Newfoundland and Labrador Hansard — Members' Statements; Statements by Ministers — 4 May 2015 (47th General Assembly, 4th Session, Vol. XLVII No. 8)

2015-05-04

Newfoundland and Labrador — Debates (Hansard)

Newfoundland and Labrador Hansard — Members' Statements; Statements by Ministers — 4 May 2015 (47th General Assembly, 4th Session, Vol. XLVII No. 8)

2015-05-04

Newfoundland and Labrador — Debates (Hansard)

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May

4, 2015

HOUSE OF ASSEMBLY PROCEEDINGS

Vol. XLVII No. 8

The

House met at 1:30 p.m.

MR. SPEAKER (Verge):

Order, please!

Admit strangers.

Statements by

Members

MR. SPEAKER:

Today we will hear

members' statements from the Members for the Districts of St. George's

Stephenville East, St. John's Centre, Carbonear Harbour Grace, Humber

Valley, Virginia Waters, and St. Barbe.

The

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

MR. REID:

Thank you, Mr. Speaker.

Mr.

Speaker, recently the Stephenville Rotary Club paid tribute to the late

Monique Rideout, a long-time volunteer with the Rotary Music Festival in

Stephenville.

Monique began her involvement in the festival as a singer at the age of

eight and she continued singing at the festival throughout her school years.

When she returned to Stephenville after being away at university, she

volunteered her time working as a secretary for the adjudicators of the

festival during the mid-1980s.

Monique continued to sing with many groups in the Bay St. George area such

as the Glee Club and the choirs at St. Stephen's Church.

She was also instrumental in planning the fiftieth anniversary of the

choral group which will take place in 2016.

She was a vibrant contributor to the music in the Stephenville area.

Monique worked on the Rotary Festival Syllabus, even as she was diagnosed

with cancer, and was a supporter and inspiration up until her untimely

passing at the age of forty-eight.

would like the House to recognize the work and dedication of Monique Rideout

and her contribution to the Stephenville Rotary Music Festival and also to

recognize the work of others on the Music Festival's Steering Committee who

continues the work that she was involved in.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

St. John's Centre.

MS ROGERS:

Thank you, Mr. Speaker.

Last

night, activists and artists launched into Mental Health Week with a

brilliant idea executed with heart, talent, and humility.

Musicians and the fantastic staff of The Ship pub put on a show

organized by Amelia Curran to raise money for a night of live music for

patients at the Waterford Hospital, a show that left us spellbound.

Many in the audience renewed their conviction to help out in any way

they can.

Mr.

Speaker, while I am happy to commend those who are working on mental health

this week, last night made clear that in fact thanks to activists like

Co-Chairs Mark Gruchy and Meaghan Barnhill, and everyone in the Community

Coalition 4 Mental Health, this has been a mental health year.

I am

so proud to have played a role in calling the Community Coalition 4 Mental

Health together, as I see daily evidence that, thanks to their hard work and

expertise, they have raised our expectations of what is possible when we

work together. Their membership

numbers are growing daily. They

have reactivated citizen advocacy, and there is no stopping them.

They are bursting at the seams with hope and determination.

Bravo, Mr. Speaker, to the Community Coalition 4 Mental Health and its

hard-working members and all mental health activists.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Carbonear Harbour Grace.

MR. SLADE:

Thank you, Mr. Speaker.

Mr.

Speaker, I rise in this hon. House today to congratulate Gina Colbourne of

Carbonear on being named the Red Cross Newfoundland and Labrador Young

Humanitarian of the Year. This

award recognizes young people in Newfoundland and Labrador who dedicate

their time and effort towards volunteerism, community involvement, and

humanitarian interests.

Gina

is a third-year medical student and was nominated for the award by her

classmates at Memorial University.

She was named valedictorian of her Bachelor of Nursing 2012 class.

Much of her volunteer work stems from MUN Medicine, where she is

deeply involved in the Monte Carlo Charity Gala, raising money for local

charities.

Gina

has dedicated a of her time to the Heart and Stroke Foundation, Canadian Red

Cross, Easter Seals, Single Parent Association, War Child Canada, the

Janeway Reading Program, and the Association for New Canadians.

Gina was also the runner-up for the title of Miss Newfoundland and

Labrador in 2013, and is a previous Miss Teen Trinity-Conception.

Mr.

Speaker, I ask all hon. members to join me in congratulating Gina on being

named the Red Cross Newfoundland and Labrador Young Humanitarian of the

Year, and wish her success in her medical studies.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Humber Valley.

MR. BALL:

Thank you, Mr. Speaker.

rise in this House today to congratulate teams from the Deer Lake Minor

Hockey Association who won medals at the respective year-end provincial

tournaments.

Once

again players and coaches of the Deer Lake Minor Hockey Association are to

be congratulated for their high level of success.

Their hard work and determination are certainly reflected in the

achievements by all teams involved.

The

Deer Lake Atom team won the provincial C championship; the Pee Wee A team

won the provincial B tournament; and the Pee Wee B team won a bronze medal

at the mega tournament in Paradise.

The

Bantam team won silver at the Bantam A tier 3 division championships.

The Deer Lake under-12 girls captured gold in the C division

championship along with the Girls Under-15 team winning a silver medal at

the provincial tournament.

Minor hockey provides an opportunity for youth to engage in personal

physical, mental, and social development.

Through its team oriented structure, young athletes are able to

create memories that will last a lifetime.

ask all members of this House to join with me in congratulating the Deer

Lake Minor Hockey Association on their success at the respective provincial

tournaments.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Virginia Waters.

MS C. BENNETT:

Thank you, Mr.

Speaker.

rise in this hon. House today commemorating the 90th anniversary of women in

Newfoundland and Labrador earning the right to vote.

April 1925 women in our Province also won the right to run for public

office.

For

decades the campaign for women's suffrage fought to have the concerns of

women addressed in political life, giving women the opportunity to seek

elected office and to vote on issues including child welfare, education,

maternal health and domestic violence among others.

I am proud of the legacy left by these early pioneers of the women's

movement in our Province.

The

suffrage movement began in Newfoundland and Labrador in September 1890 when

a group of sixty women lobbied publicly and passionately for the right to

vote in municipal elections.

These women fought to be heard as equals in the decisions of government that

affect the lives of all Newfoundlanders and Labradorians, not because we are

women, but because we see issues differently and care about different

things.

Better government results from diversity.

Mr.

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

conviction of those brave women which have marked the path their legacy

continues in our work today.

Thank you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

St. Barbe.

MR. J. BENNETT:

Thank you, Mr.

Speaker.

The

2014 Adrian Awards, held in New York City February 2015, saw the

Newfoundland and Labrador Find Yourself tourism marketing campaign win four

gold. Gros Morne Magic won gold

for TV Advertising and Gros Morne Online Campaign won gold for Web Ad

Series. These international

awards are presented by Hospitality Sales and Marketing Association

International.

Since 2006 Newfoundland and Labrador tourism marketing has won forty-seven

Adrian Awards, including five platinum.

Results show that between 2009 and 2014 non-resident visits increased

22 per cent.

stated, in Newfoundland and Labrador, especially in the Gros Morne National

Park region, there is no such thing as accidental tourism.

It takes planning and determined effort to visit, the challenge being

to lure people off the beaten track.

Gros Morne Magic and Gros Morne Online Campaign have been

instrumental in delivering results.

Newfoundland and Labrador, with Gros Morne National Park, has become a

tourism destination that others watch and imitate.

Mr.

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

Gros Morne Magic and Gros Morne Online Campaign on winning gold at the 2014

Adrian Awards.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

Statements by Ministers.

Statements by

Ministers

MR. SPEAKER:

The hon. the Minister of

Service Newfoundland and Labrador.

SOME HON. MEMBERS:

Hear, hear!

MR. CRUMMELL:

Thank you, Mr. Speaker.

Mr.

Speaker, I rise in this hon. House to recognize May 3 to 9 as North American

Occupational Safety and Health Week.

The goal of NAOSH Week is to focus on the need to eliminate or

control workplace hazards, ensure all workplaces are safe, and to emphasize

that we all have a responsibility to promote safety.

Today, I was joined by my colleague, the Minister Responsible for the

Workplace Health, Safety and Compensation Commission to participate in a

flag raising outside Confederation Building to mark the occasion.

We were joined by officials from the Workplace Health, Safety and

Compensation Commission, members of the local

chapter of the Canadian

Society of Safety Engineering, as well as representatives from safety groups

and their employer and labour sector, and I thank them for their

participation.

This

year's theme is Make Safety a Habit For Your Career, which underlines the

need to remain vigilant about staying safe at work, at home, and in our

communities. Service NL

continues to work with employers and labour groups to enhance Newfoundland

and Labrador's safety culture.

Working collaboratively, we are enforcing strong safety standards,

increasing safety awareness, and ensuring adequate safety training is

delivered and used in workplaces across this Province.

Mr.

Speaker, the Workplace Health, Safety and Compensation Commission

collaborates with the Occupational Health and Safety Branch of Service NL to

enhance safety in all workplaces.

Last year over 12,800 directives were issued to identify and correct

unsafe work practices, and more than 4,800 inspections were carried out

across the Province.

want to offer special thanks to the members of the local

chapter of the

Canadian Society of Safety Engineering for one again volunteering their time

to plan and promote NAOSH Week.

This group spearheaded NAOSH Week here in Newfoundland and Labrador, and it

has grown to include the rest of Canada, the United States, and Mexico.

Mr.

Speaker, I encourage everyone to look for opportunities to enhance safety in

all aspects of our lives, so that we can return safe to our families and

friends at the end of every day.

Thank you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Mount Pearl South.

MR. LANE:

Thank you, Mr. Speaker.

thank the minister of an advance copy of his statement.

We, too, here in the Official Opposition want to recognize the

importance of North American Occupational Safety and Health Week and

certainly want to congratulate the members of the CSSE for organizing NAOSH

Week activities. They are

certainly a very committed group of individuals.

I know most of them very well, having been a safety practitioner

myself. Obviously, we want to

encourage all workplaces to ensure they are safe and people go home at the

end of the day the way they arrived.

Certainly, government has a very important role to play in occupational

health and safety in the workplace.

That is why we continue to encourage government, for example, in

Labrador West, to deal with the issues around silica dust, to deal with the

issues around not having inspectors there for the last three years, only fly

in, fly out.

want to encourage government to start upping inspections on fishing vessels

in the fishing industry, something that is sorely lacking.

As well, Mr. Speaker, we want to

MR. SPEAKER:

Order, please!

remind the member his time has expired.

MR. LANE:

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

St. John's East.

MR. MURPHY:

Thank you, Mr. Speaker.

also recognize NAOSH Week this week and all their efforts behind it.

It is readily apparent that we are also living in a dangerous world.

Sometimes occupational health and safety can be enhanced with

government action. Lone worker

legislation, for example, is sorely needed.

I think of taxi drivers, convenience store employees, and such that

could be covered and protected.

also just cannot depend on looking for an opportunity to enhance safety, Mr.

Speaker. Sometimes we have to

have the strength to see stronger legislation to ensure it.

Thank you very much.

MR. SPEAKER:

The hon. the Minister of

Health and Community Services.

SOME HON. MEMBERS:

Hear, hear!

MR. KENT:

Thank you, Mr. Speaker.

rise in this hon. House today to recognize May 4 to 10 as Mental Health

Week. This morning I had the

pleasure of joining members of the Newfoundland and Labrador Division of the

Canadian Mental Health Association for their annual Mental Health Week

conference, and to proclaim Mental Health Week in Newfoundland and Labrador.

Mental Health Week is an annual national event held by the Canadian Mental

Health Association to raise awareness of mental health across Canada.

It is a key opportunity to further the conversation around mental

health.

Mr.

Speaker, mental health is a key priority for the provincial government.

While these are challenging times and we have made some tough

decisions as a government in order to support our five-year plan for

sustainability, we remain committed to move forward with the replacement of

the Waterford Hospital when the Province's fiscal situation improves.

Meanwhile we are committed to ensuring youth and adults have access to the

programs and services they need.

Improving access to mental health and addictions services through the use of

innovative online technologies is one way we are accomplishing this goal.

During this morning's conference, I was proud to announce that we are

expanding Bridge the gApp, an existing mental health app for youth, to

include additional features and content.

A similar app is being developed for adults that will also offer

self-help information and self-referral to mental health and addiction

services.

Mr.

Speaker, as a government, we recognize the tremendous value of research in

advancing the way we deliver programs and services.

That is why we are investing in research funding for e-technologies

supporting mental health. An

investment of $50,000 will be provided to Memorial University's Counselling

Centre to test ways to deliver a number of offerings, ranging from brief

self-help online to tailored interventions with counsellors.

A second research grant of $50,000 will fund the Province's adoption

of the BreathingRoom Program an online self-management program that gives

young people between the ages of thirteen and twenty-four the tools to

manage stress, depression, and anxiety.

we recognize Mental Health Week, it is important that we also highlight the

continuing work of many groups and individuals throughout the Province who

are raising awareness, reducing stigma, and enhancing access to programs and

services.

Thank you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Burgeo La Poile.

MR. A. PARSONS:

Thank you, Mr.

Speaker.

thank the minister for the advance copy of his statement.

Mr. Speaker, I am happy to rise in this House today to recognize

Mental Health Week, and I want to quote the Canadian Mental Health

Association when they say, We all have mental health, just as we all have

physical health. I think it is

important to expand our thinking around mental health.

We are all vulnerable to mental health issues arising in our lives,

and we have to prioritize mental health promotion.

I do

find it sad to hear the minister say in the same breath that mental health

is a priority for a government that is delaying replacing the archaic

Waterford Hospital until the fiscal situation improves.

We also have to express concern around the focus on self-managing

mental health. While we

certainly believe in empowering people to become partners in caring for

their mental health, we have to question how valiant an effort it is to

actually increase access to mental health services.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

St. John's Centre.

MS ROGERS:

Thank you, Mr. Speaker.

we celebrate Mental Health Week there are families across the Province who

are waiting months and months to get help for their children.

There are adults on year-long waiting lists desperately reaching out

for help, patients and staff working and living in an antiquated psychiatric

hospital, family doctors doing their best to try and help their patients,

citizens locked up in the most dilapidated prison in the country because

they have serious mental health problems they could not get help with.

Awareness and dialogue is not enough.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Minister of

Transportation and Works.

SOME HON. MEMBERS:

Hear, hear!

MR. BRAZIL:

Thank you, Mr. Speaker.

Mr.

Speaker, I am pleased to rise in this hon. House to reiterate the importance

of providing learning opportunities to employees with the public service

that focus on safety and consistency in the delivery of services.

Newfoundland and Labrador has a professional and dedicated public service

working throughout the Province.

The Department of Transportation and Works has over 1,700 employees in a

variety of fields. They are

technicians, engineers, administrators, and policy analysts.

There are those who pilot ferries, those who fly and maintain

provincial aircraft, and those who maintain the over 10,000 kilometres of

provincial roads.

These public service employees are our neighbours; they are the people who

you see at your child's hockey practice or meet at the grocery store.

They take an active role in our communities, but they are also

dedicated to serving the residents of Newfoundland and Labrador in their

professional capacities within the department.

Both

as a government and as an employer, we are committed to providing employees

with opportunities to improve upon the skills they use to ensure that safety

and consistency are key components of every job, every day.

With

that in mind, a training program has been developed for Transportation and

Works department supervisors, specifically maintenance and engineering

project supervisors and operation supervisors.

It is anticipated that the first sessions will be conducted over four

days and will take place in late May.

This

in-house training will ensure that the department supervisors are working

with the most up-to-date information regarding the department's highest

standards for summer maintenance, winter maintenance, ice control, and

safety practices.

Topics will include: an orientation on the knowledge, skills and abilities

that are necessary to safely provide quality service to the public; the

importance of communications and consistency in operations across the

Province; and the continued focus on employee safety and public safety.

would like to express my support and encouragement to supervisors and

managers as they embark on the important and critical training to ensure the

safe and effective delivery of public services.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

St. John's South.

MR. OSBORNE:

Thank you, Mr. Speaker.

light of the many stories in the media recently about road safety, I think

this announcement is timely. I

believe it is something that is important.

need to ensure that our employees and they are dedicated, they are

dedicated to the safety of the driving public have up-to-date information

about the standards in this Province.

When you see ruts and hydroplaning and issues like that on our

highways throughout the Province, Mr. Speaker, maybe it is the standards

themselves that need to be looked at.

I know the employees in this Province are dedicated.

They are people just like us.

They are driving the roads we are driving but they can only work with

the tools that they are given.

While these information sessions are absolutely essential and important to

those employees to ensure the safety of our driving public, the standards do

have to be looked at.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

St. John's East.

MR. MURPHY:

Thank you, Mr. Speaker.

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

Mr.

Speaker, culture and safety should also include an understanding by

ministers, deputy ministers, and upper management that certain conditions

also have to be followed. It is

not just about the employees. An

employee should be the final arbiter of safety on any job site, on land or

on the water. Sometimes that

fact is overlooked.

Congrats on the institution of the training program but let's undertake the

task in ensuring accountability if an accident or a dangerous occurrence

happens.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

Oral Questions.

Oral Questions

MR. SPEAKER:

The hon. the Leader of the Official

Opposition.

MR. BALL:

Thank you, Mr. Speaker.

Last week,

government decided to reach into everyone's pocket and increase HST in our

Province, but their own Budget documents tell a story of Japan's recent

sales tax hike. In that country,

consumption fell dramatically.

Their economy went stagnant, and further tax increases were postponed for

fear of prolonged economic difficulties.

The research is clear; an increase in HST is a job killer.

I ask the

Premier: Given that your own Budget documents point to the negative economic

impact, why are you hurting our economy by increasing HST?

MR. SPEAKER:

The hon. the Minister of Finance and

President of Treasury Board.

SOME HON. MEMBERS:

Hear, hear!

MR. WISEMAN:

Mr. Speaker, this is several times I

have heard the Leader of the Opposition make a reference to our own

document, The Economy 2015, which is a really comprehensive overview of

the provincial economy but also sets a context of what is happening

globally.

When you cherry

pick a sentence or two out of any document you always run the risk of

distorting the picture. One of

the things that the Leader of the Official Opposition has failed to

acknowledge is the context in which that statement is read.

If you look at the economy of Japan for the last twenty or

twenty-five years, they have a debt there is about 225 per cent of GDP in

that country.

Any time you

make a comment about the impact of any fiscal decision it has to be made in

the context of a bigger picture, I say, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of the Official

Opposition.

MR. BALL:

Thank you, Mr. Speaker.

Well, maybe I

will shrink the picture down a little more, because in the same booklet that

the minister is talking about and after $25 billion in oil money in our

Province this government has really failed to diversify the economy.

Now, in that

same booklet he did not mention this but all provincial economic

indicators are pointing in the wrong direction.

In the booklet that the minister is talking about it says that GDP is

down, retail income, household income is down, retail sales is down, housing

starts are down ,

employment down, population down, unemployment going up, and the Consumer

Price Index going up.

So I

ask the Premier: With all those provincial economic indicators pointing in

the wrong direction, why are you hurting the economy with this regressive

tax increase?

MR. SPEAKER:

The hon. the Minister of

Finance and President of Treasury Board.

SOME HON. MEMBERS:

Hear, hear!

MR. WISEMAN:

Mr. Speaker, I am

delighted that the member opposite, the Leader of the Official Opposition,

has read the document because now he should fully understand some of the

reasons why we took this balanced approach to our Budget.

One of the things that I said last week in the Budget Speech

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

MR. WISEMAN:

was very clearly, we

are acknowledging the current circumstance that the Province finds itself

in, Mr. Speaker, and we had to make some very significant choices.

Budgets are about choices

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

MR. WISEMAN:

and we believe that we

have made the choices that provides a balance which positions Newfoundland

and Labrador in a better position than if we were to run out and amass huge

debt like the member of the Opposition is suggesting, or his other colleague

who is suggesting that we make massive cuts in the public service.

Either way would be too severe, I say, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

Order, please!

The

hon. the Leader of the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

Well, I would suggest that the $2 billion in borrowing that the minister is

already talking about, the increase in HST, will slow the economy.

The minister should know that, given the experience that he has.

The HST increase, as an example, makes buying a new home in our

Province more difficult and out of reach for many in the Province.

Last

year, during the PC Leadership campaign, the Premier himself said he would

create a program to provide a down payment assistance for first-time

homebuyers.

So I

ask the Premier: Instead of making it easier, as you had promised, why did

you make it harder for people to buy their first home?

MR. SPEAKER:

The hon. the Minister of

Finance.

SOME HON. MEMBERS:

Hear, hear!

MR. WISEMAN:

Thank you, Mr. Speaker.

are going to hear over the next two or three weeks, I suspect, Mr. Speaker,

a lot of cherry-picking on this Budget.

Members will stand up day after day, will ask questions in debate,

will highlight some particular aspect of this Budget that they do not like.

No doubt, it will always be about things that they do not like.

They

have never, ever you will not see them, Mr. Speaker the Member for

Virginia Waters will stand today and talk for several hours, but not once

will she talk about a balanced perspective, not once will she talk about the

big picture, not once will she talk about the future, not once will she talk

about how the strategic decisions being today are about making sure that we

make the right choices

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

MR. WISEMAN:

and we take a balanced

approach to work our way through the circumstance we find ourselves in, Mr.

Speaker, and that is what this Budget is about: balance and choices.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

Speaking of balance and choices: Will the Minister of Finance or the

Premier, as he mentioned in the leadership campaign, now agree that

increasing the HST will make it harder for the first-time homebuyer to

purchase that first house? It is

a simple question: Yes or no; is it more difficult today as a result of the

HST?

MR. SPEAKER:

The hon. the Minister of

Finance.

SOME HON. MEMBERS:

Hear, hear!

MR. WISEMAN:

Mr. Speaker, here you go

again; taking one question, one issue, in isolation.

What I can tell the member opposite and tell the people of this

Province is this particular Budget

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

MR. WISEMAN:

makes some choices and,

on balance, the people of Newfoundland and Labrador will be better off as a

result of the decisions we made and announced in our Budget last week than

they will be and would have been had we made some very significant decisions

in other ways.

we do not have a balance between our revenue stream and our expense stream,

and looking at our fiscal capacity to borrow and what that outer limit might

be, if we do not take a balanced approach, not only will it be difficult for

people to buy their house for the first time, it will difficult for people

to hold onto the house they already have.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

There is no question that is what increasing HST does: making it more

difficult for people to hold onto the money, that they paid for that that

takes money out of the hands of Newfoundlanders and Labradorians, I say, Mr.

Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. BALL:

Government is borrowing

$2 billion, but transferring $760 million to Nalcor; $571 million is going

to the Muskrat Falls Project.

ask the Premier: How much total money will the people of Newfoundland and

Labrador have to borrow to fund Muskrat Falls?

MR. SPEAKER:

The hon. the Member for

Finance.

SOME HON. MEMBERS:

Hear, hear!

MR. WISEMAN:

Just think about Muskrat

Falls, Mr. Speaker. Let's put it

in context. Over a ten-year

period starting in 2008 and ending in 2018, this Province, this Government

of Newfoundland and Labrador, will invest in a company that is owned by the

people of Newfoundland and Labrador, some $3 billion in total over that

ten-year period. Guess what?

We are going to get every single cent of it back in eight years.

SOME HON. MEMBERS:

Hear, hear!

MR. WISEMAN:

In the following

seventeen years from that we are going to get $12 billion back on that

investment; and from there on, for the rest of our lives, $1 billion a year

in fact, in excess of $1 billion a year.

That is the kind of return the people's company is going to give to

Newfoundlanders and Labradorians.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

question was: How much are we borrowing for the project at Muskrat Falls?

The Minister of Finance surely should have that number right now.

How

much are we borrowing to fund the project of Muskrat Falls?

MR. SPEAKER:

The hon. the Minister of

Finance.

SOME HON. MEMBERS:

Hear, hear!

MR. WISEMAN:

Mr. Speaker, the member

opposite, with his vast business experience, would fully appreciate return

on investment. He understands

that concept, Mr. Speaker. He

would understand that concept quite well.

Just

let me repeat one more time. We

are putting in $3.1 billion over ten years.

We are getting it all back in eight years.

The following seventeen years we are getting back $12 billion more,

and then for the rest of our lives a little better than a billion dollars a

year forever and a day, I would say, Mr. Speaker.

Just

think about that for a moment.

When you start talking about borrowing money, when you start talking about

investing money, all you are concerned about or should be concerned about is

what is going to be a return on that?

How are we going to get our money back?

What value will it be for the people of Newfoundland and Labrador?

Fundamentally, Mr. Speaker, that is a great investment in our future.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

will remind the minister that the people of Newfoundland and Labrador are

paying every single cent for that project.

It is going to be on their electricity bills.

He knows it and the people of Newfoundland and Labrador know it.

Newfoundland Power is concerned that once the Holyrood station comes offline

there is considerable risk of prolonged transmission failures on the

Labrador to Island Link. They

went looking for detailed information from Newfoundland and Labrador Hydro

but they have been denied.

ask the Premier: Do you support Hydro withholding this information from

Newfoundland Power?

MR. SPEAKER:

The hon. the Minister of

Municipal and Intergovernmental Affairs.

SOME HON. MEMBERS:

Hear, hear!

MR. HUTCHINGS:

Thank you, Mr.

Speaker.

There is no doubt, as we know here, a regulatory regime in place in this

Province, Mr. Speaker. In regard

to the specific question that the member asked, I am not familiar with it at

the moment but I will certainly take the information, provide it to the

House of Assembly

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

MR. HUTCHINGS:

and take it under advisement to make the information available to the hon.

member.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

thank the minister for that.

What is happening right now is we have Newfoundland Power that is looking

for information. This is public

knowledge. It was April 22 they

put in this request, and obviously this information that they want is being

withheld.

until April 22, 2015, when asked questions in the House about the RFP for a

new Labrador Marine service, the minister gave no indication that it would

be cancelled on April 30, which was Budget day.

ask the Premier: When was a decision made to cancel the RFP for the Labrador

Marine service?

MR. SPEAKER:

The hon. the Minister of

Transportation and Works.

SOME HON. MEMBERS:

Hear, hear!

MR. BRAZIL:

Thank you, Mr. Speaker.

had a very extensive process in the RFP development, Mr. Speaker.

What we did was look at exactly how we could provide a service for

the people of Labrador. We had

to take into account our fiscal reality.

The fiscal reality was the costing that came in from the RFP was much

higher than we anticipated. As a

result, we are going to go back and deal with our stakeholders.

I have engaged opening up the Labrador communications process here.

I am going to bring stakeholders in.

We are going to determine exactly what service it is that is

sustainable and affordable for the taxpayers of Newfoundland and Labrador.

Thank you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

question about the RFP for the Labrador ferry system and ferry services was

when was the RFP cancelled? On

April 22 the minister stood in this House, April 30 was Budget day, so

somewhere in between that there was a decision made.

It was not reflected in the statements on April 22.

ask the minister: When was this decision made to cancel this RFP?

MR. SPEAKER:

The hon. the Minister of

Transportation and Works.

SOME HON. MEMBERS:

Hear, hear!

MR. BRAZIL:

Thank you, Mr. Speaker.

This

was an ongoing discussion through the Budget process, Mr. Speaker, an

ongoing where we went in, as it works with ministers, and we assess exactly

what our budget lines are in our own line departments.

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

MR. BRAZIL:

What is it we can afford?

What is in the best interest of the taxpayers of Newfoundland and

Labrador, and if there are other ways we can do things that are more

sustainable and more affordable for the taxpayers.

Mr.

Speaker, when we assessed this, the costing was much higher than we were

able to fulfill within our budget lines.

So, Mr. Speaker, we are going to go back.

We are going to deal with the people of Labrador.

We are going to continue the service we have.

We are going to find ways to improve it.

Then we are going to engage, and then we are going to go back to the

market when the time is right and we know that the process in place will

guarantee we get something that is affordable and sustainable for the people

of Labrador.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

The

RFP was issued in December 2013 and it finally closed on June 16, 2014, and

there were two extensions. A

year and a half after it was issued, government now says they are going back

to consult with the people of Labrador on a new RFP process.

ask the Premier: It is clear that marine services are needed in the region,

so why a year-and-a-half later are you repeating steps and increasing the

cost of this process?

MR. SPEAKER:

The hon. the Minister of

Transportation and Works.

SOME HON. MEMBERS:

Hear, hear!

MR. BRAZIL:

Thank you, Mr. Speaker.

have as our objective here to continue to support the ferry service in

Labrador and improve on it. We

went through an RFP process. An

RFP process is fairly simple.

You go to the market. You say

this is the type of service we would like provided and we also ask the

proponents, can you also give us other alternatives.

They came back very intensive, the first time we went to market for

something of this magnitude.

They

came back with a number of alternatives.

They came back with some very in-depth information.

We assessed it, we asked for an extension.

We went back to the market.

We did a short list. We

went back again. When we got

back and realized what we had in front of us, the costing, Mr. Speaker, was

not in the best interest from a financial point of view where we are right

now to be able to deliver on that service.

Mr.

Speaker, what we have done is gone back.

We are going to work with the people of Labrador and find a service

that is useable for them and we can fit within our financial abilities.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

Order, please!

The

hon. the Leader of the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

Well, I can assure you that the ferry service in Labrador is not adequate.

Your consultations with the people down there will be a waste of

time. They have told you over

and over again what is required on that service.

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

MR. BALL:

The Premier and Minister

of Finance should know this; it has been repeated.

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

MR. BALL:

Stop doing it over; give

the people of Labrador what they deserve.

Mr.

Speaker, the 2015 Budget Speech says that total investment for the purchase

of new ferries for Fogo-Change Islands and Bell Island is $126.7 million.

We know that the total cost of both vessels is $102 million.

ask the Premier: What is included in the other $24.7 million?

MR. SPEAKER:

The hon. the Minister of

Transportation and Works.

SOME HON. MEMBERS:

Hear, hear!

MR. BRAZIL:

Thank you, Mr. Speaker.

want to make it clear to the hon. Leader of the Opposition that any time we

consult with the general public, regardless of what issue it is, it is never

a waste of time, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

Order, please!

MR. BRAZIL:

It is very important for

us, and particularly me, as a minister, to assess exactly what

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

MR. BRAZIL:

people think is the

type of service we can provide, and outline to them exactly what our

financial restrictions may be, or our challenges, and see if they can be

part of not only outlining what should be done, but how they can be partners

in that, Mr. Speaker.

when we open up dialogue as an open government, we engage the general public

to come in and that is how we will solve the problems in this Province and

engage people by having a better service for the people of Labrador and

every other service we offer in this Province.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

Well, the people of Labrador, in all due respect, they understand what is

going on here. This is a delay

tactic by this government right now.

This has nothing to do you should know, Minister, after a

year-and-a-half of this RFP closing, what is required on that service.

There has been extensive dialogue at every single meeting that we

have had down there. They have

explained it to me; they have explained it to you.

It is a delay tactic.

Tell it for what it is.

SOME HON. MEMBERS:

Hear, hear!

MR. BALL:

Now, Mr. Speaker, I will

go back to the ferries on the Fogo-Change Islands, which was at $126.7

million.

question was: What is included on the $24.7 million?

Will the Premier or the minister explain what the $24.7 million is?

MR. SPEAKER:

The hon. the Minister of

Transportation and Works.

SOME HON. MEMBERS:

Hear, hear!

MR. BRAZIL:

Thank you, Mr. Speaker.

The

costing there is the contract with Damen Shipyards to build two

state-of-the-art vessels to provide service for the people of Fogo

Island-Change Islands and Bell Island, to add two very valuable assets to

the ferry service in this Province, and any other additional costs that are

relevant to delivering those ferries to the people of this Province.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of

the Official Opposition.

MR. BALL:

Thank you, Mr. Speaker.

Well, I will ask the minister : Does any of this money that is in this Budget include

or exclude the tariff on those vessels?

MR. SPEAKER:

The hon. the Minister of Transportation and Works.

SOME HON. MEMBERS:

Hear, hear!

MR. BRAZIL:

Mr. Speaker, this is a continued investment in supporting the people of our

Province, particularly those who live in isolated areas and need ferries as

their service.

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

MR. BRAZIL:

Built into that are all of the costs that we feel may or may not be

necessary to get the ferries here and be delivered on time to do that.

Built into that is the tariffs that may be added.

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

MR. BRAZIL:

We have engaged in a process with the federal government, Mr. Speaker, where

we have outlined exactly why we feel the tariffs should not be levied on

these vessels. As that process

unfolds, I will report back to the House of Assembly where we are with that.

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Leader of the Official

Opposition.

MR. BALL:

Thank you, Mr. Speaker.

Time and time

again the minister has stood in this House there were two options, of

course, two clear options that were available: one with the tariff and one

that would exclude the tariff.

Is there

anything that happened in terms of the dialogue or communication with the

federal government why you would put this in this year's Budget?

Have you heard back from the federal government?

Are they going to exclude the tariff or not?

MR. SPEAKER:

The hon. the Minister of

Transportation and Works.

SOME HON. MEMBERS:

Hear, hear!

MR. BRAZIL:

Thank you, Mr. Speaker.

First, I want

to clarify. When we assessed

which ferries we wanted to go with, which company we wanted to deal with, we

did not go with the least expensive; we did not go with the most expensive.

We went with something that was in the middle from a financial point

of view but was light years ahead of some of the other proponents based on

the principles of its professionalism, the type of asset we are going to

supply to the people of this Province, and the longevity we would get out of

that, Mr. Speaker. It was an

investment for the people of this Province.

What we have

done in this case, in our Budget line, is due diligence.

We want to build in to make sure that we are not caught off guard

with additional cost. We know

this was the best investment for the people of Newfoundland and Labrador,

and we have built that in.

Mr. Speaker,

after we go through the process on the tariffs, once we are successful on

that, then we will deal with the other ramifications around our ferry

services.

MR. SPEAKER:

Order, please!

MR. BRAZIL:

Thank you, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for Burgeo La

Poile.

MR. A. PARSONS:

Thank you, Mr. Speaker.

Budget 2015

announced consolidation of the administration of the four regional health

authorities and the Newfoundland and Labrador Centre for Health Information.

I ask the

minister: What is the anticipated cost savings of this consolidation?

MR. SPEAKER:

The hon. the Minister of Health and

Community Services.

SOME HON. MEMBERS:

Hear, hear!

MR. KENT:

Thank you, Mr. Speaker.

We did announce

the consolidation of a number of back-office administrative functions within

our four regional health authorities and the Newfoundland and Labrador

Centre for Health Information.

The estimated savings is between $18 million and $26 million after five

years, not to mention the other efficiencies that such a consolidation will

create.

want to allow our regional health authorities to focus on what they are

mandated to do, Mr. Speaker, which is delivering quality health care

services to the people of Newfoundland and Labrador.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Burgeo La Poile.

MR. A. PARSONS:

Mr. Speaker, this

government consolidated the administration of the regional health

authorities in 2005 to save money.

In 2007, the AG pointed out cost increased 16 per cent in the first

two years. Since that

consolidation the cost of administration and support has ballooned from 2005

at $371 million to $513 million in 2013, a 38 per cent increase.

ask the minister: How do you expect people to trust consolidation will not

waste money like it did the last time?

MR. SPEAKER:

The hon. the Minister of

Health and Community Services.

SOME HON. MEMBERS:

Hear, hear!

MR. KENT:

Mr. Speaker, we have a

five-year plan to achieve greater sustainability in the health care system

in our Province and part of that process involves us finding efficiencies,

finding better ways to do business.

We want to ensure that the regional health authorities can find

efficiency by being truly focused on what their core mandate is, delivering

health services and will consolidate those back office functions like

procurement, purchasing, information technology, information management,

human resources, finance, payroll, which will naturally create efficiencies,

Mr. Speaker.

have a Province of just over half a million people.

We have four regional health authorities for good reason, but we

believe we can find real savings by consolidating these functions.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Burgeo La Poile.

MR. A. PARSONS:

Mr. Speaker, the

school board consolidation was supposed to have savings, we have not seen

those. The last consolidation in

health was supposed to have savings, we did not see those, but I trust that

we will see them this time.

new standalone, shared service organization is being created to oversee the

administration of the health authorities and the Centre for Health

Information.

ask the minister: Where will this organization be physically located, and

how many positions will be cut in each of the regional health authorities?

MR. SPEAKER:

The hon. the Minister of

Health and Community Services.

SOME HON. MEMBERS:

Hear, hear!

MR. KENT:

Mr. Speaker, where exact

positions will be located is yet to be determined as we put the transition

plan in place. What I can tell

you is for each of the functions that I have previously mentioned there will

still be a need to have personnel working in the various regions of the

Province. That is going to be

important when you talk about finance or human resources or information

technology, just to give a few examples.

terms of potential savings in positons, a reduction between 180 and 230

full-time equivalent positions would be eliminated over the five-year

period, and we are going to do that largely through attrition, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Burgeo La Poile.

MR. A. PARSONS:

Mr. Speaker, the

Newfoundland and Labrador Centre for Health Information will now oversee

this new organization.

MR. KENT:

No, it will not.

MR. A. PARSONS:

It will not oversee,

the minister is saying.

This

centre was highlighted by the AG for ballooning salaries that went up 354

per cent over a five-year period, disregarding government policy around

hiring and compensation. Now

government let this go on for years without action, including the Minister

of Finance.

ask the minister: Have you gotten the centre to fall in line with the rest

of government on hiring and compensation after millions of taxpayer money

was misspent due to a lack of financial oversight by your government?

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Minister of

Health and Community Services.

SOME HON. MEMBERS:

Hear, hear!

MR. KENT:

Mr. Speaker, we have

taken steps in recent months to get salaries aligned at the Newfoundland and

Labrador Centre for Health Information.

I am pleased to report to this House that action has been taken and

progress continues.

terms of the efficiencies that will be created by this new organization, the

Centre for Health Information is not going to oversee this new entity, but

it will be a key part of the new shared services organization that we are

creating. Newfoundland and

Labrador Centre for Health Information is a valuable organization.

It will continue its focus on information management and analytics,

and it will continue to provide valuable support to the health system in

this Province.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Burgeo La Poile has time for a quick question Bay of Islands, I am

sorry.

The

hon. the Member for Bay of Islands, an even quicker question.

MR. JOYCE:

Thank you, Mr. Speaker.

ask the minister: Will you specifically tell the people what the $9.6

million budgeted for the Corner Brook hospital will be used on this year?

MR. SPEAKER:

The hon. the Minister of

Health and Community Services has time for a quick reply.

SOME HON. MEMBERS:

Hear, hear!

MR. KENT:

Mr. Speaker, I know I

only have a few seconds so I will tell you that those funds, the $9.6

million will be used exclusively towards the replacement of the hospital in

Corner Brook.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

Order, please!

The

hon. the Member for Signal Hill Quidi Vidi.

MS MICHAEL:

Thank you very much, Mr.

Speaker.

Government said last week that the fairest method of raising additional

revenue is through the HST because it is distributed across the entire

population. This is quite

different from government's decision to ease the tax burden on the highest

income earners between 2006 and 2010.

ask the Premier: Why raise the regressive HST now when it was not acceptable

to lower it when times were good?

MR. SPEAKER:

The hon. the Minister of

Finance and President of Treasury Board.

SOME HON. MEMBERS:

Hear, hear!

MR. WISEMAN:

Thank you, Mr. Speaker.

One

of the things that the member would also recognize when she read the

document last week was that we have made a huge change as well in the

application of the rebate and the HST credit.

We have now taken the income threshold some $15,000 a year to $30,000

a year.

The

number of people who will now be eligible to apply for that credit has more

than doubled I say, Mr. Speaker.

That number has more than doubled.

The amount of the credit has changed significantly.

It has gone from $40 to $300, $60 for the second adult in the family,

and $60 for each child in that family.

The

transition we have made here is, not only have we made an increase in the

HST itself, but we have made sure that we have protected the most vulnerable

in society. So those individuals

who are on that lower income spectrum have been protected as a result and

shielded from this change.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Signal Hill Quidi Vidi.

MS MICHAEL:

Mr. Speaker, government

is trying to reduce its deficit on the backs of lower and middle income

people. We now have the highest

HST in the country and the third lowest income tax rate for high income

earners.

ask the Premier: Would he please explain the rationale for this upside down,

regressive, and unfair tax regime?

MR. SPEAKER:

The hon. the Minister of

Finance.

SOME HON. MEMBERS:

Hear, hear!

MR. WISEMAN:

Mr. Speaker, just listen

to the member's comment. What

she has failed to point out in her

preamble is as a result of indexation,

this year any single individual who is making close to $19,000 a year,

$18,800-and-some-odd I think it is, will not pay any personal income tax in

Newfoundland and Labrador at all.

Families who have a combined income of just a little over $30,000

will not pay any personal income tax in Newfoundland and Labrador this year.

So,

I say, Mr. Speaker, our commitment to maintain that program, only introduced

back in 2005, combine that with the change we just made in the dollar amount

and the income threshold for the HST credit is a huge impact on those people

in society who are on the lower income level.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

St. John's East.

MR. MURPHY:

Mr. Speaker, this

government went back on a promise to drop the tax on heat and light to

consumers in the Province that they made in the 2012 Budget.

Heat is a necessity of life and costly to low-income earners and

seniors.

would like to know, Mr. Speaker, we would like to know on this side of the

House: Why did government reinstate the tax on heat and light in this

Budget?

MR. SPEAKER:

The hon. the Minister of

Finance.

SOME HON. MEMBERS:

Hear, hear!

MR. WISEMAN:

Thank you, Mr. Speaker.

The

member opposite would fully recognize, as the oil and gas price guru in the

Province, that in 2011 when we implemented this credit it was at a time when

oil was at its peak. We wanted

to make sure we shielded Newfoundlanders and Labradorians from the continued

rising price of oil to heat their homes.

That circumstance is no longer valid today, Mr. Speaker.

It was introduced just a few short years ago in 2011.

The price of oil has changed today, so the policy decision to do it

back then and the rationale for it, that rationale no longer exists today.

That is why we have made the adjustment.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

St. John's East.

MR. MURPHY:

Mr. Speaker, the Finance

Minister already knows in his own projections for oil prices that oil is

going to be going up again. He

should never have done it.

Mr.

Speaker, the price of gas and diesel will also go up by about 2.5 cents a

litre this January.

How

does government expect to keep the economy strong if they keep chipping away

at consumers' disposable income?

MR. SPEAKER:

The hon. the Minister of

Finance.

SOME HON. MEMBERS:

Hear, hear!

MR. WISEMAN:

Mr. Speaker, I just want

to point out for the member opposite and the people of Newfoundland and

Labrador, that we still have in place the rebate, the annual process of

making applications to the Province.

Attaching your oil bill or your utility bill to demonstrate that you

have had to heat your own home.

That program is still in place.

Some $65 million a year is invested in that program.

will continue to maintain that program for Newfoundlanders and Labradorians

because, Mr. Speaker, that particular program, and only that program,

protected and shielded the low-income families.

The other program, regardless of what your income was you got the

credit for that. So we believe

that those who are more vulnerable in society deserve the most attention and

the benefit of having the safety net protecting them, rather than the high

income earners.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

Order, please!

The

time for Oral Questions has expired.

Presenting Reports by Standing and Select Committees.

Tabling of Documents.

Notices of Motion.

Notices of Motion

MR. SPEAKER:

The hon. the Member for

Humber Valley.

MR. BALL:

Thank you, Mr. Speaker.

IT RESOLVED that the House of Assembly urge government to cancel intended

increase to the HST.

move this motion for Wednesday's PMR, and that is seconded by the Member for

Virginia Waters.

MR. SPEAKER:

The hon. the Opposition

House Leader.

MR. A. PARSONS:

As per the Leader of

the Opposition, and pursuant to the Standing Orders, the motion just read

will be the one debated on Wednesday.

Thank you.

MR. SPEAKER:

Further notices of

motion?

Answers to Questions for Which Notice has been Given.

Petitions.

Petitions

MR. SPEAKER:

The hon. the Member for

St. George's Stephenville East.

MR. REID:

Thank you, Mr. Speaker.

have a petition related to health care from residents of the Heatherton to

Highlands area.

the hon. House of Assembly of the Province of Newfoundland and Labrador in

Parliament assembled, the petition of the undersigned humbly sheweth:

WHEREAS there has not been a permanent doctor in the clinic at Jeffrey's for

almost a year; and

WHEREAS the absence of a permanent doctor is seriously compromising the

health care of the people who live in the Heatherton to Highlands area and

causing them undue hardship; and

WHEREAS the absence of a doctor or nurse practitioner in the area leaves

seniors without a consistency and quality of care which is necessary for

continued good health;

WHEREUPON the undersigned, your petitioners, humbly pray and call upon the

House of Assembly to urge the Government of Newfoundland and Labrador to

take action which will result in a permanent doctor or other arrangements to

improve the health care services in the Heatherton to Highlands areas.

Mr.

Speaker, this petition is from the Heatherton to Highlands area, but it also

addresses a situation for the whole district.

I think it is fair to say there is a health care crisis in the St.

George's, Stephenville area.

The

community of Jeffrey's and communities from Heatherton to Highlands have not

had a doctor now for over a year, nearly a year-and-a-half, Mr. Speaker.

It is causing serious problems in terms of health care.

Elderly people have had to travel long distances to get to see a

doctor in Stephenville at the emergency there.

People have not been receiving their health tests on a regular basis,

blood work and things like that.

So there are some serious problems caused by this lack of a doctor.

Also, in St. George's a similar situation exists.

They have been without a doctor since November of last year, Mr.

Speaker. It is a situation that

continues to get worse in the area.

What is happening is the people who cannot get a doctor at their own

clinics are going to the outpatients in Stephenville which is causing a big

back up and longer wait times for people there.

It is not uncommon for people in that area to have to travel long

distances, wait all day in a waiting room to see a doctor, even for simple

things like to get a prescription refilled.

Mr.

Speaker, this is not a budgetary matter.

I am not asking and the people who signed this petition are not

asking for new money to put a doctor in place.

This is money that has been budgeted.

It is a recruiting issue.

have talked to the Minister of Health.

I have asked him to get personally involved in this situation.

I have talked to people at Western Health and asked them to get

personally involved in this situation as well.

The services are not good, it is a crisis situation, and I ask the

government to do something about this.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

St. John's East.

MR. MURPHY:

Thank you, Mr. Speaker.

the hon. House of Assembly of the Province of Newfoundland and Labrador in

Parliament assembled, the petition of the undersigned residents of

Newfoundland and Labrador humbly sheweth:

WHEREAS Tordon 101 contains the chemicals 2, 4-D and Picloram; and

WHEREAS the chemical Picloram is a known cancer causing carcinogen; and

WHEREAS the provincial government has banned the cosmetic use of the

pesticide 2, 4-D; and

WHEREAS safer alternatives are available to the provincial government for

brush clearing such as manual labour, alternative competitive seeding

methods, and/or the mechanical removal of brush; and

WHEREAS the provincial government is responsible for ensuring the safety and

well-being of its citizens;

WHEREUPON the undersigned, your petitioners, humbly pray and call upon the

House of Assembly to urge government to cease the use of chemicals covered

under its own cosmetic pesticide ban and begin using safer methods of brush

clearance that will not place its citizens in harm's way.

in duty bound, your petitioners will ever pray.

Mr.

Speaker, I am pleased to present this petition in the House today.

Signatories come from St. John's, Paradise, and other areas of the

Province. I have to make special

note to government that rather than using chemicals and adding not only to

your environmental liabilities in this Province and there is still a

question as regards to how much environmental liabilities are actually

included within the Budget or not the question has to be asked upon

government right now if it is really prudent for them to be adding to the

health burdens in this Province by dumping carcinogenic chemicals that are

going to be damaging the environment and causing issues for us as well into

the environment and accounting for that on their own health care bottom

line.

Mr.

Speaker, it does not make any sense why we would take such a step.

Instead, what government should be doing right now is thinking about

this as well on an economic perspective a job creator too at the same

time. Times are hard.

We are in a recession, contrary to what the Finance Minister would

think. These are recessionary

times according to economists.

It is time to put people to work in this Province, particularly when it

comes to green programming.

is something that we can address right off the bat, Mr. Speaker.

We can add a level of taxation back to provincial coffers by

employing people, number one, to clear brush from the sides of the road.

Next to having safer highways, Mr. Speaker, this should also be

looked at as a job creator as well.

Mr.

Speaker, I am pleased to table this again.

Besides the known health concerns here, government should be looking

at this as an opportunity. I do

not see mechanical brush clearing within the Budget.

I have no doubt that government right now is strictly focused on

using chemicals to keep roadside brush down, but again they should

reconsider simply on an economic perspective.

Thank you very much.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Member for

Conception Bay South.

MR. HILLIER:

Thank you, Mr. Speaker.

petition to the hon. House of Assembly of the Province of Newfoundland and

Labrador in Parliament assembled, the petition of the undersigned residents

of Newfoundland and Labrador humbly sheweth:

WHEREAS the Town of Conception Bay South is the second largest municipality

in the Province; and

WHEREAS recent dangerous incidents on community streets have highlighted

concerns of high speed and inadequate traffic control in Conception Bay

South; and

WHEREAS residents, organized groups, and the town continue to raise

awareness about pedestrian safety along main streets and the lack of police

presence in the town; and

WHEREAS residents are increasingly concerned about safety in their community

and are feeling insecure in their streets and in their homes;

We,

the undersigned, petition the House of Assembly to urge government to review

the level of policing in Conception Bay South with an objective of

increasing policing services and improving public safety.

Mr.

Speaker, this is the second time I have brought this petition forward.

As I said before, in no way am I indicating that there is any concern

about the work that RNC officers do in the Town of Conception Bay South.

They continually present themselves in a very professional manner in

all the work that they do.

Mr.

Speaker, the concern here, and it seems to be the issue among residents, is

the degree of policing and the perception of residents and the visibility in

the community. The Premier is

fully aware of these issues in Conception Bay South as a former member of

the RNC. He was a ward

councillor in Conception Bay South, and I know that the Town of Conception

Bay South has kept him in the loop on these issues as time has gone on.

Mr.

Speaker, two issues that is involved in this issue of policing: one is the

feeling of insecurity in neighbourhoods and I pick this up as I go door to

door and, quite often, among the seniors in our community.

Some of them are very forthcoming and talk about not feeling

comfortable in their neighbourhoods;

whereas others are not so forthcoming.

The other indicator of feelings of insecurity is the fact that any

number of homes in any number of neighbourhoods has the little sign on the

house or on the patio saying that it is being protected by a private

security firm. Mr. Speaker, that

is money that individual residents are paying to ensure their own security.

The

other issue, Mr. Speaker, is the issue of speed and unsafe driving in our

neighbourhoods. There is a major

concern in the district for speeding and dangerous driving: Route 60,

Foxtrap Access Road, our provincial highways through the town.

There are eight schools.

Mr.

Speaker, the Minister of Justice will tell us that the philosophy of our

local police (inaudible)

MR. SPEAKER:

Order, please!

remind the member his time is expired.

MR. HILLIER:

Thank you, Mr. Speaker.

MR. SPEAKER:

Orders of the Day.

Orders of the Day

MR. SPEAKER:

The hon. the Government

House Leader.

MR. KING:

Thank you, Mr. Speaker.

this time I call from the Order Paper, Motion 1, to move that this House

approves in general the budgetary policy of the government: the Budget

Speech.

MR. SPEAKER:

We are debating Motion 1,

the Budget Speech.

The

hon. the Member for Virginia Waters.

SOME HON. MEMBERS:

Hear, hear!

MS C. BENNETT:

Thank you, Mr.

Speaker.

Mr.

Speaker, I listened to Question Period intensely today, as I always do, and

I just wanted to let the Minister of Finance know that I have no intention

of cherry-picking this Budget. I

have every intention of talking about every single line in this Budget.

SOME HON. MEMBERS:

Hear, hear!

MS C. BENNETT:

Mr. Speaker, last

Thursday the people of the Province and the hon. members of this House

witnessed the Minister of Finance stand in his place and admit to his

government's complete failure to manage the resources entrusted to them

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

MS C. BENNETT:

by the people of

Newfoundland and Labrador. It

was a sad spectacle to sit here and listen to the litany of lost opportunity

and misplaced priorities that have set our Province back decades.

The

minister is fond of making references to the 1990s, pre-oil.

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

MS C. BENNETT:

Really, we have to

look even further back. Not

since the dark days of the 1920s and the 1930s have we seen a government in

Newfoundland and Labrador be such an abject failure at financial management,

a primary responsibility for any government.

Mr. Speaker, 14,000 words, perhaps one of the longest Budget Speeches

in our Province's history, for a minister and a government who like to hear

themselves talk, and who clearly have started to even believe their own

spin.

The

minister is spinning a yarn, a story of glory and riches in an attempt to

fool the people of Newfoundland and Labrador into believing two things:

First, that they, the government, have everything under control and have a

plan to deal with a crisis they created; and second, that they had no

control over the financial mess we find ourselves in, that we have all been

victims of a global economic downturn.

Mr. Speaker, nothing can be further from the truth.

Government has not done anything to demonstrate that they have the capacity

and the financial literacy to manage any financial plan, and certainly not

the one that government laid out in this Budget.

Despite the rhetoric, the essential problem of poor planning and

mismanagement, as identified by the Auditor General and others, remains.

Their solution? They want the

people of the Province to give them a free pass to deal with the crisis they

created. Mr. Speaker, I have

great confidence in the people of Newfoundland and Labrador to see this for

what it is: lack of economic and fiscal leadership.

Their plan is to take more from those who can afford it least.

Take more to fund their re-election campaign.

Take more good money after bad to be squandered and lost.

Mr.

Speaker, after seventeen straight months of job losses, this Budget does

nothing to help families, nothing to help the unemployed or seniors.

In fact, it makes them worse off.

During the time I have been given, I plan to expose the minister and the

government and demonstrate the truth about our Province's finances and this

government's role in creating this financial crisis and what it is that

needs to be done differently.

Government talks about the new Premier as having a renewed vision, that we

were ready to be bold and innovative.

Mr. Speaker, I would remind the members opposite that less than 350

people picked this Premier, and if now is the time they are going to be bold

and innovative, quite frankly, it is too little too late.

Now

they say they are ready to make the decisions.

Now they say they are ready to do the things that need to be done.

Well, Mr. Speaker, seven Finance ministers in four years; eight

ministers responsible for economic development in seven years; six ministers

for workforce development in seven years; seven Ministers of Transportation

and Works in seven years, and, Mr. Speaker, worst of all of this, fourteen

Health ministers, fourteen in twelve years.

Clearly, there is an absence of leadership in departments, which is

impacting not only their ability to plan and manage the affairs of the

Province but it is also impacting on the culture of the public service,

driving down morale, increasing stress, and lowering productivity of our

very, very valuable public sector.

will take lots of opportunity to speak about this Budget, and it is

important for people of the Province to understand the extent of this

financial mess. How Tories

mismanaged us into it, and, Mr. Speaker, what Liberals will do to get us out

of it. The Liberal solution goes

well beyond the scope of the Tories tunnel vision.

Mr.

Speaker, this government will let you believe there are only two options,

tax and borrow. That is what

this Budget is a reflection of.

It is a reflection of tax and borrow.

Liberals take a more strategic view because there is a need to reduce the

Tory waste and get our Province's finances under control.

We do not support an increase in HST.

This will only stunt our economy and make it more difficult for

people to build a life here, to raise their kids here, and it will leave the

people of this Province paying for the Tories mismanagement.

Liberals would better manage expenses and, most importantly, grow the

economy. If necessary, we would

borrow over increasing taxes so we do not risk the revenue side of the

ledger at a time when our economy is contracting.

Quite frankly, if the minister cannot understand that, then perhaps

he needs to brush up on his math skills after all.

Today, our economy is struggling.

All indicators are pointing in the wrong direction.

Mr. Speaker, the Province cannot risk another Tory misstep or do

over.

Economic analysts may have differing opinions about whether our Province is

in a recession or not, but there is one thing we know for sure, that this

side of the House and I believe that side of the House as well sees

every single day in our communities, and that is the effects economic change

is having on the people who are in our districts.

Whether it is the people in Lab West who lost their jobs as a result

of the mining commodity pricing, whether it is the people on the West Coast

who are struggling to find opportunities where this government has failed to

create any, or whether it is on the South Coast where a lack of

entrepreneurs unable to come in and replace retiring entrepreneurs and buy

their businesses creates a contraction in our economy.

This government has failed to recognize the struggles that people in

our Province are having as a result of the economy that their decisions are

part of creating.

Mr.

Speaker, led by the Leader of the Official Opposition, this team of Liberal

entrepreneurs, a team of energetic and passionate leaders in our Province

who are eager to get to work and roll up our sleeves and put our business

acumen to work to create opportunities for people across our Province, not

just in the oil industry but in every single industry that is important to

the growth of our economy.

Mr.

Speaker, some on the other side might assume that my tone today means that I

am not optimistic. Quite

frankly, that would not be the case.

I am very optimistic about the future of our Province, but first and

foremost, we must have our economic policy better managed to get there.

I am

so excited that the minister on the opposite side is excited that I am going

to have four hours to make this presentation.

I look forward to him sitting there for the whole time.

SOME HON. MEMBERS:

Hear, hear!

MS C. BENNETT:

Mr. Speaker, let me

say again, I am very optimistic about our future, but the importance of

clear and well-thought-out economic policy is critical at this time in our

history. Quite frankly, because

Liberals are more experienced managers, I think we can get Newfoundland and

Labrador through this 'Toryness.'

Here

is what good managers do, Mr. Speaker.

Good managers and good leaders start by executing on plans.

They do not just create the plans; they execute them.

They make those plans based on using accurate financial facts, and

they hold themselves accountable to delivering outcomes and getting results.

Mr.

Speaker, that is what has been missing. There

are lots and lots and lots of plans this government has started and I look

forward to listing them all in the next couple of hours.

Let's be clear; a plan is not worth the paper it is written on if it

is not based in fact, if it is not accepting the reality at the time the

plan is written, or more importantly, if we do not hold ourselves

accountable to delivering on targeted outcomes.

Mr.

Speaker, I sat in this House earlier last month as we were presented a

strategic plan for the Department of Industry I am sorry; I forget the

name of it now.

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

MS C. BENNETT:

The Department of

Business, Tourism, Culture and Rural Development oh sorry, not Justice and

Public Safety; Business, Tourism, Culture and Rural Development.

saw a strategic plan for the period of 2014-2017 presented in 2015.

Mr. Speaker, that does not speak to a planning process that is

founded in performance. Because,

quite frankly, without the outcomes and without holding ourselves to the

outcomes and planning, the risk is, right now during these economic times,

we just will not get it right.

We will continue to see a government that makes mistakes.

Mr.

Speaker, it is time for better management in the Province.

So we address the challenges we are facing today honestly and finally

finally reach our full potential.

the minister's Budget Speech, which I spent many hours over the last three

days reviewing, the minister spoke under the heading of strategic spending

and sustained growth. Please

indulge me, Mr. Speaker, as I quote from the Budget Speech, and I am going

to refer back to this.

The

minister began his speech by saying, Through wealth generated primarily by

our offshore oil sector that is right; most of the revenue they have

had to deal with, to spend with, has come from the oil sector

Newfoundland and Labrador became a 'have' province for the first time since

Confederation. Applying these

new found revenues strategically to sustained investments in health care,

education, infrastructure, debt reduction and new opportunities, we have

built a rock-solid foundation sturdy enough to sustain growth for

generations to come. Mr.

Speaker, that was page 1 of his speech.

Mr.

Speaker, strategic: There has been no strategy, quite frankly, other than

spend. This Budget is a shell

game and it is designed to deceive the public into thinking that this

government has the fiscal crisis that they created under control.

Sustained: Well, let's talk about what really is sustained.

Historic deficits are not the definition of sustainable spending.

This government has presided over six deficits in twelve years and

are now forecasting three more.

Let

us talk about debt reduction. In

two short years the government has all but destroyed any benefits they may

have gained from debt reduction in previous years, debt reduction that only

came about because of unexpected windfalls from oil, not from any strategic

plan to reduce the Budget.

Sustained growth for generations to come that is what he said: sustained

growth. Clearly, the minister is

working from a different definition of growth than most of the western

world. How do you defend seven

years of decline as sustained growth?

Mr.

Speaker, one thing is clear from the feedback people are giving me; this

government is too busy with their own key message track, trying to spin a

yarn, rather than spending time working on creating meaningful solutions.

They want the people of the Province to believe that doing the same

thing over and over again will somehow yield different results.

Mr.

Speaker, later on in his speech the minister moves into a

section where he

says the time has come to raise the pillars of economic durability enough to

weather any storm. Already, we

are weathering a storm that would be crushing us had we not made the choices

that transformed this Province over the past ten years.

Durable economy this government ignored the economy with a narrow-minded

focus on oil and gas while other industries faltered and failed.

Is the minister talking about the durability of the pulp industry?

He should speak to the former mill workers in Grand Falls.

He should speak to the former workers in Stephenville.

he talking about the durability of the mining industry?

I beg him to speak to the out-of-work miners in Wabush; the single

mother who is trained to be a skilled tradesperson, she has four children,

she has lost her job, has a mortgage on her house, has a car payment, and is

terrified about what her future will bring, not only for her but, more

importantly, for her kids. What

pillars.

What

about the Corner Brook Pulp and Paper facility that has seen a continuing

shrinkage in their workforce?

Mr. Speaker, this government's single focus on one industry failed to

recognize the importance of all of the other industries in our Province.

That is what people told me last fall when I spent weeks travelling

this Province talking to people about what they are saying about our

economy. I can assure the

members opposite that every person who gave me feedback on what this

government did not do on our economy, I promised them I would say that in

this House of Assembly. I intend

to use every minute I have to make sure that those messages are heard.

SOME HON. MEMBERS:

Hear, hear!

MS C. BENNETT:

Mr. Speaker, the

minister referred to past choices.

What choices? The only

choice this government made, and the only choice they made in this Budget is

to tax and spend and borrow. In

this Budget they are asking permission from this House to continue on that

path, ignoring the need for any real plan to deal with our fiscal crisis.

Mr.

Speaker, the minister talked about in his speech the choices being what is

in the best interest of Newfoundlanders and Labradorians.

Mr. Speaker, I can tell you that that lady in Lab West and the people

I spoke to at the doors in St. John's West this past Saturday, they do not

believe this government has made the decisions in the best interest of them.

Mr.

Speaker, the minister went on to say, on page two of the document, In this

first Budget of our new Premier's tenure, we also happen to be facing a

particular challenge that, a year ago, no one saw coming.

I believe he said, The precipitous, protracted and unpredictable

decline in the global market price of oil and the parallel drop in the

global market prices of mined commodities such as iron ore have shaken

economies from Canada to Australia.

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER:

Order, please!

MS C. BENNETT:

Mr. Speaker, when I

heard the minister say that on Thursday, I was dumbstruck.

I am not sure any financial analyst or financial planner would advise

anybody on that side of the House or anybody on this side of the House,

for that matter that oil price is a dependable number.

This government saw record oil prices.

If they had looked at the history of oil prices over decades they

would have realized the risk they were taking with money that was not theirs

to spend. That was money that

belonged to the people of Newfoundland and Labrador.

The

minister said no one saw this coming.

Really? Because everyone

else did. If the Premier did not

and the minister did not, then we have a problem.

Quite frankly, we have a problem much more serious than lack of

planning if this government did not see the oil price coming.

Their own report in 2012 forecast the oil price that was happening

last year. Their own report that

they commissioned and paid for showed the oil price that is reflective in

this Budget, and reflective of the results of last year.

Mr.

Speaker, this is a crisis of bad management.

More than half of last year's deficit let's be clear on that.

More than half of the one billion dollar deficit from last year was

actually planned. It was not by

accident, it was not because commodity prices dropped.

It was planned. They came

into this House of Assembly last year, presented a Budget that planned for

60 per cent of the deficit they now have.

That is not a result of falling oil prices.

For

ten years we have listened to members opposite crow about all they have done

to bring the good times to Newfoundland and Labrador.

Mr. Speaker, they would have us believe that they actually put the

oil in the ground. I have to say

that I was sitting last night going over some of these documents and my son

said: mom, don't they know about geology?

Mr.

Speaker, the people of the Province know the difference.

They know the Tories did not put the oil in the ground.

Quite frankly, they were not the ones to take it out of there either.

If you believe their spin, the wealth that has been generated over

the past ten years is all their doing, and only their doing.

has nothing to do with the development agreements of previous Liberal

governments, nothing to do with work that previous Liberal Administrations

accomplished. It certainly

ignores, quite frankly, I think with great disrespect, that nothing would

have been done with the oil if there had not been investment from private

business and the expertise in that business and the expertise in the

industry.

Mr.

Speaker, I will go on to say that it is disrespectful to not acknowledge and

to continue to pontificate about their work without recognizing that

thousands of Newfoundlanders and Labradorians have been involved in this

industry, some who have given up their life to go work offshore.

Those are the drivers of the oil industry, the people who work in the

industry, the people who make the investments, and the people who had the

vision to create the development agreements in the first place.

SOME HON. MEMBERS:

Hear, hear!

MS C. BENNETT:

Mr. Speaker, it had

nothing to do with the fact that they forget Mother Nature incubating carbon

for an eternity; yet, oil is all their doing.

They spun the yarn Mr. Speaker, they spun the yarn.

AN HON. MEMBER:

(Inaudible).

MS C. BENNETT:

Mr. Speaker, I

understand that the Minister of Health on the opposite side is riveted by

the comments that I am making and I am certainly appreciative of the much

mentoring he has given me in this House over the last year and I look

forward to continuing to showing off those skills in the next four hours.

Mr.

Speaker, they spun this yarn so that we would believe that they and only

they had the right to determine how and where the revenue from that resource

was spent. Now the house of

cards has collapsed it is collapsed and they want us to believe that

they had nothing to do with it nothing to do with it.

Mr.

Speaker, I have to remind the members opposite that Newfoundland and

Labrador has been a commodities-driven economy since John Cabot.

Fishing, forestry, mining in every industry we have seen the impact

of fluctuating prices before.

the absence of real data, there should always be an understanding that a

certain amount of our revenues, that a certain amount of the critical

dollars that this Province brings in, would be at risk particularly in oil

and gas.

Mr.

Speaker, the failure of this government is not that it could not predict an

exact price of oil that is not the failure.

It is not their failure to predict the exact price of oil; it is

their failure to assess, to plan, and to manage the associated risk with oil

prices. That is this

government's failure. It is not

the failure of the people of the Province of Newfoundland and Labrador.

It is not the failure of the people in this House of Assembly.

It is theirs and theirs alone.

SOME HON. MEMBERS:

Hear, hear!

MS C. BENNETT:

Mr. Speaker, the

media and others have made much of one particular line in the Budget, which

I think speaks volumes as to where this government's priorities lay.

The minister said, We certainly look forward to hearing the choices

of those who will inevitably criticize ours.

But it is not enough to simply criticize our budget choices as he

stomped his feet or criticize the financial position of the province.

Our detractors must outline their alternatives.

Mr.

It was not to put forward a comprehensive economic agenda to manage

the people's money. It is a pure

and simple political tool.

heard that at the doors when I went door to door for the next member of St.

John's West, Siobhan Coady. I

flag the minister, your constituents, the Minister of they move so much I

can hardly remember where they are.

The Minister of Environment and Conservation, I flag for him, this is

what his constituents are telling me.

They are fed up with the games of this government, the game that

these statements, quite frankly, expose.

At a

time when families are losing jobs, incomes are declining, seniors' expense

is growing, this government chose to neglect their responsibilities and turn

yet another critical obligation to set forth a responsible fiscal plan into

gamesmanship, just like they are doing today while they heckle me while I

reply to this Budget. That is

exactly what the member opposite is doing.

tell the minister, yes, sometimes it is enough to simply criticize because

sometimes that is all they deserve, but, Mr. Speaker, we will do more than

that.

MR. KING:

(Inaudible).

MS C. BENNETT:

You are right.

I remind the House Leader on the opposite side, you are absolutely

right. The people of the

Province deserve better. We have

for months put forward the ideas and the priorities of our party for this

Province. As a government, we

will build the financial plan needed to make those priorities a reality and

truly sustainable.

while the minister can continue to be concerned about his detractors, he may

want to step back and take a minute to think about his responsibility and

how as a minister he and his government have failed to meet their basic

responsibilities to the people of the Province.

Finally, Mr. Speaker, in the minister's opening

preamble, the minister was

trying desperately to minimize the true nature of the mess they have

created, calling the challenges short-term.

The short-term challenges are just that short-term; temporary;

transitory; finite in duration.

That is a lot of words to define short-term.

We will get through them, just as we have gotten through the

challenges of the past. Recall

the global economic downturn of 2009.

We endured it, we survived it and we are stronger because of how we

managed it.

Mr.

Speaker, I found this statement to be particularly ridiculous.

In 2009 this government continues to refer to the global

SOME HON. MEMBERS:

Oh, oh!

MR. SPEAKER (Littlejohn):

Order, please!

MS C. BENNETT:

Thank you.

Mr.

Speaker, this government continues to refer to the global economic crisis of

2009, and Newfoundland and Labrador magically, through what they say was

their good planning, riding out the economic downturn of 2009.

Well, Mr. Speaker, many businesses, many people in this Province, as

this government was talking about the Newfoundland and Labrador recession at

that time, people on the streets in certain parts of our Province were

saying what recession; government misread the statistics.

Quite frankly, Newfoundland and Labrador was one of the few

jurisdictions in North America that was experiencing an economic growth

because of oil. You rode the

boom, there was no management of any fiscal downturn, except for those who

are forgotten about in rural Newfoundland.

Short-term challenges: This is not a short-term challenge.

Seven years of deficit seven years of deficit?

Five years of GDP declines five years.

Seventeen months of job losses, with, I might add, five more years to

come. Five more years of job

losses to come; that is what this government is proud of?

Seven more years of unemployment over 12 per cent; that is what they

are proud of?

Mr.

Speaker, that is not short term.

That is not only a fiscal crisis in the management of government's money and

government's affairs, that is an economic issue that we as a Province have

to band together and deal with.

We cannot let Newfoundlanders and Labradorians suffer because of this

government's failure to recognize its own economic indicators.

Mr.

Speaker, the Minister of Finance spoke about eight long-term principles and

how those eight long-term principles were the keys to the visionary plan

that this government has. I

would like to spend the next few minutes speaking about those eight

long-term principles.

The

first one, We Will Cultivate a Culture of Cost Management.

They will cultivate.

Starting now they are going to cultivate a culture of cost management.

Twelve years, and now they are going to cultivate a culture of cost

management.

went on to say: our first new approach the first new thing they were going

to do is launch a process to overhaul our existing program and service

delivery model in order to contain expenditure growth.

It is on page 3.

Mr.

Speaker, people of the Province are begging the question, what have you been

doing for twelve years if you have not been creating a culture of cost

management? The fact that the

words new approach were used that is a stunning admission from a

government that had the resources that this government had.

have news for the minister, this is nothing new.

There is nothing new about cost management.

Quite frankly, it is a concept that is long overdue.

It is a sad indictment on this government that after twelve years and

billions of dollars wasted

that they are only now even talking about cost management.

Mr. Speaker, I

thought for the members opposite I would remind them of just one example.

This past year the Auditor General reviewed the use of government

vehicles. Let's just hear what

the Auditor General had to say, The Department of Transportation and Works

(the Department) is responsible for monitoring and managing Government's

light vehicle fleet for all departments.

To fulfill this mandate, the Department created the Vehicle Fleet

Management Branch they created a branch, that is great, that sounds good

under the Highway Maintenance and Support Division.

The department

maintains an Equipment Management System, EMS it is called.

The Auditor General's review focused on six major departmental users

of the EMS system: Transportation and Works; Natural Resources; Justice and

Public Safety; Environment and Conservation; Service NL; and Fisheries and

Aquaculture.

What did the

Auditor General find about the use of government vehicles?

Well, the Vehicle Fleet Monitoring was reviewed and the branch was

not maintaining an accurate or up to date inventory of vehicles.

AN HON. MEMBER:

(Inaudible).

MS C. BENNETT:

No.

No inventory list. As a

result, inventory reports that were generated by the EMS were not completed

or accurate. It is amazing.

He went on to

say, if you look at fuel consumption related to the vehicles that were used.

No analysis is made of fuel consumption for Government vehicles by

the Branch. No analysis.

What he found was 8 instances of diesel fuel eight, diesel fuel

purchased for vehicles with gasoline engines.

For example, in one instance 1,320 litres of diesel was purchased for

$1,795 when records indicated that the vehicle was gasoline.

Now,

Mr. Speaker, let me be clear.

There may well be a good reason why a government employee needed to buy

diesel. They may have been

driving a pickup truck. Maybe

they were bringing diesel somewhere else.

Maybe they had tanks in the back of their car or the back of the

truck that they filled up with diesel.

There are logical reasons for this.

What the issue is, the Auditor General said nobody knew why, and that

is the problem. That is the

problem.

went on to say in Reporting and Accountability, The personal use of

Government vehicles is not monitored and reported in accordance with

policy. There is a policy in

place. Government has a policy,

but government does not have a process to monitor their own policy.

Now

I have to tell you, twelve years ago when Chief Justice Green came into this

House of Assembly to look at some things, there were definitely some control

issues that were identified. Mr.

Speaker, these are symptoms of those problems.

Government does not have a process in place to monitor whether a personal

benefit is being conferred on employees who are authorized to park a

Government vehicle at their personal residence.

The policy manual for this has not been updated since 2003.

An update was supposed to happen in 2006 but never was approved.

conclusion, the Auditor General went on to say specifically about the

Department of Justice and Public Safety that it had the highest operating

cost as a percentage of capital cost at 40.2 %.

Just on the vehicles.

Mr.

Speaker, this new approach to cultivate a culture of cost management is an

expectation of the people of the Province.

People of the Province expect these items to be followed up on by

their government. They expect

policies and processes in place to protect those public sector employees who

want to follow the rules and to make sure that the taxpayers' money is well

stewarded. That is what they

expect twelve years, Mr. Speaker.

Then, Mr. Speaker, there is the infamous and well known throughout the

business community in Newfoundland and Labrador, it is referred to, it is

budgeted for, it is jokingly talked about by sales reps who are trying to

meet their sales quotas in their private businesses, and that is the

phenomenon commonly referred to as March madness.

It is not basketball; it is year-end.

That

March madness, this government has allowed that to be created.

Its symptom is based foundationally in a budgeting process.

If public sector employees were empowered and recognized, and I would

argue, rewarded for finding efficiencies, Mr. Speaker, they would be rushing

out to spend that money that they are afraid to lose in next year's Budget.

Part of the budgeting process, this

part is a clear example of how

this government has failed for a decade to be a good steward of the public

purse. March madness is one of

those examples.

The

message to the people of the Province, quite frankly, the message from this

Budget, the message from this pillar, is really simple.

I think this government is saying we know we are inefficient and we

cannot manage it. So we need to

get consultants to come in and we need to redo things because we have not

been able to manage it after twelve years.

Mr.

Speaker, there is nothing more ironic than sitting in the lock-up the other

day and pulling this document out.

It was the document entitled

Solid Investments in Provincial Infrastructure .

There is nothing more blatant that demonstrates the lack of a culture

of cost management than this book.

Quite frankly, this document is a piece of political propaganda

designed to educate the uneducated electorate of the great value of the Tory

reign. It is interesting.

AN HON. MEMBER:

Say that again.

MS C. BENNETT:

Oh, absolutely.

The member opposite asked me to say it again.

This book is nothing more than a blatant attempt, a piece of

political propaganda, designed to educate the uneducated electorate their

words of the great value of the Tory reign.

Mr.

Speaker, this book outlines dozens of capital investments.

I do not see the Confederation Building in here.

AN HON. MEMBER:

Is the Corner Brook

hospital in there?

MS C. BENNETT:

The Corner Brook

hospital is not in here.

AN HON. MEMBER:

Is the Waterford in

there?

MS C. BENNETT:

The Waterford

Hospital is not in here; long-term care is not in here.

I am

going to come back to this book.

AN HON. MEMBER:

A new penitentiary?

MS C. BENNETT:

No new penitentiary.

I am

going to come back to that book because there are some really interesting

things about what government said they were going to do and then what they

actually did.

Mr.

Speaker, quite frankly, this government's paternalistic view is wearing very

thin with many people in our Province.

This government seems to forget government is not here to convince

people; it is here to represent people.

Government is not here to convince people; it is here to represent

people.

SOME HON. MEMBERS:

Hear, hear!

MS C. BENNETT:

The results will

speak for themselves.

Spending taxpayers' money to convince people is the most brazen example of

the lack of a culture of cost management there is.

Taxpayers' money printed that book.

The

current financial crisis facing the government is not the result of oil

prices. It is the result of a

failure to plan in the past.

They have done nothing to manage costs, even over last year.

When we talked about this in the lock-up, when we realized these

numbers, this is a stunning admission from a government who says they are

now going to have a new approach of cost management.

Mr. Speaker, this Budget actually budgets 1.7 per cent more money

than last year more money. Mr.

Speaker, this government has only been interested in redacting, not

reducing.

Mr.

Speaker, let's do the math; $20 billion in oil royalties, $5 billion in

Atlantic Accord money, and an increase in debt by $5 billion.

So that is twenty, plus five, plus five; that is thirty.

That is $30 billion, Mr. Speaker.

The minister has said in his own document that government spent $6

billion on infrastructure and $3.1 billion on Nalcor.

That is $9.1 billion; $30 billion and $9.1 billion, I ask the

minister: Where is the rest?

Now

they want you to forget about that and give them a free pass to deal with

the crisis they created. I have

a lot of confidence in the people of the Province to see this for what it

is: lack of economic and fiscal leadership.

Mr.

Speaker, the cancelled Labrador ferry contract is another example of how

their failure to plan is having a real impact on people.

As my colleague for Cartwright L'Anse au Clair noted last week:

After a full year of delays and broken promises, the contract for the new

Labrador ferry has been cancelled indefinitely, ignoring the expectations

and the needs of the people on the Coast of Labrador and leading them on

with false promises.

Mr.

Speaker, in December 2003, the minister announced that the RFP I add that

the minister at the time was the Member for Labrador West.

The Member for Labrador West stood in this House and said he was

announcing an RFP to secure a single contractor to provide comprehensive

marine services to Labrador over a fifteen-year term.

The deadline for receipt of the proposals was April 2014.

The

deadline was extended by this government by another thirty days.

In May, it was extended to June 16.

June 16, 2014 that RFP closed and it was not until November that a

proposed short list was made up of two bidders.

January of this year, my colleague asked the minister if there was a

violation of the agreement of the Labrador Lands Claims Agreement as a

result of the RFP.

Mr.

Speaker, in March of 2015, the minister contacted bidders of the RFP

requesting another extension until June of 2015.

Then, the minister indicated that the start-up date of 2016 no longer

seemed attainable. Well, do you

think? They spent several years

trying to figure out the RFP. Of

course, it is not going to be attainable.

Then, last week the minister announced that the RFP was no longer on the

table; that the ferry that the at-the-time minister, now the Member for Lab

West, had promised the people of Labrador was no longer on the table.

Mr. Speaker, all of the energy, all of the public sector resources,

all of the discussions around that decision and process speak to this

government's inability to understand the culture of cost management.

In a

2013 report, Newfoundland and Labrador ranked seventh, along with

Saskatchewan and Quebec. All of

them received D+ in terms of reporting practices for budgets and public

accounts. Newfoundland's main

issues at the time were that it presents multiple expenditure and revenue

categories in its Budget Estimates as opposed to a simple

summary of

revenues and expenses.

Also, as I said before, it is not easy to compare the estimates to what

government plans to spend with the actuals report in public accounting.

When you factor in the number of times this government has changed

government responsibilities for ministers and moved buckets of money around

for accountability to ministers that makes the ability to be transparent

about the spending of the Province even more difficult.

Newfoundland and Labrador is the only jurisdiction in Canada to undershoot

its Budget Estimates over the past ten years.

Just think about that.

For ten years this government is the only government to undershoot its

Estimates. Now some would say,

well, that is a great job. They

must be wheeling back in the middle of the year and trying to look for some

savings.

The

reality is that in Estimate discussions year after year after year what we

realize the answers are is the government is not able to get the programs

running and get the money out the door.

It cannot deliver on the promises.

It is a systemic problem of not being able to execute the plans they

put in place, even their own Budget plans.

Now,

Mr. Speaker, they have deal fever and getting a deal done for Statoil.

People are truly worried about this government doing a deal because

of the crisis they created. It

is never a good time to negotiate the terms of a long-term contract when you

are in a crisis that this government has created for themselves.

People are worried that the deal will not be in the best interests of

the people of the Province.

Mr.

Speaker, we have spoken on this side of the House many times about the track

record of this government's attention to cost control.

We have asked questions repeatedly about this; $45 million in

business loans written off for businesses, spending hundreds of thousands of

dollars to collect almost the equivalent imagine, spent hundreds of

thousands of dollars to collect almost the equivalent in pension

overpayments from seventy and eighty-year-olds.

Where is the assessment of time value of money over there?

It is a failure to complete oil royalties, a failure to count the

pennies that the people of this Province are depending on to pay for health

and education. Money, by the

way, that comes from the manna this government says falls out of their

pockets instead of where it truly comes from.

Mr.

Speaker, let's talk about some of the other ones.

In December 2008, this government introduced legislation to

expropriate the AbitibiBowater assets in the Province.

In February 2010, government issued a news release that said: the

provincial government was assuming custody of the Grand Falls pulp and paper

mill. In April of 2010

February, March, April, three months later, twelve weeks later the Premier

had to stand in this House and admit they accidently expropriated the mill,

and in their rush to do it, they made mistakes.

The

cost of that mistake was half a million dollars; half a million, just the

cost associated with that mistake.

Not the liabilities. I

want to make sure everybody understands that.

Just the cost of the mistake alone was half a million dollars.

AN HON. MEMBER:

How much are the

liabilities? What are the

liabilities?

MS C. BENNETT:

Mr. Speaker, members

on this side of the House are asking, what are the liabilities?

Well, we have asked the question in the House.

We have repeatedly asked, what are the liabilities related to that

mistake. The minister either

does not know which is one problem if he does not know what the liability

is from something that his government expropriated back in 2008 or he does

not want to be honest with the people of the Province and tell people what

the liability is. Mr. Speaker,

they went through the same thing with Come By Chance.

They did not know the liability there.

Let's talk about another example.

Let's talk about the Department of Business, pet project of the

former Premier. It was announced

in 2004, $140 million for business attraction.

How much did they actually get out the door?

Does anybody have any idea?

One hundred and forty they budgeted, and they got $25 million out the

door; not even 20 per cent of what they budgeted.

They had money and they could not even give it away to grow the

economy.

Mr.

Speaker, let's talk about communications and promotions.

I mentioned earlier about Solid Investments in Provincial

Infrastructure pamphlet that was in the Budget documents.

Well, Mr. Speaker, there have been millions and millions of dollars

spent on public relations that have been designed to prop government up in

the polls and not designed to help anybody; not designed to help anybody

else.

saw examples of that last week.

Every pre-Budget announcement had the expensive banners, had all the bells

and whistles of some high-priced corporate launch.

At a time when our Province is facing a huge fiscal crisis and, more

importantly, people in our Province are hurting, and this government does

not want to see that.

Mr.

Speaker, let's talk for a minute about the Office of Public Engagement.

Let me be clear Mr. Speaker, do you know what?

Having hosted in my business life but, more importantly, in my

community work, many different varieties of stakeholder engagement sessions,

there is nothing more important for a government than to engage with the

people who are the stakeholders in the decision and listen to them.

Not listen to them, cancel a ferry, and come back and say you are

going to listen to them, but really truly listen to them.

I do

not know if the members opposite understand how the Office of Public

Engagement what kind of reputation is has, but here are some of the things

that people have told me at the door.

These are not my opinions.

I know there are lots of talented people working in the Department of

Public Engagement, but their direction comes from this government and how

that department functions comes from this government and the priorities from

this government comes from this government.

Mr.

Speaker, I was surprised when this office was announced, I think, back in

2012, the minister at the time actually, I think he showed up on Wikipedia

as the minister of Twitter. They

actually called him the minister of Twitter on Wikipedia, which is certainly

so far removed from what true engagement is.

Mr. Speaker, I can understand that is not government's intent.

Mr.

Speaker, one of our illustrious members, the Member for Bay of Islands, said

during Questions in this House of Assembly: The Office of Public Engagement

is a worthless PR exercise designed to provide cover to the most secretive

government in Canada. As it

turned out, he was right.

just spent last week debating Bill 1, turning around and repealing Bill 29

that this government brought in so it could hide and create veils of

secrecies about things that government needs to communicate to the people of

the Province. That action to

repeal cost the people of the Province over $1 million.

Mr.

Speaker, let me be clear; if there was real engagement, if this government

was serious about real engagement, the stakeholders would have been

consulted. People who work with

those struggling to make it from one pay period to another would have been

consulted. They would have told

this government that a 10 per cent increase in utility rates in January is

going to make it really, really difficult for seniors to eat because they

will pick heat over food.

Mr.

Speaker, if this government was really serious about real engagement, they

would have made sure that when they made the announcement about their

long-term care plan that the stakeholders, the important stakeholders,

unions and front-line workers were consulted as part of that decision-making

process.

Mr.

Speaker, as we continue to talk about the track record of cost control, how

about we have a party?

Government announced they were having a have party in November of 2008.

For the first time in our history as a Canadian Province we were a

have province and $175,000 was paid for a party this one which I think

everybody forgot about. The

partying continues: a party for CETA, the non-agreement the agreement that

has yet to happen.

This

one really struck me because I am going to talk a little bit about the cost

of full-day Kindergarten. This

government's own numbers say that full-day Kindergarten operations are going

to cost about $13 million a year.

Government paid $1 million to store tires in Dunville, Placentia

because they could not come up with a solution for the tires.

In 2007 the Auditor General reviewed the Department of Justice and

said that the Department of Justice, the department that is responsible for

making sure that the rules, legislation, and regulations are followed in our

Province did not comply with the Public Tender Act; $200,000 of goods and

services were not purchased correctly.

think all those examples speak to the values of this government.

It is the values of this government that the people are questioning

at the door.

Mr.

Speaker, the minister announced that they were going to appoint an external

consultant with the expertise to examine the structure of the provincial

government and its agencies for efficiency improvements.

Let me be clear; we welcome the appointment of an external

consultant, but I would like to remind you that the minister already has

one. He already has an external

consultant; it is called the Auditor General.

The

Auditor General is responsible for coming in and auditing government and

providing sage advice on places where government can act on the saving money

culture that they now talk about wanting to create.

We do not have to wait for an external auditor to take action.

There are things this government can do now.

There are actions this government can take today.

How

can you stand in this House and say costs are 45 per cent higher when you

are the ones responsible for managing the costs?

How do they do that? The

cost of consultants in 2013 was $84 million.

In 2014, it was $75 million.

There are at least a dozen departments that have used external

consultants and there are times when they are needed.

There are times. When there are

significant business processes and change management processes that have to

change, absolutely you have to bring in some expertise; but to show you

where to save money, that is government's responsibility.

That is the responsibility of the people in the House.

This government has the Auditor General who in 2008, 2009, 2010,

2011, and 2012 has made a total of 318 recommendations for better management

of money that this government has control over.

ask the minister: How many of those recommendations are actually completed,

and why is your government not acting expeditiously to save money?

The

Auditor General, since 2011, has made hundreds of recommendations to improve

financial accountability which would lead to better control of taxpayers'

dollars. What is the status on

the implementation of those recommendations?

Time

and time again the Auditor General has identified a lack of strong financial

oversight by this government, leading to waste of taxpayers' money.

In several cases, recommendations that would save large dollars

large dollars were implemented two years later.

Mr. Speaker, that does not speak to expeditious implementation of the

Auditor General's recommendations.

There are actually, in some cases, where government ministers not only take

two years to implement the AG's recommendations, but they refuse to act on

the recommendations. Why have a

government minister refuse to implement some of the Auditor General's

recommendations why? Either

the minister is saying the Auditor General is not providing the accurate

information, or there is some other reason.

It does not make any sense.

Oversight and control of spending is an issue.

Let me be more specific.

The Auditor General has found issues with oversight in our health care

system. Last year, he identified

that there was a lack of audit processes in place at Eastern Health.

They have a budget at Eastern Health of over $1 billion $1 billion.

The government's total budget is $8 billion $8 billion.

What exactly has this government done to provide management and

oversight to health care costs?

As I

said earlier, Mr. Speaker, sometimes when organizations undergo significant

organizational change, you do require a consultant.

To implement a culture of cost control, though, is an admission that

a foundational principle of spending and managing public money has not been

in place. External consultants

can provide huge value. When

used correctly, they support organizational shifts and process changes in

key business areas, but this government has a poor track record of actually

doing what consultants advise.

The

core mandate review a half million dollars on a report, a core mandate

review, and I would ask the government, I ask members opposite: What were

the results? What were the

results of the core mandate review?

What did you implement?

What did you actually do from the report?

This

government fails to provide oversight to huge organizational changes.

An example of that is the technology implementation under the Oracle

platform, the PeopleSoft technology.

This government budgeted, spent, $35 million on implementing new

technology that is supposed to introduce efficiencies into the benefits

management process for public sector employees, yet they failed to provide

oversight and key pieces of that implementation process, key pieces of

advice from not only internal experts, but also external experts the

consultants they paid were ignored.

So,

to bring in a consultant, the people of the Province have to ask the

question around creating a culture of cost it begs to be asked: Will you

listen to the consultant? You

have difficulty listening to the AG; will you listen to the consultant?

Mr.

Speaker, the second of the eight long-term priorities that the minister

spoke about in his speech last Thursday was We Will Refocus they will

refocus refocus. I would

interpret that to be to put our focus back on.

We Will Refocus to Strengthen Health Services refocus.

Mr.

Speaker, he went on to say this is his quote; this is a quote from the

Budget Speech of the Minister of Finance of the Province of Newfoundland and

Labrador who has just spent in his Budget Speech an amount of time talking

about a culture of cost management.

He says, We know there are better, more efficient ways to deliver

health care service. They know

that.

There are choices we can make that will shift greater focus and attention

toward frontline health care services that people need.

So the idea, he goes on to say, is that they are going to

consolidate key administrative support services in the provincial health

care system to find efficiencies, economies of scale and better value for

our money.

says, very carefully, We do not intend to reduce the number of

authorities. I say he said that

very carefully because, as we discussed in Question Period, this government

has a track record of not delivering on the savings from consolidation.

I am sure the minister did not want to spook the general public.

The

regional health authorities each have their separate administrative services

he went on to say. By

consolidating administrative functions among regional health authorities

under the Newfoundland Centre for Health Management was what the document

said we will find greater efficiencies and promote better value for our

money.

Mr.

Speaker, quite frankly the people of the Province do not believe that change

management is this government's strong suit.

We witnessed it with the early amalgamation of the health boards.

We have seen it with the amalgamation of the school boards.

As a

matter of fact in 2008, the AG noted that the goal of amalgamation of the

health boards was to save $7 million $7 million.

In fact when the AG went back and looked at how this government

changed all of that since the integration, administration and support

expenditures for the authorities, since then, has increased increased to

$51.8 million by 2006-2007. It

was supposed to save $7 million and it increased costs by 51.8 per cent.

Mr.

Speaker, internal audit the AG, last year in 2014, recommended that an

internal audit committee be set up for Eastern Health.

Expenditures for Eastern Health have grown to $1.1 billion and the AG

says that he has found some significant financial issues.

They have incurred $83.2 million in budget overruns in

Document details

CollectionNewfoundland and Labrador — Debates (Hansard)
Citation2015-05-04
Typehansard
Volume / chapter2015-05-04
Languageen
Formathtm
SourcePROVINCIAL
Identifier941f2108ec0924acc8ff19e3855668d78260d5b4

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