March

26, 2009

HOUSE OF ASSEMBLY PROCEEDINGS

Vol. XLVI No. 2

The House met at 2:00 p.m.

MR. SPEAKER (Fitzgerald): Order please!

The hon. the Minister of Finance.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Mr. Speaker, I move, seconded by the Premier: That This

House Approves in General the Budgetary Policy of the Government.

MR. SPEAKER: The motion is: That This House Approves in General the

Budgetary Policy of the Government.

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

MR. KENNEDY: Thank you, Mr. Speaker.

Mr. Speaker, before I begin today I just want to have one brief word of

congratulations. My parents, Pat and Flora Kennedy, are here from Carbonear and

it is their forty-ninth wedding anniversary today.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Also, my wife Rachel is here and she thinks I forgot

that today is also our fifteenth wedding anniversary. So congratulations!

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY:

INTRODUCTION

Mr. Speaker, it is an honour for me to bring down our government's sixth

budget, my first as Finance Minister.

Six years ago, our government was elected to lead Newfoundland and Labrador

from the shadows of decline and dependency to a bright future of growth and

self-reliance. To some, it seemed an impossible dream, but to this government,

failure is not a future we are willing to accept. Our destiny is in our own

hands, and we are not too timid to set lofty goals.

With a bright future for our children clearly in view, we chose to walk the

more challenging course. We set out to do what needed to be done to get our

fiscal house in order, challenging defeatist assumptions about the limitations

of our economy.

We saw in our people the boundless capacity to rise above parochial divisions

and unite in common purpose to bring Newfoundland and Labrador to a higher

plateau of opportunity. We found the resolve to draw the line in the sand

against resource giveaways, the resilience to stand together in the fight for

fair treatment in this federation. We were prepared to take a tough stance in

order to obtain equity stakes in the development of our resources. We lowered

barriers to opportunity to lift families from poverty, and we reinvested the

dividends of our success in the social programs that keep us strong.

Right now all around the world, there is an economic storm, but in this

Province, our confidence remains unshaken because our foundation is rock solid.

As governments the world over wonder what course to take, we have the confidence

that comes from knowing that our approach has been proven to succeed. Having

plotted the course that leads from decline to growth, we will stay that course.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Economists are recommending the very measures our government

has been taking since 2003: invest in infrastructure, create employment, lower

taxes, hold a short leash on debt, and spend every public dollar wisely. Through

these measures, we have laid the strongest of foundations.

Mr. Speaker, let me also say that, even though he has been criticized by some

at times of tough negotiations and tough decisions, our Premier is the one whose

strong leadership and bold vision in tough times has helped Newfoundland and

Labrador turn the corner at last and step forward with confidence toward a new

era of self-reliance.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Under his leadership, Mr. Premier, our team has only just

begun.

Budget 2009 outlines our continued plan to strengthen the economy while

protecting important programs and services. We will not make poor decisions

today that will sacrifice our continued path to prosperity. We will, Mr.

Speaker, make record of investments in infrastructure. We will strengthen our

health and education systems to levels not seen before. We will continue to work

towards reducing poverty. We will continue to develop knowledge-based industries

and foster business development. We will continue to ensure Labrador receives

its fair share. We will protect our pristine environment.

In Budget 2009, as masters of our own destiny, we are building on our strong

foundation to raise to new heights the pillars of growth, prosperity,

sustainability and self-reliance.

THE ECONOMY

Mr. Speaker, from a global economic perspective, the past year has been the

most tumultuous of our times. After a long period of sustained growth, most

countries around the world are now experiencing an economic contraction. As a

trading Province, Newfoundland and Labrador has naturally felt the impact,

mostly in the latter part of 2008 and continuing into 2009.

Economic Performance 2008

Overall economic performance in 2008 was strong:

Employment grew by 1.5 per cent to 220,300 and the unemployment rate declined

to 13.2 per cent, down 0.4 percentage points from 2007. This was the lowest

provincial unemployment rate since the 1970s;

Personal income grew by 5.2 per cent while disposable income increased by 5.8

per cent, aided by tax cuts implemented by our government;

Retail sales expanded by 7.7 per cent, driven by income gains and high levels

of consumer confidence;

Residential construction investment increased by 20.8 per cent to $1.4

billion, and housing starts were up 23.1 per cent to 3,261 units;

Total investment in the Province rose 3.3 per cent to $4.4 billion, largely

on the strength of residential, public sector and manufacturing spending

increases; and

GDP increased by 1.8 per cent, driven by consumer and government

expenditures.

As of July 1, 2008, Newfoundland and Labrador's population stood at

507,895, an increase of 1,400 compared to a year ago. This marked the first time

in sixteen years that the Province recorded an increase in population.

SOME HON. MEMBERS: Hear, hear!

2009 Economic Outlook

MR. KENNEDY: Mr. Speaker, much of our economy is resource-based, and we

operate in global markets. As a Provincial Government, we are unable to

influence the demand for, or the price of, minerals, forestry products, fish or

oil. It is taking the concerted efforts of countries around the world to reverse

the economic downturn.

However, there are things that we can do to cushion the impacts of the

downturn, and to emerge in a strong position as world economies regain momentum.

The things we can do are the very things that we have done, we are doing, and we

will continue to do.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: We have built a strong foundation.

Last month, our government announced an unprecedented $800 million

infrastructure program for the coming fiscal year, which will build on

government's investment of $1.5 billion in infrastructure over the past five

years. When combined with projected spending in the next several years, this

infrastructure program will reach $4 billion.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Our tax reductions have already put more money back into the

hands of the people, freeing up money for spending and investment in the

Province.

We have made investments in job creation.

We have reduced the Province's debt.

Our prudent fiscal management has positioned us to absorb the shockwaves

originating beyond our shores.

A number of key indicators assist in projecting economic performance for the

coming year. Despite the economic downturn, we still expect growth in a number

of areas.

Mr. Speaker, while many economic indicators are positive or reasonably

stable, a 7.7 per cent decline in GDP is anticipated, largely as a result of the

decline in exports of minerals, newsprint and oil. GDP for a resource based

economy such as Newfoundland and Labrador will be volatile, reflecting not only

changes due to economic cycles but also natural changes in oil production which

are not a consequence of the worldwide recession. The stability of other

economic indicators is more indicative of the performance of the provincial

economy as a whole.

Personal income and disposable income are expected to grow by 3 per cent and

3.7 percent respectively, aided by wage gains and the annualization of last year's

tax cuts.

Retail sales are expected to grow by 1.2 per cent, while capital investment

is expected to grow by 9.4 per cent.

Housing starts, which peaked in 2008, will remain strong at 2,648 units,

which is still high by historical standards and on par with the level of 2001.

Employment is expected to decline from 2008 levels by 1 per cent to 218,100,

but is still forecast to exceed 2007 levels.

Consistent with what is expected throughout Canada and the industrialized

world, unemployment is expected to increase. In Newfoundland and Labrador, the

unemployment rate is expected to rise by 1 percentage point to 14.2 per cent in

2009, reflecting both losses in employment and an increased labour force.

However, by 2010, we expect both employment and unemployment numbers to resume a

positive trend.

Beyond 2009

Mr. Speaker, despite the economic storm clouds, we see clearer skies ahead.

In addition to our aggressive infrastructure program, we can look forward to

significant investment from the private sector.

The Vale Inco hydromet project will begin in 2009 and will ramp up in 2010.

We look forward to the development of the White Rose Expansion, followed by

the Hebron Project, in both of which our Province is an equity partner.

And, we intend to develop the Lower Churchill.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: All of these projects will create substantial employment and

spur economic growth.

We have learned from history that the economy runs in cycles. Economic

forecasters predict that the global economic recession will continue in 2009 and

recovery should begin late this year and continue in 2010. We expect prices of

and demand for our resources to improve. We are optimistic that the major

projects currently on hold will then move forward.

FISCAL FRAMEWORK

Review of 2008 -09

Mr. Speaker, the 2008-09 fiscal year represents a defining moment in our

relentless pursuit of prosperity and self-reliance. In this year, we ceased to

be an Equalization recipient province.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Being off Equalization is a major advancement toward

self-reliance. It has renewed our confidence, enhanced our self-esteem, and

increased our resolve.

Less than two months ago I released the Public Accounts for 2007-08 which

recorded our third consecutive surplus, a record $1.4 billion. I am pleased to

say that 2008-09 will be the fourth consecutive surplus. Before taking into

account the recognition of revenue from the 2005 Atlantic Accord, the surplus

will be $1.3 billion.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: After Atlantic Accord recognition, the surplus will be a new

record of $2.4 billion.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Mr. Speaker, our government maintains its commitment to

fiscal prudence and a focus on debt reduction. Four years ago, our net debt was

approaching $12 billion, almost $23,000 for every man, woman and child, and well

over twice the per capita national average. At March 31, 2009, we expect that

net debt will be $7.9 billion.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: With net debt, Mr. Speaker, per capita reduced to about

$15,500. However, we recognize that this is still high by national standards.

Mr. Speaker, in hindsight, we can affirm that our resolve to decrease debt

has served us well. We understood that if we did not reduce debt in the good

times, it would be more difficult to meet financial challenges in times of

economic uncertainty. Our prudent fiscal management enables us to navigate the

economic storm that is upon us.

Forecast for 2009-10

Since 2005-06, the Province has recorded four consecutive surpluses totalling

in excess of $4.2 billion. We have reduced our debt. We have reduced our taxes.

We have invested in infrastructure, economic development and programs. The

record of success gives the Province the flexibility to be able to deal with the

economic issues facing us in 2009-2010 without having to cut programs and

compromise the progress we have already made.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: We will stay the course, Mr. Speaker, without an increase in

our borrowing.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Mr. Speaker, our government will run a deficit of $750

million in 2009-2010 rather than cut spending for important programs and

services. Our government is not reducing its workforce as a result of the global

economic slowdown or cutting wages.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Our government recognizes that, during difficult economic

times, we must take measures to stimulate the economy, not to weaken it. We have

successfully reached collective agreements with most of our public service

workers which will see an increase of over 20 per cent over four years resulting

in increased spending locally.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: We have implemented two successive years of tax cuts which

are already providing stimulus to the economy. And, we will increase program

spending by $519 million in 2009-2010.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Mr. Speaker, approximately $383 million of the projected

deficit for this fiscal year is related to the impact of stock market declines

on the value of our pension funds.

More than half of this deficit, $414 million, can be attributed to the

unilateral action of the Harper government to eliminate benefits under the 1985

Atlantic Accord.

SOME HON. MEMBERS: Oh, oh!

MR. KENNEDY: The federal government, Mr. Speaker, in its recent budget,

imposed a massive cut on just one province, and that province is ours,

contravening a long-standing agreement they had made with Newfoundland and

Labrador. We as Newfoundlanders and Labradorians are outraged that, after

working so hard to achieve a greater measure of fairness and self-reliance in

this federation, we are now being punished for our initiative.

Were it not for the actions of the federal government and pension fund value

declines, we would be forecasting a surplus. Oil royalties, Mr. Speaker, are

expected to decline by $913.5 million this fiscal year due to both lower prices

and lower production. Last fiscal year, the price of oil averaged $86.44 U.S.

The current forecast assumes an oil price of $50 U.S. Given current oil prices,

we feel this is a prudent estimate.

While 2009-2010 is expected to be challenging, both economically and

financially, we expect that growth will resume globally by 2010 and with it an

increase in demand for the resources of our Province. It is our expectation that

the Province will return to surpluses no later than 2011-2012.

SOME HON. MEMBERS: Hear, hear!

BUILDING ON OUR STRONG FOUNDATION

Building Infrastructure

MR. KENNEDY: Mr. Speaker, solid infrastructure is the foundation on which

a self-reliant economy is built. Good highways and broadband are conduits for

trade. A good supply of energy is the lifeblood of industry. Good schools and

hospitals enable communities to grow. Recognizing how fundamental this principle

is, our government made strong investments in infrastructure a priority from the

start of our term, and Newfoundland and Labrador is better off today because we

did.

This year, with the $800 million in infrastructure investments we have

recently announced, we will not only position our Province for stronger growth

when economic conditions rebound, but also get people working and money flowing

now while the economy is slowing. At a time of slowdowns in some sectors in this

Province and layoffs in other provinces bringing our people back home, we are

here to help with infrastructure investments this year that will create or

sustain up to 5,400 jobs for Newfoundlanders and Labradorians, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: These investments, Mr. Speaker, are spread over many regions

and many sectors. They include, approximately $277 million for transportation

infrastructure; more than $155 million for educational facilities; more than

$160 million for health care facilities and equipment; more than $103 million

for municipal infrastructure; more than $28 million for Newfoundland and

Labrador Housing infrastructure; and more than $20 million for Justice

infrastructure.

We will invest $235.5 million in various road projects throughout the

Province inclusive of federal contributions.

We are taking advantage, Mr. Speaker, of every opportunity to leverage

federal dollars with investments of our own. Newfoundland and Labrador is

anticipating a federal contribution under federal-provincial infrastructure

agreements of approximately $118 million toward a number of projects currently

under consideration.

In Marystown, we will invest $44 million this year to start construction on

two new vessels for the provincial ferry fleet a great way to launch our

vessel renewal strategy and planning will also be advanced this year to

construct an additional two vessels.

This year, we will make a total investment in municipal infrastructure

spending of $103 million to benefit families and communities large and small

throughout Newfoundland and Labrador. New projects will include water and sewer

treatment, roads and recreational facilities.

Working with Central Newfoundland

Mr. Speaker, the Central Region of this Province received bad news when

AbitibiBowater announced the closure of its operations in Grand Falls-Windsor

and the resulting impact on the surrounding communities. Even before

AbitibiBowater announced its intentions we mobilized a Ministerial Task Force

consisting of senior ministers and departmental officials to work collectively

with communities, unions, and businesses to provide solutions to mitigate the

loss of employment and wealth in the region. We then took immediate action to

protect the interests of the Province and the people of Central Newfoundland.

Solutions take time, but our experience in Stephenville demonstrates that this

approach works, and we are confident that the Central Region will continue to be

a leader in generating prosperity and be home to a strong economy for

generations to come.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: In the meantime, we acknowledge the need right now for

focused stimulus measures to help the region make a successful transition. It is

important to remember, Mr. Speaker, that throughout Grand Falls-Windsor and the

entire Central Region, ongoing provincial operations, including everything from

health care to education to road maintenance, contribute between $175 million

and $200 million a year to the local economy and provide a strong and stable

foundation of jobs and spending in local communities. This year, we are prepared

to do even more.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: We will spend in excess of $35 million this year for

infrastructure projects in the Central Region, including millions for the

Trans-Canada Highway within the region and $5.4 million for municipal multi-year

capital works.

A further $5.3 million will be invested for repairs and renovations of health

care facilities, plus $4.6 million to improve the Central Newfoundland Regional

Health Centre.

Mr. Speaker, I am pleased to advise that the residential treatment centre for

youth with addictions previously announced as part of our $800 million

infrastructure investment will be built in Grand Falls-Windsor.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Mr. Speaker, $2.3 million will be spent on forest and

agricultural resource road construction, $1.6 million for maintenance and

improvements of Newfoundland and Labrador Housing units, and $3.4 million to

support the construction of an aquaculture facility in St. Albans.

$500,000, Mr. Speaker, for upgrades to the College of the North Atlantic in

Grand Falls-Windsor.

A further $445,000 will be invested for repairs and renovations of school

facilities; and additional funding for recreation grants, wastewater treatment

facilities, and Crown Lands.

Mr. Speaker, our government committed to maintaining the Home Heating Rebate

program, and we have not only maintained but enhanced the benefits under the

program. Last year, approximately 76,000 rebates were provided, assisting

individuals with home heating costs. Today, I am pleased to announce that the

administration of this program will be located in Grand Falls-Windsor.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Administration of the Parental Benefits Program will also be

located in that office, providing employment opportunities for people in Central

Newfoundland. This represents an expenditure of $720,000 in 2009-2010.

We have allocated $5 million from the Federal Government's Community

Development Trust towards advancing economic development priorities in the

Central Region. In addition to the $5 million allocation, in close collaboration

with the recently announced Community Development Committee, communities, and

businesses, we will utilize the Provincial Government's comprehensive suite of

programs and initiatives to identify growth and diversification opportunities.

By utilizing all available economic development programs there is significant

opportunity to leverage and advance in an aggressive manner sustainable

development.

Mr. Speaker, allow me to speak to the people of the Central Region a

collective and collaborative approach is required to strengthen the region. It

may take time to see and feel the impact of investments but we are standing

shoulder to shoulder with you to work through these challenging times.

SOME HON. MEMBERS: Hear, hear!

Investing in Labrador

MR. KENNEDY: Mr. Speaker, Budget 2009 provides an investment of more than

$135 million in Labrador through the Northern Strategic Plan, our government's

plan for building a future of opportunity and prosperity in Labrador. It is

expected that more than $400 million will be spent over the course of the

five-year plan.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: In this third year of our five-year plan, we will mark a

major milestone by completing Phase III of the Trans-Labrador Highway.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: With an investment of $32.5 million, we will complete the

highway from Cartwright to Happy Valley-Goose Bay, an historic accomplishment

that matches in significance the completion of the Trans-Canada Highway on the

island in the 1960s. For the first time in our history, there will be an

unbroken road-and-marine route from Labrador City to St. John's. Not only will

we complete the road connection in 2009, but we will also move forward with work

to place a hard driving surface on the Highway from Happy Valley-Goose Bay to

Labrador City-Wabush with an additional investment of $52.3 million. This is a

total of $84.8 million, including a federal contribution of $26.5 million for

the Trans-Labrador Highway this year, and we will also invest another $4 million

on top of that to construct two new depots on the Highway.

Government has allocated $130 million this year for projects, including the

Trans-Labrador Highway, to increase economic activity and improve infrastructure

in Labrador.

Other investments include:

$19 million for a new francophone school in Happy Valley-Goose Bay and two

new K-12 schools in Port Hope Simpson and L'Anse au Loup;

$9.5 million for construction of the new College of the North Atlantic campus

in Labrador West;

$5.5 million in new and ongoing funding through the Municipal Capital Works

programs;

$4.7 million for continued funding for the new health care facility in

Labrador West; and,

$2 million for the construction of a new pre-trial detention centre for women

and youth in Happy Valley-Goose Bay.

SOME HON. MEMBERS: Hear, hear!

Strengthening Our Health Care System

MR. KENNEDY: Mr. Speaker, our government will continue this year to

invest to strengthen our Province's health care system. Budget 2009 includes a

record $2.6 billion for health and community services in Newfoundland and

Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Earlier this month, our government received and publicly

released the report of the Commission of Inquiry on Hormone Receptor Testing.

Madame Justice Cameron made sixty recommendations which cover a number of areas,

from training of health care professionals to recruitment, from information

management protocols to legislative reform. Some reforms have already been

initiated.

Our government also received forty-one recommendations from the Task Force on

Adverse Health Events, which we commissioned in May 2007 to examine how the

provincial health system identifies and responds to various types of adverse

events that may impact patients.

We are moving forward this year with a $21.4 million investment to further

enhance laboratory services, cancer care and health information management in

the Province, bringing our total new investment in these core areas since 2007

to more than $75 million.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Our initiatives this year respond directly to the findings

and recommendations of Justice Cameron and the Task Force, and will help us make

our health care system stronger and more accountable to the people it serves.

These initiatives include:

The establishment of new positions such as patient navigators and a

provincial director of pathology and laboratory services;

The establishment of a provincial coordinating office to manage adverse event

reporting and the hiring of five patient safety officers and five physician

champions throughout the Province;

Quality improvement initiatives that will lead to a provincial accreditation

program and the hiring of seventeen new laboratory and quality management

personnel;

New laboratory equipment, a new radiation treatment machine at the Dr. H.

Bliss Murphy Cancer Clinic and planning for a PET scanner;

Continued funding for the development of the electronic patient record under

the direction of the Newfoundland and Labrador Centre for Health Information;

and

Support for the provincial cancer registry, which is an important component

of health care delivery designed to capture the names and link the records of

all individuals in the Province who receive a cancer diagnosis.

These measures are the next steps in an ongoing and never-ending process to

improve the delivery of health care in light of the recommendations we have

received and the feedback we will continue to seek.

To address the need for health care professionals, we will allocate an

additional $3.5 million this year to hire thirty new salaried physicians to meet

the current medical needs of our population.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: As of September 30 last year, there were more

physicians in practice in this Province than ever before

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: - a total of 1,029 medical doctors - but we know more are

needed, so we are prepared to take additional steps to advance recruitment and

retention.

We will invest $663,300 this year to hire dedicated physician recruitment

staff and finance marketing and advertising efforts to bring new doctors here.

Once improvements are achieved in this area, the recruitment personnel will then

be utilized to recruit health care professionals in other disciplines. We will

also invest another $2 million to advance professional development activities in

the regional health authorities and enhance their capacity to address workforce

recruitment and retention needs on a more timely and efficient basis.

We will provide a further $5.1 million to enable Memorial University's

Faculty of Medicine to proceed with the second expansion of its undergraduate

training program for physicians and address increased operating costs. The

number of medical students Memorial trains each year will increase from

sixty-four to eighty by 2011 as a result of the expansion. That represents a 25

per cent increase in the number of doctors we train right here in Newfoundland

and Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Mr. Speaker, I am going to do something right here that I am

told is not normal, and it has not happened in the recent past, but I am going

to go a little bit off script.

Mr. Speaker, government noted, after last year's Budget Speech, that the

President of the Newfoundland and Labrador Nurses' Union stated, "What is

most disappointing to me is that, while the word retention was put in there, in

the Highlights document, there is not one initiative there around the retention

of nurses."

It is felt, Mr. Speaker, by us as a government, that the very generous 21.5

per cent compounded salary offer over four years will help to address

recruitment and retention issues for nurses. In addition, Mr. Speaker,

government is further prepared to deal with recruitment and retention issues for

nurses by the addition of a step at the top of the scale and the deletion of two

steps at the bottom, and to increase shift differentials and standby rates.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: This is contingent, of course, on the union's acceptance

of a collective agreement, including government's proposals on issues such as:

term of contract, extended earnings loss, market adjustment letter,

classification, MOU, et cetera.

Back to script, Mr. Speaker: We will also provide $1.6 million to the

regional health authorities over two years to supplement tuition and

relief-staff costs so Licensed Practical Nurses can receive continuing education

in medication administration and health assessment, both of which will be

required for LPN licensure by 2012.

We are in year two of an initiative to enhance professional schools and we

will increase Memorial's grant by $1.6 million.

Our government will expand the School of Nursing by ten seats;

We will expand the School of Pharmacy by twenty seats;

The school of Social Work's bachelors' program will be expanded by

fifteen seats; and the Social Work masters' program will be increased by

fifteen seats.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: We will also provide $450,000 to create a social worker fast

track program.

Our health care professionals require advanced diagnostic, medical and other

equipment to effectively diagnose diseases and treat the patients who have them.

To build on our strong foundation of major investments in health care equipment,

we will invest an additional $50 million to purchase such equipment as:

Oncology hematology systems for the Dr. H. Bliss Murphy Centre;

Ultrasound machines for Carbonear and Burin;

A replacement CT Scanner for Grand Falls-Windsor;

An endoscopy unit for Stephenville; and

Laboratory equipment for health care facilities at St. John's, Gander,

Grand Falls-Windsor, Corner Brook, St. Anthony, Happy Valley-Goose Bay and

Labrador City.

With this year's investment, our cumulative investment in new diagnostic,

medical and other equipment over these six years has now reached $178 million.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: We are also investing $3.9 million to provide new services,

including an eye care centre in Corner Brook, enhanced operating room capacity

in urology services, and operation of the new air ambulance for medevac

services.

Many Newfoundlanders and Labradorians will benefit from the Newfoundland and

Labrador Prescription Drug Program, which will add new medications to the

provincial formulary in 2009. For example, we will now provide drugs to treat

liver cancer, colorectal cancer, macular degeneration and HIV, and to prevent

blood clot formation following knee or hip surgery.

Many of our infrastructure investments this year will greatly improve the

quality of health care throughout our Province. These projects include:

Completion of the new long term care homes in Corner Brook and Happy

Valley-Goose Bay;

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Programming and site selection for a new hospital in Corner

Brook;

Planning for the redevelopment of St. John's hospitals;

Replacement of the Hoyles-Escasoni Complex;

A new parking garage at the Health Sciences Complex;

Establishment of an interdisciplinary research centre in human genetics;

The start of work on redevelopment of the emergency department at St. Clare's

Mercy Hospital;

The start of an expansion of the Dr. H. Bliss Murphy Cancer Centre; and,

Site selection for a new long-term care home in Carbonear.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Mr. Speaker, this is all in addition to ongoing repairs and

maintenance throughout the Province.

Restructuring Community Care

MR. KENNEDY: Mr. Speaker, to build on our strong foundation of solid

investments in health care, we will also invest $7.5 million this year to

restructure the home support financial assessment process. With this

restructuring, we will raise from $5,000 to $10,000 the liquid asset exemption

limit for couples who receive home support and also for those who receive

services within community residential programs, community or personal care

homes, or long-term care homes. This restructuring will also raise the personal

allowance available to clients in the long-term care and community support

systems. The restructuring means some who are currently required to contribute

relatively large amounts to receive subsidized care will need to contribute

less.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: In fact, Mr. Speaker, some will no longer have to contribute

anything at all.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: We will also provide, Mr. Speaker, $8 million to address

growth in the home support program, and $16.5 million to support an increase in

rates for home support workers.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: As a result of this investment, the home support hourly

subsidy rate will increase by $1.71 per hour by January 1, 2010.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Recognizing the important role of personal care homes in

providing residential care to seniors and others, we will increase the subsidy

amount available to individuals who qualify for assistance from $1,607 a month

to $1,644 a month, effective April 1, through an investment of $1.5 million.

SOME HON. MEMBERS: Hear, hear!

Improving Mental Health and Addiction Care

MR. KENNEDY: This year, Mr. Speaker, we are also investing an additional

$2 million to advance mental health initiatives across the Province, including

enhanced child and adolescent psychiatry services at the Janeway Children's

Hospital and Rehabilitation Centre. Assertive case treatment teams will become

fully operational in the Central and Western Regions to provide support for

those who suffer with chronic and persistent mental illness. We will proceed

with initial steps to establish a mobile mental health crisis team to support

Aboriginal communities in Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: We are also allocating, Mr. Speaker, $500,000 to plan for

the construction of a new residential treatment for children and youth with

complex mental health and/or behavioural issues.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: This is separate from the allocation I mentioned earlier to

plan for the construction of a new residential treatment centre in Grand

Falls-Windsor for children and youth with addictions. Once these residential

treatment centres are completed, it is our hope that fewer children will have to

travel outside the Province to receive the treatment they need.

Further to this, we are providing $775,800 to identify gaps in addictions

services and enable communities throughout the Province to play a role in

preventing addiction problems among our young people. By increasing public

awareness of addiction issues, we will help people recognize the warning signs

and learn where to turn for help.

Nurturing Children, Youth and Families

MR. KENNEDY: Mr. Speaker, strengthening and enhancing the profile of

services for children, youth and families is a priority for our government.

These services are currently within a Division of the Department of Health and

Community Services. This year, we will create a new department with

responsibility for child, youth and family services.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: To facilitate a smooth and effective transition, we are

providing an investment of $2 million to ensure the delivery of programs and

services is not disrupted. Through additional investments, we will create

twenty-three new positions with a broad skill mix, enabling us to establish

effective multidisciplinary teams to serve the complex needs of the department's

clients.

As recently announced we are providing $1.3 million this year to enhance the

foster care rate structure so foster parents have the supports that are

essential to delivering quality care to children.

SOME HON. MEMBERS: Hear, hear!

Reducing Poverty

MR. KENNEDY: Mr. Speaker, our government implemented a comprehensive and

long-term Poverty Reduction Strategy beginning in 2006 after extensive

consultation, with a goal of transforming Newfoundland and Labrador from the

Province with the highest rate of poverty to one with the least, over a ten-year

period. With annual budgeted investments exceeding $100 million

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: - already we have improved the circumstances of people in

this Province relative to those in other jurisdictions. Coming out of our

consultations this fall, our new initiatives focus on four main areas.

The first focus is to continue to enable self-reliance and remove the

financial barriers to working. Major strides have already been made by providing

benefits such as prescription drug coverage to individuals and families working

for lower wages and increasing the minimum wage incrementally from $6.00 an hour

in 2005 to $8.50 an hour today, with the rate set to rise to $10.00 an hour by

July of 2010. Today, we are ready to build upon these initiatives by reducing

taxes for low-income earners.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Effective for the 2009 taxation year, the Low-Income Tax

Reduction program will be enhanced by increasing the income threshold for

individuals and families. Approximately 47,000 individuals will benefit from

this change. Individuals with low income will save up to $544 through this

change, while families with low income will save upwards of $800 annually. This

enhancement will increase our annual investment in the low income tax reduction

from $6 million to $16 million.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: To further address the barriers to working, we will also

expand our very successful Employment Transitions program that helps single

parents on income support to join the labour force, and we will reduce the

rental rate for Newfoundland and Labrador Housing tenants with employment income

from 30 per cent of net income to 25 per cent.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: A second focus of poverty reduction this year is to promote

early childhood development. We will increase subsidy rates for children up to

twelve years of age in regulated child care spaces; we will strengthen existing

family resource programs and support the state of what did I say?

SOME HON. MEMBERS: Oh, oh!

MR. KENNEDY: We will strengthen existing family resource programs and

support the start-up of new programs in Conception Bay South, Lewisporte and

Happy Valley-Goose Bay.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: And we will fund early intervention services for pre-school

children who are at risk of, or already have, a developmental delay or

disability.

A third focus of poverty reduction this year is to promote more integrated

supports for those most vulnerable to poverty. For example, we will establish a

Supportive Living Community Partnership Program to help individuals with complex

needs overcome homelessness, and a Provincial Homelessness Fund to complement

the program's work. We will also take action to help victims of violence,

which measures I will describe in a couple of minutes.

A fourth focus of poverty reduction this year is to promote social

infrastructure projects with a record of success. For example, we will enable

the Community Youth Network to expand to the Baie Verte Peninsula, the Bay of

Islands and the Bay of Exploits areas while also increasing core funding for

existing sites. We will modernize existing social housing and establish, or

partner in the establishment of, new social housing units for low-income

families, seniors and smaller households. We will also increase the grants for

the eight successful community centres that provide a range of beneficial

programs for Newfoundland and Labrador Housing tenants.

SOME HON. MEMBERS: Hear, hear!

Reforming Our Justice System

MR. KENNEDY: Mr. Speaker, I was privileged to serve as the Province's

Justice Minister when our government commissioned the independent review of

adult corrections. The report, entitled "Decades of Darkness: Moving

Towards the Light", has been eye-opening for all of us, and we are prepared

to move forward to implement its recommendations. Having already invested more

than $30 million in corrections, including $1 million since the report was

released in December, we will move forward this year with an additional $6

million investment to continue the process of revitalizing and reforming the

system.

Mr. Speaker, this year, we will add fifteen correctional officer positions,

including a minimum of six female designate positions.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: We will hire a psychologist and an addictions coordinator to

work with inmates of Her Majesty's Penitentiary and the Newfoundland and

Labrador Correction Centre for Women, and hire a fetal alcohol spectrum disorder

project coordinator for the Labrador Correctional Centre.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: We are allocating $500,000 to facilitate ongoing training of

corrections staff and we will also hire an Aboriginal training officer.

And, we will engage community partners to offer programs that can benefit

both employees and inmates, implement a new mental health strategy, and develop

programs that address issues from addictions and life skills to health

relationships and violence prevention.

Complementing these investments in corrections are solid investments in the

other divisions of our justice system. We are completing the Corner Brook

Courthouse, pre-planning for new court facilities in St. John's, providing

support for the Human Rights Commission, purchasing equipment for the Inland

Fisheries Enforcement Program, providing additional funding to support the

operations of the RCMP, redeveloping the headquarters of the Royal Newfoundland

Constabulary in St. John's, and purchasing living quarters for the RNC in Lab

West.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Mr. Speaker, in 2007, the Progressive Conservative Blueprint

outlined that we are ready to do more for an inclusive society for women, and a

society where violence against women is not acceptable. Since that time we have

adopted a progressive approach to equality by investing in poverty reduction,

education, apprenticeships, Aboriginal women, women's centres, the Provincial

Advisory Council on the Status of Women, and our Violence Prevention Initiative.

In Budget 2009, we will be recognizing that new immigrant women also need

more solid support to integrate and address issues of violence. The

Multicultural Women's Organization of Newfoundland and Labrador will

therefore be receiving $100,000 in Budget 2009 to advance their work to ensure

that communities, businesses, and educational institutions support the

integration of multicultural women.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: In Budget 2009, we are also increasing the funding for the

Provincial Advisory Council on the Status of Women by $20,000

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: - to bring their annual grant to $441,000 and increasing the

annual grant to the eight women's centres located through the Province to

$110,250 each.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: This means we are providing for a total investment of

$882,000 annually to advance women's equality throughout every region of

Newfoundland and Labrador.

In 2006, Mr. Speaker, we introduced a six-year violence prevention plan of

action to reduce violence again women and other vulnerable populations in our

society, to which we have committed just over $11 million as a government to

advance. This commitment includes an annual grant of about $70,000 each or

$720,000 to support the good work of the ten regional violence prevention

coordinating committees operating throughout the Province.

In Budget 2009, we are recognizing that violence perpetrated on women has to

stop. Our investments to address this issue include: $304,000 to support a

specialized Family Violence Court in the Province; $94,000 is provided to

enhance employment readiness services; $60,000 is being provided to Rigolet to

help in their planning for a Safe House in that community.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: As a society, Mr. Speaker, we need to better understand that

male violence against women is unacceptable. One hundred thousand dollars is

therefore being provided to undertake a specific province-wide media campaign to

prevent male violence against women; and, Mr. Speaker, I am pleased to announce

that we are also providing $1.2 million for Iris Kirby to open and operate a new

transition house in Carbonear.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: In total, Mr. Speaker, we are therefore increasing our

investment by approximately $2 million dollars to enhance violence prevention

services for women and to support our women's community in advancing women's

equality throughout this Province.

SOME HON. MEMBERS: Hear, hear!

Educating Our Students

MR. KENNEDY: Mr. Speaker, Budget 2009 increases our education funding by

$130.9 million to an unprecedented total of $1.29 billion.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: This level of investment will ensure that our students will

be fully prepared to make the most of the new era of self-reliance that is

dawning in Newfoundland and Labrador.

Budget 2009 includes action to secure our position as having the best student

aid package in the country - a suite of initiatives that we developed in

collaboration with post-secondary students and graduates.

We are ready to move forward this year, Mr. Speaker, with an additional

investment of $5 million to eliminate the interest on Newfoundland and Labrador

Student Loans.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: The move will benefit, Mr. Speaker, about 49,000 people. In

addition, we will raise the up-front, needs-based grants we introduced two years

ago from $70 to $80 per week, reducing the amount students need to borrow. About

8,400 students are expected to receive these grants. We are also reducing the

required amount of spousal contributions to give married students greater access

to assistance. With these initiatives, we have made one of the best student aid

packages in the country even better.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: To build on our strong foundation in our post-secondary

sector, we will increase operational funding for the College of the North

Atlantic by $8.3 million and to Memorial University by over $21 million. We will

also continue with our commitment to invest over $1 million to expand the

Faculties of Business and Engineering and develop two programs at Memorial's

Marine Institute. This funding will also support graduate student fellowships

and enable our public post-secondary institutions to maintain the freeze on

tuition fees, which have remained among the lowest in the country throughout our

mandate.

Public post-secondary institutions will also benefit this year from the

Provincial Government's $800 million infrastructure package. Budget 2009

allocates $34 million in the post-secondary sector for such projects as: a

backflow prevention system to improve water supply and the renovation of

facilities at Memorial University's St. John's campus; and a new academic

building at Sir Wilfred Grenfell College in Corner Brook.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: In addition, the Provincial Government has allocated $15

million with the expectation of leveraging funding for post-secondary

infrastructure from other levels of government.

We are also increasing funds for the operation of our school boards by $8.8

million. We will continue to implement the ISSP/Pathways report, the Healthy

Students, Healthy Schools initiative, and extend high school skilled trades

programs to additional schools.

Budget 2009 investments in the K-12 system focus on improving school

infrastructure. The allocation for repairs and maintenance to existing schools

will increase to $40 million, almost doubling last year's allocation. This is

part of our overall investment of $121.5 million in Budget 2009 for school

infrastructure.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: As recently announced, specific projects to receive funding

are: replacement of Davis Elementary and St. Teresa's Elementary; extension of

the cafeteria and new classrooms at Beachy Cove Elementary; new classrooms at

Roncalli Elementary (St. John's), St. Bernard's Primary, St. Peter's

Junior High, and Upper Gullies Elementary; new classrooms and a challenging

needs suite at St. Edward's School, Kelligrews; and an extension to

accommodate new classrooms and replacement of the gymnasium at Virginia Park

Elementary.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: In keeping with the Provincial Government's commitment to

greater autonomy for Sir Wilfred Grenfell College, $2.5 million is being

allocated this year to assist the college with that transition.

SOME HON. MEMBERS: Hear, hear!

Retaining and Attracting Youth

MR. KENNEDY: Mr. Speaker, later this spring, we will be releasing our

Youth Retention and Attraction Strategy to build on our already strong

foundation by helping to position Newfoundland and Labrador as the place of

choice for young people to live and work. This strategy will reflect the ideas

and aspirations of the young people we engaged, and we are confident it will

help us form a strong bond with the young workers, community leaders and

families we need to build our future. With a total investment of $3.9 million

this year, we are making youth retention and attraction a priority.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: We have already opened six new Career Work Centres to

broaden access to employment, training and transition supports, and we will open

another six this year. This spring, we will launch an online international

registry to match workers with employers, and engage small and medium-sized

employers to develop an HR toolkit for recruitment and retention.

Ensuring Competitive Taxation

Mr. Speaker, as a result of measures introduced in last year's Budget, we

maintain the lowest personal income tax rates in Atlantic Canada.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Our government will continue in Budget 2009 to build on

historic tax cuts by supporting low-income earners and continue to make

Newfoundland and Labrador's tax regime competitive for small business to

prosper.

We will invest $11.5 million this year to introduce new tax reductions which

puts more money back in people's pockets and helps support the provincial

economy. These measures bring the cumulative tax relief implemented over three

years, beginning in 2007, to approximately $776 million.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Mr. Speaker, small business is the economic engine that

leads to job creation. In order to improve the competitiveness and viability of

small business, government will increase the small business threshold under the

Corporate Income Tax from $400,000 to $500,000. Approximately 4,400 companies

will benefit from this measure.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: The Dividend Tax Credit rate on eligible dividends will be

increased from 6.65 per cent to 9.75 per cent in order to bring the tax

treatment of these dividends more inline with other provinces. This will result

in a tax savings of $1.3 million.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: A key challenge to new and emerging innovative businesses is

obtaining access to capital. In 2004, our government implemented the

Labour-Sponsored Venture Capital Tax Credit Program, and subsequently registered

GrowthWorks Atlantic as a venture capital corporation. Under this program, the

purchasers of new shares in GrowthWorks up to $5,000 annually were eligible for

a 15 per cent provincial tax credit and a matching 15 per cent federal tax

credit. These shares are also RRSP eligible. Effective for the 2009 tax year,

the provincial tax credit will be increased to 20 per cent. In addition, the

eligible investment will be increased to $10,000.

Consistent with its commitment to take maximum advantage of all opportunities

to develop the Province's energy sector, including onshore exploration,

effective April 1, 2009, our government will provide a tax exemption for

gasoline consumed by off-road equipment used in onshore oil exploration.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: This measure complements the current tax exemption for

gasoline used on an exploration site in equipment used for the exploration of

minerals.

Budget 2009 provides for changes to commercial electrical permit fees.

Effective April 1, 2009, commercial electrical permit fees will be reduced for

projects valued less than $2,000. For work valued at up to $500, the fee will be

reduced from $200 to $50; and, for work valued from $500 to $2,000, the fee will

be reduced from $200 to 10 per cent of the value of the work. There is no change

to the fee for projects valued over $2,000.

Promoting Research and Development

Mr. Speaker, governments and firms around the world are investing in research

and development to foster innovation, enhance international competitiveness and

contribute to long-term economic growth. This year, to build on our strong

foundation, we are allocating more than $25 million to the Newfoundland and

Labrador Research and Development Council to operate and support academic and

industrial R&D in all regions of the Province.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: More news on this, Mr. Speaker, will follow later in the

year.

A key growth area identified in the 2006 Innovation Strategy is the ocean

technology sector. This year, we are investing $3.5 million to enable this

sector to leverage new business and technology development opportunities in

international markets.

To complement these initiatives, we are allocating $1.4 million this year to

support the purchase of a multi-beam sonar mapping and ancillary equipment for

the Marine Institute's flagship research vessel, Anne Pierce . With

Canada's only post-secondary program for remotely-operated vehicle training

and the most complex and advanced Centre for Marine Simulation anywhere in North

America, Memorial's Marine Institute will now also be able to boast of being

the only institute in Canada with this leading-edge technology.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: An additional $575,000 will be used to develop a four-year

applied ocean mapping program at the Institute's School of Ocean Technology,

$100,000 to enhance fisheries research, and a further $315,000 will enable the

Institute's Holyrood Marine Base to help establish a facility for related

research at sea.

Innovation promises opportunity in other sectors as well.

We will invest $1.5 million for the expansion of the Core Storage and

Research Centre for the offshore oil and gas sector.

We will also invest $1 million in R&D initiatives in the agrifoods sector

to focus on new or improved crops, livestock and best-management practices.

We will invest $300,000 to support the development and implementation of a

forest science and innovation program to open up new opportunities for the years

ahead.

Other leading-edge investments include $3.2 million in funding under the

Commercialization Program, nearly $2 million under the Innovation Enhancement

Program and $2.4 million for research projects involving the Province's

wildlife.

We are determined to maintain our edge and position this Province for

unprecedented opportunities for growth through innovation.

Advancing Business Growth

Mr. Speaker, year by year, we are solidifying our reputation as a world-class

economy that is responsive to the needs of investors, capable of negotiating

from a position of strength, and ready to partner for success. Newfoundland and

Labrador's increasingly progressive and energetic business community this year

is receiving an infusion of more than $175 million, bringing stimulus investment

this year to more than $900 million.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: To build on our strong foundation, Mr. Speaker, we will

invest more than $87 million this year in business development programs that

encourage long-term private sector growth, employment creation and economic

diversification in all regions. These investments include: $59 million in tax

credits and incentives; $12.9 million in Small and Medium-sized Enterprise

funding; $12.3 million in Regional-Sectoral Diversification Funding; $1 million

for Business and Market Development opportunity; $500,000 each for the Ireland

Business Partnerships and the Export Development Strategy; and, $1.5 million

through the Oil and Gas Manufacturing and Services Export Development Fund.

To enable the Department of Business to compete for business investment from

abroad, we are increasing the grants component of the Business Attraction Fund

by a third for a total of $4 million bringing the total investment including the

capital component to $29 million.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: We are also allocating $2 million as a first step in

expanding capacity and opportunity in our Province's aerospace and defence

sector, where the successes to date have been impressive.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Energy is a very bright light in the Province's economy

not the only bright light, but one that is eclipsed by no other sector. Our

new energy powerhouse, Nalcor Energy, is positioned to lead on behalf of the

Province in the development of the Lower Churchill and to stand strong as an

equity partner in both the Hebron Project and the White Rose Expansion. To

enable Nalcor Energy to discharge its obligations to the Province with maximum

effectiveness, we are investing $228 million this year to enable it to take full

advantage of the opportunities before us.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: We will also invest $7.76 million this year under the

Province's comprehensive Energy Plan to further initiatives in the areas of

petroleum resource marketing, geoscience data acquisition, data management,

energy efficiency and conservation, and energy innovation.

Mr. Speaker, our fishing and aquaculture industries continue to thrive, with

total production last year again exceeding a billion dollars. Under the ongoing

Fishing Industry Renewal Strategy, we are allocating close to $3.5 million this

year for several initiatives including:

Establishment of a Fishing Industry Safety Council;

Funding to continue the Fisheries Technology and New Opportunities Program

that works to enhance the viability of all segments of the industry; and,

A range of workforce adjustment initiatives.

We are again increasing this year's cod recovery initiative budget to

$450,000 to fund several projects and ongoing research that should result in a

better understanding and management of cod stocks inhabiting the waters around

Newfoundland and Labrador.

Our aquaculture industry in several of our rural regions is a wonderful

demonstration of the power of innovation. We will provide $3.4 million to

support the construction of an aquatic veterinary diagnostic facility in St.

Alban's, as I mentioned earlier -

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: - plus $1 million for further infrastructure projects on the

south coast, over $700,000 to construct waste water treatment facilities at

those seafood processing facilities that are near aquaculture operations, and

$2.45 million for the Aquaculture Capital Investment Program.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Mr. Speaker, investors in the mining industry understand the

connections between the industry's status and the state of world markets and

manufacturing and construction activity worldwide. Although the sector faces

some downtime this year, the prospects for mining in this Province's are

tremendous. We are investing an additional $620,000 this year for exploration

attraction and mineral promotion. We will make a record investment of $3 million

in the provincial Mineral Incentive Program - an increase of $500,000 over last

year - to give junior exploration companies a welcomed boost of capital.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Opportunities in the forest industry also remain strong

despite major setbacks in Stephenville and Central. We believe it is important

to continue to invest in opportunities to diversify the forestry sector, so in

addition to an existing $8.5 million that will be carried forward from 2008, we

will make a further $6 million available through the Forestry Industry

Diversification Fund to assist the industry in identifying new products and

markets.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: This fund will finance improvements in the efficiency of

sawmills and an integrated marking strategy to support diversification and

export development so we can take full advantage of opportunities in the solid

wood products industry.

Mr. Speaker, in recent years, we have developed a new appreciation of the

value of natural and heritage resources that at one time may have been taken for

granted - resources such as scenic beauty, historic richness and cultural

uniqueness. Today, we realize these resources are pure gold and in high demand

around the world. To advance opportunities related to culture and heritage, we

will commit $940,000 in new funding to advance the goals of our strategic

cultural plan, a plan in which we have invested in excess of $25 million over

four years.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Since 2004, our government has been steadily increasing the

provincial tourism marketing budget with powerful results, and we will do it

again this year by adding an additional $1 million to bring the budget to $13

million.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Tourism is one of our Province's most important generators

of new, export-based wealth, jobs, investment and business development,

contributing some $790 million a year to our Province's economy.

We recently collaborated with Hospitality Newfoundland and Labrador to unveil

our Tourism Vision 2020 , which will guide our investments in the years to

come.

We are providing $150,000 this year to extend the tourism season in two of

the Province's regions, the Discovery Trail and the Viking Trail/West Coast.

We will also provide an initial investment of $479,000 to support the

introduction of the Tourist-Oriented Directional Signage (TODS) model, a highway

signage system that is new to Newfoundland and Labrador but proven in

high-tourism jurisdictions elsewhere.

Several special events this year and in the years just ahead will provide

wonderful opportunities to express our pride and showcase our rich culture and

history. This year in Brigus and other communities, we celebrate the centennial

of Captain Bob Bartlett's decisive voyage toward the North Pole and the other

exploits that made him one of the world's most celebrated mariners. Next year

at Cupids, we celebrate the 400th anniversary of the establishment of the colony

of Cupers Cove by John Guy in 1610. In 2010, we will again host the Juno Awards,

and next February we will have a strong presence at the 2010 Olympic and

Paralympic Winter Games in Vancouver.

An event next year that has great significance in terms of sport, culture and

tourism is the Labrador Winter Games in Happy Valley-Goose Bay.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: We are committing $465,000 this year, for a total of

$500,000, to ensure these Games continue to be a first-class celebration of

physical activity, sport participation and the unique Labrador culture.

AN HON. MEMBER: (Inaudible).

MR. KENNEDY: Thanks, John.

We like to wear our commitment to recreation and sport on our sleeves and

I was proud to wear the red and white on my sleeves last July when Danny Cleary

brought the Stanley Cup back home to Harbour Grace. The phenomenal hockey talent

this Province produces is just the tip of the iceberg. We opened the new

state-of-the-art Newfoundland and Labrador Sport Centre during the past year to

help some of our most advanced athletes set their sights on the highest of

prizes.

Mr. Speaker, this year, we are committing $7.5 million for recreational

infrastructure to leverage federal dollars and advance sports opportunities for

many in this Province. We will also continue to advance the goals of our

Recreation and Sport Strategy through an increased investment this year of

$875,000 to finance such initiatives as increased operational support for

provincial sport organizations and federations, additional community

recreational programming, support to improve coaching capacity, support for the

regional recreation directors program and support for event hosting. It will

promote KidSport, which helps disadvantaged youth pay for involvement in sports

programming initiatives; it will promote physical activity among

under-represented groups; and it will promote community recreation and sport

programming opportunities for seniors under the Healthy Aging Strategy.

Sustaining our Environment

Mr. Speaker, Newfoundland and Labrador is prized by tourists and locals alike

for its pristine environment. This year, we are dedicating $10.4 million for the

assessment of former mine sites at Buchans and Whalesback, and the remediation

of government-owned contaminated sites at Hopedale, Northwest Point, New Harbour

Barrens, Baie Verte and Rambler Mines.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: To battle the impacts of climate change, we are dedicating

$1.3 million this year to help communities assess and adapt to climate change

effects.

We believe the Lower Churchill Project would make a significant contribution

in reducing national greenhouse gas emissions. The Joint Review Panel is

currently conducting an environmental assessment of the project, and we are

providing $750,000 to enable the review to proceed.

We are investing a total of $9.5 million this year to advance the Provincial

Waste Management Strategy. We aim to extend modern waste management systems

Province-wide by 2020 and, progressively over time, reduce by 50 per cent the

amount of waste going into landfills.

This year, we will also invest $7 million to advance the Drinking Water

Safety Initiative, including $6 million for infrastructure to provide clean,

safe drinking water to many more of the Province's residents, especially

residents of small rural communities.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Also, Mr. Speaker, with a total investment this year of $5.8

million, we will advance a number of initiatives to make homes and buildings in

the Province more energy efficient. We will continue to provide assistance to

homeowners for cost-saving energy audits and retrofits, and we will continue to

invest in the Residential Energy Efficiency Program.

As we continue to grow, we are determined to live in harmony with our

environment so we leave our grandchildren a Province that is not only prosperous

and self-reliant but also healthy, sustainable and green.

Now, Mr. Speaker, you will be pleased to note, the last heading says

Conclusion.

CONCLUSION

In closing, Mr. Speaker, I note that next month, our government will mark

2,000 days in office. We will do so confident in the knowledge that the result

of the work our government has done in its first 2,000 days is a Newfoundland

and Labrador that is stronger, more confident, more hopeful and proud, and

better positioned for self-reliance than it has ever been before.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: On this solid rock, Mr. Speaker, on which everything we do

is firmly grounded, we stand strong. We will continue to invest in

infrastructure, continue to create employment, continue to lower taxes, continue

to hold a short leash on debt, and continue to spend every dollar wisely,

because it is wisdom like this that has gotten us this far. We will continue to

prepare our people to harness their full potential and make full use of our

resources to bring growth and stability to every region. And we will continue to

reinvest the dividends of success in our vast safety net of social programs and

infrastructure on which all of us will one day depend.

By continuing to work together, united in partnership with the people of this

Province, as masters of our own destiny, proud Newfoundlanders and Labradorians

one and all, we will continue to build upon this solid foundation a future of

prosperity and self-reliance that our parents could only dream of, the future of

plenty that our children deserve.

Our investments in Budget 2009 reflect our government's rock solid

commitment to the vital programs and services on which the people of our

Province depend. It is more important than ever that we maintain a steady course

for prosperity and self-reliance, especially during challenging financial times,

for it is when the storms are at their worst that our resilience serves us best.

So with unwavering resolve and the confidence of champions, we will build on our

strong foundation and our success in recent years as we look forward with

optimism to a brighter, more prosperous future of opportunity and self-reliance.

Thank you.

SOME HON. MEMBERS: Hear, hear!

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

Board.

MR. KENNEDY: Mr. Speaker, I move, seconded by the Premier, that the

debate be adjourned.

MR. SPEAKER: The motion put forward by the hon. the Minister of Finance

and President of Treasury Board is that the Budget Debate be now adjourned.

All those in favour, 'aye'.

SOME HON. MEMBERS: Aye

MR. SPEAKER: All those against, 'nay'.

The motion is carried.

On motion, Budget Debate adjourned.

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

Board.

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

a message from His Honour the Lieutenant Governor.

MR. SPEAKER: All rise.

The message is addressed to the hon. the Minister of Finance and it reads,

dated 26 of March, 2009:

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

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

the year ending 31 March 2010, in the aggregate of $6,459,399,900 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.:________________________

John C. Crosbie, PC, OC, ONL, QC

Lieutenant Governor

Please be seated.

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

MR. KENNEDY: Thank you, Mr. Speaker.

I move, seconded by the Minister of Health and Community Services, that the

message together with the Estimates be referred to a Committee of Supply.

MR. SPEAKER: The motion is that the message from His Honour the

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

of Supply and that I do now leave the Chair.

All those in favour, 'aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, 'nay'.

The motion is carried.

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

Supply, Mr. Speaker left the Chair.

Committee of the Whole

CHAIR (Osborne): Order, please!

We shall now take a few moments to distribute the Budget documents to all

hon. members.

[Distribution of Budgetary Documents]

CHAIR: Order, please!

The hon. the Government House Leader.

MS BURKE: Mr. Chair, I move that the Committee rise, report progress and

ask leave to sit again.

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

leave to sit again.

All those in favour, 'aye'.

SOME HON. MEMBERS: Aye.

CHAIR: All those against, 'nay'.

Carried.

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

again, Mr. Speaker returned to the Chair.

MR. SPEAKER (Fitzgerald): Order, please!

The hon. the Deputy Speaker.

MR. T. OSBORNE: Mr. Speaker, the Committee of Supply have requested that

I report progress and ask leave to sit again.

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

Committee have considered the matters to them referred and have directed him to

report that they have made progress and ask leave to sit again.

When shall the report be received?

MS BURKE: Now, Mr. Speaker.

MR. SPEAKER: Now.

On motion, report received and adopted.

MR. SPEAKER: When shall the Committee have leave to sit again?

MS BURKE: Tomorrow, Mr. Speaker.

MR. SPEAKER: Tomorrow.

On motion, Committee ordered to sit again on tomorrow.

MR. SPEAKER: Notices of Motion.

Notices of Motion

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

Board.

MR. KENNEDY: Thank you, Mr. Speaker.

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

An Act To

Amend The Labour-Sponsored Venture Capital Tax Credit Act. (Bill 3)

MR. SPEAKER: Further notices of motion?

The hon. the Government House Leader.

MS BURKE: Mr. Speaker, I move, seconded by the hon. Minister of Natural

Resources, that the remaining Orders of the Day do stand deferred and that this

House on its rising do adjourn.

MR. SPEAKER: The motion is properly moved and seconded that this House do

now adjourn.

All those in favour, 'aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, 'nay'.

This House now stands adjourned until 1:30 of the clock tomorrow being

Monday.

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

p.m.