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April 26, 2016                                                                    GOVERNMENT SERVICES COMMITTEE

 

Pursuant to Standing Order 68, Kevin Parsons, MHA for Cape St. Francis, substitutes for Keith Hutchings, MHA for Ferryland.

 

The Committee met at 6 p.m. in the Assembly Chamber.

 

CHAIR (Edmunds): Okay, we're going to get started here now. The Government Services Committee meets on – I'm lost here.

 

OFFICIAL: Service NL.

 

CHAIR: Service NL and Government Purchasing Agency.

 

Before we start, I would like to have the Government Services Committee introduce themselves and their colleagues.

 

MR. K. PARSONS: Good evening. My name is Kevin Parsons from the beautiful District of Cape St. Francis.

 

MS. DRODGE: Megan Drodge, Researcher with the Official Opposition caucus.

 

MR. KING: Neil King from the historic District of Bonavista.

 

MR. MORGAN: Ivan Morgan, Researcher, NDP caucus.

 

MR. FINN: John Finn, MHA, Stephenville – Port au Port.

 

MS. PARSLEY: Betty Parsley from the beautiful District of Harbour Main.

 

MS. HALEY: Carol Anne Haley, MHA, Burin – Grand Bank.

 

CHAIR: Okay.

 

I would ask the minister to introduce his staff, and just to point out that if you access your staff that they please say their names before addressing any questions.

 

MR. JOYCE: Eddie Joyce, MHA, Humber – Bay of Islands.

 

MR. PUDDESTER: I'm Leigh Puddester. I'm the Deputy Minister for Service NL and for Procurement Reform.

 

MS. KELLAND: Donna Kelland, ADM for Government Services Branch, Service NL.

 

MR. MCCARTHY: Julian McCarthy, ADM, Consumer and Commercial Affairs, Service NL.

 

MS. HICKEY: Marlene Hickey, Chief Review Commissioner for the Workplace Health, Safety and Compensation Review Division.

 

MS. HEARN: Patricia Hearn, Chief Operating Officer for the Government Purchasing Agency.

 

MS. HAYES: Robin Hayes, Departmental Controller, Service NL and the Government Purchasing Agency.

 

MR. LETTO: Graham Letto, Parliamentary Secretary, Service NL.

 

MR. CARD: Jason Card, Director of Communications.

 

MS. DOGURGA: Sherrie-Lynn Dogurga, EA for the hon. Eddie Joyce.

 

CHAIR: I think what we're going to do is we're not going to stop the clock; we're just going to carry right on through with any questions. We're going to start off with Government Purchasing. First of all, I'd like to have a motion to adopt the minutes from the last meeting.

 

AN HON. MEMBER: So moved.

 

CHAIR: Okay.

 

Carried.

 

On motion, minutes adopted as circulated.

 

CHAIR: Okay, I'm looking forward to Government Services Committee.

 

If the minister would like to make some opening remarks prior to getting started …

 

MR. JOYCE: I just have a few prepared statements here –

 

CLERK (Ms. Barnes): We need to call the subheads.

 

MR. JOYCE: Subheads.

 

CHAIR: Okay.

 

CLERK: 1.1.01

 

MR. JOYCE: Good evening.

 

As minister of Service NL and minister of the Government Purchasing Agency, I'm pleased to appear before you to discuss the Estimates figures for these entities.

 

I want to take this opportunity to thank the Members opposite and their staff for joining us. I also want to thank staff from Service NL, the Government Purchasing Agency and also the WorkplaceNL review division for their preparation for today's session and also for their hard work and dedication that they have shown over a number of years.

 

When I was on the opposite side, the same as the Member for Cape St. Francis, I always recognized the hard work and dedication of the people in these departments. They do a lot of work for the people of Newfoundland and Labrador.

 

Service NL is responsible for the majority of licensing, inspection, public record keeping and the regulatory functions within the government. It is the primary access point for people who need these services.

 

Service NL undertakes hundreds of thousands of transactions each year. These range from electrical inspections to restaurant inspections to production of vital statistics records and the registration of deeds. Within the Motor Registration Division, Service NL completes more than a million transactions per year. The authority to carry out the department's mandate comes from more than 180 statutes and regulations as well as standards and codes of practice. In addition to the Office of the Queen's Printer, the department provides printing services for the provincial government and the general public.

 

The WorkplaceNL review division reviews decisions of WorkplaceNL to ensure compliance with the act, as well as regulations and policies. The division provides vital appeal services to employers and workers and pursues continuous improvements in the area of client service.

 

The Government Purchasing Agency is the central procurement unit of the Government of Newfoundland and Labrador. It is responsible for managing the procurement process for goods and services on behalf of all government departments. The agency processes and oversees in excess of 19,000 procurement transactions annually, including 500 public tenders, which in total are valued at approximately $250 million.

 

Clearly, there's a significant amount of work undertaken in the areas I have mentioned. I also want to make sure we make the most of our time in this Estimates session. I will now turn it over to the Chair.

 

Mr. Chair, just for the record, when we're complete we have a copy of the book for the Members opposite, and also for the NDP if they want a copy of our Estimates here.

 

MR. K. PARSONS: Okay, sure.

 

Thank you, Mr. Chair.

 

I look at Service NL – and when I first got elected people always asked me what do they do? I basically say you know what; they got you from the time you're born to the time you die and everything in between. That's basically what your department does.

 

People of the province don't realize some of the things you do, but I really do appreciate the work that goes on in your department. I have to say, it's one of the best departments to have any inquiries about or whatever. The response is always good. So I thank you for that.

 

Minister, I have a couple of general questions that I'd like to ask first and then we'll go into line-by-line stuff. Are there any plans to bring in and pass the new public tendering legislation?

 

MR. JOYCE: Yes, there is. It's the procurement act. We're in the process – we had many meetings on it. In actual fact, we have meetings again this week on it. We are hoping to bring it in, maybe even this session.

 

I know the previous government, which you were a part of, did a lot of work with it. It wasn't brought in so we are hoping to have it ready and possibly brought in, in this spring session of the Legislature.

 

MR. K. PARSONS: I believe there are a lot of people waiting for it, to get the new legislation in place so that it's more open and transparent, as we all talk about every day.

 

Okay, that's good.

 

A general question: I'm just wondering what agencies you're responsible for. I know it's a general question but –

 

MR. JOYCE: Service NL, municipal and provincial affairs ministries, workers' compensation –

 

MR. K. PARSONS: Yes, but I'm talking more or less about the Government Purchasing Agency. Are you responsible for municipalities, name off – because I really don't think people understand what –

 

MR. JOYCE: Under the –

 

MR. K. PARSONS: Any agency within government.

 

MR. JOYCE: GPA is all government agencies. It's all government agencies, because GPA does all the purchasing for all the departments in government.

 

MR. K. PARSONS: Even municipalities – do you fall under municipalities?

 

MR. JOYCE: Well, it's under the act, and then what we're doing now under the procurement, the municipalities will have to follow under that also, yes.

 

MR. K. PARSONS: They'll have to follow the same policy.

 

MR. JOYCE: Yes.

 

MR. K. PARSONS: Okay, thank you.

 

I'm just going to go into line-by-line items there now.

 

MR. JOYCE: Now, I may get the officials to answer to make sure you've got the right answer.

 

MR. K. PARSONS: Listen, anybody can answer, sure.

 

MR. JOYCE: We got all the answers; they can explain it just to ensure (inaudible).

 

MR. K. PARSONS: Yes, no problem whatsoever.

 

On the first one there, Salaries, I'll just ask you to explain what's happening there on that line, what's revised and what was actually budgeted and again this year what the difference is.

 

MR. PUDDESTER: So you'll see, first of all, that in the revised compared to the original budget there was an under spend of about $750,000 or so. That was a combination of factors. We had a number of vacancies at the agency. As well, we had a higher turnover than usual. The timing associated with filling those turnovers would have contributed to it. So the vacancies were a combination.

 

We have been anticipating the new act and have done some planning work around what positions would be needed to support the introduction of that act. So some of those vacancies were a result of the timing delays with the new legislation coming forward, and then others were just some positions that had been held vacant and some movements internally.

 

MR. K. PARSONS: So looking at budgeted and estimated this year, how many vacancies are not going to be filled? Because there is a difference between what's budgeted and what's there now this year.

 

MR. PUDDESTER: Right. Of the $228,000 or so that you're seeing compared to last year, the reduction, about $84,000 of that is relating to two positions that are not going to be filled. Those relate to the implementation of the P-card, the purchasing card for government. So those are two buyer positions which we feel won't need to be filled. They are vacant right now, so there are no positions being impacted.

 

And then there's another approximately $146,000 that is related to timing issues associated with the new act, plus some ongoing vacancies. I can't give you a precise number that's related to the new act.

 

MR. K. PARSONS: Yes, I know. I was just wondering why the difference the two. That's good.

 

How about attrition? Is there any through attrition also? Would that be –

 

MR. PUDDESTER: Last year, '15-'16, there was one position that was removed due to attrition and we have one other one, Patricia, for this coming year?

 

MS. HEARN: This year.

 

MR. PUDDESTER: Yes. So we have one position as well for the upcoming year. That hasn't been identified yet. The savings have been removed but, the actual position, we will have to see as the year goes on which position makes sense to remove.

 

MR. K. PARSONS: Okay, thank you very much.

 

Transportation and Communications line, last year there was only $28,000 spent, yet $70,000 was budgeted and we're gone to $49,000. Just give me a brief explanation of that line too, please.

 

MR. PUDDESTER: Again, a lot of that had to do with the planned timing of the new legislation. As part of that legislation, GPA has got a fairly large training requirement to let public bodies, municipalities, ABCs, government departments, help them understand the new act, but as well, the supplier communities. So there was a substantial amount of training and travel related to that training that we were anticipating having to do with the new act.

 

Obviously, with the timing of that legislation, that's now moved forward into the upcoming year. And you're seeing a reduction year over year, though part of that as well is due to just the ongoing efforts to try and reduce expenditures to deal with the fiscal situation.

 

MR. K. PARSONS: Okay.

 

Under Professional Services, $25,000 and $24,000 this year but $150,000 was spent last year, so an increase of $125,000. Was that to do with the new legislation?

 

MR. PUDDESTER: A portion of it was, approximately $40,000 was consulting fees relating to the development of the legislation. The rest of it, though, was consulting fees related to a review of our infrastructure procurement processes across government. So we employed a consultant to help us assess the way we're doing infrastructure procurement to see if there were improvements that could be identified to help save money and make the process more efficient.

 

MR. K. PARSONS: Is that something that is going to be made public, whatever the consultant came up with and found? Is that something that we're going to see?

 

MR. PUDDESTER: Yes, I would assume when the –

 

MR. K. PARSONS: Is it part of the new legislation coming in?

 

MR. PUDDESTER: No, that was not specific to the new legislation. It was to deal with the way in which we're dealing with infrastructure procurement right now. So the terms and conditions associated with the contracts, obviously there are a large number of infrastructure-related procurements that go forward every year and worth substantial dollars. We were doing things like reviewing the terms and conditions that are employed, looking at the language that would be included within RFPs to try and ensure we're getting the best value in those contracts.

 

MR. K. PARSONS: Okay.

 

I just want to go – and I'll do this to you all night long, I'm sorry, but I want you to explain to me the Revenue line and where the revenue is coming from, how we generate it?

 

MR. PUDDESTER: Most of GPA's revenue comes from the proceeds of auctions of surplus government assets. So if departments have finished with any assets that they may have – office furniture, vehicles and things like that – they are sent out to auction. So we get a portion of the proceeds from those auctions.

 

Obviously, the timing of how many surplus assets we're going to have, when they're going to be sold, what we get for them varies from year to year, so it makes it very difficult to predict an amount in a given year. You'll see that last year we did have a fair amount less than we had budgeted and that was primarily just due to the delay or a lack of auctions in general.

 

MR. K. PARSONS: Okay.

 

Actually, that's about it now for Government Purchasing, to tell you the truth.

 

CHAIR: Okay.

 

MR. JOYCE: Just a note, I know Patricia is here with the procurement and I just want to acknowledge her expertise as she's bringing this forth. I know with the previous administration that she worked very diligently. She's very knowledgeable in the field and she feels very strongly that when this act is brought in, it's going to be better for all of Newfoundland and Labrador.

 

I just want to recognize the work that she's done on this and the commitment that she's made to bring this forward for all the people of Newfoundland and Labrador and all entities, because it will make it better. It will help government save money and help a lot of entities. Patricia, thank you very much. 

 

MR. K. PARSONS: Hopefully, we'll see the new legislation this session.

 

MR. JOYCE: Hopefully too, yes.

 

Thank you.

 

CHAIR: Okay. I call for the subheads.

 

Shall 1.1.01 carry?

 

All those in favour, ‘aye.'

 

SOME HON. MEMBERS: Aye.

 

CHAIR: Carried.

 

On motion, subhead 1.1.01 carried.

 

CLERK: The total.

 

CHAIR: Shall the total carry?

 

SOME HON. MEMBERS: Aye.

 

CHAIR: Carried.

 

On motion, Government Purchasing Agency, total head, carried.

 

CHAIR: Shall I report the Government Purchasing Agency without amendment?

 

SOME HON. MEMBERS: Aye.

 

CHAIR: Carried.

 

On motion, Estimates of the Government Purchasing Agency carried without amendment.

 

CHAIR: Now we shall move on to Service Newfoundland and Labrador. Again, we won't bother with the clock.

 

Minister, do you have any opening statements on this department?

 

MR. JOYCE: No, I'm fine. As I mentioned in my opening statements earlier, this is a very vast department. There are a lot of regulations in the department. A lot of people keep the residents of Newfoundland and Labrador safe and ensure that all the safety standards are met. I just want to recognize the hard work and dedication they have done and still are doing over the years. Now, as the minister, I just want to echo that again.

 

I'm sure the Member for Cape St. Francis would agree that they do a lot of hard work. There's always a lot of ways to improve it. Hopefully, that's what we're looking for in a lot of ways in Service NL, how to improve services to people.

 

I'll just open up the floor.

 

CHAIR: Will the Clerk please call the first subhead?

 

CLERK: 1.1.01.

 

CHAIR: Shall 1.1.01 carry?

 

Mr. Parsons.

 

MR. K. PARSONS: Okay, thank you.

 

Minister, we were given some handouts during the budget about different increases in fees and stuff like that. I'm sure you have it there in front of you. First, I just want to go through some of them. I'll ask you general questions. I want to know how much revenue is going to be generated on a lot of it, if you don't mind. I'll just pick a couple. I'm not going to pick too many.

 

I want you to explain this one to me and how it works. The pension plan regulation fees, can you give me a description and how much revenue it's going to generate?

 

MR. MCCARTHY: We're responsible for the regulation of pension plans in the province, both private and public pension plans. Every employer that has a pension plan must be registered with the pension plan standards division. As part of that, there's a fee to file their pension plan and have that approved with the division.

 

Each year, there's an annual information return which provides a bunch of statistics on the pension plan and reporting information. There's a fee to file that information each year. We're increasing that fee. Do you have the increase there, Leigh?

 

On an annualized basis it's $141,000. The way the fee works, it's a minimum of $150 and there's $7.50 per member. We're changing that to $10 for an activity member and we're charging a $5 fee for an inactive member.

 

In addition, each financial institution that wants to hold locked-in funds from the pension plan – when a member leaves a pension plan they have an option to take their money out of the pension plan and transfer it to a locked-in account with a financial institution. Each financial institution that wants to hold and administer those locked-in funds has to comply with the standards of the legislation and the directives of the superintendent. So they must file a contract with us to verify they're going to follow the locking-in rules of the legislation and abide by the conditions of the legislation.

 

What we're doing, we're implementing a new fee so each financial institution that wants to maintain those locked-in contracts will be charged an annual fee of $500 per year. That's anticipated to bring in about $30,000 a year.

 

MR. K. PARSONS: Oh, $30,000. Okay.

 

MR. MCCARTHY: Yes. It's about 60 financial institutions and $500 per year. That's basically to cover the cost of us reviewing those contracts and (inaudible).

 

MR. K. PARSONS: I was just wondering what the revenue would be on something like that. How much money would you generate from the increases?

 

MR. MCCARTHY: Yes.

 

MR. K. PARSONS: Okay, perfect.

 

The other question I have to ask – we all look at the news lately and we hear a lot about Exit Realty on the Rock and real estate agents and everything else. I don't understand a lot of it, to tell you the truth, when I look at it on TV. Real estate fees, how does that work? Is there anything we have in place that protects real estate agents and stull like that in place? It's just a general question.

 

MR. MCCARTHY: From the fee perspective, there's a licence fee. It's a one-time licence but then they have to renew and send in a return each year to maintain that licence. That's the fee we're charging. We charge it to individual salespeople, in addition to the agent. The companies that sponsor those salespeople, we charge a fee for that too and they also have a licence fee. So that's done.

 

With regard to the legislation itself, it's intended to protect the consumers who are making offers on real estate. For example, if you put in an offer to purchase a house and there's a requirement to put a deposit down, then we're protecting those deposits by requiring them to be in trust. So it's protecting the individuals who are involved in the real estate industry more so than protecting the salespeople themselves.

 

MR. K. PARSONS: Okay.

 

These increases in fees has nothing to do with legislation, just an increase, and we're continuing to do the same thing as we've always did with industry?

 

MR. MCCARTHY: Yes, the increase is basically more along the lines to try to cost-recover the cost of actually regulating the industry.

 

MR. K. PARSONS: Okay, all right.

 

The agent is basically the person who probably owns the company or something like that, and the salesperson. What's the difference?

 

MR. MCCARTHY: The salesperson is the individual salesperson who actually goes out and makes a sale. The agent is a representative of the company, and every salesperson has to be sponsored by an agent. The agent has a lot more experience and usually – they don't necessarily have to be the owner of the company, but they are the sponsor for that company. Each salesperson has to be sponsored by an agent.

 

MR. K. PARSONS: Okay, that's good. Thank you.

 

Just looking here at inspection fees, and they're increased by 20 per cent. How much revenue is that going to generate? I'm just looking at the lines here on the sheet that I have.

 

MR. PUDDESTER: We've got a number of different categories of fees here. So –

 

MR. K. PARSONS: There are 120 it says that are registered inspection fees; amusement rides, boilers – I guess there's a bit of everything there.

 

MR. PUDDESTER: In terms of electrical fees, that will generate approximately $350,000 of incremental revenue. Boiler and pressure vessel and related fees is about another $260,000. So those are the fee increases associated with most of the inspection-related items.

 

MR. K. PARSONS: Okay.

 

Would you be able to get a list of the 120? Would there be a list that we could see what the fees are?

 

MR. PUDDESTER: We can certainly get you a copy of the fees and the increases, yes.

 

MR. K. PARSONS: Yes, if you can get me a copy of that I'd appreciate it. I'd just like to see what they all are. I mean you're talking from amusement rides to boilers and pressure gauges.

 

OFFICIAL: Sure I will. I'll get you a copy of it, yes.

 

MR. K. PARSONS: I really appreciate that.

 

Thank you.

 

MR. PUDDESTER: I think they're actually on the website. If they're not there now, they would be very shortly.

 

MR. K. PARSONS: They are? Okay. We'll have a look at it. That's perfect.

 

I'm just looking at some of the other increase, and they're minor. Anytime when we need a few dollars, I have no problem with the birth certificate and the marriage certificates and stuff like.

 

The legal name change has gone up from $25 to $100. That seems like it's the most among all of them. Is there any reason for that?

 

MR. PUDDESTER: I'll ask Donna Kelland, the ADM, to speak to that.

 

MS. KELLAND: There's a fair bit of work actually involved with doing a legal name change. (Inaudible) we want to make sure it's not a happenstance event. So rather than having people coming forward that – you know, really want to be serious about them changing their name.

 

There is a lot of work involved in actually doing the name changes. They have to be published, that type of thing. So when we reviewed it, we felt it was justified in terms of the amount of work involved.

 

MR. K. PARSONS: Okay.

 

Minister, the motor registration piece of legislation you brought in earlier with five years gone to 10 years, I think it's a great idea.

 

I look at the Motor Registration Division. I travel in there a good bit myself and get whatever. The trailer has to be licensed or whatever you have to do. We're all in there. I'm just hoping there'll be no reductions in staff because I know most of the wait I had in there in the past – I'm just making a general comment – was that people were waiting in there for two and three hours.

 

How has it improved since people don't need to get their – they can do it online?

 

MR. JOYCE: I'm (inaudible) numbers; over 25,000 are after going through it now with the online. With every 10 years for the picture is going to save another $25,000 to $30,000. So we can actually see the wait-list getting shorter and shorter at the vehicles because there's more and more online and less and less going to have to get their picture taken.

 

The effect is not as real now but over time, as people have to go, and once they get it, they won't have to come back for 10 years. More are more people are using the online services now for registration also. So that's helping a lot.

 

There are a few initiatives we have coming down that we're hoping will – by the fall – have a major impact on the wait time and a decrease in the wait times for people at the motor registration and vehicles, Service NL.

 

MR. K. PARSONS: Okay. Thanks.

 

I'm looking at mostly the increases in trailers and stuff like that, but taxi registration has gone up a little small bit. I spoke to a gentleman actually the weekend that is pretty concerned with the price of gas and everything gone up.

 

I wasn't sure if it's something we should be looking at to – well, to give anyone a break, but they're going to be feeling the brunt of – they're all businesses as far as I'm concerned. It's only minimum, but still.

 

MR. JOYCE: One of the biggest things I've been speaking to with taxi owners and people who own the stands is the actual cost of the insurance that goes through the PUB. That's a major concern for them also with the insurance.

 

MR. K. PARSONS: Yes, everything.

 

MR. JOYCE: It's after gone up 50 per cent last year and then it's gone again to the PUB for another review. That's a major concern also.

 

Like I told a lot of people, it's out of our hands. It's up to the PUB, but all this do add up to the taxi industry.

 

MR. K. PARSONS: I spoke to a couple the weekend who told me (inaudible).

 

That's just an observation again.

 

Driver's licence renewal for seniors, again, it's one of those things that plays a little bit on me all the time, as you know. When I get up I speak passionate about seniors and people in my district and stuff like this. That's an increase to our most vulnerable again.

 

MR. JOYCE: Actually, just for correction, there's no increase for seniors this year in this budget for drivers licence or motor registration.

 

MR. K. PARSONS: Okay, it says here drivers licence renewal: $100 to $65 for seniors and then next line it says $125 to $115. Online it's saying the same.

 

MR. JOYCE: Online is staying the same.

 

MR. K. PARSONS: Is that correct?

 

MR. JOYCE: Yes.

 

MR. K. PARSONS: But there is an increase in –

 

MR. JOYCE: No.

 

MR. K. PARSONS: No?

 

MR. JOYCE: There's no increase to seniors whatsoever.

 

MR. K. PARSONS: Oh, okay. I misread that. I'm sorry about that.

 

MR. JOYCE: I thank the staff for that. That is one thing –

 

MR. K. PARSONS: That's a good thing.

 

MR. JOYCE: Oh, I know, yeah.

 

MR. K. PARSONS: Okay. That's basically it on most of the increases. The increases are justified. I mean you have to make a bit of revenue.

 

What's the overall revenue that you're hoping to obtain with these increases for motor registration?

 

MR. JOYCE: Just motor registration is about $8.2 million.

 

MR. K. PARSONS: $8.2 million?

 

MR. JOYCE: Yes.

 

MR. K. PARSONS: Okay.

 

That's the general questions that I have.

 

Mr. Chair, I'm going to go into section 1.1.01. I know that most of the answers are going to be similar but I'm going to go into ask questions on the Salaries there.

 

If you'd like to explain, last year it was budgeted at – and then we had a huge increase and again this year it's a little bit higher.

 

MR. PUDDESTER: The increase last year in revised versus budget was mainly due to a paid leave payout to the executive assistant to the former minister. That was offset, partially, by the minister being paid by a different department.

 

Service NL has shared a minister with other departments. It did so last year and continues to do so this year – different department. Last year, the minister was actually paid from, I believe, Environment and Conservation. This year, Municipal Affairs and Service NL are splitting the –

 

MR. K. PARSONS: That's the reason why it was $153,000. Last year, it was basically the same thing where we had the minister in Environment and – so that's okay.

 

MR. PUDDESTER: Yeah.

 

MR. K. PARSONS: Okay.

 

I'll go to Transportation and Communications, again, a little bit of a difference in that line, if you'd like to explain that to me.

 

MR. PUDDESTER: The decrease last year, the $15,000 versus a budget of $39,000, was primarily due to, again, having a shared minister. With the timing of the election and the minister's home district and things, the transportation requirements were just less than anticipated.

 

That varies from year to year, depending on the files that we're dealing with, the travel requirements. Obviously, last year, again, with the timing of the election that certainly contributed to it.

 

So we are anticipating still spending less than the budget for '15-'16 but we anticipate that it will be slightly more than last year.

 

MR. K. PARSONS: So the minister is going to stay in St. John's more.

 

Anyway, I want to go to the next line, Purchased Services. Last year, we had budgeted $18,000 but we only spent $1,000. This year we only have $3,000.

 

MR. PUDDESTER: Obviously, a significant decrease. The needs for Purchased Services can vary annually depending on what initiatives or what issues we're dealing with in the department. Obviously, we don't spend that money if we don't need to. Last year was one of those years when we were able to deal with the requirements without significant expenditure.

 

Although there's a slight increase planned for '16-'17 versus (inaudible), it's obviously down significantly from the previous year's budget. So, again, that's to help us deal with the current fiscal situation facing the province and as well, just anticipated lower than historical requirements in that line item.

 

Again, I would caution that it does vary from year to year. So it's hard to have precision as to what the needs will be.

 

MR. K. PARSONS: Okay. That's good.

 

Going to section 1.2.01, the Salaries are pretty consistent there, but I'll go to Transportation and Communications again. We had budgeted a lot more than what we actually spent and this year a little bit less again.

 

MR. PUDDESTER: Yes. Transportation and Communications varies annually, again, depending on what initiatives we're involved with. So just lower-than-anticipated requirements, as well as efforts by the executive group to try and minimize any travel that wasn't absolutely necessary, given the fiscal situation we were dealing with last year. A similar situation for the upcoming year, just trying to do more with less.

 

MR. K. PARSONS: Okay. Purchased Services; last year we had $19,700. This year we have a lot spent. What services were they?

 

MR. PUDDESTER: The primary increase last year to $30,000 from a budget of $19,700 was simply an allocation issue. We had new leases, new arrangements for photocopying and printing, so those bills were aggregated underneath this account code.

 

Previously, they would have been spread out amongst some of the other divisions that you're seeing there, but they were aggregated into this one. That explains the difference primarily. Then this year, we're just again trying to deal with the current fiscal situation and anticipate trying to spend less across the board.

 

MR. K. PARSONS: Okay.

 

Again, you know I'm going to ask this question every time about revenue. I'd like to know where the money is coming from, where we are getting it to – where we're getting revenue to.

 

MR. PUDDESTER: Revenue in this case is reimbursement for executive salaries related to WorkplaceNL. As you know, WorkplaceNL falls underneath the minister portion of executive, so we have an assistant deputy minister responsible for Occupational Health and Safety. That was previously Kim Dunphy. Kim retired last year. Julian is actually acting in that capacity now while we try and fill that position.

 

That salary is entirely recovered through billings to WorkplaceNL, as well as a portion of the deputy minister's salary, some secretarial salary, communication salary and a portion of our financial – our controller's salary. In total, approximately a million dollars or so is recovered from WorkplaceNL to deal with that.

 

MR. K. PARSONS: That's good.

 

Okay, I'm going to move on to section 1.2.02. In this section I'm just looking at the Operating Accounts and Property, Furnishings and Equipment. Why has the budgeted increased this year? What's the increase?

 

MR. PUDDESTER: This account is almost exclusively around vehicles for the department. We have a fairly large fleet given the number of inspectors that we have around the province and the number of office locations that we have. So this amount deals with capital to purchase new vehicles.

 

You're seeing the increase for next year; we have a larger number of vehicles that are due for replacement. Obviously, it's important we try not to purchase any vehicles unless we have to, but the existing fleet reaches a point where the maintenance expenditures and sometimes the safety of operating those vehicles dictate that we purchase new ones to replace those.

 

That accounts for the budget for next year to replace some vehicles within the Occupational Health and Safety Branch. Again, those vehicle costs are completely recovered by billing to WorkplaceNL and then also within the rest of Service NL.

 

MR. K. PARSONS: Okay.

 

Again, if you look at the revenue line, budgeted was only $25,000; you have $39,000 and now $160,000.

 

MR. PUDDESTER: We had anticipated only needing to replace one vehicle within the Occupational Health and Safety Branch. We ended up replacing two, but all of those expenditures are billed back to WorkplaceNL. So you're seeing there the recovery of two vehicle purchases versus a budget of one vehicle purchase.

 

You can see for next year, $160,000. That's because we've anticipated purchasing five vehicles for Occupational Health and Safety.

 

MR. K. PARSONS: Okay, I was going to say. I was looking at $160,000 when you said two vehicles. I was wondering what you were driving.

 

Do you want to do that section first, Chair? Or will I continue –

 

CHAIR: No, carry on through and then we'll –

 

MR. K. PARSONS: Just keep going?

 

CHAIR: Yes.

 

MR. K. PARSONS: Okay, perfect.

 

Thank you.

 

We're going to go to section 2.1.01, Consumer Affairs. I want to look at the Salaries. The revised last year versus – I'm assuming there were a couple people that left. I'm not sure; you can explain it to me.

 

MR. PUDDESTER: Last year, we had two individuals retire. So that dealt with the severance, paid leave payouts for those individuals.

 

MR. K. PARSONS: Okay, so severance.

 

MR. PUDDESTER: This year you're seeing just normal salary plan adjustments to deal with step increases, plan vacancies, things like that.

 

MR. K. PARSONS: Okay.

 

So we must have had a reduction in some of those, from what we budgeted last year to this year. Is there a vacancy there?

 

MR. PUDDESTER: Yes, we would have vacancies in that area. I think right now we've got – Consumer Affairs, two vacancies. So it would deal with the timing of when we anticipate filling vacancies, salaries for those individuals, things like that.

 

MR. K. PARSONS: Okay.

 

Again, on the line – I know every time I'm asking it but I guess I'll continue. Transportation and Communications; I'm just looking at the different budget, revised and now we're gone back to $24,000. These are basically things that you went through the department and said, okay, we can save a few dollars here and there. Is that basically what you're doing here?

 

MR. PUDDESTER: So most of the changes for '16-'17 are exactly that, they're efforts to try and reduce expenditures to help deal with the fiscal situation. The minister and our team went through all of these on a line-by-line basis to see where we could make improvements.

 

As well, underneath this area of Consumer Affairs, Residential Tenancies fall underneath there. We have travel associated with holding hearings for Residential Tenancies cases. Those vary from year to year depending on where they are. Obviously, if we have more outside of the St. John's area we sometimes have to do more travel to reach those locations.

 

MR. K. PARSONS: Okay.

 

And again, I go to Purchased Services and looking at $20,100 versus $35,000 that was revised and gone back down. What was the difference in the $15,000 extra that we spent there?

 

MR. PUDDESTER: We had a one-time requirement to renovate an office. We had to move an office for security purposes. We needed to bring it back to provide more visibility to the waiting area around Residential Tenancies. So that was the cost associated with just setting up a small office internally.

 

MR. K. PARSONS: Okay, and a quick explanation. I know I'm asking you again about revenue. Just explain where the revenue comes from.

 

MR. PUDDESTER: This is primarily application fees paid by applicants around Residential Tenancies hearings. There are fees associated with filing to have those hearings held. So they vary from year to year, again, depending on how many applications we might have.

 

We had a slight increase last year from what we had budgeted, so this year we've adjusted that to reflect what we saw last year which was also consistent with the previous year. So we think that $16,000 is a more normal level now for the type of hearings and the volume that we're seeing.

 

MR. K. PARSONS: Okay.

 

The next section I'll go to is 2.1.02. Again, I'm going to ask you a question about the Salaries there because it looks like we've budgeted – and Estimates this year. What's the difference in what we actually spent last year?

 

MR. PUDDESTER: Last year, we had about $123,000 underspend. That was primarily related to three vacancies. We had director, manager and investigator positions that were vacant for a portion of the year. Those positions have all been filled now. So we anticipate that we will have billings more in line with the budgeted amounts.

 

MR. K. PARSONS: Okay.

 

Just looking at Professional Services there, we had $10,000 budgeted, we only used $2,100 and $5,000. Perhaps you can just give us a quick explanation there now.

 

MR. PUDDESTER: So this is primarily fees billed by the Financial Services Appeal Board. Depending on how many appeals are brought to that board that will impact how much we have to spend to reimburse them. So last year we just had a smaller amount – I think we only had one appeal last year. Again, it varies from year to year. It's very difficult to estimate but, based on recent trends, we felt comfortable in reducing the anticipated expenditure for next year.

 

MR. K. PARSONS: Okay, looks good.

 

Moving right along, section 2.1.03, I don't have any question on the Salaries – the Salaries are okay. The only one there is Purchased Services and it is just a little increase. We spent $7,800 last year and had budgeted $5,000, yet this year we're gone down to $3,000; perhaps a quick explanation.

 

MR. PUDDESTER: Last year there was a national conference for pension regulators that was actually held in Newfoundland and Labrador. That moves around every year. Last year it was our turn to host, so we had a little bit more money there associated with hosting those individuals. Next year it's somewhere else, so we won't have those expenses. So it is that, combined with general efforts to reduce expenditures to deal with the fiscal situation.

 

MR. K. PARSONS: Okay (inaudible).

 

In section 2.1.04, I want to ask you a question about the Salaries and it looks like it must have been some positions that were either vacant are now filled?

 

MR. PUDDESTER: Correct. So commercial registrations, we have a pool of clerks that deal with the registry of deeds and corporations. That area experiences fairly high turnover. What you're seeing there predominantly is the impact of how long it takes us to fill a position once we get a vacancy, to go through the competition of posting those and filling the vacancies. That deals primarily with why you saw an under expend last year. We're anticipating that we will be able to keep those positions filled for this year and budgeted accordingly.

 

MR. K. PARSONS: Okay.

 

On the Transportation and Communications line last year we had $80,000, yet we spent $115,000. We're back to $80,000 again this year. Maybe you can explain the –

 

MR. PUDDESTER: Last year, we had a larger than expected expense related to postage. We're still trying to understand what happened there to result in that increase. Part of it may have been related to just volumes related to mailing out of registration documents. We deal with the mailroom at Transportation and Works, so we're trying to get an assessment of that. We think it was a one-time item. We don't anticipate that we'll have that again.

 

MR. K. PARSONS: That's a lot of postage for $30,000.

 

MR. PUDDESTER: We handle 80,000 transactions a year at the Registry of Deeds, most of which require mail outs of documents to verify that deeds have been registered, things like that. It obviously is somewhere that we're trying to ensure we don't have that again.

 

MR. K. PARSONS: Is there a way to improve that system? We're dealing a lot today with emails and whatnot. So why are we spending money on something like that? Are there any improvements you can –

 

MR. PUDDESTER: With the deeds portion specifically, we're trying to encourage registration of those documents online. We have that capability. A lot of those documents are put forward by law firms. So we've been working with all the law firms to try and get them to convert to submitting their documents electronically because it is much quicker for us to deal with. It knocks a significant amount of time off of our processing.

 

I think right now we're up to just over 50 per cent or so that is online. Obviously, we'd like to make it 100 per cent but we're kind of at the mercy of the law firms to convert. We are offering free training seminars to law firms on an individual basis to help try and get them to switch over. So we're working on it.

 

MR. K. PARSONS: Okay.

 

Motor Vehicle Registration, section 3.1.01. I want to look at the Salaries here, what we budgeted last year and then the revised and what we're actually budgeting this year, a little increase. Do you want to explain that?

 

MR. PUDDESTER: Yes. What you saw last year, we had a slight decrease which was just due to staff turnover and the temporary vacancies, just timing issues related to the filling of those positions.

 

For next year, you're seeing a very slight increase. There's about $6,600 relating to the JES changes to budgets. So there's a slight increase there for this division, and that's offset by about $5,000 just relating to normal salary plan adjustments, timing delays, overtime requirements, things like that.

 

MR. K. PARSONS: Okay, on the Supplies, a huge difference – $215,000 budgeted, $475,000 and now $214,000.

 

MR. PUDDESTER: Last year, we had a couple of large amounts for prior-year invoices that didn't get paid until '15-'16. That primarily related to fuel for highway enforcement vehicles, and costs for uniforms and personal protective equipment that were required under the collective agreement.

 

So that's accounting for about $135,000 or so of the increase. Then the extra was just a variety of items underneath the Supplies budget, office supplies – we use specialized envelopes for mail out of Motor Registration documents. We had toner expenses related to the specialized machines for printing driver's licences and things like that. So we had a bit of a combination of one-time items there, in addition to those two amounts for prior-year invoices.

 

MR. K. PARSONS: So wouldn't those uniforms and everything have to be continued every year, or is it –

 

MR. PUDDESTER: They're a bit lumpy, so the timing of when we may have to buy new uniforms or when we may replenish the toner amounts will vary from year to year. We've struggled with this account a little bit in recent years to try and get it to reflect the actual amounts that have been purchased. But given the fiscal environment, we're trying to just find ways to make do with the budget that we had there historically, and we don't anticipate those one-time – the late invoices are obviously not going to reoccur.

 

MR. K. PARSONS: Okay.

 

What grants and subsidies are you talking about on this line?

 

MR. PUDDESTER: The Grants and Subsidies, I'm going to ask Donna to give the detail on those.

 

MS. KELLAND: There's a grant that we give to Safety Services Newfoundland and Labrador for their bicycle helmet safety program. That's around $10,000.

 

MR. K. PARSONS: Okay.

 

MS. KELLAND: A lot of what else is in that account are various memberships in national and international motor vehicle associations, so the Canadian Council for Motor Transport Administrators, which is all the regulators across the country. We're also a member of the American motor vehicle association. There are other fees.

 

We're part of a Commercial Vehicle Safety Alliance program where our inspectors are certified to be able to conduct inspections of large commercial vehicles. There are fees associated with maintaining those certifications. Most of it is really membership type of dues and transactional type of fees.

 

MR. K. PARSONS: Okay, just questions.

 

Under Property, Furnishings there's a difference there of $60,000 from what was budgeted last year and what was actually spent. Could you explain that to me?

 

MR. PUDDESTER: We have a ticketing system, if you're familiar with the office in Mount Pearl, when you go in. You used to take a ticket and wait for the number to be called at the wickets. That system was quite old. It ended up failing last year so we had to purchase a new replacement system for that.

 

We're actually quite excited by that system. It's in place up and running now. It's going to provide us with a lot more visibility into wait times and staff productivity, and help us actually dynamically adjust what wickets are serving which types of activities to help reduce wait times. So that's one of the initiatives the minister mentioned we're employing that will hopefully start to see some improvements in wait times.

 

MR. K. PARSONS: I used to always wonder when you go in there sometimes and you'd have V8 and then E, four or five would get called and you're still there. You're D9 and you had to wait all the time but I didn't understand. What's the reason for that? Why is it different? It's just different categories?

 

MR. PUDDESTER: That's bingo.

 

MR. K. PARSONS: What is it? Do you want them to be waiting or what?

 

MR. PUDDESTER: It's bingo, motor vehicle bingo.

 

I guess it would depend on the transaction. If you were there for a vehicle renewal, a driver's licence renewal, to acquire a driver's license for the first time, if you were there to deal with a commercial registration, the codes would depend on what you were there for.

 

MR. K. PARSONS: What you're there for, okay.

 

MR. PUDDESTER: We know, for example, the average length of time it takes to do those different transactions. A vehicle registration renewal is much quicker than issuing somebody a driver's license for the first time. So we can adjust the number of people now, with this new system, to be able to help to deal with some of those pressures to try and equalize some of the wait times.

 

MR. K. PARSONS: Okay, that's good.

 

Section 3.1.02; again, I'm going to go to the Salaries and if you can explain the changes and the variances there.

 

MR. PUDDESTER: The reduction last year was, again, just primarily related to some staff turnover and temporary vacancies related to that turnover. In addition, we were undertaking some activity to look at combining the weigh scale operating positions and the highway enforcement officer positions. Some of those vacancies were held, depending on the combination that was going to be held with the highway enforcement officer position. Just kind of business as usual items there; timing issues.

 

What you're seeing there for next year, it's down $110,000 versus the previous year. There was a $20,000 increase related to JES in there. That was offset by about a $131,000 decrease related to attrition, step increases, things like that.

 

MR. K. PARSONS: Okay.

 

A general question here, Minister; I travel the highway a lot – we all do. Is there any emphasis on what we're doing for inspections on the highway? It's like I don't see as many as what you used to one time. You'd see your highway enforcement hauling in some trucks and stuff like that. I don't see it as much as I used to. Is there anything that –

 

MR. JOYCE: There's no decrease.

 

MR. K. PARSONS: There's no decrease at all?

 

Is it something we're going to be looking at doing more of for safety on our highways? It seems like the few accidents I've noticed lately, it's brutal what's happening on the highway.

 

MR. PUDDESTER: I think the minister is going to take that question.

 

MR. JOYCE: No, there's been no decrease whatsoever in that. I guess the highway enforcement is still up and running. There are still a lot of initiatives with law enforcement, the RCMP and Constabulary across the province. There's been no decrease in that whatsoever – absolutely none.

 

MR. K. PARSONS: Okay.

 

Let's go to Transportation and Communications here. I know it's not a big lot of difference, but we had budgeted $125,000 and we're down to $110,000 and we spent $115,000.

 

MR. PUDDESTER: Yes, that's just efforts to try and reduce expenditures given the fiscal environment, and the same for next year.

 

MR. K. PARSONS: Okay.

 

If you want to you can go to the next line on Supplies, $18,500. Why was the increase from last year which was $5,000? This year it's only $3,500.

 

MR. PUDDESTER: Right.

 

So we had a one-time increase related to the purchase of some personal protected equipment for weigh scale inspectors, specifically Kevlar vests. Again, you mentioned the highway enforcement officers. These individuals are stopping commercial vehicles on the highways. And I guess in our environment now, there's some concern over you never know who is going to be in those vehicles or what they might be transporting.

 

So we did a review, and based on our responsibilities for occupational health and safety, we felt it was appropriate that we be equipping those individuals with vests to help protect them in the, hopefully, very unlikely event they should ever encounter trouble in their stops.

 

MR. K. PARSONS: Also, I know that under transportation, new regulations came in with safety on the highway when the number of people – and the pylons and everything else when you haul in a vehicle. Has this increased under the safety aspect to a number of people, say if you are going to haul in a vehicle to the side road, whether there are one or two people? Or does it make any difference or has that changed in any way?

 

MR. PUDDESTER: I think Donna Kelland can give some specifics.

 

MS. KELLAND: We've undertaken an extensive review of our safe work practices and the hazards associated with individual types of activities. So there are rules and procedures for all of our inspectors now in terms of how they set up for a roadside inspection, whether or not there are one or two officers involved, the callback arrangements that they have to avoid getting into trouble, that type of thing. So we've done quite an extensive review and done a number of safe work practices in that area.

 

Does that answer your question?

 

MR. K. PARSONS: Yes, it does.

 

I just want to ask about the Allowances and Assistance line there, $25,000. Where did this money go to last year?

 

MR. PUDDESTER: That was related to a settlement with an employee in accordance with the collective agreement.

 

MR. K. PARSONS: Okay.

 

Section 3.1.03; again I want to look at Salaries, if you could just explain the Salaries (inaudible).

 

MR. PUDDESTER: Again, a similar answer. The decrease of $116,000 last year was just a higher-than-normal turnover in staff activity and then the amount of time it takes to fill those vacancies.

 

Next year, the decrease of $136,000; again, we had a small increase, about $6,600 for JES and then $142,000 in reductions related to attrition, salary plan adjustments, things like that.

 

MR. K. PARSONS: Okay, that's good.

 

Under Employee Benefits there, last year we budgeted $9,000, revised $34,000, this year $33,000. What's the difference? What's the increase? Why did it increase over last year, what we budgeted?

 

MR. PUDDESTER: This was related to workers' compensation costs. We, I guess, have situations where we've got some employees who are dealing with those types of workers' comp cases. They vary from year to year, and very difficult to predict.

 

Next year, we've now adjusted that accordingly in anticipation of the number of people who are dealing with those issues and how long they take to get resolved.

 

MR. K. PARSONS: Okay.

 

On the Supplies line there again, it looks like we spent a lot of money on different things last year when it comes to Supplies. It's an increase of what was actually budgeted and revised and we're gone –

 

MR. PUDDESTER: Last year, we had an increase of $92,000, roughly. This is primarily related to the purchase of licence plates for the motor vehicle division. Those purchases are a bit lumpy when they occur, but we have seen increased numbers of vehicles in recent year.

 

I think over the last four years our vehicles are up – about a 25 per cent increase in the number of vehicles we're registering. This is just to deal with the purchase of licence plates for a variety – we have different ones for commercial vehicles, passenger vehicles, ATVs, things like that.

 

MR. K. PARSONS: So we're not planning on buying anymore licence plates this year compared to what we did last year?

 

MR. PUDDESTER: You've seen a slight increase in the budget year over year but based on the timing of those, we're not anticipating the same types of expenditures.

 

MR. K. PARSONS: Okay.

 

On Purchased Services, we revised it last year down a couple hundred thousand, this year we're gone – what's the difference in the line there? What was actually budgeted?

 

MR. PUDDESTER: We had a decrease last year of $225,000 or so over what was budgeted. That was due in part to a credit on expenditures for the driver's licence photo ID system we have. We share that with the other three Atlantic provinces.

 

We reached a period, associated with that contract, where the supplier had recovered the upfront cost. So we saw a reduction in the amount we paid per transaction. You saw a credit there for some of those expenditures associated with that.

 

The change for next year is you're seeing a slight increase there. That contract is expiring and we are anticipating a slight increase to deal with the timing to extend that contract for a little bit of time to align with the other Atlantic provinces. So that's why you're essentially seeing the difference from this year to last year.

 

MR. K. PARSONS: What did we spend $9,500 on in Professional Services last year?

 

MR. PUDDESTER: Related to that same contract, the four Atlantic provinces hired a consultant to help us develop the RFP and to do an assessment of the needs of the four provinces.

 

MR. K. PARSONS: Okay.

 

Let's go to the next section, 3.1.04; again, look at the salary line there. What we budgeted was revised a little less. I'm assuming it's going to be basically the same answer there again for attrition. There are no vacancies there or anything is there?

 

MR. PUDDESTER: We would generally have vacancies. Again, they'll just depend on the timing of when people move around in those. Obviously, we try and deal with those vacancies as quickly as possible, but we do deal with delays in how long it takes to get those positions filled. The answer is the same as in the previous.

 

MR. K. PARSONS: That's okay.

 

I got to ask the question but I kind of anticipate the answer. On the Supplies line again, we obviously spent a lot more than what we had budgeted. Are we being realistic of what we're doing this year? Supplies had $12,200 budgeted for last year, then we spent $32,000, yet we're only going to be $7,000 this year.

 

MR. PUDDESTER: Last year, this was related to the Kevlar vests we mentioned. The expenditure for those vests was split between these two activity codes. Again, that was a one-time item with last year. For next year again, we're just trying to make do with a little less money given the fiscal situation.

 

MR. K. PARSONS: Okay.

 

Under Purchased Services, we budgeted $9,400, now we have $45,000 spent and we're back to $9,000. What was –?

 

MR. PUDDESTER: We had some unanticipated vehicle maintenance in the first half of the year before we replaced some of those older vehicles. As well, we had some additional costs to install some specialized rooftop safety lighting systems and striping on the highway enforcement vehicles. Again, that tends to go along with when we replace certain types of those vehicles, but it's a one-time expenditure.

 

MR. K. PARSONS: Again, I'm going to ask a question. I know it's federal there for revenue. What money is that generated from in particular?

 

MR. PUDDESTER: I'm going to ask Donna Kelland to give you some details on that.

 

MS. KELLAND: That's a national road safety agreement we have with the federal government. All the provinces and territories – or most of the territories – of Canada have with the federal government to conduct national road safety inspections type of functions. We'll do the on-road inspections that you see occasionally, but we also do a lot of inspections at what we call carriers. Companies that have a lot of trucks in their fleet, we'll go to their site and do a number of inspections at random on those trucks to make sure they're safe. So the federal government compensates us for doing a certain number of those inspections every year. The amount we get is roughly based on the population percentage that we are.

 

MR. K. PARSONS: Okay.

 

We'll go to section 3.2.01. Again, we have a, not a big lot, but the Salaries line there is – could you do a brief explanation of there?

 

MR. PUDDESTER: A very similar explanation. We just had some vacancies, and for next year some increases were associated with JES, offset by some adjustments for salary plan.

 

MR. K. PARSONS: Okay.

 

Under Employee Benefits, there's $13,600 that was revised last year versus $3,600 and $3,500 this year. What's the difference?

 

MR. PUDDESTER: That was related to a workers' compensation costs. I guess next year we're not anticipating incurring that same level of expense; though, I'd caution that it's difficult to predict that from year to year.

 

MR. K. PARSONS: Okay.

 

I'll go to the line Transportation and Communications. I guess this is just going through the line-by-line items again and finding savings?

 

MR. PUDDESTER: Correct, for next year. The savings for this current year were more due – because of some of the vacancies, we didn't incur some of the travel expenses that we'd normally have with those positions.

 

MR. K. PARSONS: Why Purchased Services – although it's down a little bit. You're anticipating lower again this year as to what we budgeted?

 

MR. PUDDESTER: Yes. This is primarily related to leases for various Government Service Centre locations around the province. So that would just be some anticipated reductions in lease costs associated with some renewals that we've done.

 

MR. K. PARSONS: Okay.

 

Professional Services, this year only $5,000, yet we budgeted $15,000 and we spent $10,000.

 

MR. PUDDESTER: This would vary from year to year depending on the need for hiring external expertise associated with public safety investigations or for advisory board tribunal hearings. Again, it will vary from year to year.

 

MR. K. PARSONS: Okay. I'm going to go to the Revenue line and just ask you to give me a quick explanation of that also. We're anticipating a good bit of extra revenue this year too, a couple hundred thousand dollars.

 

MR. PUDDESTER: Yes. The Revenue relates primarily to fees that we charge for buildings accessibility plan reviews, fire and safety plan reviews, the registration and inspection of boiler and pressure vessels. You're seeing just the activity that's going on related to those items.

 

MR. K. PARSONS: I have the salary line marked down here but I'm not going to ask you that, okay. Because I know I'm going to get the same answer. That's okay.

 

Under Supplies, a small variance, I guess we're just saving a few dollars and looking at different ways to fine –

 

MR. PUDDESTER: Just to clarify, are you on Regional Services now, 3.2.02?

 

MR. K. PARSONS: Oh, I'm sorry, I didn't say the section.

 

Section 3.2.02.

 

MR. PUDDESTER: Yes, so that's just an effort to try and deal with the fiscal situation.

 

MR. K. PARSONS: Okay.

 

Again, you know I'm going to ask you the Revenue line.

 

MR. PUDDESTER: That Revenue relates mainly to electrical permits. You're just seeing the activity associated with electrical permits there.

 

MR. K. PARSONS: There's a huge increase there.

 

MR. PUDDESTER: That deals with the fee increases for electrical permits.

 

MR. K. PARSONS: Okay, that's basically where we see the fee increases, okay.

 

Thank you.

 

Moving right along, 3.3.01, Vital Statistics, Salaries are basically the same. I know that's going to be the same, but under Supplies. There's another increase in the Supplies.

 

MR. PUDDESTER: We just had a slight increase. That'll vary from year to year. I'm not anticipating that will occur again next year.

 

MR. K. PARSONS: Okay.

 

Purchased Services, we spent a lot more but we're back to budget now again this year. What's the difference there?

 

MR. PUDDESTER: Last year, the paper stock we used for birth and marriage certificates was that specialized Mylar paper. We had an increase in the printing requirements for that for about $5,000, which we hadn't seen there. But, again, depending on the timing of when we make those orders and how many requests we have for documents, that'll vary a little bit from year to year. We're anticipating next year it will be a bit more of a normal year.

 

MR. K. PARSONS: The cost of that stuff varies so much too, especially with different stocks of paper and stuff like that. I know a lot about it.

 

Okay, I'm going to just go right to the Revenue line there too. Again, just a quick explanation of where the Revenue comes from.

 

MR. PUDDESTER: I'm going to ask Donna Kelland to answer that.

 

MS. KELLAND: The federal revenue comes from reimbursement that the federal government gives us for data coming from the Vital Statistics Registry, births and deaths primarily. They pay us on a per transaction basis for that information. That would mostly go to Statistics Canada and Service Canada.

 

Provincial revenue is fees for birth certificates and other transactions that we do for individuals within the province.

 

MR. K. PARSONS: Yes.

 

Like I said, they got you from birth to death.

 

The next section, the Queen's Printer, Purchased Services, we budgeted for $30,000, yet we only went $10,500 and this year $15,000. Just explain that to me, please.

 

MR. PUDDESTER: Purchased Services in this line relates primarily to if we have requirements, if we need to print the statutes. We have to send those out to be printed. We're not able to deal with the binding requirements, I think, of those documents in-house, so depending on the number that we may have to print or things, that will affect that.

 

As well, we do have some equipment costs in there. So it depends on when we have to replace that miscellaneous equipment. That's not the big equipment, but we do have some elements related to the Queen's Printer in there as well.

 

Overall, obviously, we didn't spend as much last year. We're anticipating having to spend a little bit more next year than we actually spent this year but it's still down versus the previous year's budget.

 

MR. K. PARSONS: Again, I'll go to the Revenue line just for an explanation.

 

MR. PUDDESTER: This is the Revenue related to the bookstore sales for the Queen's Printer. If you come in to purchase copies of any of the statutes, documents and things like that. That will vary.

 

We did have a slight increase last year. There was a fee increase that went forward last year and fees for the Gazette as well, which is subscribed to by various law firms and others.

 

We're anticipating next year we'll be down a little bit versus actuals this year but still in the ballpark.

 

MR. K. PARSONS: Okay, that's good.

 

We'll go to section 3.3.03. I'm going to go to Employee Benefits there, $3,400 spent. Why is there nothing forecasted for this year?

 

MR. PUDDESTER: This was again related to workers' compensation. I guess historically we've not had significant costs associated with those expenditures. We did have some items last year but we're not anticipating that we'll see that again. It's difficult to predict from year to year.

 

MR. K. PARSONS: Okay.

 

On the Supplies line, you're looking at savings of almost – I think it's around $50,000. Where are you going to achieve this to this year?

 

MR. PUDDESTER: Donna, do you want to take that one?

 

MS. KELLAND: You'll notice there's a bit of a rebalancing there between Supplies and Purchased Services. Historically, we've charged the one account where we should have been charging to the other. So we're just trying to bring that more in line with where the expenditures should actually be.

 

Supplies would be things like our actual paper stock and things like that. Purchased Services are the actual printing charges on the big machines that we have downstairs. So it's just trying to rebalance those costs a bit into the proper line items.

 

MR. K. PARSONS: Okay.

 

We're looking now at Purchased Services. Okay, so that's the difference between the two of those.

 

A general question for you now; they always used to have a problem downstairs with humidity. It used to be a huge problem. Have they done anything downstairs with the – because the machines. I know this from my past life. They used to have a major issue down there.

 

A certain time of year there used to be water on the floor, and I know they were always looking to put in dehumidifiers and stuff like that. We even brought them in – with the machines when we were working on them because that's what I used to do.

 

I'm just wondering what improvements have been done down there? It was a major issue. It was really huge.

 

MR. PUDDESTER: I'll ask Donna to take that as well.

 

MR. K. PARSONS: That's just a general question. I don't mean to put you on the spot or anything.

 

MS. KELLAND: I could say something about the three floods that we've had down there in the last three or four years. But other than that, no, I think things have improved a fair bit. It may be more of a question for Transportation and Works, but they do their best to try and control those because the machines that we have done there are sensitive to humidity, as you know.

 

MR. K. PARSONS: Very sensitive, yes.

 

MS. KELLAND: So we've had a fair bit of improvement in the machinery stock over the last two or three years, in part, as a result of a couple of those floods. But I think it's fair to say I don't think there's any water on the floor down there anymore.

 

MR. K. PARSONS: One time you could go in there and it was wicked, unreal. I used to hate – when I walked in I knew what the problem was.

 

MR. JOYCE: That was in Noah's days, b'y, when you were down there.

 

MR. K. PARSONS: Okay, we'll go to section 4.1.01. Now, I'm going to get you to explain the Salaries one this time because there is quite the discrepancy in what's revised, budgeted and estimated. So if you could just go from there for me, please.

 

MR. PUDDESTER: There was a fairly large underspend last year. That's not been inconsistent with some prior years. It's a result of multiple vacancies. Those were due to normal staff turnover arrangements, plus some positions that we have that are hard to fill – they require some specialized industry or sector experience related to occupational health and safety – and locations that have been difficult to fill. For example, in Labrador, we've had some chronic vacancies in those locations.

 

So those combinations of positions resulted in that underspend again. All of these costs are fully recovered from WorkplaceNL, so it has no net effect on government's bottom line.

 

MR. K. PARSONS: Okay. That's interesting.

 

MR. PUDDESTER: What you're seeing next year is a decrease of about $700,000. We've gone through all of those positions now to try and rightsize the budget a little bit more to reflect some of these positions that have chronically not been able to be filled or have been filled.

 

We're doing some reviews of some of the specific sector-related positions to determine if those are the right sectors or whether we need to redeploy those inspectors to other ones, given the nature of the industry in Newfoundland and the current economy as well.

 

MR. K. PARSONS: Oh, okay.

 

The line on Professional Services, $590,000; a huge difference.

 

MR. PUDDESTER: Yes, from time to time Occupational Health and Safety will employ outside expertise on various files they're involved with. This specific situation was related to an ongoing study being done in Lab West around silicosis-related conditions of former mine workers. The Lab West medical audit is specifically what this one was.

 

So we had some billings from the prior year that were delayed and paid out in this year. This has been an ongoing – I think we're in year three now of this study. So it was just some timing issues related to when those invoices were paid.

 

MR. K. PARSONS: Okay, just a huge difference. I knew it had to be something like that.

 

MR. PUDDESTER: Yes. So you would have seen in the previous year an underspend on some of those.

 

MR. JOYCE: That was a great program – I say to the Member – that your former administration brought in to help with the disease in Lab West. It was a great program and this continues. It's an ongoing effort and I applaud the government for bringing it in, the prior government for bringing it in.

 

MR. K. PARSONS: Okay.

 

Again, I'm going to go to the revenue line. Just give us an explanation.

 

MR. PUDDESTER: Essentially, what you're seeing there is an offset of the entire expenditure in that division. Again, all of the expenses of the Occupational Health and Safety Division are recovered by billing to WorkplaceNL. So you're seeing it almost mirrors identically the amount of the vote.

 

MR. K. PARSONS: Okay.

 

Section 4.2.01; can you give me an overview of what this is all about, of the program?

 

MR. PUDDESTER: Yes.

 

So again, appropriations; this is an older program related to some financial assistance that was being given to the dependents of the former miners of the fluorspar mines in St. Lawrence. This program has been in place for a number of years, I can't remember when it first started – so back in the '90s. This is just payments to the surviving spouses of the mine workers. Every year this amount is just based on the number of individuals who are still receiving those payments, those who are still living.

 

MR. K. PARSONS: All right.

 

The next one, I just want to go to the Grants and Subsides. Again, just give me an explanation. Who receives them?

 

MR. PUDDESTER: These relate to – the grants are given to agencies that advocate and promote for occupational health and safety. There were only two items last year. The Newfoundland and Labrador Fish Harvesting Safety Association was given a grant for $5,600 and the Forestry Safety Association had a small grant of $500, so not large amounts. Next year we are looking at a slight increase but less than the previous year's budget, and that's to deal with the fiscal environment.

 

MR. K. PARSONS: All right.

 

Section 5.1.01, Salaries – I know the answer to that one.

 

I want to go to Transportation and Communications. Why the difference – I know we're gone back, but what expenditures were there last year?

 

MR. PUDDESTER: We've moved now into the Review Division. I think it's appropriate that Marlene Hickey, who's the chief commissioner for the Review Division, would take these questions.

 

MS. HICKEY: The variance in Transportation has to do with the travel required out of town for workers' compensation hearings. Last year we conducted approximately 100 hearings across the province, outside the St. John's region. Each hearing costs approximately $350 in travel costs. So that number varies from year to year, depending upon the number of cases outside of St. John's.

 

As well, we also have a staff member attend the hearings with the review commissioners for a number of reasons, safety being one. So that's the reason for the variance this year.

 

There was also a variance there last year as well and the year before. So it's something that we really have little control over, as we try to provide the best services to all of the claimants. 

 

MR. K. PARSONS: Okay.

 

I'm just wondering where we are with hearings. Is there a backlog? How's the timing with the number of hearings that are in place right now while people are waiting for it?

 

MS. HICKEY: Our backlog was eliminated as of November 2015. We are currently operating with 72 cases. There is no wait time. We are prepared to schedule a hearing on those cases as soon as the individuals indicate they are ready. So generally now, if all the parties are ready, we can have a hearing scheduled within 60 days. We hope to have decisions out in four to six weeks. So we've made great advances in the management of our caseload in the last year.

 

MR. K. PARSONS: Excellent.

 

On the Supplies line, there's a variance there from what we spent. We didn't spend a lot there last year, so we must have saved a few dollars somehow on that line. Do you want to explain that?

 

MS. HICKEY: Generally, paper is our biggest consumer of our funds. So we've made a lot of efforts to turn to electronic documents wherever we can. We've reduced the amount of paper we've been using. We're not sure whether or not that will carry through, so we've kept it at our budgeted amount just to see what happens.

 

MR. K. PARSONS: You do get a lot of paper when you do a hearing, I got to say that.

 

MS. HICKEY: We absolutely do produce a lot of paper.

 

MR. K. PARSONS: I just want to look at Purchased Services. Last year it was $190,000 and we are back to this Estimate from the budget last year. What was the $190,000 difference?

 

MS. HICKEY: The difference this year had to do with the renewal of the lease for the office space. We had some arrears payments that were paid out in this year and the lease was renewed at a slightly higher rate. So that's the variance for that year. Our annual amount going forward is not expected to change though from what we have this year.

 

MR. K. PARSONS: Okay.

 

Again, I'll ask the same question I asked about the Revenue line.

 

MS. HICKEY: The operations of the Review Division are 100 per cent recoverable from the injury fund of WorkplaceNL.

 

MR. K. PARSONS: Okay.

 

I think that's it for the line-for-line stuff. I just have one question, a couple of questions actually, for the minister. I'm just going to relate it to my own district, if that's okay with you. We're finding a lot for inspections on septic design and stuff like this. I'm sure that it's not only in my district; it's in a lot of districts that there's usually a wait and delay. I get a lot of calls – I'm sure you do – from areas that are waiting for people to do inspections. Are we doing anything to improve that?

 

MR. JOYCE: Definitely.

 

MR. K. PARSONS: You get the same thing I do.

 

MR. JOYCE: I can assure you we are because the same thing is happening out our way also. When it comes in, a lot of times there may be an adjustment to their septic design, but there is a movement to ensure that it's done in a timely matter. There are a lot more coming in because I know the department is enforcing them a lot more. There are a lot more actually designs – people who are complying now are forced to comply because of it, but there is a movement afoot to ensure that the delays are minimal and everything is being done to ensure that it's done in a timely manner.

 

MR. K. PARSONS: You find that sometimes, especially in home construction, people are on timelines to get it done and get it closed in for the winter. I had two or three occasions last year that the inspection was the real thing that held it up. Actually, there was a gentleman that was off sick or something that delayed most of it, so it seemed like we were just down to the one inspector in the area.

 

I know, talking to other Members, that it's common in a lot of areas. It's just something that I think we should be really looking at because it is an issue out there with a lot of constituents. It's the number one call I get from anything to do with Service NL.

 

MR. JOYCE: Leigh (inaudible).

 

MR. PUDDESTER: The septic design involves not just the inspectors from Service NL, but also the designers that homeowners have to hire. We do have standards around the turnaround time when we receive those applications. Obviously if we have vacancies, we may deal from time to time with difficulties in meeting those, but we certainly strive to do that.

 

We are trying to work with the industry. Oftentimes, they can assist in that process by giving us advance notice or letting us know when things are going to need approval to line up with construction schedules as well because we may have some flexibility to work with them. So we try and work with the designers and the homeowners to ensure that we don't delay things.

 

MR. K. PARSONS: Okay.

 

It's just that it is an issue, and I'm sure you've heard lots of it and so have I. I called the department lots of times and thanks to you guys and everybody for helping out, but it is probably the number one thing that I find with the department. I don't know if it's a manpower issue.

 

So I'm good.

 

CHAIR: Shall 1.1.01 carry?

 

SOME HON. MEMBERS: Aye.

 

CHAIR: Carried.

 

On motion, subhead 1.1.01 carried.

 

CLERK: 1.2.01 through 5.1.01 inclusive.

 

CHAIR: Shall 1.2.01 through 5.1.01 inclusive carry?

 

SOME HON. MEMBERS: Aye.

 

CHAIR: Carried.

 

On motion, subheads 1.2.01 through 5.1.01 carried.

 

CLERK: The total.

 

CHAIR: Shall the total carry?

 

SOME HON. MEMBERS: Aye.

 

CHAIR: Carried.

 

On motion, Department of Service NL, total heads, carried.

 

CHAIR: Shall I report the Estimates of the Department of Service Newfoundland and Labrador carried without amendment?

 

SOME HON. MEMBERS: Aye.

 

CHAIR: Carried.

 

On motion, Estimates of the Department of Service NL carried without amendment.

 

CHAIR: I will ask if there are any changes –

 

MR. K. PARSONS: Just a quick word?

 

CHAIR: Okay.

 

MR. K. PARSONS: I'd like to thank the minister and his staff for your time tonight. It was very informative and I look forward to working with you guys and ladies. Thank you for everything that you do for the people of Newfoundland and Labrador.

 

CHAIR: Are there any changes to the minutes circulated from the previous meeting?

 

We will move to adopt the minutes.

 

MR. FINN: So moved.

 

CHAIR: Thank you.

 

On motion, minutes adopted as circulated.

 

CHAIR: Thank you very much, everyone.

 

The next meeting of the Government Services Committee will be on Tuesday, May 3, at 6 p.m. right here.

 

A motion to adjourn?

 

MR. KING: So moved.

 

CHAIR: Moved.

 

Adjourned.

 

On motion, the Committee adjourned.