member for St. George's - Humber.

MR. REID:

Thank you, Mr. Speaker.

I'm just

going to take a couple of minutes to have a few words on this bill. I think it's

a very important piece of legislation, a very important initiative coming from

the budget.

Before I

get into my comments, I just want to say I'm a bit dismayed by the revelation

from the Member next to me there. I thought if anything ever happened to me in

terms of first aid and safety, I would be safe because he was there. But 51 per

cent in that course, that's just not good enough. I don't know. I talked to some

other Members around, too. They're a bit shaken by the fact that his

qualifications aren't what we thought they were. Now, despite that fact, he was

an honours student, Mr. Speaker. We're a bit shaken here this morning by that

revelation.

I just

want to say a few words about the search and rescue tax credit. As well as the

Member for Stephenville - Port au Port, I also visited the

Stephenville-Kippens-Port au Port Search and Rescue centre in Stephenville and

talked to Mr. Gerry Clark. He's certainly someone who believes in what he does.

I had an

opportunity to look at the equipment they have there and to review some of the

training programs they have. I looked at some of the things they do and

discussed with him some of the operations that they've been involved in and how

they work with the RCMP and other first responders to emergency situations where

they've been called in.

Also,

the Bay of Islands search and rescue, which serves the northern part of my

district and the Barachois Search and Rescue, which serves the Bay St. George

South and that area of my district. I've seen their equipment and had an

opportunity to talk with some of their members about the work they do.

I'm very

supportive of these changes in the piece of legislation. I want to – as well as

the Minister of Finance did – make sure that the Member for Stephenville - Port

au Port gets credit for what he's done here in bringing this forward to the

bureaucracy to the minister and pushing this issue forward and seeing it through

to reality, Mr. Speaker. It's great to see this.

I also

want to say that I was very impressed last week, I think it was, to hear the

Member for Torngat Mountains talk about his own experience as someone who's been

involved in search and rescue in his area. To talk not only about the sacrifice

that it takes, the time and the dedication, but also the emotional involvement

in being involved in a search and rescue operation. I'm very impressed with his

comments on that last week I must say, Mr. Speaker. It gave me some insight into

the work that search and rescue people do and the importance of the service they

provide in this province.

I just

wanted to express my support for these changes and to say I will be supporting

this piece of legislation.

Thank

you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for Mount

Pearl - Southlands.

MR. LANE:

Thank you, Mr. Speaker.

I'm not

going to take very long. I did want to, for the record, just to endorse Bill 8,

An Act to Amend the Income Tax Act. I'm not going to repeat all that's been

said, but basically we all understand the great work of our volunteer

firefighters in our province and certainly, in addition to that, which this bill

addresses, the great work of our volunteer search and rescue personnel. They

don't do it for any remuneration. They do it because they want to help their

community, they want to help citizens, they want to do the right thing, as all

volunteers do.

I think

that when we look at things like volunteer firefighting, like search and rescue

it goes beyond what one could expect as, I'll say, normal volunteer work because

they're actually providing a critical service, something that we absolutely

need, a life-saving service. If they weren't stepping up to the plate to do it

then government really would have no choice but to have to fund this. This is

not something that we could possibly do without. It's not a nice-to-have; it's a

must-have. It's an essential service that they're providing.

To be

able to do something to recognize that in the form of a tax break, I think

that's a good way to acknowledge the very important work that they do, offer a

little bit of an incentive and, as I said, it's the right thing to do.

I will

be supporting the bill. Kudos to the government for bringing this forward.

Thank

you, Mr. Speaker.

MR. SPEAKER:

If the hon. the Minister of

Finance and President of Treasury Board speaks now, he will close debate.

The hon.

the Minister of Finance and President of Treasury Board.

MR. OSBORNE:

Thank you, Mr. Speaker.

I would

like to thank each of the Members of the Legislature today for speaking to this

bill. It is an important bill. I understand the Speaker himself was actually a

member of the Goose Bay search and rescue. As in Goose Bay, other areas of the

province as well where we have volunteer firefighters that don't meet the

200-hour threshold, this will actually assist some of those volunteer members if

they're also volunteering on search and rescue.

The

Member for Ferryland raised a question when he spoke about how many volunteer

firefighters. I'm seeking hat information and will get that to you.

For

certain, there are volunteer firefighters throughout the province that don't

meet the 200-hour threshold and are also search and rescue volunteers and, when

we combine the two of them, will reach the 200 hours that are required. So this

will not only assist search and rescue individuals, it will also assist some of

the volunteer firefighters to reach that 200-hour threshold as well.

Mr.

Speaker, I am delighted with the level of support throughout the Legislature for

this amendment to the legislation as it will help a number of volunteers

throughout the province who give such valuable time back to the province and to

the people of the province through search and rescue.

Thank

you.

MR. SPEAKER:

Is the House ready for the

question?

The

motion is that Bill 8 be now read a second time.

Is it

the pleasure of the House to adopt the motion?

All

those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

MR. SPEAKER:

All those against, 'nay.'

The

motion is carried.

CLERK (Murphy):

A bill,

An Act To Amend The

Income Tax Act, 2000. (Bill 8)

MR. SPEAKER:

This bill has now been read a

second time.

When

shall this bill be referred to a Committee of the Whole House?

MS. COADY:

Now.

MR. SPEAKER:

Now.

motion, a bill, “An Act To Amend The Income Tax Act, 2000,” read a second time,

ordered referred to a Committee of the Whole House presently, by leave. (Bill 8)

MR. SPEAKER:

The hon. the Deputy

Government House Leader.

MS. COADY:

Thank you, Mr. Speaker.

I moved,

seconded by the Minister of Finance and President of Treasury Board, that the

House resolve itself into a Committee of the Whole to consider Bill 7.

MR. SPEAKER:

It is moved and seconded that

I do now leave the –

MS. COADY:

Sorry, Bill 8.

MR. SPEAKER:

Bill 8.

It is

moved and seconded that I do now leave the Chair for the House to resolve itself

into a Committee of the Whole to consider the said bill.

Is it

the pleasure of the House to adopt the motion?

All

those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

MR. SPEAKER:

All those against, 'nay.'

The

motion is carried.

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

left the Chair.

Committee of the

Whole

CHAIR (Warr):

Order, please!

We are

now considering Bill 8,

An Act To Amend The Income Tax Act, 2000.

A bill,

“An Act To Amend The Income Tax Act, 2000.” (Bill 8)

CLERK:

Clause 1.

CHAIR:

Shall clause 1 carry?

The

Chair recognizes the hon. the Member for Ferryland.

MR. HUTCHINGS:

Thank you, Mr. Chair.

When

I spoke in second reading, I did propose a couple of questions in regard

to usage and the uptake on the current

volunteer fire brigades. The minister did indicate when he closed debate that

now, cumulatively, with the search and rescue one in reaching those 200 hours it

probably would reach a number of people. But he did indicate that he would get

those numbers in terms of what's been accessed now currently with volunteer

firefighters.

appreciate that. We look forward to seeing that information when he has it

available.

Thank

you.

CHAIR:

Shall the motion carry?

All

those in favour?

SOME HON. MEMBERS:

Aye.

CHAIR:

Those against?

Carried.

motion, clause 1 carried.

CLERK:

Clauses 2 to 7 inclusive.

CHAIR:

Clauses 2 to 7 inclusive.

Shall

the motion carry?

All

those in favour?

SOME HON. MEMBERS:

Aye.

CHAIR:

Those against?

Carried.

motion, clauses 2 through 7 carried.

CLERK:

Be it enacted by the

Lieutenant-Governor and House of Assembly in Legislative Session convened, as

follows.

CHAIR:

Shall the enacting clause

carry?

All

those in favour?

SOME HON. MEMBERS:

Aye.

CHAIR:

Those against?

Carried.

motion, enacting clause carried.

CLERK:

A bill,

An Act To Amend The

Income Tax Act, 2000.

CHAIR:

Shall the title carry?

All

those in favour?

SOME HON. MEMBERS:

Aye.

CHAIR:

Those against?

Carried.

motion, title carried.

CHAIR:

Shall I report the bill

without amendment?

All

those in favour?

SOME HON. MEMBERS:

Aye.

CHAIR:

Those against?

Carried.

Motion,

that the Committee report having passed the bill without amendment, carried.

CHAIR:

The hon. the Deputy House

Leader.

MS. COADY:

I move, Mr. Chair, that the

Committee rise and report Bill 8.

CHAIR:

The motion is that the

Committee rise and report Bill 8.

Shall

the motion carry?

All

those in favour?

SOME HON. MEMBERS:

Aye.

CHAIR:

Those against?

Carried.

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

Speaker returned to the Chair.

MR. SPEAKER (Trimper):

The hon. the Member for

Baie Verte - Green Bay and Chair of the Committee of the Whole.

MR. WARR:

Mr. Speaker, the Committee of

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

report Bill 8 without amendment.

MR. SPEAKER:

The Chair of the Committee of

the Whole reports that the Committee have considered the matters to them

referred and have directed him to report Bill 8 without amendment.

When

shall the report be received?

MS. COADY:

Now.

MR. SPEAKER:

Now.

When

shall the said bill be read a third time?

MS. COADY:

Tomorrow.

MR. SPEAKER:

Tomorrow.

motion, report received and adopted. Bill ordered read a third time on tomorrow.

MR. SPEAKER:

The hon. the Deputy

Government House Leader.

MS. COADY:

Thank you, Mr. Speaker.

Order 5,

second reading of Bill 7.

MR. SPEAKER:

The hon. the Minister of

Finance and President of Treasury Board.

MR. OSBORNE:

Thank you, Mr. Speaker.

Before,

I move and second this bill, just to provide an update to the Member for

Ferryland on Bill 8. I do have the information now. Approximately 5,000

volunteer firefighters availed of the tax credit in 2016. We don't have the 2017

numbers yet. There are about 1,000 search and rescue volunteers. So based on

both firefighters and search and rescue, there may be some additional

firefighters that would qualify based on the combining of ours as well.

apologize, Mr. Speaker, I know I am supposed to be moved and seconding Bill 7,

but I wanted to give that update.

MR. SPEAKER:

We're all about efficiency.

MR. OSBORNE:

I move, seconded by the

Minister of Natural Resources, that Bill 7,

An Act To Amend The Revenue

Administration Act, be now read a second time.

MR. SPEAKER:

It is moved and seconded that

Bill 7 entitled,

An Act To Amend The Revenue Administration Act, be now read a

second time.

Motion,

second reading of a bill, “An Act To Amend The Revenue Administration Act.”

(Bill 7)

MR. SPEAKER:

The hon. the Minister of

Finance and President of Treasury Board.

MR. OSBORNE:

Thank you, Mr. Speaker.

The

amendments in the Revenue Administration

Act relate to the health and post-secondary education tax; otherwise more

commonly referred to as the payroll tax. Mr. Speaker, this is a routine

amendment and in this year's budget, we did give a tax break to a number of

businesses in the province by increasing the threshold on the provincial payroll

tax or HAPSET from $1.2 million to $1.3 million. So essentially, what that means

is that anybody who was paying less than $1.2 million in payroll didn't have to

pay payroll tax.

We've

increased the threshold to $1.3 million, so anybody paying less than $1.3

million in payroll now does not have to pay the payroll tax. Anybody who was

between the $1.2 million and $1.3 million will be a savings of somewhere upwards

to $2,000 less tax that they would have to pay. Anybody with payroll above $1.3

million will save $2,000 in payroll or the tax on the HAPSET.

There

are 50 additional businesses that won't have to pay any payroll tax as a result

of this amendment and there is another, I think, 1,200 businesses throughout the

province that will get a $2,000 tax break or upwards to a $2,000 tax break.

So 75

per cent of the private sector employment in this province is by small business.

This is something, in consultation with the Board of Trade – the Board of Trade

had asked me to look at the other Members of our caucus who had received

feedback from the Board of Trade or from small businesses in their districts;

had asked for this amendment. We'd, obviously, like to see it higher.

What

I've committed to and the Premier and our government has committed to, Mr.

Speaker, is that this is the first step. As we're able to see that the province

is on a more sound fiscal footing, we'll see further changes to the payroll tax

as well as other taxes. We're committed to ensuring that we provide benefit to

small businesses in this province where we can do that.

One of

the other benefits that we've provided in this year's budget – which will help

not only every citizen in the province who owns a vehicle but will also help

businesses – are the changes to the automobile insurance. That change this year

will benefit small businesses as well and make it a little bit less expensive

compared to last year and the previous year on the insurance. It's not only the

payroll tax that will help small businesses this year; it is also the changes to

the insurance, Mr. Speaker.

When you

look at the number of people that are employed in small businesses in this

province, as I said, roughly 75 per cent of private enterprise employment is by

small business. They are the backbone of the provincial economy and they employ

a number of people. Whether it's a convenience store, Mr. Speaker, or a small

retail shop or a small engineering firm, whatever the case may be, small

business makes up the vast majority of private sector employment throughout the

province.

consultation with the St. John's Board of Trade, with chambers of commerce

throughout the province, we've made this change. There are a number of other

changes that we've made in this year's budget that will provide some benefit to

businesses as well, Mr. Speaker. Part of it is changes that we're looking at

making for private pension that small businesses have put in place and making

those changes. That was another recommendation brought to us by the Board of

Trade, as was the automobile insurance.

Mr.

Speaker, we are committed to making it easier for small business to operate in

this province. As we get our fiscal situation under control and continue towards

surplus in 2022-23, we'll continue to look at ways that we can not only make it

easier on small business but on people living in the province, and ease the tax

burden on people living in the province as well.

Mr.

Speaker, some of the other initiatives we've done in this year's budget that

focus on small business in the province is the five-year, $37 million Canadian

Agricultural Partnership, $14.8 million funding through the province. A number

of our farmers throughout the province are in fact small businesses, but the

employment they provide and the produce they provide, the food sustainability is

important to this province.

Part of

what we're looking at with that program, Mr. Speaker, the agricultural program,

is increasing the number of farms in the province and increasing the amount of

produce produced in the province to not only increase our food sustainability,

it'll create employment and get us back to – in the 1930s, 100 per cent of the

vegetables consumed in the province were produced in the province. It's now at

about 10 per cent.

You look

at the $10 million Atlantic Fisheries Fund and what that will leverage for small

business enterprise in this province. So we're proud of what we've been able to

do there and the partnership with the federal government.

You look

at the investment in tourism that is in this year's budget. The number of

employees that many small businesses throughout the province provide to people

in the province, the employees. It's 20,000 people employed now in the tourism

sector in this province and that is significant.

We're

looking at $600,000 invested in four regional Destination Management

Organizations to continue to help the tourism industry and to grow the tourism

industry and employ more people in Newfoundland and Labrador.

Last

year, Mr. Speaker, we increased the funding to the film and television industry

from $2 million to $4 million. We have $4 million invested in this year's budget

again. When you look at the fact that last year or the year before last, it was

a $40 million industry in this province. This year, it grew from $40 million to

$50 million in the last fiscal year in this province, employing 640 people. That

is actually quite significant; 640 people in film and television in this

province.

It's an

area where we're focused on continuing to grow that. Another example of small

business in the province but a large number of employees. Many people in the

province would be quite surprised to know that there are 640 people employed in

film and television in this province.

Mr.

Speaker, a key element of growing a strong and diversified economy is the $35

million that we've allocated in this year's budget to support economic

development, research and development and investment attraction. That's another

area where we're focused on trying to grow small business, diversify the economy

and create employment in this province.

While

oil and gas is very important – and I will not understate the importance of that

industry if you look at Advance 2030 ,

Mr. Speaker, and what we're doing there – we also need to focus on diversifying

the economy. While oil and gas revenues increase and we continue to grow the oil

and gas industry in the province and the number of employees, if we can get back

to the levels of production and the level of royalties from the oil and gas

industry, we can look at putting that into a legacy fund. We can look at paying

down the province's debt with that – because we've diversified the economy,

because we've given opportunity for the aquaculture industry to double the

number of employees, Mr. Speaker, which is what we're focused on. We're already

seeing the benefits of that.

You look

at the agriculture industry and the potential that the agriculture industry has.

If you look at the technology sector, Mr. Speaker, that's growing by leaps and

bounds. In fact, every person who graduates in this province from IT courses is

quickly gobbled up by the IT sector. We need to look at ways of increasing the

number of students that are going through IT programs in this province. That

industry is growing in this province and now employs 4,000 people in IT.

doesn't matter where you are in the world. You can be in St. John's,

Newfoundland, you can be in London, you can be in Toronto and you can be in New

York. You can operate an IT industry just as easily in St. John's as you can in

New York City. We're focused on growing that sector of the economy, Mr. Speaker.

Those

are the things we've done through The Way

Forward to diversify the economy, to strengthen the economy and to employ

more people so that as oil and gas and our strategy on 2030 continues to grow

and 7,500 people over the next 12 years – 7,500 additional people in the oil and

gas industry. We're also looking at creating employment opportunities within

small business in this province. We're focused on that and we will do what we

can. The payroll tax is one example of what we're doing to try to make it easier

for small businesses in this province to employ more people and to succeed.

You look

at the Cabinet Committee on Jobs and The

Way Forward , which is primarily driven by the Premier, Mr. Speaker, he is

absolutely dedicated to diversifying the economy and finding opportunities in

this province to ensure that our economy is strong in all regions of the

province. We're focused on a number of sectors throughout the province so that

all regions of the province benefit from the diversification of the economy and

creating other employment opportunities.

Mr.

Speaker, you look at the federal government's Ocean Supercluster initiative.

This province's Premier went to work and focused heavily on attracting that to

Atlantic Canada and we did. Newfoundland and Labrador will be the primary

beneficiary of the Ocean Supercluster. The technology sector, the IT sector,

will benefit as a result of the Ocean Supercluster sector brought to this

province and the Atlantic region.

Again,

we will be the primary beneficiary of that in this province. It's because of the

work of our Premier and the Cabinet Committee on Jobs, Mr. Speaker, in

attracting that Supercluster to this area. There will be more than 165

businesses in our advanced technology sector that will benefit from that. Right

now, that sector generates $1.6 billion in annual revenue in this province. That

will continue to grow, largely in part because of the Ocean Supercluster and the

benefits that will bring, but in large part because of our focus on the

technology sector and the opportunities that can bring to our province.

Mr.

Speaker, you look at the fish and seafood production in this province, it's

exceeded $1.3 billion in the last fiscal year. I believe that's the second year

in a row that it's exceeded $1.3 billion – that's the third year, sorry, that

it's exceeded $1 billion; it's up to $1.3 billion last year. That industry

employs 16,000 people in over 400 communities in our province.

That's

an area, a traditional industry, that goes back over 500 years in our province,

but it's an industry that, to a certain degree, we've lost focus on. We need to

refocus on that industry and the employment that it brings, especially to

smaller rural communities in our province. It's the very reason for our

existence in Newfoundland and Labrador. It was founded on the fishery. Our

government has been focused on growing that industry and creating additional

benefits through that industry.

Mr.

Speaker, you look at our infrastructure plan; $3 billion over five years. That's

4,900 full-time jobs annually as a result of the infrastructure program in this

province. That's one of the ways our province has turned the corner, continues

to turn the corner compared to what we saw in the province in December of 2015

or January of 2016. These things are happening. They've been happening

throughout the province. People are starting to see a greater sense of optimism

than they did in 2016. It's primarily because of the focus on diversifying the

economy and creating the benefits as a result of that.

You look

at the work that we've done with Husky Energy; $3 billion economic benefit to

the province over the life of the project and 5,000 person years of employment

as a result. That was primarily the Premier and the Minister of Natural

Resources working with Husky Energy to bring that project to reality in this

province. You look at the money invested in PAL Aerospace. One hundred and fifty

jobs already created as a result of an agreement that our province government

has reached with PAL Aerospace and the investment that our government has made

in that sector.

Aerospace is an area that our province should be focused on more heavily, and we

are. That's an area that we're looking at, Mr. Speaker, to expand. We have

companies in this province that are world leaders in aerospace that are working

globally right here from Newfoundland and Labrador. It's an area that I believe

our province can expand, that we can grow and we can strengthen that sector here

in Newfoundland and Labrador, and we will.

Mr.

Speaker, if you look at Canada Fluorspar. Again, the Minister of Natural

Resources and the Premier, the work they've done in that area; 3,000 person

years of employment and another 525 spinoff jobs as a result of that. It is the

dedication and hard work looking at areas throughout the province where we can

create opportunity for small business and we can grow the economy. That's what

we've been focused on.

I said

on budget day in this province that this province has a promising future. We're

dedicated, as a government, Mr. Speaker, of making it a more prosperous province

and we're starting to see the results of that work that this government has put

into doing it.

We'll

continue to see the results, Mr. Speaker. It's like a large luxury liner. You

don't turn it quickly, it turns very slowly. If you've ever seen a cruise ship

in St. John's Harbour turning around, it takes a long time to turn that around,

but we're starting to see the turnaround in this province. The province is in

much better shape today than it was two years ago. We're starting to see the

benefits and the results of the work that has been started by this government

and we continue to focus on it.

Mr.

Speaker, we take economic activity and supporting small business very seriously

in this province. The changes that we've made to the payroll tax are a

significant first step in reducing the payroll tax even further. The 50

businesses that no longer have to pay payroll tax as a result and the 1,200

businesses that will pay $2,000 less this year than they paid last year, while

that's a small amount – one would say $2,000 less in payroll tax – it is

actually significant. Because it's the commitment that we're making to small

businesses and the fact that we are committing that as we become more fiscally

sound in this province, we'll see further reductions to the payroll tax.

Thank

you, Mr. Speaker.

I'm

happy with and proud of the amendment that we're making here and how it will

help small businesses in our province.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Opposition House

Leader.

MR. HUTCHINGS:

Thank you, Mr. Speaker.

I'm

certainly pleased this morning to rise to speak to Bill 7,

An Act to Amend the

Revenue Administration Act. This deals with, specifically, payroll tax as it

relates to small business. Small businesses are a huge part of our free economy

when you look at all aspects of it. Well into the mid-90 per cent of business

activity is classified as small business.

This

deals with providing an exemption to those small businesses in regard to a

payroll tax and being exempt from paying this tax. Anytime, from a business

perspective, you're given an exemption, it allows that business to operate more

efficiently to look at free investment in their activities they carry out, or

sale of goods and services. It certainly looks at remuneration that's being

provided to their staff. It opens up a whole array of options with this tax and

others in regard to leaving more money for the small business leaders in

companies to make decisions related to how they operate their company.

I know

back in our time, in our administration, I think originally this was about

$500,000. I think incrementally over the years in various budgets, this was

increased and to allow these small businesses to be exempt from this tax. Again,

this year, in Budget 2018 , the current

government has moved the tax exemption as well to $1.2 million.

Now,

specifically, based on, I guess, companies and what they paid in the past, there

are, I think, approximately 50 additional companies will be exempt from paying

the tax. What's remaining out of those that pay the tax, 1,200 I believe is what

the number is, will pay up to $2,000 less in tax each year.

So the

minister talked about economic development, he talked about diversification, he

talked about Husky, he talked about tourism and small business and various other

aspects of the economy. So all of that collectively is tied into driving

activity, driving employment, driving investment, allowing business to expand,

allow new business to be created and that's all about economic activity, new

wealth and employing people, sustaining communities and regions. It's all

interrelated and this is just one component, an important component, but it is

necessary in regard to that incentive.

Now, the

minister talked about The Way Forward

plan, he talked about the Cabinet Committee on Jobs, I think he may have alluded

to some indicators in the economy. Some of the things we've seen over the past

couple of years with some of the challenges, we haven't seen a lot of those in

the right direction. It has to be comprehensive in terms of how we deal with

that environment and make that environment conducive to people who want to live

here from a personal income tax point of view and also from an income tax point

of view, from a corporate tax point of view and things like small business. So

it has to be comprehensive, it has to be to an environment that invites people

to want to stay here, have their families grow up here and have new people to

come into the employment realm.

talked about the public service, talked about – I think there's a number like

5,000 people who are coming out of the public service over the next number of

years. So how do we adapt to that? How do we make that through taxation and

through programs that we have, governments have? How do you incentivize people

to want to live here and be part of our region going forward or province? It's

important.

You look

at things like our demographics in terms of our population and the rate of aging

that causes concern. It's all tied back to that environment and things like this

and payroll tax and what that environment is like and how it allows investment

and supports it and drives it. Then, at the end of the day, makes sure our

economy is functioning and functioning well and doing what it needs to do.

There's

not a lot further I'm going to say on this bill, Mr. Speaker. It is in the right

direction. Government needs to do more of this. We hear a lot of terms like the

way forward, committee on jobs, all of these other things. We're doing this and

doing that, but the indicators to date doesn't show that we're getting the

return we need to get.

In a

small way, this is a step in the right direction. It is going to help, and I'd

certainly encourage you to do much more of this and be far more definitive in

terms of the direction we're taking and how we're getting there. I think that

will be to the benefit of all Newfoundlanders and Labradorians, not for this

generation but the next generation to come.

Thank

you, Mr. Speaker.

MR. SPEAKER:

The hon. the Member for St. John's East - Quidi Vidi.

MS. MICHAEL:

Thank you very much, Mr. Speaker.

Yes, I'm

happy to have the opportunity to also stand and speak to Bill 7, the amendment

to the Revenue Administration Act . An

important bill because, as the minister has pointed out, and also the Member for

Ferryland, by changing the exemption threshold for the payroll tax to $1,300,000

from $1,200,000, we are doing something that's really important for small

business. There's no doubt about that.

We're a

small province and so when we say that we now will have 50 more small businesses

who do not have to pay that payroll tax, I think that's important, and the fact

that there will be over 1,200 who will be saving $2,000, that's important too.

Two thousand is not a large amount but I suppose every bit helps. If it were an

individual who got the $2,000 break, I think that would be very, very

significant, but even for a small business, $2,000 less I'm sure is helpful.

I'm glad

about this. It's an important thing to do. I agree with the minister in that,

but I think it points to the need that we have to look at our taxation system. I

think this government has said that it wants to review our taxation system, but

I see no signs that they're doing that. We can't just be doing things in

piecemeal.

So while

this is something that is going to help, I think we need to look at our whole

taxation structure. We need to look at our income tax structure in particular.

We need to look at the corporate tax. Is our corporate tax where it should be? I

don't think so. I think we could have a higher corporate tax, getting at larger

corporations. Not the small business but larger corporations. So we do need to

look at where revenue can come in through our taxation system that isn't done on

the backs of individuals.

So, for

example, our consumer taxes have gone up under this government. We now have – in

the revenue from taxation – 30 per cent of the revenue is coming from consumer

tax. That's very problematic because that means that low-income individuals

really get hit when consumer taxes go up or new consumer taxes are put in place,

which has happened with this government.

So this

government doesn't mind giving $40 million –

MR. SPEAKER:

Ask the Member to please continue.

Thank

you.

MS. MICHAEL:

Thank you very much, Mr. Speaker. That was helpful.

That

this government continues to find major breaks for large corporations when it

comes to subsidization.

We just

had a perfect example with what's happened with Canopy Growth and the way in

which this government is not afraid to put huge amounts of money into larger

corporations.

So we

really do need to look at the whole of our taxation system. This government has

said they're going to review it. I don't see any signs of that happening. While

I'm very happy with this move – really pleased with it and happy to support this

bill – I think we have a larger issue when it comes to taxation revenue and who

is paying what, who is carrying the brunt and who is this government really

supporting.

It takes

little steps like this supporting small business, I would say they do an awful

lot more for the large corporate sector. I think this is something that does

need to be reviewed, but I am supporting this bill and will be happy to vote for

it.

Thank

you, Mr. Speaker.

MR. SPEAKER:

The hon. the Member for Cape St. Francis.

MR. K. PARSONS:

Thank you very much, Mr. Speaker.

I just

want to just speak a couple of minutes on this bill. It's a very important bill.

It's important to the small businesses in our province. It's a small change but

it's a change. The minister said it will save $2,000 to businesses that have

revenues of $1.3 million.

It's so

important, you know, and I know the minister was speaking about the positive

things, diversifying the economy and whatnot. Mr. Speaker I have the opportunity

in a lot of cases every day to speak to small business owners in our province,

and in my district alone there are a lot of people that are involved in the

housing industry. With the economy the way it is right now in Newfoundland and

Labrador, housing starts are down. I know they are in my district and they're

down overall.

A lot of

small businesses are finding it very, very difficult. While we're making these

small changes, people in general are being taxed so much because of this

government across the way that they have less to spend. When people have less to

spend the one people that are getting affected more so than large corporations –

your Walmarts and different industries like that – are the small business,

because people don't have the money to repair that roof, they don't have the

money to do the renovations on their houses, they don't have the money to build

new homes.

I'm

seeing it in my district big time, that small businesses have been really

affected by things like the levy which has taken money out of people's pockets.

People are really finding the tax increases and the HST, tax increases to

different business; people are really finding it difficult. The gas tax and

different taxes that this government across the way has brought in, the big

people they're really affecting are small businesses, and small business is

hurting.

While

people say over there on the other side – and they'll be complimentary, we're

doing this, we're diversifying – they should talk to small business owners

because I've talked to them in my district all the time. I've talked to

construction people that are telling me they don't know if they're going to hire

people this year because people are not building homes.

I've

talked to a roofing company only this weekend and normally what they do, they're

booked right solid, right on through the summer. It's a job to get them to do a

job even until September. This year, once he gets to July, he said I don't know

where the work is going to come from because housing starts are down so low.

What

people are telling me is that the effects – and this is all to do with small

businesses, and I'm sure it's in rural Newfoundland and it's in urban

Newfoundland, we see it everywhere – that people are not spending money like

they used to. People don't have the money that they had to spend. When that

happens, people don't spend money, the number one effect that has on people and

business, are small business owners.

We can

have all the big corporations we got, we can have the oil industry, we can have

mining industry, but the heart and soul of Newfoundland and Labrador are small

business. Small business is what's going to keep our economy going. It's going

to keep rural Newfoundland going. It's your corner shop, it's your roofing

companies, it's the people that are building houses, it's people that are –

paving driveway company, if you look at paving companies and stuff like this.

These taxes that that government across the way has introduced to people in this

province have hurt our economy so much. One group in the economy that it has

hurt more than anybody is small business.

I'm sure

every Member across the way can talk about different companies they've been

talking to and they're hurting. There are a lot of people in this province

hurting. We got to do our best to make sure that small business survive. They're

the key to all aspects of our society, whether it's rural or urban, and I think

we could be doing a whole lot more. While you get up and say we're doing a

little thing by increasing the threshold from $1.2 million to $1.3 million,

you've done an awful lot to hurt small business in this province.

Thank

you very much, Mr. Speaker.

MR. SPEAKER:

The hon. the Member for Mount

Pearl - Southlands.

MR. LANE:

Thank you, Mr. Speaker.

Once

again, I'm not going to take very long but I do want to, I guess for the record,

express my views on this bill. I certainly support the bill wholeheartedly.

As has

been said by, I think, all speakers, I think we all recognize the value of small

business and the contribution they make to our economy, to our communities,

whether it be through the provision of employment, payment of taxes and a lot of

the social good that businesses do in our communities. It's important that we do

what we can to support them. It's important that to do what we can to help them

prosper, help them grow and I really think this is a step in the right

direction.

I have

had conversations in the past and correspondence, emails and so on, as well as

face to face and telephone calls with – one person who comes to mind is Vaughn

Hammond with the Canadian Federation of Independent Business. One of the things

he has said on behalf of his members – and he has been quite clear – he said,

cut out all these big grants and so on to businesses and just focus on things

like reducing the payroll tax, eliminating the payroll tax and so on and put the

focus there and let business survive and thrive on its own without big

government handouts.

He has

said that he would prefer that that would be the route we would go, and I tend

to agree with him. Although, I understand there are some primary industries and

so on – and certainly if you're into some of our more rural areas that are so

dependent on particular operations to provide employment for the communities to

survive, I understand there will be times when government may have to step in.

general, when it comes to business, particularly big business, there have been

times when I've questioned whether they really needed taxpayers' money in order

to accomplish whatever it is they wanted to accomplish. I think they could've

done it on their own without that, and we could've taken that money and put it

into things like we're doing here today in terms of reducing, or eliminating for

that matter, the payroll tax for small business and let them survive and thrive

on their own.

With

that said, this is a good move and I will be supporting it 100 per cent. Once

again, two in a row, kudos to the government on another good move today.

Thank

you Mr. Speaker.

MR. SPEAKER:

If the hon. the Minister of Finance and President of Treasury Board speaks now

he will close debate.

The hon.

the Minister of Finance and President of Treasury Board.

MR. OSBORNE:

Thank you Mr. Speaker.

I thank

all Members for their contribution to the debate here today. I will take

exception to some of the comments made by the Member for Cape St. Francis.

Mr.

Speaker, I will say here in this Legislature today that when the baton was

passed from the former administration to this administration, one of the things

we couldn't talk about at that time because the economy would've absolutely

crashed. Now that administration knew it. That administration knew, Mr. Speaker,

the situation fiscally that the province was in.

They

didn't provide a mid-year update, which is traditional in this province, because

they were heading into an election and they didn't want to tell the people of

the province what a mess they made. They wouldn't provide a mid-year update. We

called for a mid-year update. They told the people of the province there was a

$1.1 billion deficit – $1.1 billion deficit. When we formed government in

December of 2015 we found out it was $2.7 billion. Almost three times what they

said it was – $2.7 billion deficit.

We were

told, Mr. Speaker, within 48 hours of the new Premier taking office. So nobody

can tell me they didn't know if it was that urgent that the Department of

Finance officials had to inform the new Premier within 48 hours that if they

didn't do an emergency release of Treasury bills the province wouldn't have been

able to make payroll. Now nobody can tell me they didn't know that, but they

wouldn't tell the public.

They'll

stand over there and say, you shouldn't have raised taxes. You shouldn't have

done this. You shouldn't have prevented the bond-rating agencies from putting

the clamps on it, Mr. Speaker, because we would've loved to have been able to

see that, is what they'll say.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

But, Mr. Speaker, the reality is the bond rating agencies very quickly told this

province, the new government, that drastic measures had to be taken. Nobody in

this province, nobody in this House – nobody on this side of the House – likes

the tax measures that were put in place in 2016.

But if

we didn't do it to eliminate the $2.7-billion deficit that they figured they

didn't have to tell the people of the province existed, or the fact that the

province wouldn't have been able to make payroll – if we didn't address those

issues immediately, the bond rating agencies would have stepped in and taken

drastic action, Mr. Speaker. The lending agencies would have cut us off. There

was a choice that had to be made. If it was a popularity contest, nobody would

have put taxes in place, but we had to address a very real and very drastic

situation.

Mr.

Speaker, when I became Minister of Finance I committed to the people of this

province that I was going to take a balanced approach and I believe I have.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

I believe I have, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

As the province becomes more

fiscally comfortable, as we start to move closer toward surplus, we will reduce

the financial burden, the tax burden on the people of the province. That has

started, Mr. Speaker. We are reducing taxes as we can afford to do so.

We've

brought it from a $2.7-billion deficit that the people opposite left in place,

Mr. Speaker, down to less than a billion dollars this year. We are headed in the

right direction but we understand, and we understand from the bond rating

agencies and from the lending agencies, that borrowing – now, I'm going to go

back a step a second before I complete that sentence.

When we

took office in December of 2015, just to service the deficit, Mr. Speaker, the

province was borrowing on average $4.38 million a day – a day. They didn't think

that was appropriate to tell the people of the province. We've gotten that down

to about $2 million a day today.

The bond

rating agencies and the lending agencies tell us it's still not sustainable, but

it's much better than what they left the people of the province. Am I proud of

the taxes that were put in place? Absolutely not, but I can tell you they were

absolutely necessary, Mr. Speaker.

You look

at the employment numbers that we have today, they're comparable to 2011. In

2011 this province was saying they were historically high. Are they as good as

they were in 2015? No, but we had three megaprojects in 2015, Mr. Speaker. As we

come off those megaprojects, we see a contraction in the employment numbers in

this province. We see a contraction in the employment numbers in this province

because of the fact that we're coming off those megaprojects.

The

payroll tax announcement that we've made here, Mr. Speaker, will help small

businesses. The measures that we've put in place to diversify the economy is

putting the province back in the right direction. While the former government

focused solely on the oil industry, they forgot the rest of the economy.

Things

were going so well with the oil industry they just expected that would continue

forever. They budgeted $120 a barrel of oil, Mr. Speaker. That wasn't the

reality. In their 2015 budget they budgeted that oil was going to continue to

grow by $8 a barrel per year. That, we know, didn't happen.

In their

own Estimates book in 2015 they projected that employment numbers were going to

decline and unemployment numbers were going to increase. Mr. Speaker, they also

clouded those numbers by saying that Alderon was going to be our reality and Bay

du Nord was going to be a reality. It was going to start in 2015. We were going

to start seeing huge employment increases again in 2016 as a result of those two

projects. But those things didn't happen.

They

projected $6.8 billion in capital investment as a result of those projects and

12,000 jobs, Mr. Speaker. If you factor out the 12,000 jobs they were promising,

and factor in the fact they were projecting employment numbers decreasing and

unemployment numbers increasing – we're way ahead of what they projected if you

factor in the 12,000 jobs.

Let's be

honest, Mr. Speaker, when we say there was a very difficult reality this

province had to deal with in December of 2016, in the budget of 2016, nobody

wanted those tax measures but they were absolutely necessary. As we are able to

reduce taxes in this province, we will do it. We're going to do it by

diversifying the economy, by making the economy stronger, by growing jobs in

this province, by focusing on the economy, growing jobs and reducing taxes as

we're able to do it.

SOME HON. MEMBERS:

Hear, hear!

MR. OSBORNE:

I support this bill, Mr. Speaker, because it is good for small business.

Thank

you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

Is the House ready for the

question?

The

motion is that Bill 7 be now read a second time.

Is it

the pleasure of the House to adopt the motion?

All

those in favour?

SOME HON. MEMBERS:

Aye.

MR. SPEAKER:

All those against?

This

motion is carried.

CLERK (Barnes):

A bill,

An Act To Amend The

Revenue Administration Act. (Bill 7)

MR. SPEAKER:

This bill has now been read a

second time.

When

shall the bill be referred to a Committee of the Whole House?

MS. COADY:

Now.

MR. SPEAKER:

Now.

motion, a bill, “An Act To Amend The Revenue Administration Act,” read a second

time, ordered referred to a Committee of the Whole House presently, by leave.

(Bill 7)

MR. SPEAKER:

The hon. the Deputy

Government House Leader.

MS. COADY:

Thank you, Mr. Speaker.

I move,

seconded by the Minister of Finance and President of Treasury Board, that the

House resolve itself into a Committee of the Whole to consider Bill 7.

MR. SPEAKER:

It is moved and seconded that

I do now leave the Chair for the House to resolve itself a Committee of the

Whole to consider the said bill.

Is it

the pleasure of the House to adopt the motion?

All

those in favour?

SOME HON. MEMBERS:

Aye.

MR. SPEAKER:

All those against?

The

motion is carried.

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

left the Chair.

Committee of the

Whole

CHAIR (Warr):

Order, please!

We are

now considering Bill 7,

An Act To Amend The Revenue Administration Act.

A bill,

“An Act To Amend The Revenue Administration Act.” (Bill 7)

CLERK:

Clause 1.

CHAIR:

Shall clause 1 carry?

All

those in favour?

SOME HON. MEMBERS:

Aye.

CHAIR:

Those against?

Carried.

motion, clause 1 carried.

CLERK:

Clause 2.

CHAIR:

Clause 2.

Shall

clause 2 carry?

All

those in favour?

SOME HON. MEMBERS:

Aye.

CHAIR:

Those against?

Carried.

motion, clause 2 carried.

CLERK:

Be it enacted by the

Lieutenant-Governor and House of Assembly in Legislative Session convened, as

follows.

CHAIR:

Shall the enacting clause

carry?

All

those in favour?

SOME HON. MEMBERS:

Aye.

CHAIR:

Those against?

Carried.

motion, enacting clause carried.

CLERK:

An Act To Amend The Revenue

Administration Act.

CHAIR:

Shall the title carry?

All

those in favour?

SOME HON. MEMBERS:

Aye.

CHAIR:

Those against?

Carried.

motion, title carried.

CHAIR:

Shall I report the bill

without amendment?

All

those in favour?

SOME HON. MEMBERS:

Aye.

CHAIR:

Those against?

Carried.

Motion,

that the Committee report having passed the bill without amendment, carried.

CHAIR:

The hon. the Deputy

Government House Leader.

MS. COADY:

Thank you, Mr. Chair.

I move

that the Committee rise and report Bill 7.

CHAIR:

The motion is that the

Committee rise and report Bill 7.

Shall

the motion carry?

All

those in favour?

SOME HON. MEMBERS:

Aye.

CHAIR:

Those against?

Carried.

motion, that the Committee rise and report Bill 7 carried without amendment, the

Speaker returned to the Chair.

MR. SPEAKER (Trimper):

The hon. the Member for

Baie Verte - Green Bay and Chair of the Committee of the Whole.

MR.

WARR:

Mr.

Speaker, the Committee of the Whole have considered the matters to them referred

and have directed me to report Bill 7 without amendment.

MR.

SPEAKER:

The

Chair of the Committee of the Whole reports that the Committee have considered

the matters to them referred and have directed him to report Bill 7 without

amendment.

When shall the report be received?

MS.

COADY:

Now.

MR.

SPEAKER:

Now.

When shall the said bill be read a third time?

MS.

COADY:

Tomorrow.

MR.

SPEAKER:

Tomorrow.

On motion, report received and adopted. Bill ordered

read a third time on tomorrow.

MR.

SPEAKER:

The

hon. the Deputy Government House Leader.

MS.

COADY:

call from Orders of the Day, Order 2, Committee of Supply.

MR.

SPEAKER:

The

hon. the Deputy Government House Leader.

MS.

COADY:

Thank you, Mr. Speaker.

I move, seconded by the Minister of Finance and

President of Treasury Board, that the House do now resolve itself into a

Committee of Supply to consider the Estimates of the Legislature.

Thank you, Mr. Speaker.

MR.

SPEAKER:

is moved and seconded that I do now leave the Chair for the House to resolve

itself into a Committee to review the Estimates of Supply.

All those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

MR.

SPEAKER:

All

those against, 'nay.'

The motion is carried.

On motion, that the House resolve itself into a

Committee of the Whole, the Speaker left the Chair.

Committee of the

Whole

CHAIR (Warr):

Order, please!

We are

now considering the Estimates of the Legislature.

CLERK:

Subhead 1.1.01.

CHAIR:

Subhead 1.1.01.

Shall it

carry?

All

those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

CHAIR:

All those against, 'nay.'

Carried.

motion, subhead 1.1.01 carried.

CLERK:

Subhead 1.1.02.

CHAIR:

Subhead 1.1.02.

Shall it

carry?

All

those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

CHAIR:

All those against, 'nay.'

The

Chair recognizes the hon. the Member for St. John's East - Quidi Vidi.

MS. MICHAEL:

Thank you very much, Mr.

Chair.

I want

to use this opportunity to make a few more points with regard to the situation

in this province. The Committee of the Whole being part of our budget

discussions here I think, I can do that.

Of all

the things that I've said over the past few weeks, one issue that I haven't

spoken to is one that nags at me and I want to raise it. That is the situation,

not all over the place, but many situations that we have with regard to some of

our elderly people, in particular, who are in care, extended care.

I have

in my office right now at least four files of families who have come to me about

the situation of their loved ones. A couple of them relate to the Pleasantview –

I forget what it's called, but the new facility, relatively new now in

Pleasantville. Some refer to smaller situations in different parts of the

province. I think all of them are related to situations here under Eastern

Health and some in the Clarenville area.

It's

really frustrating for the relatives, the families of these people who are in

situations that aren't meeting their needs – not because of the workers, but

because there aren't enough workers, because there aren't enough people in care

to take care of them.

Now, I

have experience and heard of some situations in smaller places where people are

very happy, and where their needs are being met and where they're not falling

between the cracks. But we have a lot of situations where people do fall between

the cracks. It's one case in particular that I keep talking to the family about.

It's a case – and I have probably two cases like this – where the loved one, a

parent or an elderly brother or a spouse, is in a facility being taken care of,

gets sick, has to move into the hospital to be taken care of there. What I'm

getting from people is the lack of communication between the different parts of

the system, not the best decisions being made, the situation of the person not

really being seen as it should be seen, and people falling between the cracks.

They

really feel there's no place that they can go with their complaints. Some of

them, you know, have written the CEOs of agencies. Some of them have documented

things that they're really concerned about. Some of them have gone to the

Citizens' Representative. They really feel that they're stymied. There's no

place to go.

I think

we really do have a need for a review of the long-term care in this province.

The facility in Pleasantville – I have no idea how that building could've gotten

built the way that it is. It's a building in which I don't know if anybody is

happy. I hate going into it. The very building itself doesn't build up a sense

of people being taken care of.

Again,

I'm not talking about the workers. I'm talking about the system. I'm talking

about not having enough workers, not having in some cases enough nurses on night

duty in some of our long-term care facilities. We have a lot of things not going

right in our long-term care facilities.

We have a lot of things not going right in our long-term care facilities

and it really bothers me. I feel helpless as an MHA when people come to me. Some

of them say: Yes, the facility has meetings, family meetings once a month. I go

to the meetings, I raise the same issues and I get nowhere. I have documentation

from family members of the things that have happened; a loved one, probably a

parent, being in bed for hours before being even taken care of for the day.

It's multiple and I just really feel – I would be remiss in not bringing

this issue, in the context of budget discussion, to the floor of the House

because I cannot be the only MHA who's getting these phone calls and these

letters and these emails. I can't be the only one. I know I'm not the only one

because, in some cases, I'm getting them from people outside of my district who

are frustrated because they've tried to communicate within their district and

the government MHA, maybe, is not paying attention to them. So they finally, in

frustration, will come to somebody like me – because I had a profile as the

health critic – so they come hoping that I'm going to be able to help them. I

can't help them. I can try. I can bring their concerns forward. I do that, but

we really do have a problem in our long-term care in this province.

I keep saying it's not everywhere. I know that some facilities are

wonderful, but we do have a problem. I don't think that agencies are working

together, the different departments are working together to really ensure that

people's needs are being met.

I don't see the government listening to things like the Nurses' Union

with regard to the role of RNs in long-term care. I just don't see them paying

attention to the issues that are there. It's a major issue and, like I said, I

can't believe that I'm the only MHA who has people coming complaining about our

long-term care in this province.

I'm not going to beat this to death. I'm making my point. I really felt I

had to stand and make this point because it is such a major concern to me. I'm

glad that I've done it. I know nobody right here at this moment is going to do

anything about this for me, but I'm going to continue talking about this because

it's rampant, because there's too much of it there.

Yes, we have good places, we have people being taken care of but we have

other situations where people are not being taken care of. They're lonely.

They're in their beds without people paying too much attention to them, simply

because there are not enough staff to give the kind of personal care that is

needed, and it is that personal care.

I'm aware of somebody, I met this person, she's now dead but she couldn't

see, had very bad hearing and was put in the lockdown unit because nobody knew

what to do with her. It wasn't the place where she should have been. She had no

social communication – very little, I won't say no – very, very little social

communication.

The

assessment that was done was a wrong assessment. She was not a person who should

have been in that situation, but she had no family here to voice for her,

somebody like me. I had a relative, I used to visit her; she wasn't a next of

kin. There was nothing that could be done and the thing is that it's not the

fault of the workers. It's the fault that we do not have adequate staffing of

many of – well, of our public facilities. I mean these are the ones that I'm

talking about.

We do

have a problem. We need a review of what's happening at Pleasant View. We

absolutely need a review of what's going on over there. Probably having said

this now publicly, will put this in writing to the Minister of Health and

Community Services because I think it's a direction in which we're going to have

to go.

Thank

you very much, Mr. Chair.

CHAIR:

Shall the motion carry?

All

those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

CHAIR:

All those against, 'nay.'

Carried.

CLERK:

Subheads 1.1.03 through

7.1.01.

CHAIR:

Shall 1.1.03 to

7.1.01inclusive carry?

All

those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

CHAIR:

All those against, 'nay.'

Carried.

motion, subheads 1.1.03 through 7.1.01 carried.

CLERK:

The total.

CHAIR:

Shall the total carry?

All

those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

CHAIR:

All those against, 'nay.'

Carried.

motion, Legislature, total heads, carried.

CHAIR:

Shall I report the Estimates

of the Legislature carried without amendment?

All

those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

CHAIR:

All those against, 'nay.'

Carried.

motion, Estimates of the Legislature carried without amendment.

CHAIR:

The hon. the Deputy

Government House Leader.

MS. COADY:

I move that the Committee rise and report having passed without amendment the

Estimates of the Legislature.

CHAIR:

It is moved that the

Committee rise and report the Estimates of the Legislature.

All

those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

CHAIR:

All those against, 'nay.'

Carried.

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

Speaker returned to the Chair.

MR. SPEAKER (Trimper):

The hon. the Member for

Baie Verte - Green Bay and Chair of Committee of Supply.

MR. WARR:

Mr. Speaker, the Committee of

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

report that they have passed without amendment the Estimates of the Legislature.

MR. SPEAKER:

The Chair of the Committee of

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

and have directed him to report that they have passed without amendment the

Estimates of the Legislature.

When

shall the report be received?

MS. COADY:

Now.

MR. SPEAKER:

Now.

motion, report received and adopted.

MR. SPEAKER:

The hon. the Deputy

Government House Leader.

MS. COADY:

Thank you, Mr. Speaker.

Considering the hour, I move, seconded by the Minister of Finance and President

of Treasury Board, that we adjourn until 2 o'clock.

MR. SPEAKER:

It is moved and seconded that

this House do now adjourn until 2 o'clock.

Is it

the pleasure of the House to adopt the motion?

All

those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

MR. SPEAKER:

All those against, 'nay.'

This

House stands in recess until 2 o'clock this afternoon.

Thank

you.

Recess

The House resumed at 2 p.m.

MR. SPEAKER (Trimper):

Order, please!

Admit strangers.

I'd like to welcome the Members back after recess. I'd

also like to welcome several visitors that we have in our galleries.

First of all, in the Speaker's gallery today I'd like

to welcome representatives from the Combined Councils of Labrador, an

organization that has been around for more than 40 years. With us today we have

the president from L'Anse au Loup, Mayor Trent O'Brien; the treasurer from

L'Anse-au-Clair, the mayor, Mr. Chad Letto; from the Labrador Straits, the

vice-president from Forteau, he's the mayor, Mr. Jim Roberts; from Southeast

Labrador, the vice-president, he's a Mary's Harbour councillor, Mr. Harold

Rumbolt; for the Central Labrador vice-president, Happy Valley-Goose Bay mayor,

Mr. Wally Andersen, a former MHA of the House; Labrador North vice-president,

Makkovik councillor, Elizabeth Evans-Mitchell; and the executive director of the

Combined Councils of Labrador, Ms. Margaret Rumbolt.

A very great welcome to you.

SOME HON. MEMBERS:

Hear, hear!

MR.

SPEAKER:

I say, we have various mediums through which people are able to watch us. Today,

watching through our broadcast, I'd like to send special greetings to Mrs.

Marsha Alexander's grade seven class from Lourdes Elementary on the Port au Port

Peninsula. They are tuning into our broadcast today and are the subject of a

Member's statement this afternoon.

A great welcome to you.

SOME HON. MEMBERS:

Hear, hear!

Statements by Members

MR.

SPEAKER:

Today for Members' statements we will hear from the hon. Members for the

Districts of Exploits, St. George's - Humber, Stephenville - Port au Port, Burin

- Grand Bank and Terra Nova.

The hon. the Member for Exploits.

SOME HON. MEMBERS:

Hear, hear!

MR.

DEAN:

Thank you, Mr. Speaker.

I rise today in this hon. House to congratulate the Trinity

United Church of Botwood on their October 16, 2016, celebration of 90 years of

good works in the community.

I had the pleasure of celebrating this milestone with the

congregation, town leadership and friends from far and near at what was a

memorable day of worship and the breaking of bread.

For 90 years, the Trinity United Church has been

ministering and providing spiritual guidance to the community of Botwood. Mr.

Speaker, on a personal note, this is the church that, as a youth, I attended

many activities throughout the years and it's the church that I have the

pleasure of being greeted by each and every morning.

Mr. Speaker, I ask all hon. Members to join with me in

wishing the Trinity United Church congratulations on these 90-plus years, and

Godspeed on their continued march to a centenarian celebration.

Thank you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER: The

hon. Member for St. George's - Humber.

MR. REID: Mr.

Speaker, I rise today to pay tribute to a group of dedicated volunteers on the

Southwest Coast of the province who are combining their love of the outdoors

with a respect for fallen soldiers.

Colin and Cindy Seymour, along with other volunteers in the

area, are ready to place 158 yellow ribbons – one for each Canadian soldier who

lost their life in the war in Afghanistan – along the hiking trail leading to

Mark Rock mountain just outside South Branch. There is a monument honouring Sgt.

Craig Gillam of that community. Gillam died in Afghanistan on October 3, 2006.

He was 40 years old.

Members of the Gillam family say they are honoured by the

dedication being put into the hiking trail up to Mark Rock. Knowing that people

still remember and care about the soldiers who paid the ultimate sacrifice is

truly touching.

I ask all Members of this House to join with me in showing

their appreciation and dedication to this group of volunteers.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER: The

hon. Member for the District of Stephenville - Port au Port.

MR. FINN: Mr.

Speaker, our children will eventually be our future leaders and as such,

preparing them for this inevitability requires education and training in

leadership roles. In a recent visit to Lourdes Elementary on the Port au Port

Peninsula, I saw first-hand how valuable this practice can be.

Mrs. Marsha Alexander's grade seven social studies class

has undertaken a practical learning exercise in which the classroom has become a

mini replica of our House of Assembly. With only 13 students, the ad hoc House

of Assembly required some minor tweaking that is unable

to include all electoral

districts; however, this has only encouraged the students to engage in much

broader debates.

Interestingly, in this classroom, the student who plays the Member for

Stephenville - Port au Port, Katie Gastia, also happens to be the minister of

Transportation and Works and, conveniently, the premier happens to represent my

neighbouring district in St. George's - Humber.

Hats off

to Mrs. Marsha Alexander for taking a unique approach to teaching our children

about our political system while inspiring these leaders of tomorrow. Also, a

sincere thank you to her students and school principal, Ms. Alison Marche, for

inviting me to their school.

Thank

you. Enjoy the broadcast.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for the

District of Burin - Grand Bank.

MS. HALEY:

Thank you, Mr. Speaker.

Mr.

Speaker, during the fall sitting of the House, new laws were passed to help curb

impaired driving. Amongst those advocating for changes were various chapters of

Mothers Against Drunk Driving in the province, including the Burin Peninsula

chapter.

MADD

Burin Peninsula does not confine its activities to lobbying decision makers.

Rather, it is very proactive in tackling the social problem of drunk driving.

Recently, it again demonstrated that proactive approach when it brought together

students from across the Burin Peninsula at the Fortune Arena.

As it

did three years ago in Marystown, MADD Burin Peninsula held a mock crash, an

event where various stakeholders, such as first responders, the RCMP and local

performers, came together to present a realistic scenario of a vehicle accident

with horrific results, Mr. Speaker.

Laws to

deal with impaired driving are important, but it's MADD's belief that education

is also vital in driving home that message. In this case, education came from a

very realistic and moving presentation, Mr. Speaker.

I call

on all Members of this hon. House to join me in thanking the many participants

who joined forces to make this event possible.

Thank

you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for the

District of Terra Nova.

MR. HOLLOWAY:

Thank you, Mr. Speaker.

Mr.

Speaker, I rise today in this hon. House to recognize the efforts of a community

charity in my district.

Since

its inception in 2013, the Power to Hope charity has raised funds in support of

cancer-related programs and events a