Volume XL Tuesday Province of Newfoundland FORTIETH GENERAL ASSEMBLY OF NEWFOUNDLAND Fourth Session VERBATIM REPORT {Hansard) Speaker: Honourable P.J. McNicholas Number 12 29 March 1988

The House met at 3:00p.m . MR. SPEAKER (McNicholas): Order, ple!aSE!! ThE! han. thE! MinislE!r of FinancE!. SOME HON. MEMBERS: Hear, hear! MR. WINDSOR: Mr. Speaker, I moVE! that this House resolve itself into a Commit:.tE!E! of Ways · and ME!ans . and that you do now l.eave l::he Chai .r . Committee of Ways and Means MR. SPEAKER: The han. the f"'i.ni.s i·(:'r of Fi.nance . MR. WINDSOR: MR.

SPEAKER, It. is inde!ed a pleasure for me to present to this Honourable House today my first BudgE!t, the tenth of the Peckford Adminj.st.rat.ion. · I would like first. of al1 t.o ac knot~Jledge the contribution of 1ny prE!dE!CE!SSor, the Honourable Dr. John Collins, over t:he years 19'79 to 1 9 8 7 i n c 1 u s i v e . H i s wa s not: always an enviable task, particularly t.hro1Jgh the ear·ly 1.980s whE!n thE!

E!COnorny of our Province IJ.Ja s de vast. a+. e d by i". he national recession, which struck t. hi. s Pro v ·i n c e IAli. t. h great: e r f o I" c e and IAJas of longer duration, than .in i':he rE!St. of t·.he country. Defici.t..s on CurrE!nt Account first bc-?.cam(:~ a recur-r·"i.ng probl(:~m dt.ll~tng the recessionary period. It is largc;!ly through hi.s w:l.SE! and ti.reless stewardship of our f:J.nanc-i.al. affairs that. OIH' Provi.nce has maintainE!d thE! de!grE!E! ' of fi.scal i.nt.egr:it.y t.:hat .. IAJe enjoy L620 March 29, 1988 Vol XL. · .. ~ .. today, and for this I congratulatE! h:i.rn. Mr.

SpE!akE!r, 1 also want t.o rc~cognize the important role thai: the PrE!SidE!nt of TrHasury Boar·d and his staff have play1"\d in th1:! preparation of Lhis Budget document.. As the former PrE! side n t , I k now fun. we 11 t: hE! very long and difficult task th~::~ Board and staff have to face in preparing the eat.:imates of expenditure for the coming year, and I applaud th0'10 for· t:hr~ highly professional job they have done again Ul"i. s ·,. Y ~~a r . Mr. .

Speaker, contrar·y to report:.s IAJhi.ch have appi':!ar'E:!d in t:h1:! media tn rE!CE!nt days, t.h·.:i.s BudgEd will not be revealing an increa~ed deficit. over that projected by last year's Budget or the rn:id-year report. Sorne rnE!IllbE!rs of thE! media have interpreted the Special Warrants which were tab1ed recently in the House as dn indication of a burgeoning cu 'rrE!rlt Account deficit. I am glarl to rE!port that, in fact, the rE!VE!rSE! of the media r\?.port.s 'is tr1Je :in that the financial position For 1987-88 has improved cons'iderably frorn both the BudgE!t and thE! rnid-year report.

FINANCIAL REVIEW OF 1987-88 Mr. Speaker, during the preparat"lon of t.he 198'7- ·88 Budget one year ago this Government faced some di.fficiJl t. dec-i.stons. WE! needed to choose between severe cut.s i.n t.he level of pubJ.:i.c s E!rvi ce s or otherwJ. s E! abs orb:i. ng t he l a r g E! s t pro j e c ~.: E! d C u r.r E! n t Account deficit in our history. lJ l'l d d. U n t:. (:;! d by t h 0 S E! d l. f f :.i. C IJ J. l. i.E! S IAIB made a clearly balanced choice. We believe the people of this Province deserve the highest level of Government. SE!rv:.i.ces IAif.~ can No. 12 R620

afford, and if that means IAlf:! have to periodically stretch our res ou r.c es i·.o thE! l. "i.rni t to prov·'l. dE! thoSE! SE!rvices, then that is what t.h-i.s Governrn~~nt-: ts prepiH'E!d to do. This Government has the resolve and courage to make the hard choices for the benefit of all Newfoundlanders and Labradorians and to show confidence in ourselves and our future. I can report to you now that our confidence has been rewarded in large measure. In the Budget of April, 1987, Government projected a defid.t on. Current Account of $173 million. Mr.

Speaker, I am extremely pleased to report to this House torlay that we are no1JJ est :imat.:i.ng the 1987 - 88 Current Account deficit to be $58 mi.1lion, or $11.5 million less than originally projected. Favorable changes to our estimates of rE!VenUE!S and expenditures account for $90 million of this improvEHIIE!nt, while l:he remain"i.ng $25 mi.lli.on i.s diH:1 to a tE!Chnical change in thE! accoiJnt:i ng· trea+·.rnc:Hlt of stnk "i.ng fund revenues. Our revenue posi.ti .on improved dramati.call.y because of the Province 1 s strong economic performance.

On the expenditure side, WE! saw thE:1 benefits oF reslr;:dnt measur(;!S instituted last YE!ar and, as well, our debt servicing cos t:s IJJere reduced substantially as a result of the strengthening of the Canadian dollar against its U.S. counterpart . Improvements Account revenues million to the in our Current contributed · $63 decrease in our deftci t from the 1987 Budget. projection.

About 85 percent of Lhis exl:ra revenue was from tax sources, clearly that the Newfoundland Provincial indicating consumer and the Newfoundland L621 Mar·ch 29, 1988 Vol XL . .. .. .., .. ·· . ·-.. b u s i. n e s s c o rnrn u n i. -t-: y s hare 01 J r confidE!nCE! in t.hE! bright econom:ic fiJi:.ure of OIH' Pr·uv:i.nCt-:!. R~" l..t:<.~il saJ.es tc~X rE!VE!nUE!S alonE! E!XCE!E!dE!d OIJr Budget- E!S-1-.i.rnat:c,,s by $26 million, with ·thE! str·ength :i.n retai.l trade bE!'i.ng centered on b:i g ticket items like automobiles.

With respect to t.he 1987-88 Capi.tal Account program, overall expenditures, . despite increased requi.rements for resource sector initiatives, arE! $24 rniJ.J.:i.on lE!SS than budgeted pd.marily bE!CaiJse of the .. timing of cash flows on a number · of announced projects. Include!d in this $24· m:i11ion :L~; a $6- rnilJ.:i.on rr:~duct.ion :i.n Cap:il-.:;~1 requirE!mE!nts rE!Su1ting frorn the very successful issuance of sau:i .ngs bonds by the NewfoundJand and Labrarlor Development Corporation.

Our totaJ. borrowing requirements for the Yt:;!ar 1Ari1J. l:ll?. $121 million lower than original es ti.rna b>. s because of l:. he dec rea s E:•d Current and Capital Account requi.rc,~ment.s as I have :i.nd:icat.E•d. Clearly, rE!duction in t-his substantial the total financial requi.r~ment- represents a major improuement over the Budget forecas-t-. and an ach "i. evement of some cc,nsidE!rablE! importancE! t.o thts Province. ECONOMIC REVIEW AND OUTLOOK Mr.

SpE!aker, the past year was marb=:!d by cont.inu:ing :improv~HnE!nt in the Provincial economy following full recovery frorn the recession of thE! earJ.y 1980s. ThE! Province 1 s gross domestic product grew by approxirnatE!ly 2. 6 pE!rCE!nt in reaJ. l:enns during 1987. Our res ourc E!-ba sed indus 'lri E! s, which link the performance of the economy of Newfoundland and Labrador t.o the performance of other countries, benefitted from No. 1.2 R621 · '

. : . - ' . . . .. ~ .. . .'. . . - -·--·- .... ··--. . ... .. continued growth in the international econof'ny. Demand for newsprint was strong in international markets, and the total volume of newsprint shipments increased by 8. 4 percent over 1986 levels . The increase in newsprint production caused pulpwood production to rise by 4.6 percent during 1987. Higher average prices for fish products translated into higher prices paid to fishermen, as the total vaJ.ue of landings increased by approximately 36 percent. more than offsetting a slight decline in volume.

The price of cod f:i lJ et tAJas up by 9. 7 percent on average while the price for cod block rose by J.S.9 percent:. The,' total valUE! of rrd.nE!ral pr·oduction IAJas do1..un by approx:i.rnat.c;!ly s1.x perCE!nt. in 1987. mainly dUE! to a d e c 1 "i. n e i. n ·i r· o n o r· e prod u c l:. :l. o n i n tJJest.E,rn Labrador. MinE!ral exploration expendi tur·es, however, increased by about two-thirds to approximately $26 million, the highest level ever recorded in the Province.

The construction industry E!njoyed an extremely good year in 1987, bc~nefitt.ing from an increase of 3.3 percent. in the total J.evel of gross investment in the Province last year. Employment in the construction industry roSE! by 2,000 on an annual average basis to its highest level since 1980. The service sector benefitted from a solid performance in the goods producing industriE!S, strong gains -.i.n personal ·income, increased levels of tourism and ex~eptionally high levels of consumer expenditures. The Province 1s inflation rAte of 2.9 perCE!nt:. t.IJas thE!

SE!COnd lowest. of any Canadian provi.nce, iHld i~hE:1 lowest recorded for Newfoundland s .. i.nce 1.9'71. l_ow ·inflat:.·i .on and intE!rest rat.E!S, combinE!d with an L622 Mi:<J.rch 29, 1988 Uol XL increase of 7.4 percent in personal income, boosted consumer confidE!nce and spE•nding. In 1987, the value of retail trade increased by 11.3 percent in currE,nt dollars, and a. 2 p1:!rCE!nt in rE!al terms . This was thE! strongest rE,al grotJJth r·ate in retail trade experienced in the Province since 1971. In l9B7, empJ.oyrnE,nt :i.ncreas1?.d for the second consecutive year by 5,000 on an annual. averagf~ basis.

Given the SE!asonal nature of sorrtE! Provincial. indust.ries, . l:his translates into at least 10,000 individual. jobs creatc:'d duri .ng the year. Employment. growth eXCE!edE!d grow~h in the labour force, causing the unemployment rate to fall. 1. 4 pr:!rCE:111 tagc,1 potnts t.o 1.8. 1) p E! r c E! n t o n an a.n n u a 1 bas :i. s , J. t s lowest level 1n five years . Mr. Speaker, I am predicting with confidence that. the Provincial economy will continue to experience strong growth in 1988. The Province 1s gross domestic product is forecast to grouJ by 2. 2 percent in rea) terms.

The Province 1s prJ.mary resource industries will benefit from continued international econorni.c expansion. Econotnic growth in the G-7 countries is expected to average 2. 3 percent in real terms. In the Province 1s main export market, the United States, real economic growth in the order of two percent lS anticipated. Economic growth in Canada 'is fon-?.cas LE!d t-o be abo1jt. 2. 8 percent in re!al terms. ThE! Provi .nct::1 1 s servtcc,1 secl.or tAJ:i.ll be stimulated by growth in thE! goods prodtJc:ing .. industries, h:ighor J.eveJ.s of E!ITipJ.oyiTIE!nt and gains in personal income.

An expected inflation rate of only 3.2 percent tAd '1.1 s E! r· v E:1 , .. o e n h a n c e c o n s 1 HllE! r a n d business confidence in 1988. ThJ.s No. 12 1~622 : ..

compares favourably to a proj E!Cb:~d inflation rate~ of 4. 1 percent for Canada as a whole. Ernpl.oyrnl':~nt gJ~OIAJt.h ·in the order of 2.2 percent, or 4,000 person-years, can be expE:~cted for Newfoundland in 1988. Based upon the h-igh. J.evel. of employrn<-:~nt experienced during the first two months of thts YE!ar, t:hi.s appear·s very reasonable, The actual number of net.u jobs created could be as high as 8,000. With slower growth in t.he labour for·ce, I: he unemployment rate is expected to average approximately 17.4 percent, a decline of 1.1 percentage points from 1987 and 2.6 points from 1986. Mr.

Speaker, despite the current low levels of world oil prices, exploration activity offshore Newfoundland continues at a healthy pace, albeit somewhat belotJ.J the peak leueJ.s of 1983 and 1984.- During 1987, five new wells were started, with total expenditures of just under $200 rnill.:ion. So far in 1988, one net.u IJJE!ll has bE!en spudded, while drtl.l.:ing cont.iniJE!S on 17.WO of +·.hosE! commenced J.ast year. We expect that exploration activity wtll increase substantially over the next fE:~IJJ years.

Although the drop "i.n oi.l. prices has made the Hibernia negotiation process more difficult, intense negotiations continue and Government is optirnisU.c that a decision on Hibernia development will be reached within the next few months. Both levels of Government recognize the overall importance of the SOO million barrel plus Hibernia fit:~J.d in mE!eting the energy security needs of Canada. They aJ.so rE!COgnize the nE!ed for t.:he st:irnuJ.1Js to the economies of L623 Mardi 29, 1988 Vol XL. I '• ' •,. ;,. ~ • • " • "' .. .. .... . eastern Canada that Hibernia devel.opmenf would provide.

Recent positiVE! rE!SUJ.ts froiTI i· he dE! 1 "i. nea +-.'ion d r·i.ll :i. ng prog r·a1n on the Terra Nova discoVE!ry 1E!nd further cause for optimism, with recoverable resource estimates at l. e a s t d o IJ b 1 ·i. n g f r o rn 7 0 m i ll:i o n barrels to in excess of 140 rni.J.l.i.on barrels. The Clperator of the field continues to actively delineate the structure, and a decision to proceed with development "i.s expected in 1989. Evaluation is also p~oceeding at the Whiterose structure. To date, two delineation wells have been drill.ed and a third is nearing completion.

If the 300 million barre 1 recover a b 1 e o i.l. E! s t i ma l: e made by thE! DepartiTIE!nt of EnE!Ingy prior to . the dri.ll.ing of the current E-09 well can be confirmed, then this field would also quickly become a candidate for development. In add:it.:lon, thE! Canada-Newfoundland Offshore Petrol.(·Wm Board has called for l:he submission of bids on. eight promising parcels in the NewfoundJ.and offshore arE!a, cilosEH1 as a result. of no1n'inat.:ions by intE!rE!Sted companiE!S.

The cal.J. - for b·i_ds has bE!en i.sSijE!d for more than 250,000 unexplored hectares o n t: h e G r· a n d 8 a n k s "i n t h e v .-J. c:i n :i. t y of the Hibernia, Terra Nova and Whiterose discoveries. The very high level of industry interest ~n the sale i.s expectE!d to resuJ.t i.n the drilJ.ing of at J.east Ed.ght. new offshore 1.1.Jells dur:'i.ng the nE!Xt three years, with sE!isrnic surVE!YS and other preparatory activity likely to get underway in 1989. T h :i. s s h o IJ 1 d 1 e ad t. o f u r t he r increases in proven reserves of oil and gas on the Grand Banks. Mr.

Speaker; t.he reactivation No. 12 R623 •. 0. ·.

of the Come-by-Chance oil refinery in 1987 marked a significant event and has r(,~sulb~d in the fLtll-t-i.HIC:~ employment of 270 people at the fa ci l. it y . F i. v (,~ hun d red IAIO r b~ r s were employed at pE!ak pE!riods during the restoration process . Additional investment is s chedulE!d for 1988, which tJJould increase the operational efficiency of the refinery. The capabi.li ty to produce additional quantities of jet fuels and distillates is expected during 1988.

Government believes that the energy prov:isions of the Fr·ee Trade Agreement recently reached beh1.JE!E!n the Government:s of Canadr.l and the United StatE! s wi 11 rE! s ul t. ·in expanded opportuni t:iE!S for· i::h(.;! Come-by-Chance oil refinery, for Hibern·ia and other ·offshore developments, and for Labrador hydro megapr·oj ~~cts. Thi.s IAJi.l.l. be accompljshed without compromising t.he local preference provis i.ons so hard fought for by this Government. BUDGETARY POSITION FOR 198~-89 Financial Outlook Mr.

Speaker, Government is very pleased !Ad l:h the dramaU.c improvement in our financial position for the fiscal year abotJt to end. As my predeCE!SSor stated in the 1987 Budget Speech, Government is committed and determined to eliminate our Current Account deficit within the next fl?.~w years. Accordingly, Government has forrnulatE!d a financiaJ. strategy for the new fiscal year which for'E!cast.s a further 30 pe!rcent rE!dtJct.ion J.n otJr Curr·r:!nt Accotmi~ requirement. The following tahle o IJ t·l. ·i n ('! s 1:: hE~ de t. <:d.l s of our 1988-89 finand.aJ. position.

I arn extrE!tnel.y pl.easE:~d ~:o announce to L624 March 29, 1988 Vol XL I .. • ' .: .- • • "• • this Honourable House t.hat l".:hc~ projected · Current requirement for 1988-89 million, which is only 1. 6 Account ·is :~1~1. pE!lnCE!I'lt Account: of our total Current budget. The net Current Account expenditure growth rate for 1988-89 is projected to be 6.5 percent while Current Account revenue will increase by 7.6 percent.

While grotAJt.h in Provincial tax source:~ rE!VE!nUE!S J.s not expected t.o equal last year 1 s performance, modest increases in incomes and spending, t:r"igg('?.rE!d in part by the incrE!ase in pE!rsonaJ. d:isposabJ.e -Lncom(':! r·estJltoi.ng ·Frorn tax rE!form, will incrE!aSE! our· tax reventJe:~s by about four perc~?.f'lt. EquaJ.ization transfers from the Go v t.;! r' rm1 (:~ n 1:: o f C a n ad a rH' e f o r e c a s t. to grow substantially this year, r·efl(-?.Cting t:he si:r·engt·h of the Canadian economy. The net CapitaJ. Account tnequ""i.remE!nt for 1.988 ---89 is projected to bE! $221 rnJ.ll:l.on.

The r·esult..ing budgefar·y rE!quiremE!nt. for Current and CapitaJ. Account cornb·.in(.;!d of $262 miJ.J.·.:i.on cornpar'I?.S favourably wH.h t:hat of rE!cent. years, and J.s notAJ projc~ct.E!(::l to be:~ ju~t 8.9 percent of total spending. We are making considerable prog r·e s s t.OtAJards our des oi 1ned goal of having a Current Account sur p 1tJ s . As IAJe 11 , our debt service ratio for· 19 88--89 wi 11 be 15.9 pc-?.rcent, j·ts J.otAH'!St. lE!Vel sinCE! 1983---84. Revenue Measures Mr. Government Current SpE!akE!In, -i.s still.

Account whi1E! l::h:i.s fa C (,' d lA I :i. t h a dE!ficH .:, expc,~ndit.:urP r·oduct·ion opt.'ions arE! limited. In five succes~ive B u d g (,~ i ~ s s 'i. n c c'! 1. q ll 3 t Jri. ~· Go v e r n rm'! n t No. 12 R62'~

has introduced no major tax increase~s, even though Eu-u:h year we faced a difficult budgetary situation. This :is a Government o f s o u n d f :i n a n c:i. a l a n d f :i s c a l managE!rnE~nt, but also onE! SE!nsit:ive t.o the nf:!eds and desir·~:!S of Newfoundlanders and Labradorians. fhis year, Mr. Speaker, IAlC:1 have continued to hold fast. I arn, therefore, particularly pleased to announce that this Budget: IAJi.11 see no s:i.gntf·i.canl: increase in the Provincial tax burden borne by our popula ·l: "i.on.

This wi11 bE! a kE!Y· element in building on the private sector strength our economy is now exhibiting, wh·ich in itself translates into higher Governmerit revenues. Most i.ndividual taxpayers in this Province will see their Newfoundland and Federal income taxes reduced in 1988 · and subsequent years due to tax reform. Not only have we forE!gone major tax increases for our sJxth consecutive year, but this Government has preserved significant income tax savings generated by tax refor·m. Mr.

Speaker, ·i.n keeping IAri. l:. h our objective of restraining the biJdget:ary def:ic-i 1:., T. am introducing the following modest r•e:1uenue r•a i.s"i.ng measiH'c~s: L625 Thco1 NC-:11Alfolmdl.<:-\nd U.q1wr· Crirporation is requested to generate an additional $2.0 million for the Province. VariOIJS dc~partmenta1 fe:1es and licenses will be increased to generate an additional $1.3 million. These increases include fines under the Highway fraff:ic Act, non-resident hunting and fishing licenses, liquor Mard1 29, 1988 Vol XL estai;>J.:ishment rE!gistrations IAJi.de range acU.vitiE!S. .. ..... . ·· lJcensE!S re::!

J.a ted ol"" and to a sales The retail sales tax will now be applied to extended warranties and maintr:!nance::! contracts at the time the contract: i.s entered into rather than when the IAlar-rant:y work :is performc~d, making our treatment consistent with other provinces. This wi.Jl generate an add"i.t.ional $500,000. On the ot:hc~r hand, Ml". Spc,~ak(':!r, .

I arn pl.~~asrc!d l:o announc('! t: hE! f ol J. ow:i. n g p o s J. t i u E! chang E• s as a dJ.r·ect r·esu1t of Gov~·H'rllnE!nt.'s ongoing monitoring and rationalization of tax exemption policies and legislation: No. 12 A rE!tail saJ.es tax eXE!ITlption will be introduced for dental filling materials. This measure will ensure that saJ.es tax on t~hr::~se rnatf>.r i.al.s does not ser·ve l:'o increaSE! thE! cost of dE!ntaJ. care, so important, particuJ.arly to our young people.

T h E! c u r r E! n t. r··c-:! t: a i. 1 s a 1 c;! s t. a x exemption for propanE!, which is 1-i.m:i.t.ed t:o q1Jant:i.tJ.~:!s delivered in 89 litre capacity or larger cylindE!rS, is inE•qui tcl.bJ.c.::•, par·t'.'i.C IJlalnly to riH'al. arE!aS of OIJr Pr·ov :ince IAJhE!rE! delivery service is not avai.lable. Effective immediately, this exemption Js extended to all. consumE!rS rE!gardless of their p1aCE! of habi.t.at and t.hE!"i.r· mr.::d~ hod of de!livery. R625

. . . ·rhe prov i . ~> i.on i.n t.hE:~ Ret:a·i.l Sa]es Tax Act that requires a supplier of a taxed sE~rv:i.ce t.o pay tax whE~n a v a J l. 'i. n r:J of "i. 1.: s o t•J n s e r v ·i c E:~ s will be repealed. Public Service Restraint For the past nurnbe!r of ye!ars, Government has assigned a significant vacancy reduction factor to deparmental sal~ries which has resulted in the accumulation of a number of long-term vacancies in the permanent complement . Government has now dE!Cided to eliminate over 40 0 of t h o s e p o s t s w h :i. c h h a v e not been filled for a period in excess of 10 months.

In ft~ture, departlTIE!nts will aJ.so bE! requirE!d to achieve a standard enforced savings reduction in their total non-cost-shared salary budgets of approximately four percent of thE:d r· appr·oved sr.~lary bt~dget .. Additionally, as part of an ongoing effort to streaml i ne operations, Government has identified seuera1 areas where minimal lay-offs will be implemented. · Tax Effort Mr. Speaker, over the last seVE!ral years this Government has offered a number of tax incentives designed t.o stJ.mulate the Provind .al economy and improve the prospects of all our residents .

Examples of these supportive initiatives includa: the ~ales tax exemption for handcrafted products, the saJ.es tax E!XempU.on For manufacturtng eqtdprnE!nt, the reduction of the small business income tax rate and the small business income tax holiday. I 1~ds h o p p o r t u rd. t y t.: o to try take to di.speJ. this the L626 March 29, 1988 Uo1 XL ... .. "'. ~ · · · ... -~ p o p 1 ~ l 13. r rn 1 s c o n c E:' p 1.: i o n t h a t Newfoundla~ders and Labradorians ar'c-'! the most h~~av:i . l · iy taxE~d pE!oplc?. in i:hE! nation.

This rnisconcE!pU.on ar·-LsE!S for·rn t:h(,~ highly uts:i ble tax rates appJ.icable to our personal 'income and constJrnpt .ion tax(~S . HoweVE!r', any analysis of rE!lat:i.ve tax effort must encompi'.lss thE! entire range of revenue raising activities undertaken within the province. This analysis reveaJ.s that NelAJfoundland' s tax effort is not as heavy as many believe. Two major factors inflUE!ncing the Provincial taxation system relate to our municipcll gove~rnmE!nt and rc;!SOI~rce S(~C t.ors. At this stage in the development of m wd. c i p a 1. g o v e r n me n t , t:i"H'!

P r o v i n c 1::! is required to fund many of the services, -i.ncl.1~d:i . ng E:~ducat.:Lon to a large extent, which are provided by rnun lC"i. pal.:i.t-LE:~s tn some other jurisdictions. Also, economic factors associal.:ed with many resource developments in this Prov ·incE! res1~l.t J n relal.:ively J.otAJ levels of GOVE!rnme!nt rE!VE!nt..IE!s fr·orn thc,~se sE~ct. or·s .. Mr·. SpE:~akE:~r. in assessing b~x effort one wouJ.d be remiss to tgnore those forms of taxation not utilized in this Province.

Although our personal jn co rne tax rate appears high in re!laU .on to other provinces, we have not followed their lead in resorting to other measures such as personal income flat . taxes or· surtaxes. SimiJ.arly, residents of this ProvincE! arE! not subj ectc;!d i:o health insurance premiums or pay r o·ll tax e s w h 1 c h g E~ n E! r a t _E! substanti .a1 revent~es in some ot.hc?.r' provinces. These factors necessitate a concentration of our tax effort in the more visible l:axat ·i on fields. Empi.r·i.cal E!VidenCE! rE!VeaJ.s that t:hE! OVE!raJ.J. Pr·ovJncJaJ. and local governnwnt No. 12 R626

tax effort tn NewfoundJ.and dur·ing thE! 1986-87 fiscal ye!ar was just 102 percent of the nattonal average, which was lower than that i n Q u e b e c ri n d M a n i t. o b a a n d e q 11 a 1. to the tax effort in Ontario. Tax Reform Mr. Speaker, this Province has been a part.ic-Lpant 'i.n the r·eforrn of the Canadian tax sy.stem which was initlated by my Federal counterpart. The general thrust of tax reform h~s been to lower rates and broaden the· · tax base. For individudl taxpayers i n this Province, the collective Federal and Nei~JfoLmd1 c'lnd FH>.r'sonal. incoHH'! t. ax b i. l l.

IAri l. 1. be $ S 0 m"i. 1.1 ·i on 1 ~~ s s in 1988 than it would otherwise have been. Appr·oxtrnat.ely 90 percent of Newfoundland taxpayers will directly experience an increase in their disposable income as a resiJlt of th(~se measures. In fact, 2S,OOO individuals on the lower end of the income! scale will be removed from t. hc~ income tax roJ.l.s cornpletel1y. These savings 1.1Jill be reflected on . paycheques commenctng in July, when source deductions change to the lower tax rates.

This Government has some concern with respect to the possible impact on mineral expl.oraUon of modifications to the corpora t-.e::1 t.C\x r'11les for Lhc,1 mining . industry and has est:abl.ishC::1d ~ gr·oup r·epr'E!S(:HJI".-i. ng Government an~ industry to examine Uris i.ss11e. The Provi.nce, h01~1ever. is gElnElralJ.y pleased with cor·porat·.e i.ncome tax r·eform.

Discussions are currently ongoing between the Federal and Pr·ovtnci.al Gov<,1rnmElnts towar-ds t·he feasibility of a national sales tax which would replace .the current. sales tax regimes of both L..627 March 29. 1988 Vol XL . : ·~ ;. .·· .. .. orders of . Government. BecausE! of the complexity and irnpLlcaU.on~~ of t h :i. s i. s s u e . s a 1. e s t. a x r e f o r rn IAJ.i 11 not occur before 1990. The ProvJnce has not. yet develop~:l d a position on participation in a national salc~s Lax system, and wi 11 no t do s o u n t i 1 a 11 d E! t a :LJ. s are knoiAJn.

Some of 011r in:J.t. :ial concerns have been alleviated in that the Federal and Provincial Finance Ministe!rs haVE! agreled that food I.~JOill.d not. be t:ax<,1d and that the municipaJ.it.y, un:iVE!rsity, S C h 0 0 l. i\11'1 d h 0 S p i. I ~ F.\ 1. S e C i-. 0 Y' S IAJO U 1 d not have their tax burdens increased. Fiscal Arrangements Mr . Speaker. this Government IAJ i. 1 J. C 0 n t "i n U E:1 IAJ"i. 1:: h "I t. S C~ f f 0 r t. S 1:. 0 have improvements madE! to thE!

Equal"i.zat·i.on Progrc.'lm, incJ.ud:ing an examination of thE! rE!gional costs of pr6vidoi .ng PIJb1ic services. and alternative treatments of non-renewable resource revenues. Other issues undE!r thE! Fisca1 Arrangc-?.ments :include cont:inu~:~d restraint of the Estab1ished Programs Financing transfers, through which f:Lnancia1 suppor·t: is plnov:id<.;ld for Pr·ovinc:l .al hf:!a1 t.h and post-secondary Elducat:ion p1nog1narns. and Prov'i.nc 'i. al. ·i.nco1ne tax flexibility through the tax collection agreements. Tn otl'l(:'r respc;lcl-s, the Province is gE!nerally pJ.easEld w·.'.i.th the tev·iew of the f~scal.

ArrangemElnt:s for the 1987 to 1992 period which was finalized J.ast year. ParticuJ.arly welcomed were the t.echn -L cal ddjustmC'll'lt.s mad<-?. l:.o the Equalization Progr·arn, wh:i.ch "i. mpr·ovfH~ l::he rneasur-~Hnc'!nl-. of t:he relative revenue generat i ng capac i ty of provinces. Business Incentive Programs No. 12 R627

M r· . S p e ill I< ('! r , t h i. s Go v f'! r n m (Hl'l': has a longstanding commitment to st: 'i.miJl.ai:.-i_ng bus-i.J'l('!S s oppur·t.1 .1n i L"i es :in the ProvinCE!, rE!CentJ.y r·E~<'Iff-Lr·med by OIJr responSE! l:o l·:hE! recommendations of the RoyaJ. Commission on Employment and UnE!mployment, which recogniZE!d the tremendous contr"i.b1Jt .i.on of Ul"ls sector to E!COnomic growth and employment. We bel:i.eve t:.hat Newfoundland and Labrador is witness"i.ng the emergence of an entrepreneurial spirit, and this Government is doing its part by creating an environment in which businesses can prosper. Mr.

Speaker, in 1988 we will be continui.ng the support to thE! Province 1 s businE!SS sector that IAJe enhanced so significantly last year. Withtn the rH?.Xt coiJpl.e of months this Government is planning to implement the NeiAJf(wndl.ancl" Stock Savings Plan. This tntt-i.attve w-i.ll prov"i.de f-i.nancictl incentives to individuals who p a r· t i c :i. p a '1: E:1 ·i. n t h t s p r· o g r a rn , a n d IA.Ji 1 J result in badly nE!E!ded equity capital for en~erprtstng Newfoundlanders.

Discussions are CIH'Y'E?.nU. y ongo i.ng IAri. th LhE:' Honourable Michael WiJ.son with a v i.(-?.IAJ to hav"Lng part: of t.h"'i.s :incentive dE!livered as tax credits IHlder t.he Canada-NeiAlfOIJndl.and Tax Collection Agreement. A grant s1Jpp1ernc-?.nt also woiJ1d be prov:ided as an . additionaJ. incentivE• for inves t"i.ng in smaller, hi.gher r'.isk ope rat i o·n s .

ThE! new and expanded programs at the Newfoundland and Labrador DE!Velopment Corporation (NLDC) and the Department of Rural, Agricultural and Northern D e v e 1 o p me n t , IA.J ~d c h 1~1 E! r e (,~ x t r E~ m (,11. y IAJell rE!Ceiued last year, will be cont.·i.nuc'!d. FIJnd"i.ng for l::he financial assistance programs at NLDC tAJas prov-i.ded by the proceeds L.6 2 8 Mar·ch 29, 1988 Vol XL. ... fr·om I.: he ·salE! l·. o l:.h('! 'ptibl. ·i c of DeveJ.opment Savings Bonds in Nou(,~HlbE!r', l9B7.

Th ··is -Ln·it ·i.al :.i.ve, thE! first of its kind in Canada, r E! s u l. 1·. (,1 d "i. n $ B . 9 nit l ·1. ·i o n ·i. n b o n d s bedng purchaSE!d by NE!IAJfoundlandl:!l~s and Labradorians. Considering that these bonds were in direct c om p e t. 'i. t: 'i. on tA.J·'i. 1: h Can ad a Sa v i n g s Bonds, t11E! sucCE!SS of this issue proves that the people of this Province share our confidence in our fut.IJre. Because of the strong response to the first. issue of Development Savings Bonds, annual issUE!S arE! now planned, which IA.Ji11 provide the fund'ing for NLDC' s financial assistance programs. Mr'.

Speaker, I bE!liE!VE! that. our· in:i.t.:i.ati.v~::~s in l:ht~ b1Jsiness incentive area are tailored for success because of the extent oF the involvement of the private sect.or 'i.n t.he ·i.r· developrn,~nt. Over thE! past year, a nurnbE!r of task forces comprising representatives of business, Government, and the F. c o n o rn :i. c C 01 Hl C"i 1. of N ~::~ tA.J f o u n d l. a n d a n d L. a b r ad o r h a v E! s t u d i E! d n E! IAI policy concepts and made recommendations for Government r:ons 'i.d(·H'a1 ... :-i.on. Th Ls ne1~1 cooperative spirit w:i.ll help e n s u r· e 1". h a t.

Go v (,~ I" n rn E! n t d E~ 1 :.i. v (;! r s the programs that business needs to put OIH' vast. r('!SOIH'CE!S to IAJOrk generating weaJ.th and employment now and into the future. Atlantic Agency Canada Opportunities The establishment of the Atlantic Canada Opportunities AgElncy (ACOA) was announCE!d by the Pr-i.mer Min-i.st.er :in June, 1.986 tn recognition that special measures I~.JE:1r(,> r(.;lqu:i.red oi.n NE!IAJfoundland c'.lnd the Mad.tirnE! Provinces :tn ordE!r to ass"i.st and st. · i.mul.~1t.e E!COnornic dE!VelopiTIE!nt. act.:lvitiE!S. ThE! Pd_rnE!

M :i. n "i. s t·. e r a n n o u n c e d 'L h a t +: h (.;! A C 0 A No. 12 R628

would be provided with a five-year budgElt of $1. OS billion and thctt these funds would be additional to the current levels of expenditures f or regional development activities. Since then, thE! ProvincE' and ACOA have irritiated d:iscussi.ons to develop appropriate and flexible programs adapted specifically to meet the ne,eds and re,quireme,nts of t.he Province 1 s bus·i.n~~ss cornrntJn"li~y and our general economic development.. The $1.

OS b'i. ll. i.on i.n new funding will be directed pr·i.mar·i.l.y to the pr ·ivat.('l sect :clY' t:o allow for new business developments and the expans t on and/or modernization of existing bJJs i.I'H'! SS . Cons -i. dcH'f.·\bl.(' ' C:Hnphas is wi 11 a 1 so bE! p 1 acE! d on en tr(:~pr·e rH:~ lH' "i.a l d E:~v e l opme nl. cHld training and financial support lAJi.ll be provi.d~H:l to non-cornmerci.al agencies who support business and private sector development, including research and development, education and training, promotion and marketing.

OVE!r the ne,xt year WE! intend to IAJO r k c 1 o s e l y lAd t h t. he A t l a n t i. c Canada Opportunities Agency to develop and deliver new and meaningful programs, ensuring the max :l.rnum benefit. for our· Provi .nce . WE! intend to s·implify and streaml i ne the del-i.very of programs, furth(~ring the one-stop shopp i ng concept, and where pQssible avoiding duplication and confl. -i. ct between Federal and Provincial programs . Senior Expenditure Review Committee l'-1r .

SpE!ilkE!Y'. l.rlst yc;! cH' rny pr·edecessor announced that a S~Hl Lor Expc;,nd t t:ur·e R E~ ~J -j ei~J Cornmi.ttee lAJOU J.d bE! established to undertake,~ a ft.rll. r·e v t c,H,J of the efficiency and Elffe,ctiveness of L629 March 29, 1988 Vol. XL Government 1 s operations and to develop a multi-year plan to eliminate the Current Account deficit. . The Co rnrni t. L-. e E! , consist i ng of four senior Deputy MinistE,rs and supportE!d by a smcd.J. research grotjp, has bE!(:!n undertaking its rElViE!W during most of the past year and will continue its work during th~ 1988-89 fiscal year.

S ·i. n c e i . t s t n c c'! p t: i. o n 1.: h e S e n "i o r Expenditure Review Committee has p r o v i. d c'! cl p e r ·i. o c:l ··i c r e p o r· t s t o Government on a wide variety of matter ' s. Tn prepcu·· ·i,ng UH:,s e rE!ports, thE! Cornrn:itt.E!E! has workEld cl.OS(:'ly t~J·it.h J.i.nl'! dc'!Pi"'l~tmt.~nl::s t.o idE!rlt:ify ways to Y'E!dUCE! thE! gr'OlAJI:h ral:e ·j n i :: h(:~ · i r· C;!Xp<::'nd i t:ur· c,,s.

A kc:!Y elc-:llfl~~ni·: of !:hE! s~m:i.or Expe,nditure RElview Cornrnj.tt.E!E! 1 s activti· :--Les dur·tng 1988 ··-B9 !Alill be overseEdng Hw operatiom'J.l rE!V:iE!WS by external. consul.tants of ti~Jo GovernmE,nt. departmE,nts. On t.he recormnendatJ.on of U1'"' Cornrnittee, Government has selected the Departments of Social s"~rvtces and Public Works and Services on a pilot project basis t.o unch;,rgo a cornprE!hE,nsiVE! analysis of t.hEdr · operations from an objective and professional perspective.

GOVl':!rnmE,nt · i.sstH~d a proposal call recently and will award a contract afl:~H' analyztng l:.hc;, various proposals that are received. Based on the results of these studies, Government hopes to ·improve upon l·: hH c'lff J ci.t.HlCY and effectivE,ness of thE! operations of these two departments and others as the circumstances warrant. Mr· . Sp(:~aker, th(:~ ScHd .or ExpE•nditure Revi.E!lAJ Cornrni tte•E! i.s V i.eiAH'!d as a v i. I:. a 1. i. n s 1:: r u lllE! n t. to assist GovE,rnmE,nt i.n ach:i.c:,vi.ng i.t.s o b j e c t. ·i. v ('' o·r c,~ l t rnt na t.·i. ng the Current Account dE!fi.ctt.

I arn No. 12 R629

optimistic that thedr furthE!r work and subsequent reports wj.l} Jdentify a clear path to a balanced budget in the years ahead . EXPENDITURE PROGRAM FOR 1988-89 M1~. Speaker, thE! GovE!rnrnE!nt of Newfoundland and Labrador has experienced difficult financial times tn the 1980s. Tndec,H~~ no Administration of this Province throughout history has ever been in a position to give our people the level of public services which they IJJou1d like and which they so clearly deserve.

Our goals and objectives for improved services and a higher standard of living have always had to be tempered and cut to fit an economic and financial cloth that, quite frankly, has never bE!en sufficient. We have had to do this in order to maintain the ProvincE! 1 S fiscal integrity and cred:ibi.1:it.y.

Despite this less than ideal economic r.lnd ftnancial cl:i.mate I t h £~ Peck ford ·Ad rni n is t rat: ion has always constc:IE!r'E!d the,~ people to b~~ this ProvinCE! 1 s greatE!St. asset and has ~~nde::~avotJr<;!d, agatnst the hrH'sh financial re!alitiE!S, to providE! ever·-trnpr·ov·Lng public ser·v-t.cc'!s and infrastructure throughout every reg.ion of -l:h<,~ Pr·ovi.nce. I stand here today as a proud Member of the Peckfo1~d Gover·nm<.;!nt~ uJhich for the past. ninE!

YE!ars has built an impressive record of accomplishments for our people while at the same time strengthening our reputation as competrint fiscal managers in the financial capitals of the world. SOCIAL PROGRAMS Ov c.~r the past n:i.nE! years I tAJe _havE! de!rnonstrated clearly a strong commitment to thE! enrichment . of L630 March 29, 1988 Vol XL : ... , ..... .....: .. ·· .. .. . our soc:i.a1 programs.

In fact not only hav<-:! ~~JE! provi.d(;!(~ g(~nero1js incrE!aSE~S bE!yond thE! aVE!l~agE! gr'OI•Jth ·i.n ConsLtlTI!:H' Pr··i cP Tnd<,'X l:wt wE~ have both onriche~d and cr' E!i."ltE!d nE!lAl programs in high pl":.i.OJ"j ty ar<->.as.

In parti.ciJJ.ar~ I t~Jould single out tho following irdt ·i.at:i.ves: - a rH:~lAJ Municipal Grants Program; - a nE!W SE!nior· Ci b.ZE!ns 1 Drug Program; major · ·initiaU.ves t.o improVE! the secondary and post-secondary school systE!ITIS; - onrichrnent. of the teacher ratio; - a significantly expandc?.d Community Development Employment Program; - major improvements in Provi.ncial. ferry services; - a n et~J T r1 x Equal :i z at :.i. on Program for school boards; - major increases in thE! number· of sen-Lor· bE!dS funded; c:i. t i Z (l, 11 S I - pl~ovisions expanded Channe1 1 BonavJ.sta, Burin; and significant allocations construction. for now or hospitals at Grand Fa11s, Clarenville and g r·owt h for new in school Despite the difficult restraint period we havo had to cope 1~d.th~ our cornrnitrnE!nt to esSE!ntial social programs was not sacr'i.ficl':~d.

Thts Admin:is trat.:ion No. 12 R630 ~ -

.. . ... ts pr·oud of our· achievement ·i.n this regard and to support our reco1nd I l.o~louJ.d like ·t.o ' c:i . h~ examples of our· achiE,vernent. The annual average compound growth rate over t:he past nine years has beEHl: 9 pe!rCE!nt for college and institute support; - 15 percent for Student Aid Program; 9 percent s alar·y cost. s; for - 13 perc~nt For op e rating grants; mun-Lci.pal. 28 percent for Community Devel.opmc,~nt Pr·ogram; - l.O percent for· Med"i. cal CarE! Commission; 12 percent for senior ci.t.tzens 1 homes; and 9.5 percent for hospital ope~ating grants.

These gro1.o~1th rates and neuJ initiatives in the social sector, when compared to the 7. 4 pE,rce,nt annual average growth rate .in the Consumer Price Index, de,monstrate our commitment to bring our social programs up to national standards t.~.Jithout cornprornis"i.ng our Fi.nancial. cre,dibility. The Budget I am presenting todi:~y r·efl.c~ci::s the cont.:inwing ~etermination of this Government to broaden and -l.mprove · i"Jw services we provide to our people . Accorcf'i.ngl .y, Mr.

SpE:~akc,\ r, I would now like to highlight some of t: h e m ;:~ j o r <.;! x p E:HHH t u r· f'' s i . n c 1. 1 1 d e d in the' budgE!t for the' nE!W fiscal y ear . W hE! r e a p p 1 :i. c a b 1. e , U1 E:\ expenditures projected are L631 Mar·ch 29, 1988 Vol. XI .. .· " .. ·· .... consistent . with Lhe three-year capital expenditure restraint s announced in last year 1 s Budget.

Pensions As a continued demonstration of our commitment to Government pensioners, I am pleased to announce that I soon w:i 11 be introducing legislation which wi11 grant an i .ncrease to all pensioners · of at least three percent effective April. 1, 1988. As well, recognizing the impact of the cost of l.i.ving on those pens{ohers who have been on pension for ten years or more, Gouernment will grant an additional. one percent For ea c h year a person was on pension prior l".o 1.97B i~o i:l rnax .. irrllim tot:aJ. increase of ten pe,rcent.

Finally ., in order to asslst those pensioners with small pe,nsions and those spoiH>l'?.S of deceasc~d pensioners who receive limited s 1 JY' v t v or b c~ n ef t t.: s , Go v ~H' n rn E! n t 1.o~d. 11 increase the minimum pensions by 23 percent from $2,200 to $2, '100 per annum. Education and Career Development ThE' future of oUin ProvincE' 'i~; undeni.abJ.y the chi.ldrr:Hl and youth of today. This Administ.r·ation ha s a11AJays rc.;!cognized 't.:hi .s fact and has promote'd educaU .on in many IJ.Jays thH :introduction of Grade XII in our high school program, t·: h c->. c r· e:1 a t. "i. o n o f a n E!

IAI D ~=, p a r t: rn E! n t of Career Development and Advanced Stud 'i. es, the-?. J.nLr·oduct .-Lon oF a new community college system, the signiftcant expans i on that has taken place at Memorial Universjty of Newfo1.1ndl.and, and thE! 1 :i. s t goc~s on. In fact, Min. SpeakE,r, c,~xpE!ndit.IJrt'!S on c;,ducat·i .on 'i. n t.h.is Pr·ovinCE! as a percE,ntagE' of both gross domestic product and personal income are the highest in No. l.2 1\6 3 1 ...

the nation. At the same time, we know that i.t c osts mor~ e ·in some par·t:s oF t.he Province to provide a basic E! ducat. i. on i" o s t.IJ dents . T h c,~ cos t.·. s vary for a number of reasons: popLil.r.ti:.ton dE!ns'i.t:y, school si.zE:~. transportation, special needs of s t u d e n t. s , 1~ o n a rn o a f e 1~.1. We a l s o know t.ha t thE!re arE! g re!at d"i.spar'i.t .·i.E!S among school boards -L n the amount of local tax assc,~ssment. s avai.labl.c-?. t.o t:hc,~m.

Recognizing this, Government recc,~ntl.y annoiJncc-?.d tt:s "Lnt.ent'i.on to undertakE!, this year, a full review of all :issues invol.ve:~d :.i.n funding elementary and secondary E!duca U.on . The goi:d :i s to ensure that our method of financing education is a ·fa:ir and equit .ablc-?. one, which provides school boards across the Province with sufficient revenues to meet the needs of their students. The pr·es(~nt system of funding provides somE! hE!lp for school boards that have low fi.scal capacity and hj.gh costs.

A school tax equal.tzatlon grant of $2 rrr.i.llion was introduced in 1986 and "i.ncr·eaSEH:l t.o $2. S mi l.l: i on i.n 1987 . I am pleased to announce that l: he Lr.~x eqLial . 'i.?.at ··ion gr·ant: will be increased by 80 percent to $4 . 5 m-i.l.l. ·i on ·i. n 1'. hE! f i. s c <:t 1 y c,~ a r 1988-89. Go v e rnrnE! nt i nte• nd s to place before t.hts Sc-?.ss 'i.on of the HoLIS<-?. o f A s s ern b 1 y a B i 11 t o a 111 E! n d t h e Schools Act, wh"i.ch wi.l.l remove the requirement that boards pay ten percent of the cost of school construction from local revenues .

This wi l l enable the denominational education councils to fund the full co s t of school construction project$ whE!rE! boards are unablE! to share a port:i.on of the cost. Also, Gove~nment will L.632 Mar·ch 29, 1988 Vol. XL .. . . ·· extend its commitment of $20 rn'i.l.l.:ion a YC'!ar For school construction into 1990- .. 91. Thi s multi-year comm-L tm6nt of $60 million will give the dc-?.norn'i. na+:. ·ional. HdiJCat . ion COijnc:i.l.s the flexibility to develop 1. o n g- hH' rn p l a n s f o r· s c h o o l. coristruction and will facilitate t.he ~endering process.

T.n order· 1-.o impr ·ove access to mathematics and science courSE!S in many riH'al. school.s in t.ht?. Provinc e , the Department of E d u c a t. J. o n IAri. ll. 1 Hl d (0! r t. a I((~ a p i 1 o t. project using Distance Education Technology. Beginning in September, 1988, student s in 13 s rnr.d.l s c h o o 1 s IAli ll. have a c co s s to the first of three courses in advanced mathematics. In subseqUE!nt YE!ars during the pLI.ot project phase, students will be able to take additional courses in advanced mathem~tics and physics.

This project, cosU.ng $233,900 in 1988-89, will better prepare students to pursue carE!E•rs in the s ci. e n t i f "i. c a n d t. c,~ c h n o 1 o g · i. c a l a r E! a s that are! vital to th E! fut.un! dc'!Vel.oprn<'!nt of our Pr·ov"i.nce. Gol;c,~rnrncO!nt ha s c o1nrni. !:: t: e d itself to a five-year plan to prov "i. de gwi. dan c e co1Jnsel.l.ors, school librarians, and additiona l. tc-?.achc;!r's for· srnal.l. schools.

FJft.y new teaching posjtions were dss:igned for that. pur·p os e t:h'is YE!ar, and I arn plE!C:'lsed to announCE! that an addit t onal. 50 position s are cornrnitted for 1988-89 at a cost of approximately $1.5 million. When fully implemented, the allocation of specialist pors annE! 1 to thE! s e po s i U .ons wt 11 enable school boards to gr e atl.y improve guidance and library servicc.;!s, and 1.o~li.ll also helg reduce class sizes by relea s ing regular teacher allocations now used in these positions for No. 12 R632

. . - assignment to classroom teaching . ThJs fiscal year· wilJ. seE! Uw c o n t. -L n 1 J at "i. o n of t h c,1 t rn p l E:1 rn c,1 n La 1:. ·i on of a Provincia} community colJ.egE! system that began tn September, 1987. During the:! fiscal ye:1ar·, Government will provide financial assistance through the Department of Career Development: and Advancc-:!d Studies for the introduction of a grant-in-aid system for the five new community college regions, totalltng $31.3 million.

In addition, $2 million has been approved for t.he acquisi.ti .on of equipment to update and repJ.ace outdated equipment for the var ·tous programs bEdng offE!red by thE! COITIIniJn"i. l·:y colleges. F u n d s 1~r i. l. J. a 1 ~: o be p r· o v i. cJ c,1 d 1-. o continue with the major construct. i.on proj e:1ci·.s that I.~HH'C:1 initiated this past year at var"i.o1Js Campusc;!s.

Th i. s i.nclud~~s capital funding in the amount of $4.2 mi.llton from Lhe Canada-Newfoundland Offshore Dc,weloprnent fund and $2.9 m'i.J.l.ton in Provincial funding with 1988-89 cash flow rt~qu-i . rc,1ment.s allocal~ed as fol1ows: L633 Avalon Community College Carbonear Campus $820,000 · Central Community Grand Falls Campus Lewisporte Campus GandE!r Campus Eastern Community Clarenville Campus Burin Campus College $874,000 $l,0'75,000 $530,000 College $1.,500,000 $1,600,000 Labrador Cormmm·i. l:y Collco!ge Happy Valley Campus $ 60,000 Various Community Colleges Ongo i ng Plannlng Costs $6SO,OOO Tht-:!

COrJVCH'S 'i.on to March 2 9, 19 8 8 Vol XL. ... ·· grant-in-aid funding system and i- he nE:~I!I f1i nc:l "'i ng bE:1 ·"i.ng p r·o v :id od t_o updatE! E!quiprnE!nt should enablE! t.i·H:• cornmun t t.y coJ.lt~gl~S l:.o bt-:!cornE:1 IAJE!].l established and fully operational o v e r t: h e n e x t. f t s c a l y e a r . I 6\ln pleaSE!d t:o indicatE! that AdvanCE!d S t u d i. e s f u n d :i. n g o v c~ r a 1 l 1.~.r:i. 11 s (! o a very significant incrE!ase of 20. J. percPnt to a tota1 of $2.?.1.5 million. Mr.

Speaker. in 1987-·87, $~.i mi11ion was approved for a new Private Sector Employment Initiative · Prbgram where GovernmE!nt propoSE!d to rm~tch funds prov··i.ded by· businesses tn thE! creation of new jobs. This ·i.n-Lttat· .··ive IAJRIS a l·_r'l>.rnendous success wj. t h funding pre f E! ,~en c e gi.Vtln to long 1--<'!r'rn r:1rnpl.oyrnl:1nt espE!CiaJ.ly wl·wrE! sornr:1 t:r·aining u..Jc~s provided. ~pproxtrnately 760 private companies received f1Jnd'i.ng, CY'E:H~(:"ing SOmC-:! 2,000 jobs at an average of 25 weeks duration E:1iHh.

Close t.o ~;oo of the~ jobs involved 52 ·weeks of work, whi1E! 5 '7 0 of t.: h e j o b s c r c:! a h~ d IAH:~ r e student positions. Bearing in m-i.nd that yo1Jth ·includE!S rnorl~ th;~n students, approxirnatE•ly 5~i pE!rcenL of the posi.tions filled were by young people in thE! agE! 91"oup of 18-25 years. Approximately 48 percent of the jobs were filled by female employees. rhe program was designed to stimulate economic actJ.vity and create r·eal job opportunities.

Government 1 s $5 million investment was matched doJ.lar for dollar with priuate sector funding, which essentially means that $10 million worth of employment activtty was generated. I arn happy to lnE!por·t t.hat. for· t:he 1988 --89 ftscal Yl~iH', $'7.5 m:i.J.lJ.on has been budgeted, a 50 p t:! r· c (~ n 1". i ncr t:1 "' s e o v ~H' 1. as 1::• y r:1 ;~ r . This program will also have a you 1-:h dnd s l-:1.1dc;!ni-·. cornpon~'!l'lt.. No. 12 R633

. - . Based upon last year 1 s statist-J.cs this initiative should create approximately 3,000 new jobs generating $15 million worth of empJ.oymc-!!nt act-i.v ··i ty. Mr . Speaker·, government views this program as t.he key ell':~rnent. -Ln our E!ffort.s to improve employment prospects for y or Jn g p e o p l. e , a n d a s ·i. g n "i. f ·i. c ~'I n t. contribution to the improving employment performance generally.

One;! of l::hc,~ most d"i.ffi .cul.t: probJ l':Hns facing young graduatE!S is f-i.ndi .ng 11 t:ha~ first: job 11 • Regardless of their level of for·mF.ll. educat. ion and t:r·a i.n"i.ng their lack of on-the-job exper·ience · i s frequently a major obstaclE!. Government invests consid~rable funds in post-secondary education in the Province. Our young people i.nvest many years and large amounts of money, frequently at a considerable sacrifice to both themselves and t.he-i.r families.

A number of them graduate with a heavy dE!I::~t to rE!pay, and s houl.d thE!Y be unablE! to find employmE!nt that ut.i.J.Jzc'ls thei.r· educat. ·ion and training, thE! fi.nand.al loss both p c'l r· s o n a l. 1. y a n cl t: o 1: h l':~ P r o v "i. n c C-'! "'i. s great. To complement the recently announcr:1d Fc'ldE!r·al. YorJ l:".h Employlii~Hlt. Program, I am pleased to announCE! that: $1 m'i.l.l.'i.on hds br:1c;!n b1.1dgc,1t:f~d for a nE!IAI Graduate Empl.oyment P r· o g r· a m .

T h e g o a 1 i. s t: o h:1 s t a model that will facilitate the C::Hlt.r·y of h""i.ghly C.;!ducai~c;!d yorJ"i:h and provide them wjth specific training and on-the-job or·te!ntation. This is aJ.so a wagE! s u b s J. d y p r· o g I" am I Ali. t: h IJ p t o 5 0 percent of the hourly rate of eligible employees reimbursed to the employer fbr up to 52 weeks to a maximum of $8,000 per position. L634 March 29, 1988 Vol XL - ; .. -, ~ . . . . .. .. All employers from both the public and privat~ sector are eligible to participate.

The $1. million program can be expected to provide employment for approximately 125 graduates. University, institute and cornrnrJn·i.ty co 'l.l.(;!gc;! graduates are eligible. · Although t.hE!rE! has bE!E!rJ a changc-:! O'i.n thE! numb(;!l" · of IAJornen entering some professions that were formerly male dom i nated, there is VE!ry little progrE!SS in technical and trades occupational. areas. The situation may bE! morE! d :i f f t CLI l. t. ""i. n Ul"i. s P r o v :ln c e , · d u e t. o our unemployment rate and fewer o p p o r t IJ n i t. ·i. e s f o r· "i. n d u s t r i a 1 jobs.

WornE!n continUE! to work pr·i.mar· .. i.l)i ·i.n cl.(:1r"i.cal, sa1E!S r:~nd SE!rViCE! jobs, which ar'E! usual1y clt t: he 1 orA.Je s t (;! nd of 1:: he. sa 1 a r y scale. In order to improve the economic prospects of women, special efforts wi11 have to be made to '"'':iden Uwir range of career choices and improve their access to areas of , ... ,or·k i:.hat havE! been traditionally male-dominated. I am pleaSE!d to announcE! that. an amorJnt. of $500,000 has been budgeted for an empl.oyment. program <ri.mc;!d at. ocCI.Ipat-Lonal ""i.nl:egr·at.ion for women.

This wagE! subs:l .dy p r o g r· a Ill IAI i. ll p r· o ~ri. d c.;! ~> 0 p <·>.r' c E! n t of the sl:arting salar·y up to a 1nax-i.rnwn of $8,000 plO!r job for· a maximum of 52 IJ.JeE!ks. This funding wi.ll prov i de employment for approximately 60 women in occupat i ons dom"'i.nat.ed by males. The newly creab:!(:J DJ.v:isi.on of Career Support Services of the Department of Career Devel.opment and Advanced Studies will phase in a niJrnber of SE!rv:·i ces and programs in the coming year designed to assist. t:he prJbJ.:i.c IAd.

Lh care1?.r planning, wi t.h a viE!W towards increasing the participation rate No. 12 R634 ..

·i.n pos 1:-·seconcl;u·y (:1ducat.:i on . A provision of ~pproximately $1.9 million for the Career Awards Progr·arn, f1Jnd(:1d fr·om l.:he Canada-Newfoundland Offshore DE:1Vf:1l.opJTHo1nt Fund, IAJ'i.J.l. cont-i.n11e providing financial assistance to uni.versi .ty undergraduat:e:1s and students enrolled in two and three year diploma programs in applied arts and technology. Funds will also be available for the support of graduate fellowships. The underl.ying basis for atuards under the Career Development Awards Program · is the developm<-:1nt of excellence among students and faculty i.n the post-secondary sector.

The program is prE!dicatE!d on !::he " i . rnpor·tancc~ of :i.nvest- : i.ng ·in .our people, especially our y6uth. Tn additi.on to ~11 these programs, Mr. Speaker, Government has made prov-i.s·i on -Ln UH:1 Budgei: for the fol.loiAring capi .taJ. projects in the field of education:. L635 An amount of $4.6 million has been alloc~ted to complE:'tE! construction of thE! netAJ $7 mill 'i. on f ·'i.ne A1ni~s Facility at the Sir· Wilfre!d Grenfel1 Col.l.ege tn Corner Brook.

An amount of $15 million has been provided for the continued construction of the centre for Earth Resources Research at r4emot~ial Universi t:y 1n ~;t. John 1 s, which is estimated to cost $25 million. F1md:lng of $2 mi.J.J.··'i.on has bE!en allocate!d for the cornple 1:: 'Lon of const.rllCt. "i. on of thE! CentrE! for REHnotE! Me d i. c -L n (o1 a n d T e 1. c;! rn c,1 d ·i. c "i. n E:! cl '!'. Me~orial University. Mar·ch 29, 1968 Vol XL ·.

Health An alloc~i: i.on of $3 has been provided 1ni.ll ion for the cons t r u c i':. i. on of a $5 mJ.ll. ·ton Survival CE!ntrE! at l:hE• Tnst."i.l:11te of F·i.shor' "i. es and MarJ.ne Technology. An am~unt of $3.9 million has been all.ocated for the construction of a $12 mi 11 ion S"i.mu la tor Tr·ain :i ng Centre relative to ship handJ.ing and balJ.ast control operations, also at the Institute of Fisheries and Marine Technoiogy.

Funding of $2.5 rn:i.J.lion has been provtded for projects directly reJ.ated to pet:rol.E:!I.IlTI I~Pchnol.oqy training at the Cabot Tnsl':.-'i.tlli'E! of · Appl.:i.(H~ Arts and Technology. Mr. Speaker, Government c o n 1: i. n u c;! 5 t o p 1. a c c,1 a h "i. g h p r· i. o J" i t. y on the development and maintenance of a comprc'!hens"i VH rHd.:t~JOJ"k of hE!alth care seJ~viCE!S to TnE!E!t thE! health care needs of the people of our ProvinCE!. We recognize the implications for heal.th care services of the aging population .

WhilE! our goaJ. is to keep people in their own homes and cornmunitiE!S as long as possibJ.e, it is recognized that at some point they may require instJtutional care. RecognJ .Z:J.ng this reality, GovernmE!nt continues to expand the number of nursing . home bE!ds available in thE! P r' o v t n c e . P r e s e n t 1 y , t i·11;~ r e a r e oVE!r 200 addiU .onal nursing homE! b c,1 d s i. n v a r· i. o u s 5 t a g e s o f construction in the Province. Government: expects to be in a position shortly to authorize a 110-.. · bf~d c,1xpans -ion t:o · !':. hE~ l .. "i.censc,,d No. 12 R635

Boarding Home Program within the Province. Under this program funding is provided for the support of rE!SidE!nts in homes construct~~ d and rna nag(,' d by p r· ·i. vat e operators. Funding will also be provided thi.s year to enhance our community-based services. As well, a comprehens'i.ve con-t.i.nu"i.ng care plan will be developed by the Department of Health. All these measures are aimed at strengt.hen"i.ng sc.;!r·v·ices 1-o our senior d .tizens and other citizens IAJ h o r e q '~ i_ r· e HH~! s ('! s C.;! r v ·i. c l:' s_ .

To t. a J. funding for senior citizens' · i n s t i L1 J t: 'i. o n s a n d r· (-?. 1 i.'l 1.: (:H~ expendi t.ure s wi11 i n·c t'ea s e by 10. 6 percent overall to $78 . 7 million . S -i. ncc,~ opt:orn~~l:I"Y cover·ag~~ I)Jds introduced in 1981, many NewfoundlandE!rs havc-:1 availed of this service to the point where the service will. now be insured once every two years instead of once per year. This frequency certainly provides for reasonable coverage, given the- demands l~hat exjst for a variety of health care servi.ces.

In order to provide For treatment of individuals with alcohol. or· dln1Jg-rc~1ated pr·obh!l·ns within the Province, this year's B u d g e t tJ..Ji l. l p r o v ·i. d e a n a d cH t:-i. o n a J. $300,000 in funding to the A1coho1 and Drug Dependency Cormn-i.ss·i on to initiate a comprehensive program i n co - operation wi th the Wes~ern Memorial Regional Hospital in Corner Brook. In 1988-89 Government will spc:Hld ove:1r $11 m"i.ll."i.on on var-i.ous capital works projects throughout the Province to ensure that the ProvinCE! has a good and well rni~intai.nc'!d n(.;!tiAJOink of h~~alt.h car·e. facilities.

The new Clarenville Hospi.l:.al ·i s completed and continues to phase in operations L636 March 29, 1988 Vol XL wh "i. le t.he. ne1JJ hospital at Salt Pond on thE! Burin PE!njnsula tAd11 commence t.he phase-in of opE!raU .ons thJs YE!cH'. Funding of $5. 1 rn:i.lli.on has b(H!I'l pr·ov :i . d(~ d ·to virtually complete the major redevelopment of the Central Newfoundland Regional Health Care Centr·e "i.n Grand Falls at. a total cost of $20.9 million.

As tJ..JeJ.1, an amo1Jr1l~ of $500,000 has bE!t~n allocated to start construction of the Rodd'i.ckton Health Centre at an estimated cost of $1.6 milJ.ion and $ 1 . 9 rrri. l 1 i o n h a s b E'! r::Hl a l. l. o c a b :!CJ t o complete the Chronic Care/Cli.nic Facili.ty at Botwood. In add--i.t ·ion, fund ·i.ng has bE:!en provided for smaller projects at var· ·i ous i.nst:. "i. t:IJt·i ons al"ound l::h'?. Province . Amounts of $200,000 each have be c:Hl pr·ovtded for fir'?. and lifE! safE!ty upgrading at thE! Curtis Hospital in St. Anthony, the Leonard A. Miller Centre in St .

John's and the Health Sci~'ncr::~s Centre. An amount. of $200,000 hc:1s been provided for upgrading of heating/ventilation and life safl'd·.y systems at the S:i.r ThollJC1S Roddick Hospital in Stephenville. The James Paton Memod .al Hospital in Gander will receive $150,000 to connect to thl-:'! rnun-:i.c:.i.pa1 sr:?I~Jer system. I am also pleased to anriounce that $65,000 has b~H~n a11ocated towards t.hE! cost of lifE! safel--y 1.1pgr·a(hng of the detoxification center in Talbot HOI.IS(~ i n St. John's. Social Services Mr .

SpeakE!r, I arn pleaSE!d t:o ij\nnounce that.: No . 12 Prov·is "i. on has been made tn the Budget of the Department o f So c -.i. a '1. S ~~ r· v ::i. c ~=! s f o r· a f o u r p·E! r c e n t i n c r E! a s E! j_ n a 11 components of the Soc i al Assistance rates eff'E!c't.jVE! R636

very May 1, 1988. Provision is "11 so rnadf:1 for· a fotH' percf'!l'lt. incrEH:lSE:1 for Fos·l:E!r HornE! and Ch i ld Welf~ra AllowRnces to take effect Aplnil 1, 1988, With thE! -.int.roducUon of thE! f(-:ldt'!ral Yotmg Offender's Ac 1:: and the Provincial Young Persons Offenses Act sever·al YE!ars ago, the DepartrnE!nt of Social Services has recognized the need for a new secure custody facility designed to _ accommodate young offenders under the ag·e of 18 years.

A detailed fad.lity · planning process has been ongoing regarding size, composition, design characteristics, programs and philosophy of the new securE:1 custody syst"Hn. Th"i.s system will provide (;!ffect.:i.ve safet.y and security for residents and s t:aff tAJ ·i l::h adeqtm t.e opportunities for rehabili~ation and self-development mimed Rt f~cilitating future law abi.d i.ng behavi .otH' and adequate social adjustment. I am extremely pleased to announce that $3.5 million has been allocated for t:he first phase in the consi::ruction of a major secure custody facility. Mr.

SpE!akE!r, Govern mE! nt is conscious of our unemployment rate especially when compared to other provinces . We have continUE!d to place the highest of emphas:is on the development of our resource potential yet we still have many unemployed NewfoundlandE!rs. A f E!lAJ introduCE!d DeveJ.oprnent years ago, "1.: he,~ Program 1..637 March 29, 1.9BB .. GoVE!rniTIE!nt Cornmun"i.t.y which was Vol X I.. designed to employ many N(:1t~Jf o 1.111d l.A nd C! r· s 1~1ho t~Jo u 1 d othE!Y'tAJ:.LSE! bE! OUt: of WOt"k. WE! have f o L! n d 1·. h i s pI" o g r' ;:-1 rn 1·. o b ('! E! x 1:-. r' ~~ rn E!

J y successful and I am pleased to announce~ t:hat fund .. inq of :f; 32 miJ.J.ion is providE!d in t:he BudgE•t for· t.l·d s p u r p o s e i. n t: he nE! x t fiscal year. In addition, $3.3 m"i. 11. i.on -L s to be-?. pr·ov j ded tJ nd "~r the Federal-ProvjnciaJ. EmpJ.oyrnent. Enhancement Program. ThE!se programs are expected to provide 13,ooo · 14,000 short term jobs. Municipal Affairs In 1988 this Province is celebrating the lOOth Anniversary o f t h E! e s t a b 1 i s h 111 E! n t o f rn u n :L c :L p c:d government in Newfoundland and Labrador . The first ~ocal Gov(~rnrn~~nt.

Act tAJas passE!d on May 9th, 1888, whereby thE! Cjt.y of St.. John 1 s became the first full flE!dgE!d municipali t.y in th:i s Pr·ov"inc:e. Government beljevE!S th:is E!VE!nt is of stJch s :.i.gn -i.ficanco 'i. n thE! history of mun:icipal gove•rnrn(!nt: thRt a s i x- month per i od of municipal celebrations will take ple1Cl'! star·t -i. ng on May 9l:h, 1.988 and con c 1 u ding tAJ:i. t. h Uw Ann u a 1 Meet"i.ng of the Federation of Municipalities in October on Thanksg"i.v i.ng wec~kend.

Th.is has rE!SUltE!d in funding bed.ng pr·ovi.d(:~d, when th~?. municip,'9-l cont.ribuU.on is incJ.udE!d, of $750,000 to cover more than 1.50 projects throughout the to celebrate this miJ.estone. Pro•J:i .ncE! historic ThE~ purpoSE! of the celebrations, known as So'il"ec~ 1 88, is to develop pridE! in SE!lnviCE! to one 1 s community by encouraging P<'Wple t.o stand for locc:-lJ. government office, to create specific activities jn these No . 1 2 R63'7

communities which would improve their visitor enhancement image, and to E!ncouragE! former re!sident.s of this ProvinCE! to come back and visit thed.r own honw towns during the official celebrations. I am confidE!nt that Soiree '88 will be extremely beneficial t.o a1l aroas of the Province and will increase tourism thro1Jghout NeiAJfoun~land ·i.n 1988. Government will continUE! to assi .st municipalities to provide water and sever services, -and to construct. r'lnd peWP. roads.

Dur·'i.ng the coming fiscal year, a further $~5 million will. be made aval1Rble through guaranteed loans to c-?. nc1blc,, lnurJic 'i. pal."i.ties 1". 0 c->.xpand theSE! SE!rViCE!S :in highJ.y critical iH'ect s . De t-.r.\ i.l. s of Uw prog r'aln IMill ' bE! released in dUE! cou ·rsE! by my CoJ.lc,~agtJe, the M·i.rdst.c·H' of Municipal Affairs.

Additional Cap i tal expenditures For 1988-aq were allocated for municipalities totaJ.ling $22 . 9 million inclusive of: L638 - water and sewer/road construction and paving dE!bt principal payments ($16.3 miJ.lton); - tAJater· and sewe1" serv:icing Coastal Peoples' million); l.abrador Native Agreemc,mt ( $2.6 commun l ~y water s erv i. c E!S ($800,000); - waste management facilities ($4./1.5,000); - i.ndus+ :r' ·ial IAJi:ll· (>.r' supply systems ($569,600); St.

John's regional water t:1 n d s et.~JE! r· s C·H' v ·i c i n g ($59~..i.OOO); and Mar· c h 2 9 , 1 9 8 8 Vol XL firefighting ( $ '7 7 5. 000) ' Gov€~rnrnent. will con ·U nue to support and encourage municipalities throughout the Province to takE! advantagE! of thE! Government. of Canada's cost --sharE!d program of Joint Emergency Preparedness and will provide $350,000 in interim funding to municipalities pending receipt of the Federal contribution of an approved proj E!Ct.

Tlri.s IAJi.ll permit more municipalities to p1~rchas~~ f~qu :iprrHoHlt and rnatel"ial.s under the · program which ~il.l u 1. t: i rnc1 l: C.:! 1 y I:H-'! f 1.1l.l. y c ost ···· s h a r· c;! d by the Government of Canada and M 1.1 n i. c i p a J. Go t J c->.r' nrn fHl I· s . Government conti.nues to bo E!ncouraged by thE! rE!SponSE ! of lnt~n-:i . c"i.palit · i.es l:o the implE!mentaU.on of propE!rty tax clS a means of increas i ng local revenues .

Accordingly, in order that the imposition of property taxes may bE! expE!ditE!d, GoVE!rnment tAd.ll again incr·ease Lhe nurnbE!r of real property asSE!Ssors that w:i1.1 be made available to carry out municipal assessmE!nt: .s Ud.s t:i.rrw fr·om 49 to 59. Thi.s IAJi 1. 1 rE!di.ICE! considE!rabJ.y thE! wcd.U.ng pod.od now being experienced by municipaJ.ities in comme•ncing t.hE•ir property assessment programs.

Justice The 1987 Budget Speech i.nd.i c:a l·.f=!d Gouc,~r·rnnc'!l'li : ' s -Ln l:.c;!n t.:.i.on to develop a more effective rnHchan -i. srn for· i:hE! c:ollc->.ction of court-ordered majntenance paynlt-!!n+:s, and cornrn·i.tt:E!d approximately $50,000, s 1.1 pp 1. erne,~ n l·.c,'d t. hr·oug h F E!d e I" a 1 funding, to underwrite the costs dSSOC i. al:.(;!d IAJi.l:-.h +:hE:~ rlE!CE!SSal~y research and feasib:i.J.ity assf~ssrnc,Hlt.. The pr·c,~lJm:i.nar·y work No. 12 R638 .. -:,-' .;: . ....,

ts now c:ornpl.,,~b~d and GOV(·:H'nrn(;!n·l:. ·Ln this Session will be introducing fanri l.y 1 alAI am~HH~HI~<HJi ".S, i.ncl.ucl i.ng provisions for the establishment of a Province-wide autom~lic MaintenanCE! EnforcEHnent Program. Th(:~ Mr.l"i.nt:f~~li'll'lC(c1 Enforc:on1r.:!n'i:: Program will provide for improved c o l. 1. e c t i o n r· (-:'!

IIH:~ d ·i. e s a n d r '"' 1. a 1-. ~-:HJ penalties where there is an a b 'i 1. i. l: y t.: o p a y . corn p l erne n b~ d b y Federal funding for systems development, Government plans i·:o commit approximately $325,000 for the establishment of Ul"i.s progr·arn to ensure that ben~ficiaries of farn"i.ly support. orders reC(-:'!i.Ve the economic support to which they are l::'l1t.itled. Government has approv(~ d an E!XpE!nditure of $1.6 miJ.lion to const.r•IJct a new Unif:i.ed Family Court in St. John 1 s.

This new faci.l.:ity IAJi.ll replace i:.he or·i . gtne~l Unified Family Court which was destroyed by f ·ir·e "i. n AIJgusL, 1986. Also, funding is provided For i:.he operat i on of a Regional Fire Commissioner 1 s Office in ConH~r Brook. T~d s off "i ce, IAJh Lch will be staffed by a Fire P r o 1·. (:~ c I·· i on S u p ~<H' v i s o r· iHl d a F i. r· e T(-:'!chnician, wi11 SE!rVE! thE! western reg i on of the Provi.nce. Sports and Recreation Mr.

Spr-:!al«-:'!r, T. hi'\V(:~ 1 ong b~<:!en a belieVE!r that rE!CrE!ation and s p o r t.: a r e c r t t·. i. c a l. t o I'.JH'! deve1opment of a healthy and productive soci.et.y . T.n addtU.on, spori:smanl:i .ke cornpE!tition builds strength of character and pride in oneself and one 1 s community: I tal<e gr·eat personal pride in the fact that the Town, and soon to become C:i ty, of Mo1mt Pearl IAd.ll this August host the 1988 NeiAJfoundland and Labrador· SIJII'IInc;!r Games.

I take even grE!ater pride in the fact t.:hat for the first 1.6:!9 Mar·ch 29, 1988 Vol XL. t"i,m(->. ··in 1:-.hE! 11 i.stoi"Y of th ·i. s Pt~ovinCt:! i.hE!Se GamE!S w:Ll1 bE! ft~lJ.y i ntegrated in ~hat t hey wjJJ. providE! E!qual opportuno:i .t:.LE•s fo1 " p c-:1 l" s ons t•J i. l: h ph y s ·i c a 1 d :i s a b :i l ::i. t. ·:i. <'' s to compete.

I invite everyone who -i.s l t stc,~ning t.odi'IY l"o shai"C;! t n l:: h(.;o experience of these Games which 1~J:i. l. l b r· i. n g y o 1.1 n g p r.w p 1 '~ , a n d t. h ~d r families, from all over Newfolwdl.and and Li'lbrador· 11 al.l togE!ther 11 in a spirit of fr:i.E!ndly cornpet .. i.t."ion, IAJh.:i.le at t.:he sarne time E!njoy:i.ng thE! high standard of hospitality for which the people of Mount Pearl are renowned .

Government 1 s recreational programs are very comprehensive and I would lJ.kE! to JJ.st. a f e w aspc->.c+.:s that a rt:! pe ri: t n E! nl:: t.o i:: hl:• new fisca1 yE!ar : No. 12 The Regional Recreation Faciltties Program is a major new program designed t.o encourage cormnunit.ies of the Province to jointly bLI-i.ld and oper'r'\t(;! major recreation fac:il:ities. A · Ft : ~~r· ·i 1·.s announcernE!nl~ o:in mid- ·DE!cernbE!r by thE! M:in:ls I:E!r of C u J.

I" 1.1 r· c->. , R ~ ' ! c r· ,,, ;:q i:: i. o n a n d Youth, thE! ini t :iaJ. rE!SpOil SE! was very encouraging and applicat i ons aro pr'E!SE!nt.Jy IJnder r(-:'! V'i. PIAJ by t.hc-:'! st.afF of the department . Several h ·i g h p r· .i o r i. 1-. y p r· o j E! c 1:: s lAd ll shortJ.y bE! announCE!d and fo1n ol·.hers, det:.a::i.l.E!cl fE~asJ.bil:ity stud:i.es, where rE!qu:i.rE !d, I Ali 1. 1. be c r:u· r :i e d o u t j o i n t 1 y by the munic:i.palities involved and the DepartmE!nt.

Fund:i.ng of $1.7 rniJ.l.ion 1Ad.l1 be comrni.tted towards the construction of s everal new reg i onal rE!Creat:i.on fac:i .J.:i.t.iE!S this y ,,~ar. The very S IJCCl~ S s fuJ. R639

.. A r· <·Hl r.1. I Po o 1 R E! 1: r o f "i. t. P r· o g r· a rn IAL.i. 11 c o n t :i. n u E! t h i s y E! a r a n d f ·"i_ V e rH~IAI fa C i.l. .-i r. :.l H S IAJ"·i.l. l. b ~~ provided with funding to a s s :i s t. lAd t h t-. h ~~ f.Hl h a n c e me n t. of their energy efficjency. The Department of Culture, R e c rea t ion and You t h wi 11 initiab:~ a Pt.armiqan Habi.t.at Enhancement Program with funding assistance from Wildlife Habitat Canada, a na t.·i.onal. f<wnclat""i.on dedicated to E!ncouraging thE! ret.ent"'i.on and enhanc~:~rnen 1·: of wildlife habitats.

This project, using controlled bJJr·n ·i ng and pc->.r'hdps o"i":hl"!r' techniques, will hopefully i.ncr·<,~aSE! p+:.ar·rni.gan nuJnbE!r's. Housing Mr. SpE:~al<er, the Gover·nrnE!nt. has approved gross expenditures of $164.9 m""i.l.lion for the Newfoundland and Labrador Housing Corporation Ln 1988-89.

Highlights of the Corporation 1 s program are as Follows: 1_640 A significant component of the activity of the Corporation in the 1988-89 fiscal year will be delivery of an E!St.:irnated 390 neJAJ social housing units throughout the Province to low incomE! families, SE!n:ior c-lt:izens and cl.ic,~nt:s , ... ,-i.t:h speci.al ne!eds. In addition, the Corporat"'i.on will. spend approximately $15.5 million in Federal-Provinc"'i.al cost-shared housing repair f u n d s .

T h ~'! s e ~~ x p e rHh 1".: 1.1 r· f~ s I.UiJ.J be dirE!CtE!d to l.lpgr'i'ld i.ng SOHIH 1, 900 residenliaJ units that are occupiE!d by lotlJ J.ncornf'! horneoJAJnCiH'S and t.E:~nants in bol:h ur·ban r~nd rur·al. arc,~as. March 29, 1988 Vol XL.. Tn ~ecogn1t:ion of the h"'i.gh heating costs being e x p <->. r· :i <Hl U!CJ by 1 o 1.1.1 i. n c orne farnili.E!S and SE!nior·s J.jvjng t n the Cor•por·at .:i.on 1 s social housing units, I cllll pleased to announce~ l::ha t t:ht':! liE!atJng Allowance Progr·arn has bet'!n further enrichE!d to t.'l. t.ota1 budget of $4.3 mi1lion.

This re!prE!SE!nts thE! finaJ. phase of a three ·-yE:!ar phased program such that a mc~xirnum subs""i.cly IAJ·i ll be ava· .i.lable t.o eligible households jn J.988···-8Cl. Also $6.5 million has been a 1 l. o c d !··. f~ d f o r· 1:: h c;, s t. ;~ I" t o i· dE!VeloprnE!nt. of cln E!Sttrna ·U·d ?.SO l"~'!S -i. dE!rl · l:. ""i.6tl. bu:iJ.d ·ing Jots for Mount PE!clrl. ancl Cot~JiHl 1-lc->.:ighl-s. ·An i:WIOIHlt of $1.9 million wi11 be spent on l::hn ongo ·i ng pl.ann:ing and servicing relating to a num~H:~r of :i.ndust:r· -L al. parks in various art=!aS of the Province.

F·Lnall.y, an estimated $8 million has been committed for the renovation of lhe Cor·por·ati.on 1 s r'C'!nt.al unit.s across the ProvinCE! as part of a cont.iniH~d upgrading and modernization program. I anticipate that the residential construction sector wiJ.l continue :i t:s hE!althy perfor·mance t.hts year, as -.Lt. has over the past two YE!cH'S.

Dur:ing 1986 and 1913'7 th~H'(,~ lmcH'(,~ 2,700 and 2,800 housing starts, r· c-'! s ~)(,~ c 1:. ·i. v <-'! 1 y . r h c->. c o n t -i. rw a t i. o n o F low mortgage interest rates and h-i.gh const .ITTifH' confi.dr'!ncr-'! should produce the positive climate r· e q 1.1 i r· f'! d L o E~ n c o u r· a g c,~ h o ITI e Oi.I.JnE!rshi.p and providE! a boost: to the'! r·c,~stdf'!l'li:."i.al const.J"uction industry j~ the Province. No. 12 R640

RESOURCE DEVELOPMENT Mr. Spc,~akc·:H', I hi:'IVC'! ou tl.i.ned sorne of thE• major sociaJ. programs e1nd projc;!ci:.s +:.hat Govc;!rnrn~!!nt.: has provided in the Budget for the new f -j s c a l y <-:! a r· . A s i 1n p o r I: a n 1:·. i31 s t h r:! y are. Government must continue to place ever- i ncreas i ng emphas i s on the development of the resource sc-:!ct:or of our· Prov .. i.nc;f~.

W.il:.hou ·l·: a strong economic and financial f o u n d a ~- i o n , ,_,, e ,_,, i l. l no 1: be a b l. f'! to fund the many demands for existing and netJ.J publ. ·ic ser·v "i. c:es t~Jh "L ch ot.tr' people want and should haVE!. Of e q u a 1 -i. m p o r t a n c c;! , tAle m u s t c o n 1: i n u e to striVE! for· that formula in our economy tAJh·i c h tArill y'i.eld rnot"e jobs. enough jobs so that ~ll Newfoundlanders will have the opportunity to obtain employm~nt and tAJ:ith it, economic security r:-lnd self-fulfillment.

ThE! so1ution to the VE!Xing problem of unemployrnHnt. is no ·t easy and our Province is not alone in wrest.:l.'ing tAli. th this phenomenon IAJhich exists on eVE!ry c6nUnent •. and ·i.n many countr· 'i. es ~o a ln l.tch greatE!r E!Xtent !:han hE!rE! at horne . Thc,~ PC:~ckford Ac:lrrri n .. i s l·.:r'di-t on has compi1ed a rE! COrd of job crE!ation over· 1-:he li:~s t n i. ne yr~~~I"S IAJhic:h refects the importance this Govc-H·nnH;!n'l': ai .t.dchf'!S t:o -i ~- . However, much more needs to be done->. . Much IIIOr'c'!

IAI"i.ll ~H:! done-:! and this Budget contains a comprehens i ve a nd varied progr a m for resource development. Mr. Spc.:,akc-:!r, I t.•Joul.d notAl 1 "i. kc->. to outlinE! some of the major funding :i.n'i.t:iat."i.ves in the area of resource development proposed for the coming year. Fisheries For the pas!: fishing industry s e v era 1 year· s has bE!E!n OnE! th e of 1.641 Mar· c h 2 9 , 1 9 8 8 Vol.

XL the most vibrant sectors of the Province 1 s economy, with the landed and export value of ~cafood products reachjng record levels. ·rhHr'c-:! ·is l. 'i.t:t:lr:! clotJbt t:hat tho industry js now characterized by g r f:~"' 1 ... c->. r· f.! rn p J. o y tn c;! n 1:. s 1':. a b i 1 i t.y i'< n d that the rural econom~ of our Province has benefitted immeasurably from a revitalized fisheries sector. This revitalization is reflected by -i.ncr(:~as~:!d inVE!StTnE!nt pr•"i.tJa+·c;! wi thi.n thE! SEi!CI:or harVE!Sting and pr·ocess i.ng sector·s of the industry.

Government 1 s ongoing cotnrn"i.tmc;!ni.. t.o t.h i. s c ri ti. c ally important r E! sourcE! s E! c tor w:i.11 bE! r·ef1c~cl:ed :i.n increasc;d E!XpE:!nditure activity in a number of areas. Gross expenditures for the DepartmE!nt of FjshE~dE!S in thE! coming year wi11 be $41.3 miJ.lion.

In addition, pt"ograrn "i.nitiatives relating to the harvesting and processing technology, market development, aquaculture and on s horE! -L n f Y' a S t: Y' U C I ~ \H' (:~ IAJi. l. l b E'! (:' X p a n cJ (;! cJ , pat"ticularly 1.1dthin thE! contE!Xt of i" h (,~ r· t'! c E~ n t: l. y s "i g nod $6 0 tn ol l t :i on Inshore Fisheries Deve1oprnent ~greernenl':. This five-year Federal-Provincial agreement wil1 b H d (;! d 'i. c <:l 1·.

E:! d t o s 1 ... r· E~ n g t h l'! n i n q t: h ('! inshore! fishery and rept"E!SE!nts thE! lar•gt~st: cost :-shat"C'!d COIIlln:i Lm(:!nl negotiated to date for this sector of thC:~ fi s h"i.ng "i. ndus l:ry . Over the! past YE!ar GoVE!Y'nrrtE!nt h a s d i r· c"~ c 1-·. c-'! d s p e c i. a l a I ~ t (~ n ·1:. i. o n t o the needs of inshore fishermen and has examined a number oP rE!St.ructuring options t.o further· strengthen Lha inshore sector. Government is now addt"ess:i.ng a debt restructuring option for inshore fishermen and an announcement on ~hi s special iniU .ative wiJ.l bE! madE• shortly. No . l?.

R64-1

Government's decision to pi'lr'l".:"LC i.pi'ltt;! i.n t:hc;! Y'l'!S l::ri.ICi-.I.IY' "i.ng of the deep sea fishery contr·ibul:ed grE!at:l .y l:o t.he:~ revitalization of the offshore fishery and we are equally confident that debt restructuring ini tiat:i.ves IAd.ll furthc'!r strengthen the inshore fishery.

Capital ·funding of million has bE!en provided $2.7 ·For at. the of fishermen's facilities/services various locations across Province with funding for sornE! lhe major projects allocated a "' ·' follows: Marine Service Centres Jackson's Arm $?00,000 Admirals Beach $150,000 Funding of $8/l-0, 300 has b~HHl allocated for various f i. s h <'! rme n ' s fa C"i.l. it · i . e:~ s ; $250,000 for fisheries access roads; $100,000 For extension of electrical services; and $350,000 for various communi. ty pr·oj ect.s in order to assist in obtaining Federal funding under progr·arns such as Canada Works. Mr.

Speaker, in total, fisheri~s facilities/services expenditures will bE! increasE!d by a sizeable 34.8 percent to $15 million. At thE! samE! timE! fisheries :industries support services will be allocated $6.2 million representing ~ 63.? percent increase. In addition, f"i.shc"!r··ic-?.s loans and ass·lst.ancc,~. d:ir·ect funding, will climb to $16 m i. l. 1 i_ o n , a n "i. n c r· E! a s f~ o f IJ. q . S pr::1rCE!nt.

This clE!ar1y shows thE! co rnrrl"i t 111e n t of t lri s Go v c,H' nrne:Hll: 1·: o L642 March 29, 1988- Uol XL thE! industry that has thE! gr(;!a'l:E!St s o c i. a l a n cf c u l 1-: u r· ;~ J. :imp a c t o n o u r sociE!ty. I n 1 9 8 8 - 8 9 t h e F :i s h E! rj_ E! s L o a n Boar·d "I.!> for·ecast."i.ng that i.t lAJ:i.ll support tn exc~!SS of $30 ndJlJ.on invc'!st.rnc,~nt in rH:1W i"tnd rebu-.i.ll: fishing boats and equipment for over 1, 000 Fi.sherme .n.

Under the $50,000-and-un~er direct loan program, close to $10 rnil.J.:ion IAJill be provided to a further 1,000 applicants :in direct loan and bounty funding for small boats and eqtri.pment., . As weJ.J., thE! Bank Loan Guarantee Program is expected to generate an investment of over $20 rrdll -ion For· clo~;c,, Lo 4-0 ni:'!IAJ and rE!built largE!r VE!SSE!ls. ThE! Boc.u·d IAJ -:i.l 1 p r· o v -i. d r'! d -i. r· H c l: b o 1 ~ n I: y !> u p p o r· 1:. to th:is program and subsidiZE! .i. n t: e t' E! s l: c o s t. o n 1··. h c,1 ;;1 p p l" o v ('! c/ loans to a ratE! of three percE!nt I:H~ 1 OIAJ p r i rn~-?. .

T h t,~ l. e v C"! 1 err"' activity and support For this program IAri.ll 'illllrlC·HlSr:~l.y benr~f :it not only the fisherman but wi11 give a major boost lo OilY' economy. Rural, Agricultural and Northern Development Mr. Speaker, Government continues to place high emphasis on the development of our rural economy. Governmenl:. is p1easr::~d by the economic activity which has b~~en crc~atc.;!d by the expans:i.on of thE! Rural DeVE!lopmE!nt Authority IncN1tJ.ve Loans Pr·ograrn to provide assistance to service sector firms tn our Provtncc"!.

Mor·e l: han J.SO servtce sector firms have been ass ·i s l·:(~d cr'(:1at·.-Lng drl es 1-.: ·i rna I· eel 234- neu.J jobs through this in :i.tiat:iVE!. T h ·i s >i. s c o n s :i s t ~~ n t IAI"i. I: h o u l" p o l. j c y of revitalized support to ~?. n 1:. r <"! p r· ('! n E?. u r· s h ·i. p a n cl s rna 11 business development in our Pr·ovincr~. Tn 198H .. - 89 WH 11ri.ll. be No. 1·2 R64-2

providing $6.5 million to l:: he Rural Development Authority to continue our suppor·t to dll s1nall. business sectors in thE~ ProvincE~. Tol-.al all.ocati.ons for· rtJr·a1 development programs will be i n c r ~~a s '"' d by l 1 . 5 p e r c (.;! n t IAI·Ll: h $14.6 million earmarked for this year. The · agri. CIJl.turl,~ lndLISi"r'y plmys a sjgnificant role in the economy of rural Newfound1ancl. T.n l9B7, farm cash receipts for the Pr·ov i.nce are:~ e,~s 1:. i.malHd at $'1·7 . S million, an increase of 3.5 percl;int fr·o1n l::he,~ prevtotis y~~iH' compared to 2.3 percent for Canada.

The;! 1. -i.vest.:ock ancl poul.l:r-y sector accounts for more than 85 perc(.;!n ·l: of Hds total.. Wh i.l e"' t:h:is se,ctor has experience'd significant growth over the past decade, a major factor affecting these producers is the cost of imported feed. To help alleviate this prob1ern, the.:! Province and t.he Government of Canada signed a Ca nada-NEHAJf ou nd1 and SIJ bs id-La ry Agree,mr::,nt on a Livestock FeG!d Intt-Lati.ve a l·it:l'.le over· one,~ year ago.

The objective of the AgrC:1erriC.:!nt -Ls l:o promote t·.h<::~ gr'OIAJUl of a viable agri-food industry by -i. nc rr,~a sing I· hE! q1Jan 1:: i l:.y and qua1ity of livestock feE!d produced i.n Lhe.:! Pr·ov·i.ncc,~. rhc'' Agr't.;!f~liiC'!tli: extends to 1991 and earmarks $4.8 rrri. ll. -i. o n o v e r· 1.: h e f o u r y H cH' s .

Wh:ile thE' overa11 be,ne,fi ts of an i'l g r· f'' e rrH"' n .,.. o f 1:: h ·i. s n a t. 1 J r e c a n n o 1... b e feJ t. after only one YEH:lr, undoubtedly !.:he assistance provided farmers for 1and -i.mprovc.:!m(:Hlt and so forth, 1Ari.11. go a long way towards reducing this Province 1 s dependence on imported forage in thE! futurE!. WhilE! thE! Agreement provides funds for an important sector of the industry, a mul.t.i .. -sectora1 L643 March 29-, 1988 Uol XL Federal-Provincial agreement is essential to further the d(::!Velopment of I.: he agri .cul tur·al industry.

GovE,rnrnE,nt is curl~~~nt:1y negotiating IArUh Feder·al offi.ci.a1s on this issue and expE~cts an a g r· ~~ erne;, n t to be s -j g n '~ d -j n L ~~ e n ('11AJ fiscal year. To further demonstrate our connni.tmf>.nl·. l.:o t.he agr·tcultiH ' e industry, an amount of $3 million has been ~l.located to !.:he Farm Development Loan Board for this year . In t. o i'.: a l. IMf:~ ,,J"i 11. s E! r;, a 1 9 . 3 percent increase in funding for c:levt~·l.opwent of HH,~ agr·j .cul, tiJral jndustry with $21 million being allocated for thts year .

It is env:isaged that as the Newfoundland Enviroponics Limited facility comes into full production, significant increases tn the production of frE:~sh local vegetables will decrease imports in this area and wil1 provide a much superior product to the local market. Wi. t.h · a proj ect,~d Full staff comp1ement of 150 persons this facility represents by far the largest agricultural complex i.n OIH' Provtnce and IAJi.ll. J.ncr·ease the contribution of Lhe agr·i.cLilt:IH'r~l i.nduslr·y l::o our economy significantly.

The Mokami Project Group, IAJhich t•Jas olnig "i.nall.y for·rned t.o encouragE! informed dE,batE' rE,J.ati.ng ~:o c:lr"!Vf:~loplfiC'!nt: i SSIIE!S .in Labr·ador·, has four proponent gr'oups. They t:H' e,~ : l h c~ I. a b r· ~~- do r· No r· t: h chi:~ 1n b ~;! r of Commerce, the Town of Happy Valley Goose Ray, t.he"' Mol<ami. Regional DevE,loprnE,nt Association and l.:hc"~ Publ i.e Serv'i.ce AllJance of Canada. The Group 1 s rnHndatr;, :is to prornot.e l:ho e.;!conomJ.c, social and physical dE!VE!lopmE~nt of Hw rE'gj.on for the optima1 benefit of its residents.

ProposE~d rE!SE!cH'ch projects include the · No. 12 R643-

t dt.;!ni::-Lfi.caJ: ·Lon and ;:·1ss~::~ssrnf'!nt oF s p E~ c-i f i c e 111 p 1. o y rrlf'! 11 i-. <HI d b 1.1 s "i. rlf'! s s oppor·t.uni tiE•s that tAri.JJ. bEl crE,atE!d a ~; a r· c,~ s u l 1:. of rn i. 1. · i 1:: a I" y c:~ x p a n !; .. i o n , as lAJell as an indj cab on of al1 rna j or cons t r· i:'l i. n 1: s t· o 1·: h f~ realization of these opportunities. Government i~ pleased to include an amount of $100,000 for the activities of this Group in 1988-89.

Fundj ng has beEln provided for two native translators to undertake the translation of various regulations and programs jnto natiVE! languages, an initiative which is of prime importanCE! in Labrador. This nE!E!d was <·>.Vi.dent "i.n l:: ht'l 1·1o1Js'ing programs administered jn Labrador by t.he NetvfotJndl.and and l ... abr·aclor" H o u s i n g Co r· p o r a tj o n . Be c au s e r'c'!gul.at i.ons IAJC;!Y'f'! ·i.n F:ngl. i.sh only, native people were at the disadvantage. These transla~ors will also be able to work with the [) H pari .: HIC.;! n ~ d u r· L n g UH~ rw go I~ i. i'l 1·.

"i on s and irrrpJ.errrentation of prElSElnt and fr.ri:.IH'e Nat. 'i.Vt~ P<'!opl.c,~s 1 Agr'EHO!rntHJi··s. The'! Comb i nf'!d Counc -i l.s oF Labrador is the ElquivaJ.E,nt of the F('!der·at 'l on oF MrJntc ·i pal. "i. t"i.El!; on t:.he Island portion of thE! Province and includes approximately 30 communitjes. It deals with issues on a communit:y and regionaJ. basts and meEltS once a year to discuss various issrJes and to resolve any difficulties.

In order to adequately pursue the objectives and goals of its member organizat:iohs, which have a very lOIAJ tax base, this group requires additional. fiJndj.ng to help dE,fray the burdening costs of ad rn i. n i s t r a t:. "i. o n a n d c o nrrr1 u n i. c a+- -i. o n s , and I am p] E!aSE!d to announce that t:h(:~ Budget cont.i'l 'i. ns an arnorrnt of $15,000 for thE! CornbinE!d Counci1s of l.abr·ador·. I 64·4 Mar·ch 29, 1988 Vol.

XL Development and Tourism In 1987, the Subsidiary Agl"E!C:Hnc:,r·lt for· Tor.rr·'i.srn -LrrfLIStc.d $1.2 million of Provincial funds and $?..3 rr6l.li.on of f~c~dt'lr'al FrJncls in support of tourism in:itjatives . These funds leveraged an additional $6.1 million of pr:lvatE! secl~ or· expenditurE's -i.n srJpport. of the tourism industry. More and more, accommodations, attractions and tour servicE's are rnak:i.ng the Province at.t.ract.i.ve t.o tourists and both Newfoundland and Labrador· are receiving significant :inter~;,st: as destinations, particularly by Nova Sco~ia and other mainland Canada residents.

Bus tour traffjc to the Provi.nce i.ncreased i.n 1987 over 1986 b·y 40 pE!rce,nt accounting fo1" appt'OXi.rnah:~ly (),()()() V'i.!dl··or·s. rh(:. number of non-residents visiting o u r P r· o v i. n c f.:~ -i n l 9 B 7 r l::> a c h e d 295,000, an increase of ten per·c~ml-: ouc·H' 1.9B6. The->. "Lncr'C:H'lSB for other than business related r· C'l As cH1'S g r· f:!IAI by i:Hl i.m p r· e s s i. v e 16 . 8 perCE!nt. Expenditure's by thesE• . v l s "L to r• s t' c,~ a c h ~~ d $ :1. 0 '7 rrri l. J. "i. o n , an increase of 7.8 percent over 19B6.

RE!Sident l:: raVE'•l :i.n the Province grew by 10.4 percent ouer 1986 and expendi.t.ures · by rE,si.dc.::,nts arE! estimatE!d to be i.n E!XCE!SS of $230 rnill. "i.on. Provincial initiatives in adverti.sing rE,presE,nt.Eld by a budget in 1987 of $1.5 million reaching the Prov:l.nce 1 s rnarketpl.aces ln mainland Canada, eastern United States and to a lesser deg1ne<'! Europe, has crea!'.:l?~d an awareness of NewfoundJand as an clest'i.nat. 1 on oF impressive magnitudE!.

Enquj r:iE!S in 1987 grE!lAI b y s o 1r1 (,~ 6 0 p <'! r· c (.;! n t or· ·i. n El x c (=! s s o F 80,000 individual requests For "i.nFor·rna+.:"i.on. No. 12 R64·4·

In addition to direct advertising, Government will continue to be involved in an E!Xtensive pt~ograrn of parU.d.pation at travel ~rade expositions and other tourism promotions in thE! maj ot~ t<:1rge r. markc,!t.S oF l .. hE! northeastern United ·states, Ontario ~nd the Maritimes. rhis wjll involve participation at tr·Rvel. marketplaces, bus 1~our promotions, an extensive program of F<:Hni.l·i. iH' 'i.zal ·:-L on t:c)l.lrs for· travel agents, travel wholesalers and r.r·t·\Vt~l jottrn<'llisl .. s and participation at major sports hunting and fishing exposi~ions, the promotion of cruise ship 1-:r·aff·i .c, i:Hld many oti·HH' rnar·kwl .. i ng initiatives dE!s:i.gned to raise thE! gc'!rlC'!r·al. pr·oftl.'=1 of l:: he Pr·ov i.ncE'! as a desirable and unique vacation destination in Norfh America.

The tourtsrn industry provides major opportunities for employment, and some 10,000 jobs are now associated with this segment oF Lhe economy. Government 1 s efforts to promote this imporr.ant industry will. continue, as demonstrated by the recent es l:.abl.oi.shment oF l:. he Marble Mountain DE!VelopmE!nt Corporation which w·ill work towards creating an all-season resort in the Corner Brook area.

As well., establishntE!nt of bus and ra:i.l tours ot11er in~·. o t~JAst~:!rn s:irniJ.ar L<:·\br·ador· and in:itiatiVE!S encowpass -i. ng nv~~ryl .. hi.ng fr·otn sightseeing and touring to fishing a n d h 1 J n +: .i n g !-:~ x p e c! ·! !·: i o n s !1.t'i 1 l continue through Government par· t i c-L pa l:i on.

T h ~~ P r· o v i. n c "i ~' J. 1-. o 1.1 r· -i s rn i.ndus ·tr·y has bE!nE!fii:tE!d grE!atJ.y fr·om l::he ·i.nt:roduct : i.on of caf>"i.l:r.\1. assistance programs under the Canada·-N~'!l.~Jfoundl.and Tour· :i sm · Development Subsi.d:iary Agr~::1emE!nt and t.hi.s y<:1ar that levc-?.1 of L645 March 29, 1988 Vol XL sup p or t .t.-~ri.l1 con t :i. n u e . The Provinci.al cornponE!nt of funding under · l::hc~ Agreetnr:•nt for accommodation development will tot.al $'750,000 next YE!ar.

For tourism fac i J.jtjes development. $100,000 has been budgeted, and travel generators will have $650,000 available th i. s year for their ongoing development. This f1.1ndi.ng -is -i.n place and tAri.'lJ. be made availablE! over· thE! coursE! of l:.he yr,1dr ·1-:o appl.:i.cants Fr·orn a:J.l. o v E! r t h E! P r o v :i n c E! 1.11 h o h a v E! s o u n d business propos~1s that meet the various criteria undE!r :the s r->. p;u·a h~ p t•o g r·ams . T h ,,1 b 1.1 s .. i. t·H'! s s c en n rn u n i 1- y h a s rE!Sponded VE!ry favout~ab1y l:o this 1:: y p f'! o F F 1.1 n d i. n g s i n c e L h E!

T o u r oi. s tn Agreement was concluded in 19 84. fhc,1 pr·ojc-'!ci-s dFJFH'OVc,1d t.o dctb'! havn been very beneficia] to the dc-?.ve1oprnc;!nt of a qualil:y t.our:i.stn plan in this ProvinCE!. GiVE!n thE! past level of interest on the part of the private SE!Ctor, we E!XpE!Ct a full complement of proposals for •evaluation undor thE!SE! prog.rc-wts t.hi.s yeru·. Over·al.l., exp~~ndi.tut~es on dlc! VE!]OpiTIE!nt of HlE! tout~ : i.stTI ·i.ndustr·y t.u.i.ll. be :increa s('!d by /..'7 . 3 pE!rcent to an i.mprE!SSiVE! tol:al of $ 7 tn i. '1.1. -i. o n .

Go IJ e r n rn c,~ n l: 1.•.1 :i ll. c () n t "i. n 1 J c-?. t. o support, through the Ocean tndus l:r·y Q(~Vc'!loprnE!nt St.tbsi .di.ar·y AgreernE!nt:, J.ocal ini.tiat .:iuE!S a:i.rrtC'!d at pr'C'!par·"i.nq ot.lr' cornpan · i.E~s +·.o t.akc~ full advantage of the o p p or· !". !.! n :-!. !·: i r,1 '' r:·\ s s o c -:i. i:'l i·: (;! d !AJ'i. !:: h o u r oi1 and gas and fisheries r· f~ s o u r· c f:! s .

T h ·i s s 11 p p o r· 1:: IAri. l. l. b E! available in thE! forrn of capital incf~l'll".i VI·'!S, tnr:lt"kc,1t. and pr·oduct deveJ.oprnE!nt inCE!nt:i.VE!S, f.Hld assistance For technological transfe!r and innovation. Sjrn:il<.H' stJppor·t IAri. l.l also be avatJ.abl~~ for our tourism sector. During the past yc->.ar, ·in c'!XCE!SS of $8 . 5 No. J 2 R.64·5

'~·· . m·i 11 ion ·i.n gr·anl :. s '~ltH'(~ appr·ovc->.d for small businesses in tourism. and mar i nc,1 and occ-~an r'C:! "'. rl1--c,!d .industd.E!S. In total, fund-:ing for offshOI"t· ~ and rn,u· ·i.nc;! i nclus t-:r· ·i.os expE!nd:lturE!S tJJill bE! incrE!aSE!d by 3~).3 pe'!r·ce,1nt t.o $13.B rn:i.ll."Lon, while support for small business technology tAri.ll be-:! s1.1bst:anl:.ir-.ll.l.y :increasE!d . to $21·.9 million r·epresent."i.ng r.l 9:?. . 1. percent increase over 1987-88.

Marystown Shipyard GovernrnE! .n-t continues to be very pleasl=:!d at t:he hi.gh 'l.E!Vel of activity at the Marystown Shipyard , whtch, i.n great . part, is dtw to the Yard 1 s involVE!ITIE!nt. in the fleet replacement program being carried out by Fishery Products Internat i onal . Marys town 1 s selection as the prime contractor for this eight vessel program was made possible by the act i ue and posll': i ve i ntervention of GoVE!rnrnent, which u-ndE!rtook to pro v i d (~ a $ l 0 . 5 m·i.l.l ·i. on subs 'i. d y !·: o the Yard, which was matched by the Government of Canada.

Thi.s a1lotAJed Marys town 1 s bid to bE! cornpet ··i. l::i.vc->. IAJi.t·h t-.:hc,1 hc,1 rlv ·i.ly subsidiZE:~d foreign yards who were a c 1: l v E.~ 1. y s ('! e,11< -i. n g 1-. he->. wo r· k . T n addition, Government directed the cons t.rur.: t--i on of I:: IAJO rn --i.ddl.e distance vessels to Marystown Shipyard, both of tJJhi.ch IAH-:!r'e bwi.l'l-. during 1987, and which are now proving to be hi.ghly successful. On the rE!pair side, Marystown Shipyard was the sucCE!SSful. bidder on two largE! Federal contracts on the Coast Guard Vessels Alert and Simcoe, together costing approximately $13 million.

Marys i:OIAJrl Slri.pyar·d "is acti.vel y seeking a role for itSE!lf in ful:11re Nat ·ional. Oefc->.ncc:'! pr·oje,1cl~ s such as mine sweepers and other I 64-6 Vol XI s mr.1ll. v c -~ s .s t'! 1. s , and E! x p e'! c 1: 1:: h ::i. s initiative to pay dividends down l·_hc'! r·or·ld. In ac:lc:l·i l:: "i. on, the Shipyard, wi th strong assis ta nce fr·orn Ul"i.s Gov1~r·nrnent, is p1JJ"SU:i.ng potential work in additional Vf~ssr->.1. cons·l:r'I.Jcl-- ·ion c:,,s llH~ll. as for production - related work on offshore oil projects.

All in all the Shipyard expects to maintain ·its workforce above its current level of 500 during 1988. Research and Development The international economy is notAl characterized by rapid technological advances. Pr·oduc-U .on rnet:hods, Jnah:H':ial.s, i:ilnd services provided are undergojng constant · change-:!. Tn orclc->.r to compete in an international market, Net•Jfo1.1ndland busi.nesses wiJ.] have to maintajn cl constant: at~Ja r· en(:~ s s oF t h c->. 1. a 1- e s t. s c ::i.E! n t :if i. c developments.

As a Province, tAJe TniJSt kt·'!t'1 P abn.•ast . of I~JolnldlAri.dE• advanCE!S in sciE!nCE! and techno1ogy i:Hld pr·ov i dr-'! Ol.tr' sci e,n1t'i. f "i. c community with the resources to i"' c: q 1,1 i r· f~ i'l n d ;;1 p p l. y ·1- r-?. c h n o l. o q i c i't l advances to our products and pr·oduc i". ion rne-1-.:hods. Ut ·i l i 7.i.ng t.he Canada-NetAJfoundland Of f shore D e v e l o p rrHHl t F u n d , m a j o r inVE!StmE!nt:s have bE!E!n Tnf.H~E! to upgrade our r't1S(:~ar· ch t'.lnd development capabilities at· Memorial Univers i ty and t:he I n s t i t u t e of F i s her i. E! s a n d Mad . n E! Technology.

Just recently, the Premier anno1Jnced the appoi.nt.mE!nt of a Newfoundland and Labrador Science and T"-~chnol.ogy Adv·i.sory Counci.l l·:o provide an independent source of adv'i.ce i.n i::h'i.s "i.rnportant i.H'E!a. Last year, Newfoundland hosted a nat 'i. onal meet'i.ng of Sci.ence and Technology Ministers lAihich tAJas c~xl·:r<,HrH~l.y succ~~s!;f 1.1l tn br·"i.ng:inq a national focus on HlE! capabi1:i.ties 1\Jc). 1. /. 1\611-6

of this Province in Marine Sciences and Cold Ocean Techno]ogy. WE! clre plt::!ctSt::ld wiLil t·.he Govel"nrnent of Canada 1 s r·~~cc-?nt announcement on the development of net1~Jorks of Cent-:res of Excellence in SciencE!

TE1chnology, and we will be LAJorki.ng closely I~J:il:h our scientific community to ensure that the Province plays a major roJ.e · in this important i. n i t i. a t 'i. v E:~ • T n t.I'H,1 c o rn ·i. n g y ~HH' , Government will continue its st.r·ong support of r'E!SC:1iH'ch and development spending in this P r o v t n c. e t h r o 1.1 g h ~~ $ 5 rn i. 1 1 i. o n Resea~ch and Development Program ad ul"i. n i. s t: e r f;!C:I by 1: h e D f'! p cH' t rn f'! n t o f Development and Tourism, as well as con t ·i n 1.1 i n g ·i n v E! s 1:: m<Hl 1·. s i n projects which have already been annol.ll'lCf'!l~ undr:>r' i:.hr,~ Canada-Newfoundland Offshore Devf~lopmE!nt.

Fund. Now rnor•r,1 i·:h~Hl ever before, Newfoundland and La b r· ad o r c a n tr· 111 y c l. a i. rn i~. o b E! a world class Centre of Excellence "i.n Marine Scic-?nces and Cold Occ;1an Technology. Forestry The recent Speech from the Throne highlighted the strong performance of thE! forest industry in 1987.

NeiAJspr:i.nt:. pr ·i.ces were at record highs, and production levels and qual·i . l:y conl:"i.niJE! t:o increase as a result of the Government-assisted moderni.zation programs at the Grand Falls and Corner Br·ook m'i.lls _, Whal:. h;~s b~HHl lPss obvious, but equally i.rnpor·tant, "i.s l:he t:l"(!rnendc)lls improvement being made in the mam1gernc-:1nl·. Find r·evi . i".al.:i.zal·:ion of the forest itse]f. Indeed, over· All fund ·i n g for· for· o s i~ resource management will be "L ncr·~~aS£'!d by (). 7 pc,1r·c~~n l:'. over· 1 as 1':. year to $31.8 million.

We are now in thE! third yE1ar 1.:64-7 March 29, 1988 Uol XL of a $'1-8 milJ.ion four-year Fo1nE1St Resource ·Development Agreement. Previous agreements had prou:i.ded $36 m:i.llion. Much of this has been spent in growing and planting sec-:'ldJ.Jngs, and ·i.n such other silvicult.ural treatments as thinn:J.ng and s -L I:e r'E!C:l.arnat:i.on. Tn 1988 we will treat 20,000 hectares of forest land Ln one form or another. Twelve mi11ion nf~w ti"E!E!S IAdll. b~1 pJ.antc-:!d as par·~. of this program this year.

It is evident that the mi.l.l i.ons of doll.ar·s of ·i.nves l:.rnc;1nt in forests for the future rnust be p t' o 1- r-~ c 1-: f'! d fro rn f i r· (:' , 'i. n s o c I·_ s , a n d other threats. We all remember L h (.•) l: 1 g a 7 IUd s d I" H c 0 r· d d I" y s ~~ i\1 s 0 n IA.dth nE1arJ.y 300 fi rE1 r;tarls, yEd: l.ossf :!s IAHH'H k(;1 p·t-: hl ;;~ rrri.n:i. m1.11n main]y because of a s t. r· a I: e g i. c all. y .... s t c1 1: -L o ned i"Hl d strengthened water bomber fleet of e'i.ght planes, cornpr·i.secl of six Cansos and two Cl-21Ss.

Government has recently receiuod an additional two CL.-21Ss, cornpJ.et.:ing H·.s $1.5 milli.on investment in the acquisition of new water bombers. Last year 1 s success has conuincE!d us that. an even fiJrt.h~n· strengt.hl':!ni .ng of the fleet is warrantE!d and accord'ing1y IAJe have made provJ .sj_on t.o operi~i:.e li:dght aircraft this yecH', four Cansos and four· CL-2.15s . F~~rthE1r provision has been rnadE! for· a fn(~ d i. 1.1 rn .... s "i. '1. ("~ d ~w 1. :.i. cop b'!r' 1':. o be locatE!d in Grand Fa] J.s to prou:i.dE! a f rt s '1:. r· C'! s pons t'! s l'! r u i. c e .

GouernrnE1nt is confidE1nl : t:hat the :-i. n c r· c,1 a l> e d J r-:l IJ <-:l J. o f p r· o 1:. E! c 1--. -L o n 1~.d. 1.1 more than justify the expenditures i nvol V1,1d. Pr·ou .i si.on of $2. r; m·i.ll -Lon has a]so beE1n made in this BudgEd: fo1n conti.nui.ng L:hc,~ bal::l::ln agd -L nst thC'! hE1mlock loopE!r, partj cularly on t.:i'H~ G r· <'! r-:11':. No r· t.I·H:! r n P (Hl'i. n s u l a IAJ h o r e the infestatjon is heavjest. As a No. 12 R64'7

result of successful experimental I•.ICllnk l ast: Y~'ar ' , l.: h(->. b-L ol.og i. cal. insecticide BT wilJ form an increa s ed prop o r ti on of t his YE!aln 1 s program. 0 Ht£oH' pa r· t s of Ul F.! f or· c,~ s I ~ industry are providjng employment and · i.ncomf.:~S i·.·. o ht.indr·c,H~s of Newfoundlande!rs and Labradorians. ThE:~ fuc~ l IAJood ·i.nclus l·_ r'y -L s expanding . Our lumber industry has had a good year, and export pulpwood has provjded at least 150 jobs on the Island and i n labrador and will do so again in 1988. Public Buildings Mr .

Speakc-?.r, cap:i tal fund-i.ng of over $27 million is provided relative to the construct-ton of and alte -rations to various public buildings throughout the Province. Apart from those I have alrE!acly OIJtl. 'i. n(-?.d, fund .. i. ng has also beEHl allocatE!d fo1n thE! ongo:i.ng cons t ructi .on of !:he nE~IAJ Mo1·or· Vehicle Registratjon and Of f ice Bt.i"'i.l.d·ing• ·in Moun·t-. PE~ar· l. ($'1-.3 mjllion) ; altera t ions of Co n f f:l d c->. r· a l i o n R u i. l. d ·i n g E a ~ ' 1·: B 1 o c k ($6 . 7 million); the construction of neiAJ h'ight•Jr.lY dPp o l-s a1~ Sl·: .

Anthony ($301),000) and FlotJJer 1 s Cove ($3 ~ )0,000); r"'nd c: on s t.: rLICI .-ion and renovations applicable · to v a r ·i.ou s L.r.~ br·<:,\dor· d c->. po 1·: fa c _i 1 i. I·:_ ·i E~ s under the Na t ive Peoples 1 Agreement ($ \ . mill i on). Transportation fhe provision of modern, efficient transportation facil::i.l-ies must al.tJJays b("! a major· priority of Government. Without s uch facilities, progre s s and development throughout the Province will not take p l a c e .

The 1988 - 89 Budget con l:. a ··i.ns significant expenditures in the 1(-jiJ.B M<.H' c h ?. 9 , 19 B 8 Uo1 XL area of . transport:aU .on, thE! lri.ghli ght.: s of IAJ~ d ch ar(-:! a s · follot.~.Js : . No . 1.?. An a 1 1.ocat i on of $40 mi l l io n has been provided for our h·.-LghiAiay con s t.:r·uc Lt on · progr·d rn 1-:o r:on1·· ·i.ntlt=! upgr· a dinq remaining gravel. road s l·:hl"oughcHJt I· he-:! Prov ·i.nCE!, continue our paving program IJJ 'i. l l. b f'! r· e l. t=! a s c':! d s h o r· t. l y by my Colleague, the Minister of Tran s portation .

An amount of $9 . 5 million h a s b E!E! n a 11 o c a'-t E! d u n d E! r t he Ca nada --NeH ... rr-ou nd 1.:.. nd Hi g htAia y s Agreement For the co ntinued construction of the Trans-Labrador Highway bE!tW~~E!n WE! St.E!rn La b r a dor· and Cl'liJrch-i. l l Fa l.l. s , and \:.o cornplE!tE! thE! upgrading of 1-:he r·oad bet.tAIE!E!n P-L m•Jare and Red Bay in southern Labrador . At the fHld oF t:he 1988 construct i on season, Mr· . Spt:' r.lker·, 138 ldlomed : res of thE• to l: al ] E!ngth of 200 k i l Orrt(:~ L r· E! s b r:~ 1-.:t~IC·'!

C'! n ,_~,,e s t E! r· n Labrador and Church:i.J.] Fa1J s IAJ ·.-L 11. br- ~ cornp1 E~ I:E'!cl. 11\1 i. l:-.h t.he cornplE!ti .on of thE! upgl"ad:ing i·:h ·i s yc,' ar· a nd, hop e ·fuJ. l. y, the paving in another y e ar of l : hf ~ i~(,~d Ba y l~oad, l::hc:. Basque Whaling SLa t ion , .. _our·-.-is-1:: cll·: l::r·act: ·ion at 1\E!cl Bay u.Ji11 bE! morE! rE!c!dily a C C e S S -j_ b l. (-?. t·. 0 1:. 0 I J In ·i. S 1': s .

An amount of $25 . 4 million has al s o been al l o c ated under the Canada-Newfoundland Hi ghway s Agreement for cont i nued improvements to the Trans Canada Hi.ghtAJay acr· o ss t:ht~ Island portion of our P r o v J n c e . T h i. s y '~ a r IJJ L l l see thG! construct:.ion of Lwo addittonal lanes on the Highway From Lhe Foxtrap R61.1-8

1.649 . . access road area to Otil:.t.erpot Pr·ov "i.nci.al P;u·k. A start will be made this y l':! cl Y' ;:~ 11 d IAJO I" I< IAri. ll. C 0 1'1 i-· . .i. 1'111 (.;! into thE! nE!Xt ttJ.JO YE!clrs on the to~al. upgrading and re!paving of 28 kj J.omE!trE!S between Clar'CH1vi.lle and Port Blandford and the 40 kilometres betl.uE!en Gambo and GandE!r, including a grade separatton at. Garnbo. On t.he IJJest coast, work this summE!r IAd.l.l. complete the lJpgrad .. i.ng and repaving of a

section of the Trans Canada Highwa~ near· Georg E! s La k e . T hi s I~JO Y' k l.ll i. '11. C 0 rnp '] C:;! l::f~ irnpr·overn(!l'lts on tho 148 kilometres of the Trans Canada H-i ghiAJi:!IY I:H'! h•H:!en Corner Brook and North B r "'' n c h b r' 'i. n g i n g t h i. s C'! n l·. i.. r' r::!

section up to the new standards. The other large project funded under thj s Agreement wl11 see the continuation of the new 12 ki.l.omei.:r'C::1S r:\CcHss roi'ld 'i.n Port. aux Basques to provi.dE! direct and fast access to and from !:he Mar:ine Atlantic ferry terminals. Mr. Speaker, any motor·ts t us:i.ng our Trans Canada Hj ghway in recent years has to be impressed with the improvements made throllgh the addition of passing lanes which have greatly improved tho safety record of this highway ~nd facilitated the easier passing of larger vehicles.

Fund ·i ng of $~. 7 mill ·ion Fr·orn Hw GoVE!r'I'Hnent. of Canada has I:HH:~n i ncludc,!d For l:.hH construction of a new a i. r' s i". r' i. p a I: W 'i.ll i ;'11 n s H H r' b o 1 1 r' and Lhe rE!St.oratton and lflr'\"i.nl·:en;;1nce of v;;1rO'ious aJrstrips in other coastal March 29, 1988 Vol XL Labr~dor communities. In addi. ·t.:l.on, fund-Lng of' $3.8 rntllion has bE!E!n pi~ovidE!cl for !:he construction of airstrips in the C l. a r e n v i. 11 e , G r· a n d F a 1 1 s a n d Codroy Va11E!Y arE!t-ls undE!r a new agreemeot with the Government of Canada.

Consiste!nl with our continuing efforts to improve service and efficiency jn our ferry service opcH'ati .ons, Gover'niTI(.;!nt has ciE!Ci.ded to intergrate thE! Fogo and Change 1slands fer-ry services. This change will provide bett:E!r SE!rV~i.CE! to the residents in th~t area. Mr. SpeakE!r, in tota1 t.hr::• o~~P·~r·l':rnPnl: of Tr•r;tnspor· ·t-al". i.on IAJ:i] 1. be invol.VE!d in a consl~ruct:.i.on pro g r' "' m v d 1 u t-'! d i'l 1: $ B 8 rn:i "1.1 i. on as compared to $82 million last year, f o r' a n i. n c r r:H·1 s c.:! o F 7 . 3 p c.;! r c l'l n t. .

This alone will be a ~remendo~s boos 1: i':o I: he cons l:r'I.IC 1". i.on i.ndus t ~ ry and will provide some l,SOO jobs to that sector oF the economy. Energy Government continues good IJSe of t:he $300 Canada-Newfoundland to make rni.11 ion Off's horE! Development Fund which is cost--shared 75 pE!rcent FE!dE!ral and 25 percent Provincial. The Province! 1 s broad st.ratE!gy fo1n USE! of t: he F u n d i s l:·. o a s s ·i g n pd. o r i. t y to projE!Cts which are dE!signE!d to give major long-term economic benefits to the Province .

P r' o j C.:! c 1: s v a 1 I.U;!C:I a L o v C.;! r $ ?. 0 million were recently approved. In total, over /.0 important projects valUE!d at $1.23. S rni J li.on h a u C:! b e t-'! n a p p r' o v f'! d o F a p p r' o v C'! d ·i n pr·inciple. RE! c.e ntly ·i nclLldf:~: No. 1.2 approved projects 1~649

$3 . 5 mi11ion for a WaVE! Generator at the Inst i tute for Marine Dynamics; $4.2 million for a Super Pumr.~ H(,~l.i.copi" Hr Fl.LghL SimuJa t Jon Centre; $SOO,OOO for the c t' o a t -L o n o f 1: h r,~ S c 'L f'! n c c,~ i'\ n rl Technology Advisory Council $500,000 to the Canr.~da-I\1(,~1Mfound1 and Offshor·e Development Fund Committee for Adrll"i.n·isl'.r·al ·: ·ive Suppor·t-.; $870,000 for Floai·.'i.ng Pt~oduct.i. on Stud:i.e,s; and Concrete Systr.::~m $219,000 for the development of a Two-Phase Flow Meter Prototype.

Government continues to initiate many projects to encourage more efficient use of energy, and convers 'L on to econotn·i.c alternative energy sources. Our objectiv~ is to indent·Lfy v t abl.e ener·gy projects, asSE!SS thE! costs and ~~Xp(,~ci·:Hd sr.wings, and as~dst in bringing economic projects to f r· 1.1 i. 1: i o n . T t. h a s I:HH:! n demonstrat:E!d that wi.th adE!quate a s s r.::~ s s m l'! n 1: a n d pl. r:1 n n i n g , s:ignificant enE!rgy cost. savings c;:qn be achLr'!lJf~ d t.hr•ot .tgh retrofitting and/or converting to IAIOOd ftH~ l. .

Wood clri.ps <H'A Rn r"!conom -i. c alternative fuel where wood s u p pl. -i. e s are a v a :i.l a b 1 e . The Net~.tfoundland Hardwoods PJ.ant in Cl.arenvill.e and James Paton MernoriaJ. Hospital in Gander converted t~. o wood clri.ps a fetAl YE!ars ago and arE! VE!ry successful operations. Tt,.~to o~·her hospitaJ.s, WE!StE!rn ME!rnori al Regi .onal Hospi t.al and 1-:hr.;! Central. NeiAtfoundland L650 March 29, 1988 Vol XL. Regional Health Care Centre, are con v e. r· 1:: ·i. n g to woo cl c lr L p s U r'i s y ~ :!a r with support from the Department of En f'! r' g y a nd He;:~ l. L h .

I t 'i. s interesting to note that in another alternative energy project, a small hydro p] ant: buLH: by a COiTITnfH''iCdl. r,~nt~H'pr· · .. i.S~~ ,"..t Mary's Harbour, commenced o p e r· r.\1': i o n 1 .::t h~ ·i n 1 9 8 7 . I n add'.i.tion, school boards arE! tak:ing arlvantr.1.grn of assistance offered by the Department of Energy in an Hffor·l:·. to r·eduCE! r'!nHr·gy costs and frE!e up funds for educati .ona1 a c 1: ·i. v l. t. i.e s . Newfoundland and labrador Hydro Mr. SpE!akE!Y', 1988 wiJ.J. se-E• renewed efforts and renewed determination towards resolving the inequitable Churchill Falls contract.

No longer can Ne1..1rFo-unrJl.anders and Labrador:i .ans be denied fair economic rE!nt from t~h·.'i.s grE!at resource and fr·orn tht':! trE!ITIE!ndous pote!nti.aJ of thE! LotAJE!I~ Chur·chtll and other· r t vers of Labrador which flow untapped to l:hr.;! sr,~a . Wr,~ iH'e d~~h=!Y'In"i.rH':!d that. the inequities of the past can and m 1.1 s t·: b f'! c o n v ("! r· 1: H d t o L h e opportunities of the future . Mr.

Speaker, 1987 1~1as a y~:·ar of ft.tt•l·:h("!Y' <,!lt'OI~t+ : h i;\nd SUCC~'!SS for NE!I.r..Jf ou ndla nd and · Labrador Hydro anrl i l::s aff i liated companies and 1988 is shaping up as an excellent y (,~ ;;11" as we ·1 1 . 11:. 1~ r i. 11. bE! r· r,~ c a l.l. e d that earlier it was announced that there would not need l::o be an increase in electricity rates in 1988 i.~S pr·evoiousl.y env:i.sag("!d.

I am extremeJ.y pleased to announce today that there woi.Il bE! a rebat.e of approximately $1.3 million to retail customers in 1988, resulting in a sJ.i.ght dE!CrE!aSE! :i.n ra t:es. .T.n add -i.tJon l:. o sound ·Fi.nanc.Jal No. 12 R6 ~:>o

p<:H'for·mancc-~s I Nf'!l.o~Jfoundl.and and I abrador Hydro is also undertaking a s · i 9 n i. f 'i. can 1:- cap I. t: a l p r· o g r· am ·i n 1988, tota1l:ing OVE!r $120 rn'i.ll.ion. Tlri.s ·i.s tnor·e t·.han double the leVE!l of capitaJ. spending in 19 8 7 and t.o~J:ill. rE!S u 1 t in i~bou t 800 construction jobs during this summer and fall.. This tAri.ll be a significant boost to the overall economy. The capital spending by NewfoundJ.and and Labrador Hydro t.o~d 11 b e s p r e a d o v e r v :i r t lJ a 1. 1. y t. h e entire Province.

The major projects being undertaken i.ncl1~de: a five megauJatt wood chip gc.;!nerat. ·i.ng plant i.n Rodr.l"i.ckton costing $25.5 miJJ.ion; the Paradfse River Hydro Project costing $23 million; the inl:erconrH,~ci-Lon of Fogo/Change,~ IsJands cosU.ng $13 mi1lion; the upgrading of two units at Holyrood costing $20 million; and a new ("! n e r· 9 y c: () n l:r• 0 l. r: ,,~ n t r· E! I h e d d () r f i. c r->. f a c i 1 it y in S t . John 1 s cos tj n g $4-0 rni.llion. Work on many of these projects will extend beyond 1988. CONCLUSION Mr.

Speaker·, Ul"i.s Gover·nrnent has once agajn faced the challenges of putting forth a fair and rE!SponsjbJ.e financia1 p]an, a p 1 a n w h i c h t.o~Ji. 11 g u i d e o u r e f f 0 r t s in de!livering a bright future to the tJJhol.e Province. The task has not been as easy one, but I believe we have succeeded admirably. The dEHnands ar'E! many, ther·e i.s much 1.UE:1 t.o~Jant to do, b1.il: our financial resources are 1. i. rn·i 1·. e d .

T lri. s d o E! s n o I~ m c,~ a n tJJ f.! will not accomplish our goals, j us t. that. i. 1:. 1na y '1". ;:·1 k e a l"i t- 1-.1 c,~ longE!r to realiZE! than 1.\Je sornwl- i . rnr,~s IAJOt.tl d 1.-l,k.,,. Ol.lr' gor:~l s are clear, our course is set. This -i.s noi ... r'l Govr->.Y'I'HTif'!l'li~ , .. _hat. 1 .. 6 51 March 29, 1988 Vol XL .. ·. IAri 11, I Ala j V 8 Y' t () Sa i: i. S f y t h f~ E! b b i"' 1'1 d flow of ~hart term expediency. Thi.s i.~; d GOVt"!rnrnt':!nl .. IAJ'i.l.h a vision of the future for this Province and 1.o~1e hcwr->. cons"i.st.c->.nl·l.y tnOVE!d 1-o make that vision a reality.

We brought 1:-his Province soundly through the trying years of r·ecession in the early 1980s. Our E!Conomic policie!S have hE!] ped th:i s Province to enjoy one oF i. t.s most prosperous YE!a.rs in 1987. nw confidence shown by Newfoundlanders in personal spendi.ng, incrr:~aSE!d c->.tnpl.oyrnent. and business investment is ample evidence that we are building a future that wjlJ. be a proud legacy for our· ch'i.l.clr('!n.

Al'l our indications today are that the cotninq f ·iscal yPr.lr' IAJill S(~e our economy rE!rnain buoyant., pE•rrn:i.tti ng us t·. o rn<·lk <"! con t.: i. n 1.1 C'! cl p r· o g r· E! s s -i. n job crE!aU.on, improving public ser·u ·i Cf:~s and r;!nh<Hlc-i ng (~conorni.c developmE!nt, while at thE! same 1-. i. rn c,~ r· r->. d u c ·i. n g o u r· d e ·f i. c J. t. a n d actually decreasing the OVE!ral1 i·. a x (~ f f o r· t t. h r· o 1.1 g h t. a x I" E! f o r· m . This is the record of the P e c k F o r· d Go v e r n 111 e n 1.: ; a r· e c o r· d of tireless determinatjon.

Tjreless determ i nation 1:-o see the development of our offshore resources, tireless determination to enhance ernp1oyment opportunities . and business incentives in all re!gions of t:hE! Province, t.''lrel.ess dE!h':!rtninat.Jon to provide sound and responsib]e fi.scal. managE!In.ent l~o Gover·nrnE!nt and thE! economy, a duty E!ntrust:E!d l:o 1.1!; by ·i".ho fort•.Jard l:.h:i.nki .ng pE!OplE! of this ProvinCE!; t:irelE!SS deterrn-i.nation to improve the quality and E!njoyrnE!nt. of Li.fE! oF AVCH'Y 1\hw.JfoundJ andC'!Y' and Labradorian, no matter tJJhE!rE!

Iris o r· h c,~ t' r· r,~ ~; -i. d c'! n c r,~ I n o m ,,., t. '1:. l'! r· Ill h a t his or ~lE!r sk:i.lls and ab'.i.l:.l.Li.es, no rna, .. hH' t•.Jh1:1 t lri s cw l'lHI" dr'C'!I:.ltns and asp i.rat i.ons. No. 12 R651

C h a ll. e n g e s s t i. 11 l. i. e a h e a d o F us. But tuE! IAJi11 bE! working OVE!r t.he comi.ng year t>ri. l:h ·i.he Fc.;!cler·al. Government, our sister provinces, and -i.nd"i.v"i.duj',\l.s, organ .. i.za l:: "i. ons and bus-.inE!SSE!S a11 OVE!r th:ls ProvinCE! to me~~t t:hesr.;! chal.l.engf~S. T IH'gf:! all Newfoundlanders · and Labr·adori .i'lrlS l':.o join IMii·h 1.1s ·i.n meeting these challenges. Thi. s is a Pr·ov i l'lCf~ of i.mmnnsH opportuni t.y. For so long we have b~'!t;!n on , .. _ hf~ vr,~r·gp, of "''~'i.z i.ng our' de~tiny and realizing our pol·. eni~i.,.~l..

TL 1s my hopE! l·:hai': IAii'Lh the Budget tJ.Ie have put for'IAiiH'cl 1-:ocli>.y IAH.;! have rrrovHd otH~ step c]oSE!r to fulfiJ.ljng our vision and that the coming year wjll provide thE! E!Vtdence that WE! can sec IH' e a l. -i. f ~~ 'i. n t: h :i. s Province, for future generations, of which we can aJ.l be justly proud. SOME HON. MEMBERS: Hear, hear! MR. SPEAKER: The hon. the M:inister of F:i.nancE! . MR. WINDSOR: Mr. SpeakE!r, I have a ITIE!SSagE! from H"i. s H o no u r' 1·:. h c,~ I. ·i f~ 1.1 t~ c,~ n a n t Co v e r' no I" . SERGEANT-AT-ARMS: All r-.ise. MR .

SPFAKFI~ : Tl'l'.i s is addrE!SSE!d to the hon. the M·i. n i. s 1·: f~ r of F 'i. n a n c ~~ , M H r' c h / 0 , ] 988: "I, the LiE!Ut.enant-Governor of the Pr•ov i.nce of Nr,~IAifoundl . r.Hlcl, transmit Estimates of sums r e q 1.1 i. r' <"! d f o r' t i·H,~ P u b l "i. c S <.;! r' v .. i. c r"! of the ProvinCE! for the YE!ar E!nding the 31st day of March, 1989 "i. n the aggregate of $2,428,173,300, and i.n accordi'HlC<.;! w·U·.h Lhe provtsi .ons of thE! Constitution Act, 1867, I recommend these Estimates to the HoUSE! of AssE!rnbly. Signed: J . A. 1..652 March 29, 1988 · Vol. XL.

McGra t.h, L"l e ~~ ·t: ~~nan t--Go v f.H' nor . 11 Or·der, please! W (.;! 1;.1 -L ll. 1·. a k ('' d f' I~IAI l'nOifl(-'! n t- S d:ist.rjbutE! thE! docurnE!nts t:o m~~rnb e r· s . t.o hon. T h e h o n . t h e M i. n i. s t <.;! r' o f F i. n a n c e . • MR. WINDSOR : M r· . ~3 p ~1 c\ k r.;! t' , T HIO v f~ 1:: hat t. h <'! message, together with the Fs l:.i.rni'li-Hs, bH r'r.;!fer·r·od -l::o a Committee of S~pply. On rnotjon, that thE! ITIE!SsagE! frorn H .. i. s H o n o u r' 1·. h (,~ I. i.

E! 1.1 t e n a n t: Governor, together wi t h the F s t. j _ rna -1: r;! s , be r' l'! f e I" I" (;• d to a Cornrn:ittE!E! of Uw Whole on Supply, Mr. Speaker left , .. _he Cha "i. r. Committee of the Whole on Supply MR . CHAIRMAN (Gre e ning) : Order! MR. SIMMS: I ·move, aflE!r thE! clel .-:i.br.;!ra 1:-i.on Yo1.1r' lionour· to the matter referred, sel"jous has q:i.~Jc:~n that he n o 1~1 r· :-1. s ~~ f·. h ~'! C o IIIITI i 1:: t E! l'?. , rE!port to s:it progress and ask leave MR. SPEAKER (McNichol~_ : Or'df:!r', p 'l r,~asH!

T h r'! h o n . t: l·i r.;! . m (;! m b f'! r ·F o r T (~ r I" a N o v a . ~GREENIN_Q: Mr. Speaker, thE! CornrrdtlE!E! of S1.1ppl.y h<~s cons "i.dE!r'ed I: he rna U:E!rs to it referred, reports progress and asks leave to st t again. On mot.'.'l.on, report adoptE!d. Commit tE!O aga'.'i.n. on t.omorroiAI. No. 12 Y'OC~'!-.iVPd ordei~E!d t.o and s:i.t

Notices of Motion MR. SPFAJ<EI~ : · =n:;c:~- hon .-·-the Minister of FinancE ! . MR. WINDSOR: Mr·. Spt~aktH', I give'"- noi~t cf:~ l: hal: T will on tomorrow a~k leave to .. i.ntroduce a b"il.l entitled 11

An Act. Res pe cti ng An Increase Of Certain Pensi.ons 11 • MR. SIMMS: Mr. Speakelr. MR. SPEAKER : The hon . l.h e Presi .dent oF the Counc:iJ.. Mf~. SIMMS : Mr. Speakc 'lY', pursu;:~ni': to Lhc;l r'Ell.evant Standing OrdE!r, I am nolAJ go·i .ng +·.o rnove l::he rno l:i ons tAJh i ch would establish the Estimates Cornmil·:i · f:le'"-s i:lnd, :i. n doing so, T- acl<noi~JJ edge thE! co-opE!ration of hon. rnc,Hnbf~r·s . T rnove, F i rs~ of all, ~he following members comprise the So c i. a l S P. r' v ·i Cl'! s Co rnrn-i. t:i·: t'! r,~ : T h P. hon. thE! member For St. John 1 s Nor·l::h (Mr . J .

Car'i~er·), Cha:lr·man; the hon. Hw mernbE!r' for Bel 1ElVUEl (r"'r. Call .an); the hon. the.;! member· for Humber WE!St (Mr. Baird); the hon. l~he mE!rnber For l .. aPo:i.l.e (Mr . Mitchell); thE! han. the ITIElmbE!r for Port de Grave (Mr. Efford), Vice-Chairman; thE! hon . the mE!mber For Eagle Ri.ver (Mr. Hi.scock); the han. the mE!Inber for St.. John 1 s East (Mr. Long). I further move that the following members compr·ise t.he ResotJrce Esi·:.irnat:E!S Cornrnitt.E!El: The han. thE! rne1nbf~l" For· Por· t au Port (Mr·. Hodder), Chairman; thE! hon. thE! mernbPr' f .lH' Bon;,,v ·i s i':.a SotJ l: h (Mr·.

Morgan); the hon. thE! rnE!TnbE!r for St. John 1 s Fa s t F~tern (Mr. L6S3 March 29, 1988 Vol. XL .. Parsons); thE! hon. thE! tnEHnbE1r For H 1.1 rn b ~n· lrJ f ~ ~ ; l ( 1\1 r . B a .i. I" d ) ; 1· .. he h o n . the member for Fortune - Hermitage (Mr·. S i. lnHI<Hls), IJicr·'•-Chcl"i .I"ITkln; l:.ht=! hon. thE! TnE!rnbE•r for TIAJ:i.ll:.i.ngcd:.e ( r"' r· . 1111 • Car' 1-C'! r· ) , L h C'! h on . 1:: hE! mernbE!r for Naskaupi (Mr . Kel]and) . Fjna1J.y, Mr. SpE!i~ker, I move thE! follow i ng members compr1se the Government Services Estimates Cornmi'i".tE!e: rhe hon. the,~ rnembE!r for Humber VallE!Y (M1~.

Woodford), Chairman; the hon. i~he member for Trinity - Bay de VE!rdE! (Mr. REd.d); the hon : the member for TE!rra Nova (Mr. GreElnj ng); thE! hon . Hw mernbP.r' for Placenti .a (Mr. Patterson); the hon. the member for' BIJrgeo Bi'lY d'E s pcl"i.r (Mr. GilbE!rt), V:LCE!-·Cha:irrnan; the hon. 1:: h E! rn e trl b I-'! r' f o r· S r. ~~ p h ~:! n v :i l l t'! ( M r . I<. Aylward); and Uw hon. thE! rnc.~rnbc->.r for· Watc;!r'for·d l<e;!nmount. (Mr. Gullage). Motion, that thE! Connrri 1·: L f'! ~~ s r: omp r· ·i s C.'! named, carriE!d . MR. SIMMS : Mr. Spc'!akf '!Y' . MR.

SPEAKER : I he'• Esl:irnatE!S mt~' rnb E! r· s The hon . the President: of the COIJnC"i.l . ' MR. SIMMS : -- --I also u.dsh, for thE! infciJ~mc-lt.ion of a 11 h o n . rn e m b e r s , I· o t. a b 1 e t h c::~ dE!partmElnts which LA.d11 be considered under each of Lhe Est:imatElS Comrni ttees. I wiJ 1 not. run through t hem now. Final1y, M1~ . . Speaker, I IAJant l::o advtse the HotJse l·.hal~ there has been an agreement, or underst-and'i.ng, T guc,,ss, on i:.hP

schedule of meetings For the FsL : i.mal-. f'!~ ; Coinln J. I ·: t : er,~s. llJh-ich I al s o will table . There will be no ' illf~c,~t i ngs on Monday r'!Vf:'l'l i ngs, or No. 12 R653

Wednesday mornings because of caucus me~E!tings, nor are~ therE! 1neet.ings, of course, on Fr·::i.days. And, as a re~sult, I bE!lieve we have a ver·y sensible schE!dul.e, :in which e~ach committe~E~ wtll now 1neet, i.n essencP, on(,~ morn-i.ng and onE! evening a we~ek. There wiJ.l bE! no s'.i.mLil.tanecHJS meetings, tAJh"i.ch should make it more convenient for our fr·tends i.n 1:-.he::~ prt=>ssl as IAJP.l.l. as members. PRFMTER PECKFORO: And l·:hol.lsands of LhfHn t~rill b0. there. MR. Sl:MMS : And thousands IA.d.ll be thE!rE!, no dotlb ~:.

A 11 me e 1-. ·i. n g s IAri. n b e h e 1. d i. n I h E:~ House of Assembly, unless otheriAri.se cletermi.ned by a particu-J.ar committee, and thE~ timE! for all. ml':~et. ings IAJi.l.l. be, i.n t:he a.m. from 9:30 to 12:30; p.rn. rnee-t-.tngs IAJi.lJ. be from 7:30 to 10:30, unless otherwise dictated by the committees, of course. Finally, Mr.

Speaker, by agreE!ment, again, and wi t.hout prejudice to the Standing Orders and any arrangeme~nts in futurE! years T tAJan 1·.: l:o makP t:hat-. very clear the Estimates will be "formally referrerl to ~he cornmi tte~es on Monday, April 11, i:lnd tAJOI.Il d HHH'r-?.for·r->. nor·rnall.y br,~ r·eported within fifteen sitting days I or· on F r·-;, day , A p r·-L 1 ?. 9 .

But, in the co-operative spirit 1". h i'l t: IAJ8 i'li'lV e S h OIAJI'l i. 1'1 t.: h H 1. t\\ St. i".:IAJO weeks since we opened this L r.~ g ·i s l. a ltH' ,,, , IAH~ h d v f:! a g r· r,~ r'! d l: o c,~xtend the rE!porting tirne by thre~E~ days I so that not;J 1: h<:' c cw1m·i. 1:: hoH'! s must re!port by WE!dnesday, May 4, 1.(}88. I am also HousE~ that pl.(,~asP.d to 'i.nforrn · l:he the first rnE~E~ting will L.654 March /.9, 1988 Vol. XL be held Ofl Monday, Apri .l 11, al:. 9:30 a.m., hE~re in thE~ l.egisl.attJre, tAJhen l:hE!

Social Services Estimates Committee, tJnder t:he chair·mansh:i.p of the mE!tnber for St . John's North, w:i11 cons::i.cler Lhe c~st.:i.mat:t=!S of l:hE! Department of Health. For further notice, on Tuesday, Apr .. i.l l/. 1 t:.hr,1 Resotu'ce Cornrnitl:ee will consider the estimates of the D<·~par·trnr-~nl- of M:"i.nf~S. And, on tht=! s am e d a y I i n t h E! E~ v e~ rd. n g , t h E!

Co v r·H' nrnf'!l'li": S r·=! r v ·i c ('! s c omrni l· t E! c,~ I.•.J:.i. 11 consider the estimates of Housing. · Not,J 1 h;:·wing said ;:~ " ll 1--.hc:d:, f: t.-~JotJl.d assume there are no m : ist.tl'ld(:~r·st.and · i. ngs, r.llr·. SpE!i:lkerl and I lAd sh hon. rnernbE!rS good r· r'! ad i n g . T k n o 1.-~1 t h E! y t.-~ri ll n e (! d a Jot of time to find items to critici7e :i.n this particular budget. I wan