March 27, 2018
HOUSE OF ASSEMBLY PROCEEDINGS
Vol. XLVIII No. 5
The
House met at 2 p.m.
MR. SPEAKER (Trimper):
Order, please!
Admit
strangers.
Please
be seated.
Order,
please!
The hon.
the Minister of Finance and President of Treasury Board.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
Thank you, Mr. Speaker.
I move,
seconded by the Premier, that this House approves in general the budgetary
policy of government.
MR. SPEAKER:
The motion is that this House
approves in general the budgetary policy of the government.
The hon.
the Minister of Finance and President of Treasury Board.
MR. OSBORNE:
Thank you, Mr. Speaker.
As we
embark on Budget 2018 and our government's vision for Building for Our Future, I
would like to reflect on the considerable progress that we have made as a
province since December 2015.
I have
always believed that you need to have a solid understanding of where you have
been before you can go forward.
In
December of 2015, Newfoundlanders and Labradorians were facing an unprecedented
$2.7 billion deficit. We inherited a fiscal policy guided by: No realistic plan
to return the province to surplus; Long-term plans based on the belief that oil
would always be at $100 per barrel; A promise of only $3 billion equity
investment in Nalcor Energy that was expected to generate $12 billion in
revenue; and, we were told that the investment in Muskrat Falls would be
returned in just eight short years.
Mr.
Speaker, there have been many who said Newfoundland and Labrador could not
withstand the financial crisis we inherited. Those individuals underestimate the
spirit of Newfoundlanders and Labradorians and our ability to overcome
challenges.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
Mr. Speaker, 100 years ago
our province lost an entire generation of young men in World War I, it's
difficult to imagine the impact on our morale, cultural and economic fibre. As a
people, we were able to overcome that devastating impact.
Our
resilience allowed us to endure the economic challenges of the 1930s; and we
persevered through the social and economic effects of the collapse of the cod
fishery in the 1990s and the outmigration of Newfoundlanders and Labradorians
that followed.
Newfoundlanders and Labradorians are strong. We are resilient.
We have
made significant progress over the last two years, Mr. Speaker, and we will
overcome the fiscal challenges that our province now faces.
We have
reduced our deficit from a projected $2.7 billion to a little more than $800
million today. We are on target to return to surplus, despite the volatility of
oil prices. We are moving forward with a strong commitment to creating
conditions for businesses and employment growth.
Newfoundlanders and Labradorians have an unwavering love of this province.
There is
perhaps no better example of this than Mr. Philip Hicks who was a long-time
resident of Tors Cove before his recent passing. Mr. Hicks, as one of his last
wishes, wanted the money from the sale of his house to go to the people of
Newfoundland and Labrador. He said that this province has been good to him,
especially in his senior years. He also said that this was his way of saying
thank you.
That
gesture, Mr. Speaker, highlights the spirit of Newfoundlanders and Labradorians
as we lend a helping hand to overcome challenges.
Our Way Forward
There
isn't a one size fits all solution to the issues facing our province.
We also
cannot take such severe actions as massive job reductions and cuts to services
as they would have far-reaching consequences on our already challenged economy
due to the winding down of major industrial projects. As our economy stabilizes
coming off these projects, employment remains one of our key challenges and we
are addressing this head-on. Our approach is focused on creating opportunities
for job growth across sectors and retaining our youth by supporting them to
pursue career opportunities right here at home.
Building
for Our Future addresses our province's economic, social and fiscal challenges –
it is a way forward that is methodical, fair and responsible.
This is
the approach that our government is taking, Mr. Speaker, and this is the
approach we will continue to take.
We are
driven by the goals of: managing our fiscal situation; delivering valuable
programs and services; getting better outcomes for our investments; creating an
environment which supports economic development and job creation; and creating
opportunities for residents to excel in their careers.
To
achieve these goals, our way forward requires a smart, evidence-based approach.
To help
guide our actions, a gender-based analysis was used to inform Budget 2018
decision making. A gender responsive budget acknowledges the inequalities
between genders and seeks to reduce those inequalities by implementing measures
that directly aim to improve lives.
Our
vision for the province includes equal participation of women in leadership
roles, and in this year's budget we are providing funding to develop a
government-community initiative aimed at increasing the number of women in
leadership roles.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
We are also supporting a
women's conference on the status of women in Newfoundland and Labrador to
facilitate knowledge sharing and mentorship opportunities for our female
leaders.
Our
government will also support women in trades and technology occupations by
funding the Office to Advance Women Apprentices and Women in Resource
Development Corporation, as well as two Roundtables on the Economic Status of
Women – one in Stephenville and one in Happy Valley-Goose Bay.
Working with the Federal
Government
An
important part of our approach has been the relationship with the Federal
Government and the ability to leverage available funds for maximum benefit.
For
municipalities, we have partnered on initiatives that have improved clean
drinking water and wastewater systems, along with road and community
infrastructure. We have also advanced projects to support the growth of tourism,
ocean technology, aerospace and defence, film and television, and manufacturing,
along with other industries.
We will
continue to identify opportunities where we can join our federal partners in
realizing the full benefit of our considerable investments and to help create
opportunities for economic success.
Smarter Government
Amidst
the fiscal challenges we face, we have to be open to finding new ways of doing
things.
Within
departments and government organizations, we are carefully examining how
programs and services are delivered in order to secure the best possible
outcomes. This reflects the principles of our Way Forward to advancing a
smarter, more accountable approach to managing government's operations.
Our
progress over the last two years has been encouraging.
We have
decreased government's footprint by 10 per cent, or more than 92,000 square
feet, by reducing the amount of leased space. This has resulted in approximately
$2.7 million in savings annually. We will continue to look at ways to optimize
office space, identify vacant or unused space and evaluate the potential to sell
vacant infrastructure.
By
partnering with other Atlantic Provinces, we have secured a new format for
driver's licences for motorists that offers improved security and protection
against identity theft while realizing savings.
Our
approach to health care is addressing increased demand for long-term care and
creating economic benefits.
For the
first time in our province's history, we are partnering with industry to build a
145 bed long-term care facility in Corner Brook which will result in $14.6
million in savings versus the traditional approach to advancing such
infrastructure. We are taking a similar approach in Gander and Grand
Falls-Windsor where we will build 60 bed facilities in each of these
communities.
As
committed to in the 2015 election campaign, the people of Western Newfoundland
have waited long enough for a new regional hospital. We are on target, Mr.
Speaker, to completing the request for proposals this year and construction will
begin in 2019.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
Mr. Speaker, in total, the
construction of these major health care infrastructure projects will generate
more than 4,600 person years of employment and more than half a billion dollars
in economic activity.
These
actions are just the beginning.
We will
continue to be innovative in our actions, identify opportunities to improve
access to services, and secure better outcomes.
Through
The Way Forward we are continuing to action initiatives to help improve
government efficiency. Over the next year, we will implement initiatives to
build on the progress achieved to date.
Examples
of these initiatives include:
Consolidating government's vehicle fleet under one department, which will result
in a reduction in the number of vehicles by 10 per cent. This will save
taxpayers hundreds of thousands of dollars over the long term.
Consolidating collections activities to reduce redundancy and standardize
collections processes. This will provide a single approach to managing
receivables owed across multiple departments.
We are
creating an Asset Management Framework to guide how we assess and dispose of
assets in a way that enhances service delivery and ensures maximum financial
return.
We are
adopting a strategic sourcing model that leverages the consolidated purchasing
power of government to secure better prices for goods.
We will
take steps to make it easier for citizens and businesses to access services
online, which will improve the overall experience of interacting with
government, and ultimately result in greater efficiencies and savings for the
people of our province. We are working towards a single government ID that
citizens and businesses can use for all services accessed through a single
portal.
Collective Bargaining
Mr.
Speaker, our recent collective bargaining with NAPE and its 19,000 valued public
servants reflects our fiscal reality.
By
working cooperatively, we were able to secure a four year wage freeze, marking
the first time in the province's history that such a freeze has been mutually
agreed to.
We've
eliminated severance, which is a major achievement that removes financial
liability. Overall elimination of severance will result in $25 million in
savings annually and $35 million once we are able to pay the debt.
We've
secured changes to group insurance. Overall implementation will result in
millions of dollars in savings in 2018, and by 2026, the annualized savings will
be in the tens of millions of dollars and continue to grow.
This
agreement strikes the balance between respecting the important work provided by
our public service and the need to address our fiscal situation. We were able to
protect a vulnerable economy by providing our employees with job security while
maintaining our ability to make workforce changes through attrition.
We look
forward to carrying on with respectful, collaborative dialogue with our other
bargaining units.
Fiscal Review: 2017-18
The
revised deficit for 2017-18 is $812 million, which is an improvement from
mid-year when the deficit was projected to be $852 million. The revised deficit
includes severance expenses under the new collective agreement totalling $37
million, which over the long term will help government realize significant
savings.
Fiscal Forecast
Despite
the issues that our province has had to face there are many positive
developments occurring in the provincial economy.
There is
significant potential in our province's natural resources industries.
Mr.
Speaker, for example, mining continues to be a major contributor to the
province. In 2018, the mining sector is forecasted to employ 6,000 people and
have $3.4 billion in mineral shipments.
Our
excitement for this industry grew when the Fraser Institute ranked Newfoundland
and Labrador as the 11th most attractive jurisdiction in the entire world for
investment. This reflects positively on our province and potential investors.
Some
highlights from this sector, Mr. Speaker, include the completion of the Long
Harbour nickel processing plant, which is adding to the long-term productive
capacity of our economy. Tacora is expected to begin production at the former
Wabush Mines this year and production should begin at the fluorspar mine in St.
Lawrence. Furthermore, development of the Voisey's Bay underground mine is
expected to resume and IOC's Wabush 3 project will provide a new source of iron
ore to extend the life of its Carol Project.
Mr.
Speaker, I can't help today but think about the employees in Labrador who voted
to strike. I will say that our government will work with both sides to try and
help resolve that issue.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
Within our oil and gas
industry, we are excited about first oil at Hebron, which is the province's
fourth offshore oil project. This project will bring new revenue to the
province. Mr. Speaker, the West White Rose project will generate over $3 billion
in royalties, return on equity and taxes with first oil expected in 2022.
Infrastructure enhancements at the St. John's International Airport and Marine
Atlantic, along with the new St. John's Convention Centre and added capacity in
the accommodations sector are helping to expand our tourism sector, Mr. Speaker.
Over the
last year, we have partnered with community and industry stakeholders to develop
innovative approaches focused on Building for Our Future. To date, we have
targeted high growth opportunities in oil and gas, agriculture, aquaculture and
technology. These areas, Mr. Speaker, will help diversify our economy and create
new employment opportunities.
We are
confident in our actions and the business and employment opportunities that will
follow. Our government believes that there is significant potential, for
example, to more than double the number of year round jobs in aquaculture from
1,000 people to 2,100 and add 500 person years of employment to the agriculture
sector.
As
reflected by the success of the Federal Government's Ocean Supercluster
initiative, the opportunities are limitless for our advanced technology sector.
Their accomplishments highlight that to be successful you don't have to be in
large areas such as New York, London or Toronto – businesses can grow and
compete in the global market from right here in Newfoundland and Labrador. Mr.
Speaker, we have several leading-edge technology companies that are competing
globally and they're continuing to expand.
The
success of companies and academic institutions participating in the Ocean
Supercluster initiative are representative of the more than 165 businesses in
our advanced technology sector that employ approximately 4,000 people. This
sector continues to generate $1.6 billion in annual revenues.
Mr.
Speaker, we are also primed for continued growth across a number of other
industries as well.
The
latest data on the tourism sector accentuates an industry that is home to
exciting business opportunities. Showcasing Newfoundland and Labrador to local,
national and global visitors has seen tourism become an economic pillar that
supports 2,600 businesses in our province, and nearly 20,000 jobs and generates
$1.13 billion in spending.
The
fishing and aquaculture industry continues to be a vital component of our
provincial economy. In 2017, fish and seafood production was $1.3 billion,
marking the third consecutive year that the value exceeded $1 billion. This
industry also employs more than 16,000 people from over 400 communities in
harvesting, processing and aquaculture operations.
Mr.
Speaker, the increasingly protectionist trade environment that presently exists
in the United States is challenging our forestry sector, and in particular
Corner Brook Pulp and Paper. We believe that the tariffs are unwarranted – we
stand by our support of the company and the individuals and families that make
their livelihood from the forestry industry and we will continue to work with
them to support that industry.
While we
are optimistic for the future of our industries, we are still subject to the
volatility of oil and other commodities. I have to emphasize that these local
industries are a part of a very competitive global market that is increasingly
unpredictable.
This
uncertainty has been a factor in our ability to meet the targets outlined in our
seven-year fiscal plan. In 2018-19, oil revenues will be lower than expected due
to lower production and changes to the US-Canada exchange rates. This, along
with the $52 million for the remaining one-time severance expenses have
contributed to our revised forecasted deficit of $683 million.
I have
to point out, Mr. Speaker, that the severance wasn't forecast in our deficit and
we are actually ahead of target when you remove severance at $631 million.
We
cannot allow these cycles to diminish the potential of our natural resources –
most notably, oil and gas. However, we need to make sure that our economic
policy is not singularly focused on oil but supportive of a more diversified
economy.
Through
the implementation of Advance 2030, our goal is to position Newfoundland and
Labrador as a preferred location for oil and gas development while supporting
the growth of an internationally recognized supply and service sector. We
believe the potential for direct employment to be more than 7,500 people in
operations with over 100 new exploration wells drilled by 2030 and that is very
much within our reach.
SOME HON. MEMBERS:
Hear, hear!
Our Financial Plan
MR. OSBORNE:
Mr. Speaker, we remain
on-target to return to surplus by 2022-23 while operating in a difficult fiscal
environment. This is made possible because of our actions that we have taken and
the balanced decisions made in Budget 2018.
When our
government set targets two years ago, we did so recognizing they were ambitious.
In
Budget 2018 we have continued to correct the course to stay on track. The
decisions we have made this year, and the plans for future years are all meant
to return to surplus by 2022-23. The fact that this goal is still in reach, Mr.
Speaker, in spite of the challenges that we have faced with reduced revenues, is
a significant accomplishment in itself.
SOME HON. MEMBERS:
Hear, hear!
Fiscal Control
MR. OSBORNE:
Our approach focuses on reducing spending within government while advancing
programs and services to our citizens. A truly balanced approach involves many
different areas of improvement, Mr. Speaker.
In the
past two years, we have eliminated 795 positions within our government
departments while maintaining service delivery and protecting a vulnerable
economy.
We
recognize that there is opportunity to expand attrition plans across the entire
public service, including our agencies, boards and commissions, as there are
more than 5,000 public servants who are now eligible to retire. By carefully
conducting workforce planning we will be able to reduce the size of the public
service and be able to spend more in a gradual way without the risk of
disrupting service delivery or the economy.
Longer
term, we continue to look for savings within all areas of the public service,
including reducing discretionary spending and working with management and unions
to address issues such as overtime and sick leave.
Price Assumptions
In
Budget 2018, we are forecasting oil at US$63 a barrel in both 2018-19 and
2019-20. Mr. Speaker, recognizing the volatility of oil, forecasts are carefully
considered, and are based on the forecasting models of 11 industry analysts.
Budget
2018 also forecasts US-Canada exchange rates at $0.79 in 2018-19 and $0.796 in
2019-20.
Our
actions are informed and based on the best available information.
Revenue
Revenue
forecasts have been reduced slightly from Budget 2017 estimates, mainly due to the volatility of oil revenues. While we
have reduced our reliance on oil, we remain on target to return to surplus.
In
2018-19, revenue is expected to reach $7.67 billion and is projected to trend
upwards between now and 2022-23.
In 2016,
the Federal Government announced its intent to implement a federal carbon
pricing system. This system covers all provinces and territories.
Our
government is currently finalizing our made-in-Newfoundland and Labrador
approach to carbon pricing, as directed by the Federal Government. We are
working with the Federal government on the details and will communicate our
approach to the public this spring. As this work progresses, we will phase out
the remainder of the Temporary Gas Tax.
In 2016,
our government had no choice but to make difficult decisions – one of which was
placing a tax on insurance.
To
support consumers and businesses, we will gradually decrease the tax on
automobile insurance by a minimum of five per cent over the next four years.
Beginning on January 1, 2019, we will reduce the tax by two per cent. The tax on
automobile insurance will be reduced another one per cent on January 1, 2020,
another one per cent on January 1, 2021 and another one per cent on January 1,
2022. We will continue to review this tax and make reductions as our fiscal
situation improves.
On
January 1, 2019, we will also ease the payroll tax on employers by increasing
the threshold from $1.2 million to $1.3 million. This will allow an additional
50 employers to be removed from this obligation and reduce the tax by up to
$2,000 per year for the remaining employers. We see this as a positive step
forward for employers in this province.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
Mr. Speaker, work continues
on in the independent review of our province's tax system. We expect the
recommendations will be considered for 2019 budget and include social and
economic factors, as well as possible tax incentives.
Expenses
Participation in federally directed programs such as carbon pricing and
wastewater initiatives comes at an added cost to provinces and territories.
While supporting these initiatives, we have been able to stay on forecast for
2018-19 at $8.36 billion.
It
should be noted that when the 100 per cent federally funded programs are
considered, the total net expenses are $8.29 billion, which is lower than
forecast, Mr. Speaker.
Borrowing
In
Budget 2017, we recognized that borrowing would need to increase in 2018-19, and
had originally forecast $1.6 billion in borrowing.
For
Budget 2018, gross borrowing will be $1.45 billion. This is lower than the
original forecast. Net borrowing for the duration of government's 2022-2023
fiscal plan is increased by $1.4 billion over those years, of this, Mr. Speaker,
$1.1 billion is due to Nalcor.
The
payout of severance to our public service employees will be approximately $600
million spread out over several years. This one-time cash flow will reduce
government's liability, saving tens of millions of dollars annually. It
eliminates millions from being added to that liability each and every year in
additional earned benefits as we go forward.
The Balanced Approach Going
Forward
Building
for Our Future is an approach that considers our challenging fiscal situation,
as well as the need to provide access to government programs and services and
helps create new businesses and employment opportunities.
The
initiatives supported in Budget 2018 reflect that deliberate approach, as well
as our social and economic factors.
Health Care and Healthy
Living
Health
care spending represents the largest portion of our provincial budget. Annually,
the cost to deliver health care programs and services in Newfoundland and
Labrador are at the highest in Canada and has increased by 130 per cent since
2001.
As a
government, Mr. Speaker, we have been diligent in maintaining health care
spending while improving access.
It is no
small undertaking but we are carefully changing how our health care system
operates. We are shifting focus from treatment to preventative care; providing
care in the home and community where possible and where appropriate, and
strengthening primary health care options.
We are
also using $72 million secured from the Federal Government to improve home and
community care and mental health and addictions services. More specifically, we
have developed a Home First Integrated Network with wrap around services for
clients and an extension of available services in the community beyond
traditional work hours.
We will
initiate a province-wide palliative care approach with greater training for
clinicians, service providers and caregivers who provide end-of-life care, and
we will increase access to home care supports for people with dementia.
Our
government has placed a spotlight on transforming how mental health and
addictions services are delivered, Mr. Speaker, breaking down stigmas, and
removing barriers to treatment.
We have
made progress, by using federal funding, we are better able to support those
experiencing mental health issues. Mr. Speaker, we will develop a province-wide
mental health service delivery model for children, youth and emerging adults to
address existing systemic barriers and gaps. We will expand e-mental health
services, improve access to addictions services and improve community-based
services to replace hospital care.
This
year, Mr. Speaker, we are allocating $6.1 million to advance a value-for-money
assessment for a new mental health facility to replace the Waterford Hospital.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
Mr. Speaker, this new
facility will be the focal point of our community-centric approach to mental
health and addictions.
Through
our province's participation in the pan-Canadian Pharmaceutical Alliance, we
have achieved a lower price on generic drugs and realize savings within the
Newfoundland and Labrador Prescription Drug Program.
This
year, we will reinvest these savings back into the program. Approximately $7.5
million will be reinvested to add new drug therapies. This investment will offer
people who use the program a range of new treatment options.
We all
recognize that improved health outcomes start with healthier and more active
lifestyles.
In The
Way Forward, our government committed to increase physical activity by seven per
cent and reduce the province's smoking rate by four per cent by 2025.
To help
achieve these goals, $200,000 has been allocated for the Carrot Rewards program,
which encourages Newfoundlanders and Labradorians to increase their daily
physical activity levels. This free mobile app rewards users for living
healthier, active lives and so far, Mr. Speaker, we've seen over 36,000
residents use the app.
We are
also investing $250,000 in smoking cessation. This will build on existing
support for the Newfoundland and Labrador Lung Association Smokers' Helpline,
the Alliance for the Control of Tobacco and the Provincial Smoking Cessation
Program for Individuals on Low Income.
In
Budget 2018, we are allocating more than $115 million for operational funding
for community groups, as well as support for projects and programs that they
deliver to the residents of Newfoundland and Labrador. A multi-year approach for
community grant funding will be announced in the coming weeks.
Supporting Seniors and
Inclusive Communities
Our
government recognizes that we have the responsibility to support all of our
citizens regardless of age, gender, ability or geography. It is a responsibility
that we take very seriously.
Mr.
Speaker, two years ago our government introduced a new Newfoundland and Labrador
Income Supplement and expanded the Seniors' Benefit in order to support
low-income seniors, individuals, families, and persons with disabilities.
Today,
we are continuing to provide these valuable programs with a total investment of
$121 million. In 2017, 47,000 seniors and their families received the Seniors'
Benefit and 155,000 families received the Income Supplement.
Newfoundland and Labrador is known for its culture of hard working individuals.
For some people, injuries in the workplace have negatively impacted their
livelihoods.
Together, with WorkplaceNL, our government is committed to maintaining a
sustainable workplace injury system that works for employers and employees. That
is why, beginning April 1, we are increasing the income replacement program and
rate for injured workers from 80 per cent to 85 per cent.
The
higher income replacement rate will improve benefits to injured workers and
dependent spouses, without increasing the average assessment rate charged to
employers.
Mr.
Speaker, we believe that safe, stable and affordable housing is fundamental to
the social and economic well-being of individuals, families and our communities.
Our government is working closely with community partners to help improve access
to affordable housing and make it easier for first-time home buyers to enter the
market.
This
year we are increasing the Rent Supplement Program by an additional $2 million.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
Mr. Speaker, this will
increase the number of rent supplement units and support the portable rent
supplement pilot program.
We will
also invest $10.2 million for maintenance, repair and upkeep of public housing
properties to ensure safe and quality homes are available to tenants. To
modernize and renovate public housing, $3.6 million has been allocated, which
will help ensure we continue to provide affordable housing.
Our $8.6
million investment in the Supportive Living Program and the Provincial
Homelessness Fund will allow us to partner with the community sector to prevent
homelessness.
An
additional $2.7 million will be invested this year to leverage federal funding
under the Investment in Affordable Housing Agreement. This will enable
Newfoundland and Labrador Housing to partner with affordable housing developers
in the private and non-profit supportive living sectors.
In
partnership with the Federal Government, we anticipate building new housing
units, as well as upgrading some of our existing social housing units. This will
reflect present day family size and needs of seniors. The focus will be on
providing additional housing to those who need it and to reduce wait lists for
social housing.
Mr.
Speaker, yesterday, we announced, along with the Minister responsible for
Newfoundland and Labrador Housing, that our government is making it easier for
new home buyers to purchase their first home. We are doing this through two news
programs.
The
First-Time Homebuyer's Program will include financing for a down payment as well
as a $2,000 grant for eligible first time home buyers to purchase either a new
or existing home. Newfoundland and Labrador Housing Corporation is also
increasing the average household income maximum for eligibility from $65,000 to
$75,000 for full benefit and up to $85,000 in annual income for partial benefit.
The program will be extended to March 31, 2019, with available funding of $1.25
million, and will assist an estimated 100 households to secure home ownership
for the first time. Our new Home Purchase Program will provide a $3,000 grant
towards the purchase of a newly constructed, never sold or lived in home under
$400,000, including HST.
These
innovative programs, Mr. Speaker, will stimulate the new home construction
market, economic activity and job creation.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
Our government is taking a
stand against violence and harassment.
Our
amendments to the Family Violence Prevention Act reflect the value we place on
further supporting adult victims of domestic violence and their children. As a
community, we need to work together to take action and end violence in all forms
and break down the barriers that victims face.
In this
year's budget, our government will continue to expand on this important work and
contribute to the valuable activities of our community partners. Some of this
year's commitments include: $11.8 million to support initiatives and
not-for-profit groups engaged in the delivery of transitional and emergency
housing; $250,000 to provide legal support to survivors of sexual violence.
Our
government is also providing more than $3 million in core operational funding
for 10 Regional Coordinating Committees Against Violence, eight women's centres,
the Transition House Association of Newfoundland and Labrador, the Multicultural
Women's Organization of Newfoundland and Labrador, the Newfoundland Aboriginal
Women's Network and the Newfoundland and Labrador Sexual Assault Crisis and
Prevention Centre.
Education, Skills and
Childhood Development
Mr.
Speaker, our government is taking significant steps to bring transformative
change to early childhood development and the province's education system.
The
Premier's Task Force on Improving Educational Outcomes undertook a significant
review of the education system, as well as opportunities to improve early
childhood development.
Their
review included engagement with teachers, parents, students and stakeholders and
led to recommendations that focus on inclusive education, student mental health
and wellness, mathematics, reading, Indigenous education, multicultural
education, early years, career and co-operative education and teacher education
and professional development.
Since
the release of the report, we have discussed the recommendations and next steps
with such special interest and advocacy groups as the Provincial Advisory
Council on the Status of Women, the Provincial Advisory Council for the
Inclusion of Persons with Disabilities, Relationships First-Restorative Justice
Education NL, Choices for Youth, Kids Help Phone, the Coalition of Persons with
Disabilities, the school districts, and the Learning Disabilities Association as
well as others.
Mr.
Speaker, we appreciate some of the challenges parents can experience in securing
care for their children, as well as the cost that comes with providing that
care. There is no disputing that child care is an essential support to parents
participating in the workforce or pursuing workforce development opportunities.
In
addition to approximately $61.6 million invested annually in early childhood
development, over the next three years – in partnership with the Federal
Government – $22 million will be available under the 10-year Child Care
Strategy, Mr. Speaker. This supports early learning and child care options
through subsidies, grants, bursaries and professional learning opportunities.
This
agreement will deliver early learning and child care systems that will improve
the lives of children and their families. It will help: Expand and enhance the
Operating Grant Program to improve accessibility and affordability of child care
for low and middle income families. It will add a new operating grant program
for regulated family child care homes.
It will
enhance the child care capacity initiative by further increasing the net family
income threshold to $35,000.
It will
benefit Early Childhood Educators by providing increased bursaries and grants
for upgrading qualifications and enhancing access to professional learning.
Mr.
Speaker, in September 2016, our government implemented full-day Kindergarten.
Feedback from teachers and parents has been generally very positive. In
September 2018, approximately 5,000 children will enrol in full-day Kindergarten
and join the approximately 10,000 who have already benefited from this
investment.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
By actioning the task force's
recommendations we are bringing positive changes to the education system.
This
year, $6.95 million will be directed towards implementing the recommendations of
the Premier's task force.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
Mr. Speaker, of this, $3.1
million is allocated for reading specialists, learning resource teachers and
instructional assistants in K-12 education; and $1.9 million is allocated this
year to support professional learning for teachers and almost $2 million
provided annually for each of the three subsequent years.
Our
government continues to provide operating grant funding for the Provincial
Information and Library Resources Board. Our investment of approximately $11.3
million accounts for 95.7 per cent of the total library funding and is more than
twice the national average.
Mr.
Speaker, Memorial University and the College of the North Atlantic make a
valuable social and economic contribution to this province. They are also
highly-regarded among their peer institutions across the country and around the
globe.
This
year, we are able to maintain our $87.6 million operating grant to the College
of the North Atlantic and its 17 campuses.
Memorial
University will receive $366 million, which includes $55 million for the Faculty
of Medicine. This continues to represent the highest public investment as a
percentage of university's general operating revenues of any university system
in Canada. To maintain tuition levels for Newfoundland and Labrador students,
$73.1 million has been allocated, which includes an additional $4 million for
Memorial University and $1.1 million for the College of the North Atlantic.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
Mr. Speaker, our government
continues to invest significantly in infrastructure at our public post-secondary
institutions. Projects like the Core Science Facility at Memorial University's
St. John's campus and the Heavy Equipment Centre of Excellence at the College of
the North Atlantic in Stephenville provide significant business and employment
opportunities.
Once
constructed, these new facilities will help improve program delivery, increase
capacity for research and lead to new opportunities to collaborate with
industry.
As
reflected by the considerable investments we are making in Newfoundland and
Labrador's public post-secondary system, our government sees it as being of
vital importance to this province.
Mr.
Speaker, following on the comprehensive review of the K-12 education system, it
is timely to undertake an independent review of the province's public
post-secondary education system. It has been 14 years since there has been a
review of the public post-secondary system. Over that time, there have been
changes to our economy, to our demographics and changes at our post-secondary
institutions.
This
review will help ensure our institutions are well-positioned to meet the needs
of students well into the future, address emerging labour market demands and
continue to contribute to the province's economic growth.
Through
the Independent Appointments Commission, government will appoint a committee of
experts to undertake a system-wide review that will explore how our
post-education system compares to other jurisdictions, and to recommend options
to achieve better outcomes in post-secondary education in a more cost-efficient
manner. Memorial University and the College of the North Atlantic will play key
roles in this review.
Mr.
Speaker, to support skills development and training, we are also investing
approximately $6.1 million to support youth in employment and career related
activities. Government continues to provide funding for Women in Science and
Engineering Newfoundland and Labrador to give female high school students real
work experience in science and engineering careers they may consider in the
future.
Additionally, through a $230,000 cost-shared agreement among the four Atlantic
Provinces – of which $69,000 is coming from this province – the Atlantic
Workforce Partnership Secretariat will be established right here in Newfoundland
and Labrador.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
This secretariat will lead
important work on apprenticeship, labour market information, business supports,
youth initiatives, and immigration.
This
year, our government will continue to modernize and strengthen apprenticeship
through more flexible delivery models. We will further build on our online
capacity for skilled trades.
We will
also continue to collaborate with industry and community stakeholders to
identify and create opportunities for women in trades and technology, providing
annual funding to the Office to Advance Women Apprentices and the Newfoundland
and Labrador Organization of Women Entrepreneurs. In addition, through funding
for the Newfoundland and Labrador Organization of Women Entrepreneurs, women
receive assistance in creating jobs for themselves and others by starting a
business.
Newfoundland and Labrador continues to participate in the Atlantic
Apprenticeship Harmonization Initiative which aligns the rules and standards for
apprenticeships in Atlantic Canada. This year, it will be expanded to include
six more trades and also engage stakeholders in the development of a new
apprenticeship management system. This work will be supported through the
Atlantic Apprenticeship and Harmonization Office which will be located in St.
John's – a first for the province.
Mr.
Speaker, the Provincial and Federal Governments are finalizing agreements that
will provide additional funding to support employment and training programs.
Through these agreements, our government will strive to increase participation
in the local labour market for under-represented groups, including women, and
assist them to achieve gainful employment.
As we
continue to work with industry partners to expand the oil and gas, agriculture,
aquaculture, and technology sectors put forward in The Way Forward, Mr. Speaker,
we are supporting career development opportunities for youth by allocating
$196,000 for a new Student Mentorship Program. This program will be supported by
the Federal Government and will provide 25 youth with work experience in each of
these targeted sectors for a total of 100 student jobs. We have targeted these
high-growth industries through the work of our Cabinet Committees on Jobs.
Safe and Sustainable
Communities
Mr.
Speaker, attracting immigrants to Newfoundland and Labrador is essential as we
respond to the province's aging population, to help increase our population and
support economic activity. Newfoundland and Labrador has many great attributes
that makes our province an attractive place to live.
We will
leverage these strengths as we implement the actions outlined in The Way Forward
on Immigration in Newfoundland and Labrador. Mr. Speaker, this year, we have
allocated $2.4 million in provincial funding and will leverage another $1
million in federal funding to attract and retain new immigrants to this
province.
Building
for Our Future underscores the working relationship with municipalities to
advance infrastructure, create safer, more sustainable communities and encourage
economic development.
In
Budget 2018, we are maintaining municipal operating grants at $22 million;
provincial revenue from the gasoline tax will remain at one cent per litre,
providing $7.1 million annually to municipalities; and, more than $2 million
will be allocated to the Special Assistance Grant program to assist communities
with emergency and small capital needs.
Under
the three-year $100 million municipal infrastructure program, we are investing
approximately $10.6 million in 2018-19 through the provincial Municipal Capital
Works Program. In addition to this, Mr. Speaker, we are providing $18.8 million
to leverage an additional $12.7 million in federal funding under the Small
Communities Fund of the New Building Canada Fund.
Through
our $1.88 million investment in fire services vehicles and equipment, we will
continue to work with our emergency management partners to ensure the safety of
residents and communities. We are also working to assist municipalities to
utilize funds for used fire vehicles where acceptable options are identified.
This funding, along with the supporting cost-shared ratios, encourages a focus
on opportunities for regionalization of services.
Our
government is proud to continue the presumptive cancer coverage benefit that
career and volunteer firefighters now receive.
This
year, Mr. Speaker, we are expanding support for our first responders by
introducing a new Search and Rescue Volunteer Tax Credit.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
This new credit will allow
eligible search and rescue volunteers to claim a $3,000 non-refundable tax
credit starting on January 1, 2019 on their provincial income tax.
Through
Budget 2018, we are also continuing to support communities and help residents
build a greener and more energy efficient province.
To help
reduce high energy costs for low income individuals, $2 million has been
allocated for the Home Energy Savings Program through Newfoundland and Labrador
Housing.
In
collaboration with Newfoundland Power and Newfoundland and Labrador Hydro, we
will continue to implement the Energy Efficiency Loan Program, which provides
low-interest loans for energy efficiency home upgrades. Over the next two years,
we have allocated $1.5 million annually for this vital initiative.
Over the
last two years, Newfoundlanders and Labradorians have continued to see the
impacts of climate change first-hand. We've experienced significant weather
events in the western, central and southern regions of the island, as well as in
Labrador.
We are
consulting with the Federal Government to recover eligible expenses associated
with these damages. We will continue work to ensure residents are supported in
their time of need.
Through
Budget 2018, we have allocated $12.5 million in funding for the Newfoundland and
Labrador – Disaster Financial Assistance Arrangements program.
Flood
risk mapping enables us to know possible outcomes in case of water levels rising
and to assist emergency management partners in responding. To support this
valuable analysis, $1 million is being allocated to update flood risk mapping
studies and forecasting for the Humber River Valley, Exploits River Valley, and
Badger Ice Progression Model.
Through
Budget 2018, we will also invest $1 million to conduct flood-risk mapping and
flood forecasting for Mud Lake and Happy Valley-Goose Bay, as well as $200,000
annually for satellite imagery, field data collection for ice thickness
monitoring, and weather data collection.
This
work is in addition to the recently announced water and ice monitoring on the
Churchill River, and community-based monitoring program that is focused on
mitigating and responding to potential flooding events in the future.
Phase
III environmental site assessments will be undertaken this year through a
$500,000 investment by each of the federal and provincial governments.
We are
continuing to strengthen the justice system in Newfoundland and Labrador.
Our
government is committed to improving access to justice and increasing
transparency and accountability in law enforcement. We believe that justice must
be inclusive and secure full public confidence.
It is
crucial that residents of this province have faith in the administration of
justice. We are committed to improving police oversight by investing $250,000
this year, and $500,000 in future years, to establish a Serious Incident
Response Team, which will provide an increased level of transparency and help
ensure people have trust in the justice system.
To
support safe, efficient and effective policing, corrections, court facilities
and legal services throughout Newfoundland and Labrador $1.8 million will be
used to advance existing renovation projects and planning for the construction
of new facilities.
To
support the relocation of the Family Court to the Argyle Building in St. John's,
we are providing $1.3 million for renovations. This new location will help
improve accessibility to services at that court.
An
investment of $149,000 in the Supreme Court Trial Division on Duckworth Street
in St. John's will address necessary renovations to the public areas in the
courthouse building to improve flooring and lighting.
In
Budget 2018 we are allocating $300,000 to advance planning to replace Our
Majesty's Penitentiary. This funding will supplement the ongoing work related to
the design and construction of a new facility.
A new
penitentiary will foster security, health and safety and operational efficiency,
as well as support Adult Corrections in the development and implementation of
policies and programs that will allow inmates an opportunity to become
productive members of society and break the cycle of reoffending. It will also
enable a direct supervision model which focuses upon interaction between inmates
and staff.
Mr.
Speaker, our government is committing $1.74 million to advance province-wide
mobile crisis intervention teams. These teams will include police officers who
will join with mental health professionals to respond to calls to those in
mental health crisis. This is supported by funding secured through the bilateral
agreement with the Federal Government.
The
Government of Newfoundland and Labrador is committed to making improvements in
the Office of the Chief Medical Examiner. We are investing an additional
$563,000 in the office for a total investment of approximately $1.5 million.
These funds will improve operations by adding staff and resources to the office,
including an additional pathologist.
With the
support of the Federal Government, an investment of $200,000 will be made to
establish a Drug Treatment Court in St. John's. This court will provide
specialized court-monitoring treatment and community service supports for
individuals who have engaged in non-violent offences caused by drug addictions.
Labrador
Mr. Speaker, our government is working hard to support
a strong and vibrant Labrador.
SOME HON. MEMBERS:
Hear, hear!
MR.
OSBORNE:
Socially and economically, we continue with the construction of the
Trans-Labrador Highway because it is of tremendous importance to our government.
This year's budget of more than $83 million will advance four major paving
projects on the Trans-Labrador Highway from Blanc Sablon to Happy Valley-Goose
Bay. These improvements will bring the highway closer to completion and help
link residents and create new business opportunities.
In Budget 2018, $68,000 has been allocated for the
Labrador Trail Grooming Subsidy. This will support a 185-kilometre marked trail
between Nain, Natuashish and Hopedale.
We are pleased to allocate $11 million over the next
three years to support the construction of the Labrador Wellness Centre in Happy
Valley-Goose Bay with $4.2 million budgeted this year.
Our government will also provide $730,000 for the
Labrador Travel Subsidy program to offset costs for teams to travel to
provincial championships and $500,000 to support the Labrador Winter Games,
which will take place in Happy Valley-Goose Bay in March 2019.
Our government appreciates the high cost of medical
travel from Labrador to the island for specialized, insured medical treatments.
The Medical Transportation Assistance Program will
pre-pay the full far price up to $1,000 per year. For airfare costs exceeding
$1,000 per year, we will pre-pay $1,000 plus, 50 per cent of the remaining cost
of the fare.
SOME HON. MEMBERS:
Hear, hear!
MR.
OSBORNE:
To
address concerns regarding the health and well-being of the people of Labrador
as related to the Muskrat Falls Project, our government continues to work
closely with the Innu Nation, Nunatsiavut Government and the NunatuKavut
Community Council.
Budget
2018 will provide approximately $53,000 for a position dedicated to working with
the Independent Expert Advisory Committee, which was established to make
recommendations on mitigating potential impacts of methylmercury from the
Muskrat Falls Project.
The
Government of Newfoundland and Labrador is investing $100,000 in planning for
improvements, including increasing the capacity at the Labrador Correctional
Centre.
Indigenous Communities
Mr.
Speaker, our government recognizes that there are a number of challenges in our
Indigenous communities, primarily related to social issues and other factors
such as the remoteness of communities. This often translates to a higher number
of children requiring the services of the Department of Children, Seniors and
Social Development.
Innu
Nation and the Government of Newfoundland and Labrador have agreed to hold an
inquiry into the treatment of Innu children in foster care. In Budget 2018 we
are allocating $1 million to start this work and advance discussions with the
Federal Government.
Our
government also appreciates that Indigenous women and girls are particularly
susceptible to experiencing violence. To help prevent violence against women and
girls, our government is continuing to work with Indigenous organizations and
groups to find culturally appropriate approaches to preventing acts of violence.
Through
Budget 2018, the Women's Policy Office, in collaboration with the Provincial
Indigenous Women's Conference Steering Committee, will continue to provide
funding for the annual Indigenous women's conference. We will also continue to
provide funding support for violence prevention projects through the Indigenous
Violence Prevention Grants Program.
Mr.
Speaker, we continue to support provincial participation in the National Inquiry
into Missing and Murdered Indigenous Women and Girls through a budget allocation
of $3 million. This is a valuable inquiry that will examine the high rate of
violence against Indigenous women. The establishment of Family Information
Liaison Units will provide supports to families impacted by the inquiry.
Building
on the success of the first-ever Indigenous Leaders Roundtable, held in May in
St. John's, our government is moving forward with plans to again bring
Indigenous leaders together to continue the dialogue on matters of mutual
importance.
With
leadership from the Federal Government, and in partnership with Indigenous
governments and organizations and territorial and provincial governments in
Canada's North, our government is engaged in the discussions and planning for a
new Arctic Policy Framework. We believe that this holds the potential to support
community and economic development.
Industry Development
Mr.
Speaker, over the last year, we have been incredibly active in laying a stronger
foundation to support job growth. The partnerships formed through our industry
summits and direct investments in business are helping create a positive
environment for long-term economic activity. Examples of this include our:
Agreement with Husky Energy on its West White Rose Extension, which will create
upwards of 5,000 person years of construction employment and over $3 billion in
royalties, return on equity and taxes; $17 million loan to Canada Fluorspar
which will provide significant direct and spin-off jobs on the Burin Peninsula;
and, $2.25 million forgivable loan to PAL Aerospace to create 150 person years
of employment over five years.
As a
government, we are optimistic on the benefits attached to the five-year, $37
million Canadian Agricultural Partnership with the Federal Government. Supported
by $14.8 million in provincial funds, we are better positioned to expand the
agriculture and agrifoods industry, by encouraging existing farmers to increase
innovation and create jobs, attracting new entrants, young people and Indigenous
groups, in growing the industry.
With a
strong focus on innovation, the Atlantic Fisheries Fund will continue to help
meet growing global demands for sustainably-sourced, high-quality fish and
seafood products. Our $10 million investment this year will leverage funding
from the fund. The first investments under the new fund were recently announced
and we will build on this to further support our fishery.
Our
government believes strongly in the tourism industry and the untapped potential
that this industry still holds. To support the industry's growth, we are
allocating $12.9 million for tourism marketing, which includes a $600,000
investment in four regional Destination Management Organizations.
I am
pleased to announce, Mr. Speaker, that as of April 1 this year, youth aged 16
and under will have free access to provincial historic sites during our summer
months.
The film
and television industry is a generator of well-paid skilled jobs and attracts
new investment. Beyond direct hires, it creates economic spin offs through
spending on construction supplies, gas, car rentals, hotels, food and a wide
variety of other items necessary to make television and film production
successful.
In
2017-18 production activity has exceeded $50 million, up from approximately $40
million the year before, and resulting in approximately 640 full-time equivalent
positions. To build on the growth of this exciting industry, our government will
maintain the $4 million investment in the Film Equity Program that was doubled
in last year's budget.
Social
enterprise development is an innovative tool for advancing regional growth
opportunities. This year, we have allocated $75,000 from our Community Capacity
Building Program to advance training and education about social enterprises.
Small
businesses are a huge part of energizing local economies and sustaining rural
communities. As a government, we will continue to create an environment that
drives a strong and diversified economy.
A key
element of this is our more than $35 million that has been allocated to support
economic development, research and development and investment attraction.
To
celebrate the contribution of youth in the arts, the 2018 Arts and Letters
competition will change to an Art Exhibit format creating a tremendous
opportunity for youth to exhibit their works at The Rooms. It also helps create
awareness of career opportunities in the arts.
Mr.
Speaker, digital technology is ever-present in our daily lives. It is integral
to business operations, tourism experiences, community activities, as well as
health and public safety.
Increasingly, this access is acquired through handheld devices. As such, the
Provincial Government will also work with community and industry partners to
advance cellular coverage with an additional $1 million investment to help
leverage additional funding for this critically important infrastructure. Mr.
Speaker, this will result in improved cellular coverage in several rural areas
in our province over the next two years.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
Mr. Speaker, to build on our
province's attractive mining industry, our government is allocating $4.9 million
this year for the Geological Survey, as well as allocating $1.7 million to the
Mineral Incentive Program to encourage additional mineral exploration.
By
creating an attractive environment for exploration and supporting advancement,
we are strengthening the industry and growing private sector jobs. Mr. Speaker,
we are strengthening the economy. Whether globally or nationally, our goal is
that Newfoundland and Labrador will be the top choice for potential investors.
Infrastructure
Mr.
Speaker, in addition to our investments in industry development, our commitment
to advancing infrastructure throughout the province will help stimulate economic
activity and stimulate job creation while providing access to services in modern
facilities.
Last
year, our government launched a five-year plan for new and existing schools,
health care facilities, post-secondary institutions, roads and bridges, justice
facilities, affordable housing and municipal infrastructure. This year, we will
continue to build on this momentum and action a plan that includes a total
investment of $619.7 million. This Five Year Infrastructure Plan will generate
an average of $540 million in economic activity in Newfoundland and Labrador. It
will create 5,300 years of employment per year.
Education
Mr.
Speaker, within the K-12 system this year, we are investing $1.4 million to plan
for a new Francophone school and to plan for the replacement of the Bay d'Espoir
Academy. We are investing $900,000 for a new school bus depot in Corner Brook.
We are investing $4.3 million to complete an extension to the Mobile Central
High School.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
We are investing $11.4
million to start construction of an intermediate school in Paradise and the
replacement of Coley's Point Primary in Bay Roberts.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
Mr. Speaker, this year, we
will invest $15.5 million for repairs and maintenance to existing schools.
For the
post-secondary education system, $36.3 million has been allocated for Memorial
University's new science building and the Animal Resource Centre, as well as the
redevelopment of its Battery Facility. Construction of the College of the North
Atlantic's Heavy Equipment Centre in Stephenville and upgrades to the college's
Centre for Energy and Thermal Systems will continue with an investment this year
of $15 million.
Health Care
Mr.
Speaker, Budget 2018 includes investments which will ensure health care
infrastructure can meet the demands of residents. Including the $6.1 million for
the value-for-money analysis to replace the Waterford Hospital that I have
already mentioned, we will also invest $8 million for a new regional west coast
hospital in Corner Brook.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
We will invest $6.25 million
for the development of the Green Bay Health Centre in Springdale.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
We will invest $4 million to
support the 20-bed expansion of the protective care unit at the Dr. Hugh Twomey
Health Centre in Botwood. This year we will be investing $3.75 million for the
ongoing development of new long-term care homes in Gander and Grand
Falls-Windsor. We will invest $3.2 million to advance a new ambulatory care
space at the Carbonear General Hospital. We are investing this year $400,000 for
the ongoing construction of a new long-term care home in Corner Brook and, Mr.
Speaker, $45 million will be invested for repairs, renovations and equipment
upgrades at health care facilities across the province.
Mr.
Speaker, while progress has been made to recruit and retain women in trades and
technology occupations, government will work collaboratively with industry and
community organizations to develop Women's Employment Plans for the new
long-term care and mental health facilities, as well as the regional hospital in
Corner Brook.
Transportation
Mr.
Speaker, in 2017, we introduced a five-year plan to improve the province's road
network. It also allows us to take better advantage of our short construction
season through early tendering, which leads to more competitive bidding.
By the
end of the season last year, more than 500 lane kilometres had been paved and
more than 360 culverts were replaced. Mr. Speaker, this year, our government
will match last year's roads plan budget of $77.2 million. Tenders for many
projects have already been issued, while the remaining tenders will be issued in
the coming days.
Budget
2018 will allocate more than $83 million for four major paving projects,
maintenance and upgrading along the Trans-Labrador Highway from Blanc Sablon to
Happy Valley - Goose Bay.
Mr.
Speaker, to extend the Team Gushue Highway from Kenmount Road to Topsail Road,
this year we are investing $13.7 million.
For
safety on our provincial highway, as this remains a top priority for government,
we will continue to use technology to help motorists make informed decisions
before travelling. This year, $600,000 has been allocated for highway camera
operations, including the installation of four new cameras on the Trans-Canada
Highway between Port aux Basques and Corner Brook; Route 330 near Lumsden; Route
430 near Rocky Harbour; and Route 460 leading to Stephenville.
Last
year, we also announced a five-year marine infrastructure plan to provide better
services at ferry ports across the province. Budget 2018 will allocate $6.1
million for improvement of ferry terminals and wharves and an additional $13.5
million for vessel refits and maintenance of provincial ferries.
Mr.
Speaker, as we go forward, we must ensure that the services such as our
provincial ferry system are operating as efficiently as possible.
Energy Resources/Nalcor
Energy
Mr.
Speaker, our government continues to make substantial progress in improving the
transparency and accountability at Nalcor Energy. In collaboration with the
Crown corporation, we have greater certainty on the cost estimates and timelines
for the completion of the Muskrat Falls Project.
Mr.
Speaker, under the terms set by the previous administration, we are once again
required to make an equity investment in Nalcor Energy. This year, that
investment totals $723.9 million. Mr. Speaker, the project is nearing
completion; 90 per cent complete as of this year. We say thank you to Mr.
Marshall for the work that he's done at Nalcor Energy. We continue to have
confidence in the work that he's doing.
Budget
2018 allocates more than $20 million and an additional $13.7 million in 2019 to
support an independent inquiry, led by Justice LeBlanc. This inquiry will
provide greater understanding of what led to the previous administration's
sanctioning of the Muskrat Falls Project and why budgets increased from $6.2
billion to $12.7 billion that's projected today, as well as why schedules were
consistently underestimated.
Mr.
Speaker, while we cannot change the past, we can learn from the mistakes and
make more responsible, informed decisions that minimize the impact on our rate
payers.
Addressing electricity rates has been, and will continue to be, a priority for
this government.
All
options are being explored. These may include: continuing to purchase and import
less expensive power via the Maritime Link and Labrador Island Link; exporting
surplus recall energy from the Upper Churchill; bringing surplus power from
Labrador across the Labrador Island Link for use on the island in 2018; finding
ways to use energy more efficiently, reduce peak demand, free capacity for
exports and domestic customers; and expanding the customer base within our
province.
Mr.
Speaker, our vision for the province does not include the doubling of
electricity rates.
SOME HON. MEMBERS:
Hear, hear!
MR. OSBORNE:
Mr. Speaker, we are focused
on ensuring that electricity rates are competitive with our Atlantic provinces.
Earlier
in my speech, I highlighted our government's ambitious plan – Advance 2030 – to
accelerate responsible development of our offshore oil industry.
Our
optimism is supported by the long-term exploration programs for the various
holdings in the Jeanne d'Arc, Flemish Pass and Orphan basin that Statoil, Husky,
ExxonMobil, Nexen Energy and BP are undertaking. They have already submitted
program descriptions to the Canadian Environmental Assessment Agency.
Current
exploration work commitments in our offshore oil industry total $2.9 billion. To
maximize the true potential of our offshore oil industry, it is important that
we continue to invest in seismic acquisition which defines the opportunity,
attracts exploration and encourages development.
To date,
outcomes of provincial investments in seismic acquisition have been exciting. We
now know there are over 20 basins including several new play trends and we have
identified over 650 new leads and prospects. Mr. Speaker, taking this
information to the world's leading oil and gas companies has resulted in seven
new entrants to our offshore in the last two years alone and has driven
investment in exploration.
Mr.
Speaker, to help realize our full potential in the offshore oil and gas
development and to support Advance 2030, our government is committed to
initiating a process that would see the oil and gas subsidiary of Nalcor
established as a stand-alone Crown corporation. It will work directly with the
Department of Natural Resources to accelerate the growth and opportunity of our
petroleum industry, returning significant value to the people and to the economy
of Newfoundland and Labrador.
Mr.
Speaker, before I conclude I want to say thank you to our Premier and our caucus
for the many, many hours they've put in putting this budget together. Our
Cabinet and our caucus spent many nights here.
I want
to thank my deputy minister, Denise Hanrahan, and our ADM, Craig Martin, as well
as the daughter of one of our Members, Michelle Jewer, who have put a tremendous
amount of work into putting this budget together and the staff that they have
behind them. It's incredible the dedication they have to improving this province
and making it a better place to live.
SOME HON. MEMBERS:
Hear, hear!
Conclusion
MR. OSBORNE:
Mr. Speaker, Building for Our
Future is a plan that will allow Newfoundland and Labrador to continue to
overcome the fiscal challenges experienced today with strength, with resilience
and with innovation to advance the opportunities for industry and employment
growth, and to maintain our commitment to ensuring access to high quality
programs and services.
It's a
plan that spends less on government and more on Newfoundlanders and Labradorians
through the services we provide. It's a plan where every dollar is used to its
fullest potential.
Mr.
Speaker, our government has been focused on fiscal control, we have not
increased the deficit for new spending. Despite the increases in the consumer
price index and increased demand due to federal offsets we have remained on
target to return to surplus and start paying the province's debt. Our goal is to
manage through this tough phase.
Mr.
Speaker, our government fully believes that this province's future is bright. We
will continue to work with industry through The Way Forward to diversify the
economy and to partner with stakeholders to develop opportunities for the people
of Newfoundland and Labrador.
The
actions we are taking today will strengthen our economy and stimulate new
employment opportunities.
Before I
end, Mr. Speaker, I'm going to give a quote from Winston Churchill: Pessimists
see difficulty in every opportunity; optimists see opportunity in every
difficultly.
Mr.
Speaker, the actions we are taking today will strengthen our economy and
stimulate employment opportunities.
As I
have said, our plan is working. Our future is promising in Newfoundland and
Labrador.
Thank
you.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Minister of
Finance and President of Treasury Board.
MR. OSBORNE:
Mr. Speaker, I move, seconded
by the Premier, that the debate be adjourned.
MR. SPEAKER:
The motion is that the debate
be adjourned.
Is it
the pleasure of the House to adopt the motion?
All
those in favour?
SOME HON. MEMBERS:
Aye.
MR. SPEAKER:
All those against?
This
motion is carried.
On
motion, budget debate adjourned.
MR. OSBORNE:
Mr. Speaker, I wish to inform
the House that I have received a message from His Honour the
Lieutenant-Governor.
MR. SPEAKER:
All rise.
As
Lieutenant-Governor of the Province of Newfoundland and Labrador, I transmit
Estimates of sums required for the Public Service of the Province for the year
ending 31 March 2019, in the aggregate of $7,817,543,600, and in accordance with
the provisions of sections 54 and 90 of the
Constitution Act, 1867, I recommend
theses Estimates to the House of Assembly.
Sgd.:
____________________________
Lieutenant-Governor
Please
be seated.
The hon.
the Minister of Finance and President of Treasury Board.
MR. OSBORNE:
Mr. Speaker, I move, seconded
by the Premier, that the message, together with the Estimates, be referred to a
Committee of Supply.
MR. SPEAKER:
It is moved and seconded that
the message from His Honour the Lieutenant-Governor, together with the
Estimates, be referred to a Committee of Supply and that I do now leave the
Chair.
Is it
the pleasure of the House to adopt the motion?
All
those in favour?
SOME HON. MEMBERS:
Aye.
MR. SPEAKER:
All those against?
The
motion is carried.
On
motion, that the House resolve itself into a Committee of the Whole, the Speaker
left the Chair.
Committee of the
Whole
CHAIR (Warr):
Order, please!
We shall
take a few minutes to distribute the budgetary documents to all hon. Members.
(Budgetary documents are distributed.)
CHAIR:
Order, please!
The hon.
the Government House Leader.
MR. A. PARSONS:
Mr. Chair, I move that the
Committee rise, report progress and ask leave to sit again.
CHAIR:
The motion is that the
Committee rise, report progress and ask leave to sit again.
All
those in favour, 'aye.'
SOME HON. MEMBERS:
Aye.
CHAIR:
All those against, 'nay.'
Carried.
On
motion, that the Committee rise, report progress and ask leave to sit again, the
Speaker returned to the Chair.
MR. SPEAKER (Trimper):
Order, please!
The hon.
the Member for Baie Verte - Green Bay, the Chair of the Committee of Supply.
MR. WARR:
Mr. Speaker, the Committee of
Supply have considered the matters to them referred and have directed me to
report that they have made some progress and ask leave to sit again.
MR. SPEAKER:
The Chair of the Committee of
Supply reports that the Committee have considered the matters to them referred
and have directed him to report that they have made some progress and ask leave
to sit again.
When
shall the report be received?
Now?
MR. A. PARSONS:
Now.
MR. SPEAKER:
Now.
When
shall the Committee have leave to sit again?
Tomorrow?
MR. A. PARSONS:
Tomorrow.
MR. SPEAKER:
Tomorrow.
On
motion, report received and adopted. Committee ordered to sit again on tomorrow.
MR. SPEAKER:
Notices of Motion.
Notices of Motion
MR. SPEAKER:
The hon. the Minister of
Finance and President of Treasury Board.
MR. OSBORNE:
Thank you, Mr. Speaker.
I give
notice that I will ask leave to introduce a bill entitled, An Act To Amend The
Revenue Administration Act, Bill 7.
I
further give notice that I will ask leave to introduce a bill entitled, An Act
To Amend The Income Tax Act, 2000, Bill 8.
I
further give notice that I will ask leave to introduce a bill entitled, An Act
To Amend The Revenue Administration Act No. 2, Bill 9.
MR. SPEAKER:
Further notices of motion.
The hon.
the Government House Leader.
MR. A. PARSONS:
Mr. Speaker, I give notice,
and by leave, move that the composition of the Committees for Estimates will be:
the Resource Committee will consist of Members for the following Districts: Baie
Verte - Green Bay, Exploits, Fogo Island - Cape Freels, Fortune Bay - Cape La
Hune, Mount Pearl North, Harbour Grace - Port de Grave, St. John's East - Quidi
Vidi and Stephenville - Port au Port.
The
Government Services Committee will consist of the Members for the following
Districts: Torngat Mountains, Bonavista, Burin - Grand Bank, Ferryland, Harbour
Main, Conception Bay South, St. John's East - Quidi Vidi and Stephenville - Port
au Port.
The
Social Services Committee will consist of Members for the following Districts:
Burin - Grand Bank, Baie Verte - Green Bay, Cape St. Francis, Conception Bay
East - Bell Island, Exploits, Harbour Main, St. George's - Humber and St. John's
Centre.
MR. SPEAKER:
Is it the pleasure of the
House to adopt the motion?
All
those in favour?
SOME HON. MEMBERS:
Aye.
MR. SPEAKER:
All those against?
The
motion is carried.
The hon.
the Government House Leader.
MR. A. PARSONS:
Mr. Speaker, I further give
notice, and by leave, move that the following heads of expenditure be referred
to the Government Services Committee: Consolidated Fund Services; the Department
of Finance; Executive Council; Public Service Commission; Service NL; the Public
Procurement Agency; and the Department of Transportation and Works.
That the
following heads of expenditure be referred to the Resource Committee: the
Department of Advanced Education, Skills and Labour; Fisheries and Land
Resources; the Department of Tourism, Culture, Industry and Innovation; and the
Department of Natural Resources.
That the
following heads of expenditure be referred to the Social Services Committee: the
Department of Children, Seniors and Social Development; the Department of
Education and Early Childhood Development; the Department of Health and
Community Services; the Department of Justice and Public Safety; the Department
of Municipal Affairs and Environment; and the Newfoundland and Labrador Housing
Corporation.
Mr.
Speaker, I also wish to advise Members that on Wednesday, March 28, at 5:30 p.m.
the Social Services Committee will meet in the Chamber to review the Estimates
for the Department of Justice and Public Safety.
MR. SPEAKER:
Is it the pleasure of the
House to adopt the motion of referral?
All
those in favour?
SOME HON. MEMBERS:
Aye.
MR. SPEAKER:
All those against?
The
motion of referral is carried.
The hon.
the Government House Leader.
MR. A. PARSONS:
Mr. Speaker, I move, seconded
by the Minister of Natural Resources, that the remaining Orders of the Day do
stand deferred and that this House on its rising do adjourn.
MR. SPEAKER:
The motion is that this House
do now adjourn.
Is it
the pleasure of the House to adopt the motion?
All
those in favour?
SOME HON. MEMBERS:
Aye.
MR. SPEAKER:
All those against?
The
motion is carried.
This
House stands adjourned until tomorrow at 10 in the morning.
On motion, the House at its rising adjourned until tomorrow, Wednesday, at 10 a.m.