March 30, 2006 HOUSE OF ASSEMBLY

PROCEEDINGS Vol. XLV No. 5

The House met at 2:00 p.m.

MR. SPEAKER (Hodder): Order, please!

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

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Thank you, Mr. Speaker.

And I have not even begun.

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

general the budgetary policy of the government.

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

budgetary policy of the government.

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

MR. SULLIVAN: Thank you, Mr. Speaker.

INTRODUCTION

The Right Choices: Momentum for Growth and Prosperity

Mr. Speaker, in 2003, our government was elected under the leadership of

Premier Danny Williams to implement a comprehensive and far-reaching blueprint

for economic and social development. On the second anniversary of our first

budget, I am delighted to report that our economy is moving forward and the

momentum is greater now than it has ever been. But rather than become

complacent, our government believes now is the time to drive our economy even

harder in order to reap even greater returns. Budget 2006 supports that

fundamental belief.

Our change of circumstances is not the product of fate or chance. It is the

result of responsible governing, careful planning and a great deal of

co-operation and hard work. Our government entered office having inherited

fiscal challenges that were clearly troubling and unsustainable. And though the

future to some may have looked bleak, we had a vision of a stronger,

sustainable, self-reliant Newfoundland and Labrador; and we also had a plan, an

eight-year blueprint for prosperity to make our bold vision for this Province a

bright reality. We entered into a partnership with the people of Newfoundland

and Labrador and with our public employees to focus our strengths on developing

strategies that would help us seize opportunities - opportunities that hold the

promise of a new era of progress in Newfoundland and Labrador. Everything we

have done in the past two years and everything we do in the years ahead in

putting our plan into action is focused on laying a solid foundation on which we

will build a future of growth and prosperity that touches every region of our

Province.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Newfoundland and Labrador is on the right track; we are

more confident today than we have ever been; and we are sensing the momentum of

progress as our destination comes more clearly into focus with each passing day.

I want to thank our public employees and the people of our Province for

working with us to build a stronger, more sustainable Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: The tremendous fiscal progress we have made together is

among our greatest achievements. Together, we stood proudly behind our Premier

when he fought for and achieved a tremendous victory on the sharing of the

offshore resources under the Atlantic Accord.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: That victory, together with our other fiscal achievements

in just the past two years, has strengthened the tools with which we are working

to build a vibrant and self-reliant economy. With these tools in hand, we are

strengthening our resolve to use them strategically, in the most effective ways

we possibly can, so our efforts reinforce the foundation on which we are

building and make Newfoundland and Labrador's economy robust and resilient.

FISCAL FRAMEWORK

Review of 2005-06

Mr. Speaker, before considering our detailed fiscal plans and expectations

for 2006-07 and beyond, let us reflect on the year we are about to conclude.

A year ago, in Budget 2005, I laid before this House a plan which forecast a

deficit of $492.5 million. Mr. Speaker, I am pleased to report today that I now

expect this Province will report a surplus of $76.5 million for the fiscal year

2005-06.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This represents an improvement of $569.0 million. This

surplus reflects a benefit from the Atlantic Accord 2005 of $322.3 million.

Without the successful conclusion of negotiations by the Premier, the Province

would be facing a deficit this current year of almost $250 million.

This surplus is fully consolidated and, as such, includes the projections of

each and every organization included in the government's reporting entity.

During the 2005-06 fiscal year, our government made a decision to include the

operations of Memorial University as part of the consolidated group, the last

organization needed to complete the full consolidation process. These revised

projections now fully report on the government's stewardship of taxpayers'

money.

The improvement in financial position from budget is predominately the result

of increased revenues. The increase results from rising oil prices and the

reclassification of the 2004-05 Atlantic Accord revenues to 2005-06. Of the

$545.6 million increase in revenues, $367.2 million is directly attributable to

oil revenues and $133.6 million is due to the accounting reclassification of the

Atlantic Accord. Because of responsible fiscal management, expenditures have

generally remained on track with the budget.

Forecast for 2006-07 and Beyond

Mr Speaker, I am pleased to report that for the first time in our history the

province is budgeting a surplus on a fully consolidated basis.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: The expected surplus of $6.2 million reflects revenues from

our strengthened economy, including a growing resource sector, the benefits of

the Atlantic Accord, reduced expenses related to debt servicing and the impact

of the recent health accords and equalization arrangements, and includes

substantial investments in the social and economic fabric of the province.

Beyond 2006-07, the benefits of a strong economy, the Atlantic Accord and

strategic investments indicate surpluses in the foreseeable future.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We are particularly pleased that, as a result of

responsible budgetary decision making, we will this year be allocating a

significantly smaller percentage of our resources to service our debt, and our

debt burden as a percentage of the province's economic activity is

significantly reduced. The province's debt servicing expense as a percent of

total revenues is now 13.7 per cent, a reduction from 23.3 per cent in 2003-04.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Our debt-to-GDP ratio is expected to be 47.9 per cent, a

reduction from 63.4 per cent in just three years.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, this is marvelous news and a testament to the

effectiveness of multi-year fiscal planning. These positive indicators clearly

demonstrate that, by continuing to walk a responsible fiscal path, we are

leading Newfoundland and Labrador steadily upward from the quagmire of debt that

has been holding us back for so long from economic sustainability and

self-reliance. We are on the right track, we are making tremendous progress, and

we are prepared to stay the course.

SOME HON. MEMBERS: Hear, hear!

BUDGET PLAN FOR 2006-07

Revenue Plan

MR. SULLIVAN: Mr. Speaker, the contribution of the oil industry to the

provincial economy and the treasury has changed dramatically over the past five

years. The oil sector now contributes approximately 16 per cent to provincial

GDP and about 18 per cent to provincial revenues. This compares to a

contribution in 2002-03 of 7.8 per cent to GDP and 3 per cent to revenues.

In 2006-07, the Province is expecting to generate royalties from oil

production of $703 million and corporate income tax from companies operating in

the offshore area of $224 million. This represents direct revenue from offshore

oil of $927 million in this year alone. This forecast assumes the average price

per barrel of oil will be $US57. Added to this amount is the benefit accruing to

the people of the province from the Atlantic Accord arrangements which will

contribute an additional $329 million in 2006-07.

As a benefit of our actions and successes of the past year, we are now in a

position to announce that there are no new taxes and, with one exception, no tax

rate increases in this year's budget.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Our primary reason for implementing this solitary tax

increase is not to raise new revenue, but to discourage our people from smoking,

particularly our province's young people, whose spending decisions tend to be

more price-sensitive. Effective a minute after midnight tonight, we will raise

the tax rate by one cent per cigarette and by five cents per gram of fine-cut

tobacco.

A critical element of a competitive economy is its taxation regime. This

Province has been forced to impose a tax burden on its residents that is high in

relation to other jurisdictions. Over the coming fiscal year, our government

will undertake a review of the province's overall tax structure. The

government will also give consideration to whether it will mirror federal

changes to the dividend tax credit, once details are released by the federal

government. This will be done in conjunction with a review of the potential

impacts of income trusts on corporate income tax.

Expenditure Plan

Mr. Speaker, we are delighted that, as a result of hard work over the past

two years, we are no longer in the position of requiring significant additional

revenues from Newfoundlanders and Labradorians. But having made significant

fiscal progress and having secured significant new revenues through the Atlantic

Accord and other initiatives, we would be fooling ourselves and undermining our

future if we were to lose sight now of the purpose for which we sought fiscal

stability in the first place. Newfoundland and Labrador continues to carry a

heavy burden of net debt - in total, about $12 billion - more than $23,000 for

every person in our Province, from the oldest to the very youngest. Servicing

that debt each year draws hundreds of millions of dollars away from resources we

might otherwise use to strengthen our social programs and grow our economy. The

government is obligated to cover liabilities in various pension plans which

previous administrations over the years raided to cover their own expenses. We

are the future generations that have inherited the consequences of those

decisions. We will not burden our grandchildren with the consequences of our

own.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: But we also recognize that there is more to growing an

economy than simply reducing the debt. Newfoundland and Labrador also has a

significant infrastructure deficit caused by years of neglect to our roads, our

ferries, our hospitals, schools and other public buildings. Reliable

infrastructure is essential to attract investment, to capitalize on opportunity

and stimulate sustainable economic activity. No less essential for economic

stability and sustainability are strategic initiatives that will harness our

resources, diversify our economy, educate our people and reduce the barriers to

growth and success. It is only by striking an optimal balance and continuing to

lay the foundation for economic growth that we will move beyond the downward

spirals of the past and fuel the momentum that is advancing us toward a

sustainable future.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: So with our goal of a strong and self-reliant Newfoundland

and Labrador clearly in our view, we are moving ahead this year to strike the

perfect balance that marries fiscal stability with strategic economic

investment. Firstly, we are investing responsibly in reducing our exposure to

debt by applying a significant portion of the Atlantic Accord revenue against

our pension plan liabilities - liabilities that we would otherwise have to

borrow significantly to cover when they come due. This investment will actually

free up money we would otherwise need to allocate toward debt servicing. To

reinforce our commitment to fiscal prudence, our government will also move to

bring balanced budget legislation forward for consideration by this House.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: And this legislation will be brought forward, Mr. Speaker,

before the end of this mandate. The days of passing a debt burden on to our

children and grandchildren must end. Secondly, we will invest strategically in a

bold range of measures to strengthen our education system, unleash an innovation

revolution, bolster our public infrastructure, diversify our rural economies,

empower Labrador, invigorate our cultural industries, reduce poverty, secure our

communities and enhance our public health care system for the long-term benefit

of all Newfoundlanders and Labradorians.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This, Mr. Speaker, is the perfect balance. These are the

right choices to sustain momentum for growth and prosperity in Newfoundland and

Labrador.

THE RIGHT CHOICES

Investing in Education

Mr. Speaker, no investments are more important to the success and

sustainability of Newfoundland and Labrador than those we make in our education

system. We have a moral obligation to provide a solid educational foundation to

those whose future is in our hands. To deny our young people a sound education

would be to deny Newfoundlanders and Labradorians a sustainable future, and that

would run contrary to everything we are working to achieve.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: So this year, despite the fact the current teacher

allocation formula calls for the removal of 151 teaching units from our K-12

school system, we are investing $5.2 million, which means $9.1 million for a

full year, to ensure that not a single one of those teaching units will be cut

from our school system this year.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We will reinvest those teaching units in strategic areas to

address specific concerns: to enhance career counseling, to deliver futures in

skilled trades and technology programming and to extend our commitment to cap

class sizes to include Grade 2. We will also review the teacher allocation model

to determine the best way to address declining enrolments and demographic shifts

without compromising the education our children receive.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We cannot overstate the importance of the work our Province's

teachers do in preparing our young people to seize the opportunities before

them. Inclusion strategies, such as the Individual Support Services Plan, impose

significant red tape and documentation requirements on teachers. This year, we

will conduct an independent review of this program to identify ways to make it

easier for teachers to deliver inclusive education to children with complex and

divergent needs.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, we also appreciate the importance of ensuring

our students have access to the curriculum they need to succeed. This year, we

will allocate $2 million for course development and the purchase and upgrading

of equipment for schools. This will be paired with a recent $4 million

investment for machinery, tools and technology equipment. We will invest another

$2.2 million to provide laboratory safety equipment and lab training for teacher

in Grades 7 through 12. We are also moving ahead to develop new curriculum that

will enable senior high students to focus on Newfoundland and Labrador's

unique history.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This will complement the Cultural Connections Strategy we

commenced last year.

Physical education is beneficial, not only for educational purposes, but also

for fitness and personal enrichment. We will invest $1 million this year to

extend the purchase of physical education equipment to intermediate grades,

consistent with our government's wellness agenda. This initiative will

reinforce the work of the provincial wellness plan, Go Healthy , by

increasing fitness opportunities.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We are also continuing to work this year with the

allocating an additional $100,000 to enable our athletes to compete in

Whitehorse in the 2007 Canada Games.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, in keeping with our commitment to ensure safe

environments for our children, we are investing $5.3 million to reduce the age

of school buses, to purchase 67 new buses -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - and also to offset maintenance and the increased cost of

fuel.

School board consolidation has, admittedly, made it more difficult for school

councils to have direct contact with board personnel. So we are providing

funding to hire a liaison within the Department of Education to ensure the

voices of parents and communities are heard.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Public libraries have always played an important role in

extending education from the classroom into the community. We will provide

$250,000 a year in order to lengthen the hours at forty-two public libraries

where local demand exceeds existing hours of operation.

SOME HON. MEMBERS: Hear, hear!

UNLEASHING INNOVATION

MR. SULLIVAN: Mr. Speaker, last year we released our White Paper on

and range of programs at the College of the North Atlantic and Memorial

University. These are the public institutions in which the quest for knowledge

and skills is focused toward success. This year, we will put into action our new

Innovation Strategy, a broad plan to extend that preparation for success deep

into the business sector where innovation can open up whole new worlds of

opportunity and prosperity in both urban and rural communities.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: In order to ensure that our graduates are prepared to take

on the tremendous opportunities emerging in Newfoundland and Labrador in a wide

range of industries, we are this year establishing a Skills Task Force at a cost

of $100,000.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This broadly-based Skills Task Force will identify our

province's future skills requirements, particularly those associated with

large-scale development projects; identify skills gaps and their potential

impact on attracting large-scale development projects; assess the province's

current ability to respond to these requirements; and identify and develop

strategies to ensure a proper training, education and support system to meet

industry demands.

Mr. Speaker, we already recognize that there are tremendous opportunities for

women in nontraditional trades. Therefore, we will provide funding of $270,000

to support initiatives such as the "Women in Apprenticeship and Skilled

Trades" initiative.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This initiative was proposed by the Women in Resource

Development Committee and the International Brotherhood of Electrical Workers.

This electrical trades pilot project is a first step in helping to increase

the low participation rate of women in the skilled trades and to help all our

people take advantage of the opportunities that education and innovation bring.

The ideal incubator for innovation is our public post-secondary system. This

year, in building on the policies of our White Paper, we will invest $8.5

million in the College of the North Atlantic.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This money will be directed to make its seventeen campuses

stronger and even better able to produce the skilled graduates our economy

needs.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, once again this year, we have frozen tuition

fees. Our investments include new programs at the College: $1 million to target

industrial needs and build on regional strengths; $1 million to develop two

technology programs targeting the oil and gas sector, and $650,000 to expand the

Comprehensive Arts and Science College Transition Program to the campuses at

Placentia, Bay St. George, Baie Verte, Gander and Carbonear.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We will invest in upgrading the skills of the College

faculty members and provide $1 million to modernize the College's industrial

trades shops plus a further $500,000 to enhance the support services, equipment

and resources that students with disabilities need. We will significantly

increase the College's budget for recruiting and publicizing its exceptional

programming and the career paths that these programs open up for our young

people.

Mr. Speaker, we are also investing heavily in Memorial University. With $32.2

million this year, Memorial will be able to maintain the freeze on tuition fees.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We will strengthen the Industrial Research and Innovation

Fund with another $7.5 million this year in matching and startup funding -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - and this is part of a three-year escalating commitment.

Each provincial research dollar generates five dollars in external research

funding. Memorial's Marine Institute is at the cutting edge of marine

education and innovation. We will invest $1.1 million to replace the Institute's

research and training vessel and another $500,000 to upgrade the Offshore Safety

and Survival Centre in Foxtrap.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Both of these are critical to students and industries

throughout Newfoundland and Labrador.

In total, we are investing more than $100 million of additional funding -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - and that $100 million is solely into our education system

this year.

With this rock-solid commitment to post-secondary education as the backdrop,

we are proceeding to implement our new $20 million Innovation Strategy -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - and our commitment for this year is $5 million. Through

an aggressive and comprehensive approach to innovation, we will grow our

productivity, enhance our global competitiveness, stir the imagination of

entrepreneurs and investors alike and provide a strong foundation on which

people and communities can prosper and thrive.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: With our new Innovation Strategy, we are also focusing on

harnessing new opportunities in sectors throughout our economy. We are this year

committing $2.85 million to a Commercialization Program to allow companies to

leverage funding and financing from a variety of sources to support innovative

projects. We are providing $500,000 to prepare the Centre for Environmental

Excellence in Corner Brook for research -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - and commercialization opportunities in the environmental

sector. We are committing $2.15 million to an Innovation Enhancement Program to

support public sector institutions, not-for-profit groups, community

organizations and industry associations that are working to enhance the

innovative capacity and efficiency of the Province.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We are increasing funding by $200,000 for the Ireland

Business Partnerships.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Innovation within the government is being spearheaded by

the Office of the Chief Information Officer and the Public Service Secretariat.

The 21 st century workplace is one characterized by rapidly advancing

technology, global competition and enlightened leadership. We cannot meet the

service expectations of the public unless we give our employees supports to

continue to rise to the challenges and demands of an ever-changing workplace. We

value and understand the critical importance of our public service.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We recognize that there can be no growth or transformation

in this organization without continual investment. Therefore, we must manage our

talent wisely and take strategic measures to create tomorrow's public service.

Through significant investment in our government-wide human resource strategy,

we are supporting the exceptional public service work that occurs every day.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: In the next fiscal year, this government will invest

significantly in initiatives aimed at strengthening the public service and

ensuring it continues to achieve excellence: extensive learning and development

programs to help front line program staff within departments enhance their

knowledge and skills in support of their departments' service delivery

priorities and also to address occupational health and safety within the

workplace; executive and management learning programs aimed at enhancing the

overall management and accountability of the public service; and completion of

another round of government-wide human resource policy planning to build upon

the successes achieved since the current human resource plan was approved in

2003 and develop strategies to address further human resource needs in the

public service. Through specific, strategic approaches to employee development

and succession management, we continue to support the professionalism our

employees have demonstrated and to build upon our strengths. We are also setting

a foundation for the identification, selection and development of our future

leaders. This calculated investment is ultimately aimed at supporting a robust

and accountable public service.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We are also excited about the efforts of Newfoundland and

Labrador Hydro, hand-in-hand with the Department of Natural Resources, to expand

its mandate to encompass a broad array of energy development opportunities. In

order to make our Crown corporation a competitive player in the international

marketplace, our government will invest in Hydro's financial health by

allowing it to retain $54 million in dividends this year.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This will give our public utility the leverage to pursue

opportunities that will bring new industrial developments and economic wealth to

Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: As Hydro leads the charge on hydro energy, wind energy and

petroleum energy development, Newfoundlanders and Labradorians will reap the

rewards through new industrial projects and new economic wealth in our Province.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This year, we are investing $350,000 to complete and

activate the Provincial Energy Plan and $550,000 to supplement professional

services to better align the Province for future growth in current and emerging

energy developments.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: These initiatives to promote innovation and growth will

build on those we funded last year through the Small and Medium Enterprise Fund,

the Regional-Sectoral Diversification Fund, the Business Market and Development

Program, increased support for tourism marketing, the aquaculture working

capital loan guarantee program, the mineral incentive program and grants for

rural economic development.

This will also be the first full year of operations for our new Department of

Business which has a mandate to promote growth and investment in all regions and

produce a provincial business strategy. The new department is also taking the

lead on our Red Tape Reduction project, which will further reduce the costs of

doing business. Already this year, we are moving ahead effective April 1, to cut

a variety of fees at a total savings to businesses and individuals of $1.5

million.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Among this year's fee cuts, we are eliminating the

licence fee for food premises through an investment of $600,000. The Red Tape

Reduction Committee has been tasked to conduct a thorough review of all the fees

in the Province and recommend even further reductions, if appropriate.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: In addition this year, we are eliminating the licensee levy

on wine, spirits and beer through a $1.95 million investment.

SOME HON. MEMBERS: Hear, hear!

INVESTING IN INFRASTRUCTURE

MR. SULLIVAN: Mr. Speaker, throughout Newfoundland and Labrador, existing

infrastructure, including roads and public buildings, has been left to

deteriorate for decades. Sadly, even though it is critical to maintain and

enhance vital infrastructure to preserve its value and promote economic

expansion, Newfoundland and Labrador has for too long been without a plan to

identify the needs and find ways and means to address them responsibly. Our

government has therefore developed a comprehensive Infrastructure Strategy which

evaluates the needs and sets out to address them on a priority basis

progressively over time. We are making an investment in excess of $300 million

this year in infrastructure, the first installment of a planned expenditure to

exceed $2 billion over the next six years.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This year, we will move forward with a road construction

program worth $142.2 million. Included will be a $60 million Provincial Roads

Improvement Program, $29.7 million in cost-shared improvements to the

Trans-Canada Highway, $25.5 million for Phase III of the Trans-Labrador Highway

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - and cost-shared funding to extend the Team Gushue Highway

across the city and begin the Torbay Bypass Road.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We are also committing our share of Phase I of the plan to

place a hard top on the Trans-Labrador Highway.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Further highways investments this year include salt

management, brush cutting, line painting and $10 million to renew our heavy

equipment fleet as part of a multi-year strategy to enhance both winter and

summer maintenance capacity.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: To address concerns about highway safety and potential

damage to our highway infrastructure, we will be strategically reactivating

weigh scales at Port aux Basques and Foxtrap.

SOME HON. MEMBERS: Hear, hear!

SOME HON. MEMBERS: Oh, oh!

MR. SULLIVAN: Mr. Speaker, and the Opposition are not even wearing shades

today.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, we are committing $9 million this year to

refit ferry vessels, another $6.1 million to maintain wharves -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - another $6.1 million to maintain wharves and terminals,

and $1.5 million to initiate design work for the construction of two ferry

vessels right here in Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Our Province's municipalities also recognize the

importance of investing in public infrastructure to promote growth. To work

cooperatively with our municipalities we will invest $22.5 million this year in

municipal capital works programs.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: These projects will help municipalities develop priority

infrastructure such a roads, water and sewer, and municipal buildings. We will

leverage federal funding for municipalities under the Canada Newfoundland and

Labrador Infrastructure Program through our investment of $700,000, the

Municipal Rural Infrastructure Fund through our investment of $9 million, and

the Canada Strategic Infrastructure Fund II through our investment of $1 million

for a total provincial investment in municipal infrastructure this year of $33.2

million.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Furthermore, our government will administer the federal gas

tax rebate program under which $19.8 million will flow to municipalities for

environmentally-sustainable projects.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: The province's public buildings also require regular

investments to maximize the value of these properties. We will invest $8.5

million to maintain public buildings, another $8 million to remediate or remove

buildings as needed, and $1.5 million to reconfigure buildings to optimize usage

and reduce rental costs.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We will also begin construction of a much-needed courthouse

in Corner Brook.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, nowhere is the need for new investments in

public buildings greater than in our health and education sectors. In our health

sector, we will invest close to $40 million in new capital construction

projects, including new long-term care facilities in Corner Brook, Clarenville

and Happy Valley-Goose Bay -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - and planning for long-term care in Lewisporte and St.

John's.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: In response to the growing need for health care services,

we will build a new health centre in Labrador City.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We will continue with renovations to the older

section of

James Paton Memorial Hospital in Gander -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - and complete the Cancer Clinic in Grand Falls-Windsor.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Budget 2006 includes funding to continue with a new primary

health clinic in Grand Bank and renovations to the Blue Crest Nursing Home.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: In the education system, we will be investing $20.4 million

in capital equipment, construction, alterations and improvements at Memorial

University, $8.6 million at the College of the North Atlantic and $37 million in

the K-to-12 system.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We will make these significant investments in

infrastructure with a keen understanding of the relationship between reliable

infrastructure and our attractiveness to investors, and also with a clear

appreciation of the capacity of infrastructure work to generate strong economic

activity on its own and to improve the lives of our people in numerous ways.

SOME HON. MEMBERS: Hear, hear!

BUILDING RURAL REGIONS

MR. SULLIVAN: Mr. Speaker, measures such as these, coupled with our other

investments in education and the Innovation Strategy, will do a great deal to

promote diversification and growth in our rural communities. Many industries

offer tremendous promise in rural Newfoundland and Labrador.

None are more exciting than aquaculture. In order to spur private investment

in aquaculture, we will make significant public investments in the industry over

the next five years. Our aquaculture growth strategy includes a new, three-year,

$10 million Aquaculture Capital Investment Program -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - with a commitment from that amount of $3.5 million in

2006-07; and also the establishment of a cod aquaculture demonstration farm and

an enhanced aquaculture industry support initiative. We intend to become a

leader in this growth industry.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Innovation also offers promise in the fish processing and

marketing industry, particularly as we invest in diversification and maximize

every opportunity. We will increase our budget for the Seafood Development and

Diversification Program by $250,000 a year for the next five years -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - and we will invest in seafood market development, an

international seafood trade development initiative, and strategic infrastructure

to improve the efficiency, product quality and safety of our fish landing and

handling activities.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, we are also looking to the future of our

fisheries. We will invest $350,000 over two years to increase the province's

capacity for coastal and oceans management and to prepare an oceans strategy and

policy framework.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We will also invest $100,000 for a sealing industry

communications strategy to counter the fiction and fabrication with facts -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - and $300,000 a year over five years to implement the cod

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: To bolster our fish processing sector and help protect jobs

in a time of resource decline, strong international competition and a high

dollar, we will reduce the financial burden on the industry by reducing

processing licence fees. Effective immediately, we will eliminate fee increases

planned for 2006-07 and 2007-08 and also the planned species surcharge increases

planned for 2006-07.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, agriculture is another sector that holds

tremendous promise in rural Newfoundland and Labrador. We are providing $4

million this year to establish an Agrifoods Development Fund.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This $4 million fund will support large scale, strategic

and targeted investments in agriculture and agrifoods projects by companies with

proven track records that are prepared to make investments of their own.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We are providing $2 million to the Provincial Agrifoods

Assistance Program.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This program promotes and supports primary production and

secondary processing in the sector. We will invest $2.3 million, primarily for

the acquisition of farmland and for the construction of agricultural roads,

particularly to support expansion in the dairy sector, and invest in

agricultural limestone to support expansion in the dairy and sod sectors.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We are also providing $1.3 million based on a review of the

Animal Health Division to address growing concerns in the area of animal and

human health interaction and to support front-line veterinary services and

laboratory testing.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This will provide the support and laboratory testing for

our growing farming industry.

Mr. Speaker, yet another industry that continues to be very important in many

rural areas throughout our Province is forestry. To ensure a healthy wood

supply, we are providing $800,000 in new funding to conduct a forest inventory,

a $1 million increase in each of the next three years for silviculture

initiatives to replenish our resources -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - and also a $1 million increase in forest insect control

and fire suppression funding.

Our mining industry also offers tremendous promise in rural regions. To boost

these opportunities, we are investing $2.5 million in the Mineral Incentive

Program -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - and that is an increase of $900,000 from last year -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - and this is to promote prospecting and exploration

activity in the Province. These direct investments enable junior mining

companies and prospectors to leverage significant additional private-sector

investment and provide a solid foundation for new business and employment

opportunities for our people. We are also committing an additional $500,000 to

conduct even more regional geological work in order to provide timely geoscience

information that accelerates mineral exploration activity.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, our offshore oil and gas industry continues to

offer tremendous promise for larger centres but also for rural regions of the

Province. Petro-Canada's decision this year to build the Additional Living

Quarters Module for the Terra Nova FPSO at the Bull Arm site is a testament to

the site's value and the need to maintain the site in a state of readiness for

future work.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We will provide $1.1 million this year to the Bull Arm Site

Corporation both to manage the site and to help us attract even more offshore

fabrication and construction work to our Province.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: In order to preserve and protect the resources that our

industries, communities and future generations will need for years to come, we

will continue to promote conservation and sustainable development initiatives.

We will continue to fund the Inland Fisheries Enforcement Program and move ahead

to draft a Sustainable Development Act.

SOME HON. MEMBERS: Hear, hear!

RENEWING OUR COMMITMENTS TO LABRADOR

MR. SULLIVAN: Mr. Speaker, one area of our Province that is receiving

greater attention from our government is Labrador, a vast frontier of promise.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We are working co-operatively with the Aboriginal peoples

of Labrador and other Labradorians in an effort to ensure that Labradorians are

fully engaged in the developments that lie ahead for the Big Land.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: I already mentioned the Trans-Labrador Highway work and

other major initiatives that will be proceeding this year in Labrador. We are

also committing $325,000 to develop a comprehensive Labrador Transportation

Strategy to address the range of challenges that Labradorians face. With the

Trans-Labrador Highway open in southern Labrador, we will open a depot to enable

summer and winter maintenance between Red Bay and Lodge Bay.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: And also extend the Straits ferry service by an additional

month.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We have provided funding of about $1.3 million to implement

the Labrador Inuit Land Claims Agreement, which came into effect on December 1,

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We have also announced $1 million to commence an extension

of the College of the North Atlantic campus at Happy Valley-Goose Bay, another

$1 million to replace the facility at Labrador West, $1.2 million towards -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - $1.2 million towards a long-term health care facility for

Happy Valley-Goose Bay -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - $1.5 million for a new health centre in Labrador West -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - and additional funding for a new dialysis unit at Happy

Valley-Goose Bay.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: In light of the high rate of suicides in Aboriginal

communities, the Province and Health Canada have discussed cost-sharing a

two-year, $240,000 suicide prevention initiative.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: As part of our Poverty Reduction Strategy, we are providing

$100,000 to expand the Labrador coastal air foodlift subsidy by a third.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This will ensure that residents can access nutritious food

at a reasonable price. We are also providing Supreme Court circuit courts in

Labrador coastal communities, expanding court security at Happy Valley-Goose Bay

and Wabush, funding the Fetal Alcohol Spectrum Disorder assessments at the

Labrador Correctional Centre and hiring a Senior Policy Analyst to research

Aboriginal translation services.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We are investing $100,000 to fund the Destination Labrador

tourism marketing campaign and committing $1.9 million provincial contribution

to establish a performance space in Happy Valley-Goose Bay.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Together, our investments in Labrador this year total $60

million.

SOME HON. MEMBERS: Hear, hear!

INVESTING IN OUR HERITAGE

MR. SULLIVAN: Mr. Speaker, last year our government acknowledged the

tremendous role our cultural industries play in promoting pride in who we are as

Newfoundlanders and Labradorians -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - and also in generating tremendous economic activity

through their ingenuity and innovation. This year, we are building on the

advances we made last year through further strong investments in our cultural

sector. The centrepiece of our efforts this year is the development of

Newfoundland and Labrador's first-ever Strategic Cultural Plan -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - which is a medley of measures designed to strengthen this

sector. This Budget commits an investment of $17.6 million over the next thee

years to implement this Plan.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: With culture as our focus, we will pursue a range of

measures to further strengthen our cultural industries. This will include

$200,000 in core funding for arts organizations and $300,000 for heritage sites

and community museums.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We will establish a Cultural Tourism Working Group to

assess and identify ways to better harness our cultural tourism product. We will

also invest in Music Newfoundland and Labrador, a Publishers Assistance Program

and the Newfoundland and Labrador Film Development Corporation.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: The Newfoundland and Labrador Arts Council is proudly

celebrating its 25 th anniversary this year. We are increasing our

allocation to the Council by $300,000 this year, bringing its funding to $1.15

million so it can better support the arts community.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Our cumulative new investment in the Arts Council over the

next three years will be $1.8 million, which will double the Council's

existing budget. We will also move ahead to enable the development of a

long-awaited Artist's Code.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We will increase funding for the Art Procurement Program

under the auspices of the Provincial Art Galley at The Rooms, enhance the

provincial Arts and Letters Program, research investment and endowment models

that help to support the arts and culture sector, and develop a strategy to

safeguard and promote the province's intangible heritage. We will invest in

capital works and technical upgrades at the Arts and Culture Centres and the

renovation of the LSPU Hall.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, we will begin to develop

interpretation and

revitalization plans for the historic Colonial Building and allocate funds to

enhance the Corner Brook Museum, the Loggers' Life and Mary March museums in

Grand Falls-Windsor, the Seamen's Museum in Grand Bank, the Mockbeggar

Plantation and the Bonavista Lighthouse, Commissariat House, Quidi Vidi Battery,

the Ryan Shop in Trinity, the Cable Station in Heart's Content and the Point

Amour Lighthouse.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: In addition to this, we will invest in community events

throughout the Province. Through our Recreation Division, we will provide

$200,000 to fund the 2006 world triathlon and duathlon world championships in

Corner Brook.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: And we are investing now to prepare for the 100 th

anniversary, in 2009, of Captain Bob Bartlett's trip to the North Pole -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - and we are moving ahead to plan the 2010 celebration of

the 400 th anniversary of John Guy's Colony at Cupids.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: These cultural initiatives will complement the additional

resources we are investing in tourism development to foster growth in an

industry that can mean magnificent opportunities throughout Newfoundland and

Labrador, irrespective of location. We will invest $100,000 this year to achieve

goals laid out in our Tourism Product Development Strategy. We have committed

another $2 million beyond what was announced in last year's Budget in order to

bring our total tourism marketing budget up to $10 million.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: And we will upgrade and extend the operating time of our

province's Visitor Information Centres and establish a new provincial centre

at the St. John's International Airport.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, protecting our heritage also means protecting

our natural environment. We are increasing funding from $300,000 to $500,000 for

the continued implementation of the province's Climate Change Action Plan and

providing $1 million this year for the continued clean-up of selected

contaminated sites.

To ensure the health of our wildlife populations, we are providing funding of

approximately $3 million over two years to assess the status of ten of the

province's major caribou populations, and will also establish a

multi-stakeholder Advisory Committee to help guide the development of a caribou

strategy.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We are also moving ahead with a long-term reinvestment

strategy for our Provincial Park System by providing $1 million this year to add

additional campsites and construct another comfort station at Butter Pot

Provincial Park, construct a comfort station at Squires Memorial Provincial

Park, construct a comfort station and dumping station at Pinware River

Provincial Park, and build dumping stations at Frenchman's Cove Provincial

Park and J. T. Cheeseman Provincial Park.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: These additions will make our parks more attractive

destinations and allow us to meet the broader range of services and amenities

that are demanded by the modern consumer.

We are investing additional funds to help preserve and promote our remarkable

natural areas. This year, we will focus on supporting the new

interpretation

centre for the Mistaken Point Ecological Reserve and another for the Burnt Cape

Ecological Reserve. We are also providing $259,000 to advance the Natural Areas

System Plan, which is focused on protecting and promoting these areas for their

esthetic and economic value.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Together, this broad range of initiatives will strengthen

our Province and provide the foundation for diversified economic development in

regions throughout Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

REDUCING POVERTY AND INCREASING SELF-RELIANCE

MR. SULLIVAN: Mr. Speaker, we have outlined numerous ways in which we

will work with Newfoundlanders and Labradorians to create new opportunities in

both traditional and breakthrough industries. These initiatives will open doors

for people throughout Newfoundland and Labrador. But for many people in our

province, obstacles stand in the way of opportunity. Currently, approximately

66,000 individuals in 33,000 families in our province live in poverty. Poverty

often means poor nutrition and poor health, poor educational opportunities and

poor employment prospects. But it is not only the poor who suffer the costs and

consequences of poverty. We all suffer when circumstances prevent so many among

us from developing and contributing to their full potential.

Guided by a strong social conscience, we moved forward last year to develop

Newfoundland and Labrador's first-ever comprehensive, integrated Poverty

Reduction Strategy.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We set to work to gather solid research and consult broadly

with those who understand poverty best in order to develop an action plan that

will truly make a difference. We are ready this year to announce our progressive

Poverty Reduction Strategy with an investment in measures across several

departments totaling $62 million on an annualized basis.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, our research and consultations have indicated

that prescription drug costs create the biggest financial barrier to work for

those on Income Support and they are a significant hardship for those earning

low wages who lack prescription drug coverage. This year, we will invest $8.3

million (which means $32.8 million on an annualized basis) to extend eligibility

for the Newfoundland and Labrador Prescription Drug Program to more low-income

residents and introduce an accelerated co-pay at the same time for these

additional clients.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, this initiative will expand coverage to

approximately 97,000 additional people.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Some people face barriers to work because of high housing

costs. At an annual cost of $750,000, Newfoundland and Labrador Housing will

begin calculating the rent of employed tenants to reflect net pay rather than

gross earnings.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, this will result in cutting rental charges by

about $50 a month for some 1,200 households.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, this initiative will be complemented by others

through Newfoundland and Labrador Housing Corporation, including Phases I and II

of the Affordable Housing Agreement, the Provincial Home Repair Program and the

Residential Energy Efficiency Program.

Mr. Speaker, to assist in the transition to the workforce, we will invest

$570,000 to extend Income Support to clients starting a job during the first

critical month and will simplify the process for reporting income.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, we will also invest another $500,000 this year

to continue career development, job recruitment and placement initiatives to

help Income Support clients, especially young people, find jobs.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Also, we will increase funding under the Supported

Employment Program for adults with developmental disabilities.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Recognizing that education is critical in achieving

self-sufficiency, we will invest in an additional $1.2 million a year to expand

the number of Adult Basic Education courses.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: These courses are presently offered at the College of the

North Atlantic campuses. We will provide a monthly $25 rental rebate for every

adult member of a Newfoundland and Labrador Housing Corporation household who is

in full-time attendance at a post-secondary institution as well as for every

level 2, 3 and 4 high school student in a tenant household.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: And, as already indicated, we will also invest $2 million a

year to assist female and male students in Grades 10 through 12 with new

skills-development courses that can open up college and career paths.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, we believe no parent should have to pay for

instructional materials that students require to participate fully in classroom

instruction, such as workbooks and photocopying. Therefore, this year, at a

total cost of $5.3 million, we are increasing the instructional grant from $80

to $150 per pupil.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, this will enable the elimination of common

school fees.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, that would include fees for all items and

services that are currently purchased in bulk by schools and boards and billed

back to parents. We will invest $1 million, additional, to cover prescribed

consumable workbooks.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: To promote student health, we will invest $250,000 to

implement new school food guidelines to encourage healthy eating and enable

school cafeterias to provide healthier food choices.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This complements our $500,000 investment under the

provincial Go Healthy wellness plan for the Kids Eat Smart Foundation, which

works with schools and community groups to establish nutritious breakfast, lunch

and snack programs.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: With an annual contribution of $250,000, we will also

continue to support the Jumpstart Program developed by the Canadian Tire

Foundation for Families, which will enable children from low-income homes to

participate in sports and recreational activities.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We also know that low-income families often find it

difficult to pay surcharges associated with accessing dental care for their

children covered by the Provincial Children's Dental Program. Under the

program we are allocating an additional $4.1 million in an effort to eliminate

these surcharges so that all families can avail of the dental health services

their children need.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, while education and employment are keys to

reducing poverty, it is also essential to support those who are most vulnerable

in our society. We will invest $7.4 million a year to raise Income Support rates

by 5 per cent, a further $3 million a year beginning in 2007-08 to index Income

Support rates to the rate of inflation -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - and another $2.8 million a year to further assist

families in high-rent centres or with high-cost needs with their rental costs.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We are also increasing the rate we provide for Income

Support clients to cover funeral costs. And for families of children with

disabilities, who often face extraordinary costs, we will invest $2.25 million a

year to increase access to the Special Child Welfare Allowance program that

helps families offset some of these costs.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Many low-income families have particular difficulties

accessing legal and counselling support services. We will invest $679,000 to

expand Unified Family Court Services to provide more family law resources

throughout the province, thereby enabling the working poor, particularly in

rural areas, to reduce their legal expenses through improved access to family

law services.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We will invest $250,000 to enhance civil legal aid services

that help low-income families with family law matters. And we will increase

funding to the province's Women's Centres by $80,000 a year so they can

continue to provide counselling, support, and education services to women

throughout the Province.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Measures such as these will help break the cycle of

poverty, both by addressing the consequences of poverty and by targeting the

circumstances that cause and sustain poverty.

SOME HON. MEMBERS: Hear, hear!

ENSURING SAFE AND SECURE COMMUNITIES

MR. SULLIVAN: Mr. Speaker, to complement these initiatives and support

safe and secure communities, we are announcing a range of investments in

justice, policing and violence prevention.

This year, we are investing $10 million to bolster the Royal Newfoundland

Constabulary and the RCMP.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We are investing $3.1 million of this to strengthen the

police presence throughout the Province. This includes $516,000 to hire four new

RCMP officers in the Grand Falls-Windsor, Trinity-Conception, Deer Lake and Nain

regions; $592,000 to create five RCMP regular member positions and related

operational funding, including three Highway Patrol and two drug awareness

officers; $900,000 to fill nine vacant regular RCMP member positions throughout

the Province; $970,000 to create eight new RNC Constable positions including

drug awareness officers in St. John's, Corner Brook and Labrador West; -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - and $170,000 to support a new RNC dog unit for Corner

Brook.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, some of these investments build on the success

of the RNC training program. In September, the first graduates of the new RNC

training program at Memorial University received their badges and, since then,

all twenty-eight have been hired to law enforcement positions in the Province.

Another twenty-six are currently enrolled and we anticipate another thirty will

join the program this year.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We will also continue to address financial and human

resource deficiencies that have resulted from a decade of cutbacks to both of

the Province's police forces. We are investing $6.9 million in the RNC and

RCMP for administrative operations.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This includes $178,000 for five new administrative/clerical

positions in the RNC's Criminal Investigation Division, Strategic Planning

Division and Property Room; $166,000 to hire four new RNC civilian dispatchers;

$3.4 million to help the RNC address significant pressures associated with

complex investigations, equipment purchases, mandatory training and the need for

a new Sexual Assault Nurses in Emergency Program.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Furthermore, Mr. Speaker, we are providing $124,000 for two

RCMP Operational Communication Centre positions; $60,000 for two RCMP public

service positions in Forteau and Mary's Harbour; and $3 million for the RCMP

to cover other significant costs.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, together, these initiatives will put more

police on patrol while at the same time addressing the administrative issues

recently raised by the Auditor General.

We are also investing $220,000 to expand court security in Happy Valley-Goose

Bay, Wabush and Grand Falls-Windsor and, in total, $1.1 million to strengthen

the provincial legal aid system.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: To enhance child protection services, we will fund 55 new

child, youth and family services positions.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, these positions will be funded over the next

three years, beginning with a new investment in this Budget of $1.5 million. We

are strengthening our resolve to make a lasting impact on the incidence of

violence in our communities with a $1.25 million investment to support the

government's new six-year action plan on violence prevention.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This plan is called Taking Action 2012 . To further

assist women and their children leaving abusive relationships, we will provide

an additional $305,000 to support transition homes in Labrador West, Hopedale

and St. John's.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: And we will also invest $100,000 this year in spousal abuse

and sex offender treatment programs, expanding the programs beyond St. John's

and the West Coast to include Labrador and central Newfoundland.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: With these measures we will endeavor to make our

communities and our people safer and more secure.

IMPROVING OUR HEALTH

MR. SULLIVAN: Mr. Speaker, strong economic growth enriches a government's

ability to invest in our provincial health care system. Supported by national

health accord funding that was secured and negotiated by our Premier with the

First Ministers, we have made strategic investments in health care, improved

access to key services and endeavored to respond more effectively to the health

needs of our people. This year's Budget invests over $180 million in new

health care funding.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: And this will bring our total investment in health care to

$1.96 billion, a 10 per cent increase over last year's budget.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Earlier, I announced significant investments in several

health care facilities. Complementing this will be additional investments of

over $60 million to maintain our core health and community services through our

Regional Integrated Health Authorities.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Mr. Speaker, we will invest $15.6 million in new funding

this year to help prevent and treat cancer.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This includes $1.5 million to enhance the Provincial

Cervical Screening Program, $750,000 for breast screening centres in Grand

Falls-Windsor and St. John's and other program enhancements, $3.3 million to

construct two new bunkers to house two new radiation treatment machines at the

Dr. H. Bliss Murphy Centre -

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: - $6.4 million to introduce new treatment therapies for

colorectal cancer and multiple myeloma, and an additional $3.6 million to cover

four medications: Eprex and Aranesp for cancer-related anemia, Tarceva for

certain lung cancers and Herceptin for early-stage breast cancer.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Under our new policy framework Working Together for

Mental Health , we are investing another $1 million to enhance primary mental

health services in the Province. We will also provide a further $1 million to

strengthen resources to assist persons struggling with gambling and other

additions, in addition to the $1.1 million we are investing this year to

construct a new, $3 million provincial addictions treatment centre in Corner

Brook. Last year, our government froze the number of VLTs in the Province and

committed to reduce the number in service by 407 (or a 15 per cent decrease)

over five years, beginning in April, 2006. I am pleased to advise that 90 VLTs

will be removed from service two days from now.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This represents a 3.3 per cent reduction in total VLTs this

year. We are now on track with a plan to remove 428 VLTs by April 1, 2010, a

total reduction of almost 16 per cent.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: In addition, our government is considering other options

aimed at reducing problem gambling, and further initiatives may be expected in

the near future.

Mr. Speaker, we will also strengthen our public health capacity in the

Department of Health and Community Services as well as the regional health

authorities. We are adopting an integrated approach across several departments

to ensure we are prepared to respond to and manage public health emergencies

such as an influenza pandemic, which is a significant public concern around the

world.

We will invest $1.3 million to implement the Province's new wellness plan, Go

Healthy , in addition to the record $2.4 million we invested in wellness last

year; and we will complete ongoing public consultations and use the feedback to

develop a new Provincial Healthy Aging Framework.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We will also build on our commitment to improve access to

health care services throughout the Province. We will invest $6 million to bring

the personal care home subsidy rate from $1,138 per month up to $1,500 per

month.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: This, Mr. Speaker, will become effective July 1, 2006 and

we will provide additional subsidies to address the current wait list. We will

reduce the wait list for home support for seniors and persons with disabilities

through a $2.7 million investment this year.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: In response to growing demands for dialysis services, we

are committing $1.5 million this year to address the increasing needs of

existing sites. We will also proceed with three new renal dialysis units on the

Burin Peninsula, at Happy Valley-Goose Bay and at St. Anthony.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We will provide new funding to enable our people, for the

very first time, to benefit from in vitro fertilization procedures without

having to leave the Province.

And we will provide an additional $1.7 million to add new medications to the

provincial formulary, including cancer drugs just mentioned. And beginning in

September the provincial formulary will include the Alzheimer's medications

Reminyl, Exelon and Aricept.

SOME HON. MEMBERS: Hear, hear!

CONCLUSION

MR. SULLIVAN: Mr. Speaker, these are the right choices to harness the

growing momentum in Newfoundland and Labrador in ways that will bring growth and

prosperity to our communities and our people. Through these strategic

investments in health care, community safety, poverty reduction, our cultural

industries, our natural resources, Labrador development, rural diversification,

infrastructure, innovation and education, we are using the tools in our hands to

build a stronger, more vibrant, more sustainable and self-reliant Newfoundland

and Labrador, for both our citizens today and our children tomorrow.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We are moving forward, not only with hope for the future,

but more importantly with confidence that we can make the future of our hopes

and dreams a tangible reality. As a result of our hard work and successful

significant progress in implementing our eight-year blueprint for economic and

social development.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: We look forward to continuing to strengthen the partnership

we have been building with our province's workers, with our entrepreneurs and

innovators, our educators and community leaders, our seniors and young people

and all Newfoundlanders and Labradorians in a cooperative effort to make our

Province the powerhouse of opportunity and growth that we know we are truly

capable of being. Together, we will harness the pride and optimism that is

flourishing in our Province today, and together we will usher in a bold new era

of prosperity and self-reliance for Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

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

Board.

MR. SULLIVAN: Thank you, Mr. Speaker.

I move that the debate be adjourned.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The motion is that the debate be adjourned.

The members of the Assembly have heard the motion.

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

Motion carried.

The hon. the Minister of Finance.

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

received a message from His Honour the Lieutenant Governor.

MR. SPEAKER: All rise.

The message is from the Lieutenant Governor, the Honourable Edward Roberts,

dated 30 March 2006:

As Lieutenant Governor of the Province of Newfoundland and Labrador, I

transmit Estimates of sums required for the Public Service of the Province for

the year ending 31 March 2007, in the aggregate of $4,424,206,400, and in

accordance with the provisions of Sections 54 and 90 of the Constitution Act,

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

Sgd:_________________________________________________________

Edward Roberts, Lieutenant Governor of Newfoundland and Labrador

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

MR. SULLIVAN: Mr. Speaker, I move that the message, together with the

Estimates, be referred to a Committee of Supply.

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

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

of Supply and that I do now leave the Chair.

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

Motion carried.

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

Supply, Mr. Speaker left the Chair.

Committee of the Whole

CHAIR (Fitzgerald): Order, please!

We shall now take a few minutes to deliver the budgetary documents to hon.

members.

[Distribution of Budgetary Documents]

CHAIR: Order, please!

The hon. the Government House Leader.

MR. E. BYRNE: Thank you, Mr. Chair.

I move that the Committee rise, report progress and ask leave to sit again.

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

leave to sit again.

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

CHAIR: All those against, nay'.

Motion carried.

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

again, Mr. Speaker returned to the Chair.

MR. SPEAKER (Hodder): Order, please!

The hon. the Member for Bonavista South and Deputy Speaker.

MR. FITZGERALD: Thank you, Mr. Speaker.

Mr. Speaker, the Committee of Supply have made some progress in considering

the matters to them referred and ask leave to sit again.

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

Committee have considered the matters to them referred, have made some progress

and ask leave to sit again.

When shall the Committee have leave to sit again?

AN HON. MEMBER: On tomorrow.

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

tomorrow.

Notices of Motion

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

Board.

MR. SULLIVAN: Thank you, Mr. Speaker.

I give notice that I will on tomorrow move that the House resolve itself into

a Committee of the Whole to consider certain resolutions respecting the

imposition of taxes on tobacco, Bill 6.

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

MR. E. BYRNE: Thank you, Mr. Speaker.

I give notice, and by leave, move the following: that the following Heads of

Expenditure be referred to the Government Services Committee: Department of

Finance; Public Service Commission; Government Services; Transportation and

Works, and Intergovernmental Affairs. That the following Heads of Expenditure be

referred to the Resource Committee: Department of Business; Environment and

Conservation; Fisheries and Aquaculture, and Aboriginal Affairs; Innovation

Trade and Rural Development; Natural Resources; Tourism, Culture and Recreation.

I further move, Mr. Speaker, that the following Heads of Expenditure be

referred to the Social Services Committee: Education; Health and Community

Services; Justice; Municipal and Provincial Affairs; Human Resources, Labour and

Employment, and Labrador Affairs, and the Newfoundland and Labrador Housing

Corporation.

With that, Mr. Speaker, I move that the remaining Orders of the Day be

suspended and that the House now adjourn to return on Monday.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

Has leave been granted for the presentation of the motion regarding the

referral of the heads of expenditure?

AN HON. MEMBER: (Inaudible).

MR. SPEAKER: Leave has been granted.

All those in favour of the motion put forward by the Government House Leader

regarding referral of the heads of expenditure.

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

The motion is that this House will now adjourn until Monday, April 3 at 1:30

of the clock in the afternoon.

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

This House now stands adjourned until Monday, April 3, at 1:30 of the clock

in the afternoon. I do understand that visitors and members are invited to a

reception in the parliamentary lobby.

On motion, the House at its rising adjourned until tomorrow, Monday, at 1:30

p.m.