Newfoundland and Labrador Hansard — Members' Statements — 21 May 2009 (46th General Assembly, 2nd Session, Vol. XLVI No. 24)
2009-05-21
Newfoundland and Labrador — Debates (Hansard)
May
21, 2009
HOUSE OF ASSEMBLY PROCEEDINGS
Vol. XLVI No. 24
The House met at 1:30 p.m.
MR. SPEAKER (Fitzgerald): Order, please!
Admit strangers.
MR. T. MARSHALL: A point of order, Mr. Speaker.
MR. SPEAKER: The hon. the Minister of Justice and the Attorney General,
on a point of order.
MR. T. MARSHALL: Thank you, Mr. Speaker.
Mr. Speaker, yesterday in this House, in responding to a question from the
Government House Leader, I gave some information which I found out this morning
was incorrect and I would like to correct that.
I indicated yesterday that there were twenty-two single bed cells at the
women's correctional facility in Clarenville for a capacity of twenty-two. The
reality is, is that there are ten double bed cells with a capacity of twenty.
I also indicated that I was unaware of any triple bunking at Clarenville, and
being under the impression that there were twenty-two single cells with one bed
each, in order to have triple bunking you would have to have over forty-four
people there. In view of the corrected information, I am advised that there has
been triple bunking since April.
So I just wanted to make sure that the correct information was given to the
House.
MR. SPEAKER: No point of order, a point of information. I thank the hon.
Minister of Justice and the Attorney General.
Today the House of Assembly would like to welcome a group of forty students
from Grades 9 to 12 who are visiting from Appalachia High School in St. George's,
in the District of St. George's-Stephenville East; and Piccadilly Central High
of Piccadilly in the District of Port au Port. These students are accompanied by
their teacher Ms Lib Green.
Welcome to the House of Assembly.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: Also visiting today are thirteen students, from Grades K to
12, from All Saints All Grade School of Burgeo, in the District of Burgeo &
LaPoile.
AN HON. MEMBER: Grey River.
MR. SPEAKER: District of Grey River, a misprint. From the community of
Grey River, my humble apologies.
The students are accompanied by their teachers Mr. Wilson Warren, Ms Tracey
Bragg; and their chaperons, Ms Cavalle Young, Ms Patsy Young, Ms Wanda Warr, Ms
Cathy Barter, Ms Geraldine Warr and Ms Sandra Lawrence, as well as their bus
driver, Mr. John Power.
Welcome to the House of Assembly.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: Today the House of Assembly would also like to welcome in
the Speaker's gallery, the Minister of Environment and Conservation, with her
new daughter Jorja.
Welcome to the House of Assembly.
SOME HON. MEMBERS: Hear, hear!
Statements by Members
MR. SPEAKER: The following members' statements will be heard: the hon.
the Member for the District of Lake Melville, the hon. the Member for the
District of Signal Hill-Quidi Vidi, the hon. the Member for the District of
Placentia & St. Mary's, the hon. the Member for the District of
Cartwright-L'Anse au Clair, the hon. the Member for the District of Baie
Verte-Springdale, the hon. the Member for the District of Humber Valley.
Does the hon. Member for the District of Lake Melville have leave?
AN HON. MEMBER: Yes.
MR. SPEAKER: The hon. the Member for the District of Lake Melville, by
leave.
SOME HON. MEMBERS: Hear, hear!
MR. HICKEY: Thank you, Mr. Speaker.
Mr. Speaker, I rise in this hon. House to pay tribute to Henry Shouse, a
great man of Labrador, who passed away this week at the Labrador Health Centre
in Happy Valley-Goose Bay. Mr. Shouse left a legacy that few can match. Hank, as
most people knew, changed the face of Labrador, and in doing so, made history.
Mr. Speaker, Mr. Shouse spent most of his life in Labrador, first coming to
work at the American Air Base and then living in North West River. It is
interesting to point out that for many years the only way to visit the community
was by crossing the river in boat. Mr. Shouse was instrumental in having a
cable-car placed in North West River, providing a safe, year-round
river-crossing mechanism.
Mr. Shouse will be remembered as a lover of community, and as a visionary. He
played a pivotal role in the formation of the Trans-Labrador Highway. He fought
for it passionately when many said it could never happen. He saw what others
could not see at the time: that the highway would bring a true sense of
connectivity and a better quality of life for all Labradorians. Some of us
referred to Mr. Shouse affectionately as the "Godfather of the
Trans-Labrador Highway."
Mr. Speaker, Mr. Shouse had a deep and profound connection to Labrador that
was showcased through the tapestry of his exceptional life. He held positions of
councillor in both Happy Valley-Goose Bay and North West River. As well, he
served both as Deputy Mayor and Mayor of Happy Valley-Goose Bay.
His achievements are numerous and vast. Mr. Shouse was the driving force
behind the now classic Labrador Canoe Regatta. He was a tireless advocate for
equity in postal rates in Northern Labrador. He donated the first computer to a
local school in Happy Valley-Goose Bay. He regularly provided school bands with
donations of equipment. He owned a school bus service where, on top of his
regular bus driver duties, he would bring children from North West River to play
hockey in Happy Valley-Goose Bay and treat them at local restaurants.
Mr. Speaker, this is a sad day for all of us who knew Hank and his family.
Yet, we will remember Hank for all his great deeds and accomplishments. Every
time we travel on the Trans-Labrador Highway, whenever we visit the historic
community of North West River, or when we participate in the Labrador Canoe
Regatta, we will remember his life and his legacy. Mr. Shouse will always be
remembered as a true son of Labrador.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Signal Hill-Quidi
Vidi.
MS MICHAEL: Thank you very much, Mr. Speaker.
Mr. Speaker, it gives me great pleasure to stand in the House today and
recognize the Quidi Vidi Village Foundation's tenth anniversary.
The Quidi Vidi Village Foundation was founded in 1999 as a citizen's
movement to preserve the unique cultural and historical roots of the Quidi Vidi
area. During those ten years the Foundation has worked tirelessly to promote the
community and has been one of the most active and outgoing community groups in
the Province.
Mr. Speaker, since 1675 the Quidi Vidi gut has been an outport within the
city, and has remained as an important centre of fishing on the Avalon. In 1999,
in response to the perceived over-development of the area, concerned citizens
formed the Quidi Vidi Village Foundation to voice their concerns and to have
their voice heard within decision-making.
Since then, Mr. Speaker, it has been very active, hosting various events for
children and adults alike such as the annual Quidi Vidi Garden Party, Christmas
Breakfast with Santa, and dozens of other events and programs that help preserve
the closeness of this community. Not included in my notes, if anybody notices
the small park for children, the little playground up on top of the hill from
the gut, that is there because of the Foundation.
Judy Ryerson , present chair, and Barbara Mallard, the first chair of the
organization, are here today.
Mr. Speaker, I ask all members of this hon. House to join me in
congratulating the Quidi Vidi Village Foundation and their founding members on
their tenth anniversary, and their continuing devotion to this beautiful, unique
and historic community.
Thank you very much, Mr. Speaker.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Placentia & St.
Mary's.
MR. COLLINS: Thank you, Mr. Speaker.
Mr. Speaker, I rise today in this hon. House to pay tribute to two volunteers
in the Town of Placentia. The names of Genevieve Follett and Frances Pearson
were recently announced by Governor General Michalle Jean as recipients of the
Caring Canadian Award. Only two other recipients received this award from our
Province. This award, which was created in 1996, honours people and groups who
provide extraordinary help or care to people in the community.
Jenny and Frances have dedicated countless hours to seniors in Placentia,
especially the residents at Lions Manor and the Placentia Health Care Centre.
They both volunteer daily at the centre and have done so for fifteen and twenty
years respectively. The assist in all aspects of the seniors' lives: from
recreation activities to comforting the ill and the dying. They are responsible
for bringing smiles to the faces of seniors, which, Mr. Speaker, is the only
reward they seek.
Mr. Speaker, Jenny and Frances represent the thousands of Newfoundlanders and
Labradorians who give so generously of themselves and their time to others.
I ask all hon. members of this House to join with me in congratulating Jenny
and Frances on this prestigious recognition and thank them and their colleagues
whose volunteer work make such a difference in the lives of so many.
Thank you, Mr. Speaker.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Cartwright-L'Anse
au Clair.
MS JONES: Thank you, Mr. Speaker.
I rise in the House today to congratulate several youth from Mountain Field
Academy in the District of Cartwright-L'Anse au Clair who were recently
awarded prized in the Protected Areas Association's Wild Art Competition.
Mr. Speaker, the Protected Areas Association of Newfoundland and Labrador
held its twelfth annual Province-wide competition and announced its winners on
April 22, which coincided with Earth Day. The selections were made from 489
entries from seventeen schools throughout the Province and were judged by a
distinguished Newfoundland and Labrador artist and Protected Areas Association
patron Christopher Pratt. I would like to congratulate Taylor Rae Groves who won
first place in Primary division, Matthew Buckle who won first place in
Elementary division, and I am also proud to congratulate and recognize Michael
Thomas, a Grade 5 student, and Christy Groves, a Grade 12 student, who both
received honourable mentions.
Mr. Speaker, these recognitions speak volumes about the talent and the
quality of the arts program at Mountain Field Academy and I ask all members of
the House to join with me in congratulating these four students on their
accomplishments and all participants from across the Province on their efforts
and the awareness that they have created around protecting our wilderness.
MR. SPEAKER: The hon. the Member for the District of Baie
Verte-Springdale.
SOME HON. MEMBERS: Hear, hear!
MR. POLLARD: Thank you, Mr. Speaker.
I rise in this hon. House today to recognize and congratulate Kyle Hennebury,
son of Edward and Wilma Hennebury of Baie Verte. Kyle captured the gold medal in
the Industrial Millwright Mechanic Post-Secondary category at the twelfth Annual
Provincial Skilled Trade and Technology competitions held on April 3.
Kyle is a student in the multi-skills industrial trades program at the Baie
Verte campus of the College of the North Atlantic. He will now represent
Newfoundland and Labrador at the National Skills Canada competition held in
P.E.I. on May 20-24. In fact, he is speaking right now oh, I am sorry; he is
competing right now as I speak.
The graduate of Baie Verte High School was judged on four different
components: interpret, draw and assemble a hydraulic circuit; perform a rim and
face shaft alignment; interpret, assemble and align power transmission
components; and interpret and install spherical roller bearings.
Mr. Speaker, I ask all colleagues to join me in congratulating Kyle, his
instructors, and the Baie Verte College of the North Atlantic, for this
outstanding achievement and wish him success at the national competition.
Thank you, Mr. Speaker.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Humber Valley.
SOME HON. MEMBERS: Hear, hear!
MR. KELLY: Thank you, Mr. Speaker.
I rise in this hon. House today to recognize recent accomplishments by
students at Lewisporte Collegiate and Elwood Regional High School. These
students have been participating in a provincial trivia game that was developed
by the Workplace Health, Safety and Compensation Commission, in partnership with
the Department of Education and Futures in Newfoundland and Labrador's Youth.
This game was designed to educate high school students about the importance
of workplace health and safety. Four school districts, involving eight schools,
have been competing for over $20,000 in scholarships and prizes throughout this
academic year.
The final competition was between Elwood Regional High, of which I am the
former principal, and Lewisporte Collegiate, in which the MHA for Lewisporte is
the former principal. Lewisporte Collegiate students won the competition on May
8, 2009. For winning, they received a cash prize of $10,000; $5,000 went to the
school and each of the five participants earned $1,000. The Elwood team placed
second and received $5,000 in prize money, with $2,500 going to the school and
$500 going to each of the five participants.
Mr. Speaker, I am happy to report that the two MHAs were present for the
final competition and retained their professional demeanour. The security was on
heightened alert but thankfully their services were not needed. Congratulations
to both schools, including students, teachers and program sponsors that have
been involved in bringing attention, in a positive manner, to the importance of
workplace, health and safety.
Mr. Speaker, this was indeed an excellent learning experience for all
involved and hopefully resources can be found so this exceptional program can
continue. Two proud MHAs in this hon. House would certainly enjoy the
opportunity of a rematch.
I ask all members of this hon. House to join me in congratulating Lewisporte
Collegiate and Elwood Regional High on their recent achievements.
Thank you, Mr. Speaker.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The Chair would like to welcome the Chair and the past-Chair
of the Quidi Vidi Village Foundation, Ms Judy Ryerson and Ms Barbara Mallard.
Welcome to the House of Assembly.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: Statements by ministers.
Statements by Ministers
MR. SPEAKER: The hon. the Minister of Tourism, Culture and Recreation.
SOME HON. MEMBERS: Hear, hear!
MR. JACKMAN: Thank you, Mr. Speaker.
I rise today to inform the House of a significant investment that we are
making in our T'Railway Provincial Park system, Mr. Speaker, which was led by
Minister Johnson through the Budget process and we are very pleased with it..
In February of last year, Mr. Speaker, we became aware of structures spanning
both navigable and non-navigable waters which required attention to address
public safety issues. At the time, officials from the Department of Environment
and Conservation, along with bridge engineers from the Department of
Transportation and Works, conducted an assessment of the structures along the T'Railway
and developed a plan to address the concerns that were raised. I am delighted,
Mr. Speaker, that we will spend $2 million this year to remove and replace the
bridges that are an important part of this valuable trail system.
We are working in partnership with the T'Railway council, and tenders are
now in development for the removal of bridge structures at Bear Cove Brook,
Codroy North Branch, Morris Brook, Middle Brook, Robinson's River East, and
Robinson's River West. The tender has already closed for the removal of the
Crabbes River Bridge. Mr. Speaker, the T'Railway council has purchased five
new bridges and they will be installed at Middle Brook, Morris Brook, Codroy
North Branch, Robinson's River East and Robinson's River West.
Mr. Speaker, our government recognizes the significance and the integrity of
the T'Railway system and of the absolute importance of ensuring public safety.
We are committed to a provincial park system that provides a high-quality and a
safe outdoor experience for residents and non-residents, and we recognize the
integral role that the T'Railway plays in this system. We will continue to
monitor the long-term operational requirements and viability of the entire T'Railway
Provincial Park, and implement appropriate measures to ensure its
sustainability.
Government is committed, Mr. Speaker, to protecting our natural environment.
In fact, it is a priority for this government. We understand that a strong
provincial park system is key to helping us achieve our environmental protection
goals, while also contributing to the development of our Province's ecotourism
industry. We recognize the balance we need to strike as we develop means to
support the economic and social needs of residents and visitors in terms of our
natural areas, while also protecting ecosystems and significant features in our
parks.
Thank you, Mr. Speaker.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Port de Grave.
MR. BUTLER: Thank you, Mr. Speaker.
I want to thank the minister for the advanced copy of the statement and to
say that we believe improving the T'Rails is a good initiative.
We know that public safety should be first and foremost and we know that many
tourists, many outsiders travel to our Province to use those rail beds, but, Mr.
Speaker, I cannot let this opportunity pass without saying that individuals in
our Province are still being charged fees for using the T'Rails with regards
to what was familiarly known as stickers but now we have it changed to markers,
and this was a promise government made back in 2004.
We know citizens tried to take this to court, I guess, and sue government
saying that this was an illegal tax, but the lawyers in the Province for the
government soon shut that down when they said that they demanded a down payment
of $30,000 just in case they lost in court. Meanwhile, the citizens are still
being charged for those markers. Since then, T'Rails has been extended well
beyond the old railway bed in traditional roads. As the minister stated, we do
have to strike a balance. We have to come up with economic and social reasons
for our citizens, but we also have to protect the ecosystem.
Mr. Speaker, I think that is all the more reason why we should soon hear some
word on the Outdoor Bill of Rights which was promised by this party back many
years ago, and this government now says they will not come forward with it.
Thank you, Mr. Speaker.
MR. SPEAKER: The hon. the Member for the District of Signal Hill-Quidi
Vidi.
MS MICHAEL: Thank you very much, Mr. Speaker.
I thank the minister for the advance copy of his statement.
Obviously, I am very pleased to see continued investment in this valuable
park system, which benefits both our own tourists provincially as well as
tourists from outside.
I am curious about the fact that the statement refers to only five of the
bridges being replaced. There is no word that Bear Cove Brook bridge will be
replaced and there is nothing about replacing Crabbes River bridge. I know that
people in that area, in particular, are concerned about Crabbes River Bridge
being replaced. I am wondering if this means that it is not going to happen. I
hope we are going to hear in the future that such is not the case.
I am glad to see that the government is concerned about the ecological
concerns, but one of the things I think we need to also remember is that these
trails have a very heavy ATV usage, and ATV safety continues to be an issue in
the Province. If we are going to continue to promote the T'Rails, as I think
we should, I think we are going to have to have a more aggressive educational
program to get people to more safely use their ATVs both on these T'Railways
as well as anywhere else.
Thank you very much, Mr. Speaker.
MR. SPEAKER: Further Statements by Ministers.
Oral Questions.
Oral Questions
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
Mr. Speaker, in March of this year our office distributed a questionnaire to
municipal leaders on the Provincial Waste Management Strategy, which involved
the elimination of Teepee incinerators and the amalgamation of two hundred plus
dumpsites into three engineered landfills, or, as we tend to call them, super
dumps. Mr. Speaker, 55 per of those responding municipalities stated that they
were not satisfied with the current direction of the plan and the cost
associated with it.
I ask the minister today, if she is aware of the level of dissatisfaction
with the department's Waste Management Strategy, and if there is a process
whereby municipalities can have their concerns dealt with.
MR. SPEAKER: The hon. the Minister of Municipal Affairs.
SOME HON. MEMBERS: Hear, hear!
MS WHALEN: Mr. Speaker, I want to thank my colleague for the question.
We have waste management boards set up throughout the Province, and they are
working quite well. There is a group of volunteers that manages those boards,
and various municipalities are represented on that board, so they are moving. It
is a strategy that this government has invested over $200 million in. It is a
strategy that you cannot afford not to buy into.
We need to protect our environment. We need to protect it for our generations
today and for future generations, so there are a lot of things that have to be
worked out in these boards with various municipalities; but the cost to the
waste management, in some cases, is about $8 a household so the cost is not
exorbitant for the municipalities.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: Order, please!
The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
Under the policy direction of government, most of these municipalities are
aware that they have to sign on, close down their dumps and incinerators by a
certain deadline. Many of these municipal leaders have not been given answers on
what the cost detail of the strategy is, and what resources or supports will be
there to support them.
I ask the minister today: What cost analysis has the department done in the
implementation of the Waste Management Strategy for each of the regions, and if
you can table those figures in the House of Assembly?
MR. SPEAKER: The hon. the Minister of Tourism, Culture and Recreation.
SOME HON. MEMBERS: Hear, hear!
MR. JACKMAN: Thank you, Mr. Speaker.
I will certainly endeavour to get any cost analysis that has been done, but
one thing that is happening is that in various regions local boards have been
set up and they are progressing quite well.
In other regions, incinerators are still operating but within confined time
frames because agreements have been reached whereby they are moving ahead with
their Waste Management Strategy, closing out their sites and conjointly sharing
with other communities to go to one facility, and those have been granted
extensions to accommodate that.
Mr. Speaker, our intent here as a government, as the minister just said, we
have invested heavily in this. Look around. At one point there were some 250 of
these dumps around the Province. Right now there are below 200, so progress is
being made and we will continue to do so, Mr. Speaker.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
The concern that was outlined to us in the survey we did with these
municipalities is on the annual cost, the usage cost, of operating the
facilities.
Mr. Speaker, I ask the minister today: Can he confirm to the House that
information received from municipal leaders is indicating that the cost of
garbage collection and disposal has risen by nearly 500 per cent for some of
these municipalities over a period of three years?
MR. SPEAKER: Order, please!
The hon. the Minister of Municipal Affairs.
SOME HON. MEMBERS: Hear, hear!
MS WHALEN: Mr. Speaker, the municipalities have been expressing some
concern over the 100 kilometres transportation. We, as a government, have said
that we would certainly look at that, so we are aware of the cost. In some cases
I have been told that it works out to somewhere in the vicinity of half a cup of
coffee in some cases - that is what it boils down to - to protect our
environment.
There are figures available to the boards that they have been talking on the
boards. We are aware of the cost with regard to over 100 kilometres and we will
address that as a government.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
These municipalities are concerned. It is not that they do not want to
participate in an environmentally-friendly program, Minister; it is the fact
that they have to pay for it and pay extraordinarily for it in some cases, such
as the one I just indicated.
Municipal leaders are also not being given a choice with regard to the
Provincial Waste Management Strategy. We learned from one town, the Town of King's
Point, that they have been denied approved funding for their roadwork for not
signing on to this strategy.
I ask the minister: Are there other communities besides King's Point that
are being denied approval of capital works money on the basis of not signing on
to this agreement?
MR. SPEAKER: Order, please!
The hon. the Minister of Municipal Affairs.
SOME HON. MEMBERS: Hear, hear!
MS WHALEN: Mr. Speaker, there is no municipality being denied their
capital works program. There is a process in place where they have to submit
their applications for any of their capital works.
I will say to the Opposition Leader that the capital works program we are
rolling out with this strategy in waste management, this year alone we have
invested $43 million in Robin Hood Bay on the Avalon.
SOME HON. MEMBERS: Hear, hear!
MS WHALEN: Again, I cannot emphasize enough in this House of Assembly how
important it is to move forward with this Waste Management Strategy, and from
all indications the boards are doing just that in the Province and they are
addressing all of the issues pertaining to cost (inaudible).
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: Order, please!
The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
Mr. Speaker, it is a very serious issue for municipalities, I say to the
members opposite, but municipalities have seen no increase in their Municipal
Operating Grants and, in fact, over a period of time their operating costs have
actually tripled.
I ask the minister: Without the increases in the MOGs, how are these
municipalities which have a declining population base, as we know from the
recent statistics, how will they afford the rising costs of garbage collection
and disposal as is being forced upon them by government right now?
SOME HON. MEMBERS: Oh, oh!
MR. SPEAKER: Order, please!
I say to members that the Chair is having great difficulty hearing the
questions and hearing the responses. I ask for your co-operation.
The hon. the Minister of Municipal Affairs.
MS WHALEN: Thank you, Mr. Speaker.
Just in answer to your question, there have been no cutbacks in our MOGs. In
fact, this year the municipalities are experiencing a 13 per cent increase in
their MOGs.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
SOME HON. MEMBERS: Oh, oh!
MR. SPEAKER: Order, please!
MS JONES: Many of the town officials also expressed to us their
disappointment that the new gas tax secretariat has no autonomy to dispense the
federal Gas Tax Funds for such things as helping them with garbage disposal and
collection in transportation, despite the fact that it is an
environmentally-focused program.
Minister, I ask you: Why are the municipalities unable to access their
portion of the federal Gas Tax Fund for this purpose, and is that a decision of
your department or is it a decision of the federal government?
MR. SPEAKER: The hon. the Minister of Municipal Affairs.
SOME HON. MEMBERS: Hear, hear!
MS WHALEN: Mr. Speaker, the Gas Tax Fund is a federal program and there
are also guidelines set down by the federal government of what they are able to
do with that gas tax.
I have heard the concerns of the municipalities and we are going to endeavour
to work with the federal government to see if we can have some flexibility with
regard to those guidelines.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker
We had town clerks, as well, express to us that they almost felt panic as to
what will happen to their council and senior residents when the Waste Management
Strategy is implemented in some regions, all because of cost again.
I ask the minister: Has government considered any regulatory rate process
that could be used for waste management in the Province so that people are not
penalized based on where they live, or the distance in which their garbage needs
to be transported under your particular strategy?
MR. SPEAKER: The hon. the Minister of Municipal Affairs.
SOME HON. MEMBERS: Hear, hear!
MS WHALEN: Mr. Speaker, we are quite conscious about the cost with regard
to this strategy. We would not be investing $200 million in this strategy if we
did not think it was necessary, but the Province cannot afford not to buy into
this. We are fifteen years behind our counterparts in other parts of the
country.
I will say to the hon. member, that we work together with the municipalities,
with our boards, we will indeed address the cost and it will be relevant and
affordable to our citizens.
Thank you.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
While the minister says we cannot afford not to buy into it, I do not dispute
that, but you have to realize that you have many municipalities in this Province
with declining population and declining tax regimes and yet you are expecting
them to pay more money for services.
Mr. Speaker, the Minister of Environment had asked that the teepee
incinerators in the Province be closed down -
SOME HON. MEMBERS: Oh, oh!
MR. SPEAKER: Order, please!
MS JONES: - for business on December 30 of last year. It could not have
happened, Mr. Speaker, at that time.
I ask the minister today: What has changed that now you are able to meet a
June 30 deadline to have all these teepees closed?
MR. SPEAKER: The hon. the Minister of Tourism, Culture and Recreation.
SOME HON. MEMBERS: Hear, hear!
MR. JACKMAN: Mr. Speaker, the municipalities are as interested as we are
in closing down these incinerators. Everybody recognizes stuff that gets spewed
out of these things and we are very much at a different place than we were
twenty-five years ago, Mr. Speaker.
What is happening at this particular point is that the municipalities are
working through the waste management strategy and working with government to
iron out the plan as to how they can close these incinerators. Our intent is to
have them closed, it was our intent, will be, and these will be closed out, Mr.
Speaker.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
We have already been made aware of one town in the Province who has been
granted an exemption to the June 30 deadline. We are also aware that the Towns
of Port aux Basques, Twillingate, Grand Bank, and Fortune have also applied for
extensions on their teepee deadlines.
So I ask the minister today: What is the plan? Are you going to grant the
exemptions to these towns or not? Of course, one of their concerns again is to
do with the financial cost.
MR. SPEAKER: The hon. the Minister of Tourism, Culture and Recreation.
SOME HON. MEMBERS: Hear, hear!
MR. JACKMAN: Mr. Speaker, I am going to give her a number now, that if we
can have it by June 30 it will be quite a success. If it all works out, we are
going to have twenty of them closed by the end of June, Mr. Speaker. The plans
are in place and we are working with those municipalities. We certainly hope
that we will, maybe we will not, but the thing about it, Mr. Speaker, is that we
are progressing. Look at the money that was invested in waste management in the
former government as compared to what is invested now. Two hundred million
dollars, Mr. Speaker, is a sizeable amount and shows our commitment to cleaning
up the environment.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
The June 30 deadline is their deadline, not mine.
I ask you again minister, for the Town of Port aux Basques, the Town of
Twillingate, Grand Bank and Fortune, who have already asked for exemptions,
given the fact that there is no infrastructure in place for reducing and
handling their waste at this time and no financial assistance for the increased
cost associated with it, I ask you, minister: What is your response to those
towns?
SOME HON. MEMBERS: Oh, oh!
MR. SPEAKER: Order, please!
I ask members to stop their shouting back and forth the House.
The hon. the Minister of Tourism, Culture and Recreation.
SOME HON. MEMBERS: Hear, hear!
MR. JACKMAN: Mr. Speaker, the thing about it, in the cases that she has
identified, is the towns are not operating in isolation. We are working with
them. That is the reason for granting the extension, but our intent is to have
them closed.
So, Mr. Speaker, we will continue to work with them, the plans are in place,
and as they unfold we will see what we have to do.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
Well, twice I have asked the minister if he is going to grant them an
extension, obviously he has not made up his mind or he would be answering the
question.
Mr. Speaker, Municipal Affairs identified themselves $12.7 million in the
2007-2008 Budget that was announced and committed for infrastructure for
municipalities that never got spent. They also identified $7.2 million in
municipal federal-provincial infrastructure money that was allocated and never
got spent. They also identified $3 million under the gas tax program for that
year that did not get spent. That was $23 million that was announced in this
Province in 2007-2008 that did not flow to municipalities.
I ask the minister: What is being done now to ensure that monies that get
budgeted and get announced for municipalities actually reach their towns and
infrastructure gets done?
MR. SPEAKER: The hon. the Minister of Municipal Affairs.
SOME HON. MEMBERS: Hear, hear!
MS WHALEN: Mr. Speaker, we have invested $103 million worth of municipal
infrastructure works in this budget alone.
SOME HON. MEMBERS: Hear, hear!
MS WHALEN: Just recently we announced seventy-one projects affecting
forty-six municipalities in this Province. Just two weeks ago, with the federal
minister and myself, and Minister Taylor we rolled out that program. We also
announced a number of projects with Senator Manning with the federal government
and our contribution.
So we have made investments in our municipalities. We are going to continue
to make those investments to see that they have a standard of living.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
I say to the minister, there was $23 million that you announced in 2007-2008,
too, that never reached into municipalities. Also, Mr. Speaker, in 2008-2009 the
government opposite budgeted $31 million for municipal infrastructure under the
same agreements and only $19 million of it ever got spent in municipalities.
I ask the minister today: Why did $12 million from this program, although it
was committed and announced, not get spent in that budget year and will it be
spent this year?
MR. SPEAKER: The hon. the Minister of Municipal Affairs.
SOME HON. MEMBERS: Hear, hear!
MS WHALEN: Mr. Speaker, we are spending, as I just told the hon. member,
$103 million in provincial is budgeted for this 2009-2010 Budget. We are
continuing to spend with our municipalities. We are continuing to invest in
infrastructure, water and sewer, roads. We have worked very closely with our
municipalities. They make an application. In fact, this year we have even
streamlined their application to make it much more simpler that they can get
their work done.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
Once again, my question is about the fact that money is being announced,
money is being allocated, money is not getting into the municipalities. Mr.
Speaker, in last year's budget there was $52 million for the gas tax program.
Only $40 million of it was ever allocated.
I ask the minister: Why did the department hold back the other $12 million in
that fund, and will it be committed this year or can municipalities still apply
for it?
MR. SPEAKER: The hon. the Minister of Municipal Affairs.
SOME HON. MEMBERS: Hear, hear!
MS WHALEN: Mr. Speaker, the municipalities for the gas tax has to make an
application to Municipal Affairs, and outlined in that application they had to
do ISCPs, and there is an audit and accountable to the federal government. So in
some cases - and I do not know, hon. member, if this is the case, but in some
cases municipalities have not completed that paperwork and they would not be
entitled to that gas tax, but once they complete the paperwork their gas tax
money will be allotted to them.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: So the minister is saying that the reason the money was not
spent is because the municipalities did not do their work. Well, Mr. Speaker,
the program this year, the federal gas tax program this year has $62 million in
it and it has a deadline by the federal government that says it has to be spent
by 2010.
So I ask you, minister, if for the last two years in this Province we could
not get out half that amount of money to municipalities, how do you plan this
year to ensure that the $60 million allocated under this program for
municipalities will be spent before the deadline of 2010?
MR. SPEAKER: The hon. the Minister of Municipal Affairs.
SOME HON. MEMBERS: Hear, hear!
MS WHALEN: Mr. Speaker, I would just like to back up and say to the hon.
member that I did not say the municipalities were not doing their work. There
are some municipalities that have not completed (inaudible).
SOME HON. MEMBERS: Hear, hear!
MS WHALEN: Mr. Speaker, I have hired a new official in my department to
look after the gas tax program to help the municipalities that require help with
getting their paperwork done.
Thank you.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
They may have gotten in on time if they did not change the rules twice since
the program was implemented, and implement new criteria that they had to meet on
two different occasions.
Mr. Speaker, this government has a record of announcing municipal
infrastructure money but not always following through on the delivery of it, and
that is our concern.
In light of the fact, Minister, that there is stimulus money out there this
year, I ask you today: What process will you implement in this Province to
ensure that we have a tracking system of municipal infrastructure money so that
municipalities know when it is being committed, where it is being committed, and
when it will be spent?
MR. SPEAKER: Order, please!
The hon. the Minister of Municipal Affairs.
SOME HON. MEMBERS: Hear, hear!
MS WHALEN: Mr. Speaker, this government has made changes in the way that
the programs are rolled out. In fact, in our department alone we have gone
through pre-engineering with the projects in the fall and in the winter so that
we can get our tenders out early and get our work done.
Thank you.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Opposition House Leader.
MR. KELVIN PARSONS: Thank you, Mr. Speaker.
My questions are for the Minister of Innovation, Trade and Rural Development.
Mr. Speaker, the call centre industry is being impacted by
SOME HON. MEMBERS: Oh, oh!
MR. SPEAKER: Order, please!
The hon. the Opposition House Leader.
MR. KELVIN PARSONS: Thank you, Mr. Speaker.
There is an old saying, when the cat is away the mice will play and the
kids will play, in this case, today.
Mr. Speaker, the call centre industry is being impacted
SOME HON. MEMBERS: Oh, oh!
MR. SPEAKER: Order, please!
For the final time this Question Period, the Chair is going to appeal to
members who are shouting and continually disrupting not only the person asking
the question but the person answering it as well.
There are important questions being asked, there are important answers being
given, and I ask members, for the final time this Question Period, to please
uphold the rules of the House.
The hon. the Opposition House Leader.
MR. KELVIN PARSONS: Thank you, Mr. Speaker. I appreciate your protection.
Mr. Speaker, the call centre industry is being impacted by global economic
conditions. Last week, Teletech in Mount Pearl announced that they were
experiencing problems and would shut down unless they could secure new
contracts. We are now hearing from other call centre employees who are fearful
of their operations also being impacted.
I ask the minister: Have you been contacted or given any indication by these
other call centres that they may, in fact, be experiencing some difficulties as
well?
MR. SPEAKER: The hon. the Minister of Innovation, Trade and Rural
Development.
SOME HON. MEMBERS: Hear, hear!
MR. SKINNER: Thank you very much, Mr. Speaker.
Mr. Speaker, we obviously are living in a global economy. The work that is
being done by the contact centres is work that is reaching throughout the world.
They are competing for contracts across the world. In some cases they win those
contracts and we have good employment, and in some cases they may lose the odd
one and their employment numbers may fluctuate a little bit. That is the nature
of the business and the industry that they are in.
In terms of whether or not I have been contacted by other operations to
discuss what is happening with them, I do not feel that it would be appropriate
for me here in the House to discuss the business of those other contact centres
and I will not give any indication of that at this time.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Opposition House Leader.
MR. KELVIN PARSONS: Thank you.
With all due respect, Mr. Speaker, if it is public money into any business I
would think the minister has a responsibility to advise the public. Never mind
not talking about them. If these people are receiving public funds they should
be talked about and the answer should be given.
Mr. Speaker, call centres such as Teletech were receiving public funds, money
to subsidize the rates that they paid their employees. Teletech is the second
call centre to close in the past year. We had an incident in Carbonear; ICT
closed and there was a loss of 150 jobs, several months ago. The minister
recently stated that the current subsidy program may need to be reviewed to see
what improvements can be made.
I ask the minister: Is government still committed to the subsidy program? If
so, what aspects of the program are you, in fact, reviewing?
MR. SPEAKER: The hon. the Minister of Innovation, Trade and Rural
Development.
SOME HON. MEMBERS: Hear, hear!
MR. SKINNER: Mr. Speaker, in terms of commenting on the operations of any
business that may be involved with government, I have no difficulty speaking to
any public money that government may have involved in any companies in the
Province, and certainly it would be my place to do so, but I am not going to
speak about the operations, the private and confidential operations of private
companies out in the workforce that we have here and the industry that we have
here. I think it would be irresponsible and inappropriate to do so.
In terms of are we committed to the contact centre industry, we certainly
are. We are committed to the programs that we have in place and we do a review
of those programs on a regular basis to determine whether or not we can improve
upon them. I myself have visited a number of contact centres in the last little
while to talk to the management team to see whether or not the programs that we
have in place are addressing their needs, and based upon the feedback that I
have received we may be making some changes in the future but I have some more
visitations that I will be doing.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Opposition House Leader.
MR. KELVIN PARSONS: Thank you, Mr. Speaker.
Given the minister's need for secrecy I will pose the question in such a
way that hopefully we can get some indication from him. Mr. Speaker, I ask the
minister: Have you been given any indication whether the other existing call
centres are, in fact, looking for additional incentives in order to maintain
their operations during the current recession? Have you been approached and
asked for additional incentives to support these existing call centres?
MR. SPEAKER: The hon. the Minister of Innovation, Trade and Rural
Development.
SOME HON. MEMBERS: Hear, hear!
MR. SKINNER: Mr. Speaker, I just want to point out, first of all, I have
no need for secrecy. I do, however, respect the confidentiality of the
businesses that I deal with, and I will continue to respect that
confidentiality.
In terms of any of those businesses coming forward and asking government for
any further subsidies or any enhancements, at this point, there has been no
direct communication with the department. However, I have indicated, in my
previous answer, that I have been visiting contact centres and a number of
things have been discussed but there has been no official representation in that
regard.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Signal Hill-Quidi
Vidi.
MS MICHAEL: Thank you very much, Mr. Speaker.
Potential crisis in the Province's health care system continue to exist. We
have been made aware that not-for-profit and private ambulance operators have
been without a contract since April, 2008.
Mr. Speaker, at this moment twenty-two rural community-based ambulance
operators, representing one-third of all the ambulances in the Province, are
waiting for an agreement between government and the ambulance operators. Some of
the community-based operators are running out of funding to provide emergency
medical services because of government's foot-dragging. Many Newfoundlanders
and Labradorians are in danger of not receiving critical care at the moment they
need it most.
Mr. Speaker, I ask the Minister of Health and Community Services: Will this
government move quickly to rescue this service before another disaster hits our
health care system?
MR. SPEAKER: The hon. the Minister of Health and Community Services.
SOME HON. MEMBERS: Hear, hear!
MR. WISEMAN: Yes, Mr. Speaker.
MR. SPEAKER: The hon. the Member for the District of Signal Hill-Quidi
Vidi.
MS MICHAEL: Mr. Speaker, that is the shortest answer we have ever gotten
from the Minister of Health and Community Services. So let me ask him a question
that he will not be able to say yes or no to.
I am aware, from the not-for-profit operators, that there has been no joint
meeting of the not-for-profit operators and the private operators since January
19, and the not-for-profit operators do not know what is happening.
Mr. Speaker, some of the not-for-profit community ambulance operators are at
a breaking point. In plain terms, some groups cannot afford to keep ambulances
on the road. They need funding for fuel, insurance coverage for the staff and
equipment repairs, very basic requirements. Some have even borrowed money
MR. SPEAKER: Order, please!
I ask the hon. member to pose her question.
MS MICHAEL: Yes, I have a question, Mr. Speaker, and I will ask it.
They have borrowed money that they do not even know if they are going to be
able to return.
So I am asking the Minister of Health and Community Services: Will he please
tell us why this government is not aggressively working towards a contract that
will allow ambulance operators to provide essential emergency services?
MR. SPEAKER: Order, please!
The hon. the Minister of Health and Community Services.
SOME HON. MEMBERS: Hear, hear!
MR. WISEMAN: Mr. Speaker, I was attempting to lead by example by having a
very short answer but unfortunately the member opposite did not pick up on it
and a very long
preamble into a question. So I will take the same indulgence and
give her a fairly lengthy answer.
Mr. Speaker, the issue of ambulance operations in this Province has been
something that our government has taken very seriously. If you look at the
investments we have made in ambulance services in this Province, investments we
have made in our emergency services, Mr. Speaker, speaks volumes I think for our
commitment to that industry.
Next week, I believe, Mr. Speaker, is the next - the member opposite asked
questions about negotiations and where that might be. Next Wednesday I believe
is the next meeting of the negotiating team, representatives from Treasury
Board, representatives from the ambulance industry, representatives from my
department are going to be together next week for what might be, I think, might
be the second if not third time that they have been together trying to work
through an agreement. We acknowledge there is an agreement that has been in
place. It has expired but we are attempting to have a new one in place, Mr.
Speaker.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Signal Hill-Quidi
Vidi.
MS MICHAEL: Mr. Speaker, as I indicated, we know from the not-for-profit
operators that they have not been invited to a meeting since January 19.
Can the minister please tell us who exactly is going to be at the meeting
when it comes to the ambulance operators?
MR. SPEAKER: The hon. the Minister of Health and Community Services.
SOME HON. MEMBERS: Hear, hear!
MR. WISEMAN: It is really important, Mr. Speaker, when you ask questions
in the House to do some research. There are two different things here, Mr.
Speaker. The member opposite is talking about what might be an ongoing liaison
committee that takes place on - because within that industry there is a
relationship between the department and the industry and there is a liaison
committee, a working group of representatives from each of the associations,
together with representatives from my department who work on issues on an
ongoing basis. That is one entity that currently exists.
The second piece, Mr. Speaker, which was the focus of her question, where are
we with respect to negotiations. There is a negotiating team and the negotiating
team is made up of representatives from Treasury Board, my department,
Department of Health and Community Services, and each of the ambulance service
industries in the Province, Mr. Speaker. So they are meeting next week. Now with
respect to other groups, Mr. Speaker -
MR. SPEAKER: Order, please!
The time allotted for questions and answers have expired.
Presenting Reports by Standing and Select Committees.
Tabling of Documents.
Tabling of Documents
MR. SPEAKER: The hon. the Minister of Finance and President of Treasury
Board.
MR. KENNEDY: Mr. Speaker, pursuant to
section 26(5)(
a) of the Financial
Administration Act, I am tabling three Orders in Council relating to funding
precommitments for 2010-2011 to 2013-2014 fiscal years.
That is it, Mr. Speaker.
MR. SPEAKER: Further tabling of documents?
Notices of Motions.
Notices of Motion
MR. SPEAKER: The hon. the Government House Leader.
MS BURKE: Mr. Speaker, I give notice under Standing Order 11 that I shall
move that the House not adjourn at 5:30 p.m. on Monday, May 25, 2009, and
further I give notice under Standing Order 11 that I shall move the House not
adjourn at 10:00 p.m. on Monday, May 25, 2009.
MR. SPEAKER: Further Notices of Motion.
The hon. the Minister of Child, Youth and Family Services.
MS BURKE: Thank you, Mr. Speaker.
I give notice that I will ask leave to introduce a bill entitled, "An
Act To Amend The Adoption Act, The Child Care Services Act, The Child, Youth And
Family Services Act, And The Regional Health Authorities Regulations, Bill 35.
MR. SPEAKER: Further Notices of Motion.
Answers to questions for which notice has been given.
Petitions.
Petitions
MR. SPEAKER: The hon. the Opposition House Leader.
MR. KELVIN PARSONS: Thank you, Mr. Speaker.
I appreciate an eleventh opportunity to present a petition on behalf of the
residents of Southwestern Newfoundland with respect to the lack of dialysis
services that exist in that particular area.
At any given time, we have nine to ten residents and this has been the
history now for years who travel to Corner Brook to get this service. It is
an obvious three-hour trip at best, and in winter time it is usually more than
that. Quite often they get in and don't get back, and quite often they can't
get in due to the weather conditions.
There is no question that the need to have such a service available in the
community exists. It has been proven to the officials at Western and it has been
proven to the officials in the department that the need exists, so that is not a
question. The question is: How do we go about solving the problem? There have
been several solutions offered. The people out in that area, particularly the
officials at the Charles L. Legrow Health Centre who deal with this day in and
day out, and the people in Corner Brook I believe the nephrologist in Corner
Brook and the Chief of Staff in Port aux Basques are putting together a proposal
to deal with the issue.
The question is: We have never had much support before from the department.
We have seen an acknowledgement by the department. They have tried to help out
in other places. They have done a piece of work up in St. Anthony, they have
done a piece of work in Grand Bank, and I believe in Carbonear, but, Mr.
Speaker, the people of Southwestern Newfoundland deserve no less. In fact, they
have equally onerous circumstances when it comes to travel as any of those
people located in those other areas, particularly when it comes to Carbonear,
for example. I certainly see no distinction or why they had a worse case
scenario in Carbonear.
I say to the minister, and for the benefit of the Member for Gander, who
might have confused what I said yesterday, what I did say yesterday in regard to
fundraising, is that the people of Southwestern Newfoundland are prepared to pay
totally for their equipment themselves.
All they are saying is, if government can see themselves clear to provide
some money and funding in that regard it would be much appreciated, but do not
let the money be a hang-up to provision of the services.
The second comment I made was about the training that is required, and the
staff in that area in Port aux Basques are prepared to undergo the time that it
takes I believe it is somewhere between a six- and ten-week course to be
properly trained to do the service.
So, if you have the equipment - we obviously have the need - and you have the
people who are prepared to do the training, I do not know why the Department of
Health would not be prepared to commit to it and we have a place to do it.
For example, we have a facility in Port aux Basques which can accommodate that
particular service.
So, again, we implore the minister to please deal with this issue, look at
it, and at least show that he is making some attempt to familiarize himself with
the issue and hopefully see some resolution to this problem.
Thank you, Mr. Speaker.
MR. SPEAKER: Further petitions.
The hon. the Member for the District of Port de Grave.
MR. BUTLER: Thank you, Mr. Speaker.
I stand today with another petition with regard to the Long Island causeway,
a petition that has been brought forward by the residents not only of Long
Island but from various towns throughout that immediate area. Mr. Speaker, it is
on behalf of the residents, as well as the Long Island Causeway Transportation
Committee.
As I stated before, those individuals on that particular Island had a service
by ferry for twenty-six years, and in March 2009 that service was shared with
Little Bay Islands. They have no problems with the residents of Little Bay
Islands having their right to a ferry service as well, but what they are saying
is that previously when they had the regular ferry service they would get a
crossing, I think it was every hour, and this was an agreement they came to in I
think it was 1983, in lieu of a causeway.
Now we know that this particular ferry service that they agreed to back
twenty-six years ago is not in operation any longer, and they explained to us
that one of the key components to it is the medical assistance. Under the
previous transportation system they would have a half-hour wait for an
ambulance, and now, with the shared service, it could be as high as three to
four hours.
Another issue that they have is they are asking that government at least
restore the ferry service back to what it was and to instruct officials to
determine the cost of a causeway.
We have also been informed by residents that there are over 100 individuals
who derive a living from the sea. Millions of dollars from the fishing industry
enter the economy each and every year. What they are saying, I think the fish
collectors make approximately 140 trips to the Island and many days they cannot
connect with the ferry service that is there now because the fishers are late
coming in, in the evenings, probably as late as 7:00 p.m., 8:00 p.m. and 9:00
p.m., and the last ferry for them is around 9:00 p.m. So, it is a major problem
they have with regard to the fishing activity and getting their product to
market.
Mr. Speaker, with those few words I just want to say that we hope that
government, once they meet with the residents and the committee from Long
Island, will take into consideration their concerns and look at the possibility
of a fixed-link between Long Island and Pilley's Island.
Thank you, Mr. Speaker.
MR. SPEAKER: Further petitions.
Orders of the day.
Orders of the Day
MR. SPEAKER: The hon. the Government House Leader.
MS BURKE: Mr. Speaker, I move Motion 5, pursuant to Standing Order 11,
that this House not adjourn at 5:30 p.m. today, Thursday, May 21, 2009.
Further, Mr. Speaker, I move Motion 6, pursuant to Standing Order 11, that
this House not adjourn at 10:00 p.m. today, Thursday, May 21, 2009.
MR. SPEAKER: The motion is that this House not adjourn at 5:30 o'clock
today, Thursday, May 21.
All those in favour, 'aye'.
SOME HON. MEMBERS: Aye.
MR. SPEAKER: All those against, 'nay'.
The motion is carried.
Motion carried.
MR. SPEAKER: A further motion is that this House not adjourn at 10:00
p.m. today, Thursday, May 21.
All those in favour, 'aye'.
SOME HON. MEMBERS: Aye.
MR. SPEAKER: All those against, 'nay'.
The motion is carried.
Motion carried.
MR. SPEAKER: The hon. the Government House Leader.
MS BURKE: Mr. Speaker, I move, seconded by the hon. Minister of Finance
and President of Treasury Board, to ask leave to introduce a bill entitled, An
Act To Amend The Liquor Control Act. (Bill 32)
I further move that the said bill be now read a first time.
MR. SPEAKER: It is properly moved and seconded that the hon. the Minister
of Finance and President of Treasury Board shall have leave to introduce a bill
entitled,
An Act To Amend The Liquor Control Act, Bill 32, and that this bill be
now a first time.
Shall the hon. minister have leave to introduce Bill 32, and shall this bill
be read a first time?
All those in favour, 'aye'.
SOME HON. MEMBERS: Aye.
MR. SPEAKER: All those against, nay'.
The motion is carried.
Motion, the hon. the Minister of Finance and President of Treasury Board to
introduce a bill, "An Act To Amend The Liquor Control Act," carried.
(Bill 32)
CLERK: A bill,
An Act To Amend The Liquor Control Act. (Bill 32)
MR. SPEAKER: Bill 32 has now been read a first time.
When shall Bill 32 be read a second time?
MS BURKE: Tomorrow, Mr. Speaker.
MR. SPEAKER: Tomorrow
On motion, Bill 32 read a first time, ordered read a second time on tomorrow.
MR. SPEAKER: The hon. the Government House Leader.
MS BURKE: Mr. Speaker, I move, seconded by the hon. Minister of
Education, to ask leave to introduce a bill entitled, An
Act To Amend The Memorial University Pensions Act . (Bill 33)
I further move that the said bill be now read a first time.
MR. SPEAKER: It is properly moved and seconded that the hon. the Minister
of Education shall have leave to introduce a bill entitled,
An Act To Amend The
Memorial University Pensions Act, Bill 33, and that this bill be now read a
first time.
All those in favour, 'aye'.
SOME HON. MEMBERS: Aye.
MR. SPEAKER: All those against, 'nay'.
The motion is carried.
Motion, the hon. the Minister of Education to introduce a bill, "An Act
To Amend The Memorial University Pensions Act," carried. (Bill 33)
CLERK: A bill,
An Act To Amend The Memorial University Pensions Act.
(Bill 33)
MR. SPEAKER: Bill 33 has now been read a first time.
When shall Bill 33 be read a second time?
MS BURKE: Tomorrow, Mr. Speaker.
MR. SPEAKER: Tomorrow.
On motion, Bill 33 read a first time, ordered read a second time on tomorrow.
MR. SPEAKER: The hon. the Government House Leader.
MS BURKE: Mr. Speaker, I move, seconded by the hon. Minister of Finance
and President of Treasury Board, that Bill 3,
An Act To Amend The
Labour-Sponsored Venture Capital Tax Credit Act, be now read a third time.
MR. SPEAKER: It is properly moved and seconded that Bill 3,
An Act To
Amend The Labour-Sponsored Venture Capital Tax Credit Act, be now read a third
time.
Is it the pleasure of the House to adopt the motion that Bill 3 be now read a
third time?
All those in favour, 'aye'.
SOME HON. MEMBERS: Aye.
MR. SPEAKER: All those against, 'nay'.
The motion is carried.
CLERK: A bill,
An Act To Amend The Labour-Sponsored Venture Capital Tax
Credit Act. (Bill 3)
MR. SPEAKER: Bill 3 has now been read a third time and it is ordered that
the bill do pass and that its title be as on the Order Paper.
On motion, a bill, "An Act To Amend The Labour-Sponsored Venture Capital
Tax Credit Act," read a third time, ordered passed and its title be as on
the Order Paper. (Bill 3)
MR. SPEAKER: The hon. the Government House Leader.
MS BURKE: Mr. Speaker, I move, seconded by the hon. Minister of Health
and Community Services, that Bill 8,
An Act Respecting Chiropractors, be now
read a third time.
MR. SPEAKER: It is moved and seconded that Bill 8,
An Act Respecting
Chiropractors, be now read a third time.
Is it the pleasure of the House to adopt the motion that Bill 8 be now read a
third time?
All those in favour, 'aye'.
SOME HON. MEMBERS: Aye.
MR. SPEAKER: All those against, 'nay'.
The motion is carried.
CLERK: A bill,
An Act Respecting Chiropractors. (Bill 8)
MR. SPEAKER: Bill 8 has now been read a third time and it is ordered that
the bill do pass and that its title be as on the Order Paper.
On motion, a bill, "An Act Respecting Chiropractors," read a third
time, ordered passed and its title be as on the Order Paper. (Bill 8)
MR. SPEAKER: The hon. the Government House Leader.
MS BURKE: Mr. Speaker, I move, seconded by the hon. Minister of
Education, that Bill 9,
An Act To Amend The Student Financial Assistance Act, be
now read a third time.
MR. SPEAKER: It is moved and seconded that Bill 9 be now read a third
time.
Is it the pleasure of the House to adopt the motion that Bill 9,
An Act To
Amend The Student Financial Assistance Act, be now read a third time?
All those in favour, 'aye'.
SOME HON. MEMBERS: Aye.
MR. SPEAKER: All those against, 'nay'.
The motion is carried.
CLERK: A bill,
An Act To Amend The Student Financial Assistance Act.
(Bill 9)
MR. SPEAKER: Bill 9 has now been read a third time and it is ordered that
the bill do pass and that its title be as on the Order Paper.
On motion, a bill, "An Act To Amend The Student Financial Assistance
Act," read a third time, ordered passed and its title be as on the Order
Paper. (Bill 9)
MR. SPEAKER: The hon. the Government House Leader.
MS BURKE: Mr. Speaker, I move, seconded by the hon. Minister of
Government Services, that Bill 10,
An Act To Amend The Highway Traffic Act, be
now read a third time.
MR. SPEAKER: It is moved and seconded that Bill 10 be now read a third
time.
Is it the pleasure of the House that Bill 10 be now read a third time?
All those in favour, 'aye'.
SOME HON. MEMBERS: Aye.
MR. SPEAKER: All those against, 'nay'.
The motion is carried.
CLERK: A bill,
An Act To Amend The Highway Traffic Act. (Bill 10)
MR. SPEAKER: Bill 10 has now been read a third time and it is ordered
that the bill do pass and its title be as on the Order Paper.
On motion, a bill, "An Act To Amend The Highway Traffic Act," read
a third time, ordered passed and its title be as on the Order Paper. (Bill 10)
MR. SPEAKER: The hon. the Government House Leader.
MS BURKE: Mr. Speaker, I move, seconded by the hon. Minister of Health
and Community Services, that Bill 12,
An Act To Amend The Pharmacy Act be now
read a third time.
MR. SPEAKER: It is moved and seconded that Bill 12 be now read a third
time.
Is it the pleasure of the House to adopt the motion that Bill 12,
An Act To
Amend The Pharmacy Act be now read a third time?
All those in favour, 'aye'.
SOME HON. MEMBERS: Aye.
MR. SPEAKER: All those against, 'nay'.
The motion is carried.
CLERK: A bill,
An Act To Amend The Pharmacy Act. (Bill 12)
MR. SPEAKER: Bill 12 has now been read a third time and it is ordered
that the bill do pass and its title be as on the Order Paper.
On motion, a bill, "An Act To Amend The Pharmacy Act," read a third
time, ordered passed and its title be as on the Order Paper. (Bill 12)
MR. SPEAKER: The hon. the Government House Leader.
MS BURKE: Mr. Speaker, I move, seconded by the hon. Minister of Justice
and Attorney General, that Bill 13,
An Act To Amend The Children's Law Act be
now read a third time.
MR. SPEAKER: It is properly moved and seconded that Bill 13 be now read a
third time.
Is it the pleasure of the House to adopt the motion that Bill 13 be now read
a third time?
All those in favour, 'aye'.
SOME HON. MEMBERS: Aye.
MR. SPEAKER: All those against, 'nay'.
The motion is carried.
CLERK: A bill,
An Act To Amend The Children's Law Act. (Bill 13)
MR. SPEAKER: Bill 13 has now been read a third time and it is ordered
that the bill do pass and its title be as on the Order Paper.
On motion, a bill, "An Act To Amend The Children's Law Act," read
a third time, ordered passed and its title be as on the Order Paper. (Bill 13)
MR. SPEAKER: The hon. the Government House Leader.
MS BURKE: Mr. Speaker, I move, seconded by the hon. Minister of Municipal
Affairs, that Bill 14,
An Act To Amend The City Of St. John's Act be now read
a third time.
MR. SPEAKER: It is properly moved and seconded that Bill 14 be now read a
third time.
Is it the pleasure of the House to adopt the motion that Bill 14,
An Act To
Amend The City Of St. John's Act be now read a third time?
All those in favour, 'aye'.
SOME HON. MEMBERS: Aye.
MR. SPEAKER: All those against, 'nay'.
The motion is carried.
CLERK: A bill,
An Act To Amend The City Of St. John's Act. (Bill 14)
MR. SPEAKER: Bill 14 has now been read a third time and it is ordered
that the bill do pass and its title be as on the Order Paper.
On motion, a bill, "An Act To Amend The City Of St. John's Act,"
read a third time, ordered passed and its title be as on the Order Paper. (Bill
14).
MR. SPEAKER: The hon. the Government House Leader.
MS BURKE: Mr. Speaker, I move, seconded by the hon. Minister of Justice
and Attorney General, that Bill 15,
An Act To Amend The Legal Aid Act be now
read a third time.
MR. SPEAKER: It is moved and seconded that Bill 15 be now read a third
time.
Is it the pleasure of the House to adopt the motion that Bill 15 be read a
third time?
All those in favour, 'aye'.
SOME HON. MEMBERS: Aye.
MR. SPEAKER: All those against, 'nay'.
The motion is carried.
CLERK: A bill,
An Act To Amend The Legal Aid Act. (Bill 15)
MR. SPEAKER: Bill 15 has now been read a third time and it is ordered
that the bill do pass and its title be as on the Order Paper.
On motion, a bill, "An Act To Amend The Legal Aid Act," read a
third time, ordered passed and its title be as on the Order Paper. (Bill 15)
MR. SPEAKER: The hon. the Government House Leader.
MS BURKE: Mr. Speaker, I move, seconded by the hon. the Minister of
Health and Community Services that Bill 17,
An Act To Amend The Tobacco Control
Act be now read a third time.
MR. SPEAKER: It is moved and seconded that Bill 17 be now read a third
time.
Is it the pleasure of the House to adopt the motion that Bill 17 be read a
third time?
All those in favour?
SOME HON. MEMBERS: Aye.
MR. SPEAKER: All those against?
The motion is carried.
CLERK: A bill,
An Act To Amend The Tobacco Control Act. (Bill 17)
MR. SPEAKER: Bill 17 has now been read a third time and it is ordered
that Bill 17 do pass and that its title be as on the Order Paper.
On motion, a bill, "Act To Amend The Tobacco Control Act," read a
third time, ordered passed and its title be as on the Order Paper. (Bill 17)
MR. SPEAKER: The hon. the Government House Leader.
MS BURKE: Mr. Speaker, I move, seconded by the hon. the Minister of
Justice and Attorney General that Bill 18,
An Act To Amend The Judicature Act be
now read a third time.
MR. SPEAKER: It is moved and seconded that Bill 18 be now read a third
time.
Is it the pleasure of the House to adopt the motion that Bill 18 be read a
third time?
All those in favour?
SOME HON. MEMBERS: Aye.
MR. SPEAKER: All those against?
The motion is carried.
CLERK: A bill,
An Act To Amend The Judicature Act. (Bill 18)
MR. SPEAKER: Bill 18 has now been read a third time and it is ordered
that the bill do pass and its title be as on the Order Paper.
On motion, a bill, "An Act To Amend The Judicature Act," read a
third time, ordered passed and its title be as on the Order Paper. (Bill 18)
MR. SPEAKER: The hon. the Government House Leader.
MS BURKE: Mr. Speaker, I move, seconded by the hon. Minister of
Innovation, Trade and Rural Development that Bill 20,
An Act To Amend The
Research And Development Council Act be now read a third time.
MR. SPEAKER: It is properly moved and seconded that Bill 20 be now read a
third time.
Is it the pleasure of the House to adopt the motion that Bill 20 be now read
a third time?
All those in favour?
SOME HON. MEMBERS: Aye.
MR. SPEAKER: All those against?
The motion is carried.
CLERK: A bill,
An Act To Amend The Research And Development Council Act.
(Bill 20)
MR. SPEAKER: Bill 20 has now been read a third time and it is ordered
that Bill 20 do pass and that its title be as on the Order Paper.
On motion, a bill, "An Act To Amend The Research And Development Council
Act," read a third time, ordered passed and its title be as on the Order
Paper. (Bill 20)
MR. SPEAKER: The hon. the Government House Leader.
MS BURKE: Mr. Speaker, I move, seconded by the hon. the Minister of
Justice and Attorney General that Bill 28,
An Act To Amend The Provincial Court
Act, 1991 be now read a third time.
MR. SPEAKER: It is properly moved and seconded that Bill 28 be now read a
third time.
Is it the pleasure of the House to adopt the motion that Bill 28 be read a
third time?
All those in favour?
SOME HON. MEMBERS: Aye.
MR. SPEAKER: All those against?
The motion is carried.
CLERK: A bill,
An Act To Amend The Provincial Court Act, 1991. (Bill 28)
MR. SPEAKER: Bill 28 has now been read a third time and it is ordered
that the bill do pass and its title be as on the Order Paper.
On motion, a bill, "An Act To Amend The Provincial Court Act,
1991," read a third time, ordered passed and its title be as on the Order
Paper. (Bill 28)
MR. SPEAKER: The hon. the Government House Leader.
MS BURKE: Mr. Speaker, we would like to call from the Order Paper, number
15, second reading of a bill,
An Act Respecting Credit Unions. (Bill 11)
MR. SPEAKER: It is moved and seconded that Bill 11,
An Act Respecting
Credit Unions, be now read a second time.
Motion, second reading of a bill, "An Act Respecting Credit
Unions." (Bill 11)
MR. SPEAKER: The hon. the Minister of Government Services.
MR. O'BRIEN: Mr. Speaker, I move, seconded by the Minister of Aboriginal
Affairs, that Bill 11,
An Act Respecting Credit Unions be now read a second
time.
Mr. Speaker, this is a very important act in regards to what it does to the
regulations and the legislation pertaining to credit unions. Credit unions have
been in Newfoundland and Labrador the first act was proclaimed on December
21, 1995. This act here, in regards to these amendments, is the department's
ongoing commitment to reduce red tape and balance the legislation. We found, in
regards to reviewing this particular act, that the act needed upgrading to meet
the frequent changes that have been occurring in the financial industry.
Certainly, this piece of legislation, as I just indicated, governs twelve
credit unions with forty branches operating in the Province, with assets of over
$630 million. I must note as well, that in spite of the global economic slow
down, credit unions in our Province continue to do well with 2008 being a record
setting year.
Also, credit unions provide banking services, very, very important banking
services to rural Newfoundland and Labrador. We find most of our credit unions
are located in rural Newfoundland. We have also seen, over the years, the
conventional banks pull back branches from rural Newfoundland. One in
particular, down in the district of Trinity North, if I can remember right, in
New-Wes-Valley, one of the conventional banks pulled back a couple of years ago.
So these credit unions provide an essential service of banking to those
people. It is this government's intent to make sure that credit unions have
the support of government and the legislation and the regulations, to help them
work in an efficient manner and provide those services to the people of
Newfoundland and Labrador.
Now this act, for the most part, is mostly administrative in nature and
reduces red tape for the system. It removes some administrative requirements
from legislation and places them under the responsibility of the board of
directors of credit unions, where it should be, because this reflects also the
authority of the credit union system in the Province.
We consulted with credit unions on these changes and they fully endorse them.
In addition, they specifically asked the department to look at changing
legislation to allow them to sell life insurance products in their branches.
With that, Mr. Speaker, I will go down through some of the minor changes that
are addressed in regards to these amendments. I also would like to say that we
would, in this act, we also are asking for the repeal of the Credit Union
Deposit Guarantee Corporation regulations, which will be incorporated within the
credit union regulations themselves, where they should be to as well. That is a
change too as well that we saw that needed to happen. So we certainly recommend
that piece of work to be done too as well here this afternoon.
The minor policy changes that are included in the amendments of the act is
the one that is under
section 7(2) of the act, to allow credit unions to enter
into joint service agreements. What that does is it allows continuous service of
their customers when they move from jurisdiction to jurisdiction, because under
the current act there is an issue there in regards to if somebody from one
jurisdiction moves to the jurisdiction of another credit union they cannot carry
out their normal banking transactions. So this allows that to happen and it is
certainly no minor change but a very necessary change too as well.
Also, we have under
section 134(2)(
b) I believe and 134(4)(2) of the act, we
recommend changing the protocol governing amalgamation of credit unions too as
well.
At present, under the amalgamation they are allowed to amalgamate but they
cannot proceed if an individual creditor with a claim of $1,000 or more objects
to that amalgamation. I think this is prohibitive to the credit unions because
sometimes the amalgamation of a credit union is required and is in the best
interests of the members to have this happen because it strengthens their
particular credit union and makes them more financially sound and they work in a
very transparent and accountable manner thereof.
Also, we found that the rationale for this change is that the creditor
liabilities only represent an insignificant portion of any credit union's
overall liabilities. At the end of financial year 2006-2007, creditor payables
represented only 0.7 per cent of all liabilities as compared to member deposits
which represented 99.3 per cent, which I think multiplies into 592.3 million of
all liabilities. So the proposed change is designed to preclude a small creditor
or a group of small creditors from blocking amalgamation that would otherwise be
in the best interest of the credit union members and the creditors themselves.
The big time creditors too could be blocked in regards to that and it would be
in the best interest if the credit unions in particular would amalgamate.
Also, we have a change in one of the regulations, 16(2)(b). We have proposed
an increase to the term of statutory liability instruments from one year to five
years. To cut that short, really what that means is that the credit unions now -
any liquidity instruments are now protected under the credit union system
national liquidity pool, but also now that you have increased the time frame
from the one year to five years it enables the credit union to invest wisely and
certainly have a higher rate of return in regards to the investments on that
liquidity pool. So this is very important too as well because it also
strengthens their financial foundation.
Under the act too as well, we have a proposal which permits any interested
parties or the superintendent to revive a defunct credit union, which we - right
now. So we propose to remove that because there is no reason to retain such a
provision, as a dissolved credit union retains no assets. So why would you have
that there in regards to reviving that credit union? They would go through the
normal process of making application to the Department of Government Services in
regards to reinstating a credit union in that particular jurisdiction.
We also would like to strengthen the authority of the superintendent in areas
under the act right now in regards to appeals from a credit union. The
particular credit union would make the appeal to the minister, which I am
advised by my officials - which I feel is kind of in a conflict of interest
because my mind may be set at a certain degree, I guess, on the issue. What we
think should happen in this process is that any appeal should go straight to the
courts. So we strengthen the authority of a superintendent in that regard.
We also brought in amendments which provides for fines - which brings it
really into modernization, what to fine in regards to the financial world. Just
to give an example, we propose changing these fines from $1,000 to $10,000 for
individuals and $10,000 to $50,000 for corporations. They are no longer
effective and deterrents for breaches under the act. So we propose them too as
well.
So these are some of the minor changes in regards to that act, but the
substantial policy change would be the allowing of wealth management tools to be
exercised by a credit union. What that means is that credit unions now will be
able to sell other types of wealth management insurances to their members. I
might point out right from the beginning, that this only applies to their
members. A person like myself, or a person, probably other people and my
colleagues in this House of Assembly today, would not be able to walk in off the
street and buy wealth insurance from a particular credit union. You have to be a
member of that particular credit union in order to avail of that service.
Also, I want to point out that that only constitutes 9 per cent of the
population of Newfoundland and Labrador. So what I am saying is that out of the
whole population base, the adult population base in Newfoundland and Labrador,
there is only 9 per cent of that population base that are now members of a
credit union. So there is only 9 per cent of the population that would be able
to go in and buy extra product from a credit union.
I also want to point out that credit unions now are doing that, but under the
current legislation, they have to do that in a parallel type operation. As a
matter of fact, in most credit unions they are right next door. The two
buildings or the two operations are closely connected with a door in between. So
in other words, you go in and do your banking on one side, and then you go
through the door and then you buy wealth products on that side of the wall.
We think that that is unnecessary. We think that is a financial burden,
really, to the normal operations of a credit union. So, we certainly see that as
prohibitive in regards to a credit union having a firm foundation and able to
carry out their transactions without any extra costs. I point that out again,
that they are actually doing that at this particular time. So this only just
streamlines it really.
Anyways, I should at this particular time also say that yes, we had
representation. We had consultation on the process and we sent out letters to
the insurance companies, the Sun Lifes of the world, and they have really
expressed concern over this, because they say that it could be attached to tied
selling. Tied selling is that yes, we would give you your mortgage but we want
all your other business too as well, in regards to your life insurance and
whatnot.
We do not see that. We looked at the Quebec model. They have been doing it
now for a number of years. Also, we looked at the B.C. model, and there are a
number of credit unions that are providing this type of service too as well, and
we see no data. There is no evidence of that.
Also, in regard to tied selling, there are provisions under other acts that
prevent and prohibit credit unions from doing that type of transaction or even
contemplating that type of transaction, and they could be prosecuted under that
particular provision under that particular act.
Also, credit unions are now selling portions of wealth management, such as
mutuals. All we are going to add in this particular bill is life, disability,
annuities, segregated funds, and that kind of stuff.
I also want to point out that it doesn't include home and auto. That will
not be included. That is a whole different ballgame. There is a high risk game
there. They are not interested in regard to home and auto because it is very
prohibitive to their operations. I indicated to credit unions that, as the
minister responsible, I wouldn't be entertaining any proposal that would
include home and auto at this particular time, or any time in the future for
that matter.
Also, there were, with regard to the insurance industries, concerns. They
see, I guess, that we are giving credit unions the ability to transact some of
the normal business that they do on a day-to-day basis. As I just referenced, in
BC and Quebec data showed that it had no downward affect in regard to any of the
business that was being transactioned by the private brokers nor the insurance
companies themselves. We didn't see that as a problem.
We addressed the tied selling. We don't see that as a problem either, and
we will monitor that. I also want to reference that anybody who would be deemed
as the person responsible for the selling of that type of insurance will have to
meet any education or training that is under the regulations now pertaining to
anybody in the insurance industry. They will have to meet all those regulations
before they will be able to sell, no differently than the private operator as
well.
I anticipate that some credit unions will sell and some credit unions will
not, but I think it is an important aspect of the actual amendments. The simple
reason is that most of the credit unions are located in rural Newfoundland and
Labrador and there are not a whole lot of brokers out there selling insurance.
We also found, in regard to national surveys, that the selling of insurance
in regard to classes of people has shifted as well. We found that low to medium
income people have now been certainly included, or have actually decreased in
regard to the amount of insurance being bought by those people. Mostly the
insurance companies concentrate on the wealthy people because they buy, and it
is not as hard a sell as what you would find in regard to low to medium income.
So now these people, the members, and only the members, in rural Newfoundland
and Labrador, will have that ability to be able to buy such insurance from their
credit union location. That is only if they are a member.
There are some things in regard to the clarity in the act as well that
streamlines it and certainly makes it clearer. It enables credit unions to know
exactly what they have to do under the legislation and under the regulations,
and that is very important as well from an operational point of view.
I think I have covered most of it, Mr. Speaker. Again, we have forty branches
across the Province, and thirty-one of them are located in rural areas, and
their assets reach approximately $407 billion in rural and there are 198 rural
employees with salaries and benefits totalling $7.4 million in rural
Newfoundland and Labrador. So credit unions are very important to the rural
fabric of Newfoundland and Labrador.
SOME HON. MEMBERS: Oh, oh!
MR. SPEAKER (T. Osborne): Order, please!
MR. O'BRIEN: Certainly, I believe that this is a very important piece of
legislation in regard to the amendments and the proposal thereof.
MR. SPEAKER: Order, please!
The Chair is having some difficulty in hearing the speaker that is recognized
and I would ask the co-operation of all members of the House.
MR. O'BRIEN: Thank you, Mr. Speaker.
With that I am going to finish, and I welcome any comments by my colleagues
across the House.
MR. SPEAKER: The hon. the Member for Port au Port.
MR. BUTLER: Port de Grave.
MR. SPEAKER: The hon. the Member for Port de Grave.
MR. BUTLER: Not a problem, Mr. Speaker.
Let me say it is a pleasure to be able to stand today and have a few comments
with regard to Bill 11,
An Act Respecting Credit Unions.
As the Government House Leader mentioned, there are 197 clauses and I do not
think I will take each one individually and go through them all but there are a
few comments I do want to make because this is a very detailed piece of
legislation, as the minister mentioned, a very important piece of legislation
governing a very important group of individuals who are classified here in our
Province as the credit unions.
Mr. Speaker, as I stated, there are 197 clauses in relation to this Bill 11,
and the bill would revise and consolidated the laws respecting credit unions
under various headings. We have headings with regard to incorporation of credit
unions, capacity and powers that they are governed by, with regard to
registration of their offices and their records. There is a
section with regard
to membership, and the directors and officers that operate those credit unions,
returns of financial disclosures, any fundamental changes. It goes into with
regard to liquidation. It even covers off on penalties and offences and
compliance and supervision.
Mr. Speaker, this act will be cited as the Credit Union Act, 2009. Once you
do a bit of study with regard to some of those bills and pieces of legislation
it becomes very interesting in some of the documentation you come across, not
altogether pertaining to the bill itself but how credit unions were formed and
where they began.
We know that a credit union is a co-operative financial institution that is
owned and controlled by its members, and the minister already stated that with
regard to the membership, and they operate for a purpose: promoting thrift,
providing credits at reasonable rates, and providing financial services to its
membership.
We know that is happening in quite a few areas throughout our Province, in
rural Newfoundland as well as in our major centres, and many credit unions exist
to further community development as well, but they vary in sizes, the credit
unions. They range from volunteer operations with a handful of members to
institutions with several billion dollars in assets and hundreds of thousands of
members.
It is very interesting to note that the modern credit union's history dates
back, I think, to approximately 1852. The very first one was established in
Germany, and the first credit union in North America, anything I could find on
it, was in Quebec. The minister has already mentioned how they have watched the
progress and the development of credit unions in Quebec, and many of the changes
and the governance of this particular bill are brought about through what has
happened in other jurisdictions.
The one in Quebec began on January 23, 1901; and, believe it or not, they
began with a ten-cent deposit. So they started out very small, but let me assure
you that since that time they have developed.
The gentleman who started the first one was a reporter in our Canadian
Parliament. He was moved to take up this mission in 1897 when he learned of an
individual from Montreal who had been ordered by the courts to pay nearly $5,000
in interest on a loan of $150. So it came from a very minor beginning when
someone had a loan of $150 and the interest on it was $5,000, and that is what
prompted this individual to get a credit union formed to protect the money
borrowed.
Also mentioned in the legislation is not-for-profit status. That is very
interesting, because all too often when we hear about not-for-profit we think
about organizations that are in our Province and so on. Not-for-profit with
credit unions should not be confused with not-for-profit charities of similar
organizations, because credit unions are not-for-profit because they operate to
serve their members rather than to maximum the profits. Unlike non-profit
organizations, credit unions do not rely on donations. They must turn what is,
in economic terms, a small profit to be able to continue to serve their members.
As the minister mentioned, the credit unions are of various sizes.
Canada has the highest per capita use of credit unions in North America, with
more than one-third of the population enrolled. That is very important. Even
though I know the minister mentioned, I thought he said here in the Province it
was 9 per cent, but then again 9 per cent, I guess, from a beginning back in
1995, I thought the minister said, we can see that is advancing and rightly so.
As the minister also mentioned, I learned that it is very heavily
concentrated in Quebec. In Quebec they call them the people's banks. Also,
they are very popular in western parts of our country, in British Columbia in
particular.
As of December 31, 2007, those people's banks, as they refer to them in
Quebec, have in excess of $144 million in assets with 5.8 million retail
members, so it is a very large operation. It makes, as a matter of fact, the
sixth largest financial institution in Canada. You can see, Mr. Speaker, when we
talk about these credit unions, they are becoming a force to reckon with. In the
United States, as of 2005, credit unions have 86 million members, which is 43
per cent of the economically active population. They are very large and very
popular in the United States as well.
We know, Mr. Speaker, that here in Newfoundland and Labrador we have thirteen
credit unions, but some of those unions have various branches throughout the
Province as well. You can only imagine, with the thirteen credit unions that we
do have here in the Province, the value with regard to assets in those. The
membership, we know, is 9 per cent. Not only that, but it is the jobs that they
create for people in the various communities where those credit unions are set
up.
Mr. Speaker, as I said, this bill would revise and consolidate the laws
respecting credit unions. We know that clause 197.(1) of the Credit Union Act
will be repealed by this new act, and the Credit Union Deposit Guarantee
Regulations are also to be repealed, and the Proclamation bringing the Credit
Union Act into force in Newfoundland and Labrador is being repealed. The
commencement of this act, once this law passes, will come into force fairly
soon, July 1, 2009.
Mr. Speaker, it is worth noting that this new act is really a clean up of the
old act because I think there are approximately fifty sections removed from the
old act that were no longer needed or in effect. We see government, and in
particular the Department of Government Services, taking a lot of the
legislation where they govern so many different aspects here in our Province,
they are cleaning up the acts and making familiar changes with regards to that;
150 pieces, just imagine.
This act will give more responsibility to the board of directors of the
credit unions in general, and really, less to government. You are also giving
them a little freer hand, and I guess like we hear from time to time,
eliminating some of the red tape.
Legislation also allows credit unions flexibility to be a part of whatever
association they so desire, and the minister explained that earlier in his
opening comments.
One of the major policy shifts in this legislation is that it is allowing
credit unions to now sell life insurance. The minister explained that and also
said that other types of insurance would not be included at this particular
time;
whereas before, the credit unions had to do this through subsidiaries.
Because of that, they are saving on cost, I guess, with regards to having
separate offices and so on. The minister noted that Quebec is the only other
province that has allowed this to go on for years.
Just as a point of note, I am glad to see the minister is taking particular
notice to Quebec on this issue, and hopefully he will keep following up on
another issue, that is services in the wintertime and what they are doing in
Quebec with regards to the tires. I just say that with tongue in cheek, Mr.
Minister.
Also, Mr. Speaker, the department, we know this because and another thing
I want to say, that the officials within this department, any time we have
legislation coming through and we want to be briefed on it, we are always given
that honour of having someone explain various issues once we do the research on
it and if we need any particular follow up. We know, from that process, that the
department had consulted about the changes. Really, the only concerns that were
expressed, and he already touched on that, is with regards to other life
insurance brokers who are concerned that they may lose some business. Like the
minister said, it is only the 9 per cent who are members here in our Province
are able to avail of buying life insurance through the credit unions. I guess
the upside to that is more competition and better prices for our consumers, and
that is also a thing we always have to keep in mind and is very important.
We know that through the credit unions here in the Province that we have some
forty branches. I think it is approximately 52,000 members, of which 35,000-plus
are from rural Newfoundland and Labrador. So it is an issue that we see those
credit unions spread right throughout our Province. I saw a list of them. I do
not have it here in front of me but really they are from one end of our Province
to the other, as well as Labrador. The payroll of $15 million and deposits of
approximately $600 million, that is what is dealt with through the credit unions
here in our Province; a staggering figure, I have to say.
Mr. Speaker, I just want to touch on briefly the application process for
credit unions, and some of this is covered off in the legislation. You have to
apply through a committee which is made up of various members, including
government. You present your business plan with a - I think it is a minimum of
500 members with a deposit of $100 each. This would be a starting point if
someone wanted to start that process. In most cases, it ended up being branches
of credit unions instead of an actual credit union, and we know that there are
different branches. Credit unions and branches were small in nature but now they
have become highly recognized institutions that are becoming competition for
some larger banks. Like I said, some of the major numbers that are used in
British Columbia and Quebec are that is a known fact.
There are a lot of mergers in credit unions. For example, there is a
Newfoundland and Labrador Credit Union who is a member of the British Columbia
and Ontario, central cases. So we see not only are they in their own provinces
but they are tied and working in relation to individual credit unions in other
jurisdictions. However, others are with the Atlantic Central, which is made up
of Atlantic provinces.
So you see, Mr. Speaker, there is quite a bit of documentation with regards
to the 197 clauses and all the various subsections, and as noted before, this is
a good piece of legislation. It is a cleaning up of the old act, which I guess
is an issue that has to be dealt with from time to time. The only issue, and
maybe the minister did touch on this because I remember him making some comment
there but I was distracted for a little while, and that is not very hard for me
sometimes. I thought it was mentioned that some people had a question with
regards to membership. I thought they put it forward to the minister, and maybe
you did mention that there a little bit earlier with regards to local credit
unions, with regards to if you were a member of one credit union and being
transferred to the other. I think that was an issue that was brought forward,
and I think you did address it but I did not get your response. So probably in
your closing remarks you could touch on that again.
With that, Mr. Speaker, that will conclude my comments with regards to Bill
11,
An Act Respecting Credit Unions.
Thank you very much.
MR. SPEAKER: The hon. the Member for Signal Hill-Quidi Vidi.
MS MICHAEL: Thank you very much, Mr. Speaker.
I am quite pleased to stand and speak to Bill 11,
An Act Respecting Credit
Unions, and I thank the minister for the full explanation that he gave of the
act.
Before speaking directly to the act, I would like to raise an issue that I
remember raising before in the House with regard to bills. This bill,
unfortunately, only had as an explanatory note: "This Bill would revise and
consolidate the law respecting credit unions." That was the explanatory
note which really did not explain anything about clauses in the bill. We have
had other bills which have three and four pages of explanatory notes. Actually,
one the other that was similar to this one in terms of the intent of the bill of
consolidating it, we still had several pages of notes.
When the explanatory notes are not there it means our researchers have to
spend time in contacting people inside of the ministry involved to ask
questions. While we did that, and I have to say that the ADM responsible who
spoke with my researcher was very, very helpful and gave very detailed
information and some of the information that the minister raised today, but it
would be helpful if those explanatory notes were included. Then we can read them
and if there is a specific question than we can just call and ask the answer to
a specific question, but it takes a lot of time when there is absolutely nothing
there and the researchers have nothing to go on and they have to call and go
from scratch. So I would like to raise that issue and hope that the House Leader
and ministers may think about giving further direction to ministries with regard
to the explanatory notes of bills. I am aware of the fact that it is not
necessarily the ministry that drafts the bills. I think it may be the Department
of Justice, and I think I am right on that one.
The ADM, for example, who we spoke to, was surprised that there were no
explanatory notes with regard to this particular bill. I just want to point that
out because we do have limited resources in reading bills and I think we have an
obligation to read every bill. I do not think that we are there just to rubber
stamp. We want to read every bill. We want to know what the legislation is. We
want to know what it is we are standing for, so being assisted by having good
explanatory notes helps at least this party anyway, the third party, helps us to
be better prepared and make sure that we know what it is that we are passing. I
wanted to make that note first, Mr. Speaker.
I am not going to go through all the details, obviously. The minister did a
good job of explaining some of the issues with regard to the red tape reduction,
which I think is good. We do not want unnecessary bills, and the fact that the
amendments that would have had to have been made would have required so much
work it was actually easier to come up with a new bill than to do all those
amendments. I think that is the way to go; and taking regulations out of the
bill as well is also the way to go.
I am going to speak particularly to two points, I think, Mr. Speaker; I think
it is two in particular. One has to do with the insurance. We were told by the
department - and we can say yes, that happens - we have been told that there has
been lobbying by the insurance industry objecting to Bill 11 and the whole thing
around insurance. I can say yes, we have had some of those letters also written
to us, but I have to say that I absolutely agree with the ministry with regard
to the insurance issue because, number one, it is not new, as has been pointed
out by the minister and pointed out by my colleague from the Official
Opposition. The credit unions have always been able, through a subsidiary, to
sell insurance to their members, so there isn't anything new here, and they
will not have the ability to sell to anybody else.
The other thing is that the majority of the credit unions, thirty-three out
of forty-five, are rural, so the majority of the credit unions in this Province
are serving rural populations where you do not have, in many cases, insurance
offices present in a community. In some cases you may have an individual
insurance broker, but in a lot of communities you do not even have that, so they
may have to drive an hour or more to go to an insurance company.
Even with technology today, and even being able to communicate through
electronic technology, people still need to have a face-to-face connection,
especially when it comes to insurance. There are a lot of questions to ask, et
cetera, so I think allowing the credit unions to sell insurance without going
through the extra red tape, really, a nuisance, of setting up a subsidiary,
having a separate entrance they are probably in the same building but a
separate entrance - separate staff, it makes absolutely no sense. I have to say
that I certainly am not sold by the arguments that have been presented to me by
the insurance companies who have written us. So, try though they might, I do not
think they have a leg to stand on when it comes to this issue.
As well, it is my understanding, and I think I am correct on this I am,
actually that the provinces who are not doing this, who have not made this
change it is only Quebec who does this that the provinces who have not
made this change continue to be guided by the federal Bank Act. The federal Bank
Act only forbids banks from selling insurance. Credit unions are not included
under the same regulations. So, in actual fact, the provinces that say they will
not do it because of the federal Bank Act, that is not even valid to use that as
an excuse for not allowing insurance to be sold through the credit unions.
That is something that I would point out to the insurance companies, and I
will probably take the time to write the insurance companies who did write me,
to explain to them why I support this bill, because I think this bill is for the
good of the people in the Province, the good of people in rural Newfoundland. It
is a service to them, and that is very important.
The other thing that I would like to talk about is the whole thing of the
credit union centrals and the barriers to starting new credit unions. The reason
I want to speak to this issue is because we have had some communication from
people in the co-operative movement not in the credit union movement, though
the credit union is a co-operative, but that is a particular co-operative
and there are people in the co-operative movement who have concerns about credit
unions becoming too large, and losing the focus that credit unions originally
have, which is service to the community; service to the members and service to
the community.
There are some concerns that the larger that credit unions get, and the more
branches that a credit union has, the more a credit union will start acting like
a big bank and will lose the values of service to the community.
So, when we were told by the Department of Government Services that the move
toward branches of the existing credit unions seemed to be the way that things
were going to go in the future, I have to say, I personally had some concerns
and people from the co-operative movement expressed concerns to me as well.
Because, yes, it is easier to set up a branch and set up a new credit union, but
if there are 500 people in a community willing to set up a credit union it seems
to me that the spirit of the credit union movement would be better served by
having separate credit unions.
I am wondering: Is any tracking going on, either provincially or through
ACOA, in terms of Atlantic Canada with regard to how much of a move this is,
this move towards branches rather than new credit unions? I bring it up because
it has been raised to me by people in the co-op movement and I agree with their
concern.
For example, one of the places spoken about with us was Bell Island. Credit
unions have said that a branch on Bell Island is not viable; that if a branch is
not viable a credit union will not be viable either. The problem is that so many
people commute daily to St. John's and use banks in the city.
The thing is they use banks in the city because their bank was closed down on
Bell Island. My point is, if Bell Islanders came up with 500 people, and met all
of the criteria, then why wouldn't they be allowed to form a credit union? Why
should they be - and I am using the word force, not knowing if force is actually
happening - but why should they be coerced into becoming a branch of another
credit union, especially when a larger credit union, like the NLCU, the
Newfoundland and Labrador Credit Union, might say to them a branch is not going
to work, and the NLCU is saying it based on the fact well, all of you people
bank in St. John's. Of course they do, because that is the only place they
have to bank.
I am wondering, especially with the move towards having an Atlantic central,
which a lot of our credit unions are going to join, in my understanding -
Newfoundland and Labrador Credit Union will not. They are going to stay
connected with the B.C. central, but I think the other credit unions in
Newfoundland and Labrador are going to join the Atlantic central.
I am wondering, does ACOA, for example, have I do not think it does, so I
should not even put it that way. I do not think they do have a paper on credit
union development, some principles, some guidelines, something that would guide
credit union development in Atlantic Canada; because one of the strengths of the
credit union here in Newfoundland and Labrador - and I know it is true over in
the three Maritime Provinces - is that the credit unions are serving rural
Newfoundland and Labrador, and we should be doing everything to ensure that we
continue having credit unions support the rural development in our Province as
well as in the other Atlantic Provinces.
I would be concerned if we started to see no new credit unions but more and
more branches, simply because of that concern with regard to what happens if a
credit union becomes so large that it loses contact with the community. Because,
you know - and I say this from personal experience - when you are a member of a
very large credit union, unless something really awful is happening, you do not
feel compelled even to go to AGMs, to annual general meetings.
Unfortunately I know because I am a member of the NLCU and very often the
message comes and I find out that I am not free on that night so I cannot go
anyway, but I do think that if AGMs happen in a smaller community you do have
more of a sense of people wanting to go to them. So, if you just have a branch
of a large credit union in a smaller community - the AGM is for the whole of the
credit union, so the meeting is probably taking place in St. John's, for
example, or Corner Brook - people from the branches are not going to be
encouraged then to go to annual general meetings. That is one of the ways in
which the credit union can lose the basis of what the whole principle of what
credit unions are about.
That one is more a sense of saying, is the ministry involved in looking at
the whole thing around what is happening. I am sure they are with regard to in
Atlantic central, but also with regard to where we are headed, what could be
happening with regard to the lack of growth of new credit unions.
I think, Mr. Speaker, that, along with my comments on the insurance - which
basically was not a question; it was to say that I totally support the insurance
becoming a service inside of the credit union - these are the main comments that
I have to make. I would be interested in the minister giving some sense of
whether or not the ministry is looking at the growth of branches as opposed to
new credit unions.
Thank you very much, Mr. Speaker.
MR. SPEAKER: The hon. the Minister of Government Services.
If he speaks now he shall close debate.
The hon. the Minister of Government Services.
SOME HON. MEMBERS: Hear, hear!
MR. O'BRIEN: Thank you, Mr. Speaker.
Certainly, as reflected by comments by my colleagues across the House, this
is a very important piece of work that we are doing here in regard to
strengthening credit unions, particularly giving them the chance of growth and
the chance of a firmer foundation, a stronger foundation in rural Newfoundland
and Labrador, and certainly providing banking service to our rural areas now
that we find conventional banks over a number of years - we seen a pull-back of
those types of services and branches in those particular areas.
They fully understood the issues surrounding the wealth insurance, and the
selling of wealth insurance through credit unions as well, and I believe the
hon. Member for Port de Grave wanted me to make a few comments in regard to what
I believe he was referring to as joint service agreements which allow members to
move across jurisdictions and still retain the services of a credit union from
one area to another.
That is reflected in this amendment to the act, and that will be allowed as
soon as this piece is proclaimed. I think it is very, very important that you
allow that because, once a member, they would like to remain a member and they
would like to avail of any services from a credit union regardless of the
jurisdiction that they may be in.
I should also say, and I do not think I actually said it outright in my
opening remarks, that the concerns of the insurance industry were not lost on me
in regard to their concerns, not at all, especially from a broker position. You
must remember that the insurance industry as it is in Newfoundland and Labrador
is reflected around a broker system. They sell insurance for the big insurance
companies such as Sun Life, as I keep referring to because I have done a lot of
business with Sun Life myself over the years. I have mortgages, I have all kinds
of banking services through that particular company, and they provide a fair
number of banking services that you would find in a conventional bank or in a
credit union. The only thing that you cannot have, or one of the only things
that you cannot have, through an insurance company is a personal account that
you put money in or you take money out on a particular day or on a particular
week; but, in regard to availing of most of the banking services as provided by
banks today, and credit unions, you can avail of that.
Again, from a broker's position, their concerns were not lost on me at all.
I listened carefully and I received a lot of correspondence, but I was not
convinced that it would have that kind of a detrimental effect on their
business. They are professionals in their own right. I have a financial advisor
myself, that I have had for a lot of years, and I will continue to use that
financial advisor regardless if I was a member of a credit union or not; because
they are, as I said, very astute, very in tune to the markets. Why would you
move from one to the other when you have that kind of a service? So I do not see
that kind of a shift happening just because a credit union is allowed to do it.
I do not have concerns about the tied selling. We have provisions in other
legislation, in other acts, that govern that. I cannot see credit unions move
into that for the simple reason that they operate under a professional service
as well.
I think the hon. Member for Signal Hill-Quidi Vidi had some concerns or she
wanted to raise a concern that she has, to myself as the minister responsible,
in regard to the expansion of credit unions as compared to branches of credit
unions. Yes, we do follow that. Each and every credit union application is
evaluated on its own application, on its own merits, and we do take that into
consideration when we evaluate. If a credit union has enough members, they have
the liquidity, they have the assets and they have everything else that they
need, we have no objection to a credit union being established in its own right
in any jurisdiction.
In saying that, the reason why you are seeing branches of credit unions is to
enable the various credit unions across Newfoundland and Labrador, and even in
B.C. or even in Quebec, in regard to the branches, it gives them a firmer
financial foundation. Once they start to grow in regard to their asset levels,
which are governed by the number of branches and the number of members that they
may have, you will see a much stronger financial foundation. It will enable them
to provide more services. It will give them more assets to deal with, so they
become very important to the people they are servicing, especially in a branch
area, because the branch area may not be able to grow in that regard and have
the assets that they would have in a joint partnership type of deal. That is the
reason why you see the branch level expanding as compared to the actual credit
unions, and that is all dictated by population as well. You might see more
actual credit unions in a more densely populated area or jurisdiction than you
would in regard to Newfoundland and Labrador. That is just the nature of the
beast.
I hope I answered the questions that were raised by my hon. colleagues across
the House. I certainly welcome their support and I certainly welcome their
comments.
With that, Mr. Speaker, I will sit and we will move to the next piece of work
to be done.
MR. SPEAKER: It is moved and seconded that Bill 11 entitled,
An Act
Respecting Credit Unions, be now read a second time.
Is it the pleasure of the House that the said bill be read a second time?
All those in favour, 'aye'.
SOME HON. MEMBERS: Aye.
MR. SPEAKER: All those against, 'nay'.
Carried.
CLERK: A bill,
An Act Respecting Credit Unions, Bill 11.
MR. SPEAKER: This bill has now been read a second time. When shall the
said bill be referred to a Committee of the Whole House? Now? Tomorrow?
MS BURKE: Now, Mr. Speaker.
MR. SPEAKER: Now.
On motion, a bill, "An Act Respecting Credit Unions," read a second
time, ordered referred to a Committee of the Whole House presently, by leave.
(Bill 11)
MR. SPEAKER: The hon. the Government House Leader.
MS BURKE: Mr. Speaker, Order 16,
An Act To Amend The Income Tax Savings
Plans Act, Bill 19. We will now go into second reading.
MR. SPEAKER: The hon. the Minister of Government Services.
MR. O'BRIEN: Mr. Speaker, I move, seconded by the Minister of Aboriginal
Affairs, that Bill 19,
An Act To Amend The Income Tax Savings Plans Act, we now
read a second time.
MR. SPEAKER: It is moved and seconded that Bill 19 entitled,
An Act To
Amend The Income Tax Savings Plans Act, be now read a second time.
Motion, second reading of a bill, "An Act To Amend The Income Tax
Savings Plans Act." (Bill 19)
MR. SPEAKER: The hon. the Minister of Government Services.
MR. O'BRIEN: Mr. Speaker, this is really just an amendment to reflect the
tax free savings account that was announced by the federal government in their
budget shortly after Christmas. As most of the people in Newfoundland and
Labrador, especially my colleagues here in the House, know, it enables Canadians
age 19 or older to save up to $5,000 a year in that account. This is not
taxable. It is a tax free savings account, and proceeds taken from the account
are not taxable as well. Also, contributions are not deductible for income tax
purposes.
We currently allow beneficiaries to be named. Prior to a will being probated
or read, a person who has RRSPs or RIFs can designate a beneficiary and they can
avail of the assets that are in those accounts prior to any will, just as long
as they are named as the beneficiary.
Certainly, what this amendment reflects is the same. It allows anybody who
would have those tax free accounts under the federal act, to also be able to
name the beneficiary, and that beneficiary will be able to avail of any of the
assets that are held under those TFSAs outside the process of a will upon de