April 26, 2007 HOUSE OF ASSEMBLY

PROCEEDINGS Vol. XLV No. 3

The House met at 2:00 p.m.

MR. SPEAKER (Hodder): Order, please!

Motion: That this House approves in general the budgetary policies of the

government

MR. SPEAKER: The hon. the Minister of Finance

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Thank you, Mr. Speaker.

INTRODUCTION

Vision. Action.

Our government was elected at a time of great challenge to implement a bold

new approach to economic development. With an eight-year blueprint to guide us,

we embarked on a journey towards self-reliance. We worked hard to spend public

money more effectively and we worked even harder to generate new wealth through

economic development to secure strong social programs promoting our people's

health, safety and self-reliance. These were the two prongs of our approach.

Nearly four years later, our successes demonstrate that ours is an approach that

works.

Now, more than ever before, we are in a position of strength to seize control

of our circumstances and become masters of our own house.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: We know that, to effectively control our destiny, we

must achieve a greater degree of financial autonomy. We are doing this by

focusing on five key fundamentals for economic growth. Investing in a healthy

business climate. Investing in infrastructure. Investing in developing our

resources. Investing in developing new strengths through innovation. And

investing in our people by giving them the skills to seize the opportunities

ahead. That is how we are turning our vision into action and, through action,

producing results.

We should not be afraid to take a strong stand. We have the resources, we

have the people, the ingenuity and the opportunity to build the kind of future

of which we have always dreamed.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: And now we also have the confidence. We will move

forward independently to strengthen Newfoundland and Labrador's financial

autonomy and fiscal capacity to meet our own obligations by diversifying and

growing our own economy, reducing Newfoundland and Labrador's burden of debt

on our children, pursuing a fair fiscal balance between levels of government,

and reducing our dependence on equalization payments. We as a people will enter

into agreements only when they are in our own best interests.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: We will set our own course. We will define our own

future. Our time has arrived and we will seize the day boldly, with confidence,

conviction and a solid commitment to co-operate amongst ourselves in the spirit

of harmony to usher in a new day of promise and prosperity for Newfoundland and

Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL:

FISCAL FRAMEWORK

Review of 2006-2007

Mr. Speaker, last year, for the first time in our history, our Province

achieved a surplus on a fully consolidated basis while budgeting another. The

projected surplus of $6.2 million for 2006-2007 was, at midyear, expected to

become a deficit, but at year end I am pleased to report an estimated surplus

for 2006-2007 of $76 million.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Ours is the only Administration since Confederation to

table back-to-back surpluses on a fully consolidated basis. Achieving this

surplus took careful fiscal management. Revenues for the year were down overall,

primarily because of a longer than expected shutdown in production at Terra

Nova, and were only partially offset by a rise in oil prices and other revenue

gains. In response to the Terra Nova shutdown, our government took a conscious

decision to keep expenditures in check. As a result, we improved our fiscal

position by $69.8 million.

The most significant fiscal challenge facing Newfoundland and Labrador is the

burden of debt that we inherited, the highest per capita net debt in Canada,

more than double the national average. High debt loads mean high interest

payments, whether for a family or for a government. Reducing debt frees up money

to spend on programs and other priorities. In 2006-2007, our government was able

to reduce the provincial net debt by $70 million.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Through sound fiscal management, we reduced our net debt

as a percentage of Gross Domestic Product from 54.4 per cent in 2005-2006 to

just 50 per cent in 2006-2007. Most significantly, we were able to reduce our

debt expenses as a percentage of revenue from 17.1 per cent in 2005-2006 to just

14.2 per cent in 2006-2007, which in turn frees up additional money for new

programs in debt reduction. We have moved responsibly to address unfunded public

pension plan liabilities to further strengthen our Province's fiscal position.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Mr. Speaker, I am pleased to report that, for only the

second time in our Province's history, we are budgeting a surplus on a fully

consolidated basis. We will be the first Administration since Confederation to

record three consecutive fully consolidated surpluses. We project that our

surplus at the end of this year will be $261.2 million -

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: - driven in part by resource sector gains. Any surplus

will go towards financing infrastructure investments and reducing debt.

Equalization and Atlantic Accord amounts for the 2007-2008 fiscal year are

fixed. Total income from the 1985 and the 2005 Accords will rise by

approximately 50 per cent to $494.3 million. Without the 2005 Atlantic Accord

negotiated by our Premier, we would be receiving $305.7 million less than we are

getting this year.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Our Equalization payments this year will drop by nearly

a third to $477.4 million.

The recent federal budget has given the Province a choice: we can stay with

the current, inadequate, equalization program, which does not provide access to

new equalization benefits that other provinces enjoy, or we can choose a new

program which contains a cap on entitlements and a cap on the determination of

whether we are eligible for the 2005 Accord. The choice the Province eventually

makes will depend on a financial assessment of those choices at the appropriate

time. Neither of these choices fulfills the commitment made to the people of

Newfoundland and Labrador to remove non-renewable resource revenues from the

equalization formula.

As our revenue position strengthens, we remain committed to responsible

fiscal management to ensure that we strengthen rather than erode the gains we

are making and become increasingly more self-reliant. In keeping with this

vision, we will increase program expenses this year over what we budgeted last

year by a responsible 5.6 per cent.

We will also continue to reduce the Province's net debt this year by

another $66 million. Our debt servicing costs will be reduced by $51 million,

freeing up money that would otherwise be siphoned off in interest payments. Our

net debt as a percentage of GDP will fall from 50.0 per cent last year to 44.9

per cent this year, and our debt expenses as a percentage of revenue will fall

from 14.2 per cent last year to just 11.8 per cent this year.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Our plan is to continue this responsible approach in the

years that follow to ensure we are increasingly strong, less reliant on the

whims of others and more reliant on ourselves.

BUDGET PLAN FOR 2007-08

Revenue Plan

Mr. Speaker, despite setbacks last year for the Terra Nova Project, our

offshore oil industry continues to grow and mature. Forecasting revenues from

the offshore continues to be a challenge, as we have no control over oil prices,

production levels and exchange rates, the major factors used to estimate

royalties and taxes. Oil prices for the next fiscal year are expected to remain

robust. Production from our three offshore projects is expected to increase over

last year's levels. Additionally, we expect the White Rose Project to achieve

payout, thereby increasing the Province's share of the revenues from this

project. We are forecasting that total direct revenues from offshore projects

will be over one and one-quarter billion dollars this fiscal year, including

over one billion dollars in royalties.

Mineral prices are also expected to remain strong. This year, we are

projecting mining tax and royalties from our mineral operations to exceed $200

million, more than double last year's revenues.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: We must remain cognizant of the fact that our financial

position can be influenced significantly by changes in resource prices. Our

estimates were determined based on advice provided by independent authorities,

but these estimates could, in fact, fluctuate significantly.

ACTION TO PROMOTE ECONOMIC GROWTH

Mr. Speaker, over the past three years, an estimated 3,400 person-years of

employment have been created in Newfoundland and Labrador. We are ready to do

more.

INVESTING IN A HEALTHY BUSINESS CLIMATE

Since 2003, we have implemented a full suite of initiatives to promote a

business-friendly investment climate in Newfoundland and Labrador. Progress is

being made. Our economy is growing. Nevertheless, one major deterrent to

investor and consumer confidence remains, and that is the relatively high level

of personal taxation. It is clear that cutting taxes creates economic growth. I

am delighted today to announce that, with the tax measures in this year's

Budget, our government is transforming Newfoundland and Labrador from the

Province with the highest personal income tax rates in Atlantic Canada to the

Province with the lowest personal income tax rates in Atlantic Canada.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Our offshore revenues will provide an opportunity to

leave more money in the pockets of the people who earned it. In a sense, it is a

dividend from our offshore resources, one that will help stimulate economic

growth, and result in increased employment and in higher incomes.

Never before in our history did we have the ability to address our high

personal tax levels in a meaningful way. This initiative will greatly enhance

our competitiveness and attractiveness and will spur consumer spending and

investment that will boost our businesses and expand our economy.

Effective July 1 of this year, Personal Income Tax rates will be reduced

significantly, with the third tax bracket dropping from 18.02 per cent to 16.5

per cent; the second tax bracket will drop from 16.16 per cent to 13.8 per cent;

and the first tax bracket dropping from 10.57 per cent to just 8.7 per cent.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Also effective July 1, we are eliminating the surtax on

the Personal Income Tax, which will further reduce taxes on middle and high

income earners.

Thirdly, effective July 1, and annually thereafter, we will be indexing the

Personal Income Tax system to inflation to ensure that taxpayers do not move

into higher tax brackets simply because of normal inflationary pressures that

raise their salaries. Indexation will ensure that various tax credits, brackets

and also the special benefits for low-income families maintain their true

economic value over time.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: As a fourth measure, we are heeding the advice of the

Province's business community and alleviating tax pressure on smaller

companies by increasing the small business threshold under the Corporate Income

Tax from $300,000 to $400,000, effective for 2007.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Finally, the Retail Sales Tax rate which is applicable

to the private sale of used motor vehicles will be reduced from 15 per cent to

14 per cent effective midnight tonight.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: These five tax initiatives represent an annualized

reinvestment in the Newfoundland and Labrador economy of over $154 million.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: By putting this money back into the hands of the

Province's consumers and investors, we are promoting economic activity which

will in turn generate not only new revenues but also new jobs and economic

growth.

Our government will also immediately commence discussions with the federal

government to harmonize the provincial Financial Corporations Capital Tax with

the federal

Part 6 tax base in order to lower compliance costs for taxpayers and

to do our part to provide a consistent policy across the country.

Even with today's reductions, our rates remain high relative to Canadian

standards, but the reductions are a major step in the right direction. These tax

reductions will assist in building a stronger, more diversified economy as we

prepare for the time when we no longer have the benefit of offshore oil. We are

committed to using our offshore resources, and whatever Atlantic Accord payments

that have not been stripped away from us, to reduce debt, to provide a fairer

tax burden, and to improve economic opportunity. These are all issues which are

consistent with the national interest, and consistent with the principles of the

Atlantic Accord.

Not only high taxes but also fees can serve as an impediment to growth. In

light of the Fees Review we commissioned in last year's Budget, we are

reducing or eliminating over 170 fees -

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: - an initiative that represents an annualized

reinvestment in our economy of another $3.4 million.

Our Red Tape Reduction Initiative has reduced regulatory requirements by 8

per cent.

To complement this streamlining of regulations, our Department of Government

Services will be improving customer service by taking full advantage of advances

in information technology and management. Fee reductions will encourage on-line

use of electronically delivered services at the Registry of Companies and Deeds

and the Motor Vehicle Registration Division. Through electronic service delivery

the department will also be expanding ease of access Province wide to

information and government programs. Budget 2007 also provides approximately

$1.2 million in additional funds to improve service delivery in key areas of

public health and safety administered by the Department of Government Services.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: These include technical positions for environmental

health, environmental protection, boilers and pressure vessels, elevating

devices and amusement rides, electrical programs and highway enforcement.

To better enable the Province to compete for national and international

business opportunities, we are creating a $25 million Business Attraction Fund

within the Department of Business.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: This fund will provide loans and equity to global

investors that establish their business operations in Newfoundland and Labrador.

We will complement this investment with a $7 million non-repayable fund to

address challenges faced by investors establishing in our Province.

Newfoundland and Labrador has been a global trading state for centuries, but

the key to truly maximizing the benefits from trade in the years to come is a

careful strategic plan. This year, under our Export Development Strategy, we are

providing an additional $500,000 to finance critical initiatives to make local

exporters more successful in securing the markets they need to grow their

enterprises. These initiatives will include access to market intelligence;

export readiness assessment and training services; a new pilot program for

government to work with larger firms who have existing market penetration to

help them grow that market or expand the diversity of products they are selling

into that market; market access supports to assist clients on overseas trade

missions; and export promotion assistance to sell our strengths in international

markets.

Some of our ongoing initiatives have been extremely effective in helping home

enterprises expand and succeed. To build on these successes, we are investing $8

million in our Small and Medium Enterprise Fund.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: We are also absolutely delighted with the uptake from

our Regional Sectoral Diversification Fund which, since 2005, has invested some

$9.1 million in 174 rural and regional development projects worth more than $42

million.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Budget 2007 provides $5 million plus $2.78 million in

carry-overs to allow us to continue to invest in success in rural Newfoundland

and Labrador. Since November 2003, our government's business investments have

helped companies across the Province create employment for over 1,900 people.

Newfoundland and Labrador appreciates the benefits that flow to us when all

our businesses succeed, and that is why we are cultivating a business climate

where enterprises can operate competitively, industries can reach new plateaus

of success, innovators can harness the power of their imagination, and

entrepreneurs can realize their dreams.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL:

INVESTING IN INFRASTRUCTURE

Mr. Speaker, the need to invest revenue in infrastructure to promote

sustainable growth is one of the principal reasons we are fighting so hard to

achieve what we were promised under the Equalization Program. We will proceed

this year by strengthening investments in highway, marine and air transportation

infrastructure, public buildings, municipal capital works and the like. Our

investment this year will total some $440 million -

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: - and that spending will generate an estimated 5,700

person-years of employment. This spending is part of a six-year infrastructure

strategy we announced in 2006.

A particular focus of our government this year, is Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Under our recently released Northern Strategic Plan for

Labrador, we are making unprecedented investments in a host of initiatives

benefitting all corners and all communities in the Big Land. A major component

of this plan is the Labrador Transportation Strategy, in anticipation of which

we are making a major commitment this year of $17 million for construction of

Phase III of the Trans-Labrador Highway.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Last year, we also made a commitment to apply a sealed

surface on Phase I of the highway and budgeted $15 million, to be cost-shared

million share and challenging the federal government to match it. Let me make it

clear, that our government will proceed with hard-surfacing this year with or

without a federal contribution.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: To implement the Northern Strategic Plan over the next

five years, we will invest $55 million for new initiatives bringing our total

investment in new and existing initiatives to support the plans's goals to

over $250 million. Among the major investments proceeding this year is an energy

rebate to address one of the most pressing issues for rural isolated communities

in Labrador. The rebate, at an annual investment of $1.6 million, will reduce

the cost of basic electricity consumption needs of Labrador rural isolated

residential customers to a level on par with the Labrador Interconnected Rates.

Customers in the Labrador Straits area will receive a similar rebate to achieve

the same goal.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Mr. Speaker, last, year, our government invested $60

million in road work initiatives, and this year, we will increase our investment

in the Provincial Roads Improvement Program to $66.5 million.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Early announcements are enabling tendering and

construction work to proceed sooner. In addition, we will increase the summer

road maintenance program by $2.5 million to approximately $17.5 million,

bringing our total investment in summer and winter maintenance to $48.6 million.

We will allocate $10 million to start the Torbay Bypass -

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: - and extend the Team Gushue Highway, subject to

cost-sharing with respective governments. Having already achieved a significant

expansion of the National Highway System in this Province, we will invest $15.5

million as our share of funding to upgrade our Trans-Canada Highway portion of

the national system. This year, with the initiatives just mentioned and more

besides, we are increasing our total investment in provincial roads to more than

$160 million.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: This roads program will generate an estimated 2,100

person-years of employment, and a substantial amount of that investment will be

spent in rural Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: To ensure we properly protect the road work we are

commissioning, we will strengthen our enforcement of weight restrictions for

commercial vehicles by increasing highway monitoring both in Labrador and on the

Island and investing over $1 million to install Weigh-In-Motion technology to

supplement the work of our provincial weigh scales operations.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: We will also make use of cutting-edge technology by

purchasing an Automated Road Analyzer, a device that pinpoints road

deterioration so we can catch problems before they worsen and target our repair

monies strategically.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Many of our rural communities rely on marine

transportation services. We are investing in their future by upgrading our

intraprovincial ferry system. We will invest an additional $1.3 million for a

total of $10.3 million to refit government-owned ferry vessels. We will invest

$5 million for maintenance and construction of terminals and wharves. And, we

will invest another $15 million under our Vessel Replacement Strategy so

construction can commence on two new ferry vessels for which design work is

nearly complete. We have also reduced rates on intraprovincial ferry routes.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Economic opportunities are advanced by the improvements

we make to infrastructure at the municipal level. In recent years, fourteen of

our larger towns and cities have seen their Municipal Operating Grants lowered

in phases by $3.6 million under a planned $5 million reduction. With the

improvement in our fiscal situation, we are now canceling the third phase of

this reduction, enabling those fourteen municipalities to invest the retained

$1.4 million in their respective municipal priorities.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Municipalities are increasingly looking to their

neighbours to find new ways of addressing common challenges through cooperation.

While some have found ways to regionalize or share common services for the

benefit of their residents, others have come to recognize they can provide more

efficient and effective services to the residents as merged municipal entities.

While we are not prepared to force any municipality in this direction, neither

do we believe in placing needless barriers in their way. So we are investing $2

million this year to help equalize the debt of towns that seek to work

cooperatively at the municipal level.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL:

INVESTING IN RESOURCE DEVELOPMENT

Mr. Speaker, numerous rural Newfoundland and Labrador communities are

perfectly positioned to harness natural resources in ways that promote economic

diversification and economic growth. Most of our natural resources - fish,

forests, agricultural lands, pristine ecosystems, tourism sites, minerals, hydro

sites and onshore oil - are located primarily in rural or remote areas. Every

strategy to capitalize more effectively on these resources is, by its nature, a

rural renewal strategy.

Rural renewal is the product of a special kind of tenacity that simply

refuses to give up when the challenges are tough. More than a decade after the

closure of the ground fishery, our government refused to give up on the hope of

a bright future for our fishing industry and decided instead to meet the

challenge head on. Our significant investments in aquaculture over the past two

years have paid off on our Province's South Coast with the announcement of a

major aquaculture initiative with significant employment and spin-off benefits

for this rural region. This year, we are continuing to advance our aquaculture

sector by investing $12.5 million as part of our three-year Aquaculture Capital

Investment Program.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: This initiative is complemented by another $1.9 million

to help provide wastewater treatment systems in support of fish health

protocols, and a further $1.2 million toward the establishment of an aquaculture

research facility at St. Alban's -

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: - an area, a town, where an innovative approach to the

fishing industry has breathed new life into this community. Also, in last year's

Budget, we announced an investment of $2.0 million over four years in support of

commercialization of cod farming. A review of the factors necessary for

commercialization of cod aquaculture has been now completed, and a request for

proposals for a commercial-scale cod aquaculture demonstration farm has been

issued. This year's Budget contains $500,000 to continue this initiative.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Last year, we projected the creation of 150 full-time

equivalent jobs for the aquaculture industry in the next two years, but less

than one year later, we have witnessed the creation of 200 direct full-time

equivalent jobs in this Province and approximately 100 indirect jobs. We have

only just begun to harness the potential of aquaculture to create employment and

business opportunities in rural coves and inlets throughout rural Newfoundland

and Labrador, and our strong financial investment in aquaculture this year will

be instrumental in making Newfoundland and Labrador a leader in rural renewal

through aquaculture growth.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Our fishing industry continues to offer tremendous

promise, but progress depends on our willingness to work together to address

challenges that remain. Everyone seems to agree that changes are needed; but a

major impediment to change has been the division of responsibilities for

fisheries between the provincial and federal governments. This year, in

consultation with the industry, our two levels of government have developed a

Fisheries Renewal Strategy to reinvigorate the sector. We are bringing our total

renewal undertaking to an estimated $140 million to address the challenges in

the industry.

Among our Province's most successful and promising rural sectors is our

agricultural industry. With targeted investments over the past three years, we

have increased the rate of growth in agrifoods production value from 1 per cent

to 5 per cent. This year, we will promote continuing growth and diversification

in this sector by investing $2.8 million from last year, with an additional $4

million new dollars for a total investment of $6.8 million in the Agriculture

and Agrifoods Development Fund, devoting $2 million to continue the provincial

Agrifoods Assistance Program, and continuing funding for the Fruit and Vegetable

Storage Program and the initiative to provide off-farm access roads and

electrical services.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: A key consideration in renewable resource industries is

sustainability. The ground fishery taught us hard lessons about the relationship

between sustainability and long-term economic security - lessons we can apply to

other sectors. Last year, we announced a $1 million increase in each of the next

three years for silviculture initiatives to replenish our forest resources, and

a $1 million increase in forest insect control and fire suppression funding. We

also provided $800,000 in new funding last year and are providing an additional

$865,000 this year to expand the Province's forest inventory. Our new

Sustainable Development Act will apply sustainable development principles to all

sectors to ensure that we take proper care of the resources and the ecosystems

that sustain us. We will invest in protecting sensitive ecosystems against

pollution damage by funding an oil spill prevention initiative. We will invest

$10.1 million over three years to address the immediate safety and environmental

issues at the former Baie Verte and Rambler mines sites.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: To better protect our wildlife, we will expand funding

to study our island caribou herds, commence a study of caribou predation and

invest more than $900,000 to leverage funding to engage in other cooperative

wildlife research. We will also add five new positions to bolster the successful

Inland Fisheries Enforcement Program that we initiated in 2004 when the

enforcement on inland waterways.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Our natural areas are sources of economic wealth if we

capitalize on their capacity to generate eco-friendly tourism, which is in

reality only a fancy term for describing an activity that has been traditional

in Newfoundland and Labrador for generations. Through our provincial parks

system, we have been able to preserve our natural ecosystems, while at the same

time enjoying the high-quality recreational experiences they have to offer. We

are increasing our investment in the provincial parks system by $1 million to

expand the parks renewal strategy from a three-year commitment to a four-year $4

million initiative. Additional funding will mean service improvements to make

our parks even more attractive, encourage increased usage, and allow us to

provide the range of services and amenities demanded by the modern traveler.

These initiatives will be particularly important in bringing tourism-related

economic and employment opportunities to our rural areas where most parks are

situated.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Mr. Speaker, recognizing the great potential that

tourism offers to rural communities, this year, we are investing an additional

$1 million for tourism marketing initiatives. Starting in 2004, this government

has nearly doubled the tourism marketing budget from $6 million to $11 million.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: If there is one thing besides our beautiful scenery that

attracts tourists to our shores, it is our distinctive culture. Having launched

Newfoundland and Labrador's first Strategic Cultural Plan last year, we are

ready this year to build on those initiatives by bringing the budget of the

Newfoundland and Labrador Arts Council up to $1.65 million -

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: - including a Cultural Outreach Officer in Labrador. We

are also maintaining funding for the Newfoundland and Labrador Film Development

Corporation's Film Equity Program at $2 million. To protect and commemorate

our rich heritage, we are increasing funding to operate community museums and

preserve our built heritage. And we are beginning to invest to prepare for the

anniversary of the founding of Cupids by John Guy in 1610, nearly 400 years ago.

All of these initiatives are examples of endeavours supported by our

government to turn resource opportunities into growth opportunities.

Newfoundland and Labrador will achieve actual and sustainable self-reliance only

if we do a much better job of putting our resource wealth to work for the

principal benefits of our own people and communities.

Our government is concluding work on Newfoundland and Labrador's first

comprehensive Energy Plan; block funding of $12 million is being committed this

fiscal year to begin implementation of the initiatives contained in the plan -

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: - and additional funding will be allocated in future

budgets to support the continued roll out of that plan.

As work proceeds in the mining sector, Mr. Speaker, in Western and Northern

Labrador and at sites on the Island, we are working to promote further growth in

this industry and ensure our Province reaps the benefits of these non-renewable

resource initiatives. Last year, we invested a record $2.5 million in the

Mineral Incentive Program, 55 per cent more than in the year before. Every

dollar spent under the junior exploration assistance component of the program

leverages $3 in private sector investment for grassroots exploration. We

estimate that mineral exploration companies spent $98 million on exploration in

the Province last year, 100 per cent more than in the previous year, with

expenditures forecast to reach $116 million in 2007. We are sustaining our

record investment in the Mineral Incentive Program, which is playing a key role

in sustaining that momentum. We will also invest $1 million to foster

exploration of our mineral and onshore petroleum resources by improving the

collection of geoscience data.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL:

INVESTING IN INNOVATION

Mr. Speaker, in many of our natural resource sectors, we clearly see the

capacity of scientific research and technology applications to advance economic

development opportunities. But research and technology can also generate

economic opportunity in other sectors, sometimes in completely unexpected ways.

Innovators harness the capacity of the human imagination to invent new ways of

manipulating the world around us to advance health care, communications,

environmental protection and so forth. While these scientific pursuits have

intrinsic value, they can also have tremendous economic value, as

Newfoundlanders and Labradorians are proving in outstanding ways. This past

year, we launched our Province's first Innovation Strategy to promote

ingenuity and commercialize the products of research for economic gain. Two

Innovation Strategy programs have proven to be successful in capturing the

benefits of innovative work. The launch of the Innovation Enhancement Program

and the Commercialization Program in August of 2006 fulfilled a commitment of

the government's Innovation Strategy, but more importantly a long standing gap

in programming, both for the business community and for regional innovation

efforts. The Commercialization Program helps bridge the difficult gap faced by

new start-ups and smaller companies in moving from promising new technologies to

true commercial activity. Interest in the Commercialization Fund has been

strong. Nine approvals have been completed for a total investment of $2.3

million. The Innovation Enhancement Program is supporting public sector

institutions, not for profit groups, community organization and industry

associations involved in activities that are enhancing the innovative capacity

of the Province. Five projects valued at $538,000 have been approved to date,

and proposals with a total value of almost three times that amount are now being

evaluated for approval. This year, we will continue to support these important

economic development initiatives.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Research and development expenditures in Newfoundland

and Labrador are the lowest in Canada. We will never become masters of our own

destiny by allowing others to determine the extent to which we can move forward.

Over the next couple of years, our government will significantly increase

expenditures on research and development. To accomplish this, with an initial

investment of $300,000, we will launch a Newfoundland and Labrador Research and

Development Strategy, an unprecedented collaborative effort that will draw on

the research strengths of the College of the North Atlantic and the Grenfell and

St. John's Campuses of Memorial University and marry them with the

market-oriented goals of the Innovation Strategy. R&D is one of the most

important vehicles that we as Newfoundlanders and Labradorians can use to

harness our strengths and ingenuity effectively to become masters of our own

house. As part of this new R&D Strategy, our government will establish a new

Crown entity, headed up by the new position of Chief Science Advisor, to oversee

and direct R&D initiatives across multiple sectors throughout Newfoundland

and Labrador in concert with our post-secondary institutions.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Complementing this venture will be a new Premier's

Advisory Committee on Science and Research comprising professionals with

recognized expertise in basic research, applied research, education, business,

venture capital and the like. This coordinated effort will achieve three

far-reaching goals: first, to ensure public policy on environmental and economic

issues is firmly evidence-based; second, to foster commercialization and

competitiveness through the incubation of new technologies; and third, to

position Newfoundland and Labrador's academic institutions, enterprises and

government as global leaders in sustainable development through science and

innovation. Facilitating the work of this Crown corporation will be a key

priority of our government. If providing additional resources can significantly

accelerate our progress in achieving R&D leadership, then our government is

prepared to make those investments to ensure we will be ready sooner to lead on

this front. In recognition of the research strengths of the College of the North

Atlantic and the Grenfell and St. John's Campuses of Memorial University, we

will nurture in our Province an entrepreneurial drive that draws upon the

inventiveness and ingenuity of our brightest and our best.

One of the most exciting research and development initiatives of our

government is the Newfoundland and Labrador Centre of Excellence for

Environmental Science, Research and Technology, which is based in Corner Brook.

With a particular focus on sustainable natural resources, applied research and

commercialization activities, the Centre of Excellence will bring together

innovators who are ready to position Newfoundland and Labrador as an

international leader in climate-friendly green technology. Work on this

initiative will proceed this year with an investment of $1.25 million.

SOME HON. MEMBERS: Order, please!

MR. T. MARSHALL: The CEE will be a cluster of both existing and potential

new program activities related to disciplines such as sustainable forestry,

freshwater ecology and other elements of the environmental sector. For the

upcoming budget year, $795,000 will be allocated to the Sir Wilfred Grenfell

Campus of Memorial University to begin a graduate science program, establish a

policy centre, and provide support for a sustainable forestry cluster as well as

project administration.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Additionally, the College of the North Atlantic campus

at Corner Brook will receive $455,000 to offer a new geomatics advanced diploma

program and support its existing geospatial research facility.

Mr. Speaker, the Institute for Biodiversity and Ecosystem Science, or IBES,

lends research support to the Centre of Excellence and plays a vital role in

ensuring government research priorities for ecosystem conservation and

sustainable use are addressed by the academic community. To that end, this year's

budget provides $737,000 to enable IBES to play a greater role in focusing

international research capacity on issues of importance to Newfoundland and

Labrador, and by promoting our Province as a natural laboratory.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Mr. Speaker, the ocean that washes up along our

thousands of kilometres of coastline has long been considered a sea of

opportunity, but as science and technology progress, we are beginning to

recognize new advantages that offer economic opportunity. With that in mind, we

undertook to develop an Ocean Technology Sector Strategy to position

Newfoundland and Labrador as a national and international centre of excellence

in ocean technology by building ocean related strengthens and activities in the

competitive niche products, services and expertise. Recognizing the significant

gap in ocean observing capacity at the principal North American gateway between

Labrador and Maine, the Premier engaged with his United States counterparts to

develop a Northwest Atlantic Ocean Observing System in order to create growth

opportunities for local ocean technology companies engaged in maritime

surveillance, remote sensing, radar systems and other communications

technologies. The Premier also signed a Memorandum of Understanding in March

formalizing the relationship between Newfoundland and Labrador and Ireland in

the area of ocean technology. With these new initiatives, we sit at the apex of

an ocean technology triangle with vital new linkages in both the United States

and Europe.

To further capitalize on opportunities to demonstrate leadership in ocean

science and technology, we are providing $1 million to establish at the Marine

Institute of Memorial University a new School of Ocean Technology.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: The school will draw together experts in ocean

technology, enable these experts to share research and incubate new

technologies, provide an excellent training ground for students and greatly

enhance Newfoundland and Labrador's international reputation as a world leader

in ocean technology.

The Province's new focus on research and development blends well with key

initiatives promoting growth in several natural resource sectors. Our $283,800

investment in a comprehensive forest research program will promote sustainable

forest management. Our investment in geoscience data initiatives will promote

economic advances in our energy and mining sectors. We will also provide $1.85

million over three years to our offshore regulator towards an enhanced

information management system that will provide for more effective management of

the Province's oil and gas resources.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Our investment of a further $300,000 in a five-year

investigation of cod stock dynamics will promote stock rebuilding and

conservation. Our cod aquaculture demonstration project, our three-year fishing

industry R&D initiative, our caribou predation pilot study, our caribou

recovery strategy and our other wildlife initiatives will harness the power of

research in an effort to achieve tangible gains. Through our Environment and

Conservation department, we will administer the new Sustainable Development Act,

which will provide $600,000 this year to coordinate and implement a Sustainable

Development Round Table, and commence development of Strategic Environmental

Management Plans.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Through Research and Development, we will protect our

environment while at the same time generating new opportunities to reap the

benefits of demonstrating leadership in world-class, leading-edge economic

ventures.

INVESTING IN SKILLS

Mr. Speaker, we are promoting economic opportunities not only through

investments in our business climate, infrastructure, natural resources and

innovation, but also through our investment in the skills of our people so they

are equipped to seize the opportunities before them.

We are making significant investments to ensure that we have an educated,

highly-qualified, skilled workforce to meet the labour market demands associated

with increased economic activity from major projects, new construction and

investments in infrastructure. In this year's Budget, we are investing $3.9

million to enhance career and employment services; and among other things, this

will enable us to expand these services in rural areas through five new Career

Information Resource Centres; -

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: - implement employment and business development projects

in rural areas; expand the Graduate Retention Program to help an additional 100

graduates a year; and hire ten Career Information Officers to work with

teachers, guidance counselors and students in the K-12 system.

We are also taking steps to ensure that education, skills training and work

experience opportunities are increasingly accessible. Our government last year

commissioned a Skills Task Force which brought together business, labour,

government, education and other community leaders to identify the skill sets

that we are lacking, and to determine the best ways to ensure that our graduates

and our workers are ready to seize opportunities. The task force report will be

released shortly and action to implement its recommendations will begin

immediately.

While this work progresses and in support of its objectives, we are investing

$2.8 million in this year's Budget to improve the responsiveness of the skills

training and apprenticeship system in the Province.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: These measures will expand skilled trades and technology

offerings at the College of the North Atlantic, support national apprenticeship

standards, strengthen the participation of women, Aboriginal persons and youth

in the apprenticeship system, hire more apprentices in the public sector,

enhance our power engineering program, establish an Industrial Coordinating

Committee to identify industry skill set needs, help improve the recruitment of

women in the forestry sector, and establish scholarships to promote further

education.

At all ages, education is the key to unlocking doors to opportunity and

self-reliance. This year, for the first time in our Province's history, our

investment in education will exceed one billion dollars.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Since 2003, we have eliminated school fees, we have

established commissions to examine teacher allocations and the Individual

Support Services Plan/Pathways, and invested strongly in infrastructure,

equipment, busing and curriculum. Last year alone, our new investments in K-12

education surpassed $40 million. This year, we are raising our investment in the

K-12 system by a further $41 million.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: This investment will include $14.8 million for new

school construction, maintenance, repairs and innovations to ensure our children

benefit from proper, safe and healthy learning environments. With an investment

of $583,500, we will enhance computer technology support; and with an investment

of $1 million, we will finance improved software. Laboratory safety will be

enhanced with an investment of $1.65 million, and the public libraries that

support young people and their families in the communities will benefit from an

investment of $385,000.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Last year, we eliminated school fees. This year, with an

investment of $12.8 million, we will extend the provision of free textbooks in

core courses to include all students from Kindergarten to Grade 12.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: While this is a sustainable part of our Poverty

Reduction Strategy, this initiative will apply to all students, regardless of

their family income.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: At the post-secondary level, we are making an additional

$20.4 million investment in Memorial University.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Some $15.3 million of Memorial's total funding will

allow work to proceed on a new academic building for the university's Sir

Wilfred Grenfell Campus in Corner Brook and the construction of two new student

residences, one at Corner Brook and one at St. John's.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Among this funding, $400,000 will finance a new Safety

and Emergency Response Training Centre at the university, $500,000 will advance

distance education in which the university has long been a leader, $200,000 will

better support the international students we attract to our Province, and

$800,000 will enable the university to better promote itself nationally and

internationally in campaigning for new students, faculty, and research funding

as it works with our government to help Newfoundland and Labrador achieve

leadership in Research and Development. An investment of $1.3 million will also

enable the university to demonstrate environmental leadership by reducing

emissions.

Mr. Speaker, Sir Wilfred Grenfell College is a tremendous asset to the

Province's western region and has the potential to make an even greater

contribution to the economic and social growth of this Province. Based on the

information and the recommendation of a recent feasibility study into the

governance structure of Sir Grenfell College, our government will work with the

Memorial University Board of Regents to implement the recommendations of the

study, including granting the College full university status and separate

executive, senate and budget while maintaining a common Board of Regents.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: The College of the North Atlantic will benefit from an

additional investment of $8.3 million, which will enhance equipment and

facilities for key program areas, create new programming in the area of Early

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Mr. Speaker, we are proud that, since 2003, we have

maintained a tuition freeze for students at Memorial and the College of the

North Atlantic. Our tuition rates are the lowest in Canada for Canadian

students. In keeping with the policies we announced in our White Paper on Public

Post-Secondary Education, we are again this year extending the tuition freeze.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Even with this freeze, however, student continue to

amass a significant debt, and many graduates are deeply indebted just as they

are attempting to establish careers, homes and families. It is clearly in our

Province's best interests to help our students avoid falling deeply in debt

and assist our graduates to escape indebtedness so they can achieve a greater

measure of self-reliance. Our government has worked closely with students and

graduates to find out what initiatives they believe would be the most effective

in addressing the debt problem. Their advice made eminently good sense; we have

listened; and this year, we are delighted to announce the allocation of $14.4

million for a two-component Student Loan Debt Relief Program. Under one

component, beginning in the fall of this year, students will receive up-front

needs-based grants to offset their borrowing costs.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Some 8,000 students are expected to benefit under this

component . Under the second component, we will reduce the interest on

provincial student loan debts to prime making ours -

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Reducing interest on provincial student loan debts to

prime making ours the lowest rate on student loans in the country, a measure -

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: - that will benefit some 46,000 students and graduates

in repayment. We are excited about these initiatives because they represent real

investments in the young women and young men who are taking the initiative to

advance themselves and to develop the skills they need to make enormous

contributions to their Province.

ACTION TO PROMOTE SOCIAL JUSTICE

Mr. Speaker, as we work to promote economic growth in our society, we must

never lose sight of our primary obligation as citizens to look out for those

among us who are vulnerable. It is by our commitment to social justice that our

character is most truthfully measured. Our government has made major strides

since 2003 with initiatives that advance personal self-reliance, health and the

security of those who are vulnerable.

This year, we will raise the bar even higher through significant new

initiatives that advance the security, the health and the autonomy of our

people.

INVESTING IN PERSONAL SELF-RELIANCE

With an annualized investment of $2 million, we will increase the Low Income

Tax Reduction threshold from $12,000 to $13,000 for individuals and from $19,000

to $21,000 for families, effective January 1, 2007.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: With an annualized investment of $4.2 million, we will

increase the Low Income Seniors' Benefit threshold for senior couples by about

$10,000 to ensure that more seniors can avail of this program.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Some 3,800 senior couples will receive a cheque for $768

as a result of this initiative.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Mr. Speaker, our government's Poverty Reduction

Strategy has been hailed across the country as a model that others should

follow. In introducing the strategy in last year's Budget, we provided

annualized funding of more than $60 million for a suite of initiatives to

alleviate and prevent poverty, and we are determined to continue leading the

country in efforts to reduce poverty. To that end, we are increasing our

investment this year by an additional $28.9 million.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: This additional $28.9 will support new initiatives to

help our most vulnerable citizens rise from poverty to achieve a greater measure

of self-reliance. Our combined $91 million commitment to the Poverty Reduction

Strategy this year supports a broad mix of policies and programs that will

result in improved access to services, a stronger social safety net, improved

earned incomes, a strong focus on the needs of children and families, and a

better educated population.

Through an investment of $9.8 million, we will increase supports to enable

persons with disabilities to participate fully in society.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Adults with disabilities who reside with their own

family members will begin receiving board and lodging supplements totaling $362

a month or $4,344 a year that until now were available only to those lodging

with non-relatives.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: We will also increase labour market participation of

persons with disabilities, increase their access to student summer employment,

provide disability related supports in the workplace, and extend our Opening

Doors Program to Crown corporations to provide more opportunities for persons

with disabilities within our public service.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: We will also help low-income families by increasing the

Newfoundland and Labrador Child Tax Benefit rate by $5 a month, increasing the

Mother Baby Nutrition Supplement rate by $15 a month, and increasing the private

child care allowance to $400 for the first child and $200 for additional

children -

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: - giving parents greater freedom to secure employment.

We will develop an enhanced home visiting model, built on the Healthy Beginnings

Program currently provided by public health nurses, to give additional support

for parenting and early childhood development.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Mr. Speaker, to advance the status of women in poverty,

we will improve access to legal services particularly for family law matters,

increase grants to the Province's eight women's centres, and research ways

of increasing access to employment support for victims of violence.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: We will expand the Community Youth Network to six new

areas of the Province and increase funding for existing centres. We will support

an Adult Alternative Justice Program emphasizing offender accountability and

victim needs, and enable Newfoundland and Labrador Housing to provide lower

rental rates for senior tenants and to increase support for eight Community

Centres providing tenants with social, health and career development

opportunities.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Mr. Speaker, over the next year, we will also increase

the Province's minimum wage to $8 an hour in -

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: This will take place in two increments: by 50 cents an

hour on October 1 and by another 50 cents an hour on April 1 of next year.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: With the implementation of these increases, Newfoundland

and Labrador will be on par with Atlantic Canada and other Canadian

jurisdictions with respect to the minimum wage. Our government also recognizes

the need to plan for future increases in a predictable and incremental manner

and provide stakeholders with the time necessary to prepare. That is why our

government will undertake consultations with stakeholders to review the minimum

wage in the Province and to have it concluded early in 2008.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Another way we can promote self-reliance is through

investment in housing. In this Budget, we are making an unprecedented additional

investment in housing programs and projects and giving housing a higher priority

than it has been given in decades.

We are ready to announce two early initiatives flowing from the Social

Housing Review Study. The first is the development of a provincial housing

strategy. Over the coming weeks a work plan will be formed, and consultations in

support of the strategy development will be launched in the coming months. In

addition, we will be making significant increases to Housing's Modernization

and Improvement Program. Over the past fifteen years, the Newfoundland and

Labrador Housing Modernization and Improvement Program has not received adequate

funding to maintain the Crown corporation's aging and deteriorating

properties, which to be frank is a shame. As a property owner, the Province has

a financial obligation to protect its investment in these properties and a moral

obligation to ensure that its tenants have decent accommodations. Over the next

five years, we will increase funding for the Modernization and Improvement

Program by $27.5 million.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: More than doubling the resources available to modernize

and improve the social housing stock we currently have throughout the entire

Province. This is a sound investment in social housing that is long overdue.

Another initiative, Mr. Speaker, the Provincial Home Repair Program, formerly

known as RRAP, has since 1976 helped over 45,000 private low-income homeowners

throughout our Province to remain in their homes by providing funding to help

with repairs and maintenance for their dwellings. Over the course of the next

six years, we will be increasing the provincial contribution by another $24

million.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Thereby doubling the provincial contribution for this

program. This funding commitment will help us address the 4,000 applicants now

on the wait list.

Under the existing federal-provincial Affordable Housing Agreement,

Newfoundland Labrador Housing is currently considering proposals submitted by

both private and non-profit sector groups that could potentially construct an

additional 150 rental housing units throughout the Province. Under the new

Housing Trust Fund, $6.8 million will be allocated to develop a series of

housing initiatives within the Province during 2007-2008. Approximately $4.3

million of these funds will develop an additional ninety accessible, supportive

or senior housing units primarily in rural areas.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: That will bring the total new affordable housing units

in our Province to 240. Other projects under the Affordable Housing Trust

include six new two-bedroom units in Stephenville to offset property losses in

last year's flood and up to ten two-bedroom units in St. John's.

I am also delighted to announce that we will be constructing a new

Newfoundland Labrador Housing regional office building in Corner Brook to bring

the administrative and maintenance functions that are now separated in leased

spaces at an significant distance from each other to a common site under one

roof, thereby streamlining operations and enhancing client services in the

Corner Brook region.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL:

INVESTING IN PERSONAL HEALTH

Mr. Speaker, no function of the provincial government is more important to

our people than the provision of health and community services. Our geography

may be a challenge, but for our government it will not act as a barrier to

hinder the provision of health and community services to the people of

Newfoundland and Labrador. One of the challenges driving increases in health

spending is the dispersal of our people along thousands of kilometres of

coastline and hundreds of thousands of square kilometres of land. We pride

ourselves on our public health and community services and invest nearly fifty

cents of every program dollar to ensure that it serves the many needs of our

citizens, young and old, wherever they may live. This year, we are increasing

our investment to health and community services, bringing expenditures to an

unprecedented $2.2 billion.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: To promote physical fitness and healthy living, we are

proceeding with a number of initiatives to benefit young and old. This year, we

will launch our Recreation and Sport Strategy and Action Plan, which is designed

to promote the many benefits of sport and physical activity - health benefits,

social benefits, educational and economic benefits alike. With incremental

funding this year of $2.39 million, this strategy will encourage and enable more

and more Newfoundlanders and Labradorians to take greater responsibility for

their health through the positive engagement in recreation and sport pursuits

with a strong fitness component.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: We are dedicating $100,000 this year to support the

sharing of school facilities with community user groups -

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: - to enable school boards to improve their access while

protecting these valuable resources for our children's instruction.

In recognition of the need to replace or renovate health care infrastructure,

we will spent almost $68 million this year for ongoing and new projects

including renovations to the forensic and developmentally delayed units at the

Waterford Hospital in St. John's, design and site work for a new health centre

in Lewisporte -

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: - work toward a St. John's centre for clinical

research, and a new office building for health and community services staff in

Happy Valley-Goose Bay.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: We will continue the long-term care facilities in

Clarenville, Corner Brook and Happy Valley-Goose Bay -

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: - along with continuation of the Humberwood Provincial

Addictions Centre in Corner Brook, the Grand Bank health centre, the

redevelopment of the James Paton Memorial Hospital in Gander, further work for a

new health centre in Labrador West, and planning for a health centre at Flower's

Cove.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: We are also investing $22.3 million for new diagnostic

and capital equipment, which represents a $12.3 million increase above the base

funding. This investment will purchase two new linear accelerators to expand

radiation treatment capacity at the Dr. H. Bliss Murphy Cancer Centre -

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: - cardiac cath lab equipment and monitors, a Bi Planar

Angiography machine, a new x-ray machine for the Carbonear General Hospital -

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: - a CT Scanner for diagnostic imaging at Western

Memorial Regional Hospital and a CT scanner for Sir Thomas Roddick Hospital in

Stephenville.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: In keeping with its commitment to improve access to

health services, we are investing $2 million to extend the hours of operation of

the MRI units in St. John's and Corner Brook, improve pre-hospital care in St.

John's, enhance mammography and CT services at Carbonear and expand endoscopy

services at Gander and Grand Falls-Windsor.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Other measures will enable Eastern Health to open

additional beds in Bonavista and St. Lawrence, implement a new bilateral

cochlear implant service and engage a new medical flight team for the provincial

air ambulance service.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: They will enable Central Health to provide enhanced

social work services on Fogo Island and at the Grand Falls-Windsor dialysis unit

and cover additional operating costs at the new cancer centres in Gander and

Grand Falls-Windsor.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: They will enable Western Health to meet the growing

demands for dialysis services and provide an enhanced stroke care program; and

they will enable Labrador-Grenfell Health to implement a respiratory therapy

service at one of its facilities, provide an enhanced laboratory service at St.

Anthony -

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: - and provide enhanced intervention services for

children in Labrador.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: In order to address the wait list of 200 children and

the wait time in some areas of up to a year for preschool therapeutic speech

language pathology services, we will provide $396,100 to create five new

positions.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Mr. Speaker, this year, we are dedicating $1.6 million

to strengthen the Province's mental health and addictions services -

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: - including $800,000 to implement the new Mental Health

Care and Treatment Act, and also $800,000 to continue implementing our Mental

Health Policy Framework with specific initiatives such as an anti-stigma

campaign, additional addictions counselors and mental health case managers, and

supportive care for clients. We are also investing $575,000 to address problem

gambling. And we are providing $228,800 to establish a new Eating Disorders

Program, which will operate through Eastern Health five days a weeks as an

outpatient day treatment program.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: We will also invest in our health care professionals by

supporting an eight-week orientation for graduate nurses in frontline practice

through an investment of $1 million cost-shared with the Regional Integrated

Health Authorities.

Promoting public health is a priority initiative identified in last year's

budget. To follow through on our 2006 commitment to hire thirty-nine public

health nurses over two years, we are committing $1.6 million for the cost of

positions approved last year and thirteen new positions across the Province.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: We are providing $1.5 million to continue providing

vaccines for pneumonia, meningitis and chicken pox that were originally financed

under the Federal Trust Fund.

Mr. Speaker, poor dental health can have significant health consequence for

young people, but dental work can be very expensive. This year, we are investing

$2.3 million to expand dental health services to include young people from

thirteen to seventeen in low-income families and also to provide sealants for

children.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: With an investment of $1.4 million, we will provide

insulin pumps and supplies for children with Type 1 diabetes, an initiative that

will benefit-

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Mr. Speaker, this important initiative will benefit some

100 children and another thirty who are diagnosed annually.

Every year for the past three years, our government has increased the budget

for the provincial drug program, adding effective new therapies while expanding

the number of people covered through the introduction of a new low-income drug

program. This year, we will expand the Newfoundland and Labrador Prescription

Drug Program to include coverage for new drug therapies for primary pulmonary

hypertension, psoriasis, ankylosing spondylitis and advanced breast cancer.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: We are also moving ahead this year with a major

initiative to reform the Prescription Drug Program in ways that will effectively

address the high drug costs while ensuring that people in comparable situations

are treated equally. This program will benefit, in particular, individuals with

multiple sclerosis, diabetes, arthritis and cancer.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL:

INVESTING IN PERSONAL SECURITY

Mr. Speaker, this past year, two major reports drew our attention to

significant weaknesses in our child protection and justice systems. A report on

the circumstances surrounding the tragic death of Zachary Turner made

significant recommendations for reform. A report by the Right Honourable Antonio

Lamer identified significant weaknesses in our criminal justice system. The

issues are different, but they both involve protecting the rights and well-being

of those who are especially vulnerable. This year we will continue to address

the recommendations of both reports.

Protecting the health, safety and well-being of children and youth is a

priority of this government. Our government acted swiftly following the releases

of the Turner Review and Investigation to put an action plan in place to address

recommendations to strengthen child, youth and family services in the Province.

Following a thorough review of the report's recommendations and the completion

on an independent, operational and organizational review our government is

committed to making improvements. Through a $6.5 million investment this year

and $9 million annualized we will work to strengthen the Child, Youth and Family

Services system by targeting professional development and training, including

the development of a new orientation program; adding new positions to the system

including social workers and support staff; hiring additional lawyers to support

the legal requirements of the program; undertaking the necessary legislation,

program and policy reviews; implementing operational and organizational changes,

including improvements to the Client Referral and Management System; introducing

quality assurance initiatives; and enhancing our monitoring, evaluation and

planning for system changes for the future to ensure best practices are

implemented right across the system.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Mr. Speaker, we are equally determined to restore public

confidence in the integrity of our justice system by following through on the

recommendations of Judge Lamer. To better prevent wrongful convictions and to

protect the interests of clients of our justice system in response to the

recommendations of the Lamer Inquiry Report, we are creating fifty-nine new

positions in policing, legal aid, the Crown Attorney's office, court services,

civil law and operations.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Our initiatives will be phased in beginning immediately,

with an initial investment this year of $2.1 million, an incremental $2.3

million in 2008-2009, and an annualized investment of $4.1 million.

We will continue to invest in the strength of our police forces, whose work

promotes safety and security in our communities. We are investing approximately

$1.5 million this year, and $2 million on an annualized basis, in the Royal

Newfoundland Constabulary. We are investing $3.4 million in the RCMP this year

to create an additional twenty-two positions, including twelve regular members,

seven public services employees, two civilian members and a community justice

forum coordinator.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: To bolster infrastructure associated with community

protection and justice, we will invest $11.3 million for the construction of the

Corner Brook Courthouse, which we announced last year. We will invest $500,000

to plan and design renovations and additions to the RNC Headquarters and Annex

in St. John's. We are also investing $500,000 to initialize planning for a new

adult correctional facility in our Province.

In a heavily-forested jurisdiction such as ours, we cannot afford to be

improperly protected from the threat of fires. This year, we will invest $19.9

million to begin the process of upgrading our water bomber fleet under a

multi-year strategy valued at over $100 million.

SOME HON. MEMBERS: Hear, hear!

CONCLUSION

MR. T. MARSHALL: In conclusion, Mr. Speaker, this year's Budget is all

about following through on a sound vision with strategic action. As the

government of this Province since 2003, we have assessed the challenges facing

our Province. We have explored the opportunities. We have secured in our sights

a vision of a Newfoundland and Labrador where promise leads to prosperity, where

self-confidence leads to self-reliance. We have set to work developing strategic

plans - action plans - to take our vision from the drawing board to the real

world, where each strategy is applied, appraised, adjusted and advanced to

ensure the action produces real results. We have laid the foundations, sector by

sector, region by region, strength by strength, to ensure that we are fully

prepared to move forward to success on every front. We have brightened our

business climate and bolstered our infrastructure. We have charted a course

forward for each natural resource sector and pushed past the limits of old ways

of thinking through innovative investments in new ways of achieving. We have

invested in people skills; given old and young alike the tools to achieve

greater personal self-reliance; promoted healthier lifestyles, improved health

and community services; and strengthened public protections for our citizens. We

have taken responsible action to implement our vision, and we have produced

tangible results. Our fiscal situation has never been stronger. Our employment

situation has never been brighter. And the work has only just begun. We are

clearly on the right track to self-reliance. The evidence justifies our bold new

approach. This fall, the choice before our people will be crystal clear:

backward to decline, or forward to self-reliance.

SOME HON. MEMBERS: Hear, hear!

MR. T. MARSHALL: Mr. Speaker, we will stand proudly before our people

with confidence in our choices, and we will ask once again for their cooperation

as we move forward to complete the job we started together. We are continuing

with this year's Budget to take powerful strides forward on a great many

fronts, and in the years to come we will progress even farther toward our goal

of a Newfoundland and Labrador where opportunity abounds and self-reliance is

secure and sustainable. That is our vision. These are our actions. And success

will be our result. We will be masters of our own house.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Finance.

MR. T. MARSHALL: 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 this House approves in general the

budgetary policy of the government.

Members will note that this motion begins what is called the Budget Debate,

which will take place over the next several weeks. After members choose to

participate in the debate, the question will be placed before the House by the

Speaker.

I invite the Minister of Finance now to move a motion to adjourn the debate.

The hon. the Minister of Finance.

MR. T. MARSHALL: Thank you, Mr. Speaker.

I move that the debate be adjourned.

MR. SPEAKER: The motion is that the debate be adjourned.

Members have heard the motion.

All those in favour of the motion, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

The motion is carried.

Motion carried.

MR. SPEAKER: The hon. the Minister of Finance.

MR. T. MARSHALL: 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 is addressed to the hon. the Minister of Finance. It is

dated 26 April 2007:

As 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 2008, in the aggregate of $4,981,360,800, 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: _________________________________

Edward Roberts, Lieutenant Governor of

Newfoundland and Labrador

The hon. the Minister of Finance.

MR. T. MARSHALL: Mr. Speaker, I move that the message, together with the

Estimates, be referred to a 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 and that I do now leave the Chair.

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

The motion is carried.

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

Supply, Mr. Speaker left the Chair.

Committee of the Whole

CHAIR (Fitzgerald): Order, please!

We will now take a few moment to distribute the budgetary documents to all

hon. members.

[Distribution of Budgetary Documents]

CHAIR: Order, please!

The hon. the Government House Leader.

MR. RIDEOUT: Thank you, Mr. Chairperson.

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'.

Motion carried.

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

again, Mr. Speaker returned to the Chair.

MR. SPEAKER (Hodder): The hon. the Member for Bonavista South and Deputy

Speaker.

MR. FITZGERALD: 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 Chairperson of the Committee of Supply reports that the

Committee have considered the matters to them referred, have made some progress

and ask leave to sit again.

When shall the Committee have leave to sit again?

AN HON. MEMBER: Tomorrow.

MR. SPEAKER: On tomorrow.

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

tomorrow.

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

MR. RIDEOUT: Notices of Motion.

MR. SPEAKER: Notices of Motion.

Notices of Motion

MR. SPEAKER: The hon. the Minister of Finance.

MR. T. MARSHALL: Thank you, Mr. Speaker.

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

An Act To

Amend The Income Tax Act, 2000. (Bill 3)

Mr. Speaker, I further give notice that I will ask leave to introduce a bill

entitled,

An Act To Amend The Retail Sales Tax Act and the Tax Agreement Act.

(Bill 4)

Thank you, Mr. Speaker.

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

MR. RIDEOUT: Thank you, Mr. Speaker.

Mr. Speaker, Standing Order 65.1 provides for the striking of Estimates

Committees, and at the beginning of a session, of course, a new Parliament, and

Standing Order 68 provides for the subsequent amendment to those Estimate

Committees throughout the life of the Parliament. I have consulted with my

colleagues, the Opposition House Leader and the Leader of the third party, and

pursuant to agreement and those Standing Orders, I would like now to move to

name the various Estimates Committees.

First of all, the Government Services Committee - and this is necessary, Mr.

Speaker, because there has been some additions to and changes to the Committee

since we last met. The Government Services Committee will consist of the hon.

the Member for Terra Nova as Chair. Members will be the hon. the Member for

Carbonear-Harbour Grace; the hon. the Member for Fortune Bay-Cape la Hune; the

hon. the Member for Torngat Mountains; the hon. the Member for Topsail; the hon.

the Member for Exploits, and the hon. the Member for the District of Kilbride.

The following heads of expenditure will be referred to the Government

Services Committee: the Department of Finance; the Public Service Commission;

the Department of Government Services; the Department of Transportation and

Works and Labrador Affairs, and the Department of Intergovernmental Affairs.

Also, Mr. Speaker, I would like to now name the Resource Estimates Committee.

The following members will serve on that Committee: the hon. the Member for

Bonavista North as Chair. He will be joined by the hon. the Member for Grand

Bank; the hon. the Member for Bay of Islands; the hon. the Member for

Cartwright-L'Anse au Clair; the hon. the Member for Trinity-Bay de Verde; the

hon. the Member for Windsor-Springdale, and the hon. the Member for Labrador

West.

The following heads of expenditure will be referred to the Resource Estimates

Committee for its consideration: the Department of Business; the Department of

Environment and Conservation; the Department of Fisheries and Aquaculture and

the Department of Aboriginal Affairs; the Department of Innovation, Trade and

Rural Development; the Department of Natural Resources, and the Department of

Tourism, Culture and Recreation.

Mr. Speaker, I would now like to name the members of the Social Services

Committee. The Chair of the Committee will be the hon. the Member for St. John's

North, and the following members will serve on this Committee: the hon. the

Member for Port de Grave; the hon. the Member for Conception Bay South; the hon.

the Member for Placentia & St. Mary's; the hon. the Member for Port au

Port; the hon. the Member for Humber Valley, and the hon. the Member for Signal

Hill-Quidi Vidi.

The following heads of expenditure, Mr. Speaker, will be referred to the

Social Services Committee: the Department of Education; the Department of Health

and Community Services; the Department of Justice; the Department of Municipal

Affairs; the Department of Human Resources, Labour and Employment and the

Newfoundland and Labrador Housing Corporation.

As well, Mr. Speaker, I would like to take the opportunity to advise my

colleagues that we have made arrangements for ministers and the senior executive

of all departments to be scheduled before those Estimates Committees starting on

Monday. Those ministers in those departments are now available as per a

schedule. Of course, if there is any difficulty on either side of the House in

terms of a schedule, then just bring it to my attention and we will attempt to

be flexible to work out an arrangement that meets with everybody's

satisfaction.

The first item of business on Monday, April 30, which will be the first day

of Estimates hearings, will be - the appropriate committee will meet here in the

Legislature at 7 o'clock in the evening to begin the study and review of the

Estimates of the Department of Education.

Mr. Speaker, I move that the House on its rising do adjourn until tomorrow,

Monday, at 1:30 p.m.

MR. SPEAKER: It is moved and seconded that this House do now adjourn

until Monday, April 30, at 1:30 in the afternoon.

Is it the pleasure of the House that this House do now adjourn?

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

The motion is carried.

This House now stands adjourned until Monday, April 30, at 1:30 of the clock

in the afternoon.

On motion, the House at its rising adjourned until tomorrow, Monday, at 1:30

p.m.