Newfoundland and Labrador Hansard — Members' Statements; Statements by Ministers — 3 December 2014 (47th General Assembly, 3rd Session, Vol. XLVII No. 50)

2014-12-03

Newfoundland and Labrador — Debates (Hansard)

Newfoundland and Labrador Hansard — Members' Statements; Statements by Ministers — 3 December 2014 (47th General Assembly, 3rd Session, Vol. XLVII No. 50)

2014-12-03

Newfoundland and Labrador — Debates (Hansard)

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December 3, 2014

HOUSE OF ASSEMBLY PROCEEDINGS

Vol. XLVII No. 50

The

House met at 2:00 p.m.

MR. SPEAKER (Verge):

Order, please!

Admit strangers.

Statements by

Members

MR. SPEAKER:

Today we have members'

statements from the Member for the District of Fortune Bay Cape La Hune;

the Member for the District of St. Barbe; the Member for the District of

Kilbride; the Member for the District of Carbonear Harbour Grace; the

Member for the District of Humber Valley; and the Member for the District of

Virginia Waters.

The

hon. the Member for the District of St. Barbe.

MR. J. BENNETT:

Mr. Speaker, I rise

in this hon. House today to congratulate Vallance (Val) Cull and Northern

Boat Repair Limited of Port Saunders on being inducted into the Atlantic

Canada Marine Industries Hall of Fame.

This prestigious distinction was awarded on November 28 at the 2014

North Atlantic Fish & Workboat Show in St. John's.

This

award pays tribute to those who have made a valuable contribution to any

sector of the marine industry.

Recipients are recognized in three categories.

They are Mariner, which recognizes individuals who work on the water;

Processor, which recognizes individuals involved in the processing sector;

and Builder, which recognizes those making a valuable contribution without

having directly participated.

Northern Boat Repair Limited was recognized in the Builder category.

Serving local, national and international customers Northern Boat

Repair Limited was established in 2003 by Mr. Cull and his family.

Depending on the availability of work, the business currently employs

between twenty and fifty people, making it the largest private sector

employer in the region.

Mr.

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

Val Cull and Northern Boat Repair Limited on being inducted into the

Atlantic Canada Marine Industries Hall of Fame.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

the District of Kilbride.

MR. DINN:

Mr. Speaker, through the

Department of Education and Early Childhood Development, the Government of

Newfoundland and Labrador awards 201 scholarships each year to high school

students in Newfoundland and Labrador.

The scholarships range in value from $1,000 to $2,500 and are based

on the Department of Education's scholarship score derived from the result

of public exams.

The

categories of scholarships are: the Junior Jubilee Scholarship of $2,500;

the Constable W.C. Moss Scholarship of $1,000; the Electoral District

Scholarship of $1,000, each awarded to three high school students in each

district; the Centenary of Responsible Government Scholarship of $1,000 each

fifty-five of these scholarships are awarded each year.

the District of Kilbride, the three electoral scholarship winners were: Jane

Qi of Bishops College High in St. John's; Cristian Lacey of St. Bonaventure

College in St. John's; and Courtney Harnum of O'Donel High School in Mount

Pearl. Two students, Meagan

Casey and Sydney Manuel, both of O'Donel High School, were recipients of

$1,000 Centenary of Responsible Government Scholarships.

ask all hon. members to join me in congratulating these scholarship winners

from the District of Kilbride.

Thank you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

the District of Carbonear Harbour Grace.

MR. SLADE:

Thank you, Mr. Speaker.

Mr.

Speaker, I rise in this hon. House today to recognize a long-time resident

of Carbonear who passed away on October 22, 2014 at the age of ninety-two.

George Earle has a litany of community service to the Town of

Carbonear. He was first elected

to council on November 17, 1965 as a councillor.

On November 27, 1969, he was elected as mayor, a position he held

until November of 1973.

George also served as a firefighter, joining the Carbonear Fire Department

in 1966, where he served for ten years.

Since that time and until his death last month, he has remained an

honorary member of the fire department.

recognition of a lifetime of community service to the Town of Carbonear,

Earle's Promenade was officially dedicated on October 30, 1998 by the hon.

Art Reid, Minister of Municipal and Provincial Affairs.

This beautiful promenade is a very popular recreational facility,

enjoyed by locals and visitors alike.

Mr.

Speaker, George Earle was a prominent resident of Carbonear.

His contributions to his community will live on through his legacy.

Mr.

Speaker, I ask all hon. members to join me in recognizing the contribution

of George Earle and express our sincere condolences to his family.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Humber Valley.

MR. BALL:

Thank you, Mr. Speaker.

rise in this hon. House today to congratulate Noah Burnett of Cormack on

winning first place in the junior category at the Canadian Young Speakers

for Agriculture Competition recently held at the Royal Agriculture Winter

Fair in Toronto.

Each

year, the Royal Agriculture Winter Fair hosts the speaking event for young

people between the ages of eleven and twenty-four.

This event gives them an opportunity to express their passion for the

agricultural industry. Noah was

the only competitor from our Province to take

part in this prestigious

speaking competition.

Noah's parents, Ron and Jane, are farmers and at the age of fifteen, Noah is

very interested in continuing with the family tradition of farming.

In his speech, Noah mentioned why he has chosen to pursue a career in

the agricultural industry. When

he does become a farmer, Noah will be the eighth generation of farmers in

this family.

Mr.

Speaker, having the youth of our Province show such passion for this

industry is absolutely remarkable.

ask all members of this House to join me in congratulating Noah Burnett on

his award winning speech and wish him future success with his career

aspirations.

Thank you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Virginia Waters.

MS C. BENNETT:

Thank you, Mr.

Speaker.

rise in this hon. House today to recognize the recipients of the provincial

scholarships to recognize high school students' achievement within the

District of Virginia Waters.

More

than $200,000 in provincial scholarships have been awarded to 201 recent

high school graduates throughout Newfoundland and Labrador, and are awarded

based on public examination results and will help students pursue

post-secondary education.

extend congratulations to Holly Barrett, Cara Engelbrecht and Teba Hamodat

all 2014 graduates from Gonzaga High School recipients of Electoral District

Scholarships.

wish to further congratulate recipients of the Centenary for Responsible

Government Scholarships which include Leanne Raske, Jeremy Costello, Michael

Zurel, Sajid Khayer, Ayla Lawlor, Kurtis Thornhill and Laura McCallum, all

of Gonzaga High. Brett Vokey and

Hannah Boone, representing Holy Heart of Mary Regional High School, and

Clare Snow and Michael Barrett of St. Bonaventure's College.

Our

young people are the key to the future of our great Province, taking a

moment to celebrate their success should prove to all of us the spirit of

hope for the future.

Mr.

Speaker, I ask all hon. members to join me in congratulating these

graduates, recognizing their hard work, and wishing them much success in the

pursuits for their chosen career paths.

Thank you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

Before I recognize the

Member for Fortune Bay Cape La Hune, I want to welcome to the public

gallery two people from her district.

We have Olivia Joe and Alaina Joe.

Alaina has just been selected, back in October, to be the

representative for Newfoundland as Miss Teen Newfoundland and Labrador.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

She is here with her

mother today, and I might add that she is the first Aboriginal ever selected

to be Miss Teen Newfoundland and Labrador.

Congratulations.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Fortune Bay Cape La Hune.

SOME HON. MEMBERS:

Hear, hear!

MS PERRY:

Thank you, Mr. Speaker.

rise in this hon. House today to congratulate Marilyn John for receiving the

Female Lifetime Achievement Award at the seventh annual Atlantic Aboriginal

Entrepreneur Awards, hosted by Ulnooweg Development Group.

We are very proud that Marilyn was recognized for her dedication,

perseverance, and love for her community and people.

Marilyn is very well known across this Island; and I can attest how

deserving she is of this highest honour given her lifetime accomplishments

in both business and community.

Marilyn once served as the Chief of Conne River and brings the same passion

she has exhibited over the years, fighting for recognition of her people, to

make her business ventures a true success.

Her dedication, persistence, and big heart are evident in everything

she does including preservation of the Mi'kmaq culture, heritage and crafts;

successful operation of Dashwood Diner and her catering business; her work

as a teacher's aide at St. Anne's School; and her numerous community

involvements.

ask all members to join me in celebrating Ms John's great achievement.

We wish her continued success as she excels in business and we

encourage her to stay motivated and to share her recipe for success simple

hard work and a great love for what you do.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

Statements by Ministers.

Statements by

Ministers

MR. SPEAKER:

The hon. the Minister of

Advanced Education and Skills.

SOME HON. MEMBERS:

Hear, hear!

MR. O'BRIEN:

Mr. Speaker, I rise in

this hon. House today to talk about the success of the Labrador Aboriginal

Training Partnership. This

partnership is between the Innu Nation, the Nunatsiavut Government, the

NunatuKavut Community Council and the Nalcor Energy-Lower Churchill Project.

This

partnership was formed to ensure Aboriginal people have the education,

training and skills necessary to secure employment opportunities created

through resource development in Labrador.

Aboriginal men, women, and youth are availing of skills development

programs that focus on apprenticeship-type occupations.

Mr. Speaker, examples include those applicable to construction

trades, various camp operations and supervisory and management positions.

Our

government is committed to removing barriers to education and training,

which is integral to achieving long-term success for people throughout

Newfoundland and Labrador. Mr.

Speaker, our support for the Labrador Aboriginal Training Partnership is a

reflection of that commitment.

This

non-profit partnership began in 2009 and as of 2012 had resulted in almost

400 clients obtaining employment.

It is currently supported by over $14 million in funding from the

provincial and federal governments, Nalcor Energy, Innu Nation, Nunatsiavut

Government, and NunatuKavut Community Council.

Since March 2013, Mr. Speaker, through this partnership, ten training

programs have been offered at our Province's post-secondary institutions,

the majority of these through the College of the North Atlantic.

Over 200 Aboriginal people have obtained employment as a direct

result.

Mr.

Speaker, the continued success of the Labrador Aboriginal Training

Partnership will make Aboriginal workers essential to the many significant

projects and development underway or planned in the Labrador region, such as

the Muskrat Falls Project.

Mr.

Speaker, increasing the availability of skilled trade workers has been a top

priority for this government.

The Labrador Aboriginal Training Partnership is an example of how we can

successfully work together to help people obtain skills and the workplace

experiences needed to secure long-term, meaningful employment for the

benefit of themselves, their families, and their communities.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Cartwright L'Anse au Clair.

MS DEMPSTER:

Thank you, Mr. Speaker.

thank the minister for an advance copy of his statement.

While there have been many success stories coming out of LATP, there

have also been many disappointments, especially in the early stages of

Muskrat Falls. There were many

cases where, by the time training was complete, the jobs were filled many

times, by non-Labrador residents.

The IBA clearly states the hiring protocol: Innu first, Labrador

residents second. Unfortunately,

this was not always followed and many who availed of the training are still

looking for work.

The

success of the LATP should not only have been measured in the number of

Aboriginals who were trained but, instead, how many of the trainees received

meaningful employment in their trades.

want to take this opportunity to thank Keith Jacque, Colleen Baikie, and the

other LATP employees in the Happy Valley-Goose Bay office and the outreach

offices throughout Labrador, for their hard work and dedication to all

Aboriginal groups in Labrador.

Thank you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

St. John's Centre.

MS ROGERS:

Thank you, Mr. Speaker.

thank the minister for an advance copy of his statement.

Aboriginal communities have had to work hard, pushing, negotiating,

and insisting to have their rightful place at the table.

It is imperative that governments and its agencies acknowledge the

right of Aboriginal communities to their leadership and expertise in

identifying their blocks and barriers to education, training, and

employment.

is also imperative that provincial governments and agencies acknowledge and

respect their rightful place in their leadership in identifying solutions to

those blocks and barriers.

Aboriginal communities are the experts in this area.

It is only then can effective and meaningful progress be made.

Government and agencies must listen to Aboriginal communities

MR. SPEAKER:

Order, please!

remind the member her time is expired.

The

hon. the Minister of Environment and Conservation.

SOME HON. MEMBERS:

Hear, hear!

MR. CRUMMELL:

Mr. Speaker, I rise today

in this hon. House as the Minister Responsible for the Office of Climate

Change and Energy Efficiency to announce the launch of a new climate

information portal as part of our Community Accounts Web site.

The portal has been developed in partnership with the Department of

Finance and responds to the growing need for decision makers to have access

to climate information so they can factor climate change considerations into

their planning.

Mr.

Speaker, the Community Accounts Web site was launched in 2002 to ensure the

people of our Province can make evidence-based decisions using high-quality

community and regional information.

Community Accounts is an innovative, web-based tool that provides users with

reliable sources of data. Users

can find important information about health, income, education, literacy and

labour markets in the Province, as well as key demographic information.

Mr.

Speaker, through the launch of the new climate information portal on this

Web site, residents of Newfoundland and Labrador now have access to

historical weather data at a community and regional level for the very first

time. This data, which includes

temperature, precipitation and wind data, is collected from over seventy

Environment Canada weather stations throughout the Province and is

invaluable when governments, businesses and organizations make decisions

concerning land use planning, municipal zoning, disaster mitigation

planning, and infrastructure design.

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

MR. CRUMMELL:

This information will

allow students to better understand how climate change is affecting them and

their communities.

Mr.

Speaker, our government recognizes rising global temperatures are causing

climates throughout the world to change, and this is having a significant

impact on businesses, communities, and governments at every level.

ensuring community leaders, engineers, emergency planning agencies,

governments and other stakeholders have access to up-to-date, high-quality

data we are helping ensure the decisions made today incorporate the best

possible information about how our climate is changing.

our 2011 Climate Change Action Plan, Mr. Speaker, we committed to improving

Newfoundland and Labrador's resilience to climate change.

As weather patterns are changing, new risks and opportunities are

emerging that can affect every economic sector and community in our

Province. Our government remains

committed to ensuring our Province is equipped with the information and

tools needed to minimize these risks and maximizes these opportunities.

To explore the new climate information portal of Community Accounts,

I encourage members to visit

www.nl.communityaccounts.ca/climate .

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

The

Minister of Environment and Conservation is delivering his statement.

I would ask all members for their co-operation, please.

The

minister, to continue.

MR. CRUMMELL:

I have finished, Mr.

Speaker, thank you.

Even

though you may not have heard it, Mr. Speaker, I did finish.

MR. SPEAKER:

Thank you, Minister.

The

hon. the Member for St. George's Stephenville East.

MR. REID:

Thank you, Mr. Speaker.

thank the minister for an advance copy of his statement.

The Community Accounts site was launched under a Liberal government

and provides a wealth of data on a range of subjects.

It is said that we love to talk about the weather in Newfoundland and

Labrador, so providing data on seventy weather stations throughout the

Province should enrich this discussion.

On a

serious note, climate change is the challenge of our times.

Government committed to creating a culture of conservation in their

Energy Plan, but we have seen very little on that front.

Government should view climate change as an opportunity to diversify

our economy while protecting our environment.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

St. John's East.

MR. MURPHY:

Thank you, Mr. Speaker.

thank the minister for the advance copy of his statement here today.

Congratulations on this new and, I think, very important initiative

that is brought forth in the Province.

The Community Accounts are an excellent resource, and this new portal

will be a useful tool.

remind government that a lot of the decision makers who will factor climate

change into their considerations will be municipal leaders, and that is a

very important note. Whenever

using this portal, of course, and adjusting for climate change, we know they

are going to need more funding so that they can, for example, replace

culverts, do wharves, that sort of thing, and make repairs to roads and

roadside construction. They are

going to need more money.

The

question is to government: Is government going to be ready to meet the

financial challenge of climate change?

Thank you very much.

MR. SPEAKER:

The hon. the Minister of

Natural Resources.

SOME HON. MEMBERS:

Hear, hear!

MR. DALLEY:

Mr. Speaker, I rise today

to congratulate the winners of the Daphne Taylor Milk Quality Award of

Excellence. The award was

created in 1997 to recognize excellence in the production of quality milk.

The

award commemorates Daphne Taylor, a farmer who made very significant

contributions to the dairy sector and was committed to food safety.

Unfortunately, Ms Taylor passed away prematurely from cancer.

We are proud to remember her through this award.

These awards were presented at the Dairy Farmers of Newfoundland and

Labrador's annual general meeting held recently in Corner Brook.

For thirty-two years, this organization has been helping dairy

farmers grow their businesses.

Mr.

Speaker, the dairy sector is one of Newfoundland and Labrador's most

important agricultural industries and it accounts for about $47 million

annually. The provincial

government recognizes the opportunities and challenges facing this sector,

and we are committed to its long-term success.

Our

government continues to provide support through a grain research program

that is evaluating various varieties of spring and winter grains to reduce

feed costs for farmers. We also

continue to support the Land Development Program which is helping dairy

farmers meet land requirements for the dairy sector.

The

provincial government, milk producers, and processors recognize the

importance of producing high-quality milk.

The Daphne Taylor Milk Quality Award of Excellence is competitive.

Only the top three farms, unless there is a tie, are recognized for

their product.

This

year's first place winner is Sunrise Dairy, owned by Jeff Greening and

located in Musgravetown. For

second place there was a tie between N & N Farms Ltd., owned by Lee Noel in

Cormack, and Glenview Farm of Kilbride, which is operated by the Walsh

brothers.

Rounding out the winners were River Bend Dairy, operated by Jeff Peddle of

Lethbridge, and Connors Dairy Farm of Torbay, in third place.

Mr.

Speaker, we also have the Daphne Taylor Award of Merit which is a

non-competitive award presented to those producers who supply milk to a

recognized level of merit. The

recipients of this year's award of merit were Beauty View Farms owned by

Mary White in Port Blandford, Triple G Farms owned by Frazer Greening of

Musgravetown, and Rideout's Dairy Farm owned by Melvin Rideout in Cormack.

Mr.

Speaker, I congratulate the winners of this award and I commend our farmers

and producers for the work they are doing.

Thank you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

want to thank the minister for the advance copy of his statement today.

On this side of the House we share in recognizing the proud winners

of the Daphne Taylor Milk Quality Award of Excellence and the Award of

Merit.

is kind of with mixed emotions that I stand here today, knowing Daphne

Taylor for many years, as she was someone who lived in my district.

We all remember, or I remember certainly, her unfortunate passing

back in 1996.

I am

sure the dairy farmers today are clearly honoured by following in her

footsteps the great job that she did.

She is known to be a very passionate farmer, a very hard-working

woman, and made tremendous advancements for the dairy industry not only in

her own community of Cormack but, by this recognition, throughout the

Province.

think the award winners can be proud today that they follow in Daphne's

legacy. We are all proud of the

hard work the dairy industry is doing and the contribution both to our

economy and the healthy living lifestyle that it creates for many people

around the Province.

Today I commend the winners. I

would say I am very proud today since two of the six that are mentioned in

this statement are from my own District of Humber Valley, two from Cormack.

It is a very vibrant industry in my district.

I am very proud of the great work they do.

think I would be remiss if I sat down today without recognizing the Member

for Exploits, who spent many years selling this product on the road in

Newfoundland and Labrador.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Third Party.

MS MICHAEL:

Thank you very much, Mr.

Speaker.

thank the minister for the advance copy of his statement.

I also congratulate all those who took

part in these awards.

The dairy industry is an important provincial industry, not only as

an employer but also in supporting the good health of the people of the

Province.

remind the minister that we are still waiting for a food security plan from

this government. At this time of

year, with a big focus on food banks helping the needy, it is important we

work towards ensuring there is a plan in place so that Newfoundlanders and

Labradorians have access to adequate, healthy, and affordable food all the

time, not just during the holiday season.

The dairy industry must be a key part of this plan.

Thank you very much, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Minister of

Transportation and Works on a point of order.

MR. BRAZIL:

Thank you, Mr. Speaker.

Yesterday in the House I was asked would I table the statutory declaration

from Humber Valley Paving related to Project 1-12.

I am happy to table this to the House today, Mr. Speaker.

MR. SPEAKER:

Order, please!

There is no point of order.

Oral

Questions.

Oral Questions

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

thank the minister for actually tabling that document today.

Mr.

Speaker, the Auditor General said he was not able to satisfy himself why two

ministers, within thirty minutes, independently contacted the deputy

minister to inquire about the status of the Humber Valley Paving contract on

the day before the PC leadership deadline.

The Premier has said that he is satisfied.

So, obviously, if he is satisfied and the AG is not, he must have

those answers.

ask the Premier: Can you tell us why, on the morning of March 13, just

before a Cabinet meeting, two ministers made inquiries into the status of

the Humber Valley Paving contract within thirty minutes of each other?

MR. SPEAKER:

The hon. the Premier.

SOME HON. MEMBERS:

Hear, hear!

PREMIER DAVIS:

Thank you, Mr.

Speaker.

discussed in this House, the Auditor General has completed a comprehensive

review and investigation of the matters involving Humber Valley Paving.

He did so at the request of this government.

He has carried out a very extensive review, has had unobstructed

access to government officials, to documentation that is in the possession

of government, as well, has had the opportunity to interview under oath,

examine and cross examine under oath, any witnesses or officials that he

felt necessary to interview.

has done that, Mr. Speaker. He

has completed a report, and he has carried out and provided that report to

us with five recommendations.

The member opposite is referring to a couple of members and discussions they

had. I think the Auditor General

has articulated in the report the explanations provided for those phone

calls.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Certainly from that

answer, I say, Mr. Speaker, I do not think the public of Newfoundland and

Labrador are any further advanced in answering that question for sure.

One of the ministers who is named in the Auditor General's report is

still in Cabinet.

ask the Minister of Advanced Education and Skills: Since the Auditor General

was not able to determine why you called the deputy minister of another

department on March 13 on this issue, will you now stand and tell the people

of the Province why you were involved?

MR. SPEAKER:

The hon. the Premier.

SOME HON. MEMBERS:

Hear, hear!

PREMIER DAVIS:

Thank you, Mr.

Speaker.

just want to reiterate to Members of the House of Assembly and also the

members of the general public, the question that is being asked by the

member opposite was asked of the minister.

He has provided an explanation.

He did that under oath through an oral interview and examination by

the Auditor General; and, not only the Auditor General, Mr. Speaker, but

also by legal counsel that was retained by the Auditor General who was also

participating in these examinations of witnesses, as I understand.

Mr.

Speaker, the response given by the member has been articulated in the report

of the Auditor General. Mr.

Speaker, we accept the report of the Auditor General.

We have committed to implement the recommendations of the Auditor

General, and we will carry out that, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

Well, if the Premier accepts the report on page 53 of that report,

contrary to what the Premier just said, the AG said this is a conclusion

that, We have not been able to satisfy ourselves why two Ministers, within

hour, independently contacted the Deputy Minister

Since the Premier could not answer that question, I ask the Minister of

Advanced Education and Skills: Since the Premier will not answer, will you

tell the people of the Province why that call was made?

MR. SPEAKER:

The hon. the Minister of

Advanced Education and Skills.

SOME HON. MEMBERS:

Hear, hear!

MR. O'BRIEN:

Mr. Speaker, I do not

mind getting up in this House and reiterating in regard to that call I gave

to the Auditor General under oath, along with a lawyer present.

As a matter of fact, I will answer it exactly the way I answered the

Auditor General.

is not uncommon for me to call deputy ministers in regard to issues.

I made a number of calls to Terry Paddon when he was Deputy Minister

of Finance. I had two issues

with my district that I wanted to discuss.

One was the Trans-Canada Highway east of Gander.

The other was some flooding in regard to a constituent of mine in the

Gander Bay area at Magee intersection.

well, I had a curiosity question, being the past Minister of Fire and

Emergency Services at the time and on the ground in regard to that fire.

I had not heard at that particular time, other than by rumour, that

there were issues in regard to the paving contracts in Labrador.

That was the thirty-second conversation with the deputy minister.

MR. SPEAKER:

Order, please!

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

appreciate the minister's answer.

It is obviously quite different from what the Premier said.

In mentioning of the AG's report, the minister also said that he had

heard colleagues who were talking about issues around HVP, Humber Valley

Paving. There were also a number

of matters on his mind, as the minister just said, but really what happened

is the conversation ended once the discussion went to Humber Valley Paving.

ask the minister: What was the reason for calling the deputy minister on

that morning?

MR. SPEAKER:

The hon. the Minister of

Advanced Education and Skills.

SOME HON. MEMBERS:

Hear, hear!

MR. O'BRIEN:

I will repeat again, Mr.

Speaker.

had two important issues that I wanted to discuss with the Department of

Transportation, either the deputy minister or the ADM responsible for roads,

and that was two issues. One was

the contract in regard to the Trans-Canada Highway East of Gander.

That was supposed to be paved the year previous, but had not due to

the occupational health and safety issues that we encountered that year, and

I wanted to see when that paving would start because it was an important

thing for my district.

well, an important issue for a constituent of mine was the issue in regard

to flooding on the corner of Magee and Gander Bay Road.

A curiosity question, being the past Minister of Fire and Emergency

Services, I asked the question: Was there any truth?

I was told that there were issues with the paving contract, the

department was working on it, and that was the end of the conversation, Mr.

Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

Well, according to the deputy minister, what happened was that once the

conversation ended with Humber Valley Paving, there was nothing else

discussed. That is the

conclusion in the AG's report.

The Auditor General said he was not able to satisfy himself why the contract

had to be concluded the day before the close of the PC leadership.

So I

ask the Premier: Since the AG was not able to find out, can you tell us why

this contract had to be concluded on that day one day before the close of

the PC nomination?

MR. SPEAKER:

The hon. the Premier.

SOME HON. MEMBERS:

Hear, hear!

PREMIER DAVIS:

Thank you, Mr.

Speaker.

Mr.

Speaker, the Premier of the day, Premier Marshall, when he learned of these

circumstances, reviewed the circumstances.

He considered the facts that had occurred.

He considered the inquires and concerns, as being expressed even

today by members opposite.

The

Premier of the day had options available to him.

He could leave it as status quo take no action.

He could contact the police and ask them to do an investigation.

He could call in the Auditor General and ask the Auditor General to

an investigation. He could have

also, if he wished, called for a public inquiry.

chose to call in the Auditor General.

The Auditor General is a competent person, has a competent office,

Mr. Speaker. He has carried out

his work, I believe, diligently and competently as a professional.

He has relied on the advice of others and legal advice.

He has finalized his study of the factors, he has submitted a report

for public consumption, and we accept his recommendations.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

Well, the Premier knows that those recommendations that were made in the

AG's report are extremely vague when you see considerations, adequate

documentation these are pretty much what you would expect from this.

What I am not hearing is why this contract had to be concluded on the

day before the PC leadership. If

Premier Marshall was here today, I believe he would take this to the logical

next step, which is a public inquiry.

Why

was this contract terminated on the day before the PC leadership?

MR. SPEAKER:

The hon. the Premier.

SOME HON. MEMBERS:

Hear, hear!

PREMIER DAVIS:

Thank you, Mr.

Speaker.

Mr.

Speaker, the Premier had options available to him.

Members opposite agreed with the position taken by the Premier.

Members opposite made comments that as long as it is done where

evidence and information is taken under oath.

That was done.

The

Auditor General has broad powers, Mr. Speaker.

In comparison, he has done a good job of looking at all of the facts.

He has done a thorough investigation and a thorough review of the

facts which resulted in five recommendations.

Mr.

Speaker, we take the recommendations seriously.

I am not sure about the tone of the comment made by the member

opposite when he references the recommendations by the Auditor General, but

I can tell you us on this side of the House, we accept those recommendations

and we are committed to implementing all of those recommendations.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

The

AG went on to say in many places in this report that he was not satisfied.

Ironically, the Premier seems to be satisfied.

When

we supported the AG going in, it was a step one.

Now that the AG is not satisfied, I say to the Premier the Auditor

General's report confirms there are still many unanswered questions.

We know the AG had no authority to compel Humber Valley Paving or

anyone associated with the company to answer the inquiries; therefore, we

only have one side of the story, the Premier's side of the story.

ask the Premier: Why are you denying the people of the Province the full

story by refusing to call a public inquiry?

MR. SPEAKER:

The hon. the Premier.

SOME HON. MEMBERS:

Hear, hear!

PREMIER DAVIS:

Thank you, Mr.

Speaker.

The

Auditor General had access to, I think, 185 officials and former officials

in various government departments.

I think there are fourteen different government departments, Mr.

Speaker. He came in and had

unobstructed access to any records and any individuals that he so chose.

interviewed, under oath, sixteen individuals, some of those government and

some of those outside of government.

His report even references Humber Valley Paving, as talked about by

the member opposite. He was

satisfied with the representation that was recommended by Humber Valley

Paving. It is reflected in his

report.

Mr.

Speaker, the Auditor General has done the job he has been asked to do.

He has done that. He has

done the work competently. He

has done it completely. He has

made the recommendations, Mr. Speaker.

We accept the recommendations.

We respect the work that has been done by the Auditor General.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

The

AG, in the various places in his report, goes on to say that the minister

instructed his department not to prepare a briefing note; the Premier was

not told, did not find out until five weeks later; no documentation prepared

to support the March 13 decision; no operational value, no operational

reason to cancel this contract.

you do not need a public inquiry, will you please stand and answer the

question: What happened on that day to cancel that contract?

Why was it so important?

MR. SPEAKER:

The hon. the Premier.

SOME HON. MEMBERS:

Hear, hear!

PREMIER DAVIS:

Thank you, Mr.

Speaker.

is important to understand the responsibilities, the roles, and the

legislation around the Auditor General.

The Auditor General has very broad recommendations.

The

member opposite continues to in a certain way, it seems to me try to

paint a picture that the Auditor General has not carried out his duties.

He had full right and access to compel the attendance of persons,

under the act, to come forward, to provide evidence, and to be interviewed.

He references in his report he was satisfied with responses from

certain people that he had contacted.

Mr.

Speaker, we are not questioning the work and the decisions made by the

Auditor General. We appreciate

the work that is done by the Auditor General.

Members opposite also were in favour of the Auditor General, I would

submit, until they did not get the answers they had hoped to get.

Now they are changing their tune and they want to take a different

process.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

There seems to be some confusion on the work of the AG here because the AG,

to our knowledge, has no authority to compel Humber Valley Paving or anyone

associated with the company to answer these inquiries.

the AG cannot do it I say to the Premier: If you really want to get those

questions answered, will you call for the public inquiry?

MR. SPEAKER:

The hon. the Premier.

SOME HON. MEMBERS:

Hear, hear!

PREMIER DAVIS:

Thank you, Mr.

Speaker.

The

Auditor General has vast powers; there is no doubt about that.

Under examination and subpoena,

section 18 of the Auditor General

Act, it allows him the opportunity to examine a person on oath or

affirmation regarding a matter pertinent to an account submitted to the

Auditor General for audit and the oath.

It goes on to say in order to compel the attendance of person under

subsection (1), he may do certain things, Mr. Speaker.

So, it is outlined in the legislation.

The

report by the Auditor General indicates that, with regard to Humber Valley

Paving, there was a recommendation in discussion with Humber Valley Paving

about representation for Humber Valley Paving.

He indicates in his report he was quite satisfied with the suggested

recommendation and followed that, and conducted interviews with at least two

individuals who were formerly involved with Humber Valley Paving.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

know he is not satisfied. Of

course, in order for the AG to do that, it would require an extra step: make

application to a judge.

Mr.

Speaker, on another note, the Premier is now claiming that government

communications should be more secret.

He wants to block more communications from the Premier's Office, as

if Bill 29 really did not go far enough.

ask the Premier: Why do you want to keep more information secret from the

people of Newfoundland and Labrador?

MR. SPEAKER:

The hon. the Premier.

SOME HON. MEMBERS:

Hear, hear!

PREMIER DAVIS:

Thank you, Mr.

Speaker.

Let

me be clear on this. We have a

committee doing work on the review of our Access to Information and

Protection of Privacy legislation.

They are, I believe, a stellar group of very qualified individuals

who are carrying out that work.

Mr. Speaker, I will be very clear that I have full intentions to accept all

recommendations from that committee's work.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

Well, the Premier wants to be very clear about openness and transparency to

the people of the Province, and the Premier says that he is concerned about

the privacy of constituents, that right to folks in this Assembly, the MHAs.

ask the Premier: If you are so concerned about constituency privacy, why do

you still require MHAs to send constituent requests through a minister's

appointed political staff?

MR. SPEAKER:

The hon. the Premier.

SOME HON. MEMBERS:

Hear, hear!

PREMIER DAVIS:

Mr. Speaker, I am not

certain I understand exactly what the member opposite is trying to suggest,

but I want to be clear about the Access to Information and Protection of

Privacy because it is a very important matter.

We,

as a government, have called in an expert panel to review our Access to

Information and Protection of Privacy legislation.

We have clearly stated, as I have done here today, that we are fully

going to accept the recommendations from that panel.

We look forward to receiving a report, and we look forward to

bringing legislation to the House of Assembly at our first opportunity after

receiving that report.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

What

I was getting at is right now as MHAs, at least MHAs on this side of the

House, if we need to address and speak to someone in a department, what we

must do is go through the EAs or the political staff of a minister.

ask the Premier: Will you now lift that so the constituents that we speak

with and work with on behalf of the constituents in our districts will you

now lift that and let us go directly and speak directly to the staff

involved?

MR. SPEAKER:

The hon. the Premier.

SOME HON. MEMBERS:

Hear, hear!

PREMIER DAVIS:

Thank you, Mr.

Speaker.

I am

not aware of any such policy in government.

SOME HON. MEMBERS:

Oh, oh!

PREMIER DAVIS:

Just hold on.

MR. SPEAKER:

Order, please!

PREMIER DAVIS:

I am not aware of any

such policy, set policy in government.

I know it has been a practice as a co-ordinated effort on the flow of

information, but I am quite willing to have a look at it.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

St. John's South.

MR. OSBORNE:

Mr. Speaker, the

shipyards that have submitted proposals to build our new ferries base their

offers on approved drawings. The

offers were approved by international classification societies such as the

American bureau of shipbuilding, meaning that they met very stringent

standards.

ask the minister: What justification do you have for saying that the

accepted proposal, which is tens of millions of dollars more expensive, is

worth the money?

MR. SPEAKER:

The hon. the Minister of

Transportation and Works.

SOME HON. MEMBERS:

Hear, hear!

MR. BRAZIL:

Thank you, Mr. Speaker.

want to clear up for the House that we had a very comprehensive process in

evaluating this contract, Mr. Speaker.

We had an RFP. We put it

out to the market. A number of

proponents came back and bid on this contract, Mr. Speaker.

Some were non-compliant.

They did not make the cut, because this was about ensuring we had the best

shipyard to build the piece of equipment that we wanted.

That was the whole process that we used.

is about the technical abilities.

It is about the quality of the product.

Pricing is a part of it, but it is not the only part of it.

As the member brought up yesterday about BC Ferries and their pricing

arrangements, BC Ferries did not select the lowest price or the highest.

It is the same thing we did here.

Damen were in the middle, not the highest, not the lowest.

Thank you, Mr. Speaker.

MR. SPEAKER:

Order, please!

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

St. John's South.

MR. OSBORNE:

BC Ferries, Mr. Speaker,

is getting a vessel that can take 600 passengers versus our 200 passengers

for almost the same price. Other

proposals came from world-renowned shipbuilders, some of the best

shipbuilders in the world, I say.

Some of these yards have built vessels from Maersk that are

registered right here in our Province.

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

MR. OSBORNE:

Some of the yards are

currently building ferries for other provinces.

Some of them are currently building cruise ships.

ask the minister: Is he saying that these other shipbuilders are not capable

of providing quality vessels to this Province at the same time saving tens

of millions of dollars for the taxpayers of this Province?

MR. SPEAKER:

The hon. the Minister of

Transportation and Works.

SOME HON. MEMBERS:

Hear, hear!

MR. BRAZIL:

Thank you, Mr. Speaker.

need to clarify something also.

BC Ferries are building three vessels for $253 million.

We are getting two vessels for $100 million, Mr. Speaker.

I wanted to clarify that.

my hon. colleague here did say, there is a big difference.

I do not know if the member has been in Fogo in March when there is

three feet of rafted ice there or eighty-five kilometres of wind.

I do not know if he has been in the tickle going to Bell Island when

there is 110 kilometres of wind.

It is a total different set up here.

Ice

capacity, ice class, the engines, the thrusters have to be at a certain

level. Damen Shipyards are one

of the best in the world. We did

a full assessment. We got the

best quality, the best return on our investment.

We are very proud of having a contract with Damen to replace the

vessels that are needed here to make sure the people of Fogo Island, Change

Islands, and Bell Island are provided with

MR. SPEAKER:

Order, please!

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

St. John's North.

MR. KIRBY:

Mr. Speaker, this

government's decade of inaction on child care has put Newfoundland and

Labrador last in the country in access to child care spaces.

All of the Atlantic Provinces, except us, have established

demonstration sites for integrated models of child care delivery in schools.

ask the minister: Why has this government dragged its feet on integrated

child care delivery in schools instead of keeping up?

MR. SPEAKER:

The hon. the Minister of

Education and Early Childhood Development.

SOME HON. MEMBERS:

Hear, hear!

MS SULLIVAN:

Thank you very much, Mr.

Speaker.

Mr.

Speaker, according to those reports we have made the most significant

progress in the country in terms of moving forward and providing child care

spaces, and in providing integrated demonstration sites.

That is an area where we have committed to taking a look, Mr.

Speaker, but what we have learned from those two reports is that

Newfoundland and Labrador clearly is on the right path.

We moved from a 1.5 to a six.

Mr. Speaker, six out of fifteen is not exactly where we want to be,

but it is certainly a whole lot better.

Mr.

Speaker, the top mark received was a ten out of fifteen.

So I do not want people in the Province to think that we are really

all that much far behind.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

St. John's North.

MR. KIRBY:

Mr. Speaker, we were last in the last report, so we had nowhere to go but

up.

Integrated child care delivery is a smarter way to use education dollars and

find local solutions to child care shortages in our rural communities.

Both the McCain Foundation and the Jimmy Pratt Foundation have even

offered their own funding to government to pay for integrated child care

pilot projects in schools.

ask the minister: Why have you ignored the advice of those foundations and

turned down that offer for funding to provide pilot projects for integrated

child care delivery in schools?

MR. SPEAKER:

The hon. the Minister of

Education and Early Childhood Development.

SOME HON. MEMBERS:

Hear, hear!

MS SULLIVAN:

Thank you, Mr. Speaker.

Mr.

Speaker, as I said, we have made the most significant progress from 2011 to

2014, and we shall continue on in that manner.

Actually, if he had read what the Pratt Foundation had said, the

Pratt Foundation is very supportive of what we have done, in fact commended

Newfoundland and Labrador for the progress made.

We will continue to work with the Pratt Foundation, with the McCain

Foundation, and any others, Mr. Speaker, as we continue to ensure child care

in Newfoundland and Labrador becomes the best in the country.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Cartwright L'Anse au Clair.

MS DEMPSTER:

Mr. Speaker, we get calls

from constituents with a variety of disabilities who cannot find work for

lack of employment programs tailored to their needs.

While we have a supported employee program for persons with IQs under

seventy, this is a fraction of the disability community.

There are tremendous gaps in employment services.

ask the minister: What concrete initiatives will you implement to support

the employment of persons with disabilities who exceed the IQ cut-off?

MR. SPEAKER:

The hon. the Minister of

Advanced Education and Skills.

SOME HON. MEMBERS:

Hear, hear!

MR. O'BRIEN:

Mr. Speaker, this is a

really important issue to me as a minister, and this Government of

Newfoundland and Labrador. As a

matter of fact, when I was responsible for the Division of Persons with

Disabilities, I instituted an advisory board to advise me on such things as

just what the hon. member mentioned.

It is really, really important that we support these

people. We have supported them

in various programs across all government departments, and continue to do

so, Mr. Speaker. The minister

responsible now for persons with disabilities is currently not in the House;

but, in the meantime, I will consult with him in regard to the question.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for Cartwright L'Anse au Clair, for a quick question.

MS DEMPSTER:

Mr. Speaker, it has been two-and-a-half years since government launched its

inclusion strategy for persons with disabilities.

So I ask the minister: How do you justify waiting three

years to commit to identifying what your strategy will actually do for

persons with disabilities?

MR. SPEAKER:

The hon. the Minister of Advanced Education and Skills, for a quick reply.

SOME HON. MEMBERS:

Hear, hear!

MR. O'BRIEN:

Mr. Speaker, if the hon. member would actually engage with that community,

she will find that the disability community is quite pleased with the

progress we have made in regard to the advisory board to the minister

responsible, the programs that we have within the Department of Advanced

Education and Skills supporting as a matter of fact, I made the statement

at one of the events that I was at.

This is not about inclusion; this is about equality and this is about

freedom.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of the Third Party.

MS MICHAEL:

Thank you very much, Mr. Speaker.

The Premier said yesterday that he is prepared to

govern by making difficult decisions.

The last time this government imposed fiscal restraint, it cut

services that people needed, like the funding for the Vera Perlin Society

and the Coalition of Persons with Disabilities.

I ask the Premier: Will his difficult decisions include

further cuts to essential programs for people with disabilities in this

Province?

MR. SPEAKER:

The hon. the Premier.

SOME HON. MEMBERS:

Hear, hear!

PREMIER DAVIS:

Mr. Speaker, people of a variety of walks of life are very important to us

as a government, especially those who live with challenges on a day-to-day

basis in this Province. We have

worked very hard to provide benefits and opportunities to those people.

Mr. Speaker, we find ourselves, as a Province and as a

government, in a very challenging time.

We know that with the oil prices where they are today it is providing

us with challenges that were unforeseen by anyone in the world.

We are willing and we are committed to make the decisions that we

have to make as a government in order to deal with the circumstances that we

face today.

We know there are challenging times, we have

challenging times ahead and we have some very difficult decisions to make,

but we are quite willing to make those decisions, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of the Third Party.

MS MICHAEL:

Thank you very much, Mr. Speaker.

So now I am asking the Premier once again, because of

what he just said: These hard times and difficult decisions, will they

include ignoring the need for improved services for persons with

disabilities, such as children with autism?

They have challenges too, Mr. Speaker.

MR. SPEAKER:

The hon. the Premier.

SOME HON. MEMBERS:

Hear, hear!

PREMIER DAVIS:

Thank you, Mr. Speaker.

We have continued to make significant investments for

families, such as families with children who have autism.

We have done that, Mr. Speaker.

We have made significant investments in a variety of areas for people

who have asked for those services, need those services, and rely on the

support of government. We have

made significant investments.

We have said time and time again that we know there are

people who would like to see us do more in a variety of areas, and would

like to see us make further investments in a variety of areas.

We have to make those decisions within the fiscal capacity that we

have as a government.

We know that the future for us as a government is going

to be challenging when it comes to our fiscal capacity.

We are willing to govern.

We are committed to govern. We

are going to continue to work together.

The Finance Minister is engaging with stakeholders and

myself on a regular basis. We

will continue to do our work, Mr. Speaker, as a government.

We will accept our responsibilities and we will make the best

decisions we can for the people of the Province.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

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

MR. MURPHY:

Mr. Speaker, employment of people with disabilities in Newfoundland and

Labrador is low by Canadian standards.

Government's Opening Doors Program has a long wait-list because

departments simply are not using it.

Last year in Estimates, the Minister of Finance said that he was not

satisfied with this and that the program would be reviewed.

Mr. Speaker, I ask: When is government going to fix the

Opening Doors Program as it promised in 2013?

MR. SPEAKER:

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

SOME HON. MEMBERS:

Hear, hear!

MR. WISEMAN:

There are so many ministers over here who are so anxious to jump in and

provide adequate answers to the members of the Opposition, Mr. Speaker.

The Opening Doors Program is a real good example of the

kind of investment that this government has made in advancing opportunities

for people who have tremendous talent and tremendous ability, but sometimes

have some challenges in finding employment.

Mr. Speaker, this is, as I said, an example of what we have done as

we build on some things that we have established in the office of persons

with disabilities as an example.

This is an area where as an employer, government as an

employer not a public policy maker but government as an employer creates

employment opportunities for persons with disabilities.

We are very proud of the investments we have made in this program.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for St. John's East, time for a quick question.

MR. MURPHY:

Thank you, Mr. Speaker.

We have heard from the disabled community that the

Opening Doors Program simply is not working.

What is government going to do about it?

MR. SPEAKER:

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

SOME HON. MEMBERS:

Hear, hear!

MR. WISEMAN:

As always, Mr. Speaker, we look forward to having input from any interested

group or individuals who have knowledge of, or an opportunity to have

knowledge of, and have something to contribute to a debate and a discussion

that helps us improve the services we provide to people of Newfoundland and

Labrador.

I look forward to and welcome anyone who wants to visit

with me and have the kind of discussion share with me their thoughts on

how we may improve this service and this program.

We are always welcoming those kinds of inputs from any interested

people, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

Order, please!

The time for Question Period has expired.

The hon. the Member for St. John's South, on a point of

order.

MR. OSBORNE:

Yes, Mr. Speaker, during Question Period, the Minister of Transportation

indicated that the British Columbia ferry group were paying $210 million for

three ferries. That number is

not accurate, Mr. Speaker; it is $165 million.

If you include the tariff, it is accurate; but, for some reason, he

does not believe we need to pay the tariff here.

MR. SPEAKER:

Order, please!

There is no point of order.

Presenting Reports by Standing and Select Committees.

Tabling of Documents.

Notices of Motion.

Notices of Motion

MR. SPEAKER:

The hon. the Government House Leader.

MR. KING:

Thank you, Mr. Speaker.

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

entitled,

An Act To Amend The Provincial Offences Act, Bill 35.

MR. SPEAKER:

Further notices of motion?

The hon. the Minister of Finance and President of

Treasury Board.

MR. WISEMAN:

Thank you, Mr. Speaker.

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

entitled,

An Act To Revise And Consolidate The Law Respecting The Control Of

Liquor In The Province, Bill 34.

MR. SPEAKER:

Further notices of motion?

Answers to Questions for which Notice has been Given.

Petitions.

Petitions

MR. SPEAKER:

The hon. the Member for Carbonear Harbour Grace.

MR. SLADE:

Thank you, Mr. Speaker.

To the hon. House of Assembly of the Province of

Newfoundland and Labrador in Parliament assembled, the petition of the

undersigned humbly sheweth:

WHEREAS a non-consumption advisory was issued for

number three well (drinking water) in the Town of Freshwater on June 20,

2006 due to exceeded levels of arsenic; and

WHEREAS this well services forty-four residents in the

Town of Freshwater and remains their only source of drinking water; and

WHEREAS any consumption of water from the well will pose a significant

health hazard to the consumer;

WHEREUPON the undersigned, your petitioners, humbly

pray and call upon the House of Assembly to urge the Government of

Newfoundland and Labrador to provide the necessary resources to the Town of

Freshwater in order to provide clean and safe drinking water to residents

affected by well number three.

As in duty bound, your petitioners will ever pray.

Mr. Speaker, I am just going to give you some facts on

this. To date, in Newfoundland

and Labrador, there are 150 towns and communities on boil orders, also a

number of these are on a do-not-consume order.

This is the case, Mr. Speaker, in Freshwater.

Arsenic levels in this well are four times the allowable Canadian

limit.

Mr. Speaker, we discovered

MR. SPEAKER:

Order, please!

Orders of the Day

Private Members'

Day

MR. SPEAKER:

Order, please!

remind the member, normally you get three minutes for a petition, but this

being Wednesday, Private Members' Day, and in accordance with our Standing

Orders, we now go to the Member for St. John's South to begin the petition.

The

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

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

The

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

MR. OSBORNE:

Thank you, Mr. Speaker.

Mr.

Speaker, we brought in a private member's resolution today calling on

government to call an inquiry into the Humber Valley Paving situation.

Looking at the Auditor General's report, I just wanted to point out

some of the reasons why we believe an inquiry is important.

The Auditor General did get some of the information but he was not

able to get all of the information, and there were a number of cases in the

Auditor General's report where he simply was not satisfied with the level of

information he has received.

inquiry, Mr. Speaker, would provide greater information, a greater level of

information. People could be

subpoenaed from outside of government.

The Auditor General is tied to only being able to call and demand

that government officials and government members and government agencies

come to the table, but outside individuals, private companies, private

individuals, cannot be subpoenaed by the Auditor General.

You

look at some of the facts, Mr. Speaker.

Progress payments paid on a bi-weekly basis were not in accordance

with the terms of the contract, and the Auditor General points out that

could have created an unfair advantage to Humber Valley Paving.

That is just one of the instances we are talking about here.

you look at the evaluation of the decision to mutually agree to cancel the

contract that Humber Valley Paving had on March 13, 2014, that was not

appropriately documented, Mr. Speaker.

There was no documentation.

The urgency to conclude that agreement resulted in an evaluation

that, with the benefit of more time, would have given an opportunity to more

fully consider all options available to the department.

That

was not made available to the department, and as a result, Mr. Speaker we

are responsible to the people of the Province and the taxpayers of the

Province, and without the ability to do that, and without all of the

answers, the people of the Province do not have the ability or the benefit

of being able to make a full and fair evaluation or decision on what has

happened here.

look at the fact that there was no documentary evidence.

There are many instances where the Auditor General says there was no

documentary evidence here, which is why an inquiry with the ability to

subpoena people and have members of the public give evidence under oath, Mr.

Speaker, you would get more answers.

The

Auditor General said they have not been able to satisfy themselves about the

fact that two ministers, within a half an hour of each other, independently

contacted the Deputy Minister of Transportation to inquire about Humber

Valley Paving. On that same day,

the minister made a decision to terminate the contract, a decision that was

made literally between 8:45 in the morning and 11:30 in the morning, so in

less than half a day.

The

Auditor General indicates that he has not been able to satisfy himself as to

why the process to come to an arrangement with Humber Valley Paving to

terminate the contract had to be concluded the day before nominations closed

for the leadership of the Progressive Conservative Party of Newfoundland and

Labrador.

Mr.

Speaker, I want to talk a little bit more about that.

It says, the evidence indicates that the Deputy Minister of

Transportation and Works raised this issue with Minister McGrath at the time

the Minister made the decision to proceed with mutual termination of the

contract with HVP.

said, We believe that the Deputy Minister was convinced, based on the

Minister's response, the appropriate people in the Premier's Office had been

made aware of what was occurring.

This view would have been reinforced by the fact that the meeting

with Minister McGrath occurred outside the Cabinet Room while a Cabinet

meeting was in progress. We feel

it would have been a reasonable assumption that the issue was discussed

inside the Cabinet Room, particularly in light of the proximity of this

decision being so close to the nomination for Leader of the Progressive

Conservative Party of Newfoundland and Labrador the very next day.

goes on to say that information gathered during the interviews because

there was no documentation, Mr. Speaker, the information was all gathered

during interviews indicates that the issue of termination of the contract

with Humber Valley Paving was not discussed inside of the Cabinet room.

The

Auditor General goes on to say that the minister was briefed by the deputy

minister outside the Cabinet room on two occasions, Mr. Speaker, one before

the meeting started, and one during the Cabinet meeting on March 13, and

had every opportunity to raise the issue in Cabinet or with the Premier's

Office. While the Minister had

the authority to make the decision, it is difficult to understand, given the

potential political sensitivity of this issue, why he would not have

discussed this with his colleagues in Cabinet or the Premier's Office.

That

is another very important reason, Mr. Speaker.

It is an unanswered question.

The Auditor General is still not satisfied with the answers they got,

and it is another very solid reason why we need to look at an inquiry into

this situation. Mr. Speaker,

there was a lack of transparency in the communication of the decision to

terminate the contract and this had the potential to impact the ability of

subcontractors and suppliers to file a claim under the Mechanics' Lien Act.

The

Auditor General goes on to say, during 2012 payments made to Humber Valley

were on a bi-weekly basis and those payments could have provided Humber

Valley with a competitive bidding advantage.

Mr. Speaker, this whole situation there are so many unanswered

questions, there are so many issues outstanding here, and the people of the

Province deserve to know what exactly happened.

The

process to consider, evaluate, decide, draft, and execute the mutual

termination of the contract related to this project was made between 8:45 in

the morning and 11:30 that same morning.

Only seven-and-a-half hours to the time that a letter was actually

sent, e-mailed to the company to terminate that contract.

There was no documentation prepared on March 13, 2014 to support the

decision to terminate the contract.

The

Auditor General goes on to say, one of the key criteria communicated by the

minister was to ensure that the outcome was not injurious to HVP and its

employees. Yet, based on legal

advice the department was given, the legal counsel for the department, Mr.

Speaker, or the lawyer for the department had advised that once the contract

was cancelled, with that there is no further ability to call the bond for

performance or the bond for materials and supplies.

While it was important for the minister to protect Humber Valley Paving and

its employees, there was no urgency, Mr. Speaker, or no criteria

communicated to protect the subcontractors that may have been protected by a

bond.

Even though the department knew that cancelling

the contract would also cancel the bond, they went ahead with that decision.

It says that the minister indicated to his deputy

minister an urgency to deal with the project based on his stated priorities.

This would have played a critical role in the speed of the assessment

by the department and the impact of Humber Valley Paving not to return to

Labrador and would have been a major contributing factor why there was no

documentation available on March 13 for that decision.

Mr. Speaker, reality is that when this tender was

rebundled with another tender, it cost the taxpayers of this Province $1.5

million. Again in this report,

the Auditor General said they were not able to fully evaluate and

substantiate that figure, but that is the figure put forward by the

department.

Based on the department's numbers, it cost the

taxpayers of this Province $1.5 million, and that may have been avoided.

The Auditor General says that there is no clear indication of that

either, but it may have been avoided if we had been able to call the bond.

Once a decision was made to terminate the contract, the

performance and labour and material bonds would have had no effect since

they provided a guarantee against a contract which was no longer in effect.

That was the advice by the lawyer for the department that was given

to the department.

The department did not pursue the option of calling the

performance bond because they said it risked the project not being completed

in 2014. They said that would

have negatively impacted Humber Valley Paving.

They gave no thought to how it would have negatively impacted the

people those bonds would have protected, the taxpayers of this Province, and

the suppliers and subcontractors to that bond.

When all was said and done, the project still was not completed in

The Auditor General goes on to say and I will talk

about that a little bit once I get to it that if there was more time given

to looking at this and evaluating the impacts of this decision, the

department themselves perhaps would have come to the conclusion that the

project would not have been done in 2014, in any event.

The Deputy Minister of Transportation was instructed by

the minister not to prepare a briefing note for the Premier's Office or for

Cabinet Secretariat to inform them of the decision to terminate the

contract. Now, that in and of

itself is probably good enough reason to say we need an inquiry.

The people of the Province deserve to know why there was such little

documentation, such little detail, why decisions were made on the fly.

The decision by the Minister of Transportation on March

13 to agree to a mutual termination of the contract with Humber Valley

Paving was within the scope of authority of the minister, the Auditor

General determines. Again, Mr.

Speaker, should we look at whether or not that should be within the

authority of the minister?

Because we have seen here where a minister used that authority perhaps where

he should not have, that a decision was made that perhaps should not have

been made. In fact, the Premier

said it was a bad decision made on that day.

Mr. Speaker, when you look at the potential benefit the

release of the bond would have had on the guarantors that is Humber Valley

Paving, essentially, the people who the minister wanted to protect, without

regard for the subcontractors or the taxpayers of this Province.

There was not enough time to look at what benefit that would have had

on the guarantors. There was not

enough time to determine the impact it would have had on others.

The Auditor General says that there should have been an

opportunity to settle claims related to other projects two other projects

that were outstanding with Humber Valley Paving, but that opportunity was

missed because of the urgency to conclude the agreement on March 13.

So, Mr. Speaker, given more time, the department may have in fact

saved that money, where those issues are still outstanding, that money is

still outstanding with Humber Valley Paving.

Now, Mr. Speaker, it is only my observation, but prior

to one of the individuals at Humber Valley Paving wanting to enter the

leadership race, the minister and the department said that the fires in

Labrador were not the fault of the department and, therefore, the department

were not liable for any compensation to that company.

Those are the two issues that are still outstanding

here that may have been settled if the department had more time to look at

that, based on terminating the contract.

All of a sudden when that individual was looking at entering the

leadership race, Mr. Speaker, there was an urgency to protect Humber Valley

Paving, the guarantors in other words, releasing the bonds.

The Auditor General in this report says that we did not

look at the effect of perhaps settling those two outstanding issues and the

money, and whether or not that would have given Humber Valley a greater

ability to go back to Labrador and finish the project.

The decision was made in haste, Mr. Speaker.

Now, those two issues are still outstanding and not settled.

The Deputy Minister of Transportation received two

phone calls within a half an hour of each other, both inquiring on the

status of Humber Valley Paving on the thirteenth the day that it was

absolutely imperative the decision be made and the contract terminated; the

day before the leadership nomination deadline, Mr. Speaker I know I only

have four or five seconds remaining therefore, this is part of the reason,

and there is much, much more information here.

We are calling for an inquiry on this issue.

MR. SPEAKER:

Order, please!

I remind the member his time is expired.

The hon. the Member for Port de Grave.

SOME HON. MEMBERS:

Hear, hear!

MR. LITTLEJOHN:

Thank you, Mr. Speaker.

Today, what I would like to do, basically for the

people of the Province and the people watching today, is go through the

Auditor General's process in this Humber Valley Paving incident.

I want to talk a little bit about the background, some of the

objectives that were asked for, the process, and some of the conclusions the

Auditor General did make during this Humber Valley Paving investigation.

Back in early May or late April of this year, there

were public concerns raised over the termination of the contract with Humber

Valley Paving. Because of this,

Mr. Speaker, Cabinet decided, at that point, to refer this matter to the

Auditor General for his investigation.

Then Premier Tom Marshall wrote the Auditor General asking that he

examine the contract with Humber Valley Paving and its termination.

Mr. Speaker, most people in the general audience will

probably not know who the Auditor General is.

The Auditor General is an independent Officer of the House of

Assembly. Under the Auditor

General Act, he has the statutory power to conduct and complete thorough and

comprehensive investigations, when asked.

He has the power also to subpoena witnesses, which he did in this

case.

also has the power, Mr. Speaker, to seek and ask for any records from

whomever he wants relating to his investigation.

The Auditor General in this case was free to complete the

investigation in whatever manner he so chose.

The Auditor General in this case had the power to subpoena witnesses,

ask for any records and documentation.

Mr. Speaker, I thought I heard the member opposite, when he made his

opening comments he talked about the fact that the Auditor General did not

have the right to subpoena.

the Auditor General Act,

section 18.(2), it clearly states, In order to

compel the attendance of a person under subsection (1), if a person

failed to attend or did not want to attend the auditor general may apply

to a judge of the Trial Division for an order that a subpoena be issued from

the court commanding the person named in the subpoena to appear before the

auditor general. So it is

clear, Mr. Speaker, that the Auditor General, if he wished to speak to

anybody and they refused to speak to him, could have gone to the Trial

Division and asked that that person be subpoenaed and he could speak to them

in that way.

The

Auditor General in this whole process had five objectives, and I would like

to read those into the record.

The first objective was to determine whether the original tender and

contract awarded to Project 1-12 was conducted in accordance with the Public

Tender Act. The second objective

was to determine whether progress payments made in connection with the

contract of Project 1-12 were properly supported.

The

third objective was to determine whether change orders and other adjustments

to the contract for Project 1-12 were appropriately documented and

authorized. The fourth was to

determine whether the decision to mutually agree to cancel the contract

related to Project 1-12 was appropriately evaluated and authorized.

Finally, Mr. Speaker, the fifth objective was to determine whether

there was evidence of undue influence in the evaluation or timing of the

decision to cancel the contract related to Project 1-12.

the Auditor General's review, it covered all aspects of the contract from

its award in March 2012 to the cancellation in March 2014.

The Auditor General at that time had the opportunity to thoroughly

review the decision-making process, both through formal interviews and by

examining large volumes of documents.

So the Auditor General at that time did have the opportunity to do

formal interviews and he did have the opportunity to see large volumes of

information.

The

Auditor General did interview sixteen people under oath.

Sixteen people were interviewed under oath by himself and legal

counsel, and they were required to sign statutory declarations.

As well, Mr. Speaker, I believe all members of the House at that time

received notification asking that they provide all information they had in

relation to this matter, in relation to Humber Valley Paving.

There were 185 individuals who were confirmed in this matter.

I believe all members of the House were asked and had to sign a

document and return it to the Auditor General's office.

I know I was.

Through this extensive exam process, Mr. Speaker, the Auditor General

determined the following: that a different decision may not have been

reached if there was more time available.

What the Auditor General said in the first piece was that even if

there was more time a different decision may not have been reached.

know the Opposition has gone on about it was done in a matter of three or

four hours. The Auditor General

clearly states that a different decision may not have been reached if it

took two weeks, a month, six months, that the decision was one that was

within the powers of the minister to make.

In other words, the minister was within his right to make the

decision he made. That there was

no documentary evidence of undue influence in the decision to terminate the

contract. In other words, there

was no influence made on to the minister, and the minister made the decision

based on the interests of the people of Newfoundland and Labrador.

Mr.

Speaker, he did not recommend and this is important, because he had the

power to do this as well. He did

not recommend that the matter be referred to any other authority for

investigation. Because the

Auditor General, if he thought of any wrongdoing or criminal activity, he

could have taken the time to refer this to the RNC or the RCMP, whichever

the appropriate authority could have been.

part of this process, the Auditor General had unrestricted access to all the

materials related to Humber Valley Paving and Project 1-12.

From the provincial government there were 185 individuals, and there

were the fourteen departments.

There was Executive Council, the Office of the Premier, the Office of the

Chief Information Officer, the Office of Public Engagement, the Women's

Policy Office, the Multi-Materials Stewardship Board, and GPA were also

engaged.

There were a slew of interviews, Mr. Speaker.

As I said earlier, sixteen people were interviewed.

The former minister and his executive and constituency assistants

were interviewed. The Deputy

Minister of TW was interviewed.

The ADM for Transportation was interviewed.

The department's legal counsel was interviewed.

The former Premier, his chief of staff, and the executive and

constituency assistants of the Premier were interviewed.

The Minister of Advanced Education and Skills was interviewed.

The Clerk and the Deputy Clerk of the Executive Council were

interviewed; the ADM for the courts and the legal system, and the Deputy

Minister of Justice all of these individuals were interviewed as part of

the government investigation.

Mr.

Speaker, I want it also noted that Mr. Frank Coleman and Mr. Eugene Coleman

were interviewed. They agreed to

be interviewed and were interviewed.

While Mr. Michael Coleman, Mr. Robert Coleman, and Mr. Peter Byrne

provided information, they were not interviewed, but they did provide

information as requested by the Auditor General.

is my understanding as well, the Humber Valley Paving bonding company, which

is the guaranteed company of North America, as well as the Official

Opposition and the Third Party, were also engaged and were also asked for

information. So there was an

extensive amount of information provided to the Auditor General.

Each of these individuals was requested to provide a statutory

declaration stating the provided information was inclusive and that no

information was deleted. If

there was an e-mail, a text, any type of letters written, all of that

information should have been included.

Mr.

Speaker, solicitor-client privilege is a Canadian right.

I am not a lawyer so I do not understand it totally, but

solicitor-client privilege is a Canadian right.

My understanding of reading the document is the provincial government

proactively made the decision to waive the solicitor-client privilege in

this matter.

The

Auditor General's investigation is the provincial government waived their

solicitor-client privilege in all matters related to Humber Valley Paving.

Mr. Speaker, that was not the case, as I am led to understand.

That was not the case of the company Humber Valley Paving.

They did not waive their right to solicitor-client privilege.

Mr.

Speaker, in conclusion, the Auditor General had some conclusions.

The Auditor General concluded the original tender and contract award

were certainly in accordance with the Public Tender Act.

Everything was done properly.

The contract was awarded properly in accordance with the Public

Tender Act. So, in that regard,

everything was okay.

Mr.

Speaker, as well, the progress payments that were properly supported in that

Humber Valley Paving were paid only for the work that was completed under

the contract. I know earlier

there were discussions in the House previous that Humber Valley Paving may

have got, or it was implied that they may have been paid more than what they

were entitled to, but it is clear through the Auditor General's report that

Humber Valley Paving was only paid the money that they were entitled to.

Any

change orders that occur and, Mr. Speaker, we all know that in

construction there are always change orders of some kind.

The change orders or any other adjustments that were asked for to the

contract, they were all appropriately documented and authorized.

All of that work was done and it was done appropriately.

Mr.

Speaker, the Auditor General did state as well while more time may have led

to other factors being considered, more time may not have resulted in a

different decision. Once again,

I go back to the fact that the Auditor General clearly states that, yes,

more time could have been taken, maybe more time should have been taken, but

he clearly states that the decision may not have changed.

In other words, he did not see anything wrong with the decision,

outside the fact that more time should have been taken.

Mr.

Speaker, I know the previous Minister of Transportation and Works has taken

some real heat over this, but he was within his authority to do what he did.

He was within his authority to make this decision and do it on his

own. He made the decision, and

the Auditor General says within the scope of his authority and the

decision was properly authorized.

In terms of the Minister of Transportation, he can make the decision,

he did, and it was properly authorized.

Mr.

Speaker, the Auditor General finally concludes, There is no documentary

evidence of undue influence.

In other words, the Auditor General did not find any undue influence.

The minister made the decision, but there is no evidence in the

materials and the witnesses he interviewed that there was any undue

influence in the decision to mutually terminate the contract of HVP.

Mr.

Speaker, going back, when it comes to the Humber Valley Paving inquiry, it

was found, as previously stated, that there is no added value in

co-ordinating a public inquiry.

The Auditor General has done the work; it would only be replicating the work

that has already been done. The

Auditor General has done the work, he has investigated, he had the ability

to subpoena anyone he wished, under the act, so there is no value in doing

it; it is replicating the process that has already been taken.

The

Auditor General, Mr. Speaker, is a quasi-judicial officer.

He is an independent Officer of the House of Assembly.

He has the authority to come in and do the work that we asked him to

do. He found no wrongdoing, no

undue influence. In other words,

the Auditor General is satisfied with this investigation.

had complete access to any information and individuals who he wished to

interview or any information that he wanted to have.

As I stated earlier, Mr. Speaker, that would include text, e-mail,

PIN, letters any information and all information the Auditor General

required then he had.

Mr.

Speaker, finally, the Auditor General found that there was nothing in his

investigation that would constitute a Criminal Code offense.

I think that is important.

I am sure if the Auditor General thought there was any criminal

wrongdoing in this activity, he would have asked one of our agencies, the

RNC or the RCMP, to come forward and investigate this further.

see my time is running out, Mr. Speaker.

I thank you for the opportunity that you have provided me today.

Thank you very much.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER (Cross):

The hon. the

Member for Cartwright L'Anse au Clair.

MS DEMPSTER:

Thank you, Mr. Speaker.

I am

happy to stand and speak to this as well.

Mr. Speaker, when we are elected to public office, I think that is a

job we have to take very, very serious.

It is one that comes with responsibility.

My colleague for Carbonear Harbour Grace often says it is the

people's House. To add to that,

it is also the people's money, so we have to be very cognizant of the

decisions we make.

What

we are talking about here today, Mr. Speaker and I know it is an old

country song where Tim McGraw says timing is everything, but we are talking

about $20 million here. We are

not talking about a small chunk of change $20 million.

From the first call that was made to the deputy minister to when the

decision was made to terminate the contract, two hours and forty-five

minutes. That is what we are

talking about with the $20 million that is here, with the bonds that were

released when, clearly, we had a contractor that defaulted on their contract

two hours and forty-five minutes.

I think we may have two pages of notes that were prepared, after the

fact; that is the paper trail.

Mr.

Speaker, I reflect back to my years in my previous life when I did contract

work for government. If a client

came in and I did an assessment on that client, I was required to complete

nine screens on a computer for a client assessment for a few minutes and

we are talking about $20 million here; two hours and forty-five minutes.

Man,

I think about the Northern Strategic Plan.

There was a comment made that he was politically motivated to do what

was right for the Labrador people.

I wrote a letter to the now Minister of Labrador some time ago I am

still waiting on a response for an update on initiatives that were

promised to be carried out in the Northern Strategic Plan, some that have

been there since 2007 seven years, very important initiatives for

Labrador.

Mr.

Speaker, my colleague for St. John's South has spoken very well to some of

the technical errors and the process and the flaws.

To the people who are watching today, I want to shed a little light

into what this has done on the ground in Labrador in communities like my

district, small communities, small businesses.

I have been up several times over the last couple of weeks talking

about what these 20 per cent hydro increases are going to do to these small

businesses.

Because of what happened here, because a contractor was allowed to be

released after they defaulted on a contract, there were many businesses,

small businesses in my district left holding the bag.

Nobody was reimbursing them.

Many of them did not even know about the process of a mechanics'

lien. You live in a remote area,

you just do not know these things.

Now you have businesses, some of them, yes, that are owed $3,000 or

$4,000 which sounds small to mention, but they will not even collect

because the process of going through a court is of no benefit to them.

Mr.

Speaker, I have had calls from small businesses owed $80,000, small

businesses owed $30,000. I had

an older gentleman say to me some time ago: My dear, I do not know a lot

about this, but if we had very many contractors come into our area like

this, we would have no small businesses left.

As I

stand here today, I have small businesses in my area that have gone down and

took equipment and it is parked by their door.

They are saying: Until I get my money, the equipment is staying

there. I had small businesses

that went in on site, 10:00 at night, after dark, and started taking things

out and worked diligently through the night in dangerous situations, and

6:00 in the morning they had things out that they took, that they

confiscated, to try to make up so that they would not be out so much

financially.

There is something wrong with that, Mr. Speaker.

Why were people put in that situation?

Why? To have to go into a

site 10:00 at night and work diligently in the darkness of the night to

confiscate things because they knew they would not get their money.

sat here for the last couple of days and our leader questioned the Premier

repeatedly. Every time, the

Premier stood on his feet and talked about the Auditor General and the

mandate that he has. He was

leaving the impression that we were questioning the Auditor General in some

way. Mr. Speaker, nothing could

be further from the truth. The

whole synopsis of this is the fact that the Auditor General was not

satisfied. We talk about all the

people who were interviewed.

All

I see through this is repeatedly where the Auditor General referenced the

lack of information, the lack of documentation, and the lack of a paper

trail. Mr. Speaker, there is one

place where the Auditor General interviews three directors; Michael Coleman,

Robert Coleman, and Peter Byrne.

Did you have any contact with anyone in government?

No, no, no. Did you have

any contact with anyone in government regarding the cancellation?

No, no, no. I can go

right on down through a list of those questions and every time the answer is

no. A little flip through the

report and you can see why the Auditor General would not be satisfied with

this $20 million you know.

was looking earlier, Mr. Speaker, at a press release that was put out in May

2012 by the minister at that time, the Member for Harbour Main.

In May of 2012 when he announced the phases he said, These contracts

will be completed over a two-year period, and by 2014, every kilometre of

pavement between the two most populated centres in Labrador will be widened

and covered with blacktop. That

is what the member said at that time, every kilometre will be covered in

blacktop.

Sadly, Mr. Speaker, because of fiascos like this, because of fiscal

mismanagement with the public purse, not ours, and as I stand here today, we

are coming near to the end of 2014 I think we are in December now on the

calendar no, it is not done. I

believe that there are a lot of unanswered questions here, which is why we

are asking and why our leader has been asking.

Our

leader knows that at the end of the day we are answerable to the people of

Newfoundland and Labrador, the people who we represent in the House of

Assembly. That is why our leader

has been asking for a judicial inquiry, Mr. Speaker.

Back

in the press release in 2012 it talks about the commitment to ensuring

residents in Labrador are ideally positioned to take advantage of the

tremendous potential and opportunities that exist in their region.

Mr. Speaker, we are not taking advantage.

We have a long way to go when it comes to infrastructure in our

region. Then we see things

happen like this and the people who pay the price are the people of

Labrador.

deal was signed here. Something

happened very fast, seven and a half hours from start to finish.

In two hours and forty-five minutes, a monumental decision was made.

That is why we want an inquiry, Mr. Speaker.

How much was Humber Valley paid even though they did not complete all

the work? The $7.3 million, will

it cover the cost of paving the sixty kilometres, and still not done?

I want to mention when the minister at that time was on Open Line

back in May, he said I want to get this job finished, I want to get it done,

and that is why the decision was made.

The

minister also said I agree 100 per cent that those companies need to be

protected. The labour and materials bond is in place to protect small

companies, but before you can avail of the labour and materials bond, you

have to exhaust all other means.

Those are the minister's words, Mr. Speaker, not mine.

One of the major means for that is the mechanics' lien holdback.

I talked to small businesses in my district.

They did not even know what that was.

They had not dealt with it before, small businesses.

saddens me there is nobody bailing these small businesses out.

They are working eighteen hours a day for themselves so they do not

have to work eight for someone else.

That is what it comes down to, Mr. Speaker.

We have to be very cognizant that we are in responsible positions.

Whatever we do, the onus is on us to have a paper trail.

All

through this report, Mr. Speaker, people talk about how they did not know

they did not know. In the AG's

report he says: there is no documentary evidence prepared on March 13 which

is available to support the evaluation process that occurred on that date.

Mr.

Speaker, no documentary evidence prepared on March 13, at the time when a

major contract was terminated and the company was released from their bid

bonds. Subsequent to March 13,

we did have an information note that came out dated April 29.

Clearly, you know, from the time the decision was made until the next

tender went out, it shows us that there was sufficient time for people to

sit around, to look at this full picture, and to determine if the right

decision was being made.

know the member who spoke earlier said he does not know if there would have

been a different decision. We do

not know, Mr. Speaker, if there would have been a different decision.

Clearly, given when the next tender went out from when that contract

was cancelled, there was sufficient time for people to sit down and make the

decision that was right by the taxpayers of this Province, their money, and

in lieu of doing what was right for all these small businesses that were in

some way, shape, or form connected with the Humber Valley Paving contract.

Some of them may have been subs.

If those subs did not get their money from Humber Valley Paving, then

they in turn did not pay the small businesses in my area.

Mr.

Speaker, we know that all of this started initially because Humber Valley

Paving said there was a fire, and they ran into some expense and some

delays. The traffic was only

delayed for a couple of days back at that time because of the fire.

I think it was March before they actually went forward and asked to

be released from that.

Mr.

Speaker, it does not add up. It

smells of corruption. Let's call

a spade a spade. It smells of

corruption. We have an

obligation. It is okay for the

members across the way. They can

roll their eyes at this, but we have an obligation in this House.

Many

times we stand here and we discuss decisions that were made a long way back

into history, and they were not necessarily the right decisions.

While I am here, Mr. Speaker, elected to be a voice representing

Cartwright L'Anse au Clair, and I speak for Labrador and the Province as a

whole, when I see things like this I am going to take the opportunity to

stand on my feet and to say over and over in this report we do not see we

believe the deputy minister was convinced, based on the minister's response.

There is no substance here.

No substance to satisfy.

That is why the Auditor General, with a clear conscience, could not say that

he was satisfied.

The

Premier seems to have missed that.

He stood for two days, and despite being questioned over and over

again, he talked about the value of the work the Auditor General does.

There is nobody, Mr. Speaker, questioning the value of the work the

Auditor General does. When the

Auditor General interviews people and every single answer is no, no, no, and

at the end of the day he says I am not satisfied, we have no other recourse

but to call we have an obligation to call for a judicial inquiry .

Here we are up in Labrador, until we can get our proper

infrastructure and have the movement of goods and services flowing, we are

not going to be able to move ahead.

Here we are talking about a company that was released, millions of

dollars from the bid bond, and the roadwork still not done.

We do not know a full dollar figure on what this is going to cost,

Mr. Speaker, at the end of the day, this fiscal mismanagement.

Mr. Speaker, we are concerned now about the price of

oil and where that is going. It

just makes us cognizant of the fact that the public purse is not a

bottomless pit. That is why

decisions that are made, decisions that involve millions of dollars, have to

be made with careful consideration and with all the facts on the table, not

our money. We have to be

responsible.

Mr. Speaker, I think the key message coming out of this

is that the AG admitted he is not satisfied with why the contract was

cancelled so quickly. In less

than a workday, a shorter time frame than a workday, seven-and-a-half hours.

The AG could only operate within the conditions set out by

government. That is all.

Clearly, for anyone who has taken the time to go through the report,

you will see that he could only operate within the

MR. SPEAKER:

Order, please!

I remind the member her time has expired.

MS DEMPSTER:

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. KENT:

A point of order.

MR. SPEAKER:

The Minister of Health and Community Services, on a point of order.

MR. KENT:

Thank you, Mr. Speaker.

I did not want to interrupt the member in her final

remarks. In the last couple of

minutes she referred to corruption.

She accused members on this side of the House of being involved in

something that smells of corruption.

I believe, Mr. Speaker, those remarks are

unparliamentary. I would ask the

hon. member to withdraw the remarks.

MR. SPEAKER:

The Opposition House Leader, on the point of order.

MR. A. PARSONS:

Yes, I do not believe this is a point of order.

I do not believe the minister referred to anybody on the other side.

Obviously, the Speaker can have time to review this.

MR. SPEAKER:

Order, please!

The Speaker will take this under advisement.

I will review the context of the comment that was said and bring back

a report at a later time.

Are there any further speakers?

The hon. the Member for Fortune Bay Cape La Hune.

SOME HON. MEMBERS:

Hear, hear!

MS PERRY:

Thank you, Mr. Speaker.

It is certainly a pleasure for me to rise in the House

today and speak to this very important private member's motion.

One thing I will agree with what the member opposite just said very

strongly is that the public purse is absolutely not a bottomless pit.

This review has been undertaken extensively, I would

put forward, by the Auditor General and any duplication of effort, of doing

this very same thing over again, in my mind, I would question whether or not

it would be a wise value of spending taxpayers' money over and over and over

again on the same type of thing.

That leads me into what the focus of what I am going to

talk about today is, Mr. Speaker.

One of the things I really enjoy about being a Member of the House of

Assembly and being a leader on behalf of my residents is the ability to

impart knowledge. As I learn

about legislation and how it works, I am able to pass that on to my

constituents and people I serve; and thereby, we all have a greater

understanding, we are all better educated about how things work, and at the

end of the day we will be a better Province for it all, I do believe, Mr.

Speaker.

Today I am going to talk about and elaborate for

members here and for anyone who may be watching on the comparison between a

commission of inquiry and an Auditor General special assignment.

Both a commission of inquiry, under

Part I of the Public Inquiries

Act, 2006, and the Auditor General, under

section 16 of the Auditor General

Act, have very broad statutory powers which enable them to access

information required for their investigations.

A commission of inquiry can assume a summons to compel attendance of

witnesses or to produce records.

The Auditor General can apply to court for a subpoena for the same purpose.

Both a commission of inquiry and the Auditor General can receive

testimony under oath or affirmation.

There are some differences, though, worth noting.

Where a commission of inquiry holds an oral hearing, it

must be conducted in public unless the public interest in a public hearing

is outweighed by other considerations.

A commission of inquiry can also arrange for publishing or

broadcasting of proceedings.

There is no provision that will allow the Auditor General to conduct a

review in public.

The Public Inquiries Act, 2006 expressly provides that

a commission of inquiry has the power to enter and inspect premises.

A commission of inquiry also has the power to apply to a court for a

warrant where the commission is refused or denied entry, or where the

commission has reasonable grounds to believe that entry without notice is

necessary. The Auditor General

does not have this authority in relation to private entities.

So these are some of the differences there, Mr. Speaker.

In terms of the Public Inquiries Act, 2006 and I

would also take this opportunity to inform anyone who is listening, all of

these acts are available online on the House of Assembly, Government of

Newfoundland and Labrador Web site, and anyone who is so inclined to learn

more about what some of these acts are all about is more than welcome to

Google and go online and read them at any point in time.

The Public Inquiries Act was proclaimed in December of

2006;

Part I of this act deals with what would be considered a traditional

public inquiry. Under the act,

the Lieutenant Governor in Council has the power to create a commission of

inquiry to report on a matter of public concern.

In such an inquiry, the Lieutenant Governor in Council appoints the

commission members, establishes the commission's jurisdiction by setting the

terms of reference for the inquiry, designates a minister responsible for

the inquiry, and fixes a date for the termination of the inquiry and

delivery of the commission's report.

Once the terms of reference are set, a commission has

the authority to determine who can participate in the inquiry, to establish

procedures for receiving of evidence, including whether evidence is

presented orally or in writing, and to determine the nature of the hearings

to be held.

Oral hearing, if any, are required to be conducted in

public; however, the commission has the discretion to exclude the public,

where the public interest in holding the hearing in public is outweighed by

other considerations, as I said a little while ago.

A commission has the power to arrange for the publishing or

broadcasting of proceedings, as well as to restrict public reporting.

The commission has those powers, Mr. Speaker.

With respect to evidentiary powers, a commission can

compel, by summons, the production of testimony and evidence, conduct

inspections, apply for a warrant to search and apply to the court for

direction on a question of law or jurisdiction.

A person appearing before a commission to give

testimony has the same privilege in relation to the disclosure of

information as that given to a person when appearing before a court.

For example, solicitor-client privilege would stand.

Notwithstanding this, a person cannot rely on the fact that

disclosure would be injurious to the public interest or would violate Crown

privilege to withhold records from a commission of inquiry.

Where a person does not attend before a commission when

summoned or refuses to take an oath of affirmation required by commission or

to produce a document, record, or to answer a question of the commission,

contravenes an order of the commission with respect to public reporting or

publishing evidence or does any other thing that would constitute contempt

of court. A commission may state

a case to court and punishment may be imposed by the court.

In addition, the act also allows government to request

something less than a full-blown inquiry.

As a result, under

Part II, the Lieutenant Governor in Council may

order an inquiry into a matter of public concern.

In contrast to

Part I though, a distinguishing feature of

Part II is

the additional power given to the Lieutenant Governor in Council to specify

the mechanisms and procedures by which the inquiry is to be conducted.

Now,

Mr. Speaker, I am going to highlight some of the more notable public

inquiries in Newfoundland and Labrador over the last twenty-five years.

These include, in 1989, the Hughes Inquiry into Mount Cashel; 1990,

the inquiry into the involvement of government with Sprung Sales Limited; in

2002, Renewing and Strengthening the Place of Newfoundland and Labrador in

Canada; in 2003 there was an inquiry, the Lamer Inquiry into the

administration of justice related to the circumstances surrounding the

wrongful conviction of three individuals; and in 2008, the Cameron Inquiry

on hormone receptor testing.

terms of cost, just to point out, for the last two in 2003, that inquiry

cost $7.6 million. The 2008

inquiry cost $5.7 million; just in terms of the types of expense the public

purse would be subject to should an inquiry be held at any point in time.

You have to be prepared to allocate sufficient resources to that, Mr.

Speaker.

Auditor General special assignments can also take place, Mr. Speaker.

The Auditor General's reporting duties under

section 16 of the

Auditor General Act provides that the Lieutenant Governor in Council may

request or the House of Assembly or the Public Accounts Committee which

hopefully I will have some time to chat about towards the end here, Mr.

Speaker. By resolution, the

Public Accounts Committee may require that the Auditor General inquire into

and report on a matter relating to financial affairs of the Province or to

public property.

Where, during the course of an audit, the Auditor General becomes aware of

an improper retention or misappropriation of public money or any other

activity that may constitute a criminal offence, the Auditor General is

required to immediately report to the Lieutenant Governor in Council.

The usual practice is that the Auditor General provides this

information to either the Attorney General or to the Minister of Finance and

the matter is then referred to the police for investigation.

That did not happen, Mr. Speaker, in the Humber Valley Paving matter.

Again, we can look back in time to the Green report.

At that point in time there was no official inquiry as such, but the

Green report did present some issues of concern.

They were referred to the RCMP, and everyone knows the history of

what has happened from there. I

would say, Mr. Speaker, our government has taken the strongest leadership in

the entire country in terms of ensuring that best practices are employed

within the House of Assembly. I

certainly think that is something we are very, very proud of, and we intend

to see honoured in years and decades to come.

If anything, it will grow stronger.

It will never be weakened.

The

Auditor General has a broad power to access government information and

records, especially as expressly provided by another act.

Section 17 of the Auditor General Act requires that every department

of government, every agency of the Crown, and every Crown-controlled

corporation must provide such information regarding its power, duties,

activities, organization, financial transactions, and methods of business

that the Auditor General requires.

The

Auditor General must also be given access to all books, accounts, financial

records, reports, electronic data processing records, explanations, files,

and all other papers, things, or property belonging to or in use by the

department, agency of the Crown or Crown-controlled corporation where

necessary for the performance of the Auditor General's duties.

The

Auditor General can examine a person under oath or affirmation, which was

the case in the review of Humber Valley Paving Limited, Project 1-12 PHP.

The Auditor General can apply to a judge of the Supreme Court Trial

Division for a subpoena to compel a person to appear before the Auditor

General to testify and produce documents.

That subpoena power, Mr. Speaker, is absolutely there.

May 8, 2014, the Lieutenant Governor in Council requested, under

section 16

of the Auditor General Act, that the Auditor General inquire into and report

on any and all aspects of the contract between the Department of

Transportation and Works and Humber Valley Paving related to this project.

The

Auditor General, in relation to this, requested that the Clerk of Executive

Council provide all documentation in possession of the Province of

Newfoundland and Labrador which related to the award, administration, and/or

cancellation of the project.

Information requests were also made of Mr. Frank Coleman, Mr. Eugene

Coleman, the President of Humber Valley Paving, the Leader of the

Opposition, the Leader of the Third Party, and the Guarantee Company of

North America.

The

Auditor General requested that replies be in the form of a statutory

declaration. He received these

statutory declarations, Mr. Speaker, and records were identified from

approximately 185 officials and former officials from all fourteen

government departments: the Executive Council, Officer of the Premier,

Office of the Chief Information Officer, Office of Public Engagement,

Women's Policy Office, Multi-Materials Stewardship Board, and the Government

Purchasing Agency.

Records were also received from Mr. Frank Coleman, Mr. Eugene Coleman, and

the Guarantee Company of North America.

Formal interviews under oath or affirmation were conducted with

sixteen individuals including government officials, a former government

official, and former officials of Humber Valley Paving with questions posed

by the Auditor General, members of his staff, and counsel retained by the

Auditor General, Mr. Speaker another independent source.

Humber Valley Paving did not respond to the Auditor General's request for

information. The Auditor General

also contacted the solicitor for Humber Valley Paving to determine the level

of contact he may have had with elected officials, Progressive Conservative

Party members, or departmental officials.

However, solicitor-client privilege was not waived in this instance,

and the Auditor General does not appear to have applied to court for

subpoenas to compel witnesses to testify or to compel the protection of the

records.

mentioned earlier, the Auditor General Act provides that the Auditor General

cannot access information that would reveal Cabinet confidences or would be

harmful to law enforcement.

There is no indication that these provisions were invoked in relation to the

Auditor General's review of the Humber Valley Paving contract.

It should be noted, however, that government did waive its

solicitor-client privilege. That

is something that cannot be done, Mr. Speaker, in a public inquiry.

summing up, and I am quickly running out of time here, Mr. Speaker, I would

like to say that having served as a member of the Public Accounts Committee

for several years, I think our Province has come a very long way.

We have gone from a time where the Public Accounts Committee would

meet once a year to today, under today's leadership it meets on a regular

basis, seven, eight times a year.

In fact, we just recently had six public hearings ourselves as a

Public Accounts Committee.

The

Public Accounts Committee works very closely, Mr. Speaker, with the Auditor

General. He is quite an

outstanding individual in my opinion.

I certainly trust his work, the quality of his work, the calibre of

his work. I fully endorse the

work he does in all regard for us as a people.

There is no one of any higher integrity than the Auditor General in

the Province of Newfoundland and Labrador.

for one, on a go-forward basis would like to see monies from the public

purse spent on the people themselves, be it on the roads, on the

infrastructure, on health care, on things that actually benefit the people

themselves, Mr. Speaker. I think

that is where the focus of our government is and will continue to be.

thank you for the opportunity to speak on this most important matter here

today.

MR. SPEAKER:

The hon. the Member for

St. John's East.

MR. MURPHY:

Thank you, Mr. Speaker.

have to say, I do not take pleasure in rising to speak to this today, but we

do have an opinion on this side of the House.

We do hope the members of the House listen to what we have to say on

this particular matter.

is what it is. We sat and we

talked about it. We had a good

concerted debate around our own offices, the researchers, through the

Auditor General's report, and the only conclusion was: it is what it is

five simple words. I think that

everybody in Newfoundland and Labrador is probably going to understand what

I mean when I get to it. I also

want to talk about the simple fact, Mr. Speaker, that I do not believe the

final work is done on this yet, and I am going to come to that as well.

Mr.

Speaker, I want to remind this House that it was Lorraine Michael who first

called for the involvement of the Auditor General on this issue on May 1 of

this year. We did have previous

precedent over the calling of the Auditor General whenever something was

questionable, some move by government.

was the Liberal Administration of September 2007 that questioned the fibre

optic deal and asked for the Auditor General to step in and look at the work

of a particular contract at that particular time between the Premier.

Back then, there was an alleged connection between the Premier and a

Mr. MacDonald who owed a fibre optic company at the time, I believe.

The

Auditor General came back at that particular time and he could not find

anything wrong with it, and actually one of his findings that he came back

with was that it was a very good deal and we moved on.

Government moved on. I think

the Liberals probably parked the issue after they heard from the Auditor

General at that particular time, and the recommendations of the Auditor

General at that particular time were accepted.

we do have a past history of dealings with the Auditor General.

This, I think, is only the second time in my memory that it has ever

been done. So, Lorraine Michael,

I should say

MR. SPEAKER:

Order, please!

MR. MURPHY:

Sorry, Mr. Speaker, I

named the member. The Member for

Signal Hill Quidi Vidi put forward the motion of calling in the Auditor

General. The following week, in

that particular first week of May, we asked questions for several days in

this House, asking the government to also call in the Auditor General to

act, to investigate; and it was under pressure from this party when we were

asking for the call in for the Auditor General that the government relented

and the Premier of the day came into the House and broke the news that, yes,

he would be asking the Auditor General to look at the Humber Valley

situation. So that is the way

that everything transpired.

the Auditor General came in and he did his work, and he released his report

on September 29; a thorough and, we believe, a professional job that we

would have come to expect from his office.

Now we have a request out there for a public inquiry.

I do not think it is necessary.

We do not think it is necessary.

We believe it to be probably a very costly venture.

Considering the fact, too, Mr. Speaker, in saying that, we have not used all

the tools of the House of Assembly yet in doing that.

The previous member who was up and spoke before me mentioned the

Public Accounts Committee. The

Public Accounts Committee does business for this House.

It does business on behalf of the taxpayers of Newfoundland and

Labrador. It looks after the

better interests of the people of Newfoundland and Labrador and has a duty

to the House of Assembly to come back and report to the House of Assembly in

its findings and its deliberations.

work together. We are

non-partisan pretty much when we come together and ask questions.

Sometimes we are partisan I think in our views when we are working on

the Public Accounts Committee.

It is my belief, Mr. Speaker, and it is our belief on this side of the House

that the Public Accounts Committee has a very important role to play here in

asking questions around the Humber Valley contract situation and how it was

handled and asking the Auditor General further questions about this.

have the ability in Public Accounts to ask for more witnesses to come in.

We also have time to do that, Mr. Speaker.

We can go ahead and we can invite anybody we want to question to come

and appear before Public Accounts, but it is also part of our jobs as

Members of the House of Assembly to fulfill that role.

Whether the House is in session or whether the House is not in

session, we are still asked by the people of Newfoundland and Labrador to

come up with an opinion and work together as a committee and formulate our

own reasonings for taking things a step further if we find it, and that is

the key. We have not gone

through all the steps that are available to this House of Assembly in

finding out more answers around Humber Valley.

Why

would we go through the expense of a public inquiry when we have not used

all the tools that are at our disposal?

Mr. Speaker, we should have an open and transparent meeting of the

Public Accounts Committee, as I said.

It is chaired by the Liberals.

The Liberals also have another member on it besides the Chair.

They have two

Document details

CollectionNewfoundland and Labrador — Debates (Hansard)
Citation2014-12-03
Typehansard
Volume / chapter2014-12-03
Languageen
Formathtm
SourcePROVINCIAL
Identifier7c2333c19aa38f84bbe6f1abecf2894a86825b66

Source file is stored in the law ingest library (htm).