May

29, 2012 HOUSE OF ASSEMBLY PROCEEDINGS

Vol. XLVII No. 39

The House met at 1:30 p.m.

MR. SPEAKER (Wiseman): Order, please!

Admit strangers.

The hon. the Premier.

PREMIER DUNDERDALE: Mr. Speaker, I ask leave to make a statement with

respect to an appointment of an Officer of the House.

MR. SPEAKER: Does the Premier have leave?

SOME HON. MEMBERS: By leave.

MR. SPEAKER: By leave, the hon. the Premier.

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

Mr. Speaker, it gives me great pleasure today to inform the House that the

Government House Leader will introduce a motion to confirm the appointment of

Terry Paddon as Auditor General of the Province of Newfoundland and Labrador.

This is being done with the concurrence of the Leader of the Opposition and the

Member for Signal Hill Quidi Vidi, Mr. Speaker.

Mr. Paddon has a wealth of experience in the financial industry, in both the

private and public sectors. Most recently, he was Deputy Minister of the

Department of Finance for eight years.

Terry began his distinguished career in the financial industry as a staff

accountant and audit manager with Ernst and Young in 1978. After a period in the

private sector, he joined the provincial public service in 1990 as Tax Audit

Manager with the Tax Administration Branch of the Department of Finance. He

later worked in the Fiscal and Tax Policy Branch of the department, first as

Senior Policy Advisor and then as Director of Tax Policy. Mr. Paddon was

appointed Assistant Deputy Minister of Fiscal Policy in the department in 1998,

a position he held until his appointment as deputy minister in 2004.

Mr. Paddon holds a Bachelor of Commerce degree from Memorial University and

was admitted to the Institute of Chartered Accountants of Newfoundland in 1980.

Mr. Speaker, we look forward to Mr. Paddon's service as an Officer of the

House of Assembly, and to his continued commitment to the public service of

Newfoundland and Labrador.

Mr. Speaker, I also take this opportunity to thank Wayne Loveys for serving

as interim Auditor General since July last year. I ask hon. members to join with

me in showing appreciation and in wishing him a wonderful retirement following

his more than thirty years of dedicated service in the provincial public sector.

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.

I want to thank the Premier for the advance copy.

Certainly, we join the Premier in congratulating Terry Paddon on this

appointment. We believe he is an excellent appointment and besides his many

distinguished years in government, we know that he had a past career in the

private sector. I am sure that this will add a lot to his ability as he accepts

the new responsibilities in his role as the AG.

It gives him a broad sense of the perspective that is required for this job.

As a comptroller in the private sector, he has developed a sense of what is

necessary to maintain accurate and responsible financial records. All of this

will certainly be an asset as he assumes his new role.

The AG's position, of course, is not responsible only to government, but

indeed to the House of Assembly. His job will be enhanced as it comes with the

respect not only of government members, but us in Opposition as well. I can

assure Mr. Paddon, in this case, you will have our respect. We look forward to

seeing many reports from him over the next few years.

I, too, join the Premier in congratulating and wishing Wayne Loveys a good

retirement, and for the contribution that he has made to the people of

Newfoundland and Labrador, for his many years of service with the Province.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Third Party.

MS MICHAEL: Thank you very much, Mr. Speaker.

I thank the Premier for the advance copy of her statement.

I am delighted to stand and to support the appointment of Mr. Paddon as

Auditor General. Yes, we were consulted with by the Government House Leader. I

was quite delighted actually when I heard who the appointment was going to be,

who was being recommended. I think I have indicated to the Minister of Finance

on some points how pleased I have always been in Estimates with the responses

from the deputy minister and from the way in which he could speak to the issues.

What always struck me which I think is something that is very important

about Mr. Paddon in Estimates is how neutral he is. He gives his answers totally

from his financial knowledge, from his knowledge of the profession that he

holds. I have great confidence because of, I think, maybe now the six years

that I have seen him in Estimates he will have that kind of neutrality that

will be absolutely essential in the role of Auditor General.

I am extremely pleased. One thing that I think will be something I hope he is

going to take on, which his predecessors, at least the second one before him,

were looking at, is being able to audit the books at the C-NLOPB. I think it is

something that does need to be pushed further and I look forward to his doing

that as the new Auditor General.

Thank you very much, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Government House Leader.

MR. KENNEDY: Thank you, Mr. Speaker.

I give notice that I will ask leave to move the following resolution:

BE IT RESOLVED by the House of Assembly as follows:

WHEREAS under subsection 4(1) of the Auditor General Act, the

Lieutenant-Governor in Council has been authorized, under the Great Seal of the

Province, to appoint a qualified auditor to be the Auditor General of

Newfoundland and Labrador;

AND

WHEREAS the Lieutenant-Governor in Council has been pleased to appoint

Mr. Terry Paddon to the position of Auditor General of Newfoundland and

Labrador, effective June 1, 2012;

AND

WHEREAS under subsection 4(2) of the Auditor General Act, the person

appointed to the position of Auditor General must be confirmed in office by a

resolution of this honourable House of Assembly;

THEREFORE

BE IT RESOLVED that this honourable House of Assembly confirm the

appointment of Mr. Terry Paddon to the position of Auditor General of

Newfoundland and Labrador, effective June 1, 2012.

MR. SPEAKER: Does the Government House Leader have leave to introduce the

motion?

The motion has been heard.

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

Motion carried.

Statements by Members

MR. SPEAKER: Today we have members' statements from: the Member for the

District of The Straits White Bay North; the Member for the District of St.

John's East; the Member for the District of St. John's South; the Member for the

District of Cartwright L'Anse au Clair; the Member for the District of Cape

St. Francis; and the Member for the District of Bellevue.

The Member for the District of The Straits White Bay North.

MR. MITCHELMORE: Thank you, Mr. Speaker.

I rise today to extend the warmest of congratulations to an Englee man who

celebrated his one hundred and fifth birthday on Saturday.

George Ellsworth was born in 1907 in Englee on the Great Northern Peninsula

and lives there today with his daughter, Dorothy Breen. He worked in the fishery

and as a camp cook with Bowater Newfoundland. Until just a few years ago, he

lived in the house that he built decades ago, growing his very own vegetables.

George credits his many years, in part, to obeying his parents, which the Ten

Commandments tell us will be rewarded with a long life.

Dorothy told the CBC last year that the family's calm temperament and

positive outlook may be part of the reason for their longevity; she noted also

that she has never seen her father drink or smoke. Maybe it is genetics, though.

Mr. Ellsworth has one brother, Jim, out of Mount Pearl, who is now 103. Another

brother, Pat, died just this winter at 101; and their baby sister, Victoria, is

just ninety-five.

Mr. Speaker, I ask all hon. members to join me in wishing Mr. George

Ellsworth of Englee a very happy one hundred and fifth birthday.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The Member for St. John's East.

MR. MURPHY: Thank you, Mr. Speaker.

Mr. Speaker, I rise today to congratulate Mr. Ben Sparkes, present in the

public gallery today. He is a Grade 12 student at Gonzaga who has been accepted

to the House of Commons Page Program. Ben graduates this month and in September

he begins a course of study in Political Science at the University of Ottawa

and first-hand in the House of Commons, one of forty students accepted from

across Canada for the program.

When Ben was in kindergarten, his teachers predicted that he would become a

politician. In Grade 1, Ben heard Jean Chrtien speak at a function and thought,

"That man had an interesting job." At ten years, he wrote Rex Murphy about the

2004 election results, and Rex read that letter on the national news.

Ben contacted British Prime Minister David Cameron in 2010 when he was named

to lead the coalition government, and Mr. Cameron was kind enough to write back.

That same year Ben did a job shadowing project with none other than former

Premier Danny Williams.

Mr. Speaker, I ask all hon. members to join me in congratulating Ben Sparkes

and in wishing him good luck in his future endeavours. I am sure we are all

looking forward to welcoming him back in this House as a colleague someday.

Thank you very much, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The Member for St. John's South.

SOME HON. MEMBERS: Hear, hear!

MR. OSBORNE: Thank you, Mr. Speaker.

Mr. Speaker, I recently attended the Annual Inspection of the Church Lads

Brigade. It was held at St. Mary's Church Hall in St. John's South. The event

was attended by new members of the CLB, a number of their senior members, and

clergy from St. Mary's Church.

During the inspection, we witnessed several young people receive decorations

and awards for attendance, performance, as well as their commitment to the CLB

Armoury. Spectators were treated to the March of the Colour Party, Inspection,

March Past, and Demonstrations.

I would like to recognize those who received awards, those who volunteered to

ensure the CLB continues to provide the service it does, to recognize the clergy

at St. Mary's for providing the venue for these young people so that they have

the positive experience of being part of the CLB. Also, a thank you to Captain

Gail Dick for taking the time to attend the annual inspection.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The Member for Cartwright L'Anse au Clair.

MS JONES: Thank you, Mr. Speaker.

I rise in the House to congratulate and honour three young men from this

Province who recently graduated from RCMP training in Regina, Saskatchewan and

are being posted across Canada.

Just recently I had the pleasure to be in attendance for the RCMP grad at the

Depot. Mr. Speaker, I was very impressed with the calibre of events and the

historic ceremony that has been so deeply rooted in our Canadian history.

There were three Newfoundlanders and Labradorians who graduated along with

twenty others, and they are now Canada's newest RCMP constables. They included

Constable Bradley Rumbolt of Mary's Harbour, now being posted to Canora,

Saskatchewan; Constable Adam Brian Canning of Marrows, Bonavista Bay, now being

posted to Stony Rapids, Saskatchewan; and Constable Michael Roberts of

Stephenville, now being posted to Kitscoty, Alberta.

Mr. Speaker, I was able to meet with all of them and was given a full tour

and detail of the in-depth training that was required by our fellow

Newfoundlanders and Labradorians. Mr. Speaker, Commissioner Roger Brown, who is

originally from Fogo Island, is the assistant commissioner there now. As he

explained to me, it is quite clear that it is no easy feat to complete the

rigorous training

schedule that these young men are to be commended for doing.

Their drive and commitment was very evident.

During the graduation ceremony, I also met with other former Newfoundland and

Labrador RCMP corporals and inspectors who work at Depot along with many others

who have spent quite a bit of their career here in Newfoundland and Labrador.

Our presence in Newfoundland and Labrador is everywhere and quite prominent at

the RCMP Depot in Regina.

I would like to ask members of this House to join with me in congratulating

the three newest RCMP constables from our Province and to wish them a long and

successful career in the RCMP.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Cape St. Francis.

SOME HON. MEMBERS: Hear, hear!

MR. K. PARSONS: Mr. Speaker, I rise today to congratulate the Torbay Post

Allied Youth #1050, a very active and dedicated group of young people in my

district. The Torbay Post recently had the forty-ninth Annual Provincial awards

held in Gander for the past year.

Mr. Speaker, the group was awarded the John Nolan Cup for Outstanding

Community Leadership as well as the Dawe Award for Outstanding Positive

Lifestyle Initiatives.

Two members of the Torbay Post were presented with individual awards for

their personal contributions to their town and the Allied Youth organization.

Sarah Fitzgerald received the Hawkins Award for Outstanding Senior Allied Youth

member. Ashley Vincent received the Dove Award for outstanding Senior Allied

Youth member.

Mr. Speaker, two members of the group were also elected to the provincial

executive. Ryan Mahon was selected as Youth Director for the Avalon Region.

Lucas Ings-Simms was elected Provincial President for the fiftieth Allied Youth

anniversary year.

Mr. Speaker, the Torbay Post Allied Youth is an amazing group of young

people, and I ask all hon. members to join with me in congratulating them for

their recent achievements.

Thank you very much.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Bellevue.

SOME HON. MEMBERS: Hear, hear!

MR. PEACH: Thank you, Mr. Speaker.

I rise in this hon. House to speak of the great community of Monkstown.

Mr. Speaker, on Saturday, May 19, Victoria Day weekend, I had the great

privilege of attending the 112 th anniversary of the Salvation Army at

the beautiful small community of Monkstown.

Mr. Speaker, Monkstown is a true testament of the way of life in rural

Newfoundland and Labrador.

Although there are not many full-time residents, Monkstown has much to offer

the Province. Nestled away in the Hills is a hydro plant consisting of seven

turbines, the community's fishery, and three kilometres away in nearby Davis

Cove, there are landings of approximately 1.5 million pounds of crab, cod, and

lobster annually, that generates revenue to the economy.

That weekend, the community shined with people from all over. The Salvation

Army held a supper with ninety-two seated at the community centre, and later the

church a Gospel Hymn Sing performed to a full church of eighty-nine. That

weekend they raised $7,700-plus dollars what an accomplishment for their

church.

I ask all members to join me in congratulating the Salvation Army Corp of

Monkstown on their one hundred and twelfth anniversary.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Statements by Ministers.

Statements by Ministers

MR. SPEAKER: The hon. the Minister of Fisheries and Aquaculture.

SOME HON. MEMBERS: Hear, hear!

MR. KING: Thank you, Mr. Speaker.

It is with great pleasure that I rise in this House today to note that while

in the face of adversity, this year's seal harvest has reached almost double the

animals harvested last year. Approximately 70,000 seals of the 400,000 Total

Allowable Catch have been harvested, Mr. Speaker, by 680 sealers operating from

275 sealing enterprises.

This, Mr. Speaker, is great news and I offer my congratulations to the

industry on a successful and safe undertaking once again this year.

Even more important to note, Mr. Speaker, that markets are quickly opening up

in Asia and sales for over 100,000 pelts appear to be achievable.

Also, Mr. Speaker, industry participants advise that new marketing

opportunities for seal meat continue to present themselves. The Northeast Coast

Sealers Co-op supplied three containers of seal meat to markets nationally and

internationally, exceeding their expectations and proving future demand for this

product does in fact exist. This is extremely encouraging news.

Mr. Speaker, we stand firmly behind our decision to support the annual seal

harvest with a $3.6 million loan to Carino Processing Limited, which was

intended to kick-start the season and I say, Mr. Speaker, kick-start the

season it did. We also stand firmly behind the industry as they move forward to

identify markets and open new opportunities for seal products. We are confident

that the funding the provincial government provided will be repaid in very short

order, showing the sealing industry is indeed alive and well in Newfoundland and

Labrador!

Mr. Speaker, I would be remiss if I did not note that anti-sealing campaigns

are filled with misinformation on the harvest. The annual seal harvest is highly

regulated and sustainable. The harp seal's population, Mr. Speaker, has

increased from approximately 2 million animals to 8 million.

The natural balance of the ocean's ecosystem has been at risk. Anti-sealing

groups display a lack of understanding about good ecosystem management, about

the industry's economic importance, and about the cultural realities in

Newfoundland and Labrador. For example, they still show whitecoat seals in their

distribution materials, even though whitecoats have not been harvested in

decades.

We will not be swayed by the propaganda of such campaigns or that of

misinformed followers and celebrities. Mr. Speaker, we are proud to support the

seal hunt, a hunt that has provided much benefit to the people of Newfoundland

and Labrador for centuries, and will continue to so.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for St. Barbe.

MR. BENNETT: Mr. Speaker, I thank the minister for an advance copy of his

statement.

I am pleased to support the government's measures to maintain the seal

harvest. One of the most important reasons to manage the seal population is

because the ever-expanding population is not sustainable; 9 to 10 million

animals and growing places a tremendous strain on the population of other

creatures in the ocean. We may be at a tipping point where other creatures in

the ocean become completely overwhelmed and depleted. This is no good for those

other creatures, no good for humans, and no good for the seals. However, handled

properly, seals are a great resource. Seal oil is a wonderful source of Omega 3,

an important health supplement; seal skins make fabulous biodegradable clothing

products, and seal meat is valued in many parts of the world.

In short, Mr. Speaker, handled properly, the seal herd is a source of wealth

for our Province and our country, and it is our responsibility to properly

manage this resource.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for The Straits White Bay North.

MR. MITCHELMORE: Thank you, Mr. Speaker.

I, too, thank the minister for an advance copy of his statement. I fully

support the sealing industry and I am optimistic about the future potential. It

is quite heartening to see that the harvest has doubled from what it was last

year. I think we will see the continuation of catch increases.

The sealing industry is a very important aspect of the rural economy and

there are many opportunities for new value-added sealing-based enterprises to

add to the ones we already see contributing to new products and development for

apparel, food, fertilizers, oils, cuisine, and heritage. I encourage the

government to continue to work with the rural stakeholders to further these

ideas to include new products for local as well as export markets.

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.

Eastern Health has confirmed that they are eliminating 552 positions and $43

million from their budget; 385 of those are full-time positions.

I ask the Premier: Do you honestly believe that you can make this level of

cuts over the next two years without impacting frontline services and programs

for the people of the Province?

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MS SULLIVAN: Thank you, Mr. Speaker.

Mr. Speaker, I think the first thing that we need to understand is that

Eastern Health is not eliminating any full-time positions whatsoever. Anybody

who has a permanent job with Eastern Health today will still have a permanent

job at the end of this exercise, Mr. Speaker. That has been very clearly

communicated, and communicated to staff as well. I know that the Opposition

members had a chance for a briefing this morning as well, so that was very

clearly communicated.

In terms of numbers, there will be 385 positions where we are looking at

those permanent employees. There are another 165 FTEs; we are talking about

full-time equivalents. Mr. Speaker, many of those full-time equivalents can be

made up in the sense of hours that it takes to complete a job, as opposed to

positions and people.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Official Opposition.

MR. BALL: Thank you, Mr. Speaker.

We do understand that even though it is hours you are talking about, it was

actually people and health care professionals that were filling those; there

were also some jobs that will be displaced because of retirement or whatever.

There will be less people working, we know that.

Mr. Speaker, for the last four years, Eastern Health has run deficits in the

average of about $20 million each year. Government has backfilled this amount up

to about $84 million over the last four years, so now, we went from backfilling

deficits into making the cuts to make up for this allowance. So, either the

service was needed, or it was not.

I ask the Premier: How do you explain this?

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MS SULLIVAN: Mr. Speaker, first of all, there are no cuts. In fact, what

we have done since 2006 is that there have been increases in the budget to

Eastern Health to the tune of about 56 per cent; there have been no cuts to

Eastern Health whatsoever, in terms of monies allocated.

What we are looking for, and what Eastern Health is looking for here and now,

is opportunity to address that $82 million, in terms of deficit budgeting. They

want to return to a balanced budget. That is a laudable goal, Mr. Speaker, and

it is a goal that I certainly commend Eastern Health for. They are trying to

find a way forward with that. They are looking, as well, to find efficiencies

within the system. They are looking, as well, to find opportunities to use some

of their money more wisely in terms of some of the areas that they have

identified as needing extra attention.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Official Opposition.

MR. BALL: Thank you, Mr. Speaker.

Well, what we do know is that these cutbacks really, reductions actually

started last year. The reductions actually being announced today came on the

heels of the Premier stating time and time again in this House and in the media

that frontline services and health care would not be affected. This came,

really, right after the Budget. So, today's announcement is quite different to

what the Premier said during the Budget.

So, I ask the Premier: Why did you give the people of this Province and the

health care employees a false sense of security, when clearly programs and

services will be affected?

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MS SULLIVAN: Mr. Speaker, the commitment and the resolve that Eastern

Health has made is the very same commitment that the Premier has made. There

will be no reduction to programs; there will be no reduction to services. There

will be no facilities closed in Eastern Health as a result of a program that

they have undertaken on their own, Mr. Speaker, absolutely no reduction

whatsoever.

This has nothing to do with the Budget, nothing to do with commitments that

we have made over here. This is a project that Eastern Health has undertaken and

they have undertaken it in the same light that we undertook the Budget. That is

to find efficiencies but to ensure that patient care, quality and safety is

still paramount, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Official Opposition.

MR. BALL: Thank you, Mr. Speaker.

To say that patient care is not affected when we know and obviously this

information was given to us today that constant care for instance is one of

the areas that they are looking at. Right now if you have a patient who needs

constant care, there is actually a person there supplying that. We know that is

one area that they are looking at reducing right now. You say that this will not

affect patient care but we know there are 133 equivalent positions being

eliminated for the direct patient care in the nursing sector for instance.

I ask the Premier: Can you explain to me how you can say this is no cuts in

frontline health care and no effects on patient care for instance?

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MS SULLIVAN: Mr. Speaker, constant care is one of the areas of concern

that Eastern Health actually did identify as an area where they can find a whole

lot of efficiencies. One of the things they found when they started to

investigate constant care was that quite often somebody who had been working in

the hospital that day would be asked to fill in for constant care in the

evening.

That might be an RT, that might be somebody who is not even connected to the

nursing floor, Mr. Speaker, but it would be somebody who was going to be paid

time-and-a-half or double time because they were already in the facility.

Eastern Health has identified that as an inefficiency, and they will look to

find somebody else within the organization who can fit the role of supplying

constant care in that particular facility and do it at a cheaper rate. That is

called efficiency, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Official Opposition.

MR. BALL: What we do know in terms of constant care, was maybe we would

get into a situation where it would be reduced and certain people required. We

also know there were benchmarks and that came from the discussion on

benchmarking when we found that we were higher in some areas. There was going to

be some and sick time was the other one. Time and time again this government

has boasted about health care expenditures, the fact that we spend the most on

health care compared to any other Province in Canada. Decisions of this

magnitude are not made without some level of government involvement.

I ask the Premier: Did your government direct the health authorities to

reduce their spending, and when did you do this?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

Mr. Speaker, I asked the Leader of the Opposition to listen carefully to what

the minister has just said. We have increased the budget of Eastern Health over

the last number of years by 56 per cent, Mr. Speaker. So we respond when they

ask for essential services and programming, and resources to do it, but no

system should be stagnant, Mr. Speaker. Like government, organizations have to

be looking at themselves all the time, Mr. Speaker, to see that they are

producing quality services in the most efficient and effective way.

The Opposition's mantra is to spend, spend, spend. Spending responsibly, Mr.

Speaker, is not anything that they are concerned with at all.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Official Opposition.

MR. BALL: Thank you, Mr. Speaker.

I assure the Premier we are concerned about it.

You say on one hand, you increased it 56 per cent, on the other hand: Did you

direct these health authorities to make those reductions or not?

MR. SPEAKER: The hon. the Premier.

PREMIER DUNDERDALE: No, Mr. Speaker, I did not.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Official Opposition.

MR. BALL: Mr. Speaker, we understand that government had challenged the

health authorities to find efficiencies within the boards; that is our

understanding.

When can we expect the other boards to make the similar announcements?

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MS SULLIVAN: Thank you, Mr. Speaker.

Mr. Speaker, one of the first things that I did when I came into this

department, as I am sure ministers ahead of me did, was to meet with the CEOs of

the four regional health boards. In meeting with the CEOs of the boards, some of

their concerns always involved talking about their budgets and sustainability of

the health care system, Mr. Speaker. We have always had those conversations

around sustainability, around making sure that in Newfoundland and Labrador we

have the best health care systems that we could possibly have. That is a

standard part of any conversation.

In terms of the other three boards, those conversations were held with them

as well. Mr. Speaker, I will continue to have those conversations and we will

look at benchmarking processes there as well.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Official Opposition.

MR. BALL: Thank you, Mr. Speaker.

Before the Budget was brought down last month, the Premier stated that on

Budget Day the public would know the full extent of the cuts across the

Province. Now in what seems to be like a federal government, or a Harper-like

move, the public are only finding out about these severe-type reductions in

health care today.

I ask the Premier: How can you justify setting aside $655 million to an

unsanctioned Muskrat Falls Project and making these reductions in health care?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

Mr. Speaker, too cute by half is the Leader of the Opposition. He tries to

lead us down paths that will take us astray from the principles that have guided

this government since the very first day we came here in 2003.

The Budget was what the Budget was, Mr. Speaker. There were no hidden agendas

in the Budget. Eastern Health has undertaken this exercise of their own volition

to ensure that they are providing quality services first of all. Quality

services is their principle concern and they are doing that as efficiency and as

effectively as they can, Mr. Speaker. That is to be applauded, not criticized.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Official Opposition.

MR. BALL: The criticism was more at the Muskrat Falls $655 million, the

money that was set aside for that. We have been asking in this House on numerous

occasions when will we get the return, because you keep saying that it is going

to pay for health care, it is going to pay for roads. We have not seen any idea

yet when we can expect to get that return.

It is now clear why the Premier did not say a word about Stephen Harper

making cuts to this Province. It is because they were about to do the same.

I ask the Premier: How can you scold the federal government on one hand for

making deep cuts when you are about to do the exact same thing?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

Mr. Speaker, first of all, $655 million is not going to be spent on the Lower

Churchill unless Muskrat is sanctioned, and we are some time away from that

decision. That is the first thing. If you want an example, this same kind of

debate took place in this House of Assembly and in the broader environment in

Newfoundland and Labrador, Mr. Speaker, when the government of the day was

trying to develop Bay d'Espoir.

Look at Bay d'Espoir today and the money that it generates and the power that

it generates for the people of this Province. Where would we be today if we had

listened to the critics like the Leader of the Opposition, Mr. Speaker? We would

be in an awful mess today if we had.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Torngat Mountains.

MR. EDMUNDS: Thank you, Mr. Speaker.

Last week in this House I asked about food insecurity in Natuashish and

Nunatsiavut. To illustrate this insecurity we looked into some pricing, Mr.

Speaker. For example, a case of Enfamil A + Infant Formula costs $35

in St. John's, and the same item in Northern Labrador costs $79.

I ask the minister: Citing the Nutrition North Program and Air Foodlift

Subsidy, how does this benefit the Northern consumers of our Province for which

it is intended?

MR. SPEAKER: The hon. the Minister of Intergovernmental and Aboriginal

Affairs.

SOME HON. MEMBERS: Hear, hear!

MR. McGRATH: Thank you, Mr. Speaker.

With the Nutrition North program as well as the Air Foodlift Subsidy, which

were designed so that the wholesome foods are subsidized, items such as dairy

products are subsidized by 100 per cent. Our government is watching so that

healthy foods are going up: fresh vegetables, fresh fruit, and homogenized

products. That is what we are keeping an eye on and that is what we want to see

going up to the North Coast through those programs. As I said, Mr. Speaker, some

of that is subsidized up to 100 per cent.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Torngat Mountains.

MR. EDMUNDS: Thank you, Mr. Speaker.

Yes, 100 per cent food subsidy is quite often put in place.

Mr. Speaker, the example I just gave makes it obvious that the benefits of

the Air Foodlift programs are not reaching the consumers of the North Coast.

There are many more similar examples I could put forward.

I again ask the minister: What checks are being put in place to ensure that

the benefits of the Foodlift programs are being passed on to the Aboriginal

communities of this Province? Will he initiate an investigation into the

discrepancy in prices?

MR. SPEAKER: The hon. the Minister of Intergovernmental and Aboriginal

Affairs.

SOME HON. MEMBERS: Hear, hear!

MR. McGRATH: Thank you, Mr. Speaker.

Mr. Speaker, twice a year our government does a survey on the North Coast on

both programs, the Nutrition North program and the Air Foodlift Subsidy, to

compare prices on the North Coast throughout the rest of the Province. We

monitor that. As I said, twice a year, we will do a survey. The subsidies are

geared to putting nutritional food into the North Coast. We give the subsidy to

the retailer and we expect the retailer to pass it on to the consumer.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for St. Barbe.

MR. BENNETT: Mr. Speaker, last week DFO announced a cod quota cut for the

Gulf region, which will affect the bottom line of our fishers. During the 2011

federal election, the Premier wrote to the Prime Minister to gauge his position

on early retirement and licensed buyouts. The PM responded: "When requested"

the "Conservative Government will enter into discussions with the Province of

Newfoundland and Labrador to explore further initiatives and policy changes that

could further strengthen the fishing industry."

I ask the Premier: Isn't time to hold the Prime Minister to his promise?

MR. SPEAKER: The hon. the Minister of Fisheries and Aquaculture.

SOME HON. MEMBERS: Hear, hear!

MR. KING: Thank you, Mr. Speaker.

We are indeed aware of the quotas that were announced last week. They are

very serious decisions, Mr. Speaker, because those kinds of decisions that were

made very flippantly by governments from the federal perspective in the past are

what got us into the situation we are in today with many of our ground fish

quotas. While they are challenging, we accept and respect that sometimes tough

decisions have to be made and quotas have to be reduced.

On the early retirement, Mr. Speaker, we have been very clear in this House

on any number of occasions that we have 30 per cent commitment to the early

retirement program. I have had discussions personally with the federal minister.

I know the Premier has had discussions on the same issue. We will continue to do

that. It is on my agenda in about a week or so when I meet with the federal

minister. Mr. Speaker, very clearly, we cannot move forward with an early

retirement program unless the federal government is prepared to come to the

table with their portion of that.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The Member for St. Barbe.

MR. BENNETT: Mr. Speaker, one of the reasons DFO cited for the quota cuts

is that scientific assessments done over the winter show a decline in stocks;

however, some fishermen are saying that recently there have been signs of good,

healthy stocks.

Given that the Province has established its own Centre for Fisheries

Ecosystems Research and has engaged the Irish research vessel the Celtic

Explorer again this year for fisheries research, I ask the minister: What

does your research show regarding the Gulf of St. Lawrence cod stocks?

MR. SPEAKER: The hon. the Minister of Fisheries and Aquaculture.

SOME HON. MEMBERS: Hear, hear!

MR. KING: Mr. Speaker, I have the greatest of respect for viewpoints

expressed by all fishermen, all harvesters in this Province, but we have to

recognize that decisions on quotas have to be based on more than just a

viewpoint expressed by harvesters. We consider that, but the federal government

must also consider the science.

The Celtic Explorer is currently out, Mr. Speaker, doing science as we

speak, so I cannot comment on what the results will be. I can only say that I

will certainly share them with the member opposite, and this House, when they

become available. What I can say, Mr. Speaker, is that we are always very

concerned with the stock allocations off our coast. We recognize that the

fishery has been a part of our history and culture and will be a part of our

future. Any information we collect, we will feed into the decision-making

process with the federal government.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The Opposition House Leader.

MS JONES: Thank you, Mr. Speaker.

Yesterday, I asked the minister about some cuts that will be taking place

with six satellite offices of DFO in the Province. He was not aware of it.

Mr. Speaker, I want to ask today about cuts to the licensing division, which

we are hearing is being cut right across the country. We are being told that

fishers now will have to file on-line for their licences.

I ask the minister if he can confirm this and if he can explain how many

fishers out there in rural communities in this Province, who do not even have

access to high-speed Internet, are going to be able to register on-line for fish

harvesting licences.

MR. SPEAKER: The hon. the Minister of Fisheries and Aquaculture.

SOME HON. MEMBERS: Hear, hear!

MR. KING: Mr. Speaker, I remind members opposite that I am not the

federal Minister of Fisheries and Oceans. I did not make the decisions that have

been announced in the recent days, nor am I privy to the details on what that

will look like.

I can say to the member opposite that as a result of the information that I

have available to me, I have written a letter to the federal minister and

outlined clearly how strongly we feel about the cuts that are proposed. That is

gone. I have a meeting scheduled. That is on my agenda. I met with a group just

this morning who feel that they may be affected by the cuts. These are people

who work directly in the industry, Mr. Speaker, and they have no more knowledge

of what is happening. So, I cannot say in this House what I do not know; I am

sorry.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The Leader of the Third Party.

MS MICHAEL: Thank you very much, Mr. Speaker.

We learned in our briefing with Eastern Health Authority this morning that

there will be no pink slips at Eastern Health, but that there will be 385 jobs

lost through attrition over the next two years. Eastern Health says they have

three goals: no layoffs, no reductions in quality of care, and no closures of

facilities. Government has the responsibility to monitor how this will work out.

Mr. Speaker, I ask the Premier how she plans to prove to the public that

their health care will not be compromised by these efficiency measures.

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MS SULLIVAN: Thank you, Mr. Speaker.

Mr. Speaker, what Eastern Health has proposed today and what they are

actually outlining right now in a press conference to the media, I think, is a

very laudable goal. The three goals that you just read out there and the three

values that we just referred to are very much uppermost in the mind of Eastern

Health. They are goals that we also want to see that Eastern Health is adhering

to, as we do with all of our regional health authorities, Mr. Speaker.

We are in ongoing discussions and conversations with all of our regional

health authorities, with all of our CEOs, on a very regular basis, Mr. Speaker.

That will continue.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The Leader of the Third Party.

MS MICHAEL: Thank you, Mr. Speaker.

This week in the media the Premier referred to the health care system as a

black hole.

Mr. Speaker, I ask the Premier: Given such a negative attitude towards the

health care system, how can people have confidence in her ability to provide

them with quality health care?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

Mr. Speaker, I believe that the Leader of the Third Party thinks that out

there in back of Confederation Building somewhere there is a money tree. There

is a money tree that we can go out and we can fill up our coffers every time we

feel like it.

Mr. Speaker, we have to be responsible. We have about a $7.5 billion Budget

in this Province; almost half of it goes into health care. We pay more per

capita in health care than any other jurisdiction in the country. What do we

hear from the Leader of the Third Party in this House day after day after day?

Spend more, spend more, spend more, and spend more, Mr. Speaker. It is not

fiscally responsible to do so.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The Leader of the Third Party.

MS MICHAEL: Thank you very much, Mr. Speaker.

Obviously, the Premier did not hear my question. All I would like her to do

right now is to explain to the people of the Province what she means by health

care being a black hole.

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

Mr. Speaker, I cannot find a more perfect example than the Leader of the

Third Party. Because no matter how much we spend, how much we do, Mr. Speaker,

she wants more, more, more, and more. Now, Mr. Speaker, the first term she was

here, she was on her feet in QP every day asking for a review, a review of our

health care system. Well, we had a review; it was called the Hay Report and it

recommended the cutting of services and closing of rural clinics from one end of

this Province to the other. That is what she wants, Mr. Speaker. It is not what

we want over here.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Third Party.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

MS MICHAEL: Mr. Speaker, yes, indeed

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The hon. the Leader of the Third Party.

MS MICHAEL: Thank you, Mr. Speaker.

Indeed I stood in this House in 2007 and asked for an external review of our

whole health care system, a full analysis involving full public input, Mr.

Speaker, different from studies that have been done. I have asked for this many

times, the Premier is right.

To ensure the efficiencies that are being put in place by Eastern Health,

which look like they are going to be put in place in other authorities, do not

hurt workers or patient care, Mr. Speaker, we need such a review.

So, I ask the Premier: Will she study what a real review would mean and

commission an external review of the health care system?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

Mr. Speaker, we have already been down that road once before. If the Leader

of the Third Party had taken the time to read the Hay Report, perhaps she would

not be so quick in calling for another one. We know how to make the health care

system more efficient, Mr. Speaker; if that were our only value, a review would

likely be in order, but we want services to be near people and near communities.

We are a coastal people. We cannot have just central hubs of health care in five

or six places around this Province. Health care has to be available to people,

as far as we can provide it in their communities, and it has to be quality

health care, Mr. Speaker. That is what we are doing.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for The Straits White Bay North.

MR. MITCHELMORE: Thank you, Mr. Speaker.

Mr. Speaker, since the perfectly working air ambulance service was taken from

St. Anthony and placed in Labrador, it has been plagued with serious staffing

problems.

Mr. Speaker, I ask the Premier: Was the service moved so it could be cut?

MR. SPEAKER: The hon. the Minister of Health and Community Services.

MS SULLIVAN: Oh, that is a really easy answer, Mr. Speaker: absolutely

not.

When the air ambulance was moved from St. Anthony to Happy Valley-Goose Bay,

it was moved for a very good reason. Mr. Speaker. Let me tell you some of the

reasons, or one of the reasons, why we can prove to you that we moved it for the

exact right reason.

Mr. Speaker, last year there were 273 flights from Labrador using that air

ambulance versus 158 flights from At. Anthony. Thirty-seven per cent of the

flights from St. Anthony were considered non-urgent. They were for appointments,

diagnostics, and things of that nature, Mr. Speaker. The air ambulance was moved

for the right reason: to better serve the people of Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for The Straits White Bay North.

MR. MITCHELMORE: Thank you, Mr. Speaker.

Mr. Speaker, the air ambulance stationed in Labrador spends a lot of time in

the hangar, so much so that the pilots may have trouble logging their required

hours of flight time. Government has failed to provide a medical flight team for

this service.

Mr. Speaker, I ask the Minister of Health and Community Services: Is this

failure to secure appropriate human resources to be sold to the public as a

savings or efficiency?

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MS SULLIVAN: Thank you, Mr. Speaker.

Mr. Speaker, that comment is absolutely outrageous. This has nothing to do

about savings. Nothing in health care has to do about simply looking for

savings; efficiencies, maybe, in terms of what Eastern Health is doing, but

nothing about looking for savings, Mr. Speaker. We are concerned about quality

health care in Newfoundland and Labrador. We are concerned about the safety of

Newfoundlanders and Labradorians, and that will always be our utmost concern.

That particular comment, Mr. Speaker, is irresponsible.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for St. John's East.

MR. MURPHY: Thank you, Mr. Speaker.

The Minister of Municipal Affairs said in Estimates Committee that he would

release the POMAX feasibility study of enhanced 911 services at the end of this

month. While we are there, Mr. Speaker, we would like to know where the report

is.

MR. SPEAKER: The hon. the Minister of Municipal Affairs.

SOME HON. MEMBERS: Hear, hear!

MR. O'BRIEN: I would like to remind the hon. member that today is May 29

and tomorrow is May 30, so just wait and see. You might have it by the end of

the month.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for St. John's East.

MR. MURPHY: Thank you, Mr. Speaker.

It is very disappointing that the 911 report is not yet released, especially

when the provincial air ambulance program is being reviewed at this present

time, because 911 is vital to the optimal functioning of the ambulance service.

These two parts, Municipal Affairs and Health and Community Services, should be

working in consultation with each other and using this report as a basis for

their work.

Mr. Speaker, why does government not see that this is short-sighted to have

an ambulance review without knowing what is in the POMAX report?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Municipal Affairs.

SOME HON. MEMBERS: Hear, hear!

MR. O'BRIEN: The hon. member is going to have wait in regard to the

report itself and just see exactly what is in it. I want to remind the hon.

member that a good portion of this Province is now covered by 911, especially in

the Avalon region and also in the Corner Brook region. They have a 911 service.

That is the thing that was missing on your side. You do not do the research in

regard to the total process.

We work in concert with the Department of Health all of the time in regard to

supporting any kind of service we provide to the people of Newfoundland and

Labrador. This is a party and this is a government that works together, not like

your own that does not know the questions and have to go to the suggestion box

to get them over at the Avalon Mall.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for St. John's Centre.

MS ROGERS: Thank you, Mr. Speaker.

Mr. Speaker, yesterday the Minister of Justice said we have all the

whistle-blower protections we need, yet there are still public sector employees

who will only talk on the grounds of complete anonymity over fear of losing

their jobs due to the lack of whistle-blower legislation. We do not have

adequate whistle-blower protection for our workers in this Province.

Mr. Speaker, I ask the Premier: Do we really have to wait for another scandal

to take place before this government fulfills the promise it made five years ago

to the people of Newfoundland and Labrador? What will it take?

MR. SPEAKER: The hon. the Minister of Justice and Attorney General.

SOME HON. MEMBERS: Hear, hear!

MR. F. COLLINS: Take four, Mr. Speaker.

Mr. Speaker, we value our public servants in this Province. They are the

engines that drive government; they are the nuts and bolts of this government.

We will give them every assurance they need, that their jobs are protected, that

they have nothing to fear from reporting something untoward in the workplace.

We do that in several pieces of legislation, and we do that in our assurance

to them that they will not have to worry about any kind of repercussions because

there is no specific whistle-blower legislation in place. They have lots of

protection under all other pieces of legislation, and as I reiterate again, we

will give them every assurance that they will not be retaliated or intimidated

in any way by providing something that is untoward in the workplace.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for St. John's North.

You have time for one very quick question.

MR. KIRBY: Thank you, Mr. Speaker.

The Harper government plans to allow employers to pay temporary foreign

workers less than Canadian workers for the same jobs. This flies in the face of

our humanitarian values in Newfoundland and Labrador.

I ask the Premier: Does she plan to raise the issue of pay less wages with

Stephen Harper when she meets with him?

MR. SPEAKER: The hon. the Minister of Environment and Conservation.

SOME HON. MEMBERS: Hear, hear!

MR. FRENCH: Mr. Speaker, let me first say right off the bat that we were

not consulted by the federal government in the recent announcements when it

comes to foreign temporary workers. I do know, Mr. Speaker, that in September we

have an FPT meeting and it is on the agenda. At that time I will certainly be

bringing our say to the table.

I just want to let the hon. member know that when it comes to looking after

the workers of this Province, we certainly do our job. There is nothing more

evident than the most recent Hebron announcement and our SPO there. At that

time, Mr. Speaker, we look after Newfoundlanders and Labradorians first

MR. SPEAKER: Order, please!

The time for Question Period has expired.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Presenting Reports by Standing and Select Committees.

Tabling of Documents.

Notices of Motion.

Answers to Questions for which Notice has been Given.

Petitions.

Orders of the Day.

Orders of the Day

MR. SPEAKER: The hon. the Government House Leader.

MR. KENNEDY: Thank you, Mr. Speaker.

We will now be moving into the Estimates on Executive

Council, Mr. Speaker.

MR. SPEAKER: Are you calling an Order Paper number?

MR. KENNEDY: It would be, Mr. Speaker, I guess in Order

MR. SPEAKER: Motion 2.

MR. KENNEDY: Motion 2.

Yes, Committee of the Whole, Mr. Speaker.

MR. SPEAKER: The hon. the Government House Leader to move

into Committee.

MR. KENNEDY: Yes, Mr. Speaker.

MR. SPEAKER: You are moving and seconding that the House

resolve itself into a Committee of the Whole?

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The Government House Leader is moving that we move into

Committee of the Whole.

It is moved and seconded that I do now leave the Chair for

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

Estimates.

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

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

Motion carried.

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

the Whole, Mr. Speaker left the Chair.

Committee of the Whole

CHAIR (Verge): Order, please!

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

We are going to be debating this afternoon the Estimates of the Legislature,

the Executive Council and the Consolidated Fund Services. We have two hours and

forty-five minutes in which to do this. We will start off with the Estimates of

Executive Council.

I recognize the hon. the Minister of Finance.

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Thank you, Mr. Chair.

It is indeed an honour and a privilege to get up here today to do this part

of the Budget process. As members know, as part of the Budget process we will be

going along a number of paths. One of the paths is that we have a Budget debate.

We had the motion, which I moved on Budget day, that the House support the

budgetary policy of the government in general.

The Opposition moved an amendment and then a sub-amendment. We voted down the

sub-amendment, we voted down the amendment, so all that remains there is for the

vote on the general motion. Also, on Budget day the Estimates or what

expenditures would be for the year were tabled and delivered to hon. members.

Those Estimates, for the most part, were referred to committees, three different

committees. We went through a process; I think in most cases it took

part in

this House here. It was not televised, but it is a process in which the

Opposition has a chance to ask the minister and the minister's officials, the

deputy ministers, and assistant deputy ministers, and the directors, and gives

the Opposition a chance to ask the minister and his or her staff questions about

the Estimates, questions about what is going on in the department, and general

matters of policy as well. It has been an excellent process. As a matter of

fact, I think we accomplish more in Estimates than we do in most things we do.

I remember the predecessor to the current Member for Burgeo La Poile made

the comment that we should televise the Estimates. While it is obviously

important that government be open and accountable, and the people should have

the right to see what goes on in Estimates, I think with the TV cameras there, I

think everything changes. I think then the questions are not as sincere and then

the answers are not as sincere, and then we start doing the political thing,

which takes away from what I think is a pretty good process.

There is another part of the Estimates that are not dealt with in Committee.

Although the ones that were dealt in Committee, they were brought forward into

this House in the debate that we had yesterday and last night, called the

Concurrence debate, and we had the vote on the three Concurrence motions. So the

Estimates that were referred to those Committees were passed by hon. members. Of

course, that is the basic principle that we are following here, that the

government cannot spend any of the people's money without the approval of the

Legislature, without the approval of the representatives of the people who

gathered here, have a chance to review the Estimates, and then have the right to

vote aye or nay.

Now, what we are going to do today is that there are certain Estimates that

are not referred to Committee. Those Estimates, for reasons that I am not aware

of, are dealt with in this House and dealt with before the TV cameras. I

understand the time we have for it is about two hours and forty-five minutes. I

guess there is an opportunity for the questions and answers to go back and forth

on the various topics that we are going to look at today, and I understand we

have ten minutes apiece in speaking, if that is necessary. The way it will go is

the Opposition will ask us questions on the various headings and the government

will respond.

I think we are going to look at Consolidated Fund Services. That is one that

deals with the servicing of our debt and the costs that are associated with the

paying of our debt and contributions to our pension plan. I think this is the

fifth time that I have done this and I do not think we have ever had a question

on Consolidated Fund Services, but if any members wish to bring it up, it is

quite interesting.

After we do Consolidated Fund Services, which, as I said, is servicing the

public debt, the use of loan guarantees, and employee retirement arrangements,

which of course are pension funds, we then get into Executive Council. In

Executive Council, we are going to look at the Estimates of the Lieutenant's

Governor's Establishment. We are going to look at the Office of the Executive

Council, and that includes the Premier's Office, which is always one that gets a

lot of attention. We are going to look at the Cabinet Secretariat; that is the

Executive Support for the Premier's Office and for the various Cabinet

Committees. There is Planning and Coordination. There is the Provincial

Government Programs Office, headed by Donna Brewer; that is an office that looks

at the effectiveness of government programs and whether we getting a good bang

for our buck.

There is also Economic and Social Policy Analysis; that is the group that

support the Economic and Social Policy Committees of Cabinet. Another one is

OCCEEET, which is the Office of Climate Change, Energy Efficiency and Emissions

Training. That is in Executive Council as well. I know last year there was a lot

of interest expressed in that. There is the Protocol Office. We are going to

look at Public Service Development, which I think are the Public Service Awards.

Then we are going to look at the Estimates of Intergovernmental and Aboriginal

Affairs Secretariat. The minister of that department is here today and he will

answer questions on that. That will include his office, it will include

Executive Support, Intergovernmental Policy Analysis and Coordination,

Aboriginal Affairs, and the former Ottawa Office.

There is also the Communication and Consultation Branch of Executive Council.

There is Financial Administration and Human Resource Support. We will then look

at Strategic Human Resource Management. Then there is the Rural Secretariat. The

Minister of Innovation, Business and Rural Development is here today and he can

answer questions on that.

I understand Women's Policy is a

section of

AN HON. MEMBER: (Inaudible).

MR. MARSHALL: That was dealt with, I understand, in Committee.

The Provincial Council on the Status of Women was dealt with, so we will not

do that today.

The Labrador Affairs Office, the minister will take care of that. The

Voluntary and Non-Profit Secretariat will be dealt with today.

Then we will come to the Human Resource Secretariat, formally known as the

Public Service Secretariat. That is a division of Executive Council that I have

responsibility for in this House. We will look at Executive Support; we will

look at Employee Relations. That is the group that deals with collective

bargaining and classification and provides us with bargaining advice on matters

like arbitration, general labour relations, collective bargaining matters, and

compensation policy and also provides support to Treasury Board on the human

resource side.

We have Policy and Planning, we have the Centre for Learning and Development,

and we have Strategic Initiatives division of the Human Resource Secretariat. We

have Opening Doors, a very exciting and very excellent program that I know all

members are familiar with. It does just tremendous work. There is French

Language Services then, but I believe that may have been dealt with already at

Committee. I think that is it, Mr. Chair.

With that, I think that is enough of an introduction. I will do my best to

answer the questions. A lot of these divisions, I am not the minister for a lot

of these, but we do have so the people watching on television will know

officials who are close by. Through the magic of television, some of the

questions, before I know it I will turn around and the answer will be placed in

my hand. With that, I will await your first questions.

CHAIR: The hon. the Leader of the Official Opposition.

MR. BALL: I ask the Minister of Finance, where would you like to start:

with the Consolidated Fund Services or with Executive Council?

MR. MARSHALL: It is up to you, wherever you want to go.

MR. BALL: Okay, thanks.

First of all, before I do begin, I would like to thank the Minister of

Finance and his staff. After sitting through some of the Estimates, and

obviously this has been in some cases the first time I have done this, I will

say that the degree of knowledge and how responsive they were in Estimates, we

were thoroughly impressed with how open they were, and the amount of knowledge

that they had there, and how they did respond. I thank the minister for that.

I will just have a few questions on the Consolidated Fund Services. Probably

what we will do is that we will take a few minutes and between the Leader of the

Third Party we would move it back and forth and probably just start to go line

by line. I did notice I am working from my Estimates book - if you look at the

servicing of public debt, there is a capital expenditure there of $220,000.

MR. MARSHALL: Which line is that?

MR. BALL: It is actually on the opening the Consolidated Fund page,

right here, Minister.

MR. MARSHALL: Do you have a number?

MR. BALL: There is nothing on the bottom of this page. It is the opening

page, actually, the Program Funding

Summary. It is where we talk about the

servicing of public debt to be currently around $358 million, and then there is

a capital expenditure there for $220,000. Since it is around servicing of public

debt, I just had a question on that. What that capital expenditure would be in

terms of servicing debt? What do we need capital for?

CHAIR: Order, please!

I need to seek some direction here from the people who are going to be

participating in Committee. We have to handle this a little differently than we

would in the normal Estimates Committee. We are being broadcast on television.

Leader of the Official Opposition, you have fifteen minutes and

MR. BALL: Okay, so what I will do is a series of questions. Are you okay

with that?

CHAIR: You can do that. I am actually okay with whatever you guys want to

do. I am not trying to dictate it, but if you are going to do it this way, then

for the purpose of television, I need to recognize the speakers and take time

for the people to be recognized.

MR. BALL: Absolutely, and I understand, too, that it takes a while to get

some of the information in. We can just move on if there is a question that you

cannot answer. We are okay to move on past that and go to the next question.

When the information becomes available we can actually enter it in then, if that

is okay?

CHAIR: Yes.

MR. BALL: Okay. I will go to page 1.3, which is Servicing of Public Debt.

This is under the Consolidated Fund Services, so 1.3. Near the bottom of that,

and I will refer to bullet 1.1.05, Temporary Investments. These are the

appropriations to provide for interest earnings. So, we are seeing last year a

budget of $20 million or a loss, and then that

AN HON. MEMBER: (Inaudible).

MR. BALL: Okay, yes, no problem.

Page 1.3, the Servicing of Public Debt, and it is under Interest, and it is

Temporary Investments.

AN HON. MEMBER: (Inaudible).

MR. BALL: No, it is Temporary Investments, 1.1.05. It is about Provincial

Revenue, and we show a loss there.

What I am wondering is, how much is the total of this investment? Because it

looked like we had a budget last year of $20 million, it actually got revised to

$16 million, and then $17 million this year.

CHAIR: The hon. the Minister of Finance.

MR. MARSHALL: Mr. Chair, this activity reflects the estimated interest

income from the Province's program of investing its available cash balances. The

interest income earned is a combination of interest on free cash balances under

the Province's banking arrangement and interest on short-term investments in the

Canadian money market.

We budgeted last year $20,100,000 and the revised amount is $16,800,000. This

reflects lower than forecast short-term interest rates and cash balances. That

was the reason for the drop. For next year, we are estimating $17,403,000 and we

are expecting slightly higher interest rates forecast for the year 2012-2013.

AN HON. MEMBER: (Inaudible).

CHAIR: Order, please!

The Leader of the Official Opposition, again, for the purpose of

understanding the procedure we are going to follow here today, in Committee of

the Whole the first speaker gets fifteen minutes and the first speaker on the

Opposition gets fifteen minutes. Then we will go back and forth ten minutes, as

long as there is an intervening speaker.

With leave, what the Leader of the Official Opposition is saying, if you

would like to question the Minister of Finance for fifteen minutes, and then the

Leader of the NDP can have ten minutes too, then we will go ten and ten. Is that

what we are saying? Otherwise we will have to stick strictly to the rules that

are here.

MS JONES: Mr. Chair, I did not know that we needed leave. There was an

agreement that was taken between the Government House Leader, the Leader of the

Third Party, and myself as Opposition House Leader, that in Committee today we

would have the opportunity as an Opposition to question the minister on the

Estimates. As opposed to taking ten minutes each to do that, we would do each

section of the Estimates. Once we ask that question, would sit down. The

appropriate minister would stand and respond to that, the same as we do in

regular Estimate Committees outside of the House. That would alternate between

the Official Opposition and the Third Party in terms of the time.

CHAIR: For ten minutes at a time, is that what you are saying?

MS JONES: No, it may only require thirty seconds and it may require three

minutes, but it will not be ten and ten.

CHAIR: I will ask again for direction, to the Opposition House Leader. Am

I say that everybody is in agreement that if I have the Official Opposition

allot you ten minutes to question the minister, and when you are done your ten

minutes, then the Third Party can have ten minutes to question the minister? I

am not saying you have to use up ten minutes at once.

MS JONES: Okay.

MR. BALL: It is not a ten-minute question?

CHAIR: It does not have to be a ten-minute question, but I can give you

ten minutes. If that is the way everybody wants to do it, and everybody is in

agreement, that is fine.

MS JONES: It sounds fine.

Thank you.

CHAIR: Okay.

We will go back to the Leader of the Official Opposition who would have about

ten minutes left. I think we will start the clock there and when that is run

down, I will go to the NDP.

The Leader of the Official Opposition.

MR. BALL: Thank you, Mr. Chair.

That is exactly the way we expect it would happen.

What I did not get was the amount of that investment in the 1.1.05, Temporary

Investments, under the Revenue; when you respond to the next question, if you

have the total amount of that investment.

Under the next page 1.4, bullet 1.1.06, Recoveries on Loans and Advances,

what it speaks about is the appropriations provide for interest paid to the

Province on loans to various public and private entities. Last year, there was a

budget there of $1,000, the revision was around $645,000, and this year, in

Estimates, we have an estimated amount of about $1.2 million. So that is about a

$553,000 difference. Could you just give me an explanation on that, please?

CHAIR: The Minister of Finance.

MR. MARSHALL: Mr. Chair, this has to do with the Student Loan

Corporation. The heading in the Estimates is that this is an activity that

provides for interest paid to the Province on loans to various public and

private entities.

What used to happen is the Student Loan Corporation used to borrow through, I

think it was the Bank of Nova Scotia. What happened halfway through the year,

the Student Loan Corporation was in a position that it wanted to make repayment

to capital and it could not do so. It was only allowed to repayments to capital

with the Scotia Bank loan at certain times. From time to time, it would have

additional cash and it wanted to make payments on the principal.

What we did, the government paid out the Bank of Nova Scotia and we became

the lender; the government itself became the lender to the Student Loan

Corporation. That happened halfway through the year. As a result of that, we

started receiving interest. We had budgeted $1,000; that was just a place holder

to have a spot in the Estimates for it. Halfway through the year, for a

six-month period, our interest should be about $645,000, and for the annualized

amount next year it will be $1.2 million. It had to deal with excess cash that

the Student Loan Corporation had on hand; therefore, they made payments on the

loan.

CHAIR: The Leader of the Official Opposition.

MR. BALL: Okay.

On the same page there, Investment Recoveries the page I am referring to is

1.4, and the line would be 1.2.01. I refer to the Revenue Provincial. The

estimate line starts out for an estimate this year, 2012-2013, of just under $25

million. The question would be around the variance last year, in Budget

2011-2012 we had a budget of just $21,000, that went to $8 million, then this

year's budget up to just under $25 million.

CHAIR: The Minister of Finance.

MR. MARSHALL: Thank you.

Yes, that is the same thing. This is the capital side of it. It is the

activity provides for principal recovery on various loans, advances, and

investments. I guess the previous one was the interest. What is happening here

is the Student Loan Corporation owed money to the Bank of Nova Scotia, which

funded the student loan program. The corporation had excess cash and wanted to

pay on the loan. They could not do it as it was not permitted, so the government

bought out the loan and allowed the payments to be made. As a result of that

again, for 2011-2012 it was for six months, and for next year it will be for a

year and it will be $24 million.

For 2011-2012 Revised, it is higher as a result of principal payments that

were received from the Student Loan Corporation on the debt assumed by the

Province. This was not anticipated at the time the Budget was prepared. We were

not aware that we would be buying out the Bank of Nova Scotia. For next year,

the Student Loan Corporation principal repayments are expected to be

significantly higher than in the previous year.

CHAIR: The Leader of the Official Opposition.

MR. BALL: Okay, thank you.

On page 1.5, Loan Guarantees, 1.4.01,Guarantee Fees, "Appropriations provide

for fees charged to private companies which have debt guaranteed by the Province

and costs related to the collection of loans and guarantees." There under line

item 02, Revenue Provincial, we see last year in budget, $105,000, that was

revised to just under $7.6 million, and this year down to $3.5 million. I am

just wondering how much of this is related to the cost of collection or just a

line explanation of that line?

CHAIR: The hon. the Minister of Finance.

MR. MARSHALL: Thank you, Mr. Chair.

1.4.01 is $50,000, and that is a line item; that is a Budget amount in case

the Province has to exercise its security. If the Province pays on a guarantee

it then becomes subrogated to the security that was given to the person who held

the guarantee or was the lender. This would cover any monies that might be

needed. This is contingency, really, to cover monies that might be needed to pay

lawyers, or to pay receivers, or to pay sheriffs, or the hiring of a consultant.

On the next one, which is 1.4.01.02, which is provincial revenue, this

represents guarantee fees that were charged to private companies which received

provincial loan guarantees. In exchange for the Province giving the lender the

guarantee, the borrower pays the Province a guarantee fee. Last year, in

2011-2012, it was budgeted at $105,000 and it turned into $7.6 million. That

amount is higher because of the receipt of two years worth of guarantees from

Newfoundland and Labrador Hydro in March 2012.

That was offset by the fact that Gray Aqua Group no longer required a

provincial loan guarantee and therefore did not pay the fee. For 2012-2013, for

this budgeted year, the Estimate of $3.5 million consists of fees charged to

Newfoundland and Labrador Hydro. Basically what happened is that the guarantee

fee was reviewed, it was felt that the amount was too high, and therefore a new

guarantee fee of $3.5 million was agreed to.

CHAIR: The hon. the Leader of the Official Opposition.

MR. BALL: Thank you, Mr. Chair.

Is there any idea what the size of the guarantee loan would be to

Newfoundland Hydro?

CHAIR: The hon. the Minister of Finance.

MR. MARSHALL: We will get that information. So, get it.

CHAIR: The hon. the Leader of the Official Opposition.

MR. BALL: Yes, okay, so it is page 1.7, this has to do with the Employee

Retirement Arrangements.

MR. MARSHALL: Do you want to (inaudible)?

MR. BALL: Pardon me?

MR. MARSHALL: (Inaudible).

MR. BALL: Yes, sure.

MR. MARSHALL: There are one, two, three, four.

CHAIR: The hon. the Minister of Finance.

MR. MARSHALL: Yes, thank you, Mr. Chair.

There are five companies that are paying guarantee fees. They are the Fogo

Island Co-op Limited, Smith Seafoods Limited, Torngat Fish Producers

Co-operative, and Newfoundland and Labrador Hydro.

CHAIR: The hon. the Leader of the Official Opposition.

MR. BALL: Thank you, Mr. Chair.

Moving on to page 1.7, the Employee Retirement Arrangements, the question

there would be around 2.1.02, the Ex-Gratia and Other Payments Non-Statutory.

These refer to appropriations to provide for special retirement and other

payments as provided by Treasury Board. As required, funding will be transferred

to departments during the year.

How many people would be involved in line item 02, which is the Employee

Benefit piece of it? Last year we had a budget of $4.2 million. That got revised

to about $2.8 million; this year it is up to $10 million. I am just wondering

what the magnitude, how many people would be involved? Is this all management or

versus staff?

CHAIR: The hon. the Minister of Finance.

MR. MARSHALL: Mr. Chair, 2.1.02 is Employee Benefits. It is under the

heading called Ex-Gratia and Other Payments Non Statutory. The payments

include the cost of redundancy pensions that were granted in the fiscal year

1991-1992 as part of downsizing. In addition, there are ex-gratia payments for

Waterford Hospital employees who retired under the Hartt arbitration award.

There are also payments of benefits for widows of deceased pensioners who did

not have survivor benefits. There are also injury on duty awards and special

awards granted by Cabinet on an individual basis. There is also provision for

severance awards and they result from restructuring in government agencies that

would be transferred to departments during the year as required.

For 2011-2012, the revised amount is lower than was budgeted mainly as a

result of severance, pay equity and other reduced to zero due to no

anticipated distributions in this account to various government departments.

Benefits under ex-gratia under the Hartt and redundancy were higher than

budgeted and were partially offset by decreases in widows and the Workers'

Compensation due to slower attrition. The increase in the Estimates for this

year is higher than 2011-2012, mainly due to increase in the provisions for

severance. There is also an increase in the provision for ex-gratia and Hartt

Report benefits.

The severance is a new contract we signed with the RCMP. The federal

government, I believe, made arrangements with all its employees that severance

would not grow any further, and that federal employees were entitled to get

their severance now. So, the RCMP will be eligible to take severance now, under

the new federal agreement.

I just want to mention the Hartt Report; the enhancements given under the

Hartt Report were never funded. The pension was never funded; therefore, the

money comes out of here. The other thing I should say that I have been advised

is that over the past eight years my officials are not aware of any further ex

gratia payments under this section.

CHAIR: The Leader of the Third Party.

MS MICHAEL: Thank you very much, Mr. Chair.

In the same section, Minister, Employee Retirement Arrangements, on page 1.7,

section 2.1.01, Contributions to Pensions I will make sure you have it before

I continue. Mr. Chair, 2.1.01, Contributions to Pensions, I just want to make

sure that I understand this section. So, I take it this is referring, of course,

to the public pension, the contributions to the public pension. I wonder could

you give us an explanation of 02, Revenue, that whole line there, if you could

explain that to me. Are we talking here about the amount of money the government

will owe to the pension this year? Is that what the figures signify?

MR. MARSHALL: (Inaudible).

MS MICHAEL: Yes, please, if you could explain that.

CHAIR: Order, please!

The hon. the Minister of Finance.

MR. MARSHALL: Thank you, Mr. Chair.

The activity provides for government's share of pension contributions under

those pension plans which form part of the Pensions Funding Act, and payments

under other supplementary arrangements. I have them listed here for the year

2012-2013. The Public Service Pension Plan is $33 million, approximately

MS MICHAEL: (Inaudible).

MR. MARSHALL: Back up?

Okay, the heading is 2.1.01 and it is Contributions to Pensions. Then it is

02, Employee Benefits, and it is $90,314,900 for this coming year. That is the

Province's share of the pension contributions to the various pension plans for

its employees, the pension plans under the Pensions Funding Act, and payments

under other supplementary arrangements.

For 2011-2012, the year that has just ended, there was a revision of about a

four-point-something million dollar drop. I am sorry, I have it reversed. It was

an increase. The revised contributions were greater than budgeted, the MHA plan

contributions were slightly less than budgeted, and the higher Provincial Court

Judges' Pension Plan contributions were due to retroactive salary increases for

judges affected April 2009.

For this year's budget, the estimate is slightly lower than 2011-2012

projected revised, due to anticipated lower contributions under the Public

Service Pension Plan, the Provincial Court Judges' Pension Plan, and the I am

drawing a blank here GMPP.

AN HON. MEMBER: Group money purchase plan.

MR. MARSHALL: The group money purchase plan that is a defined

contribution plan. Offset by higher anticipated contributions under the

Teachers' Pension Plan, the Uniformed Services Pension Plan, and the MHA Pension

Plan. If you like, I can go down and tell you what the contribution is for each

plan, or is that really necessary?

MS MICHAEL: (Inaudible).

MR. MARSHALL: Thank you, Mr. Chair.

CHAIR: Order, please!

The Leader of the Third Party.

MS MICHAEL: Thank you.

If we could, Minister, that was the Employee Benefits that you just outlined,

right? Now, in the next line, Revenue Provincial, it looks like we are in the

hole by $480,000 budgeted in 2011, then revised up to $816,300, and then back

down to $480,000. Could you explain what that provincial revenue means and why

it was revised up last year?

CHAIR: Order, please!

The hon. the Minister of Finance.

MR. MARSHALL: Thank you, Mr. Chair.

This activity provides for the reimbursement of government's matching pension

contributions for employees of the Pensions Administration Division and for

contributions paid by employees on the portion of salaries that exceed the

maximum pensionable salary under the Income Tax Act of Canada.

Do you have that wording?

MS MICHAEL: No, I do not have that wording (inaudible)

CHAIR: Order, please!

The hon. the Minister of Finance.

MR. MARSHALL: For last year, the 2011-2012 Revised is higher than Budget

mainly due to increased revenue received related to employees' contributions

under three of the plans in excess of the maximum amounts that are permitted to

be paid into a Registered Pension Plan under the Income Tax Act, including some

prior year's adjustment. For 2012-2013, $130,000 represents recovery of

government personnel costs from the Newfoundland and Labrador Pooled Pension

Fund for the employees of the pension's administration division. The costs of

operating the division are paid by the fund, and $350,000 represents revenue

from the employee contributions that exceed the maximum income permitted under

the Income Tax Act. It goes back to government.

CHAIR: The Leader of the Third Party.

MS MICHAEL: Thank you.

If you could, Minister, this is not a line but it is related to the

contributions to pensions. We know that the unfunded liability with regard to

the public pension is an issue that you are dealing with. I am just wondering if

you could give us an idea of what your plan is, not just for this year, but I

know that you have a multi-year plan with regard to dealing with the unfunded

liability. Could you give us some information on that today?

CHAIR: The hon. the Minister of Finance.

MR. MARSHALL: Do you have a couple of days? We are working on a plan. It

is very complex; there is a lot of information out and about. New Brunswick has

a commission that is out. I think we are going to wait for them to report. That

will inform us and help us in how we want to go forward. For this year we are

planning to make a contribution to the plan. We made a commitment we would put

an amount equivalent to one-third of any surplus, that we would put that in the

pension fund. There are so many things happening out there in pensions. The

federal government is raising eligibility age in the private sector.

SOME HON. MEMBERS: Oh, oh!

CHAIR: Order, please!

MR. MARSHALL: I always use the example of Nortel, now it is closer to

home unfortunately. What would happen if there is an unfunded pension liability

or a deficit in the pension plan and the employer should happen to go into

bankruptcy? The devastating effect that would have on employees and pensioners

who would normally retire with a very generous, defined benefit pension plan,

and to have it cut because of the bankruptcy of the employer, that would be

quite devastating.

Then there is what we should do with our Public Sector Pension Plans. They

are wonderful pension plans. They provide people with the dignity of a decent

retirement which many people in the private sector do not have. What should we

do?

The governments of the Province, I think since 1997, have contributed $4.4

billion I think that number is correct in special payments over and above

the regular payments. We plan to make an additional $258 million to try to keep

the pension plan funded. It can all change very quickly. If interest rates go up

then everything gets a lot better. To tell you now, I just cannot do it, but

hopefully in the not too distant future we will be able to announce something

and we are always open for suggestions.

CHAIR: The Leader of the Third Party.

MS MICHAEL: Just one comment there, Mr. Chair, and then that is all I

have under Consolidated Fund Services. It would be fair to say that the

short-term plan is when there is a surplus taking one-third of that surplus and

putting it into the unfunded liability? Is that sort of the short-term plan?

CHAIR: The hon. the Minister of Finance.

MR. MARSHALL: The commitment we made was to put the equivalent of

one-third.

CHAIR: The hon. the Opposition House Leader.

MS JONES: Thank you, Mr. Chair.

I am going to move on now to the Estimates on the Executive Council. I think

we have covered most of the things under the Consolidated Revenue. If, when the

Leader of the Opposition returns, he may have some other questions, I am sure

the minister would not mind going back there.

We will start under Executive Council, probably with the expenditure in the

Premier's Office first. Under the Salaries in the Premier's Office, 2.1.01, it

was budgeted for $1.6 million last year, it was $1,670,000, but they spent $1.7

million. I am just wondering what the extra money was, if it was for severances

or something of that nature, and if you can tell me how many employees this

salary would cover?

CHAIR: The hon. the Minister of Finance.

MR. MARSHALL: Thank you, Mr. Chair.

The Budget amount, as the Government House Leader indicated, was about

$1,670,100 and the revised amount was $1.7 million. That reflects an increase of

$29,900, and that indeed was for severance and leave payouts for two officials.

The estimate for 2012-2013 is the normal estimate. I am advised that there are

twenty-one staffing positions, including the Premier, the Premier's

Parliamentary Secretary, and the constituency assistant to the parliamentary

secretary. Only eighteen of those twenty-one positions are filled.

CHAIR: The Opposition House Leader.

MS JONES: I think the Minister said eighteen of the twenty-one are

filled? Yes.

The Premier's Office as well had offices in Corner Brook and Happy

Valley-Goose Bay. I am not sure if those offices are still open or if they are

still staffed. Maybe you can tell me what the situation is with both of those

offices right now.

CHAIR: The hon. the Minister of Finance.

MR. MARSHALL: I am aware, personally, that the Corner Brook office is

open. There is an executive assistant to the Premier for Corner Brook there and

her assistant. With respect to the Labrador office, I understand the executive

assistant for Labrador, that position is presently vacant. I am not aware of

whether there is other staff in the office, but I will undertake to get that

information as quickly as possible.

CHAIR: The Opposition House Leader.

MS JONES: Also, under the Premier's Office there is a budget for

Allowances and Assistance, it is $20,000. I am not sure what that revenue is

used for, maybe you could explain that to me.

The other thing under that office is the Purchased Services of $34,500. I am

wondering: Normally, what would those purchased services be that would account

for that amount of money?

CHAIR: The hon. the Minister of Finance.

MR. MARSHALL: Thank you, Mr. Chair.

The Purchased Services, as the Government House Leader pointed out, is

$34,500 for the year. That will consist mainly of advertising. Advertising is

the largest amount at $5,900 approximately. There is entertainment at $2,781;

there is printing at $7,017; there are coffee charges of $16; there are moving

expenses of $177. These are for fiscal 2011-2012. There are flower arrangements

at $1,134; there is photography services of $60; there are meeting expenses of

$402; there is meeting room rental of $413; there is courier and delivery

charges of $212; there are taxi charges of $387; subscriptions, $199;

miscellaneous of $91; and projected but not expended, $15,732.

Allowances and Assistance, which is 2.1.01.09, is $20,000. This is an

allowance paid to the Premier in lieu of the provision of a residence at public

expense, pursuant to Minute of Council 551-90. This amount is the same as it was

last year.

CHAIR: The Opposition House Leader.

MS JONES: Thank you, Mr. Chair.

Mr. Chair, I think it was well over a year ago there was some issue with the

Premier needing security because of some particular incidents that were

happening. I am not sure if that is still the case, if that is still required or

if it isn't, and if it is usually budgeted under this

section or if it would be

budgeted under another section.

CHAIR: The hon. the Minister of Finance.

MR. MARSHALL: Mr. Chair, I will have to seek information on that and get

back to the hon. member.

CHAIR: The Opposition House Leader.

MS JONES: Thank you, Mr. Chair.

I know the minister will get back to me on that for sure.

I am going to move on to Executive Support, 2.2.01. Again, under Executive

Support last year there was a budget of $1.5 million, actually $1,569,700. There

was nearly $2 million spent in salaries in that office. I would like to have an

explanation for that, what the increase was, what additional positions were

created or if it was paid out in some kind of severances or packages?

Also, if you can explain to me as well what the cost expenditure was under

Professional Services. They had originally budgeted $30,000. They spent almost

$178,000, which was quite a substantial difference in the expenditure there. I

would appreciate an explanation of that and an accounting for that expenditure.

CHAIR: Order, please!

The hon. the Minister of Finance.

MR. MARSHALL: Mr. Chair, this is item 2.2.01, Executive Support. That is

in the Office of the Executive Council, Cabinet Secretariat. In 2011-2012, the

budgeted amount for salaries was about $1.6 million and the amount spent was

about $376,100 more than that. That reflects an overrun of, as I said, $376,100.

It is attributable to severance and leave costs for two retiring employees. With

respect to one, it was $102,700, and with the other it was $87,500. Also, there

was a deputy minister's performance evaluation and there were salary costs

associated with a Deputy Minister of Special Projects position, which had not

been budgeted for. For this year, the amount will be unchanged from what was

originally budgeted, the $1,569,700.

With respect to Professional Services, the budgeted amount was $30,000 and

the revised amount is $177,900. That is an increase of $147,900. Professional

Services is anticipated professional and specialized consultant services in

support of the Clerk's role as it relates to the Cabinet process and/or the

professional development of senior executives within government. There was in

fact $183,000 worth of professional services expenditures. There was a

consultant who looked at the communications review. That was Fleishman-Hillard

Canada Inc., and there was Deloitte Inc. and Wayne Thistle as well who were

consultants hired by Executive Council during 2011-2012.

CHAIR: Order, please!

That would be ten minutes, I say to the Opposition House Leader.

The Opposition House Leader.

MS JONES: Thank you, Mr. Chair.

The severance and leave costs you outlined, you said it was $376,000. As

well, in the Premier's Office there were severance and leave costs as well. Can

you tell me what positions these were that were vacated? What people left? If

you could give me an accounting of that, that would be great, and a breakdown.

CHAIR: The hon. the Minister of Finance.

MR. MARSHALL: I cannot tell you the positions they held. I can tell you

the names of the two employees, but I do not know if that is appropriate. They

were

AN HON. MEMBER: (Inaudible).

MR. MARSHALL: No, no, these are in Cabinet Secretariat. These are civil

servants.

CHAIR: Order, please!

MR. MARSHALL: There were two people who retired from Cabinet Secretariat.

There was a deputy minister's performance evaluation, and there were salary

costs associated with the Deputy Minister of Special Projects position. That was

$107,400 and it had not been budgeted for.

CHAIR: Order, please!

The Leader of the Third Party.

MS MICHAEL: Thank you, Mr. Chair.

The same section, Office of the Executive Council,

section 2.2.03, Provincial

Government Programs Office.

SOME HON. MEMBERS: Oh, oh!

CHAIR: Order, please!

I would ask members for their co-operation please. The Chair is having

difficulty hearing the speaker.

MS MICHAEL: Minister, you have it, do you? Okay, I have a couple of line

questions first and then I have a couple of overall questions. The first has to

do with the 01, Salaries. Last year the budget was $225,500. It was revised down

to $219,600. So I would like an explanation of that slight revision; it is not a

lot. Then this year there is a major difference and the salaries this year will

be $470,500, so if we could have an explanation.

CHAIR: The hon. the Minister of Finance.

MR. MARSHALL: Thank you, Mr. Chair.

The reason for that increase is that there is a new office involved and this

is a combination of two offices now. Previously, there was the Provincial

Government Programs Office and that was Donna Brewer's shop. That particular

division worked with departments to implement government's policy on evaluation.

Through this work the government will enhance its performance monitoring and

evaluation of government programs to see if they are still effective. This year

the core mandate analyst's office is going to be joined with that. So the salary

for the Provincial Government Programs Office is still $225,000, but added to

that now is the salary for the Core Mandate Office, which is $245,000, and that

is a one-year program. It is being implemented on a one-time basis during this

coming year, 2012-2013. It is to deliver comprehensive and thorough examination

of provincial programs and services. It will determine which programs and

services are consistent with the core mandates of each of the departments or

entities or its affiliated agencies, boards, or commissions. It will also

determine options for more innovative and efficient program and service

delivery. The CMA Office is set up to develop guidelines and review departmental

proposals, and the office will consist of three staff.

CHAIR: Order, please!

The hon. the Leader of the Third Party.

MS MICHAEL: Could I ask you then, Minister it is good to know where

that is coming from, and you certainly have announced earlier in the House this

whole thing of looking at the core mandate; will the three staff in that

one-year office be public servants who are already on staff, or will they be new

people?

CHAIR: Order, please!

Would the Leader of the Third Party like to continue while the minister is

looking for his materials?

MS MICHAEL: Sure, because I do have another line item there, but I do not

want to distract the minister while he is looking for the answer. I would like

to know what line 05 is about, Professional Services, $181,000, when no money

was spent last year in Professional Services, though money was budgeted. That

might be related to this same thing, I do not know, but I would like an

explanation of what this office is and who the personnel are. I do not mean in

terms of the individual names, but where they are coming from; are they coming

from inside, or are they external? Is the Professional Services line related to

this core mandate study?

Maybe the minister is ready now.

CHAIR: Order, please!

The hon. the Minister of Finance.

MR. MARSHALL: Before I answer that, I will answer a couple of previous

questions.

The guarantee on Hydro, as I said previously, this is the guarantee fee for

government's guarantee of Hydro's market debt; the question was: what is the

amount of that debt. I am advised that the debt is approximately $1.1 to $1.2

billion per year.

With respect to security, the question asked by the Government House Leader,

there is no specific budget for the Premier's personal security; it would be a

part of the RNC's total budget.

CHAIR: Order, please!

The hon. the Minister of Finance.

MR. MARSHALL: I wonder if I could ask the Leader of the NDP, was it

Professional Services, or

CHAIR: The hon. the Leader of the Third Party.

MS MICHAEL: Yes, Professional Services, but I also was wanting to know if

the three staff people in the CMA, the one-year CMA office, were internal or

external to the government.

CHAIR: The hon. the Minister of Finance.

MR. MARSHALL: The Professional Services, it is a total of $181; that is

all attributable to the Provincial Government Program Office. There is nothing

allocated for Professional Services in the core mandate analysis office.

As to the staff, I believe they are seconded, but I will have to get

confirmation on that.

CHAIR: The hon. the Leader of the Third Party.

MS MICHAEL: Thank you.

We might be able to get that before the afternoon is out, because I would

like to have the answer to that.

This is a broader question, but related to this, Minister, because the

Provincial Government Programs Office provides for the coordination and

implementation of government-wide evaluation practices and includes support to

strengthen the policy and evaluation capacity of government.

I am just curious why when it was deemed necessary to have somebody to work

with the Advanced Education and Skills department, as they look at how they are

structuring themselves and evaluating how they are structuring this programs

office, the Provincial Government Programs Office, could not have done that.

Rather than hiring the former Auditor General, John Noseworthy, to come in and

do it, why couldn't this office, which seems to me would be set up to do this

kind of thing why could it not have been done under this office?

CHAIR: Order, please!

The hon. the Minister of Finance.

MR. MARSHALL: First of all, look how fast they are. The three staff are

seconded from other departments within government; two are from Cabinet

Secretariat, and one from the Department of Finance.

The Provincial Government Programs Office is an office within the Cabient

Secretariat, obviously; it was established in 2009 to build an evaluative

management culture across government. Its primary role is to focus on the

department's efforts to improve the efficiency and the effectiveness of programs

that are offered. Many programs have been around for many years. Maybe it is

time, when you do the proper analysis, they can move on; maybe there is

something that is more important to us, more important to the people of the

Province, and would be a higher priority. I know during the discussion about

health care today, with the aging population, as the baby boomers continue to

age there is going to be a massive influx accessing that health care system. To

find the resources to deal with that, I think we are going to have to be

innovative and find better ways of doing the things we do to try to provide

services without affecting the quality, with less money; try to be innovative.

This office is going to look at a number of those programs and help us make that

decision.

There have been improvements in the transparency and accountability through

the Transparency and Accountability Act. To further our accountability to

taxpayers, we need to be able to demonstrate that the policies and programs we

are delivering, and which they are paying for, are in fact making a difference,

and that they are relevant, they are effective, and they are citizen oriented

and they are efficient. These evaluation findings support Cabinet decision

making and will thus help the Office of the Executive Council achieve its

mandate, which is to support the Premier and the work of Cabinet and its

committees. Through the policy work of the office, Cabinet has adopted a

corporate policy on evaluation, which will require that departments identify

evaluation priorities. That is, what policies and what programs would benefit

most from being assessed using performance monitoring and evaluation.

The Provincial Government Programs Office, which is headed by Donna Brewer,

will work within and across government departments to enhance our policy and

evaluation capacity. Over time, we hope to see an increase in both the number

and the quality of evaluations, and that the findings from these evaluations are

used to improve efficiency and enhance effectiveness of policies and programs.

I do not think that answers your question, but I have said what I had to say.

CHAIR: The Leader of the Third Party.

MS MICHAEL: Thank you, Mr. Chair.

You said what they wrote for you, Mr. Minister.

I would like to come back to the salaries for a minute. Let's say $225,000,

let's stick with that, which was the budget last year, or the $219,000. That

would be for the permanent office, and then two-hundred and forty-something

would be for the one year office. When I come to the book of Salary Details

and now you are saying, why did we print that book for them? On page 3 of the

Salary Details for this Budget, Departmental Salary Details, it indicates only

$79,374 as being permanent. Permanent employees, it is $79,374; other, which

usually means temporary, $391,126, giving us the $470,500. Why would not people

in the Programs Office, the permanent office have more permanent people working

in it?

AN HON. MEMBER: What page is this?

MS MICHAEL: It is on page 3 of the Salary Details. It is the fifth item

down from the top.

AN HON. MEMBER: (Inaudible).

MS MICHAEL: You only have $79,000 for a permanent employee and all the

rest is temporary; yet, there are only three people who are in the temporary

office.

CHAIR: The hon. the Minister of Finance.

MR. MARSHALL: The salary costs are the two program officers of the

Provincial Government Programs. They are temporary positions, and the three

staff seconded to the CMA office. There are no permanent employees. There are

temporary and other employees; it will be $470,500 this year. There is no

contractual, and there is nothing else. The total amount is the temporary

employees.

MS MICHAEL: (Inaudible).

MR. MARSHALL: They are all seconded in the CMA office but I do not know

about the Provincial Government Programs. I can find that out, whether they are

seconded or not.

CHAIR: We will now go to the Official Opposition for ten minutes.

MS MICHAEL: Can I just make one comment, Mr. Chair?

CHAIR: That is fine.

The Leader of the Third Party.

MS MICHAEL: I would appreciate the minister letting us know why the

people in the permanent office are not permanent staff because there is only

$79,000 there for permanent. I would be curious. I understand why in the CMA

office they are not because they are seconded, but I would like at some point to

get an answer as to why more of the $219,000-plus is not permanent.

Thank you.

CHAIR: The hon. the Opposition House Leader.

MS JONES: Thank you, Mr. Chair.

I just wanted to pick up, Minister, on that same section, 2.2.03, where you

talked about the Provincial Government Programs Office and how the office that

is responsible for the core mandate review is now being amalgamated into those

particular Estimates there. I do not know if I might have missed something,

between the dialogue that has already been going on - and if I did, I apologize

but I think you said there are a number of programs across government that are

being reviewed.

I am wondering if you can provide for us a list of what programs are being

reviewed currently, or which ones have already been reviewed and, also, if you

could outline for us what the Grants and Subsidies were under that particular

heading in the last year. There was nothing budgeted, but I noticed that they

did spend $54,000. This year they only budgeted $6,000. I am not really sure

what that money was used for. As I said, if you have already responded to that,

I do apologize, but if you could just give me some idea of what reviews are

going to be done, if they are selective, if there is a short list, or however

that works, and what the Grants and Subsidies were.

CHAIR: The hon. the Minister of Finance.

MR. MARSHALL: Thank you, Mr. Chair.

I will have to get that information on which programs have been evaluated.

With respect to Grants and Subsidies, there was zero budgeted and the revised

amount is $54,000, so there was any increase of $54,000. This reflects a grant

contribution to the Community Sector Council to proceed with the Social Return

on Investment pilot. For the Estimates this year, there is a $6,000 allocation

there. That is funding reallocated from Professional Services from 2012-2013

only to pay out the remainder of the grant to the Community Sector Council for

the Social Return on Investment pilot. The total investment over two years will

be $60,000.

The Social Return on Investment pilot is an evaluation tool used by the

United Kingdom Third Sector to document the social, economic, and environmental

impact a community organization or one of its programs is having on society. The

Community Sector Council, with funding support from the Province and also from

ACOA, is piloting the use of this tool with thirteen community organizations and

one provincial government program.

There was a $249,000 pilot. The Province is committed to $60,000. ACOA is

providing $149,000. The Community Sector Council is providing $40,000, generated

through participant fees. There are eleven community sector organizations

participating, the CSC and a provincial government department. The twelve-month

pilot will allow organizations to participate in the training, identify and

collect appropriate data.

To date, as part of the pilot, the New Economics Foundation, which is an

independent, non-profit think-tank based in London, England, has also provided

two information sessions for government employees outlining the approach and the

methodology. The pilot remains a work in progress and the organization will

require into the fall to complete their work. The Community Sector Council

advises that many of the organizations have exhibited a very high level of

enthusiasm and organizational learning and have already incorporated program

improvements.

The SROI is a set of analytical tools that addresses a common struggle in the

community sector. These organizations need to demonstrate the value of their

programs in order to successfully access funding. The tools are used to

understand, to quantify, and to express, in monetary terms, the economic,

social, and environment impact an organization has in the world. SROI uses a

cost-benefit analysis.

The pilot will help us better understand this tool, the level of audit and

assurance provided by the New Economics Foundation and what level of audit

assurance is required before a funder can rely on the data used in the analysis.

If this pilot proves SROI to be a rigorous and reliable tool, government is in a

better position to make evidence-based decisions on any future funding proposal

for these organizations. A positive SROI, while helpful, will not be the only

factor in deciding a government's budget priorities.

Does that answer it? I can keep going.

CHAIR: Order, please!

The Opposition House Leader.

MS JONES: Thank you, Mr. Chair.

If there is a list of the organizations, the eleven that are actually being

reviewed, Mr. Chair, as part of this social audit for return on investment,

maybe the minister could provide that to me.

In the meantime, when I finished last time, before we switched to the Third

Party, I was on

section 2.2.01. I had just finished asking the minister a

question with regard to 05, Professional Services.

AN HON. MEMBER: (Inaudible).

MS JONES: Yes, 2.2.01.

You were giving me a breakdown of the Professional Services, the $177,900. I

know you listed a couple of companies that were contracted, but I did not get

all of the names, nor did I get the reasons that they were contracted, what the

professional services were for. So, I was wondering if you could provide that to

me.

Also, I noticed in that section, last year there was $23,500 on Property and

Furnishings and this year there is $61,800; I am just wondering if there is some

renovation work or something going on there that we were allocating additional

monies for.

CHAIR: The hon. the Minister of Finance.

MR. MARSHALL: I will have to get you the information on what the studies

were about. One of them was a contract to a firm called Fleishman-Hillard, which

was required to do an audit of government's communication functions and

activities, and then the other two, we will find that information out.

With respect to Property and Furnishings, we are still in the Executive

Council, Cabinet Secretariat; are we talking about the increase from $2,000 to

$23,500?

MS JONES: Yes. (Inaudible).

MR. MARSHALL: This is an overrun of $21,500: the purchase of a

photocopier, iPads, crosscut shredder, and various Blackberries. For next year,

there is going to be money for furnishings and equipment for offices and meeting

spaces under the jurisdiction of Cabinet.

CHAIR: Order, please!

The hon. the Leader of the Official Opposition.

MR. BALL: Thank you, Mr. Chair.

Move over to page 2.6, the Office of Climate Change, Energy Efficiency, and

Emissions Trading, 2.2.05, and the salary line, 01. Salaries.

MR. MARSHALL: Could you say that again?

MR. BALL: Okay, it will be 2.6, and it is bullet point 2.5.05, the Office

of Climate Change, under the Office of Executive Council, Office of Climate

Change, Energy Efficiency, and Emissions Trading.

CHAIR: Order, please!

I think the Leader of the Official Opposition said 2.6.05, but you may have

meant 2.2.05.

MR. BALL: No, page 2.6, and the bullet yes.

CHAIR: Is 2.2.05 right?

MR. BALL: Yes.

Okay, the question is under Salaries; budget $806,000 last year, actual spent

was $509,000, and we are back to $796,000 this year, so just to get an

explanation of that, please.

MR. MARSHALL: 2.2.05, 01. Salaries, there was a budgeted amount of

$806,000 and only $509,000 was spent. That is $296,800 and that was due to

vacant positions throughout the year. For next year, it will be $796,000, which

is the anticipated expenditure for this year, as these positions have been

filled, but the amount will be reduced by 3 per cent through the government's

cost savings initiative.

CHAIR: Order, please!

The hon. the Minister of Finance.

MR. MARSHALL: If I could just finish, we can say for sure we have a very

efficient public service out there. The thirteen organizations: Avalon

Employment Inc. in St. John's; the Community Employment Corporation of Port aux

Basques; Community Education Network of Stephenville; the Canadian Hard of

Hearing Association in St. John's; the Dunfield Park Community Centre in Corner

Brook; the Gros Morne Co-operating Association of Rocky Harbour; the Food

Security Network; the Labrador Friendship Centre in Goose Bay; School Sports

Newfoundland in St. John's; Student Work and Service Program, a CSC program in

St. John's; the St. Anthony Basin Resources Inc. in St. Anthony; the Canadian

National Institute for the Blind in St. John's and Toronto; and the Office of

Immigration and Multiculturalism, which is the government program in St. John's.

CHAIR: Order, please!

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

MR. MURPHY: To carry on with

section 2.2.05, Office of Climate Change,

Energy Efficiency and Emissions Trading, line 05. Professional Services budgeted

$450,000, overspent $648,400, and the estimated amount this year is $280,000. I

am just wondering if we can get an explanation on that.

SOME HON. MEMBERS: Oh, oh!

CHAIR: Order, please!

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

MR. MURPHY:

Section 2.2.05, Minister, and in line 05. I am just wondering

if we can get an explanation on that $450,000 budgeted, $648,400 was the actual,

and $280,000 budgeted for this year.

CHAIR: The hon. the Minister of Finance.

MR. MARSHALL: Thank you, Mr. Chair.

2.2.05.05. Professional Services; the budget amount for last year 2011-2012

was $450,000. The revised amount was up by $198,400. The overrun was due to a

requirement for a highly-technical analysis on the technological opportunities

to reduce greenhouse gas emissions from the offshore and the mining sectors.

This was not originally planned for 2011, but it was brought forward following

the federal government's initiation of work to develop greenhouse gas

regulations for key parts of the industrial sector. The work will inform

provincial policy development and facilitate engagement with the federal

government. The expertise required to do the analysis rests outside government

with technical industry experts. The oil and mining companies in Newfoundland

and Labrador are supportive of this work and are feeding into it. The work will

be completed in 2012-2013.

This is a listing of professional services expenditures in 2011-2012. There

was a public awareness campaign on climate change and energy efficiency to

develop tag line videos, TV adverts and print adverts through m5 Marketing

Communications that was $162,888. There was design and construction of a Web

site for a public awareness campaign; it was the Pixel Shop, at $42,840. There

was a deployment strategy for a public awareness campaign to maximize impact

with Spark Marketing, $22,760. There was baseline survey of awareness, attitudes

and public engagement, that was MarketQuest research group $24,276.

There was a study to recommend methodologies to forecast and measure outcomes

of initiatives to promote energy efficiency and, or reduce greenhouse gas

emissions, that was Navigant consulting, $39,430. There was a study to determine

potential opportunities to enhance energy efficiency programming in Newfoundland

and Labrador; that was IndEco Strategic Consulting Inc., $37,692. There was a

study of climate change monitoring capabilities in Newfoundland and Labrador,

the green economy project; that was AMEC Americas Limited and Global Advisors

Limited, $53,336 and $8,849 respectively.

There was a subscription renewal to the IISD, October 2011 to September 2012,

and that is the International Institute for SD, that is $6,000; the subscription

renewal to the Carbon Market News, point carbon, $849; a technical review of

greenhouse gas abatement opportunities in mining, ICF Consulting Canada Inc.,

$120,791; technical analysis of greenhouse gas abatement opportunities in

offshore oil, AMEC Americas Limited, $124,546.

CHAIR: The Member for St. John's East.

MR. MURPHY: Thank you, Mr. Chair.

I do not know if we can get an update on some of the programs that the office

has been undertaking recently, Mr. Chair. I guess I will put the question out

anyway. I am wondering what the progress is of the Climate Change Strategy,

particularly as it comes to dealing with the work that they were talking about

in the Budget last year when it came to coastal erosion, the flood risk mapping

and that sort of thing, data collection and analysis of precipitation,

temperature trends, and the awareness campaign. I do not know if he can get into

that in any kind of regard, but I do know that it is of interest, of course, to

the general population out there in the Province.

CHAIR: The hon. the Minister of Finance.

MR. MARSHALL: You may regret that question.

Mr. Chair, our government believes very strongly that climate change is one

of the most serious long-term threats facing our planet today. So the Office of

Climate Change, Energy Efficiency and Emissions Trading will cease it. It was

established in 2009 as a central agency within the Executive Council. The office

is responsible for four lines of business relevant to its mandate: to develop

policies and strategies and advice for the strengthening of the evidence base

for analysis and research to support sound decision making; to provide expert

support to departments and co-ordinate across government; to represent our

Province in regional, national, and international forums; and engaging external

stakeholders, including industry academies and non-government organizations.

As I said, climate change is a serious long-term threat that is affecting the

planet today. The science is clear. The Intergovernmental Panel on Climate

Change, the world's most authoritative source of information on climate change,

has concluded that it is unequivocal that climate change is happening and that

there is over a 90 per cent probability that it is due to the release of

greenhouse gases from human activity. The average global surface temperatures

have risen by 0.6 degrees centigrade since 1900, and nine of the hottest ten

years since records began in 1861 have all occurred in this decade; the other

year was 1998. So, global greenhouse gas emissions grew by over 70 per cent

between 1970 and 2004, and they continue to rise.

So, responding to climate change is a complex challenge, and has two equally

important parts. First of all, we have to adapt to what are unavoidable impacts

of climate change, and two, we have to reduce greenhouse gas emissions to limit

or avoid potential impacts of climate change in the future. So government,

through the OCEETT office, released a 2011 Climate Change Action Plan, and the

government set out its strategic approach to tackling climate change. The plan

sets out the government's vision and goals over the next five years, alongside

commitments for action right across the economy.

Now, I do n