Newfoundland and Labrador Hansard — Members' Statements; Statements by Ministers — 22 November 2005 (45th General Assembly, 2nd Session, Vol. XLV No. 34)

2005-11-22

Newfoundland and Labrador — Debates (Hansard)

Newfoundland and Labrador Hansard — Members' Statements; Statements by Ministers — 22 November 2005 (45th General Assembly, 2nd Session, Vol. XLV No. 34)

2005-11-22

Newfoundland and Labrador — Debates (Hansard)

November 22, 2005 HOUSE OF ASSEMBLY PROCEEDINGS Vol. XLV

No. 34

The House met at 1:30 p.m.

MR. SPEAKER (Hodder): Order, please!

Admit strangers.

Statements by Members

MR. SPEAKER: Order, please!

This afternoon we have members' statements as follows: the hon. the Member

for the District of Bonavista South; the hon. the Member for the District of

Port de Grave; the hon. the Member for the District of Lake Melville; the hon.

the Member for the District of Cartwright-L'Anse au Clair; and the hon. the

Member for the District of Gander.

The hon. the Member for the District of Bonavista South.

SOME HON. MEMBERS: Hear, hear!

MR. FITZGERALD: Mr. Speaker, last Tuesday night, in fact a week from

today, I had the privilege of attending a firefighters' meeting in Little

Catalina, in the District of Bonavista South, and at that particular time the

long-term services of five firefighters were recognized for contributing in

excess of thirty years of service by each one of them as a firefighter in Little

Catalina. Mr. Speaker, the names of the recipients were: Jeffrey Dalton, Gerald

Dalton, Clarence Day, Frank Johnson, and Derek Rideout.

It is very fitting that the provincial government, this government, as other

governments, have recognized the longevity of people volunteering their time as

firefighters in this Province. Firefighters today go beyond the call of just

fighting fires. In fact, I think we should soon name them emergency response

teams, when you look at what they contribute, especially in rural areas, where

they not only attend to and respond to emergencies but also are expected to go

out and raise funds to buy equipment and, in some cases, to even buy

firefighting trucks and build the fire halls that those trucks are placed in.

Mr. Speaker, I, today, would like to congratulate those five individuals, and

I am sure every member of this Chamber will allow me to say thank you on behalf

of every volunteer firefighter in the Province of Newfoundland and Labrador.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Port de Grave.

MR. BUTLER: Thank you very much, Mr. Speaker.

Mr. Speaker, we all know that the year 2005 was designated as the Year of the

Veteran, a time for Canadians to reach out and give thanks to the men and women

who have served Canada in times of war and peace.

A celebration honouring those who fought in both World Wars and the Korean

War was hosted by District 2 of the Royal Canadian Legion in our area. It was

indeed a pleasure for me to participate with other members of this hon. House in

the planting of a Red Maple Tree, symbolizing the Canadian emblem and the

preservation of peace.

Mr. Speaker, I want to acknowledge people from the various branches of the

Royal Canadian Legion that fall under District 2: Corp. Matthew Brazil, Branch

9, Spaniard's Bay; Harbour Grace, Branch 15; Upper Island Cove, Branch 22;

Carbonear, Branch 23; Sgt. Levi Hollett, Branch 39, Blaketown; Brigus, Branch

65; and, Bay Roberts, Branch 32.

Following the tree planting, there was a reception and a dinner honouring the

veterans held at the Royal Canadian Legion in Carbonear. During the dinner, a

number of presentations were made to veterans by myself and other hon.

colleagues in the surrounding districts that cover those Royal Canadian Legions.

Mr. Speaker, I want to say congratulations to all the members of those Royal

Canadian Legions for congratulating and celebrating with other fellow veterans,

not only from my district but all over this wonderful Province of Newfoundland

and Labrador, in the Year of the Veteran.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Lake Melville.

SOME HON. MEMBERS: Hear, hear!

MR. HICKEY: Thank you, Mr. Speaker.

I rise in this House today to extend an invitation to my colleagues here in

the hon. House to attend the ninth annual Olympics of the North - the 2006

Labrador Winter Games.

This sporting and cultural event takes place every three years and is hosted

in the central Labrador town of Happy Valley-Goose Bay. Some 400 athletes and

community co-ordinators from as many as thirty communities will come together

from March 12-18, along with almost 650 volunteers, to celebrate the sporting

and cultural heritage of Labrador.

Contests will be held in the traditional skill-testing events such as Target

Shooting, Dog Sled Racing, Snowmobile Racing, Cross-Country Skiing, Snowshoe

Races, Northern Triathlon, Snowshoe Biathlon, and the Labrathon, which is a test

of the skill a trapper would need to survive in the bush in the Big Land. As

well, many more known events such as Ball Hockey, Volleyball, Darts, Badminton

and Table Tennis will take place.

Possibly the marquee event of the Labrador Winter Games would be the Northern

Games. This is a four-part competition held over two nights in a packed house at

the E. J. Broomfield Arena. This event is made up of the Labrador Hurdles, which

is a test of endurance. Over the Rope portion is a grueling test of both

strength and endurance as the athletes see who can pass over a taut rope the

most times. The Seal Race requires competitors to pull themselves along the

course using only their hands in a race format.

The final event is the One Foot High Kick in which athletes kick at a hanging

target of seven feet in the air at the outset of the event and increasing in

height until only one successful competitor is ultimately proclaimed the winner.

This meeting of the various peoples of Labrador, Mr. Speaker, is the pride of

Labrador - and in the fellowship that these games inspire and, in most events,

second to none in our region and indeed, our Province.

Mr. Speaker, the game's Chairman, Dusty Miller, and the games board, along

with a very competent staff, are well underway on the work to ensure that the

games will be the best ever. March is a beautiful place in the Big Land and I

invite all members of the House and indeed, people throughout the Province of

Newfoundland and Labrador, to come to Happy Valley-Goose Bay and to experience

the 2006 Labrador Winter Games.

Thank you very much, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

I wish to remind members that their statements, and members' statements,

should not exceed ninety seconds, a minute-and-a-half. We had one yesterday that

went considerably longer than that and the one we just heard now was

considerably longer than the standard time.

In fairness to all members, I ask members to constrain their comments to the

ninety seconds. The Speaker does not wish to interrupt during members'

statements; however, if he needs to, he will.

The hon. the Member for Cartwright-L'Anse au Clair.

MS JONES: Thank you, Mr. Speaker.

It gives me great pleasure to rise in the House of Assembly today to

acknowledge the beginning of the Commonwealth Women's Parliamentarians of

Canada.

While many countries around the Commonwealth had organized and prided

themselves on very active women's Parliaments for many years now, Canada has

been lax in its efforts and failed through the years to form such a valuable

entity.

I am pleased to say that this has changed. As parliamentarians from all

across Canada met in our Province in July, our Speaker gave a full day of the

schedule to women parliamentarians to meet and to constitute the inaugural

meeting of the Commonwealth Women's Parliament. As you know, many great

initiatives in this country got its start in this young Easterly Province of

Newfoundland and Labrador. Again, on July 19, Newfoundland and Labrador took the

lead for all women parliamentarians, and for a stronger Parliament in general in

our country.

With your indulgence, Mr. Speaker, I would like extend to you my sincere

gratitude for your support of our women's Parliament. To this regard, you have

led by example and you have encouraged all speakers of legislatures across this

country to support the newly founded sector of our Parliament. It was through

your inspiring words at the Speakers Table of Canada that all provinces and all

territories have accepted and supported this process. As a result of your

efforts, the Canadian Parliamentary Association has now agreed to set aside one

day of its regional conference each year for women Parliamentarians in this

country to discuss their issues.

MR. SPEAKER: The hon. member's time has expired.

Does the member have leave to conclude?

AN HON. MEMBER: By leave.

MR. SPEAKER: Leave is granted.

MS JONES: I apologize, Mr. Speaker, for the length of my statement today,

but I think it is very important to acknowledge the inaugural meeting of the

Canadian Women's Parliament and the fact that it started this year in our

Province.

I would also like to acknowledge, Mr. Speaker, and to thank all the women

that were involved in this process. I was very pleased myself to represent our

Legislative Assembly of Newfoundland and Labrador at that meeting. I especially

would like to thank and acknowledge the contributions of two of my federal

counterparts, the Hon. Sam Builte and the Hon. Sue Barnes.

The Newfoundland and Labrador Legislature will formally form our own branch

of the Canadian Women's Parliament tomorrow evening at a meeting called by

yourself Mr. Speaker.

In concluding, I would like to encourage all my female colleagues of the

Legislature to come out to that meeting and to get involved with the Canadian

Women's Parliament in Newfoundland and Labrador.

Thank you very much.

SOME HON. MEMBERS: Hear, hear!

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

MR. O'BRIEN: Mr. Speaker, I rise in this hon. House today to recognize

the life and accomplishments of a dedicated and compassionate Newfoundlander and

Labradorian. Mr. Speaker, Mr. Desmond Dillon of Gander was among the most recent

inductees into the Order of Newfoundland and Labrador.

Mr. Dillon is a renowned volunteer who has served the Canadian Red Cross,

Royal Life Saving Society, and the American Red Cross - to name just a few. He

has become a noted contributor to the global community, assisting with the

California earthquake, flooding in Manitoba, the Swissair disaster, the victims

of the Badger flood, and the efforts to help the displaced citizens from around

the world after September 11 attack. Most recently, Mr. Speaker, Katrina and the

New Orleans disaster.

Mr. Dillon is noted as being a humble man who seeks no recognition for his

outstanding accomplishments. In addition to his work all over North America, he

has provided great leadership to the Central Regional Health and Community

Services board from its inception to the present. As a social worker, he has

helped institute changes to the current child care legislation that have

bettered the lives of those in need and those who live in poverty in this

Province.

Mr. Speaker, I ask that all members of this hon. House join me in

congratulating Mr. Desmond Dillon on his induction into the Order of

Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

Statements by Ministers

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

SOME HON. MEMBERS: Hear, hear!

MR. E. BYRNE: Thank you, Mr. Speaker.

Mr. Speaker, I want to inform the hon. Members of the House of Assembly of

the progress in promoting our offshore oil and gas industry which was discussed

during the recent meeting of the Atlantic Energy Roundtable on Wednesday,

November 16.

As most people would be aware, the Atlantic Energy Roundtable brings together

my colleagues from other Atlantic provinces, federal cabinet ministers, as well

industry regulators, labour leaders, in an effort to build a strong and

sustainable future for the offshore oil and gas industry in Atlantic Canada and

indeed, in Newfoundland and Labrador.

Since its inception in 2002, both levels of government have worked to respond

to industry challenges without compromising our positions on benefits, safety of

operations, and the environment.

Among the important accomplishments, Mr. Speaker, resulting from this process

are: improvements to the regulatory system which directly reduces exploration

and development costs, and developing programs to build and enhance the

industrial supply and service capability.

At our meeting last week, the federal government announced amendments to the

regulations under the Canadian Environmental Assessment Act, whereby future

offshore oil and gas exploratory drill projects would be subject to a more

efficient screening type of environmental assessment, rather than the current,

more lengthy, comprehensive type of assessment. I am pleased this decision was

taken on the basis of sound science and sound public policy. In our view, this

is another step forward in making our offshore area an attractive place for

exploration investment.

While there has been marked progress, we believe that much more can be done.

I took the opportunity last Wednesday to highlight the significant milestones in

Newfoundland and Labrador's offshore industry. In the last two years these

include the continued successes of Hibernia, Terra Nova; first oil at White Rose

- on-time and on-budget; the start of preliminary discussions on the development

of Hebron-Ben Nevis; the amount of seismic work that has occurred just this past

season in the Orphan and Laurentian basins; and, of course, the recent news of

more potential at the Hibernia field.

We have heard the concerns from industry and governments, and have moved

towards addressing them, Mr. Speaker. Now we believe it is time for industry to

step up to the plate and fully recognize the opportunities that are before us in

this Province.

We want industry to invest more in exploration activity. We want to see

another project go ahead, offshore Newfoundland and Labrador and we are in the

process of hoping to realize that eventuality. Our past record has indicated

that while industry may say our offshore is high risk, there have been proven,

successful results on our three producing fields.

The Government of Newfoundland and Labrador will continue to participate in

the Atlantic Energy Roundtable to: support ongoing government efforts to renew

and modernize the regulatory regime; to build a strategic approach to address

priority research and development; and to continue to strengthen our supply and

service capabilities.

We will also continue to use this forum to bring our concerns to industry and

to the federal government, and it is our hope through this open dialogue we will

see more exploration and, as a result, other projects developed, that will reap

optimal benefits for the people of Newfoundland and Labrador.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

MR. PARSONS: Thank you, Mr. Speaker, and I thank the minister for an

advance copy of his announcement today.

It is nice to see that this government finally is beginning to acknowledge

some of the successes that were made by the former Liberal Administration -

SOME HON. MEMBERS: Hear, hear!

MR. PARSONS: - and which this government considers worthy of

continuation.

First of all, the Roundtable itself being created in 2002 was certainly

needed, i.e. you bring the stakeholders together in the industry. Instead of

having duplication, everyone who is concerned, whether it be federal government,

provincial government, the various energy ministers, the labour sector, get the

concerns on the table and you need not have all this red tape and duplication.

That was why it was started in the first place, and that is why it is a great

idea to continue it. It is a very constructive process. I applaud the government

for seeing that there was something worthy that was done by the former

administration, and that they will indeed continue.

You need to have streamlining of federal-provincial regulations, and again I

am pleased to see this administration acknowledge the success of the former

administration when it comes to the White Rose project, on time and on budget.

SOME HON. MEMBERS: Hear, hear!

MR. PARSONS: A great project which is now reaping benefits for this

Province, because somebody put together a good package a few years ago.

Also, the Laurentian Sub-Basin arbitration which was done on the watch of the

Liberal Administration -

SOME HON. MEMBERS: Hear, hear!

MR. PARSONS: - it is nice to see this government acknowledging the

success there. I applaud the government when they give credit when credit is

due, and they finally acknowledge that there are some things there, and I hope

the Roundtable continues for many, many years to come.

Thank you.

MR. SPEAKER: The hon. the Member for Signal Hill-Quidi Vidi.

MR. HARRIS: Thank you, Mr. Speaker.

Now that we do have a maturing oil and gas development offshore, it is time

for us to examine exactly where we are going with this and what we are getting

out of it. We do know that the operating cost for a barrel of oil extraction on

the Grand Banks is one-fifth or less what it is on the tar sands, yet our

royalties are just the same. These things have to be examined, Mr. Speaker, for

the future.

Mr. Speaker, we are all very proud of the White Rose project's first oil

the other day. The good news about that is that most of the work was done right

here in Newfoundland and Labrador, engineering and fabrication, and that should

be the standard for the future.

SOME HON. MEMBERS: Hear, hear!

MR. HARRIS: We do have some problems, Mr. Speaker, on the regulatory

side. I mean, yes, it is nice to streamline regulations but we haven't seen a

report, one year later on 160,000 litre oil spill off our shore this time last

year, yet to have a report as to what happened and what went wrong.

Mr. Speaker, there are things that do need to happen and can happen for the

benefit of Newfoundland and Labrador in our oil and gas industry as it develops.

One thing is, we would like to see more refining capacity in this Province. This

oil, in its raw state -

MR. SPEAKER: Order, please!

The hon. member's time has expired.

MR. HARRIS: By leave, Mr. Speaker?

AN HON. MEMBER: By leave.

MR. SPEAKER: Leave has been requested. Leave is granted.

MR. HARRIS: (Inaudible) further points, Mr. Speaker. Thank you.

We do need to have more refining capacity in this Province. We see this

resource going straight out of the Province to other parts of North America,

unprocessed and unrefined. We would like to see more of that happen here.

Secondly, Mr. Speaker, on the gas side, we haven't seen any development

yet, although there is some interest. There are some very innovative processes

now being talked about and proposed that can see us have natural gas liquids

from that reserve actually brought to this Province and processed right here

into further developments and further economic activities.

So, these are the kinds of exciting prospects that are there, Mr. Speaker,

but it requires a lot of work and a lot of determination on the part of the

government and the people of Newfoundland and Labrador to make this happen.

Thank you, Mr. Speaker.

MR. SPEAKER: The hon. the Minister of Human Resources, Labour and

Employment, and Minister Responsible for Labrador Affairs.

SOME HON. MEMBERS: Hear, hear!

MR. SHELLEY: Thank you very much, Mr. Speaker.

Mr. Speaker, I rise today to recognize November 22 as National Housing Day.

In support of this event, this morning I joined community and corporate leaders

in the launch of Raising the Roof 2006, downtown St. John's. Through the sales

of toques, this national fundraising campaign helps to serve those most at risk

for homelessness in our Province and, indeed, the country.

Mr. Speaker, I did take the liberty of taking forty-eight toques with me to

the House of Assembly today for all forty-eight members so that you can all

purchase them after the House session today at $10.

That there are still people in this day and age without a roof over their

heads is a source of concern to all members of our society. The need for

housing, not to mention the warm head wear, in a climate such as ours is

abundantly clear.

It is up to all of us to act to close the door on homelessness. The key to

achieving this goal is to develop community awareness. Raising the Roof is

Canada's only national homelessness charity, and last year, Newfoundland and

Labrador raised $14,000 to support this campaign. Elected officials, government

employees, and volunteers alike, recognize housing as a basic human need.

Throughout the winter, as we wear our Raising the Roof toques, we will be

reminded of those without a home.

Mr. Speaker, proceeds from this year's toque sales will go to four shelters

and supportive housing providers in St. John's: the Stella Burry Community

Services, the AIDS Committee of Newfoundland and Labrador, the St. John's

Native Friendship Centre Association, and the Salvation Army. These

organizations have recently built or are building new shelters and supportive

housing in St. John's.

Mr. Speaker, let me reaffirm that this government is indeed committed to the

cause of helping the homeless. Along with the federal government, we have

invested millions of dollars in community based homelessness projects in

Newfoundland and Labrador. We work closely with many of our partners and

community organizations involved with this campaign.

In 2004-2005, in partnership with the federal government, Newfoundland and

Labrador Housing Corporation spent approximately $100 million in support of

social housing programs in Newfoundland and Labrador. In St. John's alone,

under NLHC's Shelter Enhancement Program, some $300,000 has been provided

through partnership with groups such as: the Stella Burry Corporation, Choices

for Youth, the Kirby House and Lebra House. Other properties which have been

provided funding under the affordable housing program include the Salvation Army's

Wiseman Centre here in St. John's.

Mr. Speaker, we have also announced an increase in the minium wage in our

Province. We continue to provide income support in career services. We are

finalizing our property reduction strategy. Even so, we much continue to work

together towards addressing the homelessness.

In closing, Mr. Speaker, on behalf of the Government of Newfoundland and

Labrador, I extend congratulations and appreciation to everybody involved with

the St. John's Community Advisory Committee on homelessness and to everyone

involved with Raising the Roof campaign. Quite simply, your work is making a

difference in the lives of those who need it most and we are proud of your

efforts.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Port de Grave.

MR. BUTLER: Thank you very much, Mr. Speaker.

I thank the minister for an advanced copy of his statement, but I can assure

you, he read out more information than was on the statement that I was

delivered. Anyway, I got the gist of it.

Mr. Speaker, I, too, want to stand - I am glad that our hon. Deputy Premier

is in good form again today. I want to congratulate the minister for his

involvement in this initiative. It is a good program. I can assure you, we, on

this side of the House, support it 100 per cent. We ask the people all

throughout this Province to support the sale of the toques this year. We hope

that more than $14,000 will be raised this year to help those people.

I, too, want to congratulate the four groups that are listed here: the St.

John's Native Friendship Centre, Stella Burry Community Services, the AIDS

Committee of Newfoundland and Labrador, and the Salvation Army. They do

tremendous work and now they are carrying on providing shelters and so on.

Mr. Speaker, we have to realize that all of this is wonderful but we, all of

us together collectively, have to look at the problems that are encountering.

Homelessness is becoming even a bigger problem in our Province. We have to look

at our safety nets; that it is not downgraded. We have to address the roots,

where homelessness comes from. Some of them is unemployment; addictions, whether

it be drugs, alcohol or VLTs. We know that government is reducing the VLTs by 15

per cent, but we are bringing in KENO.

Mr. Speaker, I want to congratulate the minister, and we on this side

congratulate all those involved in this program.

Thank you very much.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Labrador West.

MR. COLLINS: Thank you, Mr. Speaker.

Our copy of the minister's statement does not jive with what the minister

read either; but, having said that, we would like to wish government and the

people involved a successful campaign on the sale of the toques.

Not that many years ago, Mr. Speaker, in our Province, homelessness was

something that we read about in the papers, that occurred in other cities.

Today, unfortunately, it is here in our Province at an alarming number.

Mr. Speaker, I would like to ask the minister what he has done, or his

department has done, to access money from the federal government of a $30

million program for housing that was announced prior to his government taking

over. Also, what has government done to access any funding from the $100 million

NDP budget that was negotiated with the federal government not that long ago?

What have they done in order to access the funding there?

We, too, Mr. Speaker, would like to thank the groups that are identified as

being involved, helping people who are homeless, and that includes the St. John's

Native Friendship Centre, Stella Burry Community Services, the AIDS Committee of

Newfoundland and Labrador, and The Salvation Army, Mr. Speaker, who, of course,

are active throughout most every community within our Province and do fantastic

work.

Thank you.

MR. SPEAKER: Further statements by ministers?

The hon. the Minister of Justice and Attorney General.

SOME HON. MEMBERS: Hear, hear!

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

Mr. Speaker, earlier today, Memorial University's Harris Centre released a

report on federal government presence in Newfoundland and Labrador. The report

provides an independent confirmation of the positions this government has

advanced with the federal government on this issue. While I encourage all

members to review the report in full, I wish to highlight today a few of the

report's findings.

With respect to federal employment, the report - this independent report -

confirms that Newfoundland and Labrador has taken more than its fair share of

reductions. Over the study period, from 1981 to 2004, federal employment in this

Province declined by 25 per cent, compared to a 5 per cent drop nationally.

In August of this year, my colleague, the Minister of Finance, released data

which focused on the period between 1990 and 2004. During this period, federal

employment in the Province declined by 39 per cent, compared to a decrease of 18

per cent across all provinces. As my hon. colleague rightly pointed out, had

this Province experienced an 18 per cent decline only, there would be an

additional 2,800 people working in our Province today. It is important to note

that this disturbing decline came at a time when our economy was struggling as a

result of the groundfish stock collapse.

The report's findings on federal executive positions in the Province also

warrant special attention. Our Province had the lowest number of these positions

across all provinces over the period 1997 to 2004, and the province's share of

federal executives was substantially less than its share of the national

population. Nova Scotia, with less than twice the population of our province,

has four times as many executive positions. P.E.I. and Newfoundland have almost

the same number of executive positions, notwithstanding the fact that

Newfoundland and Labrador has four times the population.

Mr. Speaker, regrettably, the trends identified by these numbers continue to

be reflected in decisions by the federal government. This Province has stood

united against federal decisions such as the removal of forecasting services

from the Gander Weather Office and the impending closure of the Public Service

Commission of Canada's provincial office. Faced with an independent

confirmation of our concerns, it is clear that the federal government must begin

to rebuild its presence in this Province. This government stands ready to work

co-operatively and collaboratively with the federal government to increase

federal presence in ways that serve the interests of both Newfoundland and

Labrador and of Canada, so that we can realize the dream that all of us share of

a proud and prosperous Newfoundland and Labrador within a strong and united

Canada.

Mr. Speaker, on behalf of the government, I would certainly like to thank the

Harris Centre for undertaking an independent study of this critically important

issue.

Thank you.

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

MR. REID: Thank you, Mr. Speaker.

I thank the minister for an advance copy of his statement today. I encourage

him to continue to fight with the federal government to protect services and

jobs in this Province. It is an age-old problem, as the minister said. Even in

this study alone they talked about going back to 1981. What I have found, my

experience has been, it does not seem to matter whether it is a Tory government

in Ottawa or Liberal government in Ottawa; the cuts continue. Two of the main

ones, at least from my perspective, representing a rural riding based in the

fishery, are the cuts to the science branch of DFO and other divisions at DFO as

well as the closing of the Gander Weather Office.

What I find hypocritical about this government up today talking about cuts to

the federal civil service in the Province is, just in the last two years they

have eliminated hundreds and hundreds and hundreds of jobs in the civil service

in this Province and they have cut many services to the people in parts of rural

Newfoundland and Labrador. I will just mention a few: the closure of HRE offices

around the Province; the closure of highway depots, and we have seen the results

of those kind of closures and cuts just recently. We see courthouses go. We see

school board offices, health care boards being eliminated, weigh scales, and the

list goes on and on. So, I say to the minister, you should look in the mirror

sometimes when you are condemning others. You should look in the mirror and see

what you are doing yourself.

Thank you very much, Mr. Speaker.

MR. SPEAKER: The hon. the Member for Signal Hill-Quidi Vidi.

MR. HARRIS: Thank you, Mr. Speaker.

This report confirms what has been well known in this Province for some time,

and Labrador in the form of employment is nothing short of disgrace, and that is

symbolized by the recent departure of the Public Service Commission from this

Province, the very organization that gives people access to federal jobs and

provides an opportunity for people to get resumes considered or to obtain

information, taken away from this Province within the last year. As the report

points out, over the last number of years, 25 per cent of the federal jobs have

gone. It is an absolute disgrace.

I would urge this government to do what it did on the eve of the last

election, and ask the federal parties and the federal leaders to give their

commitment to this Province of Newfoundland and Labrador for the upcoming

election as to what they propose to do to try and redress this disgrace, redress

this wrong, because it is something that shows a level of disdain for the people

of this Province when it comes to federal employment -

MR. SPEAKER: Order, please!

The member's time has expired.

MR. HARRIS: By leave, Mr. Speaker?

AN HON. MEMBER: By leave.

MR. SPEAKER: By leave.

MR. HARRIS: When it shows, Mr. Speaker, is that not only have we lost

more jobs than the rest of Canada during this period, but when employment

started increasing across the country by about 12 per cent, the increase in this

Province was only 1 per cent. So, this shows a definite, not only a trend but

are fewer federal civil servants in this Province than there are in the rest of

the country. That has to stop and that has to be fixed.

Thank you, Mr. Speaker.

MR. SPEAKER: Further statements by ministers?

Oral Questions.

Oral Questions

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

MR. REID: Thank you, Mr. Speaker.

Mr. Speaker, my questions are for the Minister of Fisheries and Aquaculture.

Yesterday, I referenced a media report from the Eastern Daily Express ,

a British newspaper that discussed FPI's recent purchase of the seafood

company in Great Britain. In the article, it stated that these operations would

grow and expand as a result of FPI importing Canadian fish for processing to

Great Britain. Nowhere in this

article did it say that these operations would be

processing shrimp from Canada. The only reference to shrimp was warm water

shrimp and, I say to the minister, we do not have warm water shrimp in the North

Atlantic.

Mr. Speaker, can the minister now tell me if FPI intends to ship shrimp from

Newfoundland and Labrador to Great Britain for processing?

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

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: Mr. Speaker, I take no responsibility for any

article

written in some press in the United Kingdom. What I know is that FPI is making a

concentrated effort to break into the largest cold water shrimp market in the

world, which is the United Kingdom, and cold water shrimp is what FPI intends to

market in Great Britain and in other parts of the European Union.

The other thing I say to the hon. gentleman is this: The same rules and

regulations that were attached to licences when he was a minister and when the

Member for Cartwright-L'Anse au Clair was a minister are attached to licences

today, and that is this: No shrimp can go out of this Province, once it is

landed in the Province, without being cooked and peeled in this Province, and

that has not changed and will not change, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

MR. REID: Thank you, Mr. Speaker.

We are finally getting a response from the minister.

Mr. Speaker, the only way to avoid a tariff on shrimp going into the European

Union is to have it processed in Europe. Is this what FPI intends to do with its

offshore quota for shrimp? Not the stuff that is landed by FPI and processed

here in the Province, but, as you know, Minister, FPI has two licences for 6,000

tons of shrimp. Is that the shrimp you are talking about that is going to be

going into the EU for further processing?

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

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: Mr. Speaker, that and more. FPI markets for Daley's, FPI

markets shrimp for Beothic Fisheries.

MR. BARRETT: Not any more.

MR. RIDEOUT: They do so.

Mr. Speaker, the hon. gentleman for Bellevue never knew what he was talking

about, and he certainly does not know today.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MR. RIDEOUT: Mr. Speaker, they market for shrimp companies in Quebec, for

other shrimp processors in this Province, for a whole array of processors, Mr.

Speaker, so that is where they are trying to go with this and that is why this

move is good for the industry and it is good for rural Newfoundland and

Labrador.

SOME HON. MEMBERS: Hear, hear!

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

MR. REID: Mr. Speaker, the minister should know that the biggest problem

we are having with shrimp going into the EU is the 20 per cent tariff on cooked

and peeled shrimp.

Mr. Speaker, last night I spoke to three processors in this Province who

process shrimp and they all agreed that the only way that FPI could get shrimp

into the UK or into the European Union without a tariff was to have the shrimp

processed in Europe.

This morning, I spoke to Mr. Patrick McGuinness of the Fisheries Council of

Canada - and I can give you his telephone number if you want it - and he

confirmed what these processors said, that the only way we could get shrimp into

the U.K. by avoiding the tariff was to have it processed in the U.K.

Mr. Speaker, I ask the minister: How will shipping of unprocessed shrimp to

Great Britain help create jobs in this Province?

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

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: Mr. Speaker, FPI's marketing strategy, by acquiring this

company in Great Britain, is to do something about the 20 per cent tariff. There

is no question about that. The shrimp will go into the United Kingdom cooked and

peeled, as I said. When you get it into the United Kingdom, in order to qualify

for a reduction from 20 per cent to 6 per cent, which is an advantage, by the

way, of 14 per cent - and the Leader of the Opposition said publicly there was

no advantage at all - you have to do something else with it. For example, in the

past it has been brined, for example, in the Netherlands. That could be done by

this company in Great Britain. That would qualify that product for a lower

tariff in Europe. That is the kind of strategy, Mr. Speaker, this company is

working on, that is the kind of strategy that will help impact positively the

shrimp production and processing in this Province, in rural parts of this

Province, and that is why it is worthy of support.

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. REID: (Inaudible) what he is talking about. Companies in this

Province have tried to do exactly what he is saying, by taking processed shrimp

from this Province and having it glazed in the EU, but it didn't work. We can't

avoid the tariff. Nothing of what you just said is going to help lower the

tariff on shrimp going in from that Province.

Mr. Speaker, to change gears just a little: Last spring on the Fisheries

Broadcast, when asked a question on what the future entailed for FPI in this

Province, Mr. Derrick Rowe, the CEO of FPI, stated that FPI will become a

shellfish operation. That is what he said, that the future for FPI will be a

shellfish operation.

I ask the minister: If this is the case, what will happen to Fortune,

Marystown and Burin? Have you discussed the future of these towns with the Board

of Directors of FPI?

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

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: Mr. Speaker, here is what is not going to happen. Is any

fish being shipped into Europe for processing the fish that was traditionally

processed in Newfoundland and Labrador? I asked the Opposition in the press

release yesterday, Mr. Speaker. No there is not, no there is not going to be.

What is happening here relates to shrimp only, shrimp processed in this

Province, shrimp processed by FPI, shrimp processed by other processors in the

Province, and it is a marketing strategy for Europe.

Mr. Speaker, we should be wishing the company success, we should be hoping

that the company succeeds, so that they can create employment and sustain

employment in rural Newfoundland and Labrador.

Yes, Mr. Speaker, I have talked to FPI, the members of their board and their

acting CEO, about Fortune, about Harbour Breton, about Bonavista, about Port au

Choix, about Marystown, about everywhere that they operate in this Province.

SOME HON. MEMBERS: Hear, hear!

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

MR. REID: And what did you find out?

Mr. Speaker, the minister still has not told the people of this Province how

the purchase of this plant in Great Britain is going to benefit the people in

this Province. He is not going to bring processed shrimp from Newfoundland and

Labrador into the EU and avoid a tariff by doing it.

Mr. Speaker, when in Opposition, this minister and his colleagues accused us

of doing nothing to monitor FPI. I can tell the minister that when FPI tried to

lay off 700 people, they did not do it under our watch. That is more than I can

say is happening under your watch.

I ask the minister: Why is this government being so lax with regard to

monitoring FPI and allowing this company to do everything they want with their

operations, including taking our products to the UK for processing?

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

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: Mr. Speaker, not because the Opposition say something is a

fact it is a fact. As a matter of fact, when the Opposition says something is a

fact in this Province - Mr. Speaker, Russell Wangersky had it right: when this

hon. crowd puts out a press release quoting something to be a fact, you had

better employ somebody to go research it.

This Opposition, in my almost thirty years in this House, is the most

irresponsible, the most ineffective, the most uncaring, the worst Opposition,

Mr. Speaker, in thirty years in Newfoundland and Labrador!

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

I remind all members that our time is elapsing.

The Chair recognizes the Leader of the Opposition.

MR. REID: Thank you, Mr. Speaker.

Mr. Speaker, the Minister of Fisheries can use those old-time political

antics all he wants, of screaming, shouting, and insulting people, but I will

tell the minister that I am going to continue to ask the questions on behalf of

the people of this Province and we will get the answers even if they do not come

from you!

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

I ask members for their co-operation.

The Chair recognizes the Leader of the Opposition.

MR. REID: Thank you, Mr. Speaker.

Mr. Speaker, he talks about Mr. Wangersky. Mr. Wangersky is having the same

problem with that government as I am, that he cannot get an answer from them.

That is the reason he is taking you to court, to get information that you will

not release to him.

SOME HON. MEMBERS: Hear, hear!

MR. REID: Mr. Speaker, yesterday, outside of this House, this Minister of

Fisheries said that an inquiry into FPI would not happen before the company's

internal review was complete. He continuously states that he is all over the

file; yet, he is allowing the company to do a review that could result in plant

closures and hundreds of jobs lost. What kind of oversight is this on behalf of

the government?

I ask the minister: If you are all over this file, why are you not willing to

do an inquiry before it is too late, before plants are closed and people are

laid off? (Inaudible) you are all over the file?

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The hon. the Minister of Fisheries and Aquaculture.

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: Mr. Speaker, I sat in this House in 1982 with an Opposition

that was decimated to eight people, but with John Efford they were more

effective than all that hon. crowd put together.

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: Mr. Speaker, I said in this House yesterday that there may

be grounds for an inquiry. I am not saying there will not be at the end of the

day, but neither am I prepared to say today that there will be an inquiry, Mr.

Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Bay of Islands.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MR. JOYCE: Mr. Speaker, as the general public are well aware, our

highways are not maintained to the same level as they have been in past years.

With the closure of thirteen depots, and the layoff of over 100 workers, it has

a detrimental effect on our highways. The former minister stated on November 7,

2005, that equipment operators on the West Coast were called back, and on the

Avalon should be recalled by next week. The current minister has stated that the

workers in the Avalon region will not be called back to work until December 1,

and only 80 per cent of equipment is operational. Which minister has given the

correct information - the current minister or the former minister?

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

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: Mr. Speaker, here is an example of integrity in research.

The hon. gentleman who just asked the question is the worst researcher that I

have ever come across in my political career. The fact of the matter is - first

fact, Mr. Speaker, there is not a depot closed down in this Province today that

was not closed down last year. All the depots that were winterized are now back

on stream. Second fact, all of the employees who were put on temporary layoff -

101 or 102 of them, whatever it was - every single one of them have been

recalled. Therefore, nothing that the hon. gentleman said was factual but that

do not surprise me, Mr. Speaker, because the hon. gentleman would not want the

truth or a fact to stick in the way of what he is trying to do here.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Bay of Islands.

MR. JOYCE: Mr. Speaker, I just wish that was all backupable', what

the minister just said, because I cannot find it.

SOME HON. MEMBERS: Hear, hear!

MR. JOYCE: Mr. Speaker, to justify the closure of these thirteen depots,

the former and current minister has given many different versions of events to

justify the lack of maintenance on the highways equipment. With the winter

season upon us, snow and ice is on our roads and I ask the minister: How many

positions which would be working on the maintenance of highways are not filled

in the maintenance department of the Department of Transportation and Works?

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

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: Mr. Speaker, here is what is backupable': We have spent

$40 million more on highway maintenance and pavement in this Province than that

hon. crowd did!

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: We have a $50 million program to resurface 25 per cent of

the Trans-Canada Highway. Backupable', Mr. Speaker!

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: We are spending $40 million on the construction of the

Trans-Labrador Highway. Backupable', Mr. Speaker!

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: We, Mr. Speaker, have gotten the Trans-Labrador Highway into

the National Highway System.

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: We have gotten Botwood into the National Highway System,

parts of Route 430 into the Trans-Canada Highway system, all backupable',

and we are proud of it!

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The Chair recognizes the Member for Bay of Islands.

MR. JOYCE: Mr. Speaker, if this wasn't such a serious issue, I guess we

all could laugh.

When I have in my hand nineteen positions for maintenance workers who are

supposed to be back on highways, protecting our equipment, putting our equipment

on our roads, when I am out in the Bay of Island this last weekend with four

pieces of equipment down because there is no one to do the work, it is not

laughable, Mr. Minister. It is not laughable, I can assure you that. You can

rant and rave, but go out on the highways and check it out yourself.

Mr. Speaker, following reports that were in the public domain on the Argentia

Access Road, the minister stated publicly, by reading the accident report, that

the road was dry. It was later found out that the report submitted by the

supervisor indicates that this was not the case.

I want to ask the minister to table the actual report on the road conditions

that morning, to show that the information he is putting out is, indeed, based

upon facts at the time. Will he table that report here in this House today?

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

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: Mr. Speaker, that will be a decision for the present

minister and I will certainly make sure that the minister understands that

request was made here in the House today.

MR. SPEAKER: The hon. the Member for Bay of Islands.

MR. JOYCE: Thank you, Mr. Speaker.

I am glad to see the minister is finally getting serious and realizes the

seriousness of this issue.

SOME HON. MEMBERS: Oh, oh!

MR. JOYCE: Mr. Speaker, the truck from Placentia that is supposed to do

the roads was broken down due to the broken lights. Like in other regions of the

Province, this truck was not operational due to staffing cutbacks and late

recalls in the department that prevented maintenance from being done earlier.

Will the minister produce to the House the work order that shows the

maintenance to this vehicle was not completed and it was not inoperable at the

time?

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

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: Thank you, Mr. Speaker.

Mr. Speaker, when serious questions are raised by the Opposition they will

get serious answers. When questions are laced with political rhetoric, political

innuendo, things that are not facts, untruths, irresponsible statements, they

will be answered by this side in the same vein.

Now, Mr. Speaker, what the hon. gentleman is getting on with there, again, is

not factual.

AN HON. MEMBER: (Inaudible).

MR. SPEAKER: Order, please!

MR. RIDEOUT: Mr. Speaker, I said it is not factual and therefore, the

maintenance work has been done. There is maintenance to be done all the time.

Let me tell the hon gentleman, we doubled the budget for capital equipment

acquisition this year, from $3.25 million to $6.5 million.

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: There are thirty new pieces of equipment, Mr. Speaker!

AN HON. MEMBER: Prove it.

MR. RIDEOUT: Prove it? There are thirty new pieces of equipment being

delivered to the Province as we speak. It did not happen on their watch, Mr.

Speaker. The roads were falling apart; the equipment was falling apart. Nothing

(inaudible).

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The Speaker recognizes the Opposition House Leader.

MR. PARSONS: Thank you, Mr. Speaker.

My question is for the Minister of Natural Resources.

Minister, when the Stephenville mill issue came to the forefront this past

summer it was primarily over the energy cost issue, and there were two parties

involved: Abitibi and government. This cumulated into the framework agreement

which was announced on October 26, which government unilaterally announced and

then walked away, only to watch the company bring the union into the fray and

attempt to strip the union contract.

What have you, or your government, done since October 26 to bring this to an

end? The Premier is touted as a great negotiator. When are you going to close

this deal and stop the torture of the employees in that community?

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. E. BYRNE: Thank you, Mr. Speaker.

Mr. Speaker, what is going on in Stephenville between the company and their

union, really - and I will quote the Leader of the Opposition on a television

interview - is basically torture of a people in a region.

First of all, the assumption that you make, I say to the Opposition House

Leader, that this is somehow our ability to close this, is incorrect. We have

done what was necessary in order to keep that mill open, supported by the local

community, supported by the local union, I say to members opposite, and that is

the framework agreement that we put forward.

I agree, also, I say to the Opposition House Leader, as the Premier and

myself and my colleague, Minister Burke, and my colleague, Mr. Hodder, have said

to the union in Stephenville time and time again that this government is not

going to participate with a corporation like Abitibi to put pressure on the

unionized employees to go in and strip a contract, or attempt to strip a

contract, that was duly negotiated a year ago.

Mr. Speaker, the fact of the matter is this, that we are in touch on a daily

basis with those who are involved, particularly our unionized officials. The

negotiation is ongoing between the employer and the employee, but I want to

assure everyone in the Stephenville region, in particular the unionized

employees and those who depend for their livelihoods on it, that this government

did exactly what we were supposed to do. We anted up for the people in

Stephenville and we are not going to stand by and watch a company (inaudible).

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The hon. the Opposition House Leader.

MR. PARSONS: Thank you, Mr. Speaker.

Not good enough. The Premier has washed his hands of this file now. He does

not want to be all over this file any longer. Government cannot wash its hands

of the file and you cannot simply say we tried. To try and not to succeed still

adds up to failure.

When are you going to close this deal? When will the people of this Province,

and in particular, the people of Stephenville, know that they have some hope?

What are the options? Will you tell the people of this Province and the people

of the Bay St. George area, what are the options and what are you doing minister

to close this deal?

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

SOME HON. MEMBERS: Hear, hear!

MR. E. BYRNE: Thank you, Mr. Speaker.

Mr. Speaker, the Official Opposition need to come to a truthful conclusion on

where they are. The middle of August, the Leader of the Opposition says:

essentially, we must do whatever is necessary, as a government, to ensure there

is a power contract. Quoted in statements that I can table for him if he wants

to see them - which we did. We entered into that arrangement. We provided

exactly what the company was looking for with respect to a power arrangement,

which was a net $10 million benefit a year.

The day that we announced that, the Leader of the Opposition - I suppose he

represents everybody over there - gets out and says that he has a bitter taste

in his mouth because he did not think we should do that. So, which is it? The

fact of the matter is - which is it?

SOME HON. MEMBERS: Oh, oh!

MR. E. BYRNE: Do we support the arrangements or do we not? Because if it

was left in his hands we would not even be in a position to talk about it today.

The fact of the matter is this, Mr. Speaker, when it comes to the

negotiations that are going on behind or between the employer and the unionized

officials, the unionized officials and bodies in that mill understand intimately

where this government is, and that is squarely behind them.

SOME HON. MEMBERS: Hear, hear!

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

MR. PARSONS: Thank you, Mr. Speaker.

The latest financial data, public information, put out by Abitibi, indicated

that the company has already taken a write down on certain company assets, which

includes the Stephenville assets. Does this mean the company has written off

Stephenville? Has government also written off Stephenville? If not, when is

government going to stop what has been its ostrich mode since October 26, take

its head out of the sand and speak to Abitibi and get this moving again?

SOME HON. MEMBERS: Hear, hear!

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

SOME HON. MEMBERS: Hear, hear!

MR. E. BYRNE: Mr. Speaker, this government has always doubted the

sincerity with respect to the company's objectives. That is why we have

challenged them both publicly and privately, and will continue to do so. But

what the people in the Stephenville region need not be concerned about was:

Where were we? We anted up. We made an arrangement that keeps, what we felt, was

the (inaudible) from Abitibi.

The fact of the matter is this, that if you want to look at the type of

corporation we are dealing with, I say to my hon. colleague, look at what they

did in your own colleague's district just two weeks ago. On one Monday, they

went in and said: We are keeping Number 7 machine going for two years and we are

going to make a $60 million investment. That was on one Monday. On the second

Monday, another spokesperson comes out and says: There must be some

misunderstanding here. The fact of the matter is, that on one Monday they went

in, in good faith, told the union locals, the community leadership and then the

Concerned Citizens Committee one thing and then told us that as well, and on the

following Monday told a completely different story. That is the type of company

we are dealing with. I ask you, and members opposite, we have done whatever we

can and will continue to do whatever we can but members in this House must stand

against -

MR. SPEAKER: Order, please!

MR. E. BYRNE: - (inaudible) companies of this nature.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Signal Hill-Quidi Vidi.

MR. HARRIS: Thank you, Mr. Speaker.

My question is for the Minister of Environment and Conservation.

Mr. Speaker, the minister, about half-an-hour before the House started,

announced a program on residential energy efficiency that will not start until

January in some cases, in February in other cases, of next year, which is worth

about $7 million over five years; a total program for this Province of about

one-third of what Nova Scotia has done.

Why did the minister wait until now to do it, and what thermometer is he

operating on so that he is going to wait until January or February of next year

to have an energy efficiency program for houses in Newfoundland and Labrador?

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

SOME HON. MEMBERS: Hear, hear!

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

I thank the member for his question, but I have to correct some inaccuracies,

Mr. Speaker.

The program that was announced in this Province for the energy conservation

portion of the program is $6.9 million. The program announced in Nova Scotia for

energy conservation is $10 million. They have twice the population we do. Our

per capita spending for the same program is $13,

whereas theirs is $11. We are

in a better position than Nova Scotia for the program that I have announced

today.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Signal Hill-Quidi Vidi.

MR. HARRIS: Thank you, Mr. Speaker.

The program in Nova Scotia was $25 million for home rebate and efficiency

programs, and is being all spent at once. He is talking about something over a

five-year period, which works out to about $1.2 million or $1.4 million this

year, starting some time in January and February.

The Nova Scotia program and the P.E.I. program have elements such as a free

energy audit, a free programable thermostat, and also, in some cases, in the

case of P.E.I., for example, someone trained already, since October, going into

your home and performing an actual upgrade. Why didn't he choose elements like

that, Mr. Speaker, that could actually deliver this program before the winter

heat season gets really upon us?

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

SOME HON. MEMBERS: Hear, hear!

MR. T. OSBORNE: Mr. Speaker, this program that we are announcing is a

long-term plan, it is a multiple-year plan. The program in Nova Scotia, as well,

is a multiple-year plan. We are announcing $6.9 million on energy conservation,

$9 million on rebates, which puts us very close to what Nova Scotia is

announcing when you take out the $10 million that they have put aside for

upgrading government buildings. What we are doing for upgrading government

buildings is in a different pot of cash, not included in the Residential Energy

Efficiency Program that we have announced today.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Signal Hill-Quidi Vidi.

MR. HARRIS: Mr. Speaker, the P.E.I. program, started over a month ago,

has already trained individuals who are available to go into people's houses,

do the energy upgrade, and probably have already completed the energy upgrade in

many cases, long before the heavy home heating season has started. Why did this

government wait until now, and why are they putting it off until January and

February of next year? Are they trying to save money? Are they trying to

postpone spending money? Why aren't they doing what is needed for the people

of Newfoundland and Labrador right now?

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

SOME HON. MEMBERS: Hear, hear!

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

The program that we have announced today will start in less than two months

from now. I think the program that we have announced today is a very solid

program; it is a very effective program. The program that we have announced

today is a multiple-year program. We have put together an interdepartmental

committee that is chaired by my department to look at how we can add to the

program for next year.

Mr. Speaker, the program that we have announced today is tied - as well, the

$1000 top-up is tied to the federal program, which does not start until January

of 2006. They are providing $3,500 for residents on the Island, $5,000 for

residents in Labrador. We have agreed to top that program up by $1,000, and that

is the reason for the time frames.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Port de Grave.

MR. BUTLER: Thank you very much, Mr. Speaker.

I have just the one question, and very straightforward question, directed to

the Minister of Tourism, Culture and Recreation. I ask the minister: Where is

the watch, and where is the appraisal?

MR. SPEAKER: The hon. the Minister of Tourism, Culture and Recreation.

MR. HEDDERSON: Mr. Speaker, in response to that, the watch is in my

possession.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The hon. the minister.

MR. HEDDERSON: I am trying to give a timely response here, Mr. Speaker,

in saying to the hon. member on the other side, that watch is in my possession -

a watch that was given to me as a protocol gift, as a Minister of the Crown; a

watch that I received graciously; a watch that I certainly took great pleasure

in receiving by the very fact that it was given to me on behalf of the

Government of Qatar. It is still in my possession.

Again, through the conflict of interest that I have put in last March, the

hon. member knows that the commissioner has indicated that there was nothing

that I did improperly.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The time allocated for Question Period has expired.

The hon. the Leader of the Opposition.

MR. REID: Thank you, Mr. Speaker.

I did not want to interrupt Question Period, but I have to bring to your

attention a statement made by the Government House Leader.

In an earlier statement, he said that I made a comment that government should

not make an agreement with Abitibi that entailed giving the company $150

million.

Mr. Speaker, at no time did I ever make that comment. I ask the minister to

rise now and withdraw this statement because it is completely false.

MR. SPEAKER: I assume the member is rising on a point of order to make

his statement. I am not sure whether there is any response to the point of order

from the government.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: In this particular matter, members will know that there are

occasions when points are made in the House that the Chair cannot verify these

comments, and the point of order fails because sometimes we have to accept two

different versions of the same event in these particular matters, so the Chair

rules there is no point of order.

Presenting Reports by Standing and Special Committees. Tabling of Documents.

Notices of Motion.

Notices of Motion

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

MR. OTTENHEIMER: Thank you, Mr. Speaker.

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

"An Act To Regulate The Practice Of Dietetics". (Bill 51)

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

"An Act Respecting Dispensing Opticians." (Bill 52)

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

"An Act Respecting The Registration And Licensing Of Hearing Aid

Practitioners". (Bill 53)

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

"An Act Respecting The Licensure Of Practical Nurses". (Bill 54)

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

"An Act Respecting The Practice Of Massage Therapy". (Bill 55)

Mr. Speaker, I give notice that I will on tomorrow ask leave to introduce a

bill entitled, "An Act Respecting Occupational Therapists". (Bill 56)

I give notice that I will on tomorrow, Mr. Speaker, ask leave to introduce a

bill entitled, "An Act Respecting The Registration Of Psychologists".

(Bill 57)

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

"An Act To Amend The Optometry Act, 2004". (Bill 58)

Mr. Speaker, I give notice that I will on tomorrow ask leave to introduce a

bill entitled,

An Act To Amend The Pharmacy Act". (Bill 59)

Thank you, Mr. Speaker.

MR. SPEAKER: Further Notices of Motion. Answers to Questions for which

Notice has been Given. Petitions.

Petitions

MR. SPEAKER: The hon. the Member for Labrador West.

MR. COLLINS: Thank you, Mr. Speaker.

Mr. Speaker, I rise today to present a petition on the topic I presented one

on yesterday which is Sunday hunting.

The petition reads, Mr. Speaker:

WHEREAS hunting on Sunday is not permitted in our Province; and

WHEREAS there are many people in our Province who work Monday to Friday,

leaving them only one day a week to hunt; and

WHEREAS hunting is probably the only activity that people of our Province are

prohibited from doing on Sunday; and

WHEREAS not being able to hunt on Sunday has a negative impact on local

hunters and outfitters;

We the undersigned residents petition the House of Assembly to direct the

government to change the regulations of this Province to allow hunting on Sunday

to take place.

Mr. Speaker, I spoke yesterday on this topic and I used a few examples as to

how people are inconvenienced when they are not permitted to hunt on Sunday. Mr.

Speaker, it also plays a big role in the outfitters of this Province as well,

when they have people who pay big dollars to come to this Province to hunt, and

they hire a lot of people to work in their -

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The Chair is having difficulty hearing the hon. Member for Labrador West. I

wonder if members could keep their conversations at a lower level so we can all

enjoy the hon. member's presentation.

MR. COLLINS: Thank you, Mr. Speaker.

As I was saying, these outfitters employ a lot of people in this Province for

short durations, particularly during the fall and winter season. Not being able

to hunt on Sunday certainly creates a problem for them as well; but, more to the

point - and I know there are some people who may be against hunting on Sunday,

but I think the minister, through his department and in collaboration with other

Members of the House of Assembly, can come to some arrangement that will be

suitable to all.

I ask the minister to undertake to do this as soon as possible because the

hunting season for this year, for big game on the Island, is drawing to a close;

however, the hunting for big game in Labrador is only about to begin and will

carry on throughout the winter. So, it is important that the minister take

action on this immediately so that we are not subject to the same rules and

regulations that we have been for the past number of years, whereby you travel a

great distance on a Friday night, you hunt all day Saturday without success, and

on the way back Sunday morning you are 100 miles from anywhere, the only people

you will run into, if anyone, are other hunters. If you happen to see big game

on your way back, simply because it is Sunday, you are not allowed to take your

gun out of the case and get your animal. That does not make sense, Mr. Speaker,

and it is time that this government recognize that and introduce the change that

is necessary so that people are allowed to hunt on Sundays, in accordance with

the change in the regulation.

Thank you.

MR. SPEAKER: Further petitions?

Orders of the Day.

Orders of the Day

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

MR. E. BYRNE: Thank you, Mr. Speaker.

I think we are going to begin some progress on second readings this

afternoon, Mr. Speaker. Order 11, second reading of a bill,

An Act To Amend The

Financial Administration Act. (Bill 46)

MR. SPEAKER: It is moved and seconded that Bill 46,

An Act To Amend The

Financial Administration Act, be now read a second time.

Motion, second reading of a bill, "An Act To Amend The Financial

Administration Act." (Bill 46)

MR. E. BYRNE: A point of order.

MR. SPEAKER: A point of order has been raised by the Government House

Leader.

MR. E. BYRNE: The Leader of the Opposition said that I had made an

accusation that he never supported the arrangement. I do want to make an apology

to the Leader of the Opposition. It was not him who said it. It was his

colleague, Yvonne Jones - so I do apologize - when she said: I don't think we

are in any position in this Province to be offering out $200 million or $300

million to prop up any company.

I apologize, Sir. It was not you who said it; it was your colleague from

Cartwright-L'Anse au Clair.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

To the point of order, again the Chair rules that there is no point of order;

however, the Chair appreciates any clarifications that can be made.

The Chair has called second reading of Bill 46,

An Act To Amend The Financial

Administration Act.

I recognize, I do believe, the Minister of Finance and President of Treasury

Board.

MR. SULLIVAN: Thank you, Mr. Speaker.

The purpose of this amendment is very brief. It is just to clarify the

current wording of the act. In fact, we feel the authority is there under the

Loan Act already. It has been an area where it has occasionally been raised, and

certainly in the AG's report, whether it should be included as a provision

under the Financial Administration Act. This will eliminate the requirement to

include it in the Loan Act, and it will authorize the borrowing authority for

sinking fund purposes. When you borrow for a sinking fund, really, in a sense,

it is debt retirement; because, as you borrow for sinking funds, the sinking

funds are put aside to go toward debt retirement, so it is very straightforward,

a housekeeping rule.

I do not have any further comments. It is only a one-paragraph aspect and it

is very straightforward.

MR. SPEAKER: The hon. the Member for Grand Falls-Buchans.

SOME HON. MEMBERS: Hear, hear!

MS THISTLE: Thank you, Mr. Speaker.

MR. REID: Thank him for the red cap first.

MS THISTLE: Yes, first, before I start, I would like to thank the

Minister of Human Resources, Labour and Employment, because they have chosen a

great colour this year for those hats.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

I acknowledge that these caps may be very attractive, but I am sure that we

should not use them as props in the House.

The hon. the Member for Grand Falls-Buchans.

MS THISTLE: Thank you, Mr. Speaker.

I will certainly use it to my advantage - thank you - outside the House.

I would like to make a couple of comments on Bill 46,

An Act To Amend The

Financial Administration Act. I would like to ask the Minister of Finance: What

is the value of funds that are currently in our sinking fund? Is there any

indication by this government to transfer any of these sinking fund revenues to

our current long-term debt? I do not know if he has heard my question or not. I

do not know if he has heard my question, but I would like to ask the Minister of

Finance: Is there an intention of this government to use any of the sinking

funds that are currently in our Treasury to pay off our long-term debt? I would

like to ask him that question first.

MR. SULLIVAN: (Inaudible).

MR. SPEAKER: Order, please!

I do believe that, this being second reading, we are debating the general

principle of the bill; however, if members wish to do an exchange, they can with

leave.

I turn the floor to the hon. Member for Grand Falls-Buchans.

MS THISTLE: Thank you, Mr. Speaker.

Well, I guess it is not entirely necessary at this point if the minister does

not wish to answer, but I think it was pretty minor. I was interested in finding

out the value of the current funds that are now in our sinking funds sector of

government Treasury and, also, if there is any intention by this government to

use that money to pay off long-term debt.

MR. SPEAKER: With leave, the minister can answer now or he can wait,

because if speaks now he may close debate.

AN HON. MEMBER: (Inaudible).

MR. SPEAKER: I do understand an agreement has been reached.

The hon. the Minister of Finance and President of Treasury Board.

MR. SULLIVAN: Thank you, Mr. Speaker.

The minister who was once responsible for the Financial Administration Act

should know that every single bit of money put into sinking funds is put there

to pay the debt when the debt comes due. That is what sinking funds are all

about. So, sinking funds are used to pay off debt. I said in the beginning, we

are not changing anything. All we are doing is, we are getting authority, where

the administration act is now in the Loan Act - it is just to clarify. It is a

simple procedure. It has nothing to do with putting funds there.

All sinking funds, there are statutory requirements under the act to put

aside money under sinking funds to pay debt when it comes due, and each year we

will allocate money in the sinking funds, $40 million or $45 million, whatever

the case may be, and when the debt comes due we have allocated money to be able

to retire that debt when it comes due. That is the nature of sinking funds. That

has been in since before I came into this House. It is still there. There are no

changes there, absolutely no other thing. It is only the authority under the

Financial Administration Act, we are making that particular amendment. There is

nothing changed with it. I am sure the member should know how that operates

under sinking funds. The question she implied is: Are we going to use it?

Absolutely, just the purpose of what it is.

MR. SPEAKER: The hon. the Member for Grand Falls-Buchans, to continue to

speak on second reading.

MS THISTLE: Thank you, Mr. Speaker.

Yes, as the minister just alluded to, this is a housekeeping issue, this

particular bill that is now before the House. Yes, there are many occasions when

the sinking funds that have been allotted for a certain debt are over and above

the required amount and many times an extra payment will be made to the

long-term debt, but I will get into more questions of this nature as we get into

the next reading.

Thank you.

MR. SPEAKER: Is it the pleasure of the House that the said bill be now

read a second time?

MR. HARRIS: Mr. Speaker?

MR. SPEAKER: I am sorry. I apologize to the Member for Signal Hill-Quidi

Vidi. I do believe he wishes to speak to this particular bill.

The hon. the Member for Signal Hill-Quidi Vidi.

MR. HARRIS: Yes, I do, Mr. Speaker. I wasn't sure, when we were

preparing to have questions and answers back and forth, whether the critic was

actually finished speaking. I did want to have a few words to say on this piece

of legislation, it being a financial piece of legislation having to do with the

provincial debt. I want to talk about that, and about the debt as well.

First of all, though, before I start, I want to thank the Government House

Leader for his kind remarks yesterday, when he rose to speak on my recent

announcement that I would be resigning from the leadership of my party, and

asking our party to have a procedure in place to select a new leader. I do want

to thank him for his kind remarks yesterday.

While I am still here, Mr. Speaker, I do intend to carry on in the kind of

vigorous debate that we have been participating in since I have been here, since

1990, and in that regard on this particular bill which is related to how this

government manages the debt of the Province in terms of establishing sinking

funds, the bill itself seems, to me, to be an appropriate way to ensure that we

can provide sinking funds to look after our provincial debt. It is an important

way to do things.

Some of the obligations that the Province have are not paid off like a

mortgage, Mr. Speaker. We do not pay blended principle and interest on our debt.

We have bonds that might come due all at once in ten years time or six years

time or five years time, and the sinking fund is a form of savings account that

is built up over a time so that when the time comes to pay off or roll over the

debt, there is a substantial portion of capital there to roll into the payment

of that debt.

So, a sinking fund is a fancy government finance term for a savings account

of some kind that money is put into over time so that when the full principal

balance of a bond becomes due, that money is there to pay off that debt. It is a

part of the way that debt is managed by the Province and the income from those

Sinking Funds offsets our borrowing costs over time. Mr. Speaker, it is a

positive thing and when we are doing our borrowing we should be able to adjust

the Sinking Funds while we are at it.

While I am on my feet, Mr. Speaker, I do want to say something about our

provincial debt because our Minister of Finance loves to talk about the debt.

You would not know but he liked the debt, Mr. Speaker, the way he talks about it

so much.

MR. SULLIVAN: I would like to get rid of it.

MR. HARRIS: He says he would like to get rid of it but I have not heard

him say anything about what he is going to do to get rid of it when it comes to

the most significant part of our debt, the one that is out of control, the one

that we have not reigned in, and this government has not reigned in, and that is

the unfunded pension liability. The minister has been there for two years. For

two years, Mr. Speaker, he has been there and he talks about the debt. He has

used this as an excuse to take away a provision that the previous government put

in, for example, to ensure that there were not going to be school fees in our

Province. He used the debt as an excuse to take away drugs that had been put on

the formulary to help people who have Alzheimer's. He has used it as an excuse

not to expand programs that are necessary to help people in this Province. But,

Mr. Speaker, the debt that we have today has to be understood, because the debt

that we have today comes in three parts. We have to talk about it that way, Mr.

Speaker, because there are three significant, separate, different parts to our

debt. When you add them all up, it looks pretty grim, but when you divide them

up into parts, it looks like it can be managed and can be fixed.

Let me talk about those three parts of the debt because the three parts are

found pretty easily, Mr. Speaker, or two of them are anyway; two of them are

found pretty easily in our Budget. When the Estimates come out every budget year

- last spring they came out and the debt is set out in an Exhibit to the

Estimates. It is called the Public Sector Debt. That includes a number called

the Provincial Direct Debt, which is $7.2 million. It sounds like a lot of

money, but in relation to the debt of this Province over the last dozen years,

in fact, it has not kept pace at all with our revenues. Our revenues have grown

much faster than this debt. As a percentage of our GDP, in fact, the provincial

debt is down considerably, and that is an important measure, as the Minister of

Finance knows. This was remarked upon by the financial advisors back in the

spring, that the reduction in the debt-to-GDP ratio has been reduced by 20 per

cent. So, that is a significant fact. Our public sector debt, our direct debt

is, in fact, extremely manageable in terms of our interest costs going down as a

percentage of our revenue year after year.

Another portion of our debt is called the Crown Corporation and Other Debt.

Now, the majority of that, Mr. Speaker, is Newfoundland and Labrador Hydro debt.

I want to just say that, yes, this is part of the Province's overall

responsibility. If Newfoundland and Labrador Hydro were to be unable to pay the

debt, the Province is on the hook as a guarantor for that debt. But, in fact,

the Province makes money on that debt. They make money on it. There is a

guarantee fee of 1 per cent paid by Newfoundland and Labrador Hydro to the

government every year for that debt. It may be worth $100 million, or more.

Every year the government is making money on that debt. So, let's not call

that a problem. That is, in fact, probably - from the Province's point of

view, fiscally speaking - an asset. It earns revenue for this Province, for the

taxpayers. Now people have to pay their bills. People have to pay their electric

bills because it is the customers of Newfoundland and Labrador Hydro who pay

that debt and are responsible for that debt primarily, not the taxpayers of

Newfoundland and Labrador. That is $1.4 billion of the debt.

There is other debt, Mr. Speaker, that is guaranteed by the government in

terms of housing, student loans, municipalities. In fact, even debt that the

government does not guarantee, like the City of St. John's, for example. Even

debt that the government does not guarantee is listed here as part of the public

debt of the Province. So, when the minister wants to talk about how bad things

are and raises the number as high as he can, he includes debt that the

government is not even responsible for. Now, that does not mean to say that if

for some reason the City of St. John's got into trouble, was about to default

on their debt, that the Province would not step in. That is not to say that it

would not happen, but it is not something that the Province is directly

responsible for and the taxpayers had to reach into their pockets each and every

year to look after and to manage. So, it is wrong to say that it is a burden on

the taxpayers of Newfoundland and Labrador. Yes, it is there. It is what is

called a contingent liability.

So, if Newfoundland and Labrador Hydro were somehow to go bankrupt, the

people of Newfoundland and Labrador would have to pick up the pieces. Well, that

is not going to happen, Mr. Speaker. In fact, the Newfoundland and Labrador

Hydro debt makes money for the people of Newfoundland and Labrador, but that is

another $2.6 billion. So, we have $7.2 billion and $2.6 billion. When you add

them together you get $9.8 billion. But, guess what, Mr. Speaker? Something that

we just talked about, Sinking Funds. They are Sinking Funds that this bill is

about. They are $1.3 billion in Sinking Funds. Now, that is in the savings. We

are not even talking about the $2 billion that the minister picked up last

summer. There is $1.3 billion in Sinking Funds, our savings account. That $1.3

billion has to be subtracted from the public debt. So we are down, in terms of

the actual provincial direct debt, to less than $6 billion. That is the

mortgage. That is the one we have to pay the mortgage on. That is the one we are

paying interest on every year, $6 billion, and the interest on that is being

reduced every single year as a percentage of our revenues, is down now to around

12 per cent, and it has been reducing every year for the past number of years.

Now, Mr. Speaker, that is the actual money that the Province owes. Now, there

is another number - and this is the one that is used to frighten people, to

frighten the animals, Mr. Speaker, the one the minister likes to talk about but

does nothing about. He talks about it, and maybe when he speaks to close debate

he will tell us what he is going to do about it. I hope he does because he has

not told the people of the Province yet. Maybe he can tell the House this

afternoon. We have something called unfunded liabilities. This is not something

that came upon us yesterday. It was not discovered yesterday. The accountants

started putting it on the books only two years ago, Mr. Speaker. It never even

showed up on the books. The unfunded pension liability - the legacy of

governments of the past actually spending the money that they were supposed to

be contributing to the pension funds.

So, going back to the 1960s and the 1970s, when the government was incurring

pension liabilities for its staff and for teachers, the government was taking

from people's salaries a pension contribution and they were spending it. They

were using it to pave roads, to build schools. They were using that money. They

did not put it in a fund. They did not put it in a pension fund. There was no

such thing as a pension fund. There were pension obligations but no pension

fund. That did not change until the 1980s, Mr. Speaker, and in the 1980s the

government set up a pension fund, but what did they put into it? They only put

into it the contributions that they were taking from people's checks. They put

that into a fund and that became the pension fund. If a government employee or a

school teacher was making a pension contribution equal to 3 per cent, 4 per

cent, 5 per cent or 7 per cent of their wages, that money was taken out of their

check and put into a pension fund. The government contribution which was

supposed to be equal to that was never put in. We have a shortfall that has

grown over the years and it has gotten bigger over the years. Of course,

eventually the accountants got around to insisting that governments across the

country actually look at this as an obligation and something that should reflect

upon government's credit worthiness because of their willingness or

unwillingness or ability to look after and finance their pension obligations.

This is not the first government to talk about it. I remember being in this

House back in 1990 when former Premier Clyde Wells talked about unfunded pension

liabilities. We have been talking about it for a long time and we have done some

things about it. We have increased the contribution rate for many pensions. We

have almost, and I say almost, fixed one of the pensions. The Public Service

Pension Plan is almost fixed, and a lot of credit for that has to go -

AN HON. MEMBER: To Brian Tobin.

MR. HARRIS: The member says Brian Tobin. I would say a lot of credit for

that has to go to the Canadian Union of Public Employees and the Newfoundland

Association of Public Employees who, together, brought in actuaries as part of a

negotiating effort in 2001 and showed the government how they could fix that

plan over a thirty-five year period. That plan, with the exception of some

tweaking that this minister I am sure knows all about and is going to tell us

about in a minute -

AN HON. MEMBER: (Inaudible).

MR. HARRIS: He wants to do an awful lot of tweaking but that is alright.

Maybe he is going to do it, maybe he has a plan, because he has not told anyone

about it for the last two years. He has been there for two years. In fact, two

years ago, and this is very interesting, Mr. Speaker, two years ago - I may be

running out of time but I am sure hon. members opposite will give me some leave

if I am. Let's talk about plans, because two years ago in November of 2003

when this government took office the Minister of Finance was very concerned

about the financial picture of the Province, and well he might be, Mr. Speaker.

We were all concerned about the financial picture of the Province. In fact in

the last election all three parties committed, Mr. Speaker, to balancing the

budget over a four year period.

Let me tell you what the Minister of Finance said in November of 2003, very

shortly after he was sworn into office as the Minister of Finance. He said that

he expected the Province's accrued deficit to be in the range of $750 million.

He said: Whether that is realistic or whether we will exceed that we will

certainly see in due course. It is not a bright picture. Then he said: What we

are going to do over the next four years is we are going to actually have a

balanced budget on the cash consolidated side. On the consolidated cash side

over four years we are going to have - the first Tory budget will have a

deficit, but there is to be a balanced budget in four years time on a cash

consolidated basis.

Mr. Speaker, what does that mean? Well, we have two parts of our budget. We

have the cash budget and we have what is called the accrual budget. The accrual

budget is what you owe, what you owe every time you undertake an expenditure.

Let's say, for example, you have an unfunded teachers' pension, and if you

hire a twenty-three year old teacher tomorrow you have to add to your deficit,

you have to add to your provincial debt. The former Auditor General knows that.

If you hire a school teacher today, you have to add a certain figure, and an

actuary will tell you exactly how much you have to add to your provincial debt,

because in thirty years time when that teacher retires you are not going to have

enough money there at the current rate of contribution to pay that teacher's

pension in thirty years time. That is what the accrual budget is all about.

That is the one that this minister announced the other day. That is the one

that he announced the other day that is all taken care of for this year. In fact

he has a $1.5 million surplus projected for this year based on that accrual

budget. This is a long-term thirty years of problems that he has solved for this

year based on the windfall that he received since last March; way, way ahead of

schedule, Mr. Speaker. That is something that we were all hoping to do in eight

years, and it is done now. What that means - and this is very important. These

are long-term problems and some of them require long-term solutions. I think the

minister will acknowledge that.

When you look at the solution to the unfunded pension liability in the Public

Service Pension Plan there was a thirty-year solution; a certain contribution to

be made by the employees, a certain contribution being made by the government on

an ongoing basis, and the government being required to put in extra money every

year. I think it was in the order of $70 million. If they did that every year

for the next thirty years that would, for the most part, solve the unfunded

liability in the Public Service Pension Plan. In fact, Mr. Speaker, the

employees and the public service are actually paying more than it would take to

satisfy the actuarial demands of their pension to make up for what governments

of the past did not do. There have to be some adjustments and the minister is

going to tell us about that in a minute, because they did not adjust for the

increase in the overall salary budget of the Province. That is something that

was supposed to be part of the deal but got left out at the end.

There are unfunded liability problems and the minister will probably tell us

how much. It depends what the actuaries say from year to year. It depends on the

interest rates and it depends on the long-term projections of interest rates.

These are long-term problems and these are problems that will deal with

obligations of the Province over the next ten, fifteen, twenty, in some cases

thirty years. We do need long-term solutions. We do not have them yet. As I say,

the minister, I hope, will tell us about them.

When you look at the Province's public debt, Mr. Speaker, the three

elements are as follows: the net direct debt; the guaranteed debt; and there is

the unfunded liability debt. The net direct debt, in my view, Mr. Speaker, in my

judgement, is quite manageable. I do not know if the minister will agree. The

minister might say: Do you want to be like Alberta, would you rather have no

debt? We would all rather have no debt, Mr. Speaker, but people who live in this

Province, if they want to buy a house they go into debt, if they want to buy a

car they go into debt in most cases. Some people even go into debt to go on a

holiday. Mr. Speaker, debt is part of the way you do business. Debt is a part of

the way people live. They borrow money. In fact, Mr. Speaker, if the people of

this Province had to operate the way the government is required to operate and

have a balanced budget, they would not be able to buy a house. The way public

finance works, if you go out and build a building or pave a road, spend $30

million on road paving that might last you thirty years or twenty years, that

has to be accounted for in the year in which you borrow or else you go into a

deficit.

Individual family financing does not work like that. If you buy a house in

one year you are paying for it over a twenty-year period or a twenty-five year

period, in some cases longer, in some cases shorter. People manage their ongoing

obligations in that way. Our existing net direct debt of around $6 billion, when

you net out the sinking funds, is actually the mortgage that we are paying, and

that, in my judgement, is fairly manageable.

There may well be questions about whether or not the Hydro debt is higher

than it should be in terms of a debt to equity ratio. That is something for

Hydro to solve. That is something to be resolved by government and by the Board

of Hydro. It is not something that the taxpayers of Newfoundland and Labrador

are going to have to pay into.

The unfunded pension liability, principally here - and I think that is the

exact number the minister will say - we have a significant problem with the

Teachers' Pension Fund. We have a significant problem with the Teachers'

Pension Fund and the minister knows this issue very well. I see that I only have

a minute left. I hope that the minister when he rises on his feet will talk

about that, because what we have seen, Mr. Speaker, in the last six months in

this Province is a gigantic reversal of this government's fortunes to the

point that this minister should have had, and should be bringing into this

House, a mini budget saying: We have all this new revenue and we are going to

use some of it to look after certain problems of our debt. We are going to use

other portions of it to bring back some of the programs that we cancelled. We

are going to use some of it to provide relief for the people of this Province.

We are going to provide certain increases that need to be supplied to the people

of this Province who are receiving Income Support, for example, people who need

medical transportation, people who need drugs to be able to get their fair piece

that they need for their medical conditions. All of these things are crying out

for help and this minister should be bringing in a mini budget instead of just a

fiscal statement saying: We have taken all that money, we are putting it in our

back pocket, we are going to use it to pay off the cash deficit, but we are also

going to use it to pay off the accrual deficit. He should not be doing that, Mr.

Speaker. He should bring in a new plan and tell us how that money is going to

help us solve our problems in the long run as well as the short term.

Thank you, Mr. Speaker.

MR. SPEAKER: Order, please!

The member's allotted time has expired.

If the Minister of Finance and President of Treasury Board speaks now, he

will close debate at second reading.

The hon. the minister.

MR. SULLIVAN: Thank you, Mr. Speaker.

I just wanted to add, there are a lot of inaccuracies in what the Member for

Signal Hill-Quidi Vidi said, and I will point them out. Number one, when you

borrow for a house and you might mortgage it for $100,000 or $200,000, you have

a value in that house and it is paid off in a period of time. We record on the

books of this Province tangible capital assets. We include the acquisition of

tangible capital assets. We include the amortization appreciation of tangible

capital assets and they are reflected in our financial statement. I am not sure

if the member is aware of that but that is a fact.

There is also more debt than he talked about. There is another piece of debt

other than the three he talked about that he hasn't even made reference to,

$1.2 billion on post-retirement liabilities, which means the government today

pays 50 per cent of the health care costs of everybody working for government

and everybody who retired. We pay 50 per cent of those costs. We have run up a

bill now, if we stopped the clock today, for those in the service, we would have

to pay out $1.2 billion to be able to meet the future needs of the health plans

that we agreed to pay 50 per cent of.

AN HON. MEMBER: When? In five years?

MR. SULLIVAN: When they incur it.

AN HON. MEMBER: Over how many years?

MR. SULLIVAN: It is just like a mortgage. It is $1.2 billion we have to

pay. In other words, if we said to people - if we want to get that debt off our

books, we have to tell the people: When you retire, we are not going to pay any

of your health plan.

We do not propose to do that, Mr. Speaker. We are not proposing that. It is

real debt, and we are counting. He talked about sinking funds. If he followed

the financial statement I released at mid-term, we net off sinking funds; we net

off all those things. In our $12 billion debt, I will tell him what is there:

$4.4 billion of unfunded pension liability; $1.2 billion of post-retirement

liabilities.

MR. JOYCE: Sit down!

MR. SULLIVAN: The Member for Bay of Islands, not in his seat, is yelling

back and forth around the House. I am trying to explain and answer the questions

the Member for Signal Hill-Quidi Vidi asked. If he wants to interrupt and doesn't

want to hear it, I will certainly do it at another time when he is absent from

the House.

I will make this point before I sit down. If I am not interrupted again, I

will make the other points.

MR. JOYCE: (Inaudible).

MR. SPEAKER: Order, please!

MR. SULLIVAN: Mr. Speaker, the Member for the Bay of Islands is shouting

from his seat. He is not supposed to be speaking when he is not in his seat, and

he should stand and be recognized if he is in his seat.

We counted $4.4 billion unfunded liability. If you attended the news

conference, or read it, or followed the Web site, or read the documents of

government, you would find out.

AN HON. MEMBER: (Inaudible).

MR. SULLIVAN: I will get to that first. I will correct your inaccuracies

first, and then I will get to how we are going to fix it. How can you fix

something when you do not know what is wrong and you do not have the facts? That

member does not know the facts. That is like saying: How do you know when you

are going to get somewhere if you do not know where you are going.

MR. JOYCE: (Inaudible).

MR. SPEAKER: Order, please!

MR. SULLIVAN: One point two billion plus retirement liabilities, and the

remainder of that debt, when you take these two away, leaves $6.4 billion as the

net debt of debenture debt and other related debt, in addition to the five point

six for post-retirement liabilities and unfunded pension liabilities.

Another aspect that he mentioned, he indicated: How are we going to deal with

it? - read a statement I read two years ago. He said: We are doing it too fast;

we have eight years to balance it. Then he said: How are you going to deal with

debt? Here is how you deal with debt, and here is the plan.

AN HON. MEMBER: (Inaudible).

MR. SULLIVAN: I will tell you where we are heading. The plan, first of

all, is to stop adding to debt if you are going to deal with it. We faced $1

billion of debt two years ago from the former government. It put us so far down,

we didn't think we would ever get out of it. We did get to - the first year,

we closed at $913.6 million deficit. I will be tabling the public accounts - it

will be ready for tabling shortly - and you will see last year's debt is in

the ballpark, I will say, of $500 million. The debt for this year, hopefully -

hopefully - we will balance the budget. The price of oil that we get is $52 a

barrel. I think I saw Brent today at $53, which means we get below Brent. It may

drop below our projections if it goes any lower, but if it stays where it is

then we should, hopefully, balance the budget this year.

Here is what you do with debt. First of all, you have to stop adding to debt

before you can deal with it. How are we going to deal with it? I have put a

proposal to Cabinet. We are looking at long-term financial viability of dealing

with our debt and our unfunded liability. How can you deal with it when you are

spending $1 billion more than you are taking in, in a year? The only way to deal

with debt is to have the fiscal flexibility to not be spending more than you are

taking in, and stop adding to it. That is one of the reasons why.

A lot of the information he made - here is where we got there. Two years ago,

or when they had the federal election campaign, prior to that, when we went out

with the Blue Book, people laughed and said - people in this House - how are you

going to do it? One of the things you are doing in your platform, the federal

government has to pay more. They said, you are hanging your hat on getting out

of our fiscal dilemma on the federal government.

Since that, the record speaks for itself. During tough negotiations on

equalization with Ottawa - the Premier was there, and I know how much effort he

put into it - we extracted between $50 million and $100 million, depending on

(inaudible) out of equalization. We got a Health Accord that is putting in an

average of almost $50 million a year extra for each year. We got an Atlantic

Accord that is putting hundreds and hundreds of millions of dollars extra into

our coffers. This year, with the price of oil going up - I read a former member,

I saw his name in the paper today, he was running and he said the price of oil

they are taking for. Little does he realize that the price of oil went up and

will give us $300 million more than we budgeted, but it would be clawed back

under equalization had we not gotten an accord to protect it and had we not

gotten a fixed equalization pot for the two-year period. It would have gone in

one hand, out the other. We were lucky the price went up, absolutely, but were

we lucky we can keep it? No, it was tough fighting under the Atlantic Accord.

That is why our fiscal situation has improved. That is why we are getting out of

debt in our Province.

What are we going to do about it? We are looking now that we are not going to

be spending more than we are taking in - rolling out. We are looking at rolling

out a way to deal with the issues you raised, that I am very concerned with, and

an issue that I put forward. Over the next period of time we will deal with this

issue because we are in a position now where we can stop adding to debt and

start to deal with the debt that is out there. It is a very serious position.

AN HON. MEMBER: What are you going to (inaudible)?

MR. SULLIVAN: We are not going to tell you yet, I say to the member,

until we announce it. We will announce it in due course, I will say to him. We

will announce it in due course. There are proper processes and procedures to

follow, I will tell the member, and he will not be the last to find out but he

will not be the first to find out. I will tell him that.

Mr. Speaker, there are numerous aspects to dealing with this. We have a

serious problem. He said, a little tweaking to fix the Public Service Pension

Plan. (Inaudible) by 2033 - we are now at 50 per cent and we will be there in

2033, and we need $2 billion now to get it on an even keel. That is a lot of

tweaking, $2 billion to get the Public Service Pension Plan fully funded when

other jurisdictions around this country, a lot of them, have fully funded plans.

We need $2.3 billion to fix the Teachers' Pension Plan. We need tens and

tens of millions to fix the Uniformed Services Pension Plan - $4.4 billion. That

is a lot of tweaking. A little tweaking to fix it, a $2 billion tweak. That is

what it is to fix it.

He was not factual on what we are reporting. He indicated - we do include

tangible capital assets. If you look in the financial statements we release each

year, and in budget, there are net additions of tangible capital assets and

there is an amortization shown through these. They are in the statement. We have

added that.

The member said they were never recorded. The public accounts of our Province

has always recorded, to my knowledge, way back since long before I came here. I

cannot go back to the 1950s and say it, but the public accounts of the Province

have always recorded those aspects of the unfunded liability and pension plans,

to my knowledge. Certainly since I have come in this House, I can speak for

that. They have been recorded. In spite of what the member says, that is

absolutely false.

He will find out in due course, but you cannot fix debt when you keep adding

to debt. You increase your risk. You pass the burden on to others. You increase

the burden for everybody when you do that.

I will end with saying that this bill here, and this paper, has absolutely

nothing to do - I just wanted to answer the question and not avoid answering

them - has absolutely nothing to do; it is just a little technical procedure to

include -

AN HON. MEMBER: (Inaudible).

MR. SULLIVAN: It is not tweaking either. The Loan Act gives authority

right now to do it, and now the Financial Administration Act will. You could

call it housekeeping there. It is just how it is administratively delivered

under this particular act.

With that, I move to close second reading on the bill.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Is it the pleasure of the House that Bill 46,

An Act To

Amend The Financial Administration Act, be now read a second time?

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

Carried.

CLERK: A bill,

An Act To Amend The Financial Administration Act. (Bill

46)

MR. SPEAKER: This bill has now been read a second time. When shall this

bill be referred to a Committee of the Whole House?

AN HON. MEMBER: Later.

MR. SPEAKER: Later.

On motion, a bill, "An Act To Amend The Financial Administration

Act," read a second time, ordered referred to a Committee of the Whole

House presently, by leave. (Bill 46)

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

MR. E. BYRNE: Thank you, Mr. Speaker.

Order 10, second reading of a bill, "An Act To Amend The Municipal

Financing Corporation Act," Bill 47.

Motion, second reading of a bill, "An Act To Amend The Municipal

Financing Corporation Act." (Bill 47)

MR. SPEAKER: It is moved and seconded that Bill 47, "An Act To Amend

The Municipal Financing Corporation Act," be now read a second time.

The hon. the Minister of Finance and President of Treasury Board.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Thank you, Mr. Speaker.

This particular bill here is one that would make is consistent with the

Financial Administration Act and the Hydro Corporation Act. What this does:

Right now, if the Municipal Financing Corporation wants to borrow it goes to

Cabinet and gets approval to borrow, then it comes back, and the Minister of

Finance is responsible to go to the markets and borrow and then go back to

Cabinet a second time. It is cumbersome, it is not consistent with the Financial

Administration Act, it is not consistent with the Hydro Corporation Act, and

sometimes when the market is there, by having to wait to go back to Cabinet, you

could lose the opportunity to maximum your borrowing and your price, and it

could fall through and it could cause you to borrow at a higher rate. It is

giving the authority to line it up with others, so that you don't have to go

to Cabinet twice, when a decision is made to borrow for specific municipal

funding and other types of funding that would be covered. Actually, it is

municipal financing funding that would be under this specific bill.

MR. SPEAKER: The hon. the Member for Fortune Bay-Cape la Hune.

MR. LANGDON: Thank you, Mr. Speaker.

As the minister said, I guess this piece of legislation makes it consistent

with the Financial Administration Act and less cumbersome on whoever the

minister might be, rather than going back to the Cabinet more than one time. I

can see being able to do that, but the bottom line for all of us - regardless if

it is under the Municipal Financing Act or the Corporation or under the Minister

of Municipal Affairs, that is really not the big question, because at the end of

the day the government will be responsible for the debt. I guess what is

important is how much will be spent on the municipalities in the Province

regardless of who is in control of it, especially those in the rural part of the

Province.

I will conclude with that and speak in Committee, Mr. Speaker.

MR. SPEAKER: The hon. the Member for Signal Hill-Quidi Vidi.

MR. HARRIS: Thank you, Mr. Speaker.

I also want to speak in support of this legislation because it does make the

operation of the Province's finances more efficient. As the minister says,

there may be opportunities when particular circumstances ought to be taken

advantage of without having to go back to Cabinet, so I support that.

I do want to say this, Mr. Speaker - partly in response to what the minister

said on the last bill - that he's not the only one who understands the

Province's finances. We understand that the unfunded pension liability is

significant and serious, but the $2 billion that he is talking about is not due

and owing tomorrow. We do not have to reach into our pockets tomorrow and come

up with $2 billion to look after the unfunded pension liability. We know the

minister has $2 billion in the bank from the Atlantic Accord. We know he has

another $1.5 billion in Sinking Funds in the bank; $3.5 billion. We are not

saying that is available to provide for hospitals today or tomorrow. That is

something that is required over the long term, to look after long-term debt and

to look after revenue that we are going to accrue over the next several years.

So, we understand that, but the same thing happens on the other side. The $2

billion in unfunded pension liability that he is talking about, or the amount

that is owing on the Public Service Pension Plan, that is being looked after by

an additional payment by the workers of this Province who are putting in an

additional 1 per cent over and above the actuarial cost of their own pension.

They are putting in more than they have to put in to pay for the pension, and

they are doing it over the long run and will be doing it for the next

twenty-five or thirty years. The government is committed to putting an

additional $70 million a year into that pension fund.

MR. SULLIVAN: Sixty.

MR. HARRIS: Sixty million. Well, maybe if it was $70 million we would not

have a problem. That is the kind of tweaking that I am talking about, Mr.

Speaker.

MR. SULLIVAN: (Inaudible).

MR. HARRIS: He says if they need it - if they have a hundred and twenty.

But, whatever it is, there has to be some change made to do it but we do not

need $2 billion tomorrow to fix the problem. That is my point, Mr. Speaker. I

think the minister actually understands that.

I want to say, Mr. Speaker, he is not the only one who understands the

finances of the Province, that these are long-term problems. They were created a

long time ago. It took a long time for us to get where we are today and it is

going to take us a long time to solve them. So, you cannot go waving around

these long-term obligations and say: Oh, my, oh, my, the sky is falling in. It

is like somebody with a mortgage of $100,000. I mean, some people cannot sleep

at night because their mortgage is $100,000, but their house might be worth

$200,000 or $150,000 and they may be paying it off over the next twenty years.

Other people find it quite easy to sleep at night because they know they can pay

off a mortgage of $50,000 or $40,000 or $70,000.

We are in a position, for example, on the regular debt that we have, to make

our interest payments, which take up about 10 per cent to 12 per cent of our

revenue. Not bad. Not bad, really, when it is compared to other provinces, and

when it is compared to the - now, the minister is whispering some other numbers

here. There may be other numbers but I am talking about the direct debt now. I

am not talking about the imagined debt and the debt that is not owing for the

long term. There may be interest costs, notional interests costs, on this

unfunded liability that get added. I am saying on the direct debt we do not

really have a significant problem. We have to solve the unfunded pension

liability, but we are not going to solve it in one week or in one year. We do

not have to come up with $2 billion or $3 billion next year to fix it. The

problem with the pension fund is that there is not enough contributions being

made on an annual basis to cover the long-term obligations. When that is fixed

the problem will be resolved. It is like your bank coming to you and saying you

are not paying enough to discharge your mortgage. If you paid an extra $50 a

month your mortgage would be in good shape, but that does not mean it is going

to go away. You just have to pay an extra $50 a month to straighten out your

situation. That is the analogy that I am making.

Now, in the Province's financial picture the number might not be $50 a

month, it might be more like $50 million a month that you would have to come up

with, but the revenues of this Province are in excess of $4 billion a year and

ways have to be found to solve some of these problems so that these long-term

problems will have long-term solutions so that we do not have to go around

talking about the sky falling in every time somebody wants to spend some money

on a necessary program in a Province with the highest rate of child poverty in

the country, the highest rate of unemployment in the country, the highest rate

of childhood obesity in the country and children going to school hungry

everyday. These are the problems that we have to fix. We can also fix the

long-term problems by having long-term solutions. We cannot just take money that

happens to come our way, throw it against the debt and ignore the needs of the

people. That is the point that I was making. That is the point that I will

continue to make every opportunity that I get in this House because it is

important for the people of Newfoundland and Labrador to understand that, yes,

we have long-term debt problems and we have to find solutions, but that does not

mean we have to make many people in our Province suffer in the short-term to

solve these problems.

Thank you, Mr. Speaker.

MR. SPEAKER (Fitzgerald): Order, please!

The hon. the Minister of Finance. If the minister speaks now he will close

debate on second reading.

The hon. the Minister of Finance.

MR. SULLIVAN: Thank you, Mr. Speaker.

I will just thank both of the members there for supporting this bill. It is

one that will facilitate the process.

I do want to just add that, with reference to some of the comments, we are

only paying interest on the debt. We have not been able, over the last number of

years, to reduce debt. We have increased debt and we are just keeping up by

paying the interest. I think we will reduce it from about $1.7 billion last

year, or the year before, to this past year of $940 million. So, we are making

strides in reducing our interest on the debt. So, that is encouraging. There are

a couple of reasons for that. One is that while we are not adding to debt as

quickly as we used to, it was that the interest rates - when debt comes due you

roll them back in at a much lower rate because interest rates are down. So,

these are advantages we have been trying to capitalize on.

Once again, I thank the members for their support and the expeditious moving

of this bill.

MR. SPEAKER: Order, please!

Is it the pleasure of the House that the said bill, Bill 47,

An Act To Amend

The Municipal Financing Corporation Act be now read a second time?

All those in favour, aye'.

SOME HON. MEMBERS: Aye.

MR. SPEAKER: All those against, nay'.

Carried.

CLERK:

An Act To Amend The Municipal Financing Corporation Act. (Bill 47)

MR. SPEAKER: This bill has now been a second time. When shall this bill

be referred to a Committee of the Whole House? Now? Tomorrow?

MR. E. BYRNE: Later today, Mr. Speaker.

MR. SPEAKER: Later today.

On motion, a bill, "An Act To Amend The Municipal Financing Corporation

Act," read a second time, ordered referred to a Committee of the Whole

House presently, by leave. (Bill 47)

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

MR. E. BYRNE: Thank you, Mr. Speaker.

Order 8, second reading of a bill,

An Act To Amend The Insurance Companies

Tax Act. (Bill 49)

MR. SPEAKER: It is moved and seconded that Bill 49,

An Act To Amend The

Insurance Companies Tax Act be now read a second time.

On motion, second reading of a bill, "An Act To Amend The Insurance

Companies Tax Act." (Bill 49)

MR. SPEAKER: The hon. the Minister of Finance and President of Treasury

Board.

MR. SULLIVAN: Thank you, Mr. Speaker.

I guess three general aspects to the bill. One - it is covered in the first

two clauses there - is that government is looking at, instead of annual payments

there, they would be able to collect and submit - most companies submit their

taxes, like deductions for Income Tax, EI and CPP, on a monthly basis. This will

allow companies to forward on a monthly basis. So, we will have more timely

submissions of monies coming into government. That is the nature of that.

Also, right now if someone does not agree with an assessment, they have to go

to the courts, to the Trial Division. We are adding in the sections - that is

referenced there in clauses 3 and 4, to have an appeal process before it goes to

that level. At least there is an appeal to the minister. They will have an

opportunity. He might be able to address those concerns without having to go to

the courts on it. That should save, hopefully, time and money and get it

resolved, if that is successful.

Also, in reference to fines; the last sections are pertaining to fines. The

fines are identified. They are not exceeding $100 for each day of failure to

comply or 10 per cent of the tax that is unpaid. So, that is to allow it to

bring it in line with the amounts that is in other legislation and so on.

So, these are the key points here in this bill. With that, I will finish my

introduction here on the second reading of this bill, Mr. Speaker.

MR. SPEAKER: Order, please!

The hon. the Member for Grand Falls-Buchans.

MS THISTLE: Thank you, Mr. Speaker.

I am pleased today to stand in support of Bill 49,

An Act To Amend The

Insurance Companies Act.

One thing I h

Document details

CollectionNewfoundland and Labrador — Debates (Hansard)
Citation2005-11-22
Typehansard
Volume / chapter2005-11-22
Languageen
Formathtm
SourcePROVINCIAL
Identifierf8486423f69b941374ac261a43779da222605eaf

Source file is stored in the law ingest library (htm).