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May 31, 2021

HOUSE OF ASSEMBLY PROCEEDINGS

Vol. L No. 7

The House met at 2 p.m.

SPEAKER (Bennett):

Admit strangers.

Order, please!

Before we begin today's proceedings, I would like to

observe an old parliamentary tradition. I had the pleasant task of formally

welcoming the Member who was duly elected in the election on February 13, 2021.

The Member is John G. Abbott, representing the District of St. John's East -

Quidi Vidi.

SOME HON. MEMBERS:

Hear, hear!

SPEAKER:

I've been advised by the Clerk of the House that the Member has taken the Oath

of Allegiance to the Crown as required by the

Constitution Act, 1867 and the Oath of

Office as required by the House of Assembly Accountability, Integrity and Administration Act

and has signed the Members' Roll.

Mr. Premier.

PREMIER A. FUREY:

Mr.

Speaker, I take honour to present to you, Mr. John G. Abbott, the Member for St.

John's East - Quidi Vidi, who claims the right to take his seat.

SOME HON. MEMBERS:

Hear, hear!

SPEAKER:

The

Member may take his seat.

The hon. the Premier.

PREMIER A. FUREY:

Mr.

Speaker, in light of the disturbing and traumatic discovery of the buried

remains of 215 Indigenous children at the site of a former residential school in

British Columbia, I respectfully request all Members of this House rise and

observe a moment of silence in their honour.

(Moment of silence.)

SPEAKER:

Thank you.

Please be seated.

The hon. the Minister of Finance and President of

Treasury Board.

COADY:

Mr.

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

the budgetary policy of the government.

SPEAKER:

The

motion is that this House approves in general the budgetary policy of this

government.

The hon. the Minister of Finance and President of

Treasury Board.

COADY:

Thank you, Mr. Speaker.

This is an important moment in our history. In this

moment we can learn from the past and change the future.

This must be our

moment to come together : no

matter our differences, no matter our interests, no matter our politics. We are

all Newfoundlanders and Labradorians. We are all connected. We share common

ground. We all want the same thing: a strong, smart, self-sufficient,

sustainable Newfoundland and Labrador. We are all proud of our heritage. Let us

be even more proud of our future.

Our forebearers, resilient, strong, mighty people,

passed the future to us. It is now our responsibility to ensure generations to

come have better opportunities and healthier, more prosperous lives.

This budget sets a path for emerging from COVID-19; for

investments in health and education, stronger communities and a stronger

economy.

Status quo is no longer acceptable. Instead, we will

chart a new course to recovery, growth and opportunity. We have the tools and

resources the world needs and we must capitalize at this time of disruption. To

be leaders in economic opportunity. To encourage people to come home and attract

newcomers to this incredible province, which is a safe place to raise families,

and a hotbed for technological innovation and clean energy.

Today, we are announcing a plan with a measure of

investments and savings to grow the economy and create jobs for a sustainable

future. This budget sets direction to modernize and transform government, to

improve service delivery, and to address our financial concerns.

It sets the course to achieve fiscal stability by

ensuring our government spends within our means. We will introduce balanced

budget legislation to ensure this and future governments are held to that

requirement. It reins in and tightens control of the public purse; it ensures a

return to fiscal balance within five years; it makes strategic economic

investments; it supports those that need a hand up.

Consultations are underway on the Premier's Economic

Recovery Team Report. We will listen to what you have to say for future

direction. This budget reflects the same financial information and input from

stakeholders, and is built on a clear and demonstrated need to act. Urgent

actions that have been discussed previously, determined and are now being

implemented. Transformations to reimagine government; investments in

connectivity and economic opportunity; support to emerge from the COVID-19

pandemic; a commitment to a Future Fund that will pay down debt and invest in a

green, technology-driven economy.

We cannot, must not, and will not allow the deficit and

debt to continue to rise and burden this and future generations. It is important

to us all to stand together now for Newfoundland and Labrador.

We are a small, aging population and we must take

definitive action now before someone else does it for us.

How do we achieve all that we hope for a strong, smart,

self-sufficient, sustainable Newfoundland and Labrador?

One step, then another and another.

The challenges we face are not insurmountable. Nor did

they happen overnight. Looking away will not make the challenge go away. We have

what it takes.

Remember, you can move a mountain one stone at a time.

There is an old expression, “The fog will lift.” Or as

my dad would say, “This too shall pass.”

COVID-19 and our financial challenges will one day be

behind us.

we do what is needed, we can achieve what is

Great .

Change starts here.

Financial Landscape

Our story is well told; we understand our fiscal

realities.

Since Confederation, annual deficits have become the

norm being reported in all but 10 years. Our province has the highest per capita

expenditures and net debt in the country.

The cumulative effect of years of spending more than we

bring in has led to interest costs on our debt being one of the largest

expenditures.

By taking a more proactive approach to treasury

management, our government will reduce debt expenses by up to $10 million

annually; therefore, being more active in the capital markets will consequently

result in more efficient borrowing.

In the last year, strong fiscal management and greater

revenue have helped alleviate the continued effects of a volatile oil industry

and a pandemic that has caused a global economic crisis.

Despite our improved performance, solutions are needed

to address long-standing structural issues such as the high cost of providing

services to nearly 600 communities across a large geography, chronic deficits,

dependence on volatile oil revenues, as well as a declining and aging

population.

The deficit for 2021-22 is projected to be $826

million.

We must commit to one another that we will achieve

balanced budgets by not living beyond our means and passing debt on to future

generations. We can pass on opportunities instead.

We have the potential to be a global energy leader. We

are also committed to bringing forward a future fund that will create a

mechanism to tackle the debt and invest to capitalize on the future economy.

Today, I am presenting a multi-year forecast that will

place the province in a surplus position in 2026-27.

It is balanced. It is achievable. It invests in

families, the economy, and the future.

For Budget 2021, oil is projected to be US$64 per

barrel and the Canada to United States exchange rate is forecasted at 79.6

cents. These projections are informed by 11 independent oil forecasters.

Personal Income Tax

Personal income taxes in Newfoundland and Labrador are

average or lower than other Atlantic Canadian provinces.

The provincial income tax structure has not changed

since the days when oil was more than $100 a barrel. We all know that wasn't

yesterday.

In this year's budget, we are adjusting tax brackets

for higher income earners and creating new brackets for those making more than

$250,000 per year. The changes will bring in an estimated $15.3 million in

additional revenue. For anyone with taxable income of less than $135,973 there

are no personal income tax changes.

SOME HON. MEMBERS:

Hear, hear!

COADY:

The

changes I've announced will bring us more in line with other Atlantic Provinces.

We will also evaluate increases to the HST while we

work to lessen the impact on the most vulnerable. We are committed to protecting

lower income and more vulnerable citizens from shouldering the burden of our

financial challenges.

Transforming Government

If there is anything that we've all learned during the

pandemic is that we can change the way we do things. It showed us that while it

was challenging, it certainly can be done. The same is true for addressing our

financial affairs.

Transformation is powerful and so is the outcome. We

can and must take those steps towards a sustainable fiscal future. Change can be

challenging but it gives us the opportunity to discover new ways of delivering

services, become more efficient and be the best version of ourselves.

To ensure effective, efficient service delivery,

Treasury Board is tasked with continuous improvement and program evaluation.

There will be an accountability framework developed for departments, agencies,

boards and commissions, as well as community agencies and all those that receive

public monies. An accountability framework defines purpose, intended results as

well as monitors and evaluates performance.

Nalcor is a provincial Crown corporation, created in

2007, which was tasked with developing the Lower Churchill Projects. As the

Muskrat Falls project is nearing completion, we will immediately begin a

comprehensive analysis and reorganization of Nalcor to streamline, remove

duplication and save money. We'll also be conducting a review of the province's

oil corporation.

Government works on behalf of its citizens and is

charged with the responsibility of providing the best service delivery.

Management of its provision, including ensuring the best possible quality and

value, is essential. The following entities will be merged into their respective

departments: Newfoundland and Labrador Centre for Health Information provides

quality health information and data analytics. It focuses on eHealth and

Telehealth. It will become part of the Department of Health and Community

Services. NL911 operates the province-wide emergency 911 service. The function

of this corporation will now become part of core government.

With a goal of making better use of our considerable

investment in education and ensure that investments target the classroom, not

administration, we will be taking the appropriate steps to integrate the

Education. During this work, we will closely communicate with the school

communities throughout the province.

The Department of Education will work with the Conseil

Scolaire Francophone to develop a more defined accountability framework.

Currently there are four regional health authorities

managing the health care system for our small population. This creates

duplication of back office functions, as well as a loss of efficient

procurement. Today, we are announcing an integrated corporate services model

that will streamline the delivery of functions such as payroll, finance,

accounting, human resources, information management and technology and

procurement. Health Accord NL will consider the full review of the best delivery

of the health system including the Board structure.

All Crown corporations and organizations will be

reviewed to determine where they are best positioned.

A House of Assembly committee will be created to review

financial statements, budgets, and the annual reports of Crown corporations and

organizations. This will ensure financial oversight, transparency and due

diligence through the democratic process.

We are also embarking on a process to maintain and

improve service delivery through joint solutions, in partnership with business,

social enterprises or other organizations to more effectively deliver facilities

management and provincial registries. This is a well-established delivery

approach and will ensure the people of the province receive the optimum value.

The delivery of marine services to coastal and remote

communities is an important element of the province's vast transportation

network. However, ferries in the province are heavily subsidized, some as much

as 95 per cent, and costing the people of the province more than $80 million

annually.

Clearly improvements are required. Therefore, we will

invite joint solutions for a more effective way to maintain and improve the

delivery of ferry service, taking into consideration the perspectives of the

people who use it.

In an increasingly digital world, now more than ever,

citizens expect that governments be innovative and deliver faster, easier access

to services in a secure manner. This year, we will build on the success of

MyGovNL and take further steps to improve service delivery to ensure better

interactions with government.

The ultimate goal is to increase efficiencies for those

who interact with government.

The people of the province have made tremendous

investments in real estate, offshore oil and gas projects, Marble Mountain, and

the Newfoundland and Labrador Liquor Corporation. These assets are for the

benefit of us all. Considering our financial challenges, we will now start a

process to review these assets. The analysis will guide our decisions on how

best to proceed.

COVID-19 and Health

COVID-19 is testing our spirt and our economic

well-being.

It is our personal responsibility to keep our families

and our communities safe. We adhered to sound public health advice; and are now

well into a vaccination plan that is protecting citizens and communities, and

ultimately leading to benefits attached to the reopening of our economy.

We all owe a heartfelt thank you to the many people who

emerged as heroes over the course of the pandemic – nurses, doctors, health care

professionals, truck drivers, grocery store clerks, and others – who are keeping

us safe and our communities strong.

SOME HON. MEMBERS:

Hear, hear!

COADY:

Budget 2021, we are taking the responsible step of continuing to allocate $100

million to respond to demands for such things as personal protective equipment,

testing and supporting vaccinations.

Health Outcomes

For too long, Newfoundland and Labrador has experienced

poor health outcomes and ranked at the low end of health indicators in Canada.

In fact, we spend approximately $1,500 more per capita on health care than the

national average, which is the highest in the country.

We have to be better. We have to live healthier.

Our government has set the ambitious goal of making

Newfoundland and Labrador one of the healthiest provinces by 2031.

Guided by Dr. Pat Parfrey, Sister Elizabeth Davis and a

world-class team of experts, Health Accord NL was created to reimagine the

health care system and to make certain that our health and social systems are

working together in ways that will lead to better outcomes for people and their

families.

Health Accord NL will deliver a 10-year Health Accord

with short, medium, and long-term goals for a health care system that better

meets the needs of Newfoundlanders and Labradorians. It will focus on

re-orienting and re-balancing our health system.

Improving access to more active lifestyles and creating

a culture that places greater emphasis on living healthier is central to

achieving better health outcomes.

To help create that needed change, in Budget 2021 we

are introducing a Physical Activity Tax Credit, which is estimated at $7 million

and will provide a refundable tax credit up to $2,000 per family. This will be a

helpful incentive for families as they look to access sport and recreational

activities. It also holds the added benefit of supporting the local health and

wellness industry.

SOME HON. MEMBERS:

Hear, hear!

COADY:

are also investing: $6.3 million to support recreation, physical activity,

athletic and sport development, as well as encourage active healthy lifestyles

for people of all ages and abilities; and, $3 million to support the City of

John's to host the 2025 Canada Games. The Games will stimulate interest in

fitness, create hundreds of new jobs and generate upwards of $110 million in

economic spending.

Chronic diseases impact the health of the population,

as well as the sustainability of the health care system. Over half of

Newfoundland and Labrador residents aged 12 years and older have at least one

chronic disease; many people live with more than one. To help address the social

determinants of health, Budget 2021 includes: a 20 cent per litre sugar

sweetened beverage tax, which will be implemented on April 1, 2022. This will

position Newfoundland and Labrador as a leader in Canada and will help avoid

future demands on the health care system.

SOME HON. MEMBERS:

Hear, hear!

COADY:

also includes more than $1 million for continued support of the Kids Eat Smart

Foundation, which supports the education, health, and well-being of school-aged

children through nutrition; a three cent per cigarette increase and a six cent

increase per gram on fine tobacco is also included. The rebate rate for Labrador

Border Zones will increase by three cents per cigarette and six cents per gram

for fine cut tobacco; and, $1.8 million to prevent and reduce tobacco and vaping

use.

According to Plan International Canada, one in seven

young people have either left school early or missed school entirely because

they do not have access to the sanitary products they need to manage their

periods.

Access should be available to hygiene products without

worrying about cost or embarrassment. In Budget 2021, we are allocating $30,000

to provide these products free of charge to students who need them.

SOME HON. MEMBERS:

Hear, hear!

COADY:

Technology is critical to health care delivery and sustainability, and

ultimately enhances patient care in a fiscally responsible way. This importance

has been highlighted during the COVID-19 pandemic and by adopting greater

innovation in the area of eHealth we will improve access to health care, in

particular mental health and pharmacy services. Continued investments in Budget

2021-2022 include: $3.3 million for the nurse practitioner virtual care program

through 811; and, more than $715,000 for mental health services through the 811

line.

Growing our Population

Our government recognizes that in order to reverse the

trend of an aging population with fewer young people to work and raise families,

we must attract more newcomers to settle here. We also have to ensure that the

young people who are already here, and those who have left and want to return,

choose Newfoundland and Labrador as their permanent home.

We believe that our province is well-positioned to

welcome 5,100 newcomers by 2026. While working to draw people to move here in

record numbers, we will also ensure Newfoundlanders and Labradorians have the

skills and supports they need to secure and maintain meaningful employment,

right here at home.

We will achieve these goals through an expanded Office

of Immigration and Multiculturalism; and by working hand-in-hand with other

levels of government, community and industry partners. This year, we are

investing: Primarily federal funding, approximately $230 million is allocated to

provide people with the skills to capitalize on new opportunities to meet

changing labour demands. This will help increase the participation of the

underrepresented groups such as women and youth in the provincial workforce;

more than $2 million over the next two years for a new online application system

to make it easier for potential newcomers to Canada to settle in Newfoundland

and Labrador; $1 million this year and $2 million annualized to attract

prospective residents from other parts of Canada and from around the world; and,

$200,000 to help newcomers adapt to their new home and help build a sense of

belonging to the community.

The newly-minted Department of Immigration, Population

Growth and Skills will also be focusing on celebrating the increased diversity

and the multiculturalism of our province in the K-12 system, workplaces, and the

public service.

Seniors

Our government is unwavering in its commitment to

supporting seniors and ensuring all citizens remain healthy, active and engaged.

Budget 2021 includes continued support for the following: $57 million for the

Seniors' Benefit, which supports approximately 49,000 seniors and their families

annually; $300,000 to support community initiatives that increase healthy,

inclusive communities through the Community Transportation Program; $95,000 for

the Age-Friendly Communities Program, which helps community partners plan for

changing demographics and implement activities that make communities more

inclusive; $300,000 for SeniorsNL to support information and referral services

for seniors and those who support seniors; and, $200,000 for the Seniors' Social

Inclusion Initiative which supports activities that promote social inclusion,

including a focus this year on an intergenerational program guide to increase

interaction between youth and adults.

Stronger Economy

Local businesses are the heart of our communities.

As we emerge from the pandemic, let's support

businesses throughout Newfoundland and Labrador. Eat, shop and buy local.

To further support small businesses and community

organizations, we have allocated $20 million to assist with the increased costs

and the losses as a result of the pandemic.

Economic Development

In mining, oil and gas, ocean technology, information

and communications technology or genetics research, Newfoundlanders and

Labradorians are leaving their footprints in markets all over the world.

Our skilled-labour is world-class and in-demand

globally. Our ocean technology sector is unlocking the vast potential of marine

environments in a safe and sustainable manner. And, as the importance of

digitalization grows so too does the province's technology sector as it is

positioned to add another 2,000 jobs over the next three years.

There is reason for great confidence in the future.

It is our responsibility to help fuel that growth. Our

focus is on providing entrepreneurs, innovators and businesses the tools they

need to succeed.

Mining

Last year, mineral exploration reached its highest

point over the last five years with close to 400 mineral exploration

applications processed. This year, we're projecting over $4 billion in mineral

shipments, more than $80 million in exploration expenditures, and approximately

7,700 person years of employment.

SOME HON. MEMBERS:

Hear, hear!

COADY:

This collective activity is capturing attention with the Fraser Institute

ranking the province number one in Canada and eighth globally for policy

attractiveness. We are ranked third in Canada and eighth globally in terms of

investment attractiveness.

Critical minerals are essential for renewable energy

and clean technology applications such as batteries, permanent magnets, solar

panels and wind turbines. Rising global demand for critical minerals is driven

in large part by their role in the transition to a low-carbon and digitalized

economy.

We are confident that with our wealth of rare earth

minerals, copper, tungsten, and zinc we are well-positioned to capitalize on

this potential.

The Prospectors and Developers Association of Canada

states that for every dollar in government spending in public geoscience results

in $5 in private sector exploration.

Recognizing this importance and its role in helping

attract new exploration investment to the province, this year we are investing

an additional $2.5 million for a focused geoscience data collection

interpretation. We are also investing $1.7 million for the mineral exploration

industry through the Prospector Assistance Program and the Junior Exploration

Assistance Program.

Oil

and Gas

Global events have impacted our offshore oil industry.

We believe in the wake of this, the collective effort

of our local private, public and community partnerships was exemplary. We united

to rally for this critical industry and the hard-working people who make their

living and support their families from it.

The Oil and Gas Industry Recovery Task Force provided

its final report to government in April. We are very thankful to its members for

their hard work and dedication in completing this important piece of work. Their

recommendations will help guide key priorities and actions to support the

recovery of the oil and gas industry.

There is a combined resource potential of 63.6 billion

barrels of oil and 224.1 trillion cubic feet of gas in just 10 per cent of the

province's offshore. This we know from an independent resource assessment.

Those resources are needed globally. We will continue

to make strategic investments in the oil and gas industry as we transition

toward a green economy and achieve net zero carbon emissions by 2050.

Coupled with the work of the task force and the Federal

Government, we have allocated more than $280 million to support offshore oil

projects. Additionally, $32 million has been allocated to support the local oil

and gas service and supply community through a public call for proposals and $20

million has been allocated to advance offshore seismic research, which is

beneficial as we market the sector globally.

Technology Development

Investments in technology and innovation cross all

sectors of the economy and the rapid expansion of existing technology companies

highlights the growth potential of our innovative industries.

It is paramount that we continue to work

collaboratively with industry to attract people in all areas of technology

development – everything from developers to sales and leadership. This includes

sparking the imagination of school-aged children to the exciting career

prospects in these industries and attracting newcomers to our province.

To encourage new opportunities for businesses and

communities, Budget 2021 includes: $27 million to support economic development

initiatives including research and development, commercialization, regional

development and business growth activities such as investment in the technology

sector. For every dollar we invest, we leverage at least $3 from other sources;

and, $8.5 million to support investment attraction.

Our government has committed to support TechNL's new

Innovation Centre, and we will continue to engage with investors around the

world to market the potential of the sector here in Newfoundland and Labrador.

Connectivity

Economically and socially, connectivity is an ongoing

concern for many residents – in particular, those living in underserviced areas.

These issues have been heightened as a result of

COVID-19. Businesses have turned to online applications to conduct business and

connect co-workers; physicians and health care professionals are caring for

patients virtually; students are connecting with teachers and classmates; and we

have all gone online to maintain vital social connections with our families and

friends.

As a government, we view advanced connectivity through

investments in cellular and broadband as being integral to a modern society and

fundamental in contributing to economic prosperity.

Building on past investments, $25 million is being

allocated over the next three years to improve cellular and broadband service.

SOME HON. MEMBERS:

Hear, hear!

COADY:

Since 2018, our $4 million in investments leveraged more than $47 million from

other sources demonstrating that our approach delivers results.

Tourism and Air Access

The global tourism industry has been deeply impacted by

COVID-19. Newfoundland and Labrador's tourism industry is no exception, but we

need to be competitively positioned to capitalize as travel demand returns.

Supported by the work of the Premier's Advisory Council

on Tourism, we will work with the industry on the road to recovery and

reinstating its position as a key employer and revenue generator, especially in

rural areas.

Based on this work and the importance of direct

investments in the industry, we are investing $30 million to address

recommendations from the council's report, including a Tourism and Hospitality

Support Program to alleviate pressures experienced by COVID-19.

Our role as a partner with this industry is reflected

in the continued investment of almost $13 million to promote the province, and

the launch earlier this year of the Stay Curious campaign. The campaign is

designed to inspire potential visitors to dream about travelling to Newfoundland

and Labrador now, but make their plans when the travel restrictions are lifted.

Most recently, we also launched the new in-province marketing campaign Your

Backyard Beckons, encouraging residents to explore what's right in their

backyard – areas throughout the province they may not have ventured to before.

In Newfoundland and Labrador, air access plays a

pivotal role in the provincial economy. It connects communities, stimulates

business development, transports rotational workers to and from their place of

work, connects families, and is critical to growing the tourism industry. Our

government is committed to continuing to work collaboratively with industry,

community and federal partners.

Arts, Culture and Entertainment

Newfoundland and Labrador is world-renowned for its

cultural identity and the tremendously talented artists that tell our story

through writing, dancing, music, art, craft, film and television.

They are also entrepreneurs and business operators and

they attract incredible investment to our province. In 2018 alone, cultural

industries generated more than $450 million in economic activity and exported

over $56 million worth of culture products.

We appreciate these artists are also an important part

of what attracts visitors to Newfoundland and Labrador, and that they too have

been impacted by COVID-19. Therefore, we will launch a new Artists Support

program as a component of the new Tourism and Hospitality Program. Additionally

we are investing $5 million for ArtsNL.

An emerging opportunity of our cultural industries is

the television and film industry.

Direct investments provide community benefits, and the

opportunity for local artists and skilled professionals, actors, writers,

directors, technicians, set designers, and others to further develop their

talents. Equally as important, it enables this growing core of skilled and

talented people to continue working in Newfoundland and Labrador.

This year will be a banner year in entertainment. There

are several significant projects in the pipeline and we are expecting 2021-22

production levels to exceed $90 million.

SOME HON. MEMBERS:

Hear, hear!

COADY:

With an additional $8 million in equity investments for the film and television

productions, we are well positioned to support employment opportunities for the

hundreds of people who work in this burgeoning industry.

Renewable Industries

As a major contributor to the provincial economy – the

agriculture, fishery, forestry, and aquaculture industries, are the economic

heart and soul of many communities. Collectively, they employ over 20,000 people

across the Island and in Labrador.

Through collaborative efforts with stakeholders to

build on and sustain these industries for the future, we are exploring

opportunities with our growing technology sector and ensuring that the workforce

is inclusive for Indigenous peoples, women and young people. Budget 2021

includes $4 million for the Atlantic Fisheries Fund to help the seafood sector

meet market demand for sustainably sourced, high-quality fish and seafood

products.

As we work towards achieving our goal of increasing

food self-sufficiency in fruits and vegetables to 20 per cent by 2022, this year

we are investing $9.8 million in agriculture programs.

These investments will support new farmers and crop

diversification.

The Community Garden Support Program has yielded great

success and enjoyment while improving access to fresh fruits and vegetables.

With roots firmly planted across the province, this year we're increasing the

grants from $500 to $750 to help eligible communities, municipalities and

organizations grow more gardens.

Environment and Climate Change

Awareness of the importance of environmental protection

and addressing climate change has increased dramatically in recent years. We all

share a goal of a cleaner, healthier environment.

Through innovation, Newfoundland and Labrador's public

and private sectors are working to slow the pace of climate change by reducing

carbon emissions, developing clean technologies and creating new green jobs. To

support this ongoing work and reducing our carbon footprint, Budget 2021

includes funding to advance programs under the federal-provincial cost-shared

Low Carbon Economy Leadership Fund, such as the Climate Challenge Fund, and

residential energy efficiency programs, as well as the industry-focused climate

change adaptation initiatives.

Based on the success of past green initiatives, today I

am pleased to announce a $1 million program to help transition homes whose sole

source of heat is oil to electricity. The program will provide a rebate of up to

$2,500 toward refitting your home.

Switching from a gas-powered to an electric vehicle is

becoming an increasingly real option for consumers. We are supporting efforts to

make electric vehicles more accessible and as a result, a fast-charging network

is being installed across the province. To build on this, $500,000 is being

provided for an Electric Vehicle Adoption Accelerator Program. This will provide

a $2,500 rebate to residents who purchase an electric vehicle.

Stronger Communities

Municipalities

Healthy, sustainable communities are essential building

blocks for Newfoundland and Labrador.

By supporting municipalities to improve service

delivery and their ability to advance such things as walking trails,

recreational infrastructure and capital works projects, we are contributing to

an improved quality of life, which is a selling feature as we market the

province to newcomers.

Through this year's budget, in partnership with the

Federal Government, we are investing over $147 million for communities to

improve infrastructure and enhance services. This includes funding for such

programs as the Canada Community-Building Fund (Federal Gas Tax Program),

Special Assistance Grants Program, and the Community Enhancement Employment

Program. Municipal operating grants are being maintained.

Approximately $70 million over three years for

communities that receive multi-year infrastructure funding; over $70 million for

community infrastructure projects over three years under the Investing in Canada

Infrastructure Program; and $7 million under the Municipal Capital Works Program

over three years to support projects that prioritize water, wastewater, disaster

mitigation, and regional collaboration.

We continue to work with Municipalities NL and the

Professional Municipal Administrators to support and implement regionalization

and the sharing of services. Together, we see it as holding the potential to

result in more efficient and effective services, better planning, economic

growth, and cost-savings through economies of scale.

A robust regionalization plan must be fair,

encompassing those who do not pay for the services they receive now, and

benefiting those in rural communities who currently may not receive services.

Hundreds of thousands of dollars are spent annually to

maintain roads in unincorporated areas and Local Service Districts. We will move

towards a structure in which everyone pays a fair share toward the cost of

providing and maintaining such services.

SOME HON. MEMBERS:

Hear, hear!

COADY:

The

benefits are many – access to regional economic development opportunities; fire

services; land-use planning; and, infrastructure planning, including water

systems and roads to name a few.

We all have a role to play in advancing a robust plan

for regionalization. Our government will ensure programs incentivize and support

this path forward. Regionalization projects currently require 10 per cent less

contribution from municipalities. Every community should be exploring such

opportunities.

We are stronger when we work together, each

contributing fairly and equitably to the important services we require. Such an

approach will ensure equal access to services with the costs shared by all.

Infrastructure

Investments in infrastructure play a vital role in

driving our province's economy.

Our investments in new schools, long-term care homes,

and new hospitals have led to hundreds of jobs for Newfoundland and Labrador

tradespeople.

In addition, our investments in transportation

infrastructure and repair and renovations to public buildings, such as schools,

health care facilities, and other community buildings have also contributed to

local economies all over the province.

This year, close to $600 million is allocated for

infrastructure improvements, which will help generate close to half a billion

dollars in economic activity and close to 4,500 full-time equivalent jobs.

Our investments include approximately: $170 million in

highway paving and maintenance, which is consistent with last year's Budget;

and, close to $30 million for improvements to health care facilities.

As noted earlier, we are also continuing to support

cost-shared programs for infrastructure projects in collaboration with

municipalities.

All this leads to better schools, improved health care

facilities, safer roads, and local employment.

Housing

Our government recognizes that safe, stable, affordable

housing – a place to call home – is essential to the social, financial and

physical well-being of individuals, families and our communities. Through

Newfoundland and Labrador Housing, we are working closely with other levels of

government and our community partners to reduce homeless and improve housing

affordability.

As announced by the Premier last week, funding has been

allocated to preserve and repair social housing, ensuring the sustainability of

these homes for all those that need them today and in the future.

We are also continuing to support community

organizations for such initiatives as the Supportive Living Program to help

prevent homelessness and transition houses to support women and children fleeing

intimate partner violence. More than $11 million is being contributed to the

Rent Supplement Program, which will be expanded this year.

And, $10.8 million is allocated for low-income

homeowner repair programs, supporting seniors to remain in their homes. This

Creating inclusive, accessible communities where all

people have equitable opportunities to work, socialize, and participate in

activities is at the forefront of our government's agenda.

Budget 2021 continues funding to support inclusion

initiatives such as the Accessible Vehicle Program, Accessible Tax Grant

Program, and Inclusion Grant Programs.

Women and Gender Equality

Through the newly created Office of Women and Gender

Equality, our government is working collaboratively with leaders, advocates,

community organizations and individuals to advance solutions to identified

issues and barriers.

Central to this work is the rigorous Gender-Based

Analysis Plus that government puts on programs, services, policies, legislation

and budgets. We also appreciate that the high rates of violence against women

and girls is rooted in gender inequity and that an intersectional,

research-based, and culturally sensitive approach to violence prevention in

collaboration with stakeholders is vital.

In Budget 2021, we will continue to invest more than

$3.2 million in operational funding for women's and anti-violence organizations.

There is also $425,000 allocated for the Sexual Assault Nurse Program and

further initiatives to support women in leadership.

Public Safety

It is important residents continue to feel safe at home

and in their communities.

The sense of security we have come to enjoy and expect

here is due in large part to emergency responders. Our volunteer firefighters

are getting our help with $2.7 million for fire protection equipment and

vehicles, as well as support for the Newfoundland and Labrador Association of

Fire Services.

To address the social and personal issues that

contribute to crime we continue to support therapeutic courts by allocating more

than $200,000 for Drug Treatment Court and $350,000 to explore an expansion to

the Family Violence Intervention Court. To increase supervision of offenders,

$508,000 will support the electronic monitoring program.

Improving Education and Childcare

Investments in childcare and in a publicly funded

education system are important for families, communities and the economy. The

investments we make today plant the seeds for greater rewards in the future.

A learning environment that focuses on higher-order

thinking beginning at a young age and continuing through the teenage years is

also linked to positive societal outcomes. It opens doors to exciting careers

and contributes to healthier, more dynamic communities.

Childcare

As a government, we are proud of the transformational

changes that are being made to improve access to childcare. With this being

Early Childhood Educators Week we would like to acknowledge the people who

provide this very valuable service.

We have helped build capacity and last year took the

bold step of introducing $25 per day childcare. It is a direct investment in

young families – one that eases the pressure on deciding whether to return to

work and sets the stage for lifelong learning.

We are optimistic that the Federal Government's

commitment to $10 per day childcare will advance our goals of reducing costs and

increasing the quality of early childhood education in this province.

SOME HON. MEMBERS:

Hear, hear!

K-12

COADY:

The

Education Action Plan has provided a roadmap to improve educational outcomes.

With 80 per cent of actions either completed or substantially underway and $42

million invested over the last three years, we are steadily making improvements

to the K-12 system.

From a human resource perspective, hundreds of new

positions have been added to the education system in such roles as responsive

teaching and learning, reading and program specialists.

In the classroom, student experiences in coding and

project-based learning are being enhanced; there has been greater emphasis on

multiculturalism; and we have put a greater focus on developing mental health,

behavioural and social-emotional programming.

In collaboration with our educational partners, we will

continue to take steps to transform the education system with the goal of

emphasizing higher-order thinking and a deeper, more responsive teaching and

learning approach.

This will include modernizing the junior high and high

school curriculum and creating alignment with emerging workforce demands.

In Budget 2021, we will maintain our commitment in the

K-12 system through investments that maintain key COVID-19 staffing supports, as

well valuable teaching resources hired through the Education Action Plan and

needs of newcomers to this province.

Newfoundland and Labrador's post-secondary institutions

make valuable social and economic contributions to our province. They support

economic activity, contribute to our communities and attract students from

around the world who want to study here.

In addition to academic pursuit, Memorial University is

a cornerstone of social, economic and professional development.

The institution has produced and fostered some of the

brightest minds who have gone on to great success here at home or abroad,

leading in their fields. Its faculties attract high-calibre students from across

the country and beyond.

As positive as those contributions are, we cannot

overlook that provincial investments in post-secondary institutions equate to

more than $21,000 per full-time equivalent student.

Comparatively, the Atlantic Canadian average is $11,900

and the Canadian average is over $10,000. The Provincial Government's operating

grant to Memorial University is 30 per cent higher than the national average.

This year, in collaboration with Memorial University,

we are introducing a more balanced funding arrangement. One that supports

Newfoundland and Labrador students, provides the university with greater

autonomy over tuition which it has requested and makes better use of taxpayers'

dollars.

In Budget 2021 we will provide a core operating grant

of $237 million, $53.9 million for the Faculty of Medicine, $68.4 million to

maintain the tuition freeze, as well as $13.9 million for infrastructure.

Collectively, this is a $373.2 million investment.

SOME HON. MEMBERS:

Hear, hear!

COADY:

However, next year the funding model will be different.

We will introduce amendments to the Memorial University

Act

to provide the university with greater

autonomy. We will enter a new arrangement that will see the annual tuition

offset to Memorial eliminated over five years. We will provide expanded access

to needs based grants for new Newfoundland and Labrador undergraduate students

impacted by tuition changes at Memorial University.

As we work with

Memorial University on a transition to greater autonomy there will be a

temporary freeze on any expansion of its physical footprint.

The College of the

North Atlantic is set to receive $88.2 million this year, which includes $14.9

million to maintain tuition levels for local students.

We will carefully

review the recommendations from the Post-Secondary Education Review Committee

and

the Premier's Economic Recovery Team to guide next steps.

Building Strong Partnerships

The prominence of partnerships and engagement in our

path forward has been highlighted through respectful dialogue with Indigenous

leaders, as well as the collaborative approach we have taken with the Premier's

Economic Recovery Team, Health Accord NL and other advisory committees.

As part of Budget 2021, we will maintain core funding

totalling more than $120 million for community-based organizations. This will

help support the more than 16,000 employees and volunteers that provide valuable

support for families and communities.

Indigenous Peoples

At the heart of our relationship with Indigenous

peoples is reconciliation. As we make amends for the past, our relationship with

Indigenous governments and organizations is built on mutual respect and

understanding. Together, we can ensure the dreams of Indigenous peoples are

honoured.

Today, we mourn the discovery of the remains of 215

children at the site of a former residential school for Indigenous children in

British Columbia. To show our respect, we have lowered the flags in front of

Confederation Building. On behalf of all Newfoundlanders and Labradorians, I

extend heart-felt sympathies.

As the review of cultural symbols, observances and

monuments continues in collaboration with Indigenous governments and

organizations continues, our actions are focused on building inclusive

communities.

Through Budget 2021, our investments to advance this

important relationship include: $4.2 million for the Inquiry into the Treatment

of Innu Children in Care; $241,500 for the Indigenous Violence Prevention Grants

Program, which provides funding for culturally-appropriate projects aimed at

preventing violence against Indigenous women and girls; $30,000 in core funding

to each of the province's three Friendship Centres; and, $25,000 for the

Provincial Indigenous Women's Gathering, which allows Indigenous women to come

together to share and identify ways to improve the lives and well-being of women

in their communities.

Poverty Reduction

We recognize these are challenging times for

individuals and families, particularly for those working hard to simply make

ends meet. Poverty is complex and there is no one size fits all solution.

COVID-19 has exacerbated these issues and exposed gaps

in programs, services and supports for people in poverty. Reducing, alleviating

and preventing poverty is central to improving overall well-being and creating

healthier people and communities.

In collaboration with our partners on the front-line of

delivering services to people in need, this year, we will launch initial steps

towards developing a renewed poverty reduction strategy.

As the new strategy is developed, we will continue to

invest in programs that support citizens that struggle with poverty. Budget 2021

includes: over $66 million for the Newfoundland and Labrador Income Supplement,

which supports approximately 158,000 individuals and their families annually;

$1.6 million to provide Metrobus or GoBus passes to income support clients in

St. John's, Mount Pearl and Paradise; and approximately $500,000 in new funding

for the Mother Baby Nutrition Supplement, which will increase the monthly

support for nutritional food during pregnancy and infancy to $100 – up from $60

per month.

Labrador

Great things are happening in Labrador and our

government is working with groups and organizations, the private sector and our

federal partners to make strategic investments to grow the economy and create

jobs.

Exciting development and exploration in Labrador's

mining sector is creating new jobs and contributing to the new wealth in the

region. We're also experiencing the growth of an innovative agricultural

industry that is supplying area residents with access to nutritional foods.

Labrador's tourism industry is also poised for growth as we emerge from

COVID-19.

We share the heightened anticipation of the opening of

the new Labrador Wellness Centre in Happy Valley-Goose Bay, which is aligned

with our vision for a healthier, more active province.

Construction of the Trans-Labrador Highway is nearing

completion. Paving of the highway continues with a $22.1 million investment this

year and we anticipate this vital road network will be completed over the next

two construction seasons.

Our government is working hard to leverage these

economic opportunities and providing the necessary social supports to residents.

Some of the specific investments we are making in

Labrador include $6.17 million for the extension of the Labrador Correctional

Centre, $4.8 million for the completion of the new mental health unit in Happy

Valley-Goose Bay, funding for a pre-feasibility study on the new airstrip in

Nain in partnership with the Nunatsiavut Government, as well as ongoing support

for the winter trail network, the Combined Councils of Labrador and the Labrador

Aboriginal Nutritional and Artistic Assistance program.

Conclusion

I will end as I started – asking for us all to come

together. For all of us to do our part, to strengthen and build a better

Newfoundland and Labrador.

A child born in this province today owes debt for their

birthright. In a place as rich with resources and strengthened by talent, a

place carved with grit and granite. Without fear of contradiction this isn't

what any of us want. We want to bestow with certainty the opportunity and

potential of this place. We want to give every ounce of its character, every

stone of its worth for this child to mould and yield a better life.

Let us all have the courage to make the bold decisions

and the faith to work together.

As I said in last year's budget –

We will not falter

We will not hesitate

We will not fold when things are difficult

We will preserve

We will accomplish

We will succeed

We will succeed for us and for the future generations

to come.

CHANGE starts here.

SOME HON. MEMBERS:

Hear, hear!

SPEAKER:

The

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

COADY:

Mr.

Speaker, I move, seconded by the Premier, that the debate be adjourned.

SPEAKER:

The

motion is that the debate be adjourned.

Is it the pleasure of the House to adopt this motion?

All those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

SPEAKER:

All

those against, 'nay.'

Carried.

On motion, budget debate adjourned.

SPEAKER:

The

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

COADY:

Mr.

Speaker, I wish to inform the House that I have received a message from Her

Honour the Lieutenant-Governor.

SPEAKER:

All

rise.

The following message is addressed to the Minister of

Finance:

As the Lieutenant-Governor of the Province of

Newfoundland and Labrador, I transmit Estimates of the sum required for the

Public Service of the Province for the year ending 31 March 2022, in the

aggregate of $8,024,380,400, and in accordance with the provisions of sections

54 and 90 of the Constitution Act, 1867 ,

I recommend these Estimates to the House of Assembly.

Sgd.: _________________________________

Her

Honour, Judy Foote, Lieutenant-Governor

Please be seated.

The hon. the Minister of Finance and President of

Treasury Board.

COADY:

Mr.

Speaker, I move, seconded by the Premier, that the message, together with the

Estimates, be referred to the Committee of Supply.

SPEAKER:

is moved and seconded that the message from Her Honour the Lieutenant-Governor,

together with the Estimates, be referred to a Committee of Supply and that I do

now leave the Chair.

Is it the pleasure of the House to adopt the motion?

All those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

SPEAKER:

All

those against, 'nay.'

Carried.

On motion, that the House resolve itself into a

Committee of the Whole, the Speaker left the Chair.

Committee of the Whole

CHAIR (Warr):

Order, please!

We shall now take a few minutes to distribute the

budgetary documents to all hon. Members.

(Budgetary documents are distributed.)

CHAIR:

The

hon. the Government House Leader.

CROCKER:

Thank you, Mr. Chair.

I move that the Committee rise, report progress and ask

leave to sit again.

CHAIR:

The

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

Is it the pleasure of the House to adopt the motion?

All those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

CHAIR:

All

those against, 'nay.'

Motion carried.

On motion, that the Committee rise, report progress and

ask leave to sit again, the Speaker returned to the Chair.

SPEAKER (Bennett):

Order, please!

The hon. the Member for Baie Verte - Green Bay and

Chair of Committees.

WARR:

Mr.

Speaker, the Committee of Supply have considered the matters to them referred

and have directed me to report that they have made some progress and ask leave

to sit again.

SPEAKER:

The

Chair of the Committee of Supply reports that the Committee have considered the

matters to them referred and have directed him to report that they have made

some progress and ask leave to sit again.

When shall the report be received?

CROCKER:

Now.

SPEAKER:

Now.

When shall the Committee have leave to sit again?

CROCKER:

Tomorrow.

SPEAKER:

Tomorrow.

On motion, report received and adopted. Committee

ordered to sit again on tomorrow.

SPEAKER:

Notices of Motion.

Notices of Motion

SPEAKER:

The

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

COADY:

Thank you very much, Mr. Speaker.

I give notice that I will move that the House resolve

itself into a Committee of the Whole to consider a resolution respecting the

imposition of taxes on tobacco, Bill 13.

Mr. Speaker, I give notice that I will move that the

House resolve itself into a Committee of the Whole to consider a resolution

respecting the imposition of taxes on personal income tax, Bill 14.

Mr. Speaker, I give notice that I will ask leave to

introduce a bill entitled,

An Act to Amend the Income Tax Act, 2000, No. 2, Bill

Mr. Speaker, I give notice that I will move that the

House resolve itself into a Committee of the Whole to consider a resolution

relating to the raising of loans by the province, Bill 17.

Mr. Speaker, I give notice that I will ask leave to

introduce a bill entitled,

An Act To Amend The Lotteries Act, Bill 18.

SPEAKER:

Any

further notices of motions?

The hon. the Government House Leader.

CROCKER:

Thank you, Mr. Speaker.

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

entitled,

An Act To Amend The Vital Statistics Act, 2009, No. 2, Bill 19.

Mr. Speaker, I give notice that I will ask leave to

introduce a bill entitled,

An Act To Amend The Securities Act, Bill 16.

Mr. Speaker, I give notice that I will on tomorrow move

the following motion:

That notwithstanding Standing Order 63, this House

shall not proceed with Private Members' Day on Wednesday, June 2, 2021, but

shall instead meet at 2 p.m. on that day for Routine Proceedings and conduct

government business, and that at 5 p.m., the Speaker shall adjourn the House.

Mr. Speaker, I give notice that I will on tomorrow move

the following motion:

That the Public Accounts Committee comprises the

following Members: the Member for Placentia - St. Mary's, the Member for Baie

Verte - Green Bay, the Member for St. George's - Humber, the Member for Mount

Pearl North, the Member for Stephenville - Port au Port, the Member for Terra

Nova and the Member for Labrador West.

That the Privileges and Elections Committee will

comprises the following Members: the Member for Virginia Waters - Pleasantville,

the Member for Burin - Grand Bank, the Member for St. Barbe - L'Anse aux

Meadows, the Member for Grand Falls-Windsor - Buchans and the Member for St.

John's Centre.

That the Standing Orders Committee comprises the

following Members: the Member for Carbonear - Trinity - Bay de Verde, the Member

for Mount Scio, the Member for Windsor Lake, the Member for Harbour Main and the

Member for Labrador West.

That the Miscellaneous and Private Bills Committee

comprises the following Members: the Member for Cartwright - L'Anse au Clair,

the Member for Placentia - St. Mary's, the Member for St. George's - Humber, the

Member for Topsail - Paradise and the Member for St. John's Centre.

SPEAKER:

Further notices of motions?

The hon. the Government House Leader.

CROCKER:

Thank you, Mr. Speaker.

I give notice and by leave move the following motion:

That the Government Services Committee comprises the

following Members: the Member for St. George's - Humber, the Member for Mount

Pearl North, the Member for Burin - Grand Bank, the Member for Baie Verte -

Green Bay, the Member for Ferryland, the Member for Torngat Mountains and the

Member for Labrador West.

That the Resource Committee comprises the following

Members: the Member for Placentia - St. Mary's, the Member for Mount Pearl

North, the Member for Baie Verte - Green Bay, the Member for Burin - Grand Bank,

the Member for Bonavista; the Member for Exploits and the Member for Labrador

West.

That the Social Services Committee comprises the

following Members: the Member for Mount Pearl North; the Member for Burin -

Grand Bank, the Member for St. George's – Humber, the Member for Placentia - St.

Mary's; the Member for Cape St. Francis, the Member for Placentia West -

Bellevue and the Member for St. John's Centre.

SPEAKER:

it the pleasure of the House to adopt the motion?

All those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

SPEAKER:

All

those against, 'nay.'

Carried.

The hon. the Government House Leader.

CROCKER:

Mr.

Speaker, I further give notice and by leave move that the following heads of

expenditure be referred to the Government Services Committee: the Consolidated

Fund Services, the Department of Digital Government and Service Newfoundland and

Labrador, the Department of Finance, the Public Procurement Agency, the Public

Service Commission and the Department of Transportation and Infrastructure.

That the following heads of expenditure be referred to

the Resource Committee: the Department of Fisheries, Forestry and Agriculture;

the Department of Immigration, Population Growth and Skills; the Department of

Industry, Energy and Technology; the Department of Tourism, Culture, Arts and

Recreation; and the Department of Environment and Climate Change.

And that the following heads of expenditure be referred

to the Social Services Committee: the Department of Children, Seniors and Social

Development; the Department of Education; the Department of Municipal and

Provincial Affairs; the Department of Health and Community Services; the

Department of Justice and Public Safety; and the Newfoundland and Labrador

Housing Corporation.

Mr. Speaker, I also wish to advise Members that on

Monday, May 31, 2021, at 5 p.m., the Resource Committee will meet in the Chamber

to review the Estimates for Tourism, Culture, Arts and Recreation.

SPEAKER:

Is it the pleasure of the House to adopt the motion?

All those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

SPEAKER:

All those against, 'nay.'

Carried.

The hon. the Government House Leader.

CROCKER:

Thank you. Mr. Speaker, I move, seconded by the Premier, that the remaining

Orders of the Day do stand deferred and that this House do now rise to adjourn.

SPEAKER:

is the motion of the House that we now adjourn.

Is it the pleasure of the House to adopt the motion?

All those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

SPEAKER:

All those against, 'nay.'

Carried.

This House now stands adjourned until tomorrow,

Tuesday, June 1, at 1:30 p.m.

On motion, the House at its rising adjourned until

tomorrow, Tuesday, at 1:30 p.m.