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April

6, 2017

HOUSE OF ASSEMBLY PROCEEDINGS

Vol. XLVIII No. 7

The

House met at 2 p.m.

MR. SPEAKER (Osborne):

Order, please!

Admit

strangers.

Please

be seated.

The hon.

the Minister of Finance and President of Treasury Board.

SOME HON. MEMBERS:

Hear, hear!

MS. C. BENNETT:

Mr. Speaker, I move, seconded

by the Premier, that this House approves in general the budgetary policy of the

government.

MR. SPEAKER:

The motion is that the House

approve in general the budgetary policy of government.

The hon.

the Minister of Finance and President of Treasury Board.

MS. C. BENNETT:

Thank you, Mr. Speaker.

Mr.

Speaker, it is a pleasure to rise in this Honourable House today to deliver a

budget that is fair and balanced and continues our government on a path to

realizing our potential and returning our province to surplus by 2022-23.

Budget

2017 continues our government's commitment to strong fiscal management and

builds on the principles outlined in The Way Forward, which is our vision for

sustainability and growth.

Mr.

Speaker, in the wake of the serious fiscal situation facing Newfoundland and

Labrador, we have taken a smart and focused approach. We continue to take an

evidence-based approach to how projects, as well as programs and services are

supported. At every opportunity we need to perform due diligence and achieve the

best possible outcomes. The measures we are taking will benefit future

generations our actions today will help realize our long-term potential.

The

magnitude of the fiscal challenges that we inherited cannot be understated. The

easy solution would to have been to ignore the situation and pass the problem on

to future generations. Instead, we chose to make some very difficult and

responsible decisions for the long-term benefit of Newfoundland and Labrador.

In last

year's budget, with only four months in office, we knew that unless we increased

revenue, we could not pay for basic programs and services. Without the measures

taken our province would have faced serious challenges with rating agencies and

banks. Some believe it could have even led to bankruptcy. Our government made

hard choices and asked taxpayers to dig deep into their pockets so we could

close the gap between our revenues and our costs. We are on a path to gain

control of our finances and strike the balance between better spending controls

and valuable investments in communities, people and the economy.

Mr.

Speaker, Budget 2017 reflects progress. It reflects a methodical and responsible

approach to more effectively managing the delivery of public services and our

fiscal situation. We will continue the work that will reshape the delivery of

services in Newfoundland and Labrador. At every opportunity we will work to

achieve the best possible outcomes.

Mr.

Speaker, we are thankful to the women and men in this province who challenge and

remind us daily that we must do our best because the province deserves no less.

SOME HON. MEMBERS:

Hear, hear!

MS. C. BENNETT:

Aware of the challenges that

lay before us, and the rightful expectations of residents, I will now outline

our fiscal environment and continued progress.

Fiscal Review 2016-17

Budget 2016 we projected a deficit of $1.83 billion. Over the course of the past

twelve months expenditures have been reduced and revenues have improved. This

has led to a revised deficit of $1.1 billion.

Fiscal Forecast

Mr.

Speaker, in last year's budget our government outlined a seven-year plan to

return this province to surplus. Today I am happy to announce that we are

currently ahead of our forecasting in terms of deficit projections and we are on

track to return to surplus in 2022-23.

SOME HON. MEMBERS:

Hear, hear!

MS. C. BENNETT:

Before we get into the

details of our forecasting, it is important to understand some of the underlying

economic assumptions that have shaped our thinking for Budget 2017.

As you

know, Mr. Speaker, following years of continued expansion, the Newfoundland and

Labrador economy has been impacted by several factors such as the transition of

several major projects from the development to production stages combined with

an overall decrease in commodity prices. That being said, there are also several

emerging developments that hold promise for Newfoundland and Labrador. This is

highlighted by the first oil being expected from the Hebron field later this

year, along with increases in production levels in the province in 2018, and for

several years to follow.

We are

optimistic about the future of our offshore oil industry.

believe that Hebron will be one of a number of future developments in our

offshore. Through the work of the Oil and Gas Industry Development Council, we

will also position our province as a preferred location for development. This

brief is supported by the past three years of offshore licence auctions, as well

as exploration and development.

While

challenges are being faced in the fishing industry, the seafood sector continues

to be a significant contributor to our province, particularly in rural areas. In

2016, seafood production value reached a high of $1.4 billion and directly

employed over 17,000 people. Significant opportunities exist in the aquaculture

industry, and we will double production capacity while expanding into a new

region of the province, Mr. Speaker.

Growth

and development is not only found on the sea, but also on land.

Muskrat

Falls is generating benefits for workers and businesses by contributing

approximately $12 million per week to the provincial economy.

Mining

continues to be an important part of the economy, with 2017 bringing increased

construction activity of the underground mine at Voisey's Bay, the completion of

Canada Fluorspar's mine is St. Lawrence, and significant output increases from

the Long Harbour Nickel Facility.

Lumber

production is expected to increase to approximately 83 million board feet, along

with increases to the volume and value of newsprint produced. Our forestry

sector continues to find its footing in a competitive global market and our

government will continue to support this important part of our economy.

The

provincial agri-foods sector is a diverse and growing component of our economy.

Farm receipts are expected to grow across all sectors of the agriculture

industry in 2017.

Mr.

Speaker, the growth of our tourism industry is particularly exciting as it is

generating economic wealth in all regions of the province. This has been enabled

by improvements in transportation infrastructure, capacity and tourism

marketing.

Nalcor/Muskrat Falls

Mr.

Speaker, since forming government, we have taken steps to improve the governance

of Nalcor Energy. Under their new leadership, performance of key projects has

improved specifically the Muskrat Falls project. In Budget 2017, the

Provincial Government is making an equity investment of $485.4 million in Nalcor

Energy, which is a reduction of more than $800 million from last year.

Our

government in collaboration with Nalcor committed to controlling costs and

ensuring all necessary steps are taken to identify and mitigate any remaining

engineering and construction risks as Muskrat Falls proceeds.

Mr.

Speaker, our vision for the province does not include the doubling of

electricity rates. It is not acceptable for residents to pay excessive

electricity rates.

Future

electricity rate management is a priority for our government. Nalcor has been

directed and committed to sourcing income of $210 million to lower electricity

rates starting in 2020-21, with this preliminary rate reserve growing to $245

million in the following fiscal years. We are committed to ensuring that

electricity rates are competitive and will undertake work to further define

activities to lower power rates and arrange the dollars required.

Since

coming into office, our government has also been working with our federal

colleagues to secure a commitment of additional load guarantee support for

Muskrat Falls. As a result of these efforts, we secured a commitment of support

of up to $2.9 billion.

Price Assumptions

Mr.

Speaker, with all these factors in mind, let us turn our attention to the price

of a barrel of oil and the US-Canada exchange rate.

Budget 2017, we are forecasting oil at $56 USD per barrel. This is a prudent

estimate, based on current forecasts, but we know too well the volatility of

oil, so we are estimating cautiously.

Budget

2017 also forecasts the US-Canada exchange rate to be 75 cents. This estimate is

based on the average of eight forecasts and is, again, a prudent estimate based

on best information available.

The full

details of these assumptions will be able to be found on the Department of

Finance's website.

Revenue

Mr.

Speaker, I am happy to confirm to the people of this province that there are no

new taxes or fee increases in Budget 2017.

SOME HON. MEMBERS:

Hear, hear!

MS. C. BENNETT:

Mr. Speaker, our government

is responsive to the needs of Newfoundlanders and Labradorians. In 2017

residents will benefit from two reductions to the Temporary Gas Tax. Beginning

on June 1, we will reduce the gas tax by 8.5 cents per litre; on December 1,

2017, we will reduce it further by four cents per litre, for a total reduction

of 12.5 cents per litre. We will review the remaining four cents as part of the

2017 fall fiscal update.

communicated in last year's budget, tax increases must be balanced with tax

competiveness. We will initiate a comprehensive independent review of the tax

system this fiscal year, which will be completed within our current mandate.

Our

province continues to lead Canada in terms of revenue generation on a per capita

basis.

Expenses

Mr.

Speaker, we have been clear that our province has a spending problem. On

countless measures, our province has led Canada in expenditure per capita,

without the necessary outcomes to demonstrate value for money.

Launched

last year, The Way Forward has

provided our departments and agencies with a guiding document to review

expenditures and prioritize investments. Two key elements are important in the

short-term of this fiscal year, zero-based budgeting, and the implementation of

a more efficient and balanced management structure.

As we

proceed, it is important to manage government benefits and salaries as they are

a significant expenditure of the Provincial Government totaling $3.3 billion.

recognition of our challenging fiscal situation, our government will propose

legislative changes to implement a wage freeze for management and all non-union

employees for the current fiscal year. This includes core government and

agencies, boards and commissions.

Over the

past year, our government, through careful planning and smart decision-making,

has reduced expenditures by $283 million as a result of zero-based budgeting,

changes to the management structure, savings to agencies, boards and

commissions, annualized savings, as well as actuary and accrual adjustments.

These are responsible choices for our government to make, Mr. Speaker.

The

projected annual deficit for Budget 2017 is $778 million, which is below our

targeted deficit of $800 million.

SOME HON. MEMBERS:

Hear, hear!

MS. C. BENNETT:

Mr. Speaker, when our

government took office, the previous administration had a borrowing requirement

of $2.4 billion. That was financed through $400 million in bonds, with the

balance funded through 91 day T-Bills.

For

Budget 2017, we have reduced our borrowing by $2 billion, down to $400 million.

SOME HON. MEMBERS:

Hear, hear!

MS. C. BENNETT:

This marks a significant

improvement in stabilizing the fiscal situation.

Investing in Priority Areas

Mr.

Speaker, the job of government is to govern and the fiscal crisis is not, nor

should it be our sole focus. We have a job to do, and that job extends beyond

the balance sheet.

Before

we finalized this budget, we took the time to properly consult with

stakeholders. While all the input of all groups was considered, in particular I

would like to thank the Women's Policy Office for the important role they played

in working with departments to ensure that the perspectives of women were

considered. We must recognize when inherent inequality exists within the

province, and take positive action to implement measures directly aimed to

address the inequalities and improve the lives of those who are impacted.

Our

government takes great pride in the announcements we have made today with

respect to expenditures that support communities and individuals in Newfoundland

and Labrador.

Education and Skills

Development

Mr.

Speaker, our government has prioritized the education of children and youth and

the creation of a skilled workforce as being essential to the economic growth

and sustainability of our province. We also appreciate that learning is

life-long, starting in the early years of a child's life. In this year's budget

we are making smart investments that will bring long-term benefits to all

regions of this province.

Today I

am proud to announce $3.3 million in annual increases to support early childhood

educators and families.

SOME HON. MEMBERS:

Hear, hear!

MS. C. BENNETT:

We are adding $2 million to

the Child Care Subsidy program to reduce daycare costs for low and middle income

families. We are also increasing the Early Learning and Child Care Supplement by

$1.3 million, and providing early childhood educators with an increase in the

supplement of $1 per hour.

Budget

2017 continues our commitment to full day kindergarten with an allocation of

over $13 million to continue this program.

Mr.

Speaker, this government remains committed to the principles of inclusive

education, of promoting the right of all individuals to attend school with their

peers and to receive appropriate and quality programming. Accordingly, we are

allocating approximately $120 million for inclusive education, including an

additional $500,000 to increase student assistant hours.

The

Premier's Task Force on Improving Educational Outcomes is completing their

important work and will be providing recommendations to improve our education

system. Their work is supported by a $100,000 investment.

Mr.

Speaker, our government appreciates the importance of investments in educational

infrastructure as it contributes to a modern learning environment. This year,

$53.8 million has been allocated for new school construction, extensions,

renovations, and priority repairs and maintenance for K-12 schools.

We are

restoring the $652,500 operating grant which will be added to the $10.7 million

of funding provided to the Provincial Information and Library Resources Board,

Mr. Speaker. This grant will allow time for the independent review of the

provincial library system to be completed, and for its recommendations to be

considered by both the board and government.

recognize that for many individuals, a post-secondary program of study is

required for the labour market. Our government continues to provide significant

support for accessible and affordable public post-secondary education.

Memorial

University is a cornerstone of education and skills development. It is a driver

for economic activity and for youth to prepare themselves to lead our

communities and our business sectors.

This

year, we are providing over $316 million to Memorial University. This represents

the highest public investment as a percentage of a university's general

operating revenues of any university in Canada.

addition, over $89 million is being provided to the College of the North

Atlantic and its 17 campuses so they can continue their important work.

Our

government is committed to maintaining the existing tuition freeze at Memorial

University and the College of the North Atlantic.

Through

changes to the Student Loan Program, we are now able to maximize access to the

federal portion of the loans before any provincial contribution. This

federal-first student loan policy provides the same overall funding to students,

and provides the province with annual cash savings of $12.6 million.

Budget

2017 also provides funding for many programs and services to maintain a skilled

workforce and to prepare Newfoundlanders and Labradorians to meet emerging

labour demands.

Safe and Sustainable

Communities

Mr.

Speaker, safe communities provide individuals with peace of mind knowing that

they, and their families, are relatively safe from harm. A recent decision from

the Supreme Court of Canada, known widely as the Jordan decision, has resulted

in unprecedented challenges to our justice system; but our government is

committed to meeting these challenges head on.

Budget 2017, we are investing over $2 million in a number of justice and public

safety initiatives, including planning for a new court complex in St. John's,

measures to avoid unreasonable delays in trials and actions to address the

increasing demands on the Supreme Court Family Division. Furthermore, there

will be renovations to the Supreme Court in St. John's and funding for planning

to replace Her Majesty's Penitentiary.

In an

effort to divert non-violent offenders from custodial sentences, we will

determine the feasibility of a drug treatment court. This program would involve

specialized court monitored treatment and community supports for individuals who

commit non-violent offences caused by drug addiction.

This

province, by utilizing available federal funding, is committing $250,000 to

establish a Sexual Assault Response Pilot Program. The program would provide

victims of sexual assault with an independent legal advisor in order to increase

their understanding of the court process.

Mr.

Speaker, we are a province that has a deep culture and economic connection to

the ocean. It has sustained our coastal communities for generations and been the

livelihood of many.

Our

government is committed to an inquiry into the search and rescue operations of

our province to ensure that we are supporting the safety of our people.

As part

of The Way Forward, we are committed to utilizing all available leveraged

funding. That is why our government committed $43.5 million towards

infrastructure to leverage $70.6 million in federal contributions through the

Clean Water and Wastewater Fund.

We are

also making a provincial commitment of $35 million in project approvals over the

next two years to leverage $25 million in federal funding through the Small

Communities Fund of the New Building Canada Fund. We have also committed $15

million of provincial funds to leverage federal funds for National and Regional

Projects of the Provincial-Territorial Infrastructure Component of the New

Building Canada Fund.

Mr.

Speaker, municipalities in Newfoundland and Labrador need help to lay the

foundation for their future, have access to the resources they need to operate

effectively, and have access to funding to assist their residents during

unanticipated crises. Budget 2017

helps municipalities across all fronts.

As noted

in March by the Minister of Municipal Affairs and Environment, we are committed

to over $100 million in multi-year capital works and municipal capital works

projects. Beyond that, we are providing communities with long-term planning

windows to enable them to better access provincial and federal funding.

Our new

infrastructure program will provide residents of this province with improved

access to high quality water, better wastewater treatment, and enhanced disaster

mitigation and incentivizes communities to collaborate regionally to share

infrastructure and services.

Mr.

Speaker, we are also committing $22 million to keep municipal operating grants

at their current levels and increasing the municipal portion of the provincial

gas tax revenue. The municipal share of gas tax revenue will increase by

one-third, bringing the total commitment to $7.1 million.

We are

also providing $2 million to the Special Assistance Grant program to assist

communities with emergency and small capital works needs. Finally, we are

committing $1.88 million for municipalities to obtain new firefighting vehicles

and equipment. This is a continuation of the value we have placed on

firefighters and builds on our new presumptive cancer legislation.

Healthy Living

Mr.

Speaker, through an overall commitment of more than $4 billion, Budget 2017

demonstrates our government's support of such areas as mental health, healthy

living, infrastructure, and seniors' support.

I would

like to take a moment to pause and express our sincere thanks for the

outstanding work of the All-Party Committee on Mental Health and Addictions.

They took their work seriously and provided meaningful recommendations for

government; and government takes its duty seriously as well. Accordingly, we are

committing $5 million to advance the committee's recommendations, and are being

supported by an initial investment of $1.4 million in federal funding, which is

a part of the agreement made under the Canada Health Accord for mental health.

SOME HON. MEMBERS:

Hear, hear!

MS. C. BENNETT:

Through Budget 2017, our

government will support family doctors, nurse practitioners, nurses, social

workers, and paramedics to expand primary health care teams through an

investment of $2.5 million.

We have

made a multi-year commitment to infrastructure investments in health. This

commitment includes $43 million in repairs and renovations to health facilities

and the replacement and upgrading of medical equipment. It includes $13.2

million to advance the replacement of Western Memorial Hospital. It includes

$7.5 million to advance the replacement of the Waterford Hospital, and $4.6

million to increase long-term care capacity in Corner Brook and Central

Newfoundland, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MS. C. BENNETT:

We also know that the most

effective health programs are the ones that support healthy living and wellness.

That is why we are committing $1.79 million to the Community Healthy Living

Fund. This fund will provide for sports and recreation facilities and

infrastructure.

We are

also going to encourage youth to use those facilities and infrastructure. We are

committing $1 million toward active living programs that are targeted towards

youth.

Competition has been shown to increase participation rates across certain youth

populations. So we are committing $571,200 to support sport development

initiatives and travel. Additionally, we have seen that we are more than capable

of competing nationally and internationally, so we are committing $681,000 to

support the Canada Games teams and other high-performance athletes, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MS. C. BENNETT:

Wellness also encompasses

more than activity; eating is an important component of healthy living. That is

why we are committing $1.3 million to healthy eating, supporting groups such as

the Kids Eat Smart, Food First NL, and the School Lunch Association.

Sometimes healthy living is about adding activities, sometimes it is about

stopping bad habits. We are continuing our support of smoking cessation by

contributing $325,000 to the Newfoundland and Labrador Lung Association's

Smokers' Helpline.

Recognizing the important role that community groups play in delivering programs

and services, $115.2 million is being provided in operational funding to

community groups in this province. This includes the commitment to maintain core

funding for 2017-18 while a multi-year grant funding systems have been

developed.

Supporting Seniors and

Vulnerable Residents

Mr.

Speaker, the Provincial Government is committed to greater equity for persons

with disabilities. We continue to work side by side with our stakeholders,

community groups, and individuals to help ensure people with disabilities can

participate in their communities.

Achieving full inclusion requires a new way of thinking, and our government is

our decision making. Integrating the knowledge and experience of persons with

disabilities continues to be vital in the development of our programs, policies,

and services.

Our

government has committed to a number of initiatives such as the development of

an inclusion-based disabilities act, and accessible taxi and vehicle programs,

to help people with disabilities remain active participants in their

communities.

Through

an investment of $120 million we will be maintaining the Newfoundland and

Labrador Income Supplement, and Seniors' Benefit. Combined, these programs

assist 155,000 individuals and families in our province, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MS. C. BENNETT:

Every day, child protection

social workers in our province work to assess the safety of children and make

decisions to ensure their protection.

We also

know that it is essential to modernize our approach to child protection. That is

why we are committing $305,800 to train our child protection staff in a new

decision-making model for the Protective Intervention Program. This new model

supports professional judgement by providing individuals with up-to-date and

efficient decision-making tools.

We know

that housing is critically important to vulnerable populations. Finding a

suitable home and maintaining that home are daily challenges to some. Our

government recognizes this, and is responding accordingly.

provide on-site outreach services to help promote housing stability and

self-reliance to those at risk of homelessness, we are continuing our annual

commitment of $1 million.

We are

also allocating $10.6 million to the Rent Supplement Program. This program is

administered, in collaboration with private landlords, to allow lower income

households access to more housing options. Mr. Speaker, it is also important to

note that 54 per cent of the clients of this program are seniors.

We also

are committing $7.6 million to supportive living. This money will go to 37

non-profit and community-based groups that operate 51 projects throughout the

province. Those organizations help individuals with complex needs find and

maintain long-term housing.

Budget

2017 involves the development of a responsive, integrated and sustainable

approach to complex care management based in the community. We need to provide

care in the home and in the community where possible and appropriate, and in a

hospital only when necessary.

Through

the Canada Health Accord, our province will receive $87.7 million over the next

10 years for home and palliative care, including $2.9 million in 2017. We will

invest $2.5 million into a Home First Program, designed to provide the necessary

supports to individuals so they can stay in their home as long as possible.

SOME HON. MEMBERS:

Hear, hear!

MS. C. BENNETT:

Mr. Speaker, to help reduce

high energy costs for lower income individuals, we will be investing $5 million

over three years in a new Home Energy Savings Program. Grants will be provided

for low-income households for cost-effective home upgrades to improve energy

efficiency. A new Home Energy Efficiency Loan Program will offer low-interest

financing for energy efficiency home upgrades.

Mr.

Speaker, we also know that while the work of all community groups is important

in their particular areas, some community groups focus on especially vulnerable

populations. Recognizing this need and the fact that core funding has not

increased for many of these groups for some time, Budget 2017 is providing $7.8

million in total funding to transition houses.

SOME HON. MEMBERS:

Hear, hear!

MS. C. BENNETT:

This amount includes $780,000

in new funding to help protect women and children fleeing from violence.

We are

also increasing total funding to over $3 million for community groups that

service women in the area of violence prevention, mental health, career

counselling, and advocacy. This annual increase of over $400,000 recognizes that

our difficult fiscal situation may disproportionately impact certain members of

our society. We cannot forget our duty to act for all citizens, and to provide

them with the supports that meet their individual needs.

Indigenous Communities

Our

government supports Indigenous communities and is focused on investments,

programs and services that improve their social, health and economic well-being.

Later

this spring, for the first time in our province's history, the Premier will lead

a roundtable discussion with the province's Indigenous leaders to discuss

matters which are important to them and to ensure that our government's programs

and services reflect their needs.

SOME HON. MEMBERS:

Hear, hear!

MS. C. BENNETT:

An example of this commitment

is our participation in the National Inquiry into Missing and Murdered

Indigenous Women and Girls. Through this process, we will work collaboratively

to ensure that our country does a better job of making decisions that reflect

the needs of Indigenous people. Budget 2017

includes $285,000 to establish a Family Information Liaison Unit to provide

services to those who are participating in the national inquiry.

Labrador

As a

government, we appreciate the cultural and economic contributions of Labrador.

This is the reason why we joined with community stakeholders to raise the

Labrador flag on our province's borders with Quebec we appreciate the

importance of the flag.

To link

communities and provide people with greater access to important services, we are

investing $55.7 million to advance the hard surfacing of the Trans-Labrador

Highway. Not only does it link Labradorians but it also provides a direct link

to mainland Canada, Mr. Speaker.

enhance the winter highway trail system on the north coast of Labrador, more

than $300,000 will go towards a new groomer. This will be the final addition to

fleet upgrades and will help the winter trail system to remain open.

We also

appreciate the unique challenges that exist in Labrador in terms of the delivery

of justice and have identified the strains on the court system in Happy

Valley-Goose Bay.

To make

the court safer for those using its services, we are investing approximately

$370,000. With this investment, the number of Sheriff's Officers will be

increased, and an additional court manager will be hired to assist in the

scheduling and administrative matters.

It is

important that all of our province's youth have the opportunity to participate

in sport competitions. In particular, we appreciate the costs associated with

travelling from Labrador to the island and are committing $730,000 to the

Labrador Travel Subsidy for championships that are held on the island portion of

the province.

From an

environmental perspective, it is important that we secure a greater

understanding of the region's caribou population as it has an immense connection

to the heritage of Labradorians. To support this activity, we will be allocating

$100,000 per year for the next two years for the Labrador Caribou Initiative.

In this

fiscal year, we will also conduct environmental assessments of the former

military radar sites in Labrador.

Other

investments that we are continuing this year include $100,000 in operational

funding for the Combined Councils of Labrador and $50,000 for the Labrador

Aboriginal Nutritional and Artistic Program.

These

initiatives are in addition to the programs and services that are being

delivered through all departments in Labrador.

Mr.

Speaker, I highlighted earlier that we are phasing out the Temporary Gas Tax.

Accordingly, on June 1, the rebate for Labrador Border Zones, which was set at

10 cents per litre last year, will be reduced to 1.5 cents per litre until

December 1, at which time it will be discontinued. These areas are Labrador West

(which include Lab City and Wabush) and Southern Labrador (from the Quebec

border to and including the community of Red Bay).

implemented in 2016, the Temporary Gas Tax on the north coast of Labrador will

continue to be reduced to the point that the price per litre does not exceed

$1.55 or the temporary gas tax has been fully reduced.

Infrastructure

Mr.

Speaker, analysis has shown that targeted infrastructure investments are a key

driver of economic activity. They provide valuable jobs during construction and

support continued economic growth once operational. Our government spoke with

key stakeholders with industry and the public, and what we heard was clear; plan

further in advance.

Accordingly, our government is proud of our commitment to a five-year, $3

billion infrastructure plan.

SOME HON. MEMBERS:

Hear, hear!

MS. C. BENNETT:

Mr. Speaker, this will result

in the equivalent of 4,900 full-time jobs on an annual basis. It will also allow

businesses to better plan, and most importantly, Mr. Speaker, it allows cost

savings to be passed on to government.

Just as

an example of how better planning leads to better outcomes, two years ago this

province paved approximately 166 kilometres of road at a cost of $53.3 million.

Last year, we paved 256 kilometres of road for $47.7 million. That is 90 more

kilometres of road, for $5.6 million less, Mr. Speaker.

SOME HON. MEMBERS:

Hear, hear!

MS. C. BENNETT:

We have also made significant

multi-year commitments to roads. We are committing $77.2 million to the

Provincial Roads Program and $21.2 million to continue the development of the

Team Gushue Highway. We are investing in roads because they are a tangible

connection for us across this vast province.

Industry and Business

Mr.

Speaker, we have set a stronger, more diversified province as a priority in

realizing Newfoundland and Labrador's potential. Through investments in health

care, education, transportation infrastructure and directly in small businesses,

we are supporting community and economic growth.

Budget

2017 recognizes the need for strengthening Newfoundland and Labrador's economic

foundation and providing real actions to achieve our goals. Through strategic

investments in industry and business, we can build the foundation to long-term

success.

Newfoundland and Labrador is home to increasingly innovative and

knowledge-driven industries whether it is in ocean technology or aerospace or

defence, our companies are operating on the global stage. Our province's

advanced technology sector is valued at more than $1.6 billion and employs close

to 4,000 employees.

Through

available business and economic development programs we will assist them as they

expand their markets and ultimately expand their workforce.

Our

$14.4 million investment in economic and business programs will also support

communities and other groups as they identify projects that can serve as a

catalyst for new business activity.

Mr.

Speaker, our government is proud of our culture and our rich tourism products.

We must continue to identify product opportunities where we can leverage this

uniqueness.

This

year, we are contributing more than $20 million to support culture and heritage

initiatives.

SOME HON. MEMBERS:

Hear, hear!

MS. C. BENNETT:

In addition to this funding,

we are also allocating $13 million to continue to market our tourism destination

and we are increasing the Newfoundland and Labrador Film Development

Corporation's Equity Investment Program by $2 million.

As a

government, we believe that there is an untapped potential in our province's

more traditional, rural-based industries. We see these industries as holding the

potential for job creation and new economic activity.

particular, our fishery has sustained our communities and economy for

generations. Through investments we can support younger people and existing fish

harvesters to capitalize new opportunities in an old industry.

Through

Budget 2017, approximately $5 million is available for investment in the wild

fishery and aquaculture industries. This funding will leverage significant

investment from the private sector and the Federal Government.

Some

examples include funding for the Aquaculture Capital Equity Investment Fund and

the Seafood Innovation Transition Program, which supports technology and

innovation in harvesting, processing, aquaculture, and marketing.

As we

prepare for the revitalization of the cod fishery, our Fisheries Advisory

Council, with an investment of $100,000, will provide industry stakeholders with

the opportunities to present advice on important issues.

Mr.

Speaker, in February our government announced that we would be making more Crown

land available for agriculture development. This is an example of how our

government is creating an environment for entrepreneurs to excel while improving

our province's ability to be more food self-sufficient.

assist these efforts, we are increasing the available land for agriculture;

effectively doubling the land mass available for this industry. By giving the

land back to Newfoundlanders and Labradorians we are making significant

investments in our future.

recognize that our role in growing this industry and are committing $3.9 million

to continue the five-year, $37 million Growing Forward 2 initiative, which is a

cost-shared project with the Federal Government.

Budget

2017 is committing $3.25 million to the Provincial Agrifoods Assistance Program

so that we can continue developing agriculture land, growing the industry, and

improving our food self- sufficiency. We are also committing $1 million to

continued research in crops, such as canola, that may now be able to be grown

successfully in our province. Finally, we are committing $500,000 to continue

development of our provincial cranberry industry.

Mr.

Speaker, now is not only the time for investments off our coast, but it is also

the time for investments on, and under, the land. Mining and resource extraction

is a significant contributor to the economy of this province, employing some

7,000 people. As an example, Tata Steel has built a $1 billion iron ore

processing facility on the Labrador Trough. While the sector is currently

experiencing a general reduction in global commodity prices, the cyclical nature

of the industry holds promise that when prices will again rise, and it is the

job of government to help industry prepare for that growth when that happens.

It is

generally the best informed companies that succeed in the global mining

industry, and a comprehensive geological survey is providing Newfoundland and

Labrador with a competitive edge to attract investment. That is why we are proud

to continue our commitment to close to $5 million in the Geological Survey which

maps our diverse geology and provides sophisticated geoscience. By expanding on

the database of available geological information, we can attract global

investments to our shores. In addition, we are investing $1.7 million for the

Mineral Incentive Program including an additional $200,000 for the Junior

Exploration Assistance Program over the next two years to encourage mineral

exploration and support the mining industry.

We can

also foster additional investments by acting as a funding partner for new

developments which is why we are committing $8 million to an Investment

Attraction Fund, designed to encourage and support foreign direct investment in

Newfoundland and Labrador.

Conclusion

Mr.

Speaker, our path is certain. With The Way Forward providing us with the guiding

principles of developing a smarter approach to governance and management, we are

methodically and responsibly redesigning government to address the economic,

social, and fiscal challenges that we face.

Our

focus will always be on positioning our province to be an ideal place to raise a

family, with a competitive work and business environment. In order to return to

fiscal balance we must think and act in a way that is long term. We can no

longer afford to be bound by short-term reactionary thinking.

This

budget reflects our commitment to a stronger economic foundation, a more

efficient public sector, better services and better outcomes.

Mr.

Speaker, we would like to thank all those that provided input into this budget.

The many submissions we received have helped shape our decisions. I would also

like to acknowledge the tremendous amount of work that is done by public service

employees, especially in the days leading up to the budget. Their expertise and

professionalism in our departments is evident to us and we place great value in

the work that you do.

Mr.

Speaker, we still have a ways to go, but our government is confident that we are

on the right path.

Thank

you.

SOME HON. MEMBERS:

Hear, hear!

MR. SPEAKER:

The hon. the Minister of

Finance and President of Treasury Board.

MS. C. BENNETT:

Mr. Speaker, I move, seconded

by the Premier, that the debate be adjourned.

MR. SPEAKER:

The motion is that debate be

adjourned.

All

those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

MR. SPEAKER:

All those against, 'nay.'

Carried.

motion, budget debate adjourned.

MS. C. BENNETT:

Mr. Speaker, I wish to inform

the House that I have received a Message from His Honour the Lieutenant

Governor.

MR. SPEAKER:

All rise.

The

following message has been addressed to the hon. the Minister of Finance and

President of Treasury Board:

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

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

ending 31 March 2018, in the aggregate of $7,327,757,400, and in accordance with

the provisions of sections 54 and 90 of the Constitution Act, 1867, I recommend

these Estimates to the House of Assembly.

Sgd.:_________________________________

Lieutenant Governor

Please

be seated.

The hon.

the Minister of Finance and President of Treasury Board.

MS. C. BENNETT:

Thank you, Mr. Speaker.

Mr.

Speaker, I move, seconded by the Premier, that the message, together with the

Estimates, be referred to the Committee of Supply.

MR. SPEAKER:

It is moved and seconded that

the message from His Honour the Lieutenant Governor, together with the

Estimates, be referred to a Committee of Supply.

Is it

the pleasure of the House to adopt the motion?

All

those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

MR. SPEAKER:

All those against, 'nay.'

Carried.

motion, that the House resolve itself into a Committee of the Whole Supply, Mr.

Speaker left the Chair.

Committee of the

Whole

CHAIR (Dempster):

Order, please!

We will

now take a few moments to distribute the budgetary documents to all hon.

Members.

(Budgetary documents are distributed.)

CHAIR:

Order please!

The hon.

the Government House Leader.

MR. A. PARSONS:

Thank you, Madam Chair.

I move

that the Committee rise, report progress and ask leave to sit again.

CHAIR:

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

again.

All

those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

CHAIR :

All those against, 'nay.'

Carried.

motion, that the Committee rise, report progress and ask leave to sit again, Mr.

Speaker returned to the Chair.

MR. SPEAKER (Osborne):

The hon. the Deputy

Speaker.

MS. DEMPSTER:

Mr. Speaker, the Committee of

Supply have considered the matters to them referred and have directed me to

report progress and ask leave to sit again.

MR. SPEAKER:

The Chair of the Committee of

Supply reports the Committee have considered the matters to them referred and

have directed her to report that they have made some progress and ask leave to

sit again.

When

shall the report be received?

MR. A. PARSONS:

Now.

MR. SPEAKER:

Now.

When

shall the Committee have leave to sit again?

MR. A. PARSONS:

Tomorrow.

MR. SPEAKER:

Tomorrow.

motion, report received and adopted. Committee ordered to sit again on tomorrow.

MR. SPEAKER:

Notices of Motion.

Notices of Motion

MR. SPEAKER:

The hon. the Minister of

Finance and President of Treasury Board.

MS. C. BENNETT:

Thank you, Mr. Speaker.

Mr.

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

Act To Amend The Revenue Administration Act.

MR. SPEAKER:

Further notices of motion?

The hon.

the Government House Leader.

MR. A. PARSONS:

Mr. Speaker, I give notice,

by leave, move that the composition of the Committees for Estimates will be: the

Resource Committee will consist of Members for the following Districts: Baie

Verte Green Bay, Cape St. Francis, Conception Bay East Bell Island,

Exploits, Fogo Island Cape Freels, Harbour Grace Port de Grave, St. John's

East Quidi Vidi, and Stephenville Port au Port.

The

Government Services Committee will consist of the Members for the following

Districts: Torngat Mountains, Bonavista, Burin Grand Bank, Ferryland, Harbour

Main, Mount Pearl North, St. John's East Quidi Vidi, and Stephenville Port

au Port.

The

Social Services Committee will consist of Members for the following Districts:

Cartwright L'Anse au Clair, Baie Verte Green Bay, Burin Grand Bank,

Fortune Bay Cape La Hune, Harbour Main, St. George's Humber, St. John's

Centre, and Topsail Paradise.

Mr.

Speaker, I further give notice and by leave move, number one, the following

Estimates will be referred to the Government Services Committee: the Department

of Finance, Consolidated Fund Services, and the Office of the Chief Information

Officer; the Public Service Commission, the Human Resources Secretariat, and the

Women's Policy Office; Service NL; Government Purchasing; and the Office of

Climate Change; and the Department of Transportation and Works.

That the

following Estimates be referred to the Resource Committee: the Department of

Advanced Education, Skills and Labour; the Department of Fisheries and Land

Resources; the Department of Tourism, Culture, Industry and Innovation; and the

Department of Natural Resources.

That the

following Estimates be referred to the Social Services Committee: the Department

of Children, Seniors and Social Development, and the Newfoundland and Labrador

Housing Corporation; the Department of Education and Early Childhood

Development; the Department of Health and Community Services; the Department of

Justice and Public Safety; and the Department of Municipal Affairs and

Environment.

Mr.

Speaker, I also wish to advise Members that on Monday, April 10, 2017, at 9 a.m.

the Government Services Committee will meet in the Chamber to review the

Estimates for the Public Service Commission, along with the Human Resources

Secretariat, and the Women's Policy Office of the Executive Council.

further advise Members that on Monday, April 10, 2017, at 6 p.m. the Resource

Committee will meet in the Chamber to review the Estimates for Fisheries and

Land Resources.

MR. SPEAKER:

Is it the pleasure of the

House to adopt the motion?

All

those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

MR. SPEAKER:

All those against, 'nay.'

Carried.

The hon.

the Government House Leader.

MR. A. PARSONS:

Mr. Speaker, I move, seconded

by the Premier, that the remaining Orders of the Day do stand deferred and that

this House on its rising do adjourn.

MR. SPEAKER:

The motion is that this House

do now adjourn.

Is it

the pleasure of the House to adopt the motion?

All

those in favour, 'aye.'

SOME HON. MEMBERS:

Aye.

MR. SPEAKER:

All those against, 'nay.'

Carried.

This

House stands adjourned until tomorrow at 1:30 in the afternoon.

motion, the House at its rising adjourned until tomorrow, Monday, at 1:30 p.m.