Newfoundland and Labrador Hansard — Members' Statements; Statements by Ministers — 4 June 2008 (46th General Assembly, 1st Session, Vol. XLVI No. 38)
2008-06-04
Newfoundland and Labrador — Debates (Hansard)
June
4, 2008
HOUSE OF ASSEMBLY PROCEEDINGS
Vol. XLVI No. 38
The House met at 2:00 p.m.
MR. SPEAKER (Fitzgerald): Admit strangers.
Statements by Members
MR. SPEAKER: Order, please!
Today we welcome the following members' statements: the hon. the Member for
the District of Port de Grave; the hon. the Member for the District of Bellevue;
the hon. the Member for the District of Kilbride; the hon. the Member for the
District of Humber Valley; the hon. the Member for the District of Mount Pearl
North; and, the hon. the Member for the District of Grand Falls-Windsor-Buchans.
The hon. the Member for the District of Port de Grave.
MR. BUTLER: Mr. Speaker, I am delighted to stand today to congratulate
Mr. Eric Jerrett and the Bay Roberts Heritage Society on the wonderful occasion
of establishing the Western Union Cable Building in Bay Roberts as a designated
National Historic Site.
This accomplishment has taken many years of dedication, perseverance and hard
work. I can remember as far back as 1989 when I had the opportunity, along with
Mr. Jim Tee of the Department of Tourism, Culture and Recreation, and Mr. Eric
Jerrett, of visiting the old Western Union Cable Building, when plans were just
being formed to rescue the crumbling building and preserve its history.
Mr. Speaker, the Bay Roberts Heritage Society has worked diligently for the
past nineteen years. They encountered many difficulties along the way, but they
kept going, they kept their dream alive, and they faced adversity head on.
These dreams came to fruition recently, Mr. Speaker, when the Western Union
Cable Building was designated as a National Historic Site.
I ask all members of this House to join with me in congratulating Eric and
Betty Jerrett, the Bay Roberts Heritage Society, and all those individuals who
have contributed and played a very important role in the success of this
project.
Thank you, Mr. Speaker.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Bellevue.
MR. PEACH: Thank you, Mr. Speaker.
I rise here in this great hon. House today to inform you of the event I had
the pleasure of attending this past weekend: the thirty-sixth Annual Ceremonial
Review of the 2903 Royal Canadian Army Cadet Corps Norman's Cove-Long Cove.
These fantastic young people put on a wonderful show. Their shoes were
shined, their uniforms pressed, and their drill was perfect.
Many of these cadets will go on to the cadet camp this year to train in their
chosen cadet field of study, and they will bring this knowledge back to the
corps to share and encourage their corps to grow and strengthen.
It is organizations like this one which help to give our young people a sense
of dignity, pride, leadership and confidence.
I ask that this great House join me in congratulating the 2903 RCACC Norman's
Cove-Long Cove on their job well done and many successes in their future
endeavours.
Thank you, Mr. Speaker.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Kilbride.
SOME HON. MEMBERS: Hear, hear!
MR. DINN: Mr. Speaker, I rise in this hon. House today to recognize and
congratulate the Sisters of Mercy Centre for Ecology and Justice, and
specifically their Seed and Feed project that has been operating for the past
five years.
For each of these five years the Mercy Centre for Ecology and Justice has
been farming approximately one acre of ground in the Kilbride-Goulds area
producing fresh produce for local food banks, Emmanus House, and the Gathering
Place.
The primary purpose of the project is to bring young people back to growing
food and to reach out to the poor who are among us.
For the first three years of this project, using student grants and student
volunteers, the Seed and Feed group grew thousands of pounds of food. For the
past two years, the Association of New Canadians has become eagerly involved in
come out to the farm and go to work. Last year, young children from Day Break
participated.
Besides learning the types of vegetables that grow best in our climate, and
the skills for organically growing food here in Newfoundland and Labrador, this
project affords a healthy, respectful connection to the land which is part of
us. It also helps young people who volunteer to become contributing members of
our community.
Local farmers in Kilbride and Goulds have helped greatly with this project by
spreading manure and plowing the ground.
Mr. Speaker, I ask all hon. members of this House to join me in
congratulating the Mercy Centre for Ecology and Justice and the great work they
are doing.
I specifically want to reference Sister Mary Tee, a driving force with this
group.
Thank you.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Humber Valley.
SOME HON. MEMBERS: Hear, hear!
MR. KELLY: Mr. Speaker, I rise in this hon. House today and pay tribute
to the Deer Lake Chamber of Commerce. All members were invited to a celebratory
meeting at the Hideaway Pub in Deer Lake on Friday last week. The Chamber
recently received notification that it had been awarded "Chamber of the
Year 2007 Award" from the Newfoundland and Labrador Chamber of Commerce.
Mr. Speaker, Mr. Richard May, Regional Director from the Newfoundland and
Labrador Chamber, was at the gathering to present the award and applauded the
Chamber's level of activity and commitment of its executive in his
presentation to Chamber President Guy Stratford. The award carries the
inscription, "Deer Lake Chamber of Commerce, for your outstanding
commitment and promotion of the Chamber movement in your local region of
Newfoundland and Labrador."
Mr. Speaker, in accepting the award, Chamber President Guy Stratford was keen
to acknowledge the Deer Lake Chamber's high level of membership, the huge
effort and commitment of its executive committee who give up their time on a
regular basis, and the tireless support of the Chamber's co-ordinator, Susan
Goulding.
Mr. Speaker, I ask all members of this hon. House to join me in extending
congratulations to the Deer Lake Chamber of Commerce on winning this award and
wishing them well with their future endeavours.
Thank you, Mr. Speaker.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Mount Pearl North.
SOME HON. MEMBERS: Hear, hear!
MR. KENT: Thank you, Mr. Speaker.
I rise in this hon. House today to recognize the recipients of the Duke of
Edinburgh's Provincial Silver Award. This ceremony was recently held at
Memorial University in St. John's.
Mr. Speaker, this success is a testament to the hard work and dedication of
those individuals who participate. I myself participated in the Duke of
Edinburgh's Award program and I know first-hand the commitment and
perseverance it takes to achieve this honour.
I would like to recognize all the recipients, and in particular Julie Orr and
Deidre Halliday of Mount Pearl. I wish them all the best in their future
endeavours and hope that they continue to participate in those activities that
are of great interest. They are role models for others who have hopes of
exploring their inner talents and interests.
Mr. Speaker, I ask all members of this House to join me in congratulating the
winners of the Duke of Edinburgh's Silver Award.
Thank you.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Grand FallsWindsorBuchans.
SOME HON. MEMBERS: Hear, hear!
MS SULLIVAN: Thank you, Mr. Speaker.
Mr. Speaker, I would like to inform my hon. colleagues of a significant
achievement of a resident in my District of Grand FallsWindsorBuchans.
Chris Feener, a twenty-year-old prodigy guitarist in Grand FallsWindsor,
has just been chosen as one of the top twelve guitarists in an international
competition entitled "Guitar Idol '08." Guitar Idol is an on-line
guitar competition based in the United Kingdom and is open to competitors
worldwide. Guitarists submit an audio and/or video entry showcasing their
guitar-playing abilities and the public votes for the entrant they believe
displays the most talent as a guitarist.
Chris, along with eleven other finalists, will be heading to London, England
next week to perform and compete for the title of Guitar Idol 08. These twelve
talented guitarists were chosen out of over 700 entries worldwide, and votes
were cast by more than a quarter of a million viewers in a two-month period.
In addition to being a finalist in the Guitar Idol 08 competition, Chris has
also won a Provincial Arts and Letters Award for an original music composition
which he performed at The Rooms this past weekend.
Mr. Speaker, on behalf of this hon. House, I offer my sincere congratulations
and best wishes to Chris Feener as he travels to London to represent us for the
final stage in the Guitar Idol 08 competition.
Good luck, Chris.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: Statements by Ministers.
Statements by Ministers
MR. SPEAKER: The hon. the Minister of Education.
SOME HON. MEMBERS: Hear, hear!
MS BURKE: Mr. Speaker, with an investment of $750,000 in Budget 2008, we
plan to expand the Futures in Skilled Trades and Technology high school program
to an additional thirty-five schools across the Province.
SOME HON. MEMBERS: Hear, hear!
MS BURKE: State-of-the-art equipment is now being shipped to these
schools, ready to be used for the new school year.
We all know that there is an increasing demand for skilled labour to meet the
needs associated with the many large-scale development projects on the Province's
horizon. This dynamic program exposes students to the skilled trades using the
same calibre of equipment that is found on job sites across the country. With
our investment in this year's budget, more schools can renovate their space to
accommodate the new equipment and courses and ultimately, increase opportunities
to more students.
The Futures in Skilled Trades and Technology program is currently offered in
thirty-seven high schools. Four new courses have been developed, with the goal
of eight new courses to be implemented Province-wide by 2010. These courses are
supported with industrial equipment such as computer-controlled routers, sliding
compound mitre saws and a wide variety of power tools. Courses engage students
in a variety of activities associated with technology and skilled trades
from simple construction and small engine repair, to the design and development
of control programs using computers and robotics.
Special measures are also being made to raise awareness about the
opportunities in the skilled trades among female students. Last fall, we
launched the campaign, Jump Start Your Life, designed to show young women that a
career in the skilled trades is exciting and lucrative, while at the same time,
demands creativity and skill.
Mr. Speaker, over the past two years, government has allocated an
unprecedented $53.8 million in the areas of apprenticeship, science and
technology, programming, training and infrastructure.
SOME HON. MEMBERS: Hear, hear!
MS BURKE: These investments have funded new programs at the College of
the North Atlantic, improved infrastructure and learning resources, and
effectively doubled the number of seats in trades-related programs at campuses
throughout the Province.
Building our Province's skills base is critical if we are to be competitive
in the global marketplace. These investments are ensuring we have a strong,
responsive education system. A career in the skilled trades offers enormous
opportunities in Newfoundland and Labrador. With more students having access to
the skilled trades program in high school, we look forward to increased
participation in post-secondary skilled training.
Thank you.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Port de Grave.
MR. BUTLER: Thank you, Mr. Speaker.
I want to thank the minister for an advance copy of her statement, and to say
that we, I can assure you, are very pleased to know that there are additional
schools in this Province that will be taking
part in the skilled trades program.
We all know that there is a tremendous shortage here in the Province of
skilled trades. As major projects come on stream, no doubt that will increase,
Mr. Speaker, but we also have to be very cognizant of problem that we are
experiencing and why many of our skilled trades people are not here in the
Province today. They are just leaving the Province and going away, not only in
my district but I am sure right throughout the Province.
With this wonderful program that we are talking about here, we also have to
find the way to get the people to come back. I know the Premier said from time
to time they will return, and no doubt they will, but we have thousands of
skilled trades people who are outside the Province now, let alone the ones we
are going to train in the future. I think that is the challenge that we have to
encounter.
It is good to see those programs in the schools, there is no doubt about it,
and to know that the female component of this in the schools is also taking
part
in skilled trades program. Mr. Speaker, we say that this is a good program, and
hopefully down the road, we will see to it that individuals will not have to
leave this Province when it comes to not only the skilled trades, but any trades
in the Province.
Thank you.
MR. SPEAKER: The hon. the Member for the District of Signal Hill-Quidi
Vidi.
MS MICHAEL: Thank you very much, Mr. Speaker.
I thank the minister for the advance copy of her statement.
I, too, am quite pleased to see the increase in the skilled trades program in
high schools. It is extremely important in the context of today's economy and
climate here in Newfoundland and Labrador, as the minister has pointed out.
This program, the orientation of trades and technology for women program at
the College of the North Atlantic, the apprenticeship program, all of these
pieces together should help to increase the numbers of people with skilled
trades here in our Province.
I would encourage the government also to continue with its goal of decreasing
the cost of education for our students, so that when they go into post-secondary
education they will want to do their training here in this Province. The
government will also have to be ready to be working with industry as the large
scale developments develop to assure that the salaries and benefits that are
being offered in these large scale developments are going to be competitive with
the developments that our skilled trade workers are now working on outside of
the Province.
I say, this is good and let's keep up the work because there are many steps
and many pieces to what has to be done.
Thank you, very much, Mr. Speaker.
MR. SPEAKER: Further statements by ministers.
The hon. the Minister of Human Resources, Labour and Employment.
SOME HON. MEMBERS: Hear, hear!
MR. SKINNER: Thank you, Mr. Speaker.
I rise today to bring to my hon. colleagues' attention the need for federal
engagement in housing and in particular the need for long-term sustainable
federal funding for housing. Of immediate concern, Mr. Speaker, is the federal
government's cost-shared funding programs for the Province's Provincial Home
Repair Program, the Affordable Housing Program and the Homelessness Partnering
Strategy. These are set to expire in March of 2009.
The options for the longer term management and sustainability of the existing
social housing stock represent a critical issue for all levels of government.
Federal funding for the operation of the existing social housing portfolio in
the Province is declining each and every year with no more federal funding for
the existing housing stock after the year 2039.
Mr. Speaker, in February of this year I became the Chair of the
Provincial-Territorial Housing Ministers Responsible for Housing and in April of
this year, all of the provincial and territorial minister were invited to meet
informally with federal Minister Monte Solberg. As a result of our meeting in
Ottawa, there was unanimous agreement among all of my provincial and territorial
colleagues to press Minister Solberg to attend a formal meeting as soon as
possible to address these urgent housing issues. To date there has been no
response.
Newfoundland and Labrador Housing is the Province's largest landlord with
approximately 5,700 non-profit social housing units Province-wide. Many of these
properties are twenty-five to fifty years old and house an estimated 14,000
individuals. In addition, Housing serves an annual 2,500 applicants under its
Provincial Home Repair Program to assist low-income homeowners. In addition to
the approximately $130 million spent by the provincial government over the last
four years alone on housing programs, the government has announced two major
initiatives in the past year. The first initiative was a $25 million increase
over five years for more modernization and improvement to our existing housing
stock.
SOME HON. MEMBERS: Hear, hear!
MR. SKINNER: The benefits of that investment, Mr. Speaker, can be seen if
you drive around some of our cities and towns throughout the Province where we
have social housing units. As well, there was a $24 million increase over six
years to our Provincial Home Repair Program.
Mr. Speaker, throughout Newfoundland and Labrador, there continues to be
considerable demand for placements within the social housing portfolio, for
funding under the Provincial Home Repair Program and for funding for affordable
housing in communities throughout our Province.
I ask all of my colleagues in the House of Assembly to support the provincial
government in our efforts to urge the federal government to agree to meet with
the Provincial and Territorial Ministers Responsible for Housing as soon as
possible. We are calling on the federal government to reinstate social housing
funding limits to the 1993-1994 levels and to extend the existing cost-shared
arrangements for the Residential Rehabilitation Assistance Program, the
Affordable Housing Program, and the Homelessness Partnering Strategy beyond next
March, 2009.
Thank you, Mr. Speaker.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Port de Grave.
MR. BUTLER: Thank you, Mr. Speaker.
I want to thank the minister for a copy of his statement and to say that we
agree with government in, I guess, pressuring the federal government to come on
stream. I believe that they will, because those are three wonderful programs,
very much needed here in the Province.
With regard to the Affordable Housing Program and the Homelessness Partnering
Strategy, I am not all that familiar with those but I can assure you that, with
the repair program, I know what work that does for many of the people of our
Province, and in my district in particular, Mr. Speaker.
In calling upon the federal government we have to co-operate and have a good
relationship, and I say, Mr. Speaker, that is a two-way street; because, back
about a year-and-a-half ago, there was what they called the Home Heating
Efficiency Program, where funding was put into a program by the federal
government for the people of this Province and other provinces. I believe we are
only one of two provinces in this country today who have not signed on. We were
told back a year-and-a-half ago that applications would be made available to the
people of our Province. I believe under the new federal government the program
now is called the ecoENERGY Retrofit Program. To date that program is not in
force, and I am of the impression that it is being held up by consultation with
two departments here in this Province, and the people in the Province cannot
avail of it yet.
I just call upon the minister. I agree with your statement, Sir, that we have
to force the federal government, but I also call upon our provincial government
to see that this other program is put in place so the people of our Province can
avail of that service.
Thank you, Mr. Speaker.
MR. SPEAKER: The hon. the Member for the District of Signal Hill-Quidi
Vidi.
MS MICHAEL: Thank you very much, Mr. Speaker.
I thank the minister for the advance copy of his statement.
These announcements are so very important, because housing is an important
determinant of health, and having good housing is essential to everyone. Also,
bad housing for people who are dependent on social housing, bad housing adds to
their poverty, and, in that way also, is part of a determinant of health.
I applaud very much the minister, as Chair of the Provincial-Territorial
Housing Ministers Responsible for Housing Committee, in the stand that they are
taking with the federal government. I think it is very important that they
really get the federal minister at the table, to try to get agreements going. It
is an issue right across the country, and I am really glad to see that the
minister from this Province is chairing and giving that leadership.
I also applaud the extra money that has gone into housing this year. Of
course, some of it is money that will be going on over a five-year period. At
least for the next five years we will see that, and I am sure that we will
maintain a commitment to this housing.
I also look forward to the long-promised housing strategy that I hope the
minister and his department are still working on, because it is not just enough
to see money without the strategy. I would like to see the strategy and then,
one would hope, more money matching with that strategy.
Thank you very much, Mr. Speaker.
MR. SPEAKER: Further statements by ministers.
Oral Questions.
Oral Questions
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
The Conception Bay North area has a significant problem with recruiting and
retaining family physicians, something that is not just unique to that
particular region, Mr. Speaker. There is a high turnover rate as doctors come
and only stay for a short period of time. The joint councils in the area have
already made their concerns known to the department and to government.
Mr. Speaker, the Newfoundland and Labrador Medical Association have indicated
that we need an additional 120 family doctors for the Province.
I ask the minister today: What is being done to address this growing shortage
of doctors throughout the Province?
MR. SPEAKER: The hon. the Minister of Health and Community Services.
SOME HON. MEMBERS: Hear, hear!
MR. WISEMAN: Thank you, Mr. Speaker.
Mr. Speaker, the member opposite references a particular location in the
Province that is experiencing some difficulty now in recruiting physicians. What
is interesting, Mr. Speaker, if you look at the number of physicians in the
Province today, and we just had a reconciliation of the numbers from last year
compared to the previous year, I think it is seven or eight more doctors in the
Province today then we had last year at this time.
The recruitment initiatives over the course of the last twelve months have
been on par with our recruitment initiatives in previous twelve month periods.
So I say, Mr. Speaker, through our four regional health authorities, together
with the additional resources we have put in as a government, in establishing a
centralized recruitment process for physicians, we have had a tremendous amount
of success in attracting physicians to Newfoundland and Labrador. Some regions
of the Province have had more difficulties than others in retaining them, but I
say, Mr. Speaker, together with the four regional health authorities and the
investment we have made in the centralized recruitment process -
MR. SPEAKER: Order, please!
MR. WISEMAN: - we will continue with the efforts that we have put into it
in the last twelve months, I say, Mr. Speaker.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
We are pleased to see they have recruited another seven or eight doctors,
family physicians, this year more than last year, but it still takes the vacancy
rate to about 115 to 120 family physicians in the Province. This is being felt
in areas like Gander where today people may have to put their name in a hat to
be drawn out to see if they can access the services of a physician. In fact, Mr.
Speaker, the manager there told us that they have about 3,000 names on a list
right now, of people wanting to have a family physician, and they will be
accepting names up until tomorrow night.
Mr. Speaker, I ask the minister again: When can people of the Province, those
people like the ones I mentioned in Gander, expect to see family physician
services being provided to them in a timely and effective manner?
MR. SPEAKER: The hon. the Minister of Health and Community Services.
SOME HON. MEMBERS: Hear, hear!
MR. WISEMAN: I am glad the member opposite raised the issue of Gander and
used that as an example because I say, Mr. Speaker, that is a real good example
of where a local family practice clinic working together with the regional
health authority and the Department of Health and Community Services were able
to attract two new physicians to that clinic and that region very recently. We
have done that in other parts of the Province, I say, Mr. Speaker, very
successfully, so we will continue to do some of the things we have done
successfully in the last twelve months.
One of the other things that we have done this year, Mr. Speaker, we are
increasing the enrolments in the medical school to be able to ensure that we
have more Newfoundlanders and Labradorians entering medical school, because our
history has shown us that they will, in fact, have a greater opportunity to stay
and they are more likely to stay in Newfoundland and Labrador to practice.
MR. SPEAKER: Order, please!
I ask the hon. minister to conclude his answer.
MR. WISEMAN: Thank you, Mr. Speaker.
Put that together with the increased investment we have made in bursary
programs in this past year, I say to the member opposite and to the people of
the Province, stay tuned because I think we will see some great results in the
future.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
It does not help the people today in those regions who have to put their name
on a list to see a physician.
In addition, Mr. Speaker, in Labrador West, the availability of physicians,
or the shortage, has reached a crisis level in that region. None of the family
doctors there are accepting new patients, and you know that there is a booming
population in this part of the Province. In fact, the Iron Ore Company of
Canada, in the last week, let six more contracts for the expansion of their
mining operation.
I ask the minister: What is being done to deal with the critical shortage
that currently exists in Labrador West, and will continue to grow in the next
few months, as well over 100 to 150 new people move into the region to look for
work?
MR. SPEAKER: The hon. the Minister of Health and Community Services.
SOME HON. MEMBERS: Hear, hear!
MR. WISEMAN: Mr. Speaker, whether the member gets up and asks questions
about Gander or Labrador City or Clarenville or St. John's, if the question is
the same and the community just changes the answer becomes the same.
I have just laid out for her, in the previous two questions, some of the key
things that we have done: (
a) We have established a centralized recruitment
office at Memorial University working through the medical school; (
b) We have
invested new money in bursary programs and we have had a full uptake on all of
those bursaries we have offered, and those individuals have made a commitment to
come back to practice in Newfoundland and Labrador as a result of our
investment; (
c) We have made a major investment to expand the medical school
because we have had experiences that tell us that Newfoundlanders and
Labradorians who attend medical school in this Province will stay in this
Province to practice and that is where we are putting our money, making
MR. SPEAKER: Order, please!
I ask the hon. minister to conclude his answer.
MR. WISEMAN: Thank you, Mr. Speaker.
In addition to what the Regional Health Authorities and our department are
doing today in the short-term, we are making some major investments in some
foundational pieces of work that will hold us in the long stint.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
Paramedics in rural regions of the Province are not unionized. Those in the
St. John's are, however, unionized. Rural paramedics are typically paid forty
hours per week. They often provide unpaid on call for another sixty-four hours
per week for a total of 104 working hours, in some situations of paramedics that
we have talked to.
I ask the minister: Will government move to establish a Province-wide working
standard for paramedics within the Province?
MR. SPEAKER: The hon. the Minister of Health and Community Services.
SOME HON. MEMBERS: Hear, hear!
MR. WISEMAN: We must be getting near the end of this session, they are
going back through Hansard and pulling up old questions. I think, about two
weeks ago, I had that same question in the House, so we are going to run out.
What I said a couple of weeks ago - and let me repeat it - in this Province
we have ambulance services provided by hospital-based services, community-based
volunteer organizations and the private sector. The individuals who work at our
hospital-based practices are part of one of our regional health authorities, and
they generally would be members of NAPE or CUPE.
The other individual organizations in private sector, they have a contractual
arrangement through the Department of Health & Community Services with our
regional health authorities, to provide a service in their region. They hire
their employees, they have to meet a certain standard, they have a level of
training, they have standards in terms of equipment, the nature of their
practice but we basically have a contractual arrangement for those
organizations to provide the service. We do not define
MR. SPEAKER: Order, please!
MR. WISEMAN: Thank you, Mr. Speaker.
MR. SPEAKER: Order, please!
The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
With all due respect to the minister, it is the first time I have raised this
issue in the House of Assembly because it is only in the last week I have met
with paramedics.
Many of them in the Province feel that the emergency medical service system
is a piecemeal system at best, and in different areas of the Province there are
different standards of care. For example, if you need an IV, in one area of the
Province a paramedic can do it, in other areas of the Province they cannot do it
until you get to a hospital.
I ask if the government will commit to an independent, operational review of
ambulance and paramedic services with the Province.
MR. SPEAKER: The hon. the Minister of Health & Community Services.
SOME HON. MEMBERS: Hear, hear!
MR. WISEMAN: Thank you, Mr. Speaker.
I am glad the member raised that particular example about the IV, because
what she is speaking to, Mr. Speaker, is a set of standards, a set of standards
that typically, in that industry, would be referred to as medical control.
I am happy to report to the House and to the people of the Province, that in
the recent past we have been successfully in recruiting a physician to work with
Eastern Health, and that physician will take a full responsibility for ensuring
that we have medical control throughout each of our services throughout
Newfoundland and Labrador.
SOME HON. MEMBERS: Hear, hear!
MR. WISEMAN: Mr. Speaker, in fact, before the arrival of this individual
because this individual will be charged with the responsibility to ensure it
is Province-wide there had already been a significant amount of work done on
that particular piece of work. So, many of these services throughout the
Province already had medical control in place; but it will become a standard for
the Province.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
If I could get action like that on every question, well, we would not need
thirty minutes, we could do it in fifteen minutes, I say to the minister.
Anyway, the minister talked about recycling questions, well, let me ask you
this one, which is recycled from 2006, on a commitment that your government
made.
There was evidence to suggest that people who live near and are exposed to
transformers and cables are more prone to developing cancer. I raised this
question in the House of Assembly in May of 2006, in reference to a story that
was disclosed by Mr. Gerald Higgins, whose wife had died of breast cancer. Mr.
Speaker, as a result he feels, and experts in this field feel, it was linked to
transformers.
Mr. Speaker, at the time I ask government to investigate this issue.
MR. SPEAKER: Order, please!
I ask the hon. member to pose her question.
MS JONES: Yes, Mr. Speaker.
I asked government at that time to look at this issue, to investigate it, and
to report back. The minister of the day agreed to do that.
I ask you today: what action
MR. SPEAKER: Order, please!
If there is a question, I ask that the member pose it now.
MS JONES: Yes, I thought I just did, Mr. Speaker.
My question again is: the minister of the day committed to look at this issue
and I ask, what
MR. SPEAKER: Order, please!
Order, please!
MR. SPEAKER: The hon. the Minister of Health and Community Services.
SOME HON. MEMBERS: Hear, hear!
MR. WISEMAN: I do not think we would mind recycling questions from two or
three weeks ago but raising an issue that her former party, and I think it was
your former leader, had already discounted the notion that that had any real
credibility, if I am not mistaken. I sat in this House, if I am not mistaken,
and Mr. Grimes, the former premier, her leader, a member of her party, stood in
this House and discounted that notion as being frivolous; it had no merit, if I
am not mistaken.
I think, as she just pointed out, it was our government and a former
colleague of mine who committed to undertake to look at that question.
I can tell the member opposite that I do not know exactly what came out of
that evaluation that would have been done by my former colleague, but I will
undertake to find out for you and advise you in due course.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
If the Minister wants to read Hansard, Roger Grimes asked those questions in
the House of Assembly to John Ottenheimer, when he was the Leader of the
Opposition, and I asked them to Tom Osborne when he was the minister.
Mr. Speaker, my next question is to the Minister of Finance.
Recently our office was contacted by a gentleman from Catalina, Mr. Sam
Stead, who recently lost his wife to cancer. People in the community made small
donations to help him cover the cost of this funeral. Mr. Stead is almost 70
years old, he lives on a small pension and has a disabled daughter. He was
shocked to learn that $750 of his cost was taxes that were added to his funeral
bills.
I ask the minister: how much money is generated by government on an annual
basis from tax on funerals, and does he agree that such a tax on bereaved
families is somewhat repulsive?
MR. SPEAKER: The hon. the Minister of Finance and President of Treasury
Board.
SOME HON. MEMBERS: Hear, hear!
MR. T. MARSHALL: Thank you, Mr. Speaker.
I thank the hon. Leader of the Opposition for her question.
I will have to get the information as to how much of the HST, because it is
the Harmonized Sales Tax that we would receive.
When the government of Newfoundland and Labrador, I believe it was in 1997,
agreed to harmonize its provincial sales tax with the GST, along with Nova
Scotia, New Brunswick and the federal government, it was agreed by the
government of the day that we would accept the tax base set out in the GST.
Therefore, what is taxed, the items that are taxed, is set out in the GST and we
are bound by that. The only way that can be changed is if there was unanimous
agreement of the three provinces and the federal government to change the base.
Recently I was in Ottawa and had discussions with the Minister's of Finance
of Nova Scotia, New Brunswick and Prince Edward Island. We had agreed to meet
and have a discussion, and that was one of the taxes that had come up. There was
another-
MR. SPEAKER: Order, please!
I ask the hon. minister to conclude his answer.
MR. T. MARSHALL: Thank you, Mr. Speaker.
Also there is a HST on certain aspects of home care that is a concern to me.
We will meet and then, after we have had that discussion, we intend to approach
Minister Flaherty and the federal government to address these concerns.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
I am pleased to see that the minister will begin a process to ask the federal
government to drop their portion of the tax.
In the meantime, I ask if the Province would consider reducing the tax that
they apply to funerals as well, your portion.
MR. SPEAKER: The hon. the Minister of Finance and President of Treasury
Board.
MR. T. MARSHALL: Mr. Speaker, in terms of personal taxes we have just
undergone a two-year review of the taxes in this Province and as a result of
that we have given the biggest tax decrease in the history of our Province last
year -
SOME HON. MEMBERS: Hear, hear!
MR. T. MARSHALL: - $160 million, and this year by a further amount of
$178 million. Also, the Premier announced on April 22 of this year the complete
elimination of the hated 15 per cent tax on insurance.
SOME HON. MEMBERS: Hear, hear!
MR. T. MARSHALL: Mr. Speaker, this government has certainly done more
than probably any other government in history in reducing taxes in this
Province. As our financial situation continues to improve hopefully we can do
more in the future.
Thank you, Mr. Speaker.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
My next question is with regard to the gas tax.
As you know, since the election the price of gasoline has gone in some parts
of the Province from $1.08 a litre to $1.38 a litre today.
I ask the minister: in addition to this high price in gas tax we also pay the
highest provincial fuel tax on gasoline of any other province in Canada, and I
ask if you would consider looking at reducing the provincial fuel tax on
gasoline at this time?
MR. SPEAKER: The hon. the Minister of Finance and President of Treasury
Board.
SOME HON. MEMBERS: Hear, hear!
MR. T. MARSHALL: Thank you, Mr. Speaker.
As I just indicated, we have conducted a review of all of our taxes and we
have made major reductions in the taxes that we consider to be priority, and
that was mainly personal tax and the tax on insurance and also the reduction in
motor vehicle registration which is what the people of the Province told me when
I did the pre-Budget consultations they wanted to see; motor vehicle
registration reduced and also the tax on insurance reduced.
Mr. Speaker, with respect to the tax on gas, it is interesting that in many
parts of the country, especially in British Columbia right now, they are
actually increasing the tax on gas. They are bringing in a carbon tax. I think
Stphane Dion had mentioned that as well and I think Quebec is doing that as
well. I think New Brunswick has indicated an interest in raising the taxes on
gas and on heat higher, so that they can lower personal income taxes.
What we have done in this Province, Mr. Speaker, we are not raising taxes on
gas but we still lowered income taxes.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
We still have the largest tax in terms of a provincial fuel tax of any other
province in Canada. We know that the high gas prices and the high provincial
fuel tax is having an impact on people all over the Province; everything from
the cost of food to the cost of a bus pass today.
I ask the minister: What measures are government looking at to help offset
some of these costs to consumers on a go forward basis?
MR. SPEAKER: The hon. the Minister of Finance and President of Treasury
Board.
SOME HON. MEMBERS: Hear, hear!
MR. T. MARSHALL: Mr. Speaker, one of the things that this government has
been doing since it came into office is to continue to introduce new initiatives
to help people on fixed incomes in this Province, especially our seniors. We
have allowed seniors to split their pension income. We have brought in the low
income tax reduction which has eliminated 20,000 people from the tax roles. We
have increased the Home Heating Rebate, and 75,000 people now benefit from that.
We have lowered the taxes on insurance. We have lowered personal income taxes.
The list goes on and on of measures to put money in people's pockets to help
them cope with the rising cost of living, in particular the cost of energy.
Thank you, Mr. Speaker.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Port de Grave.
MR. BUTLER: Mr. Speaker, requests were made by residents, media and
individual councillors to investigate the operating of the Town of Portugal
Cove-St. Phillip's. The Kelly report was commissioned in August of 2007 at a
cost of $12,000.
I ask the Minister of Municipal Affairs: Have you and your staff reviewed the
Kelly report, and if so what direct action have you taken to resolve the many
serious issues which this investigation revealed?
MR. SPEAKER: The hon. the Minister of Municipal Affairs.
SOME HON. MEMBERS: Hear, hear!
MR. DENINE: Thank you, Mr. Speaker.
We did have a report last year done my Mr. Kelly and then subsequent to that
we had a review done by an independent lawyer to go over all of the details on
that.
I can tell the hon. gentleman today, that the answer with regard to Portugal
Cove-St. Phillips is eminent.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Port de Grave.
MR. BUTLER: Mr. Speaker, we know that the Kelly report states that the
Town of Portugal Cove-St. Phillips has reached a point of requiring significant
provincial intervention.
I ask the minister: What significant intervention will you be taking to
address the many issues, more than 120 formal complaints, submitted to you by
the residents of that town?
MR. SPEAKER: The hon. the Minister of Municipal Affairs.
SOME HON. MEMBERS: Hear, hear!
MR. DENINE: Mr. Speaker, we have to look at, when a town council is
elected, they are elected democratically. They are not elected on party, they
are not elected on platform; they are elected on their own individual platforms.
At times there are situations where they do not agree.
In looking at Portugal Cove-St. Phillip's, Mr. Speaker, those issues that
the member across the way mentioned, they will be addressed in the letter that
will be sent out to the town very soon.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Port de Grave.
MR. BUTLER: Mr. Speaker, my final question to the minister is with regard
to questions of conflict of interest and secrecy over financial decisions by
council and staff as stated in the Kelly report that dominate the concerns of
many residents.
I ask the minister: What action has been taken to address these conflicts of
interest and the secrecy issues?
MR. SPEAKER: The hon. the Minister of Municipal Affairs.
SOME HON. MEMBERS: Hear, hear!
MR. DENINE: Mr. Speaker, the way the issue was dealt with, we had to find
out what were the real issues in terms of what was happening there.
As far as the financial part of it, from our perspective, my officials went
in and there were no issues with financial. The issues dealing with conflict of
interest, they found that there was no foundation there at all.
What happens is that the explicit way the municipalities sent out - that
clearly defines exactly what a minister can and cannot do. All I can tell the
member across the way is that a letter will be going out to the town and giving
them some directions on those issues.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Opposition House Leader.
MR. PARSONS: Thank you, Mr. Speaker.
My question is for the Minister of Finance.
Minister, in a recent media report actually, this morning - there was
reference to the Liquid Ice liquor transfer, license transfer, to another party.
In the course of the interview it was mentioned that and I believe it was an
official of the Liquor Corporation who made the comments there was a
comprehensive review underway with respect to the liquor laws, and it was not
specific.
I am wondering if you could shed any light on that. If there is, in fact, a
comprehensive review underway, is it both the Liquor Corporations Act and the
Liquor Act, and if that review is going to have public consultations involved in
it.
MR. SPEAKER: The hon. the Minister of Finance and President of Treasury
Board.
SOME HON. MEMBERS: Hear, hear!
MR. T. MARSHALL: Mr. Speaker, I don't know if a review from government
would be the proper way of describing it, but essentially there have been a
number of recommendations that have come forward from the executive of the
Liquor Corporation to me, in my capacity as Minister of Finance, suggesting
recommendations to the Liquor Control Act. Government will obviously consider
those recommendations, and if it wishes to go forward then the legislation would
be presented here in the House.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Opposition House Leader.
MR. PARSONS: Thank you, Mr. Speaker.
I have asked a series of question this week about mental health issues in HMP,
and in Labrador, and in the women's correctional facility in Clarenville. The
Office of the Citizens' Representative noted in his investigation that there
is a two-week waiting period upon requesting mental health services at the
Clarenville women's correction centre. No counselling team, apparently, has
entered the facility since 2006. The report recommended that a pilot project be
put in place that ensures continuous availability of counselling.
I am wondering if the Minister of Health or the Minister of Justice can tell
us if that recommendation has been moved forward.
MR. SPEAKER: The hon. the Minister of Health and Community Services.
SOME HON. MEMBERS: Hear, hear!
MR. WISEMAN: Thank you, Mr. Speaker.
To answer your question directly, no, I am not aware, but I will undertake to
find out the information for you.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Opposition House Leader.
MR. PARSONS: Thank you, Mr. Speaker.
The shortest answer we have ever gotten from the Minister of Health. Thank
you very much.
Mr. Speaker, for the Minister of Justice, again, the Office of the Citizens'
Representative released a report, close to a year ago, which included
recommendations on improving mental health supports for female offenders in
Labrador.
The minister commented in earlier questions, in response this week, to the
fact that there was a detention centre being constructed and those monies
have, in fact, been outlined in the Budget of this year but the issue was,
and the Citizens' Representative referred to the fact, that there should be a
new, secure mental health unit in the Labrador Health Centre as opposed to a
detention centre.
I am wondering if government has given any thought to that, and when that
recommendation might be moved forward so that support is also in place for these
people.
MR. SPEAKER: The hon. the Minister of Health and Community Services.
SOME HON. MEMBERS: Hear, hear!
MR. WISEMAN: Thank you, Mr. Speaker.
Again, I will try to be brief.
I am aware that recommendation was made, and I am aware that the health
authority in question is looking at how they are going to accommodate the space
within the current building and what renovations would be necessary; but, in
terms of the progress towards that, I cannot give you an update today but I will
undertake to do so.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Opposition House Leader.
MR. PARSONS: Thank you, Mr. Speaker.
My next question is for the Minister of Municipal Affairs.
We have had several inquiries, Minister, and we are aware that the Budget has
come down for this year, and I understand that the communities in the Province
who are involved in multiple-year funding projects have already been notified by
the department as to what their projects are and which have been approved.
Several communities, other than those multiple-year funding ones, have been
inquiring when it is likely to be made public as to where their capital works
projects stand for this year. They are concerned, of course, because the later
they get the notification from your department, the shorter the construction
period is for them.
I am wondering if you could give us an update on where that stands.
MR. SPEAKER: The hon. the Minister of Municipal Affairs.
SOME HON. MEMBERS: Hear, hear!
MR. DENINE: Yes, I can, Mr. Speaker.
The hon. gentleman, the answer to his question is that those notifications
were sent out on Monday. What happens is that there is a letter gone with that
explaining to the municipalities what it entails, what they have to do to report
back to Municipal Affairs whether they accept the contract or not. That is in
the mail, it is in the works, and I understand the question.
Thank you.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Signal Hill-Quidi
Vidi.
MS MICHAEL: Thank you very much, Mr. Speaker.
Mr. Speaker, on April 26, the federal government announced amendments to the
Patented Medicines Regulations to delay production of generic drugs. Ottawa did
not consult the provinces and territories before they released the proposed
regulations and then gave only fifteen days to governments to respond.
Mr. Speaker, these regulations could possibly result in delayed savings to
provincial drug plans. This is especially troublesome for this Province since we
have experienced an increased cost of 25.5 per cent from 2006-2007, the highest
estimated annual growth rates for drug spending per person by a public program
in the country.
Mr. Speaker, I ask the Minister of Health and Community Services if his
department has engaged in this issue with the federal government because of the
impact their actions will most likely have on the cost for the drug program in
this Province.
MR. SPEAKER: The hon. the Minister of Health and Community Services.
SOME HON. MEMBERS: Hear, hear!
MR. WISEMAN: The issue raised by the member opposite is one that has been
a topic of discussion over the last number of years, actually, between Ministers
of Health and Community Services across the country together with the federal
government. It is an issue, though, of some concern.
Obviously, any time there is an action by a regulatory body - in this case,
the federal government - that will have a direct impact on the people of this
Province and other jurisdictions around the country by driving up the cost of
prescription drugs. So, it is an issue that we are engaged in a discussion
around.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Signal Hill-Quidi
Vidi.
MS MICHAEL: Mr. Speaker, I am aware that some provinces responded to the
federal government when they made their release on April 26. Some asked for an
extension of time, up to thirty days, which is the more normal time that people
who have before responding to something from the federal government. I know New
Brunswick and British Columbia have done that. I know that the National Union of
Public and General Employees have made statements.
Has our government made representation to the federal government in
responding to this latest decision?
MR. SPEAKER: The hon. the Minister of Health and Community Services.
SOME HON. MEMBERS: Hear, hear!
MR. WISEMAN: Not directly in that same fashion, by asking for an
extension, no.
MR. SPEAKER: The hon. the Member for the District of Signal Hill-Quidi
Vidi.
MS MICHAEL: Well, in what fashion, Mr. Minister? I ask you: Have you
written a letter? Have you responded at all? Have you let them know that we are
disturbed, as a Province, about this decision? Because we have to cover drugs
for our people and this decision is going to benefit drug companies and really
affect provinces badly, and therefore the people in the country.
In what way did the minister respond to the government?
MR. SPEAKER: The hon. the Minister of Health and Community Services.
SOME HON. MEMBERS: Hear, hear!
MR. WISEMAN: At the officials' level, I say, Mr. Speaker.
MR. SPEAKER: The hon. the Member for the District of Signal Hill
Quidi Vidi.
MS MICHAEL: I am sorry, I could not hear the answer; if the minister
could repeat it for me.
MR. SPEAKER: The hon. the Minister of Health and Community Services.
MR. WISEMAN: I was just too quick, obviously, Mr. Speaker, but let me
rephrase it and extend it a little bit.
In response to the member's question: the manner in which we have responded
in the Department of Health and Community Services have been at the officials'
level, I say, Mr. Speaker, and they have corresponded directly with their
counterparts in Ottawa.
Thank you.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for the District of Signal Hill
Quidi Vidi.
MS MICHAEL: Just for the record, Mr. Speaker - and this is not to get at
the minister, it really is not, but for the sake of people here and for others
in the room - I do have a hearing difficulty and so that is why I use this all
the time.
Mr. Speaker, another question for the minister: Nova Scotia has reformed its
means of procurement of pharmaceuticals and they definitely are saving money
because of what they have done and B.C. has set up a task force to look into its
spending.
What I want to ask the minister is: will this government create a provincial
body of some kind to work on a pharmaceutical strategy, with the goal of
delivering the best patient outcomes, more streamlined drug review processes and
best value to the Province?
MR. SPEAKER: The hon. the Minister of Health and Community Services.
SOME HON. MEMBERS: Hear, hear!
MR. WISEMAN: Mr. Speaker, I am not sure that I would commit to creating a
structure that I want to define now, but what I can commit to the member
opposite and to others is, that as a Province and as a government we are
committed to ensuring that we acquire, through our drug program, prescription
drugs at the lowest cost possible. We are participating with other jurisdictions
in mechanisms to do reviews of drugs before they enter the market, to look at
their effectiveness, the efficiency and cost benefit to the people of the
Province. We are having discussions with other jurisdictions through my
counterparts around mechanisms where we can collectively look at how we purchase
drugs and look at similar practices that larger buying groups might engage in.
On an ongoing basis, I say, Mr. Speaker, we are dealing with these issues
facing our prescription drug program in the Province. I say, Mr. Speaker, we
will, whether it is through that kind of mechanism or some other, achieve the
same kind of objectives.
MR. SPEAKER: Order, please!
I ask the hon. minister to conclude his answer.
MR. WISEMAN: Thank you.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The time allotted for questions and answers has expired.
Presenting reports by standing and select committees.
Tabling of documents.
Tabling of Documents
MR. SPEAKER: As the Chair of the House of Assembly Management Commission
and in accordance with the House of Assembly Accountability Integrity and
Administration Act, I hereby table two sets of minutes from the Management
Commission, one from the meeting on May 5 and the other from the meeting April
Further Tabling of Documents.
Notices of Motion.
Answers to questions for which notice has been given.
Petitions.
Petitions
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
I rise today to present a petition on behalf of the parents in the Labrador
Straits area of my district.
Mr. Speaker, it is regarding the government's new approach to allocating
teaching resources within the Province and how that is impacting upon small
schools, especially those in rural communities. Now this is not the only region
of the Province in which I have introduced petitions like this in the House of
Assembly but there are a lot of small schools around the Province that are in
rural-based areas that have seen the transfer out of teaching units under this
current formula. Mr. Speaker, in many cases we are going to see not just
multi-grading of classes and children but multi-multi-grading; cases, Mr.
Speaker, where you will have three, four and five grades all within the one
classroom with one teacher.
It is unrealistic to expect that in today's society any teacher is going to
want to be teaching four to five grades in one classroom and moving to remote
areas of the Province to do so. I think in changing this formula and putting
additional workload on these teachers not only are you sacrificing the quality
of education that the students are getting but you are also, Mr. Speaker,
running some high risk in terms of further recruitment problems down the road in
trying to attract teachers to these regions of the Province.
Mr. Speaker, these particular parents are petitioning the Minister of
Education and the government to reinstate teaching units in small rural schools
and review the guidelines to find a solution that they can reorganize the unique
needs of students in small rural schools.
I think it is a very legitimate request and although the minister says that
they are not overall reducing teachers in the Province, what they are doing is
they are transferring teachers out of small schools into larger schools in order
to meet their own criteria that they have implemented on cap sizes within
classrooms and it is not sitting well in a lot of the rural areas where you have
small schools.
Mr. Speaker, I asked the minister to table for us, in the House, the
breakdown of the teacher allocations in the various schools around the Province,
but what we got was an allocation on a district by district basis, and that was
not the information that we had requested.
Hopefully they will give some consideration to the people who petition the
House on matters like this.
MR. SPEAKER: The hon. the Member for the District of Port de Grave.
MR. BUTLER: Thank you, Mr. Speaker.
I just want to take a few moments to, I guess, present I had to go through
the files today to find my last petition, hopefully, of this session. I will
have to get more ready in the fall.
Mr. Speaker, it has to do with the road maintenance program. We hear from
time to time about the depots that we are closing. Hopefully, over the summer
months, Mr. Speaker - and this has nothing to do with the Capital Works Program
that has been announced by the minister, it is just a road maintenance program.
Many people in different areas are saying that they believe that by those depots
being closed they do not get the same service in the summertime in getting the
road maintenance done.
I just want to say, Mr. Speaker, to the minister, that there are quite a few
areas, not only in my district but throughout the Province, where road
maintenance has to be done. All I am saying to the minister is, over the summer
months keep your hand upon the throttle, both eyes upon the road and hopefully
we will see that the maintenance that needs to be done will be considered and
hopefully done to everyone's satisfaction.
Thank you, Mr. Speaker.
Further petitions.
Orders of the Day
Private Members' Day
MR. SPEAKER: The hon. the Government House Leader.
MS BURKE: Mr. Speaker, it being Private Member's Day, I call Motion 1
as laid out by the hon. Member for Port de Grave.
MR. SPEAKER: The hon. the Member for the District of Port de Grave.
MR. BUTLER: Thank you very much, Mr. Speaker.
It gives me pleasure today to stand on this private member's motion with
regards to public sector pensioners, which has been seconded by my hon.
Colleague for the District of Cartwright-L'Anse au Clair. Just for the record,
Mr. Speaker, I will read the motion.
WHEREAS the Provincial Government retired pensioners have sought an increase
in their pensions because increases in the cost of living have diminished their
value and many pensioners live in dire financial circumstances; and
WHEREAS the Provincial Government had an established practice of granting a
pension increase to coincide with or follow public sector pay raises, thereby
creating a reasonable expectation that this would continue to be a feature of
their pension entitlement; and
WHEREAS this practice was discontinued after 1989 due to the severe financial
constraints at that time, thereby hurting all pensioners but especially those on
low fixed incomes;
THEREFORE
BE IT RESOLVED that the House of Assembly urges the government to
consider the advisability of resuming the practice of matching increases for
public service pensioners to wage increases for public sector employees.
Mr. Speaker, as I said, I just want to take a few moments on this. I am not
going to belabour the issue, but there are a few comments I want to make. I
know, as the evening progresses we will have hon. members on both sides
standing, and no doubt the members on the government side will be telling us
about what has been done this year and in previous years for the seniors. That
is true, Mr. Speaker, there is no doubt there are many issues that have come up
from time to time that will help those people; but, Mr. Speaker, when it comes
to the indexing of their pensions, it is another issue.
On May 1 we heard the Minister of Finance responding to some questions by the
Leader of the Opposition with regard to issues that have been dealt with in
reference to low-income tax benefits, doubling the seniors' tax benefit,
improving the drug program, home heating programs, and more or less, Mr.
Speaker, putting money back into seniors' pockets.
While members opposite were in Opposition, I can assure you, Mr. Speaker,
they travelled this Province preaching how they would stand shoulder to shoulder
with those people in supporting indexing of their pensions. I say, what a change
has occurred. Just a little stroll across this House and the issue has come to
the point now where indexing has been placed on the back burner.
On April 30, the Premier of this Province made a statement that public sector
pensioners would not be getting any indexing or any further benefits on their
pensions in the foreseeable future under his mandate.
Mr. Speaker, I guess that has been disturbing to those people, because we
hear so much about the reference to the lower income tax benefits and we know
that many of those people, Mr. Speaker, the figures that we have seen, some of
them are trying to survive on as little as $10,000 a year.
We talk about the funding we have put into the drug program, and I know there
are three or four different phases of the drug program and it is very beneficial
to many people, but I can assure you, I have people in my district who just
cannot afford to get all the medications they need. Some of them are to the
point now where doctors are giving them samples that they have come from time to
time, and that is very unfortunate. I am not saying that is what government
wants to happen, but that is the position that many people find themselves in.
We talked about the home heating program - a good program, Mr. Speaker, let
me assure you - and there are more people this year availed of that than in the
past, and that is all wonderful, but I can tell you, many seniors, many people
who are on fixed incomes, find themselves in a very difficult position. I have
had people call me over this past few months, not only in my district but other
areas as well, saying: I do not have an invoice to send in so I can avail of
those funds because I was unable, in the last two or three months, to be able to
buy the fuel. I bought it last winter, and there is still some of it there.
I have been in homes, Mr. Speaker, where those people and seniors have been
unable to turn on their heat because it was either, from time to time, buying a
drop of oil to keep the house warm or buying food from one end of the month to
the other, Mr. Speaker. That is very unfortunate. Those people have served this
Province well, Mr. Speaker.
I know recently that seven different groups came together - they are called
Pensioners' Coalition 2008 - and those seven groups represent some 22,000
retirees. When you consider their family members, that figure jumps to about
60,000 people, Mr. Speaker, and their pensions have been frozen now for nineteen
years.
I know this Administration has not been office for nineteen years, and I know
it happened back in 1989, but that is immaterial, who was there. I think the
time has come that those people have to be considered, and what better time to
do it than now? We know that you cannot take every penny that the government has
and just throw it to the wind. I think the issues that those people are asking
for are legitimate, Mr. Speaker, and they include many different groups who have
worked for this Province and for this government. We have the staff at Memorial
University, penitentiary wardens, firefighters, police officers and teachers. I
can assure you, from what they have in the paper, they were disappointed with
the Budget not disappointed with everything that is in the Budget, but the
fact that they were not considered with the indexing of their pensions. The
financial position that we find ourselves in today, I believe they thought,
definitely, there was going to be something there for them. We also know that
the various unions I know NAPE has spoken out recently in favour of those
people, because I guess many of them were members of that particular union.
Over a period of time I know prior to the last election and since the
last election - I had the, I suppose, distinct honour of meeting with those
people; but, I am going to tell you, what took place in the meetings was
something that I did not think I would encounter.
I remember meeting with them, up on the fifth floor, when they came in and
explained to us what they are receiving now, what they could purchase for that
amount of money back in 1989, and how they are left and what they can buy today,
Mr. Speaker.
Some hon. colleagues here I know the Member for St. John's East, the
Member for Signal Hill-Quidi Vidi, and the Opposition Leader we met with I
think it was close to 800 of those people in Mundy Pond, and that is since the
last election. When you hear the stories that those people had to put forward, I
believed that, and I think they believed at the time, that something would come
forward in the last Budget to help support them.
Mr. Speaker, I have read with great interest the provincial resolutions that
were put forward by the Newfoundland and Labrador 50+ Federation, when they held
their meeting back in 2007, and I believe they met with the Minister of Finance
and presented their cases to him, and some of the issues that they had in their
resolutions have been dealt with to some degree. Others have not, but the
indexing of their pensions is one that - they feel today that something should
be done.
We understand that the cost of living has increased since 1989 by 46 per
cent. All we have to do, I guess, is think about it ourselves, if we were on a
fixed income, knowing what the increase was over that period of time.
Mr. Speaker, we know, not only the price of gas, how it has gone up, but how
it affects everything that those individuals have to deal with, whether it is
when they go to buy their groceries, whether it is when they go to buy fuel to
heat their homes, or even to buy their groceries, because we hear it on a daily
basis, how things are increasing. These people, like I said, Mr. Speaker, have
worked all their lives providing a service to the people of this Province.
I know one of the recommendations that they put forward at their convention,
and I am sure the Minister of Finance is well aware of it, with regard to - I
think it was resolution 14 - the retirement pensions' increase, and explained
very seriously how they are suffering on many issues and how they have cared,
whether it is teachers caring for the children, or other individuals here in the
Province, Mr. Speaker.
Hopefully, as this day progresses, I know members opposite will stand and
talk about all the good things that have happened, and that is true, but I hope
when they stand that they will be able to relate the stories, just like I
related, because we all live in Newfoundland and Labrador. Each and every one of
us has constituents, and I am sure we have received phone calls from them asking
us to plea to government and to urge government to consider this.
Mr. Speaker, I am going to conclude my opening comments just on one comment
that I read recently in The Telegram. I guess you cannot believe
everything you hear or see or read in our local papers or in the media, but the
article was written by Mr. Russell Wangersky, and he concluded by saying one
thing in that his quote he was referring to the relationship and how we
feel about the deal that was promised us from Ottawa. In order words, in his
article he is saying: A deal is a deal.
Those people, yes, they signed off on a deal when their unions agreed with
what they would expect from their pensions, but he went on to say: How can you
campaign on the grounds that unfair deals should be changed while refusing to
change them yourselves?
In other words, what he is saying, Mr. Speaker, is that those people are in
our Province, they are the people who have carried the burden of our residents
for many years in providing the service, and what they are saying is: Yes, we
know we are receiving what we agreed to at that time, but the time has come when
that deal should be broken; it should be reconsidered.
Hopefully, as the evening goes on, Mr. Speaker, I will take my place and just
listen to fellow colleagues as they make their presentations, and return later
on to close debate.
Thank you, Mr. Speaker.
MR. SPEAKER (Collins): The hon. the Minister of Human Resources, Labour
and Employment.
SOME HON. MEMBERS: Hear, hear!
MR. SKINNER: Thank you, Mr. Speaker.
Mr. Speaker, I am happy to be able to stand today and speak to this motion,
and I am glad that the hon. member opposite brought the resolution forward to
give us an opportunity to bring forward some of the initiatives that have taken
place to try and assist, as the motion refers to, provincial government retired
pensioners who have seen the value of their pensions diminish in time. Some, in
fact, do live in some dire circumstances. I am sure every member in this House
could tell the story.
I have visited many seniors, many public service pensioners, who are having
difficulty. A lot of them are struggling. It is an opportunity for us, as
members, to be able to get up and speak to what it is that we are doing.
Make no mistake, Mr. Speaker, I do not care what side of the House you are
on, this issue is one that every member of this House takes seriously and wishes
to be able to do something to try and assist.
In terms of the public service pensioners, in terms of this government, we
understand the difficulties that public service pensioners are experiencing.
They are a smaller sub-set of the bigger population of seniors who I receive
e-mails and calls and letters from every day. I go to visit them every day, who
are talking to me about the challenges they face, in particular in the winter
months when the cost of heating is something that is an onerous burden on them,
a burden that they have to bear. I have been to homes where people tell me that
they have to choose between turning on the heat or maybe feeding themselves,
putting some food on the table, or maybe their car is broke down in the
driveway, their only means of transportation. That vehicle is very important,
not just as a means of transportation, but it is a means of social inclusion for
them. It allows them to get out and go to the grocery stores, to go do a bit of
shopping, to go see their physicians, to go see their family and friends, and it
is broke down in the driveway, they do not have the funds to be able to fix it
or to make it work.
Mr. Speaker, this government, I think, and all members in this House
understand the challenges that public service pensioners are facing, but, as I
said before, I believe we placed that in the context of they are a smaller
subset of a larger group of older adults in this Province who are experiencing
similar challenges. Our approach as a government has been to try and address the
larger group, and by addressing that larger group the subset of public service
pensioners will also feel some benefit from some of the initiatives that we have
brought forward.
We understand that the public service pensioners have had an employer
sponsored pension plan that they made contributions to. We understand that they
thought there would be money there at the end of the day to be able to live a
reasonable standard of life, but those decisions were made in some cases, Mr.
Speaker, thirty or thirty-five years ago. It is hard to project what your needs
are going to be and it is hard to project what your needs will be in five years
let alone thirty-five or twenty-five years. We understand the quandary that
people find themselves in, but we as a government, I guess, took a couple of
approaches.
I was at some of those meetings that the hon. member referred to. I wanted to
when I was campaigning - when I was originally elected as a new MHA I went to
some of those meetings to hear the concerns of the public service pensioners. It
was an issue that I felt I had to educate myself about, so I went and listened
to a lot of those stories and what a lot of the people had to say. The first
thing I heard, and the thing that struck me most, was, first of all those
pension plans were in dire straits. Those pension plans were in a position where
they may not be able to provide a pension to the people who rightly and who in
good faith contributed to a pension plan that should be able to pay benefits to
them once they retired. That message rang through to me loud and clear.
One of the first things our government did when we took office, when we had
the privilege of being elected by the people of the Province, was we looked at
those pension plans in terms of trying to put them on a bit more of a firm
footing. I do not remember specifically which one, I think it was the Teacher's
Pension Plan; it was only funded to the tune of 26 per cent, Mr. Speaker. We as
a government had to make sure that we addressed that because if we did not the
projection showed in 2003 when we took office that that particular public
pension plan would run dry by 2012, four short years from now; would not be able
to meet its obligations. Not only would the people who receive a pension from
that pension plan be complaining about the fact that they were receiving too
little to live on, there would actually be nothing left in the plan to be able
to be funded out. This government had to take some drastic, serious action, and
we did that. We put about $4 billion in total into the pension plans to make
sure that they were given a more solid financial footing. In actual fact, we
raised the level of funding from around 26 per cent up to about 80 per cent for
these pension plans.
We further, in 2007, put almost $1 billion, $982 million, almost $1 billion,
with a b, into the Public Service Pension Plan to raise it up. It again was
around 28 per cent or 30 per cent funded and we had to make sure that the
benefit was there for people on a go-forward basis.
There were things that needed to be addressed, no doubt, in terms of the
Public Service Pension Plan. The immediate need as we saw it and as I saw it and
as I heard it in some of the meetings I attended and as I heard it from some of
the people I spoke to, was, make sure you sure up that pension plan. Funds were
taken from that years ago - and we all know the story, I will not beat it to
death - but funds were taken from that years ago by previous administrations to
pay for infrastructure. They paid for hospitals, they paid for schools and they
paid for roadwork. That money that people were putting away for their pensions
was being used for purposes other than what it was intended for and that had to
stop, and it has stopped.
We had an obligation as a government to address that liability. The first
thing we did was address that liability by making sure that we put enough money
into the pension plan to make sure that it was on firm footing so that the
continuation of benefits was there, people would not have to go to sleep at
night wondering, will my benefits run out in 2012, will I wake up one morning
and be told by the provincial government there is no more pension money for you.
We made sure that did not happen. That was the first thing that was done by this
government, Mr. Speaker. We wanted to make sure that the unfunded liability was
taken care of.
The second point that was made by this government, when we brought the
unfunded liability up to the point where it needed to be, when we basically
re-injected the funds that had been taken out - and that was done by an actuary.
There was a calculation done and an assessment made as to how much money needed
to be put into that plan. It was not just the amount that was taken out. It was
the money that was taken out plus the estimation as to what the benefits would
have been had the money been left in the plan. There was an evaluation done by a
professional called an actuary who did that and said, here is the amount of
money you have to put in. The amount of money that was taken out was put in as
well as an allowance for how much money the plan would have made over the years.
That was done and we are now about, as I understand it, 80 per cent, 82 per
cent, funded in terms of those pension plans.
The second point that this government made, Mr. Speaker, was that we would
not be able to look at any increases in the pension plans until they were able
to fund it which meant that the plans had to be 100 per cent funded. We are
moving towards that. We are hoping that we will be able to get there sooner
rather than later, but there may be a day when we see that we will be able to do
something in terms of increasing pension benefits when the pension plan allows
for it. That is how you would normally do this. That is the normal process and
the normal practice that will be followed, that you would take the extra
benefits from the plan to be able to provide more benefits to those recipients
of the plan. At some point, we hope that may be able to happen.
Mr. Speaker, I only have a short period of time to speak so I want to go back
to the point I was making earlier about the public service pensioners being a
subset of a larger group of people in this Province. One of the things that this
government has been trying to do is trying to make sure that the benefits we
have, the revenues that we have as a government, are used for the benefit of the
most people possible. We have our low income drug program. I believe that it is
over 90,000 people now who have been affected by that. Our home heating program,
we have raised threshold on those. There are a whole bunch of initiatives that I
could talk about in more detail but we have tried to make sure that we cover or
encompass as many people as possible in the Province. It is not the will of this
government, nor do we feel it is the right move to make, to go and target the
Public Service pensioners in terms of trying to do something extra for them. We
feel it is something that should be done for all seniors in the Province.
What we have looked at doing is, we have looked at the kinds of things that
people are talking to us about. Just as an example, taxes were something I heard
a lot about when I went around. People talked to me about taxes. Well, we have
brought in the low income tax reduction measure, we have now raised the
threshold level, so seniors who are receiving pensions, who are receiving
$10,000, $12,000, $14,000 and $15,000 in pension money, who were paying taxes on
that, we have now been able to make adjustments to our taxes so that they no
longer have to pay taxes on that amount of money. We have done it for all
seniors. We have not done it just for Public Service pensioners.
There are seniors out there, a great number of them, who are not in receipt
of pensions, but they are the individuals who are paying into the revenues of
government through our tax system and we feel they should receive some of the
relief and some of the benefit of us using our tax money. By using this low
income tax measure for all seniors, those that are Public Service pensioners are
also positively affected by that.
As well, Mr. Speaker, we look at the home heating rebate. I can tell you, I
have many, I would go so far as to say hundreds, of constituents in my district
who I have spoken to who have benefited from the home heating rebate. I have
personally delivered dozens of applications to people who asked if I would be
able to drop it off and help them with their application. There have been
hundreds, thousands across the Province. I do not know the number. When the
Minister of Finance gets up, maybe he will give us more detail. I would
speculate there are many thousands of people who have been helped by the home
heating rebate.
A lot of those people who I have delivered these forms to are seniors living
in their own home. Some of them are Public Service pensioners. We have done a
number of things with the home heating rebate to make it beneficial for all
seniors, and by making it beneficial for all seniors we have made it beneficial
for the Public Service pensioners as well, because they are a subset of that
senior group. We have increased the threshold in terms of the income threshold
and we have increased the amount of money that has been paid out. You now can
earn higher levels of income and be eligible for the home heating rebate. We
have now made sure that the amount we give out is a higher amount, so it is on a
graduated scale. It can be as little as zero if you are over the income
threshold; it can go up to $400. We have also expanded the types of fuel. It is
no longer just oil, but it is oil, it is electricity, it is propane and it is
wood sources. There are a variety of sources that are being used.
The point I am making, Mr. Speaker, is that by addressing all of our senior
population with some of these positive initiatives, which allow seniors to keep
more money in their pockets - and ultimately that is what we are trying to do,
we are trying to keep more money in people's pockets. We are trying to ease
the financial burdens that they have faced. What has happened, Mr. Speaker, is
that by addressing the broader group of seniors in the Province, we have, in
fact, done some things for the subset of pensioners in the Province.
I want to talk a little bit about the Provincial Home Repair Program, which
comes underneath my ministry as well. We have a higher percentage of people in
the Province of Newfoundland and Labrador than any other Province of Canada who
own their own homes. A lot of the people I deal with through the Provincial Home
Repair Program own their own homes, obviously, and they to reside in rural
areas. The majority of people tend to reside in rural areas. A lot of them are
on fixed incomes. Some of them are pensioners, some of them are not pensioners,
but they have fixed incomes. They tend to have lower levels of incomes.
The Provincial Home Repair Program, Mr. Speaker, allows people to be able to
fix up their homes, to stay there, to stay in the home where they raised their
family. Their friends are there, all of their memories, all of the community
work that they have done, their church, the places where they socialize, the
Lions Club, the Kinsmen, whatever it may be, all of that is where their home is.
That is why they want to stay in their home. They do not want to have to go
somewhere else.
People now, who have homes that are aging and have incomes that are fixed or
incomes that may be declining, are given some benefit through the Provincial
Home Repair Program. Up to $5,000 can be given without any payback required by
the person receiving it, under certain circumstances, to do work on their home.
It might mean electrical upgrades to install heating systems, in might mean roof
repairs so you stop leaks, it might mean windows and doors and those kinds of
things, so you do not have the drafts that normally would come and cause people
to have to put up their thermostats. There are all kinds of things that can be
done there, Mr. Speaker, with that $5,000. It does not have to be paid back. You
can actually get more than $5,000 to do that kind of work, if you want to enter
into a loan arrangement where on everything over $5,000 you are given a very low
interest rate.
Those kinds of initiatives that I have touched on are initiatives that are
available for all seniors. The approach this government has taken is that by
bringing in initiatives that raise it up for all seniors, we will, in effect,
raise it up for the Public Service pensioners. We understand the difficulties
that they are facing, we understand the challenges that they are facing, but we
feel that we can address their challenges and their difficulties by making sure
we do it for all seniors in the Province.
That is the approach we have taken, Mr. Speaker. We believe it is working, we
will show that it is working in future budgets, and I thank you for your time.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Leader of the Opposition.
MS JONES: Thank you, Mr. Speaker.
I am certainly pleased to rise and to speak in the debate today, on the
motion that was put forward by my colleague, the Member for -
AN HON. MEMBER: Port de Grave.
MS JONES: Port de Grave.
There are so many of us over here, Mr. Speaker, we tend to lose track.
Certainly, the motion put forward by the Member for Port de Grave, Mr.
Speaker, is a very important motion that actually impacts well over 20,000
people in our Province today.
Mr. Speaker, this is not an issue that has been taken lightly and we have
never suggested that it has been taken lightly by any particular government or
administration, but it is also an issue that needs to be elevated in the minds
of those people who make decisions within our Province. The reality is, that
people today who are public sector pensioners are living on incomes that are far
less, Mr. Speaker, far less than they ever intended for them to live on in their
retirement after giving service to the people of this Province for so many
years.
We will hear, I am sure today, as government continues to speak to the
motion, about programs like we just did from the minister opposite that are in
place to help offset the cost of living to seniors in our Province, and we have
never disputed that. We have never disputed the need to have home heating
rebates, to have subsidization of drug programs, to be able to provide seniors'
benefits to those in the Province who qualify, and we are certainly not
advocating today that any of that should change.
Mr. Speaker, do not skew the issue, because the issue that we are talking
about today has to do with a decade after decade old problem in this Province
that has gone unattended to and unfunded appropriately. Mr. Speaker, that is not
just a reflection on the government opposite but a reflection on governments
going back to 1989 with the exception, I guess, of 2002 when there was a modest
increase in indexing provided for at 1.2 per cent at that particular time. Mr.
Speaker, I will be the first to recognize that the current rate of inflation at
that time was still at 1.9 per cent, so even the indexing in 2002 at the 1.2 per
cent fell short of what the actual inflation rate was in the Province at that
particular time.
Mr. Speaker, we wanted to table this particular motion in the House of
Assembly because we feel that it should be on the radar of government to be
dealt with. We feel that the money that is available in the provincial coffers
today is able to adequately address this problem like it has not been able to be
addressed in the past.
For example, Mr. Speaker, when this program was created in 1965 it was done
at a time when inflationary measures were not the kind of phrases and
terminology that were being built into the contracts of that time. In fact, it
was not until the 1970s, until Trudeau came to government nationally, that we
started talking about escalation clauses in contracts and inflationary clauses
in contracts. When these pension plans were set up, from the very beginning,
they did not build in those measures. When governments say, through the years,
and continue to say today, the government opposite, that they did not pay for
any indexing program so therefore they should not get one, really, Mr. Speaker,
if you look at the contracts and the time frame in which they were negotiated,
inflationary language in those contracts was unheard of at that particular time.
This is something that developed over time.
Mr. Speaker, in 1989 they did receive a 2.5 per cent increase. I did not go
back to look up what the current rate of inflation was at that time but it was
probably on par with what the inflation rate was, so it was bringing them to the
current standard of living in that particular year. Again, as I said, in 2002
there was a 1.2 per cent indexing that was granted; but, Mr. Speaker, the Bank
of Canada themselves estimate that the cost of living has risen over the past
eighteen years by 48 per cent, and this has had a detrimental effect on seniors
all across the country, not just in our Province.
Mr. Speaker, while we look at broad-ranging programs that affect seniors and
support their initiatives we deal with a specific case, and that is the
pensioners of the provincial Government of Newfoundland and Labrador, who they
have served with for twenty-five and thirty-five years, Mr. Speaker, making this
government their former employer and therefore the only place that they can turn
to look for some kind of redress on their pensions over that period of time.
Mr. Speaker, we have listened to what the public pensioners have said. We
have listened to their president, Mr. Langdon, who talked about how the dollar
for pensioners has eroded over the years. In fact, Mr. Speaker, I think at one
point he said that what most pensioners receive today is only providing for 50
per cent of the cost of living in today's standards as to what it was when
they actually accepted those pensions and took their exists from government.
Mr. Speaker, this is the reason that we have wanted to elevate the issue. We
feel that government is in a position to address it. The minister has informed
me that for every 1 per cent that you would give in an indexing increase in the
pension plan it would cost the government about $40 million a year annually.
Yesterday, I did not have the actual numbers to look at what the full cost might
AN HON. MEMBER: Forever (inaudible).
MS JONES: Forever. Oh, 1 per cent is $40 million forever.
AN HON. MEMBER: (Inaudible).
MS JONES: Okay.
So, let me correct that, Mr. Speaker, because it gets better. It sounds
better, too, I say to the minister. It sounds better, and maybe we should be
advocating for more, but anyway the 1 per cent means it will be a $40 million
cost to the government over the course of time to index the pensions for the
retired public service employees.
If you look at that cost, which would be $40 million, and then you look at
what it would take to bring them up - and we are not advocating that government
should be going out now and giving a 48 per cent increase to public pensioners.
What we are saying is that you are in a fiscal position to be able to address
this problem like governments before you have not been able to.
For example, when the minister brought down the Budget this year he has
already forecast a surplus for next year - a surplus, at that time, which would
have exceeded over $500 million. That was based on the oil prices per barrel at
$87. Mr. Speaker, if you look at where the price of oil has gone per barrel
since March, or April, when the minister introduced the Budget, it has climbed
to $120 a barrel. It may even have exceeded that on occasion, but it has climbed
that high. That would indicate to us automatically that with the amount of
production that is out there, with the price at the level that it is, not
forecasting to take a dip any time soon, that the government's own numbers, in
forecasting a surplus for the next fiscal year, are way low. Instead of looking
like $500 million, Mr. Speaker, at the rate we are going now, it will again be a
surplus of well over a billion dollars.
We know that when governments make decisions to invest money, especially in
programs and in those kinds of indexing and wage increases, that they have to be
able to budget for it and sustain it over a long period of time. We certainly
understand that. In that understanding, we also realize that there is still room
for government to move on doing something for public sector pensioners. We are
asking today that it be put on the radar of government, that you give it strong
consideration, and you look at what needs to happen here to bring them in line
with a more reasonable rate of return as a reward for their service to
government than they are actually getting.
Do not bog it down with terms of contracts, because those arguments do not
hold weight in today's society. We can dig out many contracts that have been
signed by governments in the past that did not build in inflationary clauses or
escalator clauses that today we would never dream of negotiating without having
that kind of terminology into it.
Mr. Speaker, the public sector pensioners have formed a coalition in the
Province, actually formed it within the last month, and it does involve the
Public Service Pensioners' Association, the Retired Teachers' Association,
the Memorial University of Newfoundland Pensioners' Association, the Royal
Newfoundland Constabulary Association, the St. John's Fire Fighters Retirees'
Association, the NAPE local and the Retired Penitentiary Warders. So, Mr.
Speaker, they have already collectively formed a group as a coalition, not
necessarily to take on the government but to work with government, to work
effectively with government so that you understand the issues that they are
faced with and the circumstances that they are faced with, things like my hon.
colleague from Port de Grave already talked about, the hardship that many of
these people face every day in their lives because they have insufficient amount
of monies as a pension to be able to live on.
Mr. Speaker, the other piece to this is that every single year we are not
seeing things go down; we are seeing things go up everything, from the
medical benefits that they receive, which we have seen increases in the premiums
that we pay for medical benefits in the Province, so have they. They have seen
increases in everything from food products, and every day we are identifying a
new product because of the global impact of war around the world. It impacts
things like oil prices and food prices, and all the rest of it, and these things
are felt right at home, by people like ourselves and people like our pensioners
who have to pay more money.
Mr. Speaker, we feel that there is not a need for government to continue to
belabour this or provide a rationale for not doing it. We think that the Budget
surpluses themselves and the fiscal position of the Province speak to its
ability to be able to address the problem, and this particular coalition wants
to work with government to ensure that these problems are addressed. They do not
want to accept no as an answer, but rather they want to work to achieve a
compromise that at the end of the day will help relieve the financial burdens
that many of them have been faced with.
Mr. Speaker, the other issue that needs to be dealt with is the issue of how
the federal government claws back pension benefits as well; because, once these
individuals qualify for Canada Pension benefits they tend to enter into a phase
whereby the federal government claws back a certain amount of their money.
I have not really been able to get into the discussions around that aspect of
it, to understand it more fully, but I am sure that the minister would have
probably already provided some details with regard to that particular issue but
it is one that I have received a number of e-mails on, in terms of how the
percentage rate works and how the clawback works. Maybe there is something that
can be done to address that particular issue as well that would be able to
probably lessen the burden, at least, on some of the people who receive this
benefit, and how they are impacted.
Mr. Speaker, I know that many of the people who are going to talk today are
going to say that this is an issue that other governments could have addressed
and did not address. The reality is that many other governments in the past were
not in a fiscal position to address it. Even those that were not necessarily in
a fiscal position tried their best to address it, such as the government of
2002, when they looked at indexing at 1.2 per cent for pensioners at that time.
As small as it was, it was a reflection and an understanding that there was a
problem and it was a problem that should be dealt with within the fiscal
realities of any government to deal with them.
This government does have the ability to be able to address the problem, to
be able to bring some relief to the 20,000-odd public sector pensioners in this
Province, Mr. Speaker, who feel that they should be considered for indexing,
especially when you look at the rate of inflation and you look at how the cost
of living has risen in the Province over the last eighteen years.
Mr. Speaker, we certainly hope that government will not just provide excuses
or talk about universal programs that affect seniors, but we would like to know
directly, as the employer and the former employer of public sector pensioners in
this Province, when you are going to put them on the radar, when you are going
to consider giving them something substantial in terms of indexing at a time
when the Province can well afford to be able to do so.
Thank you, Mr. Speaker.
MR. SPEAKER: The hon. the Minister of Finance and President of Treasury
Board.
SOME HON. MEMBERS: Hear, hear!
MR. T. MARSHALL: Mr. Speaker, thank you.
It is a pleasure to stand here today to take
part in this debate.
I can assure the people of this Province that the Williams' government is
certainly cognizant of the adverse effects that the rising energy prices have on
the people of this Province, especially those who are on fixed incomes,
especially those who are on low incomes, and especially our seniors. I can
assure you that it is something we take very, very seriously, and I can assure
you that it is something that I know the Premier and all members of this
government and I am sure all members of this House watch very, very carefully.
We want to help our seniors. I do not think there is any group in the
Province that all of us would like to help and like to show respect to, than our
seniors, but we have an obligation to help all of our seniors. That is why the
Williams' government has taken a number of initiatives to ensure that all of
our seniors are helped, initiatives that will put money in people's pockets.
Realistically, Mr. Speaker, I think if you look at the initiatives that the
Williams' government has put in place since 2003, and especially in this year's
Budget and last year's Budget, the increases in those benefits that are going
to all seniors certainly would be larger than a 2 per cent or 3 per cent ad hoc
increase in the pension benefits that our retired civil servants do have.
Mr. Speaker, the position of the government is that we have to help all
seniors, and that will include our retired civil servants but not just our
retired civil servants. Indeed, it is all seniors, because that is the way to be
fair and that is the way to be equitable.
Mr. Speaker, it is important to note that, based on the latest figures we
have for the year 2006, there were 72,400 seniors over sixty-five who filed
income tax returns. That would include people without income, but who would file
returns to access government benefits. Of those 72,000 seniors, Mr. Speaker,
46,000 of them did not have an employer sponsored pension. These are people who
rely entirely on the benefits they receive from Ottawa, and the benefits they
might receive from the province government. Of the approximately 26,000 who do,
those over sixty-five, 10,000 are public sector pensioners, and the 46,000 who
had no employee sponsored pension would have an average income of about $15,000.
Mr. Speaker, it might be helpful for the purposes of this debate and I
commend the Member for Port de Grave for raising this in the House, because it
is important that we all discuss this, and I know that all MHAs, as we go around
our districts in the summer, will run into retired civil servants who will want
to discuss these issues with us it is important to note that, of the public
sector retirees, the average pension income is $16,700. This is in the public
sector pension plan. For those who have served longer, because obviously a
public service pension will increase the longer you have worked and the greater
contributions you have made over time, the retiree with twenty-five years of
service would have a $24,000 pension, and a retiree with thirty years of service
would have $26,300 pension.
Obviously, the longer you contribute to the plan the bigger the pension would
be. Obviously, someone who would retire at fifty-five, who would retire early,
would not have as large a pension as someone who would stay and retire at sixty
or sixty-five.
With the Teachers' Pension Plan it is higher; the average is $30,000. For
those who stay for twenty-five plus years the average would be $32,200, and for
those of thirty years the average would be $34,000.
Mr. Speaker, it is said by many that the first pillar of retirement, the one
we consider, are the benefits that are provided to all senior citizens by the
include, of course, Old Age Security, it would include the Guaranteed Income
Supplement.
The Old Age Security, I understand, this year is about $6,000. It is payable
to everyone over sixty-five. The Guaranteed Income Supplement, I am advised, is
about $7,500. Someone who does not have a pension other than the OAS and the GIS
would have, in total, an income of $13,500 a year. Those benefits are subject to
full indexing every quarter and, in addition, there are some supplemental
benefits such as a spouse allowance for a spouse who is sixty to sixty-four,
whose husband or whose wife is qualified for both the OAS and the GIS. There is
also a survivor's allowance for someone who may have lost their spouse,
someone who is sixty to sixty-four.
In addition, the next pillar would be the Canada Pension Plan, which is a
plan that everyone can contribute to, who is employed in this country. The
maximum benefit under the Canada Pension Plan is $10,500. Obviously, the amount
that one would receive or qualify for would be based on how much you have
contributed and how long you have contributed, because that is the way pensions
work. The more you contribute and the longer period of time you contribute is so
important. I know many of us, when you talk about retiring and you look at
retiring, the experts tell you that the earlier you start contributing and the
longer you contribute will add, in a major way, to the amount of retirement
benefits that you receive.
Mr. Speaker, the next pillar would be what I will call employer sponsored
pension plans. For those who do not have those, they would be Registered
Retirement Savings Plans. Those who have had the advantage of being a member of
a defined benefit pension plan, it is a plan where the benefits are certainly
set out.
Whereas, in a defined contribution pension plan, or a money purchase
pension plan, you do not know what your pension is going to be. You are going to
contribute to the plan, your employer is going to match those contributions, and
how well you do depends on how smart you are in choosing the investment manager
that is going to manage those funds.
At the end of the time, when you are ready to retire, you get a lump sum of
money, and then you use that to buy a life annuity or to buy a RRIF, and it is
what it is, but in a defined benefit pension plan, the benefits are set out, the
benefits are known. While you are an employee, you know what the benefits are
going to be, because there is a formula that is used, and of course it depends
on what your contributions are, and it depends on how long you have been a
member. The benefits of the plan are, in fact, known at that time.
Under the plan that the retired pensioners have, under the defined benefit
plan of this Province, indexing was not part of the plan. When the benefits are
set out, what would happen, an actuary is hired and the actuary would look at
the benefits and then cost those benefits, and then the contributions to the
plan would, of course, be based on what the actuary says. If indexing was to be
part of the plan, then obviously, that would have been costed as well, and the
employees and the employer would make the contributions.
Indexing is expensive, full indexing is very expensive, but that was not part
of the pension plan. Therefore, the contributions were not made. Of course, what
is happening now is that the benefits that our employees are receiving are the
benefits that were set out in the plan. The benefits that our retirees are
receiving are, in fact, the benefits that their contributions are paying for,
even though the plan certainly has an unfunded pension liability.
The plan is not funded enough to pay the benefits that are actually being
paid out, and I think that is why when the inquiry was set up in 1989 or 1990
I think it was called the Cummings Inquiry the recommendation was that
there should not be any more ad hoc increases, that there should not be any more
until the benefits that are being paid out now are fully funded, and that if any
enhancements were to be made in the future to those benefits, that those
enhancements will be fully funded as well.
Mr. Speaker, when the Williams government took office in 2000
MR. SPEAKER: Order, please!
I remind the hon. member that on a number of occasions now he has referred to
the government by using the name of the Premier and that is not appropriate in
debate, so I would ask him to refrain from doing that.
MR. T. MARSHALL: Thank you, Mr. Speaker.
When the present Premier and his government took office, I remember reading
in the Auditor General's report that there was an unfunded liability of about
$4 billion, and I remember thinking, will any government be able to deal with
that, ever get to that, to correct that problem. The teachers' pension was
only funded to the tune of 26 per cent. It was forecast to go bankrupt in 2012.
Government worked very hard to deal with this, and after the Premier negotiated
the $2 billion from Ottawa, from Prime Minister Martin, then the government had
to decide what should we do with this $2 billion? There were many people who
wanted that $2 billion into programs that they thought were important. The
Premier said, no, we are putting the money, the entire amount of money, into the
pension plan because we have to secure the pension plans for the future and for
the benefit of our retirees. That was done and in addition to that, in addition
to the $2 million going into the that is $2 billion, I should say, going
into the teachers' plan, there was just under another $1 billion that went
into the public service sector plan to get those plans up to, I think it was
around 86 per cent funded, so that they would be secure for the future. That was
done. Now, they have fallen back a bit because there were bad investment results
last year. I think the average now is about 77 per cent.
Now you have $3 billion in the funds, in the plan, that hopefully as
investments improve will grow, so that hopefully some day those plans will be
fully funded, even go into surplus and out of that surplus enhancements can be
paid to our pensioners. We certainly look forward to that day.
Mr. Speaker, the motion is that government consider the advisability of
resuming the practice of matching increases for public services pensioners to
wage increases. Now, that is the ad hoc increases which the commission that was
set up by the Wells government in 1999 rejected. The commission recommended that
this ad hoc indexing be discontinued and that any formal indexing should be
properly funded by both the employees and the employers through contribution
increases.
Mr. Speaker, an ad hoc increase of 1 per cent would increase the plan
liabilities by $40 million. An ad hoc increase of 8 per cent would obviously
increase the unfunded pension liabilities of $320. So, these increases in the
deficit of the plan, or in what is called the unfunded liability of the plan or
the debt of the plan, would totally undermine the efforts that the government,
under the Premier, the efforts that put money into the plans to reduce the
unfunded pension liability. This recommendation would ask us to go back to
increase the unfunded liability which really would undermine the efforts that
have taken place not only by this government but there were also payments made
by previous governments into the fund.
In spite of the efforts made by former governments, in spite of the efforts
made by this government, in spite of the $3 billion invested into the pension
plans, the plans are still under funded to the tune of about $2 billion. I know
the Leader of the Opposition talked about indexation, the cost of full indexing
of all employees from the date of retirement would require the contribution
increases to increase by 1.55 per cent for the Public Service Pension Plan and
2.35 per cent for the Teachers' Pension Plan, and in addition, the total
unfunded liabilities would increase by $1.8 billion.
Now, this increase in unfunded liability for these massive amounts would not
be as high if the indexing was just from age sixty-five. It would be more just
under three-quarters of a billion dollars as opposed to $1.1 billion. The
increase in these unfunded liabilities would have to be paid for by all
taxpayers, including seniors who are not receiving a pension and including
workers who are not members of the pension plan. It would be unfair to use the
taxes of all of our citizens just to benefit one group of seniors. Surely, if we
are going to protect our seniors we have to protect all of our seniors,
including our civil servants, but not just our civil servants. This is the
position that government is going to take. If government is going to use tax
dollars to help senior citizens, then we believe that all senior citizens must
benefit.
Mr. Speaker, we have, as I said earlier, brought about a number of
initiatives. I met with retired teachers and I met with retired public servants
and they have given me their advice as to things that we should do to help them
cope with the rising cost of living. We increased the threshold for the Seniors'
Benefit. We pay a Seniors' Benefit each October. Fourteen thousand seniors
received that benefit who were not getting it before last year. This year we
doubled the benefit from about $400 to $800, just under those amounts. There are
31,500 people who were not getting those benefits before who are going to get a
cheque of just under $800 since October.
We also eliminated - and this was the advice from the Retired Teachers'
Association - the 15 per cent tax on insurance. We made amendments to the low
income tax reduction which eliminated 20,000 people from the provincial tax
rolls. We allowed seniors, starting in 2007, to split their pension income
resulting in tax savings. We eliminated the 15 per cent on insurance. We
enhanced the Home Heating Rebate from $100 to $300, from giving the benefit to
11,000 people to giving the benefit to in excess of 75,000 people this year. All
of this puts money back into people's pockets.
Last year we had the largest tax cut in the history of the Province, $160
million in reduction in fees and taxes; this year, a further $178 million. It is
amazing that this year the people of this Province are paying $340 million less
in taxes and fees than they did two years ago. That is something that should be
applauded and celebrated in this Province. We have reduced motor vehicle
registration fees. Retired teachers told me that is something we should do, and
we did it in this Budget.
MR. SPEAKER: Order, please!
I remind the hon. minister that his speaking time has expired.
MR. T. MARSHALL: Thank you, if I might have leave just to warp up?
MR. SPEAKER: Does the hon. member have leave?
AN HON. MEMBER: By leave.
MR. SPEAKER: The hon. the member by leave.
MR. T. MARSHALL: Mr. Speaker, I could be here for another hour, going
through the list of the things we do.
I am looking at the lower rental rate for senior tenants that the Minister of
Human Resources mentioned, the $6 million - the $24 million over six years, to
more than double the funding to the Provincial Home Repair Program - I always
call that the RRAP program - and that will eliminate the housing list.
I know the hon. Member for Port au Port told me about $7,500 going to seniors
who were disabled, to help them to put ramps and lifts in their homes; $27.5
million for the Newfoundland and Labrador Housing's Modernization and
Improvement Program.
When I went door to door, Mr. Speaker, in the first campaign, when I first
entered public life, I ran into a number of widows, in particular, in the age
group between fifty-five and sixty-four, who were concerned about the cost of
heat and the cost of drugs. They said to me: Which do we pay, the heat or the
drugs?
That is why we brought in - we expanded the new drug program. That, I think,
we are more proud of, something that the Premier did, than any other program: to
provide the drug card to 97,000 people, to make sure that no one has to pay more
than 4 per cent or 5 per cent of their income on drugs. I am extremely proud of
that. At the same time, we took that home heating program, to deal with the heat
aspect, and took it from $100 for 11,000 people to $300 for over 75,000, and
$400 in Coastal Labrador.
Mr. Speaker, we will continue to be cognizant of the costs that our seniors
are facing, and as our financial position continues to improve and we can do
more, we will have more initiatives, we will continue to bring forward
initiatives that will help our seniors cope with the rising cost of living, and
we look forward to that, Mr. Speaker.
Thank you.
SOME HON. MEMBERS: Hear, hear!
MR. SPEAKER: The hon. the Member for Signal HillQuidi Vidi.
MS MICHAEL: Thank you very much, Mr. Speaker.
I am very pleased today to be able to stand and speak to this motion put
forward by the Member for Port de Grave, and I am very glad that the member put
this motion on the Table and is giving us, because of that, an opportunity to
speak to the needs of the pensioners.
We are dealing with a special group of people. We are dealing with the public
service pensioners and the motion, as I read it from when the notice was given,
is that the House of Assembly urges the government to resume the practice of
matching increases for public service pensioners to wage increases for public
sector employees.
I am struck by what I have heard a couple of the ministers say today, and
when I went back over Hansard and looked at answers to when I had raised similar
questions in the House to a former Finance Minister, I am struck by the
commonality of one of the things that they are saying. I guess it is the
position of the government, so they are all saying it. I am not sure that the
ministers today used this term - but it was, I think, and when I read Hansard it
was used - but the concept was still the same: that the pensioners are a subset
of the group of seniors in our Province and, while they may have a particular
issue, the large group of seniors is the group that government has to be
responsible for, and they are going to be taking care of that large group and
not treating a subset of that group differently.
That is what I would like to speak to first, because when we are talking
about the public pensioners we are talking about a group of people who are in a
very particular situation. They worked for government, directly or indirectly.
They were public service sector workers. From that end, they had a system that
they were part of, a financial system that they were part of, and part of that
was the pension system.
As the Minister of Human Resources, Labour and Employment said, we do not
want to beat to death the history of the pension plan, but going right back to
1965 when it first started, and for about the first fifteen years of that plan,
it wasn't only that government took from it; government did not even pay into
it initially, although that was the initial agreement. It should have been paid
into; the funds should have been built up and invested. We know none of that
happened. I do not want to go back over that but I do need to mention it to get
at the point that I want to get at, that the pension plan was part of the
expectation of public service workers. Yes, as pensioners they are seniors, but
because of the particular situation they were in there may be