October 6, 2020
HOUSE OF ASSEMBLY PROCEEDINGS
Vol. XLIX No. 50
The House met at 1:30 p.m.
MR.
SPEAKER:
Admit strangers.
Order, please!
Statements by Members
MR.
SPEAKER:
Today, we will hear statements by the hon. Members for the Districts of Mount
Pearl - Southlands, Terra Nova, St. Barbe - L'Anse aux Meadows, Ferryland and
Bonavista.
The hon. the Member for Mount Pearl - Southlands.
MR.
LANE:
Thank you, Mr. Speaker.
It's my absolute pleasure to sit in this hon. House
today to recognize an amazing athlete from my district, Michael Mercer of
Southlands.
This past November, Michael participated in the 26th
Annual 2019 Canadian Boccia championships in Victoria, BC. This event brings
together the best boccia athletes from across the country, all vying for a spot
on the Canadian National Team and the opportunity to represent Canada at
international competitions.
Michael did our province very proud as he captured the
gold medal in the BC2 classification going undefeated for the tournament.
Following the championship tournament, he was named to the national team for the
fifth consecutive year. He is currently ranked number two in Canada and has
represented our country in several international competitions since first
joining the national squad in 2015. Mike's ultimate goal is to represent Canada
at the 2024 Paralympics in Paris, France.
I ask all hon. Members to please join me in
congratulating this amazing young man on his many accomplishments and wish him
all the very best in his quest to represent our country at the 2024 Paralympic
Games.
Thank you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Terra Nova.
MR.
PARROTT:
Mr.
Speaker, today I rise to speak about a 16-member community group that planned
and successfully delivered an important event in my District of Terra Nova.
When the COVID pandemic hit, the AppleFest! 16
committee members became very creative to plan the second annual
community-involved event with an array of activities for all ages.
They felt it was extremely important at a time like
this for this event to continue. The event in Port Blandford from September
25-27 provided four culinary events, an outdoor market with 25 vendors attending
from St. John's to Fogo, as well as activities throughout the community like
golfing, sea kayaking, a drive-in movie, a picture scavenger hunt, all following
public health guidelines on self-distancing.
This was planned as an economic development project,
helping increase tourism activity and to continue with the spirit in this viable
community-oriented town.
It is estimated that over $25,000 worth of sales took
place at the outdoor market, and an overall $50,000 worth of economic activity
was generated for tourism and the craft industry in Port Blandford.
I'd like to thank everyone and congratulate the Town of
Port Blandford for such a lucrative and successful event in such trying times.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for St. Barbe - L'Anse aux Meadows.
MR.
MITCHELMORE:
Mr.
Speaker, today I recognize a dynamic father and son who share a love for
motorcycling and their community. Chris and Charlie Humby of St. Lunaire-Griquet
started a motorcycle ride in 2018 called Just the Tip Great Northern Peninsula
Motorcycle Rally, which gets its name from the route taken to circumnavigate the
tip of the Peninsula.
Their focus was to bring together riders from the Great
Northern Peninsula and raise funds to support Kids Eat Smart breakfast programs
at our local schools. In the first year they attracted 10 riders and raised
$1,851.
The ride grew in 2019 and continued to thrive in 2020,
attracting support from Tim Hortons, St. Barbe Consumers Co-Op and Green Island
Cove Lions Club. A total of $6,210 was raised by 19 participants for White Hills
Academy, Truman Eddison Memorial, Canon Richards Memorial Academy and French
Shore Academy.
Chris and Charlie are proud of their ride that has a
three-year total of $12,021, matched by Kids Eat Smart Foundation, which means
more than 24,000 meals for our school-age children.
I ask all hon. Members to congratulate Chris and
Charlie Humby for organizing this motorcycle ride and the impact it's had on
school breakfast programs on the Great Northern Peninsula.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Ferryland.
MR.
O'DRISCOLL:
Thank you, Mr. Speaker.
Today I recognize the recent passing of a constituent
from my district. Kevin Dalton passed away on March 29, 2020, at the age of 58,
and was laid to rest on September 11.
Kevin was a resident of Cape Broyle, a very well-known
successful businessman with a very infectious smile and a big heart. Kevin was a
hard-working man who owned and operated a couple of very prosperous businesses
in his hometown.
Kevin began his career with the Canadian Coast Guard.
While employed with the Canadian Coast Guard he purchased his first business.
Over the years, Kevin purchased and built other businesses that he owned and
operated, such as a gas bar, convenience store, a grocery store and a Home
Hardware Building Centre. Kevin also owned and operated Newfoundland and
Labrador's only casket manufacturing company, which he started in 1991 and is
still operating in Cape Broyle today.
Mr. Speaker, I ask all my colleagues of this House to
join me in honouring the life of Kevin Dalton and the contribution he made to
our province.
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Bonavista.
MR.
PARDY:
Mr.
Speaker, Calvin Pond of Musgravetown is a paraplegic who serves as an
inspiration to any person who has the privilege of knowing him.
Calvin was working in the gold mine in Yellowknife back
in 1986, when he was involved in a biking accident leading to his injury. If I
used the term disability here to explain this incident, Calvin may take
exception. In 1999, Calvin and his wife moved home to Musgravetown.
Since his accident, Calvin has challenged himself to do
everything he did previously. He participates in the recreational fishery and
hunts his moose every year when he has his licence to do so. Calvin has been an
active member of the local Lions Club since returning home and recently served
as their president for four years, where he has captured much respect from his
colleagues and the community alike. Until recently, he received his truckload of
wood every year, which he promptly cuts into junks and stored for the winter.
Calvin serves as an inspiration for us all.
I ask the Members of 49th House of Assembly to join me
in congratulating and celebrating the tenacity, energy, perseverance and
resiliency of Mr. Calvin Pond of Musgravetown.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
Statements by Ministers.
Statements by Ministers
MR.
SPEAKER:
The
hon. the Minister of Tourism, Culture, Arts and Recreation.
MR.
DAVIS:
Thank you, Mr. Speaker.
I want to acknowledge in this hon. House the winners of
the 2020 Newfoundland and Labrador Book Awards.
Sharon Bala was chosen in the fiction category for her
novel The Boat People. Inspired by
events surrounding the 2010 arrival of a cargo ship in Vancouver carrying Tamil
refugees, the author has masterfully and compassionately crafted insight into
the experiences of refugees, immigrants and the people who determine their
fates. Sharon Bala's The Boat People
has won numerous literary awards, and is available in multiple languages
worldwide.
The winner of the Children's/Young Adult Literature
award was Charis Cotter for her novel The
Ghost Road. As cousins Ruby and Ruth work together to unravel the mysterious
family secret, they are both helped and hindered by their irritable witch, a
mischievous storyteller and a swath of ghostly characters. This unique tale,
which combines our province's folklore and natural history, was inspired by Ms.
Cotter's upbringing. The Ghost Road is
her third novel, which she considers to be a love letter to her home province.
Mr. Speaker, our government proudly supports the
province's artists. To further support the arts community, we invested an
additional $1 million for ArtsNL in Budget
2020, bringing the annual provincial investment to ArtsNL to nearly $4
million.
I ask all hon. Members to join me in congratulating
Sharon Bala and Charis Cotter and the recipients of the 2020 Newfoundland and
Labrador Book Awards, as well as the other nominees in both categories for their
immense contributions to Newfoundland and Labrador literary arts.
Thank you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Grand Falls-Windsor - Buchans.
MR.
TIBBS:
Thank you very much, Mr. Speaker.
I'd like to thank the minister for the advance copy of
his statement. On behalf of the Official Opposition, I would like to
congratulate Sharon Bala and Charis Cotter on their tremendous accomplishments.
Winning a Newfoundland and Labrador Book Award is not an easy task. Sharon Bala
and Charis Cotter are now following in the footsteps of the prestigious authors
who have won this award before them. They join the ranks of talented authors
such as Bernie Stapleton, Mary Pratt and Andy Jones.
I'd also like to thank the Writers' Alliance of
Newfoundland and Labrador for supporting these awards and for the encouragement
they give to all our province's writers both experienced and novice.
Mr. Speaker, the people of our province are talented
with rich imaginations, experiences and stories to tell. I encourage writers,
especially Sharon Bala and Charis Cotter, to continue writing and sharing their
talents with all of us.
I look forward to reading these novels and look forward
to more published works from both of these authors in the future.
Thank you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Labrador West.
MR.
BROWN:
Thank you, Mr. Speaker.
I would like to thank the minister for the advance copy
of his statement. I would also like to congratulate Sharon Bala and Charis
Cotter on their achievements. It is important to have stories that broaden our
perspective on society, our culture and our heritage. I am pleased that we can
recognize these works through ArtsNL programs. Our winners and all the nominees
should be proud of their efforts.
Let us all pick up a local book and learn more about
our beautiful province.
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
Further statements by ministers?
The hon. the Minister of Justice and Public Safety.
MR.
CROCKER:
Mr.
Speaker, October 4 to the 10 is Fire Prevention Week 2020. This year's theme is
“Serve Up Fire Safety in the Kitchen” which encourages people to learn more
about the simple but important actions they can take to keep themselves, and
those around them, safe in the kitchen.
Cooking is the leading cause of home fires and home
fire injuries in Canada. The majority of reported home fires start in the
kitchen, most of which are ignited from food or other cooking materials.
Mr. Speaker, we all have a role to play in fire safety.
During Fire Prevention Week, I encourage all residents of Newfoundland and
Labrador to take steps to protect themselves and their families. Never leave
cooking food unattended, check your food regularly, always have a fire
extinguisher nearby and create a kid-free zone around the cooking area. Don't be
careless in the kitchen. Check your kitchen for fire hazards and use safe
cooking practices.
Fires caused by cooking and heating can be devastating,
but taking these measures I have mentioned, as well as ensuring smoke alarms are
working and home fire escape plans are in place, could mean the difference
between life and death.
Mr. Speaker, I would also like to take this opportunity
to thank firefighters throughout our province for keeping us safe every day.
Thank you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Harbour Main.
MS.
CONWAY OTTENHEIMER:
I thank the minister for an advance copy of his
statement.
On behalf of the Official Opposition I join with the
minister in recognizing Fire Prevention Week and offer my gratitude to all the
firefighters and fire prevention officers in this province.
The minister outlined the theme of this year's Fire
Prevention Week and gave some tips for fire prevention in the kitchen. I would
like to take a moment to speak about some ways we can prevent fires throughout
the rest of the home as well.
We can make sure heat sources have the necessary
clearances from fabrics and furniture; we can avoid overloading electrical
plug-ins and circuits; we should replace electronics, which have aged or damaged
wiring; and we should always follow the manufacturer's instructions on
appliances, light fixtures and other electronics.
Mr. Speaker, we should always ensure that every member
of the family knows what to do in the unfortunate event of a fire: how to escape
and where to meet outside.
Thank you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Leader of the Third Party.
MS.
COFFIN:
Thanks to you, Mr. Speaker, and the minister for an advance copy of his
statement.
Mr. Speaker, we all enjoy a good steak Diane, crème
brûlée or cherry jubilee, but we must remember that flambés are a fire hazard.
Be smart in the kitchen; make sure your fire
extinguishers are at hand and up to date; turn your pot handles in; don't wear
clothing with loose sleeves while cooking; and don't fry bacon naked.
Many thanks to the first responders that keep us safe,
and happy Thanksgiving, everyone.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
Further statements by ministers?
Oral Questions.
Oral Questions
MR.
SPEAKER:
The
hon. the Member for Placentia West - Bellevue.
MR.
DWYER:
Will the government agree to hold an emergency debate on the prospect of a
permanent closure at the Come By Chance oil refinery?
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
Thank you, Mr. Speaker.
Thank you for the question from the Member.
The answer would be yes.
MR.
SPEAKER:
The
hon. the Leader of the Official Opposition.
MR.
CROSBIE:
On
June 11, the previous minister said she had assurances that Irving was “very
committed to full operations of the North Atlantic Refinery.”
I would ask the current minister: What's changed, and
when did he find out?
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
Thank you, Mr. Speaker.
Certainly, the previous minister did speak in this
House in June in response to a question from the Member opposite about this
pending sale between two private entities. The reality is now that we've been
notified by these parties that this deal is not moving forward as it stood; we
were given official notification yesterday. I know that the entity also reached
out to the union. That is something that we are still processing and dealing
with today.
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Leader of the Official Opposition.
MR.
CROSBIE:
I
thank the minister for that.
Last evening, the Premier posted on Facebook: “The
refinery is an asset to this province, and one our government will maximize.”
I'd ask the minister: How exactly will you maximize the
asset, and is maximizing different from saving jobs?
MR.
SPEAKER:
The
hon. the Deputy Premier.
MS.
COADY:
Thank you very much, Mr. Speaker.
This is a very difficult and uncertain time for the
families and for the workers at the refinery. I can say that they've worked very
hard to make this refinery; improve it; to grow it; to make it efficient,
reliable and safe. I can tell you that the global pandemic has had a major
impact on the oil industry, as well as others. This government is committed to
ensuring growth and jobs and reliability of business supports. You see that
throughout our budget.
I will say as well, Mr. Speaker, I think I mentioned
back in June that there has been another interested party and I'm sure that they
will be in contact. We will be in contact with them to see how we can, again,
continue to have this great asset and great jobs in the province.
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Leader of the Official Opposition.
MR.
CROSBIE:
I'm
still unclear on what's involved in maximizing an asset, Mr. Speaker.
Last night in Estimates, the minister said he cannot
provide details on how government will help Come By Chance refinery get up and
running; yet, the Premier made a public pledge to do so.
Does the Premier have a plan, and does it involve
financial assistance?
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
Yes, thank you, Mr. Speaker.
Certainly, there's a difference between saying that you
will do what you can to help and also disclosing what those details are. The one
reality that we must keep top of mind here is that this is a commercial
transaction between two private entities. The government itself is not an actual
party to this, so it's very difficult to speak about details that may place this
whole issue in further jeopardy. I don't want to do anything that will make what
is already a tough situation even worse.
What I can say is that we will do what we can. We
realize the impact that this will have, not just on the area but on the province
as a whole. The situation is fluid. It is evolving. It's evolving very rapidly,
there's no doubt about that. We'll continue to work with Silverpeak, to work
with the partners moving forward.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Leader of the Official Opposition.
MR.
CROSBIE:
I thank the minister for that. We can all assume that the government is keeping
a very tight watching brief on the situation and has been.
As well, last night the minister said he had little
information because the province is not privy as a partner; yet, the Premier
said his government would maximize the asset.
How can government maximize the asset without being a
partner, and does the Premier intend that his government should become a
partner?
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
Thank you, Mr. Speaker.
I know that the Member opposite and I had a good
conversation on this last night and, again, I don't believe I said I wasn't
privy to the details. I think what I may have said or certainly what I implied
or would hope to put across – and, again, obviously when you're in a three-hour
Estimates and this thing is breaking during that, one could forgive if you
misspeak.
What I would say is that we have been in contact with
the different parties. We realize the situation as we find it. It continues to
evolve and unfold. We've been watching this closely. We'll continue to watch
closely. We all have the same goal in mind, which is to see some way for these
people to continue working and this refinery to stay open.
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Leader of the Official Opposition.
MR.
CROSBIE:
Thank you.
As the Deputy Premier alluded to, Origin International
has publicly expressed their interest in purchasing the Come By Chance refinery.
Has the minister spoken with Origin in the last 24
hours?
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
Thank you, Mr. Speaker.
Origin has in fact, they had done so previously, and
they've expressed it again today that they do have an interest in the refinery.
It's nice to see a glimmer of hope in a very difficult situation. While our
department has reached out, at the time that I entered this House for Question
Period I had not had contact with Origin; but, as you can imagine, it's been a
busy time for them as well. They've released their statement.
Again, as I would say, we are not a party to this, but
we're certainly going to do what we can to help facilitate some form of deal.
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Leader of the Official Opposition.
MR.
CROSBIE:
Much appreciated, Mr. Speaker.
I spoke to Origin representatives myself last night, so
if the minister wants the phone number I can pass it over to him.
The previous minister of Natural Resources spoke with
officials from Origin in June.
Did Origin give any indication of how long it would
take them to complete the purchase of the refinery and get people back to work?
MR.
SPEAKER:
The
hon. the Deputy Premier.
MS.
COADY:
Thank you, Mr. Speaker.
I did, indeed, have correspondence from Origin
International in June. I think it was public at the time, and officials did have
a conversation with Origin. They were very interested at the time. They did know
that the process with Irving was ongoing, and they said should that not advance
they would be very interested in considering the assets of the refinery. That
is, I'm sure, what they are exactly doing, as the minister suggested.
This is ongoing and very much something that's in
process. I will say again how concerned we all are for the families and for the
workers of the refinery. That is critical at this point.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Leader of the Official Opposition.
MR.
CROSBIE:
Does either minister have knowledge as to whether North Atlantic refinery has
been approached by Origin in the last day or two?
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
Thank you, Mr. Speaker.
It's hard for me to say what North Atlantic itself has
been – who they've been contacted by or who they've been in touch with. I know
the Member opposite has been speaking to his nephew, Tim Powers, who is a
representative for Origin.
What I would say is if you want to make sure – again,
because we all have the same issue here is that we want to see this succeed. So
we can play politics with it or we can all put our minds to fixing this issue.
The Member is asking questions for which he's hoping to get a gotcha moment, but
let's put that to the side and remember there are a lot of people out there
right now facing a lot of uncertainty.
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Leader of the Official Opposition.
MR.
CROSBIE:
I'm
good, Mr. Speaker.
MR.
SPEAKER:
The
hon. the Member for Harbour Main.
MS.
CONWAY OTTENHEIMER:
Mr. Speaker, yesterday hard-working Newfoundlanders and
Labradorians received more devastating news. The sale of the Come By Chance
refinery to Irving Oil is expected to fall through and North Atlantic refinery
has indicated the refinery could close permanently.
I ask the minister: What does he say to the 500
families who are now worried about how they will pay their bills?
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
Thank you, Mr. Speaker.
I certainly understand the frustration I'm sure the
Member is feeling, but I would remind everybody in this House that this was not
a government decision to do something here. So I don't feel that I have to
explain anything that I have done or we have done. The reality is, as with the
question that you asked previously along this same vein, we are dealing with a
global pandemic combined with a price war here that has seen the hugest impact
to the oil industry we have seen in the last century. That is the reality of
what we are dealing with.
The other reality is that we have a lot of people in
your district and my district that I'm worried about, that you're worried about.
What we're going to try to do here as a government, and I know as an Opposition,
is try to figure out how do we get our way through this in hopes of getting the
bright side on the other side.
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Harbour Main.
MS.
CONWAY OTTENHEIMER:
Mr. Speaker, last night I heard from many workers in my
district that are worried that they will be out of a job if this refinery
closes. Come By Chance is more than a refinery; it is a source of livelihood for
more than 500 workers.
Again, I ask the minister: What discussions have you
had about why the sale may fall through, impacting so many workers and their
families?
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
Thank you, Mr. Speaker.
Again, I certainly understand the uncertainty that
people face now. It's something that we've been dealing with before today. We've
had some serious upheaval when it comes to the industries that drive this
province.
I can say that this morning I spoke to the mayor of
Come By Chance; I spoke to the mayor of Clarenville. We've spoken to the union,
and everybody has the same concern. We realize that people's lives are affected
here.
The reality is that we have a private entity and
another private entity that we're trying to reach an agreement and that
agreement is no longer there. So what we can do as a government is work with the
vendor to try to help facilitate the continued operation of this facility, and
that is what we will continue to do.
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Harbour Main.
MS.
CONWAY OTTENHEIMER:
Mr. Speaker, the people have a right to know. When the
minister references that he's facilitating this deal, the people have a right to
know exactly how this is being done. These workers deserve to know what their
government is doing to protect their livelihoods.
Minister, you said again last night the province is not
privy to discussions but, with so many jobs at stake, how can the minister take
such a hands-off detached approach?
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
Thank you, Mr. Speaker.
Again, as I stated earlier, and maybe the Member can
recalibrate the question to acknowledge the answers that I've given, I did not
say that, but, again, will continue on here.
I know the Member opposite is a lawyer, and I know the
Member opposite realizes how commercial deals work. As I explained to the member
of the union today, the fact is that you'd love to be able to stand up and say
everything you want, but the reality is that doing so may place us in a tougher
situation.
What I would say to the Member opposite is don't
confuse detached with understanding how this works and not trying to break
certain laws and agreements.
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Terra Nova.
MR.
PARROTT:
Mr.
Speaker, Come By Chance is more than an oil refinery. It's an economic driver
for surrounding communities and the province as a whole. When the refinery is at
full employment, convenience stores, take outs and many businesses all do well.
I ask the minister not what does he say to the
companies, but what does the minister say to the residents of my district who
are about to lose their futures?
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
Thank you, Mr. Speaker.
Again, I've spoken to the Member opposite about this
and we've had conversations about the impact of this. This is something that,
again, sadly, with this refinery we have a history of going through tumultuous
times, basically, since its inception. The fact is that this was created in a
cloud of controversy decades and decades ago. It's gone through that.
What I would say is that we are not a party to this,
but we have a duty – and this is the same exact thing that I said to the mayor
of Clarenville today, with whom I've had a very strong and positive
conversation, and we've agreed that the line is open and we will talk as much as
they would like to talk or as much as we can give information.
What I would say is we want to ensure that we continue
on in the best interests of all these citizens. We'll do what we can, as a
government, but, right now, this is a private transaction between two companies.
It's not a commercial transaction that we are actually a party to, but I know
that doesn't fix the uncertainty and unrest that your constituents feel.
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Terra Nova.
MR.
PARROTT:
Mr.
Speaker, many of the people who work at the Come By Chance refinery are my
constituents. The decision to close the refinery, it certainly impacts those who
I work every day to support. I sit here today to voice their opinions and their
questions and their concerns.
I ask the minister again: What is the minister going to
do, specifically, for these workers if the refinery shuts its doors for good?
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
What I would say to the Member is that, again – and this sort of continues on
from an answer that I gave to the Member for Labrador West yesterday when we
talked about taking workers and putting them up in a different area and doing
retraining. What I would come back to is we are not giving up on the refinery.
That's the first thing I would say.
SOME HON. MEMBERS:
Hear, hear!
MR.
A. PARSONS:
That being said, Mr. Speaker, this is an evolving situation. The problem with
situations like these is people want answers now and in some cases you're unable
to give the answers that they want at this time. We know that people want that
information right now.
We will continue to make contact, to give information
as we can and to work towards facilitating or finalizing some kind of deal.
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Terra Nova.
MR.
PARROTT:
Mr. Speaker, I remind the minister that there's $320 million in the bank waiting
for some decisions to be made and time is not on these people's side; mortgages
are falling through and people are losing their vehicles. If the refinery does
not start up again, many residents of my district will be left without work.
Businesses will suffer.
What supports will be made for the businesses and the
residents affected by the shutdown?
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
Two
things that I would say to that question. We will work to deal with the
situation, but saying that we have the support package in place right now, we're
just not there at this stage of time, that would be premature. I understand the
concern the Member is expressing.
The second thing I would say when it comes to the $320
million for the feds. It was only less than two weeks ago that your leader said
put it into Husky. The fact is that we can only spend that once and we have a
duty to spend that in the best way that we can. That work continues on. We
realize that time is of the essence, though.
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Conception Bay South.
MR.
PETTEN:
Thank you, Mr. Speaker.
As the minister knows, the cold season is approaching.
It's much harder to start up the refinery in the cold and serious damage could
occur.
Minister, will you commit to doing what's required to
get these workers back to work before the winter?
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
Thank you, Mr. Speaker.
The Member is certainly right that the cold season is
approaching and that presents complications to what is already a complicated
situation. What I can say is that I cannot commit to doing something for which I
legally have no power to do.
What I can say is that we have the same goal in mind,
which is to see these people back to work, but we need to work with the vendor.
Right now, we know that commercial transaction has been terminated. We know that
there have been expressions of interest. We will do what we can in the ways that
we can to help.
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Conception Bay South.
MR.
PETTEN:
Thank you, Mr. Speaker.
This issue is urgent, Minister, as we all know. This
asset cannot sit idle through the winter.
Will you provide assistance to North Atlantic to get
the refinery back up and running?
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
Thank you, Mr. Speaker.
I would love to be able to sit here and say we're going
to do that, but the fact is that right now where we are in this moment, and
again we're moving in real time here, it's too early to say whether that's the
necessity. The fact is that there's just been a commercial transaction with this
entity that has been terminated by the other party. We know that there's been an
expression of interest. We'll do what we can to help facilitate that, but,
again, we're monitoring this hour by hour since this came up and we'll continue
to do so.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Conception Bay South.
MR.
PETTEN:
Thank you, Mr. Speaker.
Not only does Come By Chance provide jobs for the
region but also provides out-of-province and essential supply of fuel.
Minister, are you aware how much fuel Come By Chance
produces for this province?
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
I
don't have the number here but I thought it was somewhere in the 40 per cent
range, I think is the number that I have but if I'm wrong I can certainly
provide that.
The reality is whether I have the number here or not,
there's no understating or overstating, I should say, the importance of that
refinery. It's the only refinery that we have in this province so we appreciate
the importance.
We've gone through this, in fact, in this House of
Assembly in my time here when I sat on the other side and we went through the
last sale of this. I realize the implications. I'm very familiar with the
importance and the details so that part will continue on.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Conception Bay South.
MR.
PETTEN:
Thank you, Mr. Speaker.
Minister, 100 per cent of the jet fuel is produced at
Come By Chance which is used in this province.
With the closure of Come By Chance, will the province
experience a shortage in supply?
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
Thank you, Mr. Speaker.
That is not a concern that's been expressed to me at
this point, that anybody should have any supply chain concerns as it relates to
the supply of that fuel or any other fuel, but, again, we realize what the
refinery contributes to the different lines of hydrocarbons and the different
lines of fuel, so that's something that we're obviously cognizant of.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Conception Bay South.
MR.
PETTEN:
Thank you, Mr. Speaker.
Minister, I know hindsight is 20/20 but don't you think
an asset such as Come By Chance the government should have played a larger role
in the negotiation of this sale and even on a brokerage level, even though it's
private industry, it's a big enough concern.
I question: Why didn't government play a bigger role
instead of a hands-off approach?
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
Two
things, Mr. Speaker, and again, I'm sure we'd all love to operate in hindsight.
There are a lot of decisions in the history of this province that may be
different, but what I would say is that this deal up to this point had been
progressing. All indications that things were moving forward, so we can't sit
here in the House today and say you should have done this and that when there
was no reason to believe that that was the issue. I'm certainly not going to
take any blame for that one.
The reality is that we have a situation that's been
presented to us and it's incumbent on us now to do what we can and pull the
levers we have, as a province and as a government, to find a solution to the
problem.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Stephenville - Port au Port.
MR.
WAKEHAM:
Mr.
Speaker, first of all, I want to say that all of our thoughts today are with the
workers and their families for this sudden announcement.
The Come By Chance oil refinery accounts for over 5 per
cent of the province's GDP, and thus the economy, each year. We've already seen
in this week's budget that our GDP is expected to drop by 7 per cent this year.
Obviously, if this refinery closes, it could drop by as much as 12 per cent.
I ask the minister: This refinery cannot be allowed to
close – it's that simple – so what would be the plans for the next days or the
next week on how you plan on dealing with that?
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
Thank you, Mr. Speaker.
I like the sentiment that the Member puts forward: this
cannot be allowed to close. That's the same sentiment we saw in 2014 when the
Wabush mines closed. I will say that when this crowd came into government, we
took a plan and made that become active again.
What I will say to you is that it's easy to say that,
but the hard part here is that as a government we are not a party to the
transaction. We will continue to work, fully realizing the impact on GDP, fully
realizing the impact on employment, fully realizing all the financial impacts.
That is not something that is lost on us, but it's not as simple as flicking a
switch and saying the deal is done. There are complexities that we have to work
around and it's especially difficult given that we are not a party to the
transaction.
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Stephenville - Port au Port.
MR.
WAKEHAM:
Minister, I can't speak about 2014 because I certainly wasn't here at that time,
but I can speak about today. Today we face a potential for another 1,000 jobs
being lost in this province.
Again, I ask the minister: Is the province now
anticipating that almost 15,000 jobs will be wiped out from our province this
year?
MR.
SPEAKER:
The
hon. the Deputy Premier.
MS.
COADY:
Thank you very much.
Allow me to address this issue, Mr. Speaker. The Member
opposite talks about: What about the budget forecast? I can tell you the Come By
Chance refinery would have been closed for most of this year. So it will have
minimal impacts on our current budget economic forecast, I will let him know
that.
We are very concerned about the workers. There are 500
employees, and I know how hard and dedicated they've been. I've been to visit
the refinery on a number of occasions. They've been able to make that refinery
more efficient. They've been able to enhance its operations and make it
reliable, and I'm very proud of their efforts.
We are in the middle of a global pandemic, Mr. Speaker,
so this has been unexpected. We had seen two companies coming forward and we
thought the sale would go through.
I will say this: We'll do whatever we can to assist to
ensure that this refinery is operational.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Harbour Main.
MS.
CONWAY OTTENHEIMER:
Can the minister give an update on what initiatives
have been taken in the last 12 months to combat gender-based violence,
intimate-partner violence and family violence?
MR.
SPEAKER:
The
hon. the Minister of Justice and Public Safety.
MR.
CROCKER:
Thank you, Mr. Speaker.
One of the challenges of sitting, I guess, it gets
confusing sometimes.
Mr. Speaker, as the Member opposite would have seen,
and many of the questions I did answer for her just last week in Estimates,
these are important pieces of work that are done between the Department of
Justice and, importantly, with the Minister Responsible for the Status of Women.
We'll continue with our committees that we have to make sure that we're reaching
out to the appropriate groups.
One of the things I've done since becoming Justice
Minister is start the process of actually sitting down with the people involved
in these many groups, because the government's role in this, albeit important,
but it's the people on the front lines that we have to keep open communications
with.
Thank you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Labrador West.
MR.
BROWN:
Thank you, Mr. Speaker.
Communities in the surrounding Come By Chance area are
reeling today. Hundreds of livelihoods are set to vanish overnight.
While I recognize the oil and gas economy has years
before it will be fully transitioned from oil, I ask the Minister of Industry,
Energy and Technology: What are the plans to transition our workforce and
identify a more stable, long-term employment for the employees of this province?
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
Thank you, Mr. Speaker.
I appreciate the question from the Member opposite. The
reality is that oil and gas has been the backbone of this economy and will still
be the backbone of this economy for some time to come, but there's no disputing
the fact that we must diversity. One of those areas that we can is the latest
addition or component to the Department of IET, and that being the T in
Technology.
As I discussed last night in Estimates, the reality is
that we have huge opportunities there. In fact, we have job creation that could
happen, but we need to create the pipeline of that talent.
My belief is that there are different ways we can do
that. One thing is we have to go back into the primary schools and we have to go
into post-secondary as well. The talent is here, we have the educational
institutions that can do it, but we have to churn more people into these and out
and there will be job creation that comes from it.
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Leader of the Third Party.
MS.
COFFIN:
Thank you, Mr. Speaker.
Mr. Speaker, a report released this morning by the
Canadian Centre for Policy Alternatives underlies that there are veils of
secrecy around the P3 process. P3s are an effort to get debt off government's
books. They result in higher interest changes and convoluted repayment schemes.
I ask the Minister of Transportation and Infrastructure
to please explain to the House how a P3 is different than a buy now, pay later
furniture scheme?
MR.
SPEAKER:
The
hon. the Minister of Transportation and Infrastructure.
MR.
BRAGG:
Mr.
Speaker, I thank the Member opposite for the question.
On the P3, we are replacing aging infrastructure in
this province that is much needed to be replaced. We're bringing things in on
budget, on time. We have mock-up centres. Recently, I toured the P3 in Corner
Brook in which the contractor took me through and we went to – every room is
mocked-up to resemble what the hospital facility will look like.
While the building is being built, those rooms get
modified to meet the needs of the people that will use them, as either the
health care professional or the patient. This has been proven for us. It worked
good in Gander. We're just about done with the long-term care facility. It's
about ready to go in, and the success there and the response from the people in
Central Newfoundland has been overwhelming.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Leader of the Third Party.
MS.
COFFIN:
Thank you, Mr. Speaker.
I see that, no, the minister could not explain the
difference between the two.
Mr. Speaker, I became an MHA because I was frustrated
by the poor planning and execution of the Muskrat Falls project. I was angered
and I am sick and tired of listening to the blame game being played by the
Liberals and the Conservatives. Now we hear that the development of Gull Island
is being considered.
Mr. Speaker, I ask the minister: Was it the brightest
and the best who put Gull Island in the terms of reference for the task force on
rate mitigation?
MR.
SPEAKER:
The
hon. the Member for Industry, Energy and Technology.
MR.
A. PARSONS:
Thank you, Mr. Speaker.
I'll remind the Member that her predecessor sat in that
chair and was here for all those Muskrat debates, too. There's no doubt about
that.
The fact is that Gull Island is a Hydro asset. You only
have to talk to people to realize that we have tremendous assets here, but I
agree with the Member. There has been an issue with the planning and execution,
but I think there's absolutely no problem considering how we develop all of our
assets. The issue comes when you try to force the development of those assets
and it's not in the best interest of the province or the Treasury or the people
that live here.
We will consider everything we can to make sure that
our assets are fully maximized but we will not do so at the expense of the
people.
Thank you.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for St. John's Centre.
MR.
J. DINN:
Thank you, Mr. Speaker.
Mr. Speaker, on Thursday the Minister of Education was
amused when I outlined that a team of staff were unable to clean this Chamber
but one custodian is expected to effectively sanitize an entire building. I find
it amusing that the minister obviously has no conception of the excessive
demands his fluid plan has placed on these essential workers.
I ask the minister: Will he immediately review staffing
levels with NAPE, CUPE and the school districts with the intention of increasing
the number of custodians, especially for schools with large student populations?
MR.
SPEAKER:
The
hon. the Minister of Education.
MR.
OSBORNE:
Thank you, Mr. Speaker.
I am in contact on a relatively regular basis with our
union leaders. I will say, Mr. Speaker, in the event that the Member missed it,
we did increase the number of our custodial workers. We also hired additional
custodial workers. At this point, other than people calling in sick and having
to get replacements, I haven't been advised of any problems by the English
School District.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for St. John's Centre, time for a quick question and a quick
answer.
MR.
J. DINN:
Thank you, Mr. Speaker.
I ask the Minister of Education: What is the plan to
help these custodians during the winter months when they will also be
responsible for clearing snow from walkways and exits in addition to cleaning
and sanitizing schools during the day?
MR.
SPEAKER:
The
hon. the Minister of Education.
MR.
OSBORNE:
Thank you, Mr. Speaker.
That's certainly a topic that I can take up with the
English School District. Mr. Speaker, it hasn't been highlighted as an issue,
but I will speak with the English School District to ensure that it's not.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
time for Question Period has expired.
Presenting Reports by Standing and Select Committees.
Tabling of Documents.
Notices of Motion.
Notices of Motion
MR.
SPEAKER:
The
hon. the Government House Leader.
MR.
CROCKER:
Thank you, Mr. Speaker.
Pursuant to Standing Order 11(1) I hereby give notice
that this House do not adjourn at 5:30 p.m. on Thursday, October 8.
Further, I give notice pursuant to Standing Order 11(1)
that this House do not adjourn at 10:30 p.m. on Thursday, the 8th of October.
Thank you, Mr. Speaker.
MR.
SPEAKER:
Further notices of motion?
Answers to Questions for which Notice has been Given.
Petitions.
Petitions
MR.
SPEAKER:
The
hon. the Member for Ferryland.
MR.
O'DRISCOLL:
Thank you, Mr. Speaker.
The background to the petition is as follows: Route 10
on the southern Avalon forms a large section of the Irish Loop. It is a
significant piece of infrastructure and is the main highway through the Irish
Loop. This highway plays a major role in the commercial and residential growth
of our region.
Therefore, we petition the hon. House of Assembly as
follows: We, the undersigned, call upon the House of Assembly to urge the
Government of Newfoundland and Labrador that immediate brush cutting is required
on Route 10 of the Southern Shore Highway for the safety of the commuters and
prevention of moose-vehicle accidents. Reason is due to the volume of vehicles
travelling the highway daily.
Mr. Speaker, I had an opportunity in the spring of the
year to go visit and drive along Route 10, and done it many times. I guess
looking back on it, going in the spring of the year is not as good as going in
the fall of the year. Right now, with the fall of the year, travelling in the
area you can really see where the brush and all the trees on the side of the
road has become a hazard, certainly with moose in the area.
I'm sure it's in every district as well, that you see
alders and trees growing out over the guardrails. You can't see the signs when
you're driving. I think it's something we should have a look at and the
government take it in their hands. It's not only that highway, there are many
others, but I certainly bring it on the government to look at Route 10 and get
that job done.
Thank you very much.
MR.
SPEAKER:
The
hon. the Minister of Transportation and Infrastructure.
MR.
BRAGG:
Thank you, Mr. Speaker.
I thank the Member opposite for the petition. Brush
cutting is a very active part of the department which I represent. The Member
will be happy to know that tenders are being called as we speak for brush
cutting throughout the province. If he wants a breakdown of brush cutting in his
area, I welcome him to – we have a sidebar after the meeting today or after the
House sits. I guess we'll adjourn today, and we'll talk about brush cutting in
your area because it is vital. Moose is the main reason for brush cutting and we
want to avoid that at all costs, all moose accidents.
Thank you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
Further petitions?
The hon. the Opposition House Leader.
MR.
BRAZIL:
Mr.
Speaker, I take this opportunity under special leave, under Standing Order 36,
to adjourn the discussion matter. I wish to make the following motion:
That because of the impact of the closure of the Come
By Chance oil refinery and the devastating economic impact it will have on our
province's economy, the issues of supply on the Island portion of the province
and the expected closure of many spinoff businesses, I move that the business of
the House be adjourned to hold an emergency debate on the closure of the oil
refinery, seconded by the hon. Member for Windsor Lake.
Mr. Speaker, as we've had a discussion here in Question
Period, everybody agrees in this House that this is devastating news to the
people of not only that region but Newfoundland and Labrador, and to the
country. That was, and still is, the cornerstone of our oil industry which is an
economic driver for this whole country. To have that not being active and
employing people and providing services that are necessary – but, particularly,
ensuring we have a supply of fuels that are necessary to drive our economy.
This particular refinery provides 100 per cent of the
jet fuel, which puts us at a disadvantage of how do we manage to supply the
industries that are responsible for bringing people and goods to Newfoundland
and Labrador? What impact would this have in the immediate future? We're talking
the immediate future, in the next day or so, what impact that would have.
We also look at the propane supplies that are provided
by this – 100 per cent of that to the people of Newfoundland and Labrador. Let's
just look at the impact that has, not only on home heating, but on all the other
amenity industries we have. All the restaurants, all the other buildings that
provide service who rely on propane for their heating source and their source of
operations.
Mr. Speaker, also add into that the gas supply that
comes from that and the potential that one sole supplier could control what goes
on with other industries in communities that have one stand-alone gas station. I
could see the other provider only wanting to supply their own if there's a
particular shortage – a snowstorm where they can only get so much supply here.
There's some other kind of issue that challenges that. We need to ensure that
that refinery continues to do what it's been doing for the last number of
decades, and that's provide fuel for the people of Newfoundland and Labrador
while driving our economy.
Mr. Speaker, we're proposing this and we're asking that
we would have a debate today to ensure that the people of Newfoundland and
Labrador know that we are not sitting down or sitting back and letting this go
without a fight and finding a proper way to maintain that asset to the people of
Newfoundland and Labrador, and continue to ensure that our oil industry in
Newfoundland and Labrador has all the assets and amenities it needs to be
competitive on our world and global markets.
So, Mr. Speaker, I present this to the House for review
and tabling.
MR.
SPEAKER:
Before I take a brief recess to review the matter presented by the Member, I
gave him a little bit of time to elaborate on the motion. I'm going to offer the
same opportunity to people from the Government side, the Third Party and one of
the independents as well.
The hon. the Deputy Premier.
MS.
COADY:
Thank you very much, Mr. Speaker.
I support the emergency debate. We do know that there
are a lot of families impacted here, about 500 employees of the North Atlantic
refinery. I can say that they have been working very diligently. Since
Silverpeak reopened the refinery in 2014, Mr. Speaker, they've been able to make
it more reliable, grow – I think it's 135,000 barrels a day they now produce –
made it more efficient, made if very safe. So it has been a good news story up
until, of course, the global pandemic at the end of March.
In my former role as minister of Natural Resources, I
had been working very closely with the refinery and I know some of their plans
to actually grow the refinery, and it was quite buoyant and looking forward to
that growth in the region.
Mr. Speaker, this is a refinery; the workers contribute
greatly to our province. I know some say that the refinery contributes up to 5
per cent of our GDP, but as important is the amount of investment and
involvement of the people who work at the refinery and, of course, their
personal income taxes and their investments in the province as well.
I will say the Government of Newfoundland and Labrador
is supportive of having a debate on this very important issue. We're very
concerned about the refinery. We had hopes that the sale would have progressed,
Mr. Speaker. This is a business-to-business transaction, so now that it hasn't
progressed, we're hopeful that there will be others that will enter into the
marketplace and continue that refinery.
I look forward to a good, robust debate this afternoon,
and setting out a clear statement to the people of the province, to the workers
of how much support they have, not only in this Legislature, but in all of
Newfoundland and Labrador.
MR.
SPEAKER:
The
hon. the Member for St. John's Centre.
MR.
J. DINN:
Thank you, Mr. Speaker.
We, too, as the Third Party, will support this
resolution for an emergency debate.
While we may have a different approach towards the
future green economy, we realize that, really, this has a significant impact on
workers who are basically devastated. I'm sure they are. For as long as I've
been driving the highway, I can remember that refinery there. It's very much
part of the infrastructure. It's changed hands. I understand from the news that
they were looking to upgrade to improve the operations, so there was a real
opportunity to see this oil refinery to continue to employ people, to continue
to produce fuels that are required by many parts of the economy. Certainly, jet
fuel and propane are a few that have been mentioned.
From our point of view, yes, this deserves very much
our immediate attention and an immediate debate on it this afternoon, hopefully
with the intention of finding out how do we move forward with it and find some
constructive way to deal with it.
MR.
SPEAKER:
The
hon. the Member for Humber - Bay of Islands.
MR.
JOYCE:
Thank you, Mr. Speaker.
I'm speaking on behalf of my colleague, the Member for
Mount Pearl - Southlands. We support this motion also.
It's a devastating day any time when someone says
you're going to lose your job and lose your livelihood, but it's more
devastating when you have 500 people in the same boat, plus all the spinoffs.
It's a very rough day for Newfoundland and Labrador. I have confidence in the
minister that the minister will work as hard as he can to help with the
situation, but we need to come up with concrete solutions.
I will give a good example, Mr. Speaker. I was in
Opposition at the time when the Corner Brook Pulp and Paper mill was going to go
under. I remember the minister at the time, it was Mr. Jerome Kennedy, and he
came over and he said we all got to work together to find a way to get this
moving. We made a decision then, we shook hands that we all work together.
Because everybody worked together, there was absolutely no politics brought into
it, whatsoever, we found a solution. The government at the time, the PC
Government, found a solution to keep the mill operating.
I'm going back at the history off that, Mr. Speaker,
and I say it can be done, but what we need to all do, all Members of the House –
I've been through it several times with situations that we're facing now – let's
park our colours outside the door, let's all move in for the Members that are
here. I know the Member for Terra Nova must know so many people there that are
devastated who are after calling you already. I say let's park our colours,
let's jump into this as Newfoundlanders and Labradorians, let's offer solutions,
let's listen to solutions, let's work with the towns, let's work with the
unions, let's work with the companies. I can assure you, together, we can find a
solution around this. If and when all parties are working together it's going to
be much better.
Myself and the Member for Mount Pearl - Southlands will
definitely support this resolution to have an emergency debate on this to help
all people in Newfoundland and Labrador, and especially the workers and the
spinoff jobs that are created by this devastating loss.
Thank you.
MR.
SPEAKER:
I'm
going to take a short recess now to examine the material that's been presented
by the Opposition House Leader, and we'll be back in a few minutes.
Recess
MR.
SPEAKER:
Order, please!
While the motion did not fit the technical requirements
of Standing Order 36, I'm going to be guided in this case by the ruling made by
Speaker Ottenheimer in May 29, 1978, in the spruce budworm debate. I don't know
how many people remember that debate, but it's the last time we ever had – the
Minister of Education says he does. That was the last time we had a debate on a
matter of urgent public importance in this House.
So in making that ruling, Speaker Ottenheimer also
based his decision on what Members seemed to consider urgent. In his evaluation,
Members did consider the matter urgent and so ruled that the urgent debate could
proceed.
In this context, I also looked at Bosc and Gagnon and
noted that the Speaker has considerable discretion in this matter. Bosc and
Gagnon says: “Finally, the Speaker may take into account the general wish of the
House to have an emergency debate and grant a request for an emergency debate.”
In the context of this motion, given that in Question
Period and in other comments that were made, there seemed to be general support
for the debate.
I will rule that the matter is in order and I ask: Does
the Member have leave to proceed?
AN
HON. MEMBER:
Leave.
MR.
SPEAKER:
Leave.
The hon. the Member for Conception Bay East - Bell
Island.
MR.
BRAZIL:
Thank you, Mr. Speaker.
I thank the House for leave to talk about this
important issue. Just a dialogue previous to this, as we were waiting in the
recess to get a ruling, it seemed to indicate that everybody here supports
exactly what the intent here is. The intent is that this House of Assembly, the
Members who were elected, see the value of that refinery. See the impact that it
has on families, the impact it has on business, the impact that it has on our
oil industry, but, particularly, the impact that it has on our morale in
Newfoundland and Labrador.
That's what this is about; this is also about our
assets. The whole world is facing COVID, and we understand that. It's not an
excuse, but it's a reality. What we have to prepare ourselves for is that when
COVID is over, that we're still equipped to be the beacon of light that we
wanted to be for our citizens and for the rest of this country. We were on a
threshold with the potential we have here with our natural resources, with the
intelligence that we have, the skilled workforce we have, the commitment and
dedication to the people of this country by Newfoundlanders and Labradorians,
our culture itself, we were second to none.
We, unfortunately, got a black eye because we took a
hit with COVID. We've been fortunate enough to be isolated that we could protect
our citizens while at the same time that has an impact on our industries because
our industries are still fairly fragile, particularly if you rely so much on the
mineral industry and the oil and gas. But we need to position ourselves to
ensure that when COVID is over, we become what we were setting our traits to be,
the best positioned natural resource economy in North America, maybe in the
world because of our resources and our ability to deliver on that.
We fell back a little bit, no fault of anybody in this
room, but we do have an opportunity now to ensure that one of the key assets,
the cornerstone, and I see it as a cornerstone because I remember as a young boy
a number of Bell Islanders leaving to go there to work when they first started
to build the wharf. That was the first part of what would be the oil refinery. I
know the ridicule over the 20 years after whether or not it was a white elephant
and all the things around that, but let's look at what happened.
In the '80s, Cumberland Farms moved in and bought it
out. Then there was again a downturn in the economy and what happened there, but
then recently we had new companies come in and now we had an interest, we knew
there were some challenges there. We had an interest by Irving, one of the
bigger players and Canadian players. Unfortunately, that hasn't played out at
this point. We'd all like to know why and suspect we'll get to know why in the
near future. But we, collectively in this House, have a responsibility to work
together to come up with solutions and whatever it means. If it means an influx
of support, if it means lobbying, if it means using our counterpart contacts we
have in Ottawa, if it means, as it was noted, that we're fortunate enough that
some people here have contacts with other companies that may be interested.
Let's leave no stone unturned to ensure that asset and the people who rely on
that for their income and the Newfoundlanders and Labradorians who benefit from
the taxes that are paid by those people and by that company, but, particularly,
for what it supplies to the people of Newfoundland and Labrador: it gives us
independence.
When you're talking about having your own fuel being
refined here, that gives you independence. Other jurisdictions would kill to
have that asset, so we need to ensure it goes nowhere. We've come too far not to
collectively get together and do it and keep the petty politics aside. Let's
work together to make sure that we make this the asset that it should be.
I'm not going to take all of my time, Mr. Speaker,
because I think there are a number of people here who would like to speak. I've
asked the people on my side if they would take 10 or 12 minutes so that more
people could get to speak, because this has an impact on all of us,
particularly.
I do welcome the support from the House, the
independents, the Third Party and the government itself that we move forward and
try to come up with some constructive solutions and approaches going forward to
ensure that asset still stays as an asset that's valuable to the people of
Newfoundland and Labrador.
Thank you, Mr. Speaker.
MR.
SPEAKER:
The
hon. the Minister of Industry, Energy and Technology.
MR.
A. PARSONS:
Thank you, Mr. Speaker.
Normally, when I begin talking about any issue in this
House I say I'm happy to speak, but sadly this is not one of those times when
you're happy to speak. To echo some of what my colleague has said, this is a
time when we must talk about the issue at hand. I would hold him to what he
said, because I agree 100 per cent, when we talk about the petty politics of
these situations.
It's very easy to sit here and talk about we should've
done this, we should've done that; historically, what this crowd has done and
what that crowd has done. The only historical fact that I'd like to talk about
is the historical value of the refinery. We could sit here all day and talk
about the importance. I have some of the statistics here that I would put out.
Again, I'll try my best to keep my commentary in some
kind of organized pattern. It's funny, after numerous questions in the House
today and a scrum outside, one of the comments that I said is that the situation
is evolving. In fact, just reading CBC on this, it's almost like they took the
words out of my mouth. They said the situation is evolving on what seems to be
an hourly basis. That's what's going on here; that's what we must keep in mind.
The other factor that I would say here that's extremely
difficult, and it's something that I said when I spoke to the union rep just
before lunch, we talked about the fact that he's doing his job. He's looking out
for his members, looking out for the jobs, looking out for the industry and they
want information. And who wouldn't? I told him that. I told Mr. Nolan: You are
looking out for your people and I appreciate that, but the situation we are in,
two things we must keep in mind for those that are not, well say, up to speed
with the situation. The refinery itself is owned – we call it NARL, North
Atlantic Refining Limited – by Silverpeak and another group. There are partners.
They purchased it back in 2014, I believe. It's owned by a private group and
they were involved in a proposed sale to another private group which is Irving.
Like any commercial deal of that nature, there are
agreements signed that forbid the disclosing of information. As government
you're privy to certain information, but to put that out there, to satisfy the
need for people wanting to know – and I will say, not being a partner – again, a
question I had earlier: What has North Atlantic done in a certain regard? I
wouldn't be able to say because I'm not North Atlantic. We are in constant
communication with them. We have spoken to Irving. We have spoken to everybody
we can, but the situation is extremely fluid and continues to move.
When we talk about the motion that was made under
Standing Order 36, is we're talking about the impact of the closure of the Come
By Chance oil refinery and the devastating economic impact it will have on our
province's economy, so on. What I would say, though, I still live in hope that
it's not closure. I still live in hope that the word will not be, will, it's
could. I think we're all talking about the same thing. It's this House coming
together to recognize the fact that there are, I think, in – I want to talk
about some of that economic impact, 400 jobs.
There are 400 person-years of employment. That's the
latest figures we have. Now, that is direct employment. I would point out that
they are good, solid, well-paying jobs in a rural area of this province, which I
think carries a significant amount of weight. The latest numbers we also have
said that it's 1,471 indirect or induced jobs. That in and of itself is a huge
number in this province.
Sadly, this is very reminiscent and similar to the
debate we've been having in this House and have had in this House up to
yesterday, in fact, and it will continue on, which is the issues faced by our
offshore industry. We talk about not just the jobs that are involved in the
industry; it's the indirect and induced employment that comes with it. It's the
spinoff that comes with it, and you only have to look at this city to see what
the impact is when we have a downturn in the market. We've gone through it
before and we're certainly going through that right now.
Labour income is about $65 million direct, about $105
million indirect or induced. NARL itself owns 60 retail locations; three
cardlock stations. They have home heating and propane delivery. If there's a
positive, I would point out that this is owned by a separate entity. So this
will not be affected, and they have indicated this will continue on. This has
been a tough issue since March when it went into basically a shutdown mode
caused by COVID.
I just spoke to the media here, and one thing I tried
to get through here because – and, again, this is me just speaking about it.
It's one thing when as a government you make a decision or a policy change or a
legislative change, you have your reasons for doing it, and then if it is not
received well or taken well or positive, you defend it, you deal with it, but
you bear some responsibility.
The difficult part here is that the situation we face
is the same one that's being faced, especially, in Alberta; it's being faced all
around the States. In fact, I was reading an article just a minute ago about how
Phillips down in the States is shutting down a refinery as we speak. There are
going to be significant refinery closures on this continent and worldwide. We
are all facing the same common affliction here, which is COVID. That's one of
the big, huge factors that have driven this, combined with an oil market that
has collapsed. Those two things together make for a significant impact.
Another article I read this morning, when we talk about
the impact, right now I think oil went up to $41.91 this morning in Brent, which
is up about a dollar. It's almost like you live and die every morning on those
emails you get about where it's going.
The latest I saw is that the Saudis in their budget
documents have estimated $50 oil for the next three years, but $50 oil won't
even cover what their budget needs are. They need about $66 to break even. So
when we have a country over there that has been historically wealthy and they're
talking about what they're facing when they're going through this, it just tells
you that we all face this common issue.
I'll go back to the main point I was making, is it's
difficult because this is not something that was caused by a government
decision. This was caused by something that's bigger than all of us in here
about a decision that's been made for various reasons, whether it was budgetary
or otherwise. That makes it even more frustrating than a problem that may have
been of your making; that you have an ability to sit down and just do something
that will actually cause that change; wherein, this case we have a problem. We
know that we have to and want to be able to fix it, but the issues that are
causing it are outside the control of everybody. There's nobody that can control
this. Well, the second issue, I guess, you could say some of the larger
oil-producing nations could have a say in that, but that's far beyond our
control here right now.
Back to the case at hand. This is something that has
evolved very quickly. I know the union was notified yesterday, that Irving put
out their notice today. Some of the questions today are about the impacts. I can
tell you, I certainly understand the impacts, I think perhaps as well as anybody
in the room. You only have to speak to these communities and these people and
read your emails, just receiving them. I'm sure when I pick up my phone after
this I will have had an email by somebody that's affected. You read each one of
them, you respond to them and you listen to them. You carry it with you.
Two things that I live in hope of, one is there is a
glimmer of hope that's been expressed by – a possibility that there may be
another purchaser. That interest has been expressed. It's been expressed before
by the company, Origin. It's something that we know, that now they too have been
made aware of this, they will be doing their due diligence.
Our job as the provincial government is to see what
there is that we have the ability to do. It's not always simple, but there
certainly has been no issue with the chain of communication that has been there.
The more that we are allowed to say, the more detail that we are allowed to
give, we'll certainly give it.
In fact, I can tell you, Mr. Speaker, I would love –
the same as with the offshore industries, the same as with many decisions and
the issues you face, you would love to be able to fully disclose them so that
people could realize the environment in which they're working. I would love to
do that, but my desire to do that is outweighed by my need to ensure that we
don't do anything to harm this – I can't say pending transaction, but this
current issue.
The other hope I live in is that there are times when
this House comes together in, I guess, a common goal, a common need and we all
feel that need. Some of us feel it a little bit more, because when they go back
to their district on the weekend they're going to be talking to these
constituents that are directly affected. I empathize. I've been through that in
other industries. It is not a good feeling. So I look to my colleagues and I
say, I understand what you're dealing with there. That's a tough thing. Nobody
wants to go through that.
What I can say is – the same as I've said to the mayor
of Clarenville and the mayor of Come By Chance – if there's anything I can do,
it's a matter of calling. Because we want the same thing. What is good for one
of us is good for all of us here. This is one where nobody does not benefit from
the resolution of this issue. Everybody benefits. The people involved directly
working, benefit. Hopefully, the owner benefits, the community benefits, the
province benefits and the Treasury benefits. This is good for everybody. That's
why we're having this debate, because this is not an issue that, I think, is
isolated to that particular area. The impacts are felt province-wide.
There are issues that will come out of this, but I'm
not prepared to have that debate today. Whether it's the supports for workers,
that's a question that, of course, has to be asked, has to be looked at. In
answering that or coming up with specifics, one could say then that, well,
you've assumed the issue is already done and there's nothing you can fix. That's
not where my head is. The other thing I would say here is when it comes to
supply issues, that's not an issue that's been expressed to me at this point,
but supply issues, price issues, these are all things that we have to look at
that are the repercussions of this deal not being done. These are all things we
will face.
There are a few Members in this House that have sat
through similar debates. We went through this in 2014, where there was the
previous sale. Just some history, if you want to know the history: '71 to '76,
it was Newfoundland Refining Company, Shaheen resources; then it was idle four
years;'80 to '86, Petro Can; then it was '86 to '94 by Newfoundland Energy
Limited; '94 to 2006 was Vitol SA; 2006 to '14 was Harvest; '14 to '20 is
SilverRange, Silverpeak; and then, up until now, we had anticipated that there
would be another proponent that would take this over.
We have gone through this. Some of the transactions
have been smoother. I'm sure some of them faced far less environmental issues.
When I say environmental, I mean the issues that we're dealing with. Commercial
transactions are difficult even in the best of times and the best of markets.
Right now, we are dealing with unprecedented times in markets and the world, in
and of itself; makes it even more complicated and more difficult.
I guess what I would close off saying – because I know
there are other Members that want to speak – is that I have to respond to one of
the questions here: Don't let anyone mistake a measured tone as being reflective
of not being emotionally attached or mentally attached to this deal. I am a
believer, and I've seen it and sat in this House. The fact is that rushing to do
something or getting angry or frustrated or losing your cool does not often
result in the best deal.
We've seen governments before – and I'll say
governments on both sides. I'm not talking about anybody in particular, lest
people thing I'm going that route. We have seen governments make decisions
thinking it was in the best interest, trying to get it done, realizing that the
clock was running; the clock was ticking; we had these concerns. It's only later
on that you realize what did you actually get, what did you sign up for and what
did you cause? Again, it's not about best intentions, it's about doing this
right.
I would say that, look, this is something that our
entire department is consumed by. As if we're not already facing the similar
issue with our offshore industry, this is something new. But I will say, to use
this phrase, that a house divided will not stand, but a house united I think can
get a lot of good done.
On that note, I look forward to the comments from my
colleagues across the way. I look forward to continuing to figure this issue out
for the betterment of the province.
Thank you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Leader of the Official Opposition.
MR.
CROSBIE:
Thank you, Mr. Speaker.
When I had occasion to comment on the Budget Speech and
the budget documents, so recently delivered, I said that the most important
number in all those budget documents was 13,000. That number was the number of
jobs expected to be lost in coming months.
If we take 500 as the number of jobs in direct
employment with the Come By Chance oil refinery, owned by NARL, if we take the
usual multiplier of three, that suggests a number of a further 2,000 jobs
imminently being lost, should this oil refinery close down on a permanent basis.
If we look at The
Economy booklet, which I happen to have here, my souvenir copy, if we go to
page 12, there's a table and it sets out Provincial Economic Indicators. These
things can be rather abstract, but what we can get out of it is that the
government expects folks in the Department of Finance, who do these
calculations, expect 13,000 job losses in coming months. If we add the recent
distressing news to that, then it looks like that may be 15,000 losses in coming
months. That's on page 12, by the way, the table on page 12.
Also another distressing figure is Real GDP growth by
Province Newfoundland and Labrador is projected by the government to suffer a
minus 7.7 through 2020 loss or shrinkage, negative growth as the expression goes
of 7.7.
Mr. Speaker, I don't know if this is how an economist
would do it. Perhaps some economist or the Minister of Finance eventually will
explain it. But if NARL, if the Come By Chance oil refinery is thought to be 5
to 8 per cent of the economy, I suppose depending on the year or the test here.
That's a major chunk of our economy, of our GDP as a province. If that's the
case, then I guess it suggests that something in the neighbourhood of 13 to 15
per cent of our economy is going to go missing over the next few months into
2020 – negative growth of around 15 per cent if this sad event continues.
While looking through the wonderful tables in
The Economy document, the only
reference I could find to North Atlantic Refining is on page 69, there might be
some other reference but this is all I could find. It's a table that sets out
Capital Expenditures for – they're divided up in various sectors – inventory of
major capital projects. What it has here is capital expenditures of $50 million
to $60 million in 2020 and it's described as being: “NARL Refining, LP -
maintenance capital as well as capital for the crude flexibility project, tanks
and other projects.”
So here the budget documents are already counting
expenditures anticipated to be made by various entities, including NARL, in the
coming months and now may very well be that those expenditures are not going to
be made.
More to the point, the budget documents themselves give
no hint or suggestion that there might be a failure to follow-through or a
failure to execute the agreement to purchase, and a failure to close the deal by
Irving Oil with respect to the NARL facility. There's no suggestion in any of
these budget documents delivered only days ago, so one might infer from that,
that this comes as a surprise to the government.
I spoke to a worker in the Tim Horton's in Clarenville
only days ago on my way back from a road trip across the province. We had an
interesting chat and this person told me that he's on much reduced hours; he's
not full-time now. He's on reduced hours as many other workers have been for
recent months and he was very much looking forward to getting back to full-time
work because his income, of course, had been reduced correspondingly. So that's
just a taste of the human dimension of these statistics.
I received an email; it just happens I received this
today. I won't identify who sent it. This person is a worker mainly related to
the offshore industry. I'm picking this, it's the only one I have in my inbox
right now, Mr. Speaker, so that's why I'm reading it.
He says: talking to a lot of my co-workers. We all feel
the same, as we cannot wait to vote PC in the election, which we hope will be
soon. I am from a small town, English Harbour East, in Fortune Bay. I've lived
in Burin for the past 11 years and recently moved to St. John's. I was hoping to
get back to Argentia working soon and the point of moving to St. John's was so I
could be home with my family every night, rather than have an apartment out
there like I did before. But without government investment, I'm doubtful of
that. I've been in the trades for over 20 years; I'm an electrician. I did the
fly-in, fly-out in Alberta for eight years and was hoping not to do it again.
I'm sure we've all received emails of that nature and
the insights we're all familiar with and grateful to those who correspond with
us and call us for the insights into their own lives and the impact of abstract
figures like 15,000 job losses on their lives and the lives of their families.
SOME HON. MEMBERS:
Oh,
oh!
MR.
SPEAKER:
Order, please!
The hon. the Leader of the Official Opposition.
MR.
CROSBIE:
I
might've expected the Government House Leader to lead by example in terms of
decorum.
SOME HON. MEMBERS:
Oh,
oh!
MR.
SPEAKER:
Order, please!
MR.
CROSBIE:
Thank you.
So –
MR.
CROCKER:
Point of order, Mr. Speaker.
MR.
SPEAKER:
The
hon. the Government House Leader.
MR.
CROCKER:
(Inaudible) section 49, Mr. Speaker, of the Standing Orders, the Member
opposite, we start off a debate this afternoon and the Member for Conception Bay
East - Bell Island makes a really good point. I think our minister responsible
for that department makes a good point as well. Then one day we're hearing the
Leader of the Opposition bringing motions that they don't want an election, and
then he starts off his conversation this afternoon talking about the urgency for
an election.
So, Mr. Speaker, he can only have it one way.
Thank you, Mr. Speaker.
MR.
SPEAKER:
There is no point of order, but I caution Members to use temperate language in
the House.
Order, please!
The hon. the Leader of the Official Opposition.
MR.
CROSBIE:
Thank you, Mr. Speaker.
I might have expected the hon. Government House Leader
to have a firmer grip on what a point of order is.
The Minister of Industry, Energy and Technology, to my
mind, is overemphasizing the COVID effect in the present industrial crisis
involving NARL, or at least I have to question whether that's the case.
This agreement of purchase and sale was entered by
Irving in May, so we understand. One has to believe that Irving did this in full
knowledge of COVID and its worldwide effects, and likely worldwide effects given
that the world started to shut down back in March.
You have to assume that Irving went into this deal with
their eyes wide open about the COVID effect. In fact, the reasons why Irving has
decided that they don't want to complete this agreement of purchase and sale are
not at all clear. In fact, they're very obscure. They have not seen fit to share
those with the public, and perhaps for understandable reasons. Government
ministers have not seen fit to do that either. They feel they're obliged by
confidentiality perhaps not to disclose that, and I can understand; but, the
fact remains that the reasons why Irving is pulling out are not clear.
Luckily for the workers and their families who are
impacted and whose lives are dangling over a precipice as a result of this
terrible news, luckily there is an alternate buyer or bidder, so far as we
understand. Who is that alternate buyer or bidder? Well, that's a matter of
public record. For example, I'm looking at the story from the CBC
website, its dateline July 20, 2020, and it tells us something about this
company, Origin, which was the disappointed bidder at the time Irving was
awarded by NARL the bid and the deal which has now come a cropper.
I read from that story. It says: “If given the chance,
a company called Origin International is pledging to resume the processing of
various fuels at the Come By Chance refinery, hire the same or more personnel
than worked at the facility before the pandemic, and expand the operation into
‘a more environmental sustainable model.'
“It's all spelled out in a June 8 letter, obtained by
CBC News, to provincial Natural Resources Minister Siobhán Coady.” As she then
was.
“In the event the Irving transaction stakeholders deem
appropriate an assessment of alternatives to acquire NARC, Origin stands –”
MR.
SPEAKER:
The
hon. the Government House Leader.
MR.
CROCKER:
Point of order, Mr. Speaker.
The Member opposite named a Member of this House by
name.
MR.
SPEAKER:
I
did not hear that, but I'll caution Members not to use the names of Members in
the House.
MR.
CROSBIE:
Thank you.
It says: “… Origin stands willing and able to re-engage
in its bid for NARC ….” In other words, if the thing falls apart, which it now
has. That's very encouraging. It quotes the CEO of this Origin company, a Mr.
Myerson.
Myerson goes on to say: “We just wanted to make
decision-makers aware of our interest in the province and a key asset in the
event circumstances changed.”
The story goes on: “Origin does not have operations in
Canada, and Myerson says it would sail through the regulatory approval process
much swifter.”
I guess we can infer that the Irving deal has not
sailed through because March, June, July, August, September, we're now into
October and there's no decision from the competition authorities about this. The
point that the Origin CEO is making here is that because it doesn't have
operations in Canada, it wouldn't have the kind of regulatory approval issues
that Irving might and apparently does.
Myerson is quoted: “This being the case, approximately
45 days of due diligence could be the main bottleneck to closing a transaction
and bringing jobs back to the facility.” Forty-five days. Here we are several
months now and, of course, no word on the acceptance or rejection of the Irving
takeover and perhaps it's all moot now anyway.
The point out of this being that at least the advice of
the chief executive officer of this Origin group is he would expect that for the
reasons explained, there would be a very comparatively short period of time
before regulatory authorities, competition authorities would be able to give
their seal of approval to the deal, so not a long turnaround time. That will be
or would be good news to workers and their families.
It describes itself, this is Origin: “… as one of the
largest privately owned collectors and recyclers of residual oil and waste water
in the U.S. and Europe.
“The company operates three locations across the U.S.
and Belgium, and is constructing a waste oil recycling plant in Baltimore,
Maryland.”
The CEO is quoted: “We believe that every barrel of oil
we recycle means one less barrel going to landfill or being improperly
combusted.”
“Myerson said his company is focused on environmental,
social and governance excellence.”
Well, these are the news reports. Ultimately, who
knows, but on the face of it this sounds like a desirable corporate citizen. A
corporate citizen who believes it has the financial capacity and the
characteristics to, if brought into play as a backstop to the deal that's
currently falling apart in front of our eyes, could quickly pick up the pieces
and keep this oil refinery to get it up and running and operating through the
winter. That's what I derived from the news reports; very encouraging.
This is very encouraging, and one wonders why the
government was not in a position after following and keeping close communication
with Origin, without breaching any confidentialities they might have had with
Irving itself, why the government was not in a position to give rapid and
immediate reassurance to workers and their families that there was another party
waiting in the wings who is ready to come in and pick up the pieces and that
their jobs were secure.
Thank you.
MR.
SPEAKER:
The
hon. the Deputy Premier.
MS.
COADY:
Thank you very much, Mr. Speaker.
I'm happy to have an opportunity to speak to this
today; though, I'm feeling rather sad about the fact that we are here today, Mr.
Speaker. I'm also equally sad that people would play politics about a very
sensitive issue. I won't go back tort for tort on the last speaker's comments
but I will say a couple of points today that I think will help add to the
debate.
First of all, to the employees, to the workers of the
Come By Chance Refinery, I've had the opportunity, Mr. Speaker, to visit there
on a number of occasions. I can say that they have a great deal of pride and I,
as a representative of the Government of Newfoundland and Labrador and the
people of Newfoundland and Labrador, share their pride in what they've been able
to do since Silverpeak has taken over the refinery in 2014. They have made this
refinery, as I said earlier in Question Period, more efficient, more reliable
and safer. Mr. Speaker, they've made it one of the top quartile refineries and
certainly the seventh largest in Canada.
So, first and foremost, to everyone who is involved
with the refinery, the 400 families and then there are about 200 contractors
that are impacted today, my heart is there with you. I know government is doing
everything it can to ensure the continuance of its operations because of how
important it is to the families that are involved in working there, but also to
the economy of the province.
I will say this, I remember the phone call very well. I
think it was at the end of March. We had just started the big lockdown and we
were all concerned about the health and safety. I remember receiving a call
saying that the North Atlantic refinery has initiated a suspension of the crude
oil and hydrocarbon processing at the refinery in response to COVID and the
pandemic, and there were a lot of overall concerns about what was happening in
the petroleum industry globally. At that point in time, I know they basically
warm stacked it and tried to keep as many employees as they possible could.
I've been dealing with Silverpeak over the last number
of years, Madam Speaker, and I can tell you they were putting big investments, I
think it was about $400 million into the refinery, to bring the refinery up as
best they could. Making it more, as I said earlier, efficient, bringing the
number of barrels it produced – I think towards the end it was 135,000 barrels a
day which was substantively increased over the time.
I know people were very, very – proud, is a good word
to use, and there were long-term, exciting plans happening. I remember talking
about a coker, talking about a pipeline and talking about a number of exciting
initiatives, Madam Speaker, and then the pandemic. We've seen this around the
globe. We've seen this happen in the United States with the number of refineries
closing.
Allow me first to tell you a little bit about what NARL
Refining actually does. It operates about 135,000 barrels per day at Come By
Chance. It includes process facilities, crude oil, refined products storage
tanks, as well as a deepwater wharf and jetty facilities for tanker loading and
offloading, and of course it has a marine division that manages vessel traffic,
oil spill risk control prevention. The majority of the refining output is
exported, with about 10 to 15 per cent, on average, annually sold in
Newfoundland and Labrador.
It also has a large division called NARL Marketing,
which is a retail and marketing operation. It has about 60-plus gas stations,
Madam Speaker, around the province, and three cardlock storage and distribution
locations, various bulk plant storage facilities, wholesale and commercial
division.
I'm saying all this, Madam Deputy Speaker, because I
think it's important for the people of the province to understand the value of
the refinery to Newfoundland and Labrador and the value of the pride of
workmanship of the people that work there. Labour compensation is about $170
million. That's direct and indirect and induced. It's quite something, if you've
ever had the opportunity to tour there. It's a very valuable asset.
The North Atlantic refinery is a very valuable asset.
It's strategically located, obviously, in North Atlantic crude oil shipping
routes. It gives access to petroleum markets in Europe and the Eastern US
seaboard, which is again very important. The value of the international
petroleum exports from Newfoundland and Labrador totalled $3.1 billion in 2019.
It has a deepwater – as I said earlier – terminal that welcomes oil tankers from
around the globe.
Madam Speaker, I will say that Origin International did
write to me as a former minister of Natural Resources back on June 8, they
expressed interest. As the former Speaker did say, there is an opportunity here
for others who may be interested in this particular asset.
I say to Origin, you're welcome to Newfoundland and
Labrador. The workforce is outstanding. I can say they have a lot of pride in
what they are doing. I've already given a rundown of why this is such an
important asset and why we welcome investment from around the world. I think
it's incumbent on everyone in this House today to make sure that we make that
message heard and make that message load and clear that anyone who wants to step
forward to take over the asset, to reinvigorate and reimagine what North
Atlantic refinery can be, to not only the province but to Canada and globe, so
we welcome them.
I will say, I can recall very vividly the day, I think
I was the end of May, when I learned that Irving had expressed interest in
taking on the asset themselves, it was May 28 actually, that Irving announced
that they had reached an agreement with Silverpeak to acquire NARL. It was,
despite some comments earlier, it was related to COVID. As I said, NARL refinery
was moving forward, Silverpeak was moving forward with investments in the
assets. At the end of May, we learned that Irving Oil was subject to a
regulatory review, of course, and conditions of sale being met.
So now we know, as of, I guess, yesterday, or the day
before, I guess yesterday, that that has fallen through. I guess the conditions
were not meet. I think they were still in the regulatory process and Irving has
removed itself from the discussions, but Silverpeak is still interested in
exiting and making sure that this asset is valuable to someone other than
themselves, at this point in time. Again, it is related to the pandemic and the
impacts of the global oil crisis.
I will also say, Madam Speaker, earlier the previous
speaker had talked about the impact to the province and the impact to the
budgetary statements that were delivered last week and the impact to the
economy. I said earlier, as we know the Come By Chance refinery was closed and
would be closed for most of this year; therefore, there would be minimal impacts
on the budget economic projections.
I will say that again so that people do not start to
extrapolate out huge numbers and fear monger, Madam Speaker, because I think
it's important that we understand the impacts of this, we understand the impacts
to the family and to the economy and to the supply chain, to the Province of
Newfoundland and Labrador, as I said, 10 to 15 per cent of the refining came to
Newfoundland and Labrador. I wouldn't want anyone to misunderstand that
extrapolating huge numbers and making it even worse than it already is.
I will say that NARL – North Atlantic Refining Limited
– I just say that because I think that a lot of people get confused when we say
NARL, North Atlantic Refining represents an estimated 1 per cent of the total
provincial GDP, which includes direct, indirect and induced impact of operating
and capital expenditures, net value added as a result of refining imported and
locally produced crude. I want to make sure that people understand that. I know,
and I think I even said earlier, it's about 5 per cent but when we look at the
total provincial GDP impact, it's about 1 per cent.
There are men and women who work here that have done
exceptional work and we want to support them and encourage them, that's why I
spoke directly earlier to the value and the benefits of this particular asset.
That's why I made sure that people understand that this is very, very important
to the province and that we're going to do, as a province, everything we
possibly can do.
I will say again, and I know my colleague, the Minister
of Industry, Energy and Technology did indicate earlier and continues to
indicate that this is a private ownership and a private sale. But I did have the
opportunity when I was Minister of Natural Resources to speak with Irving and
they appeared sincere. Again, I say that Irving has been in the province for
about 50 years and they did indicate that they would go back to full operations,
had they been able to successfully close on this. It is truly unfortunate to
learn this news.
We still have strong belief in this industry. We know
the value of the people who work there and the value of what they bring to
Newfoundland and Labrador.
I know my colleague and I know this government will do
absolutely everything possible to represent how positive an impact the North
Atlantic refinery has to the province; how positive an impact it has on global
markets; how well and strategically located it is; how well and strategically
the deep-water terminal is, that it does now have 135,000 barrel per day
capacity, thanks the hard work of the organization over the last six years, that
the province stands behind it.
I think all Newfoundlanders and Labradorians have pride
in this and I think that we will do absolutely everything that we possibly can
to ensure that it will continue to be a vibrant, active, refinery in the
province, contributing not only to our GDP, not only to the families of the
workers there, but also to our supply chain, also to the spin-off industries
created around it, also to the technology, to the university.
I've met a lot of young people, Madam Speaker, who were
there that were graduates of the Memorial University engineering school, and
were so proud to be able to work in the industry and so proud of what they were
contributing as well.
I say to everyone in this room today, I think we should
all stand together in strong support of the North Atlantic refinery. I think we
should all stand together in attracting investment to this province. We should
all stand together in support of the men and women who work there and the pride
with which they hold the refinery.
I think we all realize throughout this pandemic how
important it is to support one another, how important it is to emphasize job
creation, to support businesses and to support industry in this province. The
budget did just that, Madam Speaker, and I will say that we will continue to do
that for all those who work at North Atlantic refinery, and who work with the
marketing arm as well as with the refinery.
On that note, I know a number of my colleagues wish to
speak, I know Members opposite wish to speak, so I'll conclude my remarks.
Thank you, Madam Speaker.
SOME HON. MEMBERS:
Hear, hear!
MADAM SPEAKER (P. Parsons):
Order, please!
The hon. the Member for Conception Bay South.
MR.
PETTEN:
Thank you, Madam Speaker.
It's a sombre kind of day, actually. I might want to
add that I changed critic roles a few weeks ago and went from Transportation and
Works to Industry, Energy and Technology and it's been a blur for the last few
weeks. It's just constant. With the oil and gas industry, there are rallies on
the steps of the Confederation Building; now we have the refinery closing. I was
in the middle of budget and Estimates.
But you learn on the fly, and it's something that's
near and dear to all of the people of the province, our oil and gas industry
alone, especially the Come By Chance refinery. You drive through Sunnyside;
you're on the highway; no one ever misses Come By Chance, the stacks. It's a
landmark more than anything for my lifetime and most people in this Legislature.
It's been there for a long time and it's a huge economic driver. It's a great
employer. It has a long history.
We hope, on this side anyway – and I'm sure all sides
of this House – the history is not done. We hope there's a new life for this
refinery. We can't afford to let the refinery come to a close, which was
announced last night. I believe everyone in this House feels that way.
I do believe residents, workers and families – because
that's all it's affecting. If we look at a refinery, a refinery is the building
and it does a lot of things. You say, what is a refinery? It's more than just
the bricks and mortar and the stacks and the oil tanks. It's families, it's
jobs, it's people's mental health and it's communities. If you lose 500 jobs in
St. John's and the Northeast Avalon, it's a huge blow, and the spinoffs from it,
a huge blow.
If you go out in those areas, that is those
communities, that is most of that area. For some of the smaller communities,
that is the backbone of the community. People in this end of the province
probably would never realize until you went out there. I've been out around
there and I'm sure most have. A lot of residents in the province don't realize
it because sometimes you can't put it into perspective, but it's a huge
employer. Again, where do you go?
If you look at our oil and gas industry, I get oil –
I've said this before and I'm happy to say it. Every evening I go home, every
night I go home and I see the Terra Nova parked out in Conception Bay. It's
beautiful in the nighttime if anyone ever had the opportunity. I say that with
all sincerity. When lit up it's beautiful, but I'd much rather see that out
pumping oil than sitting in Conception Bay.
That's what we're facing right across the board. As we
talk about Come By Chance, we're talking about an industry in crisis. The
minister and everyone on the government side are saying this is a
business-to-business transaction. I get that. I don't think anyone in the
province doesn't get that, but I think you have to ask yourself, we can sit here
for the next hour or two, we can sit here all night, until you start offering
solutions, talking solutions, we can talk all the nice words we want to talk,
until we start talking solutions, take some ownership – there are things, I
would think, could've been done differently.
Five or six years ago the PC Party were on that side.
In 2014, they were part of the sale. Whoever's name is over the door, you have
to take some responsibly. You can't absolve yourself of responsibility. You're
the government; you have to take that responsibility.
Now, is that a direct slight that someone over there
did something wrong? No. It's obvious; the government of the day have the keys
to the Treasury. We don't. We ask the questions. We try to offer solutions; we
try to debate solutions. That's what we're doing here now, but ultimately they
have the aye or nay.
The people that are affected by this, right throughout
the province, Eastern Newfoundland especially, and a lot of my colleagues here,
it's in their districts. Actually, my district as well is affected. Some people
work there. They want answers. It's fine to say it's business to business; it's
not government; it's a private sale, we're concerned. We're all concerned.
I asked a question during Question Period today: Could
you not have been at the table? Could you not have had some other influence?
I know several of us got an email – I think the
minister was included on the email. Someone suggested power rates. When Muskrat
Falls comes online, would there not be an opportunity to give a reduced deal on
their electricity to offset some of the costs of the refinery as an incentive?
Even though it's a private business deal, what's wrong with offering an
incentive? We're not saying government should purchase it. Why not offer an
incentive? Were there any incentives on the table like that during this most
recent negotiation that broke off? We don't know – which is another part of the
problem.
We were there last night in Estimates and Friday past.
Actually, the president of the union that the minister referenced when he spoke,
he lives in my district. He reached out to me Friday because he was frustrated
that he had trouble trying to talk to someone in the department. This was
Friday. I committed to him – ironically, I said: Well, I have Estimates Monday
night with the minister and his officials, and I will assure you I'll get
answers to your questions and I will ask the minister to contact you directly.
Lo and behold, 6:15, 6:20 last night during Estimates the breaking news was the
refinery is shutting down. Then I went into questioning the minister on, where
do we go from here?
For those people, that's the frustration. I get the
fact you're not responsible, and that's not all wrong, but the question is – and
we don't know. That's what we're here for today. Hopefully, these details will
come out. What did you offer? Did you offer anything? Was there anything on the
table? Was there any offer? Was there any olive branch to say, listen, we
realize it's a private enterprise, but we're willing to sit down at the table.
Do you want to talk to us?
So we do not know that, and we ask questions. That's
what this is about. It's not about throwing rocks on one side or the other,
because we've got someone already that – I'll leave that one. The stones, I
won't go there. I'm going to be nice. I'm not going to turn any more stones
today, I'll say that.
AN
HON. MEMBER:
They're all turned over.
MR.
PETTEN:
They're all turned over, that's right.
People want answers. There are people in this province
now – there are families that are devastated, absolutely devastated. The workers
are losing their jobs but they're going home to their wife and children or their
husband and children – it depends who's working there – they have bad news. This
is detrimental, and we're in this economy now with COVID.
We're struggling anyway, our oil and gas industry is,
as we already know where that is. There are not a lot of jobs that are going to
pay anywhere near that. We're on a downturn everywhere. All of our big projects
are coming to an end, and now you have this. I understand government are
struggling financially. We get that. They recently got the $320 million, maybe
there's something they could do with that. There are a lot of demands for that
money, but you have to do something.
I know if I was home today and my job was gone or I'm
thinking everything is gone and there's no hope – there's a company there that
shows an interest, but that doesn't mean nothing until it's finalized. I'd be
looking, what are government going to do?
One of my questions, actually, to the minister last
night during Estimates was: Is there something you'd consider for the workers? I
understand it's not going to be a miracle with the financial situation. Is there
something we can do? Because we're not going to solve the world's problems today
but I think there needs to be some sort of assurance other than kind words:
well, we're sorry, we weren't part of this deal. No one is saying that's false
but you have the ability to do something.
If we have a fish plant that closes, we step in. We
have ski hills that were failing; we purchased them. We have airports that
struggle; we subsidize them. I can go on, but the picture I'm painting is we
can't absolve ourselves of something of this magnitude of our refinery in this
industry.
I do understand where the economy is going. I
understand where people's minds are going with the green energy. That's not
where we need to be to, not now. You'll always have to find a balance. Oil and
gas is still important. Oil is still a very important commodity in our market,
and we need it. It's fine to be green but green technology will not fully
transform for 20, 30 years or longer out.
The Member for Lake Melville is much more up on the
carbon and the climate change issue than I am, and I'm sure he can back me up on
that. You're going to need a balance. You can't shut down all. You can't shut
down your oil and gas. Unfortunately, we get that attitude coming from the
federal government which makes me nervous because I understand fiscally where we
are provincially.
Again, we saw it already in the oil and gas. We have
money to do whatever you want with but we never address the problem. I think the
same thing will happen here. We have a government that's struggling financially,
so if you don't give incentives or try to be creative within our own bubble
here, I don't think the federal government is going to step up any time soon
because they're all about green technology. They're all about what's green. Down
the road that may be fine, but right now I fear to think what the future holds
for this province if we don't get some substantive answers and solutions to the
problems that are facing us.
Come up with solutions, incentives. Are there monies we
can do to offset power rates? Is there any subsidy you can give them to get them
over this hump? Is there something you can broker at the table for a sale?
That's what the people want to hear. They don't want to hear we're sorry. They
don't want to hear condolences. They want to hear solid answers or assurances
that something is going to be done and we're with you. That's what the public
want; that's what the workers want.
I guarantee you, the families that are out there today
that are faced with this wondering, with the winter coming on, how they get
through this – because they've been out of work for a while now, this sale has
been ongoing. Some of them have been on the edge for a while, some people have.
This is not a good time and they want action. They want
some answers now. It's fine to say you're not responsible. Okay, you can do
that, but the workers know who's responsible; the people of the province know,
ultimately, who is responsible and who can make a difference. It's the
government of the day. I call upon them to do that.
Thank you very much.
SOME HON. MEMBERS:
Hear, hear!
MADAM SPEAKER:
The
hon. the Member for Placentia - St. Mary's.
MS.
GAMBIN-WALSH:
Thank you, Madam Speaker.
Yesterday, the media reported that the deal with Irving
Oil had collapsed and that the workers at the North Atlantic oil refinery in
Come By Chance could be without employment permanently.
Madam Speaker, last night, I was sitting in my office
at home and my phone started going buzz, buzz, buzz and I said: What's going on
now? I picked up my phone, I was learning in real time what was happening. The
workers were telling me that they had received notice from North Atlantic and,
Madam Speaker, many residents of my district are gravely impacted by this
important issue. The impact is felt on individuals, families, local businesses
and Newfoundland and Labrador as a whole.
Madam Speaker, when I was the minister of Service NL, I
worked very closely with the latest operators, the staff and union, executive
members and we developed a really good relationship. We worked together for
about a year. We worked to ensure everyone felt safe and worked collaboratively
together and the morale had improved greatly at the site. Madam Speaker, this
refinery is a major asset to the residents of the surrounding districts and to
the people of the Trinity, Placentia, Marystown and Clarenville area, just to
name a few.
This is an evolving situation. As I said, I learned
about this in real time. I have spoken to a number of people directly impacted.
These are individuals who are employed at the refinery and are waiting to go
back to work. As the MHA for Placentia - St. Mary's, I can assure my
constituents that we understand the impact of this news.
We are having a difficult time here in Newfoundland and
Labrador with the collapse of the oil prices and COVID-19, but we're not alone
worldwide. However, it's not lost on me that my constituents may be without
work, permanently. It's frustrating because the work environment has improved
greatly at the site. The refinery appeared to be on the upswing prior to the
pandemic.
I am hearing that North Atlantic will try to cut costs
before shutting the site down. In the past, the refinery had contributed to as
much as 5 per cent of the province's economy. That's a large number, Madam
Speaker.
This issue took up a significant portion of Question
Period today, and we're now debating it here in the House. We can come together
as elected representatives to do our best for the people of this province and
the economy of Newfoundland and Labrador.
Again, Madam Speaker, this refinery is an asset to
Newfoundland and Labrador. We believe that there are options here, but we must
take our time. We must arrive at the best option for the people of our
districts.
Madam Speaker, we have individuals of all ages impacted
here. We have households where multiple individuals are impacted. You'll often
hear people say what a difficult time of the year for this to happen. Any time
is a difficult time when you face potential loss of your employment and your
job.
Madam Speaker, both the Minister of Industry, Energy
and Technology and the Premier have spoken to the president of United
Steelworkers local 9316. I have spoken to him, and to the people of the District
of Placentia - St. Mary's and those impacted by this devastating turn of events.
I say there is hope. There may be another investor.
Just a little over an hour ago CBC reported that a second company says it's
interested in the North Atlantic refinery. Origin International did say that it
is awaiting further clarity. North Atlantic Refining Limited says it's
considering its options. So it's not all doom and gloom, it's a difficult day,
it's a hard day, but we do have options.
To those personally impacted, I can assure you that you
are the priority for this government, for the Members of this House of Assembly;
you are the priority over politics. This is not over. It will take time. We are
in very difficult times. Being hasty is not the option here. Hold fast, there
are solutions.
Thank you, Madam Speaker.
SOME HON. MEMBERS:
Hear, hear!
MADAM SPEAKER:
Thank you.
The Chair recognizes the Member for Labrador West.
MR.
BROWN:
Thank you, Madam Speaker.
I won't take up all the House's time, but I do want to
speak to this because I lived this at one time. In February of 2014, working as
a contractor, I delivered, I think it was, $11,000 worth of products to Wabush
Mines that morning, and that evening they sent everybody home. I lived it. My
community lived it. It was hard to watch your best friends who you grew up with
walk out of there with their tool boxes in their hand. It's something I never in
my life want to see again. It absolutely devastated lives. People had to uproot.
Things were going great for a while, and then just like that the door closed
behind them.
My biggest worry of all this is the workers. These
people are the backbone of any business, any operation, any organization, any
group: human beings. These people made their livelihood based on the
opportunities of full-time employment at a unionized business with great
benefits and great opportunities for them and their families. These people spend
the majority of their money in our economy, our local economy, their region's
economy. We must do what we can to protect these workers, but also protect some
businesses and infrastructure around as well.
I know every now and then I get accused of: you're
anti-oil. Nowhere have I ever said I was anti-oil. I would like to see a
stronger economy built on embracing the environment and the importance of
protecting our environment, but I know for a fact, and my colleagues here know
for a fact – she's an economist who studied the oil industry – you just can't
turn the taps off tomorrow. You can't shut it all down tomorrow. That's
impractical, but we need to build an economy that is strong no matter what the
industry is. If it's oil, if it's avionics, if it's technology, mining, the
fishery, all these economies need to built on a stable ground that also protects
the people that actually operate them, because day-to-day people are the
backbone of everything in this province.
We need to make sure that everything we do and
everything we discuss and talk about, the number one person protected is the
employee on the floor because those individuals are the ones who will spend the
money in this province. They're the ones who will build our economy. They're the
ones that go out and buy the luxuries of life and support local businesses. A
majority of all the money spent by these large corporations' employees is spent
right here in this province, and that's what actually drives our economy. It's
the actual people that live here.
If there's nothing here that is a strong, stable
economy or a strong, stable business, those people go elsewhere. That's the big
crux of our problem in this province: out-migration, people leaving. That is
actually the real root of a lot of these problems: people leaving.
I can't get doctors in my district. We've tried. We've
offered them houses. We've offered them anything. They stay for a few weeks or
months and then they're out the door. The problem they always say is they don't
feel at home here. That's the thing, too. What do we do to draw people back?
I'm lucky enough; my new sessional assistant just came
back from BC. He didn't like it out there and wanted to come home. How do we get
more people like him to come back? We need people to come home. That's the
thing; we need strong, stable industries in this province that encourages
development and growth. Do you know what? All those people that left this
province have skill sets. They've gone to MUN or other universities, they have
great knowledge and insights, and we need to entice them to come back here.
That's the thing that we need to find, is to entice
individuals to come back here. Maybe we can entice the right people to come back
and maybe they can make Come By Chance a better refinery, a more economically
thing. But we need to entice people to come home and that is a real strategic
thing around here. That's where we need to build a plan that involves the
technology industry, the fishery – it's all connected together. That's
everything and the basis of it is good, stable economics and a good, stable base
of our province.
So if you know someone who is living elsewhere and
wants to come home, maybe they have a plan, maybe we should ask them: What would
it take for you to take your business or your knowledge or your skill set and
come back here? Because that's where we can find the key to what we're missing,
it's the people that we need to bring home.
If the campus was open and we weren't in COVID times
and you walk around the university and talk to people, some of them have a
pre-plan to leave, which is so unfortunate. What we have to do is: What will it
take for you to take that great skill that you learned, that great insight that
you have and translate it to one of our many industries in this province and try
to make a better tomorrow for us? Because that is what it is, it's the people on
the ground. They're the ones that know what it takes to keep things going.
They're great people and they got some great insights but we need to encourage
them to use them for our province's benefit; not Alberta's, not Ontario's, not
BC's, for us, for Labrador West. That's where it is.
I don't want to take anymore time from anyone. I know a
lot of other people in this House want to speak on some great issues here.
Thank you, Madam Speaker.
MADAM SPEAKER:
Thank you.
The hon. the Member for Harbour Main.
MS.
CONWAY OTTENHEIMER:
Thank you, Madam Speaker.
I need to highlight, first of all, the importance that
this devastating news has upon many of the workers in the District of Harbour
Main. We have a high percentage of workers that work in the refinery at Come By
Chance and I've heard from workers about their concerns. I'd like to share with
you and everyone some of the feelings and the anxieties that people are feeling.
There's a sense of discouragement. There's a sense of
fear about their future possibilities. I spoke this morning, at length, with a
long-time worker who had been in the oil and gas industry all his life and, in
particular, had worked at the Come By Chance refinery for a very long time; very
sad to hear the thoughts and the feelings of this person and he is only one of
many.
We've heard that there are 400 workers directly
impacted; another 100 contractors, indirect jobs. We also know that it will
affect the building trades workers as well who also rely on this refinery to get
a few weeks of work from time to time. The building trades will be impacted as
well.
Boilermakers, labourers, carpenters, millwrights, not
only them, but suppliers as well; businesses, companies who supply materials who
already have been hard hit as a result of the flattening, let's call it, of the
oil industry and now they've received another smack, if you will, and probably
are contemplating folding their businesses.
Madam Speaker, it is devastating news. I also would
like to share what my constituent, who's a worker, said as far as the fact that
there was no real knowing that this was coming. He expressed concerns about
that. He said he felt like his bags were thrown out into the street, into the
road after a lifetime of work.
How is it possible, Madam Speaker? This question has to
be asked. I know we want to work together and we will work together, but these
are legitimate questions that have to be asked. How is it that the government
did not see this coming? We've heard that they were watching closely and they're
going to continue to watch closely.
Now, were they watching closely? Were they watching the
dealings that were going on? Yes, I understand as the minister had addressed me,
as a lawyer, I am a lawyer and I clearly understand when there are business
transactions that go on. However, that does not take the government off the
hook, Madam Speaker.
Yes, we can blame it on COVID; we can blame it on the
global markets, on the oil price prices. We can say it's a business-to-business
transaction, but, surely, there is responsibility on our government. They have
to take some responsibility here. Only then, when that is acknowledged, can we
move forward together.
I question that and I think that is a legitimate
question. I see that they're shaking heads over there, but government has to
look at that issue. Government was involved; they talked about facilitating the
deal, and I'm hopeful that will happen. We were told that government will do
what they can to facilitate that deal, and they will see what we have the
ability to do.
We hope that will happen. We need to understand if
there were checks and balances in place, something went wrong. Hopefully, the
new interested purchaser, the buyer who has expressed an interest, will be
monitored closely by our government. That is their responsibility. Yes,
hopefully, this will pan out with Origin International and that they will be
successful in acquiring the North Atlantic refinery.
So, again, these are legitimate questions that we, as
the Official Opposition, have the right to ask of the government of the day.
These are decisions which affect so many people.
Finally, Madam Speaker, I'd like to say, we are so rich
in resources, in natural resources. We are one of the leading suppliers – Canada
is – of crude oil in the world. So we have an abundance of natural resource,
and, yes, we need to maximize our rich resources.
Recently, we were provided with information from
experts in the field in the oil and gas industry. I'll just quote a few facts
that are relevant for the people to know. Originally, it was thought that
Hibernia contained 520 million barrels of oil. The field is now expected to
produce 1,644 million barrels of oil, and 1,158 million barrels have been
produced to date. So almost 500 million barrels –
SOME HON. MEMBERS:
Oh,
oh!
MADAM SPEAKER:
Order, please!
MS.
CONWAY OTTENHEIMER:
– still to produce. We are rich in natural resources,
in oil.
Hebron, originally, was estimated to contain 556
million barrels of oil. It's now estimated at 707 million barrels. To date, it
has produced 100 million barrels of oil. So, again, we are rich in this
resource.
Terra Nova was originally estimated to contain 400
million barrels of recoverable oil. It's now estimated to contain 506 million
barrels, and 425 million barrels of oil have been produced. We still have so
much more potential here. We are rich.
White Rose; there are 404 million barrels of oil in the
West White Rose oil field; 251 million have been produced. Again, we have so
much potential here.
I'm continually asked the question by my constituents,
those oil and gas workers who say, why are we not maximizing these rich
resources that we have? We are so blessed to have this available to us, so
surely we can all work together to hopefully come to some solutions. We have to
recognize that government has responsibility to work within the system and try
to come to some plausible solutions here for the people of our province.
Thank you, Madam Speaker.
SOME HON. MEMBERS:
Hear, hear!
MADAM SPEAKER:
Order, please!
The hon. the Member for Lake Melville.
MR.
TRIMPER:
Thank you, Madam Speaker.
I believe the objective of this discussion, this debate
here today is to work together, to put the politics aside, to forget the
history, to try to see what solutions we could put on the floor. For the next
few minutes, Madam Speaker, that is what I'm going to attempt to do.
I'm going to look at it from a different perspective
for a change and I'm going to put the environmental lens on this. That may
surprise a few people, but you know what? As I heard my colleague for Labrador
West say a few minutes ago, there's no question that there's a transition that's
needed between the oil and gas economy that we've all come to rely on and where
we know we need to go in terms of climate change. It's one of the other key
pandemic world-threatening-type crises that we're facing.
A couple of thoughts I want to put on the floor. First
of all, I'm sure everybody in this House can remember where we were two weeks
tomorrow ago in terms of walking out in front of hundreds of very frustrated oil
and gas workers, helicopters, equipment and a sector that was screaming at us to
say: What can you do? We need your help; we need your attention. I have to say,
that wasn't lost on myself, it wasn't lost on this crowd on this side and I'm
sure it wasn't lost on anyone who stood in front of that group.
I also now want to go back to another thought on my
mind. I want to go back to June of 2016, when I was minister responsible for the
Office of Climate Change. It brought in the first legislation dealing with
greenhouses gas emissions. I can recall looking at my mandate letter from the
premier of the day when he said: I want you to introduce legislation dealing
with the reduction of greenhouse gas emissions and I want you to start with a
large industry of this province.
That, Madam Speaker, was an interesting challenge when
we have environmental, climate change objectives and priorities that we all know
are very important; yet, I still have a mandate letter to see what we can do to
convince industry to go there. Those first few months of tackling that, bringing
the bill in here on to the floor – it was Bill 34; I remember it very well. It
was my first bill. A very fascinating exercise, and to bring that even on to the
floor we needed the co-operation of all the large industry of the province.
Now, let me get to the topic of the day, which is the
Come By Chance oil refinery. At the time, it was owned by Silverpeak. NARL – as
we came to refer to it – was one of the key players and it has been one of our
top emitters of greenhouse gas emissions. I looked to them to say and see
whether or not we could get and seek their co-operation.
What I wanted to report here today to the House, and in
terms of putting contribution on the floor, is as soon as I heard this motion
here today I went to the Whip and I said I want to speak to this because I want
to put on the floor, in Hansard, a
testimonial as to the co-operation that this government, this province, has
received from this refinery and the owners of that refinery to date. It's bar
none. It is frankly an example, not just for our province but I believe the
country and across the world. In fact, I spoke at the co-operation of Silverpeak
and NARL and, frankly, other industry in our province in Mexico at a
Pan-American conference on climate change a couple of years ago.
Just a couple of little points I wanted to put out
there. I want to reference – he may be watching, perhaps he is, but I wanted to
say hello to a friend of mine that I know the Deputy Premier knows well, Mr.
Kaushik Amin. He's a partner at Silverpeak and a very surprising, interesting
individual. I'd invite you all to google this gentleman's name right now,
Kaushik Amin. He surprised me. Here's a guy who's a world player in many
investment companies. I thought I was going to have my typical environment
versus industry, environment versus the economy type of confrontation.
He presented me with a book. The book is called
Climate of Hope: How Cities, Businesses,
and Citizens can Save the Planet, and for the next two hours I listened to
him speak about his vision for how he as a world player on industrial
development and economic development and sustainable development can all
function together. A fascinating book; I'd invite you all to read it. There's a
lot of guidance in there. In terms of how this debate can function and looking
for solutions, I would suggest you can find solutions in a book like that.
Kaushik, I thank you for it. It's been a good guide for me.
At the time, Mr. Amin came to me and he said, we will
work with you. In fact, he said, we will set standards through which other
industries can try to follow. He has put his money where his mouth is. In terms
of looking at the quality and the value of this asset, I want this province to
realize that we don't just have an industrial facility that employs some 400
people, represents 5 per cent of our GDP, we actually have a facility that has
received significant overhaul and is one of the top facilities now in terms of
its reductions on greenhouse gas emissions and working towards issues around
climate change.
Here are a couple of numbers for you. I just went back
in my own logbooks. At the time – and I heard the Deputy Premier reference that
there's been some $400 million invested in that facility. At the time I had $200
million, of which $41 million they were spending on energy efficiency and
improved emissions intensity, and they had further plans in the works.
I stepped back from the Office of Climate Change in
late 2017, but I've certainly been keeping a close eye on this facility because
it's Canada's seventh largest refinery. By the way, it is our only export
facility that we have in the country. It has several very peculiar, very
interesting attractions to it that make it a very valuable asset. It's ranked
number three in the country in terms of its emissions intensity. That means in
terms of the emissions that come from the refinery and in terms of the number of
barrels of oil that it can actually process and go through, it is leading. It's
essentially one of our top ones.
There's an entity called Solomon. I remember Kaushik
telling me about, go look up Solomon and go look and see what they have to say
about us. So I did. Here's a third party group that looks at this refinery in
Come By Chance and it ranks some 130 North American refineries. That includes
United States, Mexico, Caribbean and Canada. This facility that we are here
debating today, that we are all very interested in, it is in the top 80 per
cent. It is one of the best in the world. It is essentially ranked as one of the
most highly competitive refineries in the world. That's what we're talking about
here today. That's why we have this emergency debate. That's why we need to
spend some attention to it.
I reached out to the Minister Responsible for the
Office of Climate Change, and I thank him and his deputy and the other staff,
because I wanted to – much like I did the other day when we talked about food
self-sufficiency, Minister –get an update. Just how is the refinery doing in
terms of the commitments and the progress and the plan they were on? I'm very
pleased to report to this House that this facility has been responding very well
to the challenge of the greenhouse gas emission reductions. They have submitted
every single report they have required under the act. Go take a look. And guess
what, last year – if you recall, the legislation was passed in 2016. It became
enacted soon after.
There was a two-year monitoring period through which we
were monitoring and then we put the targets on them. We asked each of these
industrial players in our province, this is a target you have to meet. Their
first target was in 2019. They had to meet a target of 6 per cent – check, they
did it. This is a result of the $41 million that they've invested, plus so much
more that's going on.
I understand there are two projects that the refinery
has right now under environmental assessment review that would provide an
upgrade to the crude unit that would enhance processing for light sweet crudes.
We talked so much about the fuel and its low carbon content that we have on our
offshore, these tremendous reserves. The second project is the construction and
operations of a delayed coker complex to further reduce sulphur dioxide and
other GHG emissions. So two important projects.
Again, as I think about people like Greta Thunberg, as
I think about the demonstrations, the Fridays For Future and so on, this is
exactly the kind of industrial player and facility that we all need, that the
whole world needs, to demonstrate how we can make this transition in a very
successful, aggressive and considerate fashion.
So, Madam Speaker, it was absolutely not a problem for
me at all to bring this to the floor. I want everybody to realize that it's not
a declining facility. It is one that has been continuously upgraded. It's been
continuously upgraded in a manner that meets new aspirations in terms of the
future for our children and targets on climate change.
Just on a personal note, I want to extend my own
thoughts to all those workers and I want to go back to standing on the steps
with so many people and what we all felt standing there. I've seen a few
protests in the last five years, so that was not unusual to me to feel that
emotion, but to see the province rally in such a way and to see the effects on
our economy and on society, we really do need to pay attention and, Madam
Speaker, we do need to come to this debate with solutions and suggestions as to
how we can make the future for the workers and for our next generations very
successful.
Thank you very much for your attention.
SOME HON. MEMBERS:
Hear, hear!
MADAM SPEAKER:
Order, please!
The hon. the Member for Mount Pearl - Southlands.
MR.
LANE:
Thank you, Madam Speaker.
I just wanted to take a few minutes, I guess, to add my
support. I know the Member for Humber - Bay of Islands supports this as well. He
may have a few words himself before we're done.
We've heard a lot of talk here today about the
importance of the oil refinery. We all understand the benefits it provides,
whether it be benefits to our Treasury in general; whether it be the direct or
the indirect jobs; the benefits to all the surrounding communities, for sure;
and, quite frankly, the benefits to our province as a whole.
One of the things I think that we have to always
recognize is that if one part of our province is benefiting, our entire province
is benefiting. I'm always glad to see positive things happening, whether it be
out on the West Coast, out in Stephenville area; whether it be out in Central
Newfoundland and Labrador; whether it be on the Burin Peninsula. Every time that
we can see a positive thing happening, jobs being created, money being invested,
it benefits us all.
I think we have a collective responsibility in this
House of Assembly, regardless of the particular district that we represent, to
be supportive of any opportunities and any kind of development in any part of
our province, because it benefits everybody in our province, including the
people who we represent in our particular districts. They may not always see
that, but that is reality nonetheless.
I do want to say that while it's great for us to take
this time this afternoon to have a discussion and to all lend our support to
this facility and, certainly, to the workers in particular, it is in itself a
symbolic gesture. I think it is important to send that message to the employees
and to the people, certainly to the communities that would be most directly
involved, that we all support finding a solution to this very troubling problem
that is upon us right now.
I think the symbolism of that is a good thing, but at
the end of the day we can all talk about the benefits of the refinery. I've seen
a little bit of politics creeping into it, which is unfortunate. I understand
the politics as much as anybody, more than some perhaps on all sides of this,
but the message we need to really be sending is that we're totally united and
there's nothing political at all going on here other than 40 elected individuals
who are concerned about their province and the people in our province,
regardless where they live, regardless what districts they live in.
There's not one Member in this House of Assembly, I'm
sure, that wants to see what's happening here right now, that wanted to see this
situation; there's nobody. I'm also pretty sure, I feel 100 per cent confident
in saying that I really believe the minister and the government – they never
asked for this. They never created this.
COVID-19 is something that's happening all throughout
the world. We know what's happened to the oil and gas industry because of the
world oil prices and the issues around Russia and Saudi Arabia and so on, that
have caused oil prices to come crashing down.
Nobody, and I don't care which government is in place,
what stripe they are, there's nobody – you can't hang that on anybody. That's
just a reality of the world in which we live at this particular time. With that
said, is it total doom and gloom? I don't think so. I'm hopeful things are going
to bounce back.
Does government have a role to play in this particular
case? Well, as the minister has indicated, you have two private entities,
basically, involved in this, but government can certainly have a role in trying
to facilitate a deal. Government, I think, can have – getting the players to the
table. Government can possibly, I'm sure, have a role perhaps if there's any red
tape or whatever that's creating any problems here, looking at some of the
regulations and government policies and things that could be preventing a deal
from happening. I'm sure government would be looking at those things.
Perhaps there's going to be a role. We've seen it in
this House of Assembly before where government has had to, whether it be provide
loans or other forms of financing or tangible support. We've seen that in the
past. We've seen it with the paper mills and we've seen it in other industries
in the past where that has had to happen.
I hear people sometimes talk about the fact, government
should not put any money into – if a business can't make it on its own, let it
fold.
That's a very simplistic view for an individual to
take. I understand why they take that view, to some degree, but you have to
realize, we're in a province here, there are only 500,000 people here. We're
spread out over a large geography. We are isolated from the Mainland. It's not
like we have millions of people and all kinds of businesses and opportunities
that you would have in some of the larger centres where a business can operate
or fold on its own.
A lot of times when you're talking about businesses
like this in our economy, which is very much dependent on resources and things
can happen totally out of the control of business, such as the price of oil, as
an example. Sometimes government does have to take a role in some of these
operations. Sometimes there has to be a direct capital investment. Sometimes
there has to be loans. Sometimes there has to be other things, as I said, that
the government can do in terms of regulation, or should I say, deregulation and
so on to make it work.
I'm sure the government is looking at all these things.
I would hope they are. I'm sure they are. Why wouldn't they? When you think
about it, what possible reason would any government have to want to see this
fail? It would make no sense. It would make no sense for the people of the
province. It would make no sense for the workers. It would make no sense for the
Treasury. It would make no sense, politically. It would make zero sense.
I'm sure that whatever can be done is being done. I'm
sure that it's all being worked on. I have confidence in that. I would add,
though, Mr. Speaker, that while we come here in the House of Assembly in the
spirit of co-operation to make this symbolic gesture to say that we're all
behind the workers – and that's an important message to send, as I said, and I
certainly commend the Official Opposition for initiating this today, and I give
them credit for doing that, and I thank them for doing that. But I think we need
to take it a step further than beyond the House of Assembly.
It's fine for us to sit here and all have a few words
about this and then come 5:30 we adjourn and that's the end of it. If we really
want to show a true spirit of co-operation and working together, then I would
certainly encourage – and I don't care if I'm part of this one, I really don't,
as an independent Member. But I would really love to see the Premier, the Leader
of the Official Opposition and the Leader of the NDP actually get together and
discuss with the minister what's being done, to have some input into what's
being done and to possibly come up with some solutions, and for them to meet
with the workers and the union and to meet with the mayors and the towns that
are affected, and so on, that the minister has mentioned. Do it jointly.
It's one thing to just make one thing here in the House
of Assembly, one symbolic gesture, but why not have some real, tangible
co-operation beyond just making a political statement in the House of Assembly.
Let's actually put partisan stripes aside and see if there's anything to be
done.
My colleague mentioned – and I was here at the time,
actually – the Corner Brook mill. I was here when my colleague was involved in
negotiations with the mill and, I think, it was Premier Marshall at the time, I
think, Tom Marshall, good man, and they did, they worked together. They met with
the union and with the mill and they were able to help broker a deal. I would
personally like to see that type of co-operation happen right now, beyond just
everybody saying a few words in the House of Assembly. I would like to see that
carry on and for all three parties to work together.
I'm certainly willing to be part of that as well, as
I'm sure my colleague would, but, at the end of the day, if the three parties
want to do their thing, this is bigger than anybody's egos or aspirations or
feelings about being included. It really is. This is too important to the people
of the province. If all three parties could work together, all the leaders, get
together and try to come up with a solution, I think we would be doing a good
thing for the people of Newfoundland and Labrador. Certainly, for the employees
at that facility who are really counting on the leaders in this province to get
together and to find a solution to this very disturbing problem, because their
livelihoods are depending on this and being able to support their families.
As has been said, not just the 400 workers who work
directly at that plant, but the 100 contractors and all the other businesses,
the spinoffs. There are so many spinoff businesses.
I have family members that are going to be impacted by
this who were supplying – one of the main things that keep that business afloat
is that they're over in Arnold's Cove and they're close to that facility and
they're always supplying stuff to that facility. If that shuts, that's going to
put them at very, very substantial risk that they could be next. There are all
kinds of businesses that are in that same boat.
This is bigger than anybody in this House of Assembly.
It's bigger than politics. We should all be working together. Again, I encourage
the three leaders now, after we're done, get together and try to see what you
can do, collectively, to put partisan stripes aside and let's get a deal so that
these workers have gainful employment.
Thank you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER (Reid):
The
hon. the Member for Terra Nova.
MR.
PARROTT:
Mr.
Speaker, normally, I say I'm honoured, privileged and happy to talk and
represent the people of my District of Terra Nova. There's no happiness here
today. I will say, I'm going to speak on behalf of the Member for Placentia West
- Bellevue, he has a touch of laryngitis and I know a lot of his people.
Full disclosure from 2011 to 2019, the company I ran
was the largest single subcontractor that the refinery has had for the last 20
years. I had, at times, 160 men and women working at the refinery, personally.
This affects not only my constituents, it affects my family, it affects my
friends, it affects my colleagues and it affects all of Newfoundland and
Labrador. I speak today, not only as the MHA for Terra Nova, but I speak as a
voice for the fine men and women that work at the refinery, staff, the members
of Local 9316 and all the businesses that are spinoffs that are in jeopardy
because of this. Make no mistake about it, they're in jeopardy.
The oil refinery – and it's been said here a few times
today – represents not just employees. It represents families; it's kids that
play hockey; it's the scouting movement; it's a big deal that these people
aren't going back to work.
Last night, I received multiple phone calls. I had a
voicemail on my phone 4 o'clock this morning. I talked to a grown man last night
at 11:30 who wept like a child; and there were no assurances to give him.
In all fairness, I've talked to the minister about this
several times and he's been full disclosure to me, and I really thought that
last week this deal was still on the tracks. I guess it came off pretty quick.
What this refinery means to the province is an
opportunity, not just to refine oil from other places, but some of our own. I
think we can't lose sight of that. It is, as one of the Members mentioned
earlier, a cornerstone of our oil industry and the loss of it would be
catastrophic to the oil industry.
People come here to explore and get oil out of the
ocean floor because they think that there may be an opportunity to refine it
here also. We have a great terminal next to the refinery in IMTT.
The minister always uses key phrases: What solutions do
you offer? Well, one of the solutions I would offer that could help, not only
the refinery, but our oil industry is for government to immediately start to
explore the possibility of an LNG transfer plant here in Newfoundland and
Labrador. We hear all the time that COVID is restricting us and we're not in a
place, and then you pick up a newspaper and you look at Nova Scotia who's moving
forward with a $10-billion project – not $10 million, $10 billion. We need to
find a way to move things forward and help these people. The only way to do that
is to explore options.
Jus today in the media, our own Premier was saying this
is the same situation faced all over Canada today. I have to tell you, I'm a
Canadian, I wore the uniform for Canada; I'm proud to be a Canadian, but I don't
really care what's going on in the rest of Canada today. What I care about is
what's happening here in this province. If the best we can offer people is it's
happening everywhere, we have some big, big problems.
We need to start looking for solutions and we need to
start investing in tomorrow today. I understand our financial situation. I
understand the situation going out of this, but if we don't invest during COVID,
when we come out of COVID we will be years behind industry in other provinces
and nobody is going to want to set up here – nobody.
The oil refinery right now has some issues and one of
the things – like I said earlier, the minister is always looking for solutions.
If you want to know how we can help a sale go forward, I'll offer some
solutions. The first thing is I think that we need to immediately find a way to
help the refinery prepare to idle and shut down for the winter in a means where
it can be opened up again in the spring, or find a way to open it immediately
and operate it until a sale happens. The latter being the preference.
I would assume everyone in the room would understand
that a share purchase of this refinery would be much better than an asset
purchase. The only way for a share purchase to go forward is if this refinery is
operational. If that means investment from government in order to help the
refinery succeed over the next five or six months in order to close a deal, then
I think it's something we ought to explore.
The other thing is I'm not for a second suggesting that
government purchase the refinery, but I am suggesting that we have a full
division in OilCo that could be looking for opportunities here. These
opportunities could present a path forward for the refinery and for the
province. We still import a lot of oil from away and we have a lot of oil that's
coming from offshore that we could be developing.
The next thing is there's a pipeline that should and
ought to have been built between the refinery and IMTT a long time ago. That
would make the refinery a far more viable place to operate. It would give us a
better market for the oil and the gas that comes in here and out of here, and it
would open up shipping lanes.
Two and a half weeks ago we had ships out in Placentia
Bay that couldn't get in full of jet fuel. I'm quite certain there are Members
of government that understand that we were critically close to running out of
jet fuel here in Newfoundland 2½ weeks ago because ships couldn't get in for
wind.
If anybody here in this room has any illusions and they
think for a second that we can operate this Island with only importation of oil
and propane and diesel and gasoline, we have a hard time ahead of us. The
minister alluded to it earlier; at the end of the day it's going to cost us
more. None of us want to hear higher costs, but it's not going to cost us more
if we can't get it.
I can tell you, there are seniors, there are businesses
and there are just regular men and women who do heat their homes and run their
homes with propane. Just imagine running out of propane, not being able to cook,
not being able to heat your house. It's a reality if this refinery isn't
operational.
We look for solutions every day and we're looking to
pass blame. I will say that I think people were legitimately caught off guard
here, but I also think we need to be more involved in what happens going
forward. We need to offer any kind of assistance we can, be it monetary or in
tax breaks or in electricity breaks or other things in order to make it succeed.
The bottom line is we can't control what's happening
right now. I've heard that so many times from government: We can't control
what's happening – we can't control what's happening. Here's what we can do: We
can start planning and we can start investing in tomorrow. Do you know what? It
isn't happening. There aren't solutions. There isn't a plan, and we need to do
it.
This refinery is our first opportunity to embrace a
situation, collectively, and try and find a way through it, because 500 people
sounds like a big number, but guess what? It's a lot more than 500. It's 2,000,
and then it's a lot more than 2,000 because now you have 2,000 people unemployed
and you can probably take that and magnify it by an order of three because you
have children and wives involved. This affects thousands and thousands of
Newfoundlanders and Labradorians. You know what? They don't even want better,
they deserve better and we should be giving them better.
The Minister of Finance said a couple of times, and
it's a phrase that I've used too, and it's two things. One is that our people
are our greatest asset and made reference to the refinery and what a great asset
it is. Well, I'll tell you now, our refinery is only a great asset if it's
operational. Our people are only a great asset if they're working. We need to
find a way to get this refinery operational and we need to find a way to get our
people back to work.
It's easy to assume there may be someone else on the
horizon, but we need to consider that there may not be. One of the options we
have to consider is assisting Silverpeak in operating this refinery as it stands
right now. If it means 500 people returning to work, I think we gain more than
we lose.
Mr. Speaker, at the end of the day, I look at Placentia
West - Bellevue; I look at CBS; I look at Placenta - St. Mary's; I look at the
Terra Nova District; I look at the District of Bonavista, and what you're really
considering is all of Eastern Newfoundland is greatly affected by this, but it's
more than all of Eastern Newfoundland. It's all of Newfoundland. It's everybody
in Newfoundland.
As the Member for Harbour Main said earlier, the
building trades work in there for shutdowns on a very frequent basis. When
they're in there, there are 300 to 400 men and women in there that don't work
directly with the refinery. That happens annually, every year. That is not going
to happen.
Just one more thing: The Member for Labrador West
alluded earlier that he lived through this in 2014 with Wabush Mines. Well, I'll
tell you, I don't think there are many people in this room who haven't lived
through this before, either with the fishery, with the shutdown of Wabush Mines
in '86; with Corner Brook, with the shutdown of Wabush Mines again in 2014, with
the refinery –
AN
HON. MEMBER:
(Inaudible.)
MR.
PARROTT:
– the moratorium, yes; Abitibi. There you go. It goes on and on and one. This
list goes on and government has always found a way to help. I think now is the
time.
I'll say to the minister, I bring a lot of experience
with the refinery. I actually know the proponents that own the refinery. I've
met them several times. I believe that there is a path forward and I think it
can be found collectively. I don't think politics needs to be at play here. What
I think we need to do is come together.
I'll also say we have to stop worrying about what the
rest of Canada is doing and start worrying about what Newfoundland is doing. I'm
sick and tired of hearing, that's what the rest of Canada is doing. It's a
global pandemic. Pick up the newspaper and read. Nova Scotia is investing in
LNG; the rest of Canada is trying to find a way forward. We're sitting back
watching our industry disappear. It's not acceptable.
On that note, Mr. Speaker, I'd really like to tell all
of the people that work at the refinery or are affected by this that my thoughts
and prayers are with them. I certainly hope for a brighter tomorrow. My office
is always available and I'm always available to talk to people. If there's
anything I can do for them, I will. I hope we find the path forward.
Thank you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Minister of Education.
MR.
OSBORNE:
Thank you, Mr. Speaker.
I'm literally only going to take about five minutes to
speak here. I think it's important and I think this debate today – or
discussion, because it's not really a debate. We all agree, so it's a
discussion. I think it's important for a variety of reasons. I'm hoping that
anybody who looks at North Atlantic refinery will read some of what's said here
today and that's the basis in which I want to make some remarks.
I remember when the refinery was commissioned in 1973.
In fact, I have a bloody big medallion commemorating the opening of the
refinery. My parents were invited out. They put on a big spread with lobster and
everything else. They brought back this medallion, a keepsake. But the most
recent operator, Silverpeak, was the most efficient operator of that refinery.
They were profitable and the only operator, really, of that refinery that made
it profitable. It was profitable because they put hundreds of millions of
dollars investment into the refinery to make it more efficient.
I met the owners when I was minister of Finance on many
occasions, as did the current Minister of Finance, who was then the minister of
Natural Resources. I know that the new Minister of natural resources will have
an opportunity and probably had an opportunity to meet the current owner. He
took a great deal of pride in the fact that he had made that refinery efficient
and profitable.
The owner, or one of the owners, certainly loved this
province and the employees at the North Atlantic refinery; he was committed to
the refinery. Really, this is very COVID related. He had invested almost 90 per
cent of the revenue from that refinery back into the refinery. It, perhaps, made
him vulnerable because when COVID happened and the oil war happened, the
refinery, like many refineries globally, couldn't operate profitably with the
global price war and the prices of oil. They temporarily shut it down, losing
money monthly because it was shut down, but it made them vulnerable because they
had reinvested so much back into the refinery.
Anybody looking at the refinery is getting a refinery
that's been retooled, that's efficient. It's producing 135 barrels of oil a day.
That's the capacity out there. Many people have talked about the fact that it's
about 400 jobs; there's about $85 million annually in payroll at that refinery.
It is significant. The average wage out there is about $115,000, so it's a
significant contributor to the local economy out there. The reality is the
workers out there helped to make the refinery what it was under the current
operator. The workers are a solid workforce and had obviously, as well, taken
pride in the operation of the refinery.
The refinery puts about $300 million into the
provincial economy annually. It's 5 per cent of the provincial GDP. It's
hundreds of millions, as I said, invested into upgrading the refinery since 2014
and making it more efficient. The refinery itself puts about $1.5 billion in
economic impact for the province with about 5,600 induced jobs, 900 supply chain
jobs from that refinery. It is significant. I know one of the previous speakers
talked about a company that evaluates refineries globally, and this refinery is
one of the top-ranked refineries. It's certainly in the top half of all global
refineries as far as its economical production.
One of the things to keep in mind is 60 per cent of all
fuel and home heating supply for this province comes from the North Atlantic
refinery. So anybody looking at the refinery – I mean, they've got a set market;
it's produced here; it's sold here. Sixty per cent of our provincial supply of
fuel and home heating comes from that refinery. A hundred per cent of the jet
fuel in the province comes from that refinery. It is fuel security for the
province so it's obviously important to government.
Some of what was going to happen at the refinery – and
I won't go into it because I know that it's probably proprietary in nature – but
some of the additional investments that the current operator was going to make
at that refinery. The reality is for the last three, four or five years that
refinery operated as a profitable entity. Obviously, the impact that the current
owner had on that and the efficiencies out there were working.
Unfortunately for the current operator, because of
COVID and the global oil war, it became very difficult for them. But whoever is
looking at that refinery is picking up a refinery that is running well, is
profitable, is efficient; it is a good operation with a solid workforce.
Mr. Speaker, government and ministers are not always at
a liberty to talk about what they're doing in a situation like this because it
is proprietary and it does impact not only the current owner but potential
future owners. I can tell you, rest assured, to Members of this Legislature, to
the people of Newfoundland and Labrador, that this is something that government
is working on.
Thank you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Grand Falls-Windsor - Buchans.
MR.
TIBBS:
Thank you, Mr. Speaker.
I won't take much time because I know everybody wants a
little chance to speak here.
We're talking today about the numbers – millions of
dollars, thousands of jobs and whatnot – and I just wanted to take a second and
let everybody know what that looks like on the surface, as we go a little bit
deeper here.
There are going to be people over the next couple of
weeks here have to look at their children, whether it be mom or dad, and tell
them that they can't join hockey. After playing with their friends for six or
seven or eight years, they're going to be told that they can't do that anymore.
It's a simple thing. A registration and some hockey gear, it should be simple,
but the mental wellness that comes with that or the private mental health, you
feel like a failure at that point. You do. There are going to be people not make
mortgage payments, food. You hear it all the time. It's very sad to look at and
it's nobody's fault, of course.
I listened to the Minister of Energy and he cares; of
course he cares. We all care in here. I had a great conversation with him a
couple of weeks ago, actually. If I could just pass along a word of advice –
I'll give you my story first. In 2016, I lost my job drilling and I came back
and tried to pick up some odd jobs and stuff in the oil and gas industry. Just
to, again, put a face to it, my youngest son Xander broke his seeing eyeglasses.
I didn't have $300 for a new pair. I had to Gorilla Glue them back together and
send him to school like that. I'll never forget how that made me feel. This is
how people are going to feel coming up now over the next week, month. Then we
get to that really, really, really scary word called Christmas.
Again, we're trying to find the best solution here. I
heard earlier on the Minister of Energy – I'm sure he's trying to do the best
job possible – talk about we have to keep decorum and keep calm and whatnot. If
I could offer some advice from a dad who's gone through it all before and is
looking to all of us for some solution, I'd personally, with all due respect,
disagree. I think that we're not showing enough emotion when it comes to dealing
with the federal government, for instance.
June 18, 2020, from Burnaby, BC, to Saint John, New
Brunswick, down through the Panama Canal, a one-month trip is how long it took
an oil tanker to get there because this federal government failed to get a
pipeline across this country. You go out West, it's absolutely decimated – 17
years I spent there – and I mean decimated. You can tell by the wave of blue
that came across there, they're upset, they're angry, they're mad. They have
nothing left out there. There is nothing to look forward to. They're trying to
pick themselves up now because they're a great bunch, too.
All I wanted to do was just take a minute and put a
face to it because, like I say, something as simple as hockey registration, it's
going to be a sad, sad day when you look at your child, as a dad or mom, and
say: I'm so, so sorry, I don't know how to tell you this but you can't join your
friends this year after being with them for six, seven, eight or 10 years.
You'll feel like an absolute failure. I just want those people to know that
you're not a failure, by no means, and we will do our best to try and help you.
It takes a lot out of you.
One more minute on mental health; I suggest we all keep
an eye on it because the mental health pandemic is going to grow here in the
province and it's going to be worse than COVID. I guarantee it. It's going to
claim way more lives. It's going to claim way more families. So whatever we have
to do to work together to come up with a Plan B. Maybe we should have seen this
coming possibly. I don't know, but I'm sure we all have to work together and put
whatever assets or effort into getting these people back on track. Like I say,
it's thousands of families and it's sad to see. We learn from it, as well, as we
move forward and that's something we have to do.
If I have one message for you across the way, if I have
a message for us, it's get more emotional. If you have to get angry, get angry,
because we are in the fight of our lives right now. Those people are fighting
for their lives. Not just a job, but it's their actual lives. If that takes you
guys, us guys getting angry and emotional, by God that's exactly what we have to
do and that's what the people of the province want. So I suggest we pick up our
socks. We're going to be here for the long haul and take on what we have to take
on.
Thank you very much, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
The
hon. the Member for Humber - Bay of Islands.
MR.
JOYCE:
Thank you, Mr. Speaker.
I'll only spend a few minutes. I agree with the Member
for Grand Falls-Windsor, because I know we were chatting before about your
situation, and it's very passionate and it's very real. It's very real to a lot
of people.
I'm just going back as a person who has been around a
while, and some people may say too long, but I go back to the cod moratorium. I
was involved then with Clyde Wells. That was devastating to the Province of
Newfoundland and Labrador and they all worked together. I remember the late John
Crosbie, what a great man. I remember when he and Clyde Wells were sitting down,
how can we get over this pandemic?
One of the things they worked on, both the federal
government and Clyde Wells as the provincial premier, was to build a platform
for Hibernia. That created a lot of jobs. It was a concrete platform. A lot of
people said in the long run you would lose royalties, but in the short term you
would gain a lot of people, it would keep them in the Province of Newfoundland
and Labrador for the short term. That's the kind of co-operation we need here in
this House. I know sometimes it creeps in, because I understand the emotion. I
understand the government aspect of it also.
I go back again to Corner Brook Pulp and Paper. I
actually was one of the ones that got laid off back in 1980 when it was shut
down. I had to go to university. At the university, when we were all there,
there was not a lot to eat. I had a dime. I was too scared to spend it because I
may have to call home. So we all know about the emotions. We all know about it,
and it's tough. It's tough on everybody. It's absolutely tough.
The Member for Terra Nova, you must have to go home and
every person you see, that's going through, you must want to just to take them
and hug them and say we're going to work on it. It has to be tough. You're a
person, you know these people.
I look at the Corner Brook Pulp and Paper mill; I'm
going back to probably 2011, 2012 when they were going to shut down because of
the pensions. I remember, and I have to give him credit, it was Jerome Kennedy,
he was the minister at the time. I remember myself and former Premier Dwight
Ball going over and sitting down: What can we do? He gave us all a little duty.
My duty at the time was to be the liaison with the unions. We shook hands and we
said, okay, we'll all work together. At no time would we ever speak in public.
We used to ask a question on behalf of the workers and we used to give the
premier or the minister at the time the question. Just to say, here's a question
coming, get an update. It worked well. It all worked well.
I agree with some of the suggestions here that somehow
if we need to go a bit further to get some people from the Opposition and the
NDP. I also would include the Member for Terra Nova and the Members from other
areas that are really with a lot workers to be involved with the confidence that
everything we work on they would be a part of it. If it ever comes down to that
point where we need it.
Right now, Mr. Speaker, I have to say – and I know the
minister of development is there now listening and he's listening quite
attentively. I have confidence in that man. I have confidence in him. There's
one thing I can assure you – I can assure you one thing, he will be honest. He
will be upfront. He will be honest. That's what we need here. We need a minister
who's going to take the lead from the government, who's going to say the way it
is, good, bad or indifferent.
Let all of us be honest with each other on this here.
This is too big to play politics with. We worked through it before. I go back
with the Corner Brook Pulp and Paper mill on several occasions. I know there
were a few other issues that we all worked on – Opposition. It has worked in the
past. What we need – and I said it earlier, Mr. Speaker, we need to park our
colours outside the room, all of us. We need to do it. We had a lot of
catastrophes over the history of Newfoundland and Labrador and we're faced with
another one.
I agree with the Member for Grand Falls-Windsor when he
said there's a personal toll on this. As a former councillor, I understand what
you're talking about. It's real, and the stress and the mental anguish on it. My
advice to the government, as someone who has been through a lot of this before,
is to be diligent on the work that you're doing with it. It's very early. Be
open with the people that you're going to be dealing with in the Opposition and
the Third Party.
I'll say to the minister, this is a role now that
you're in that happened in the last little while, but I have confidence in the
minister that whatever can be done will be done. It's a situation that I think
we all have to come together and we all have to find some way to have our own
input, not for the betterment of our parties but for the betterment of the
people of Newfoundland and Labrador and, down to a more finer point, better for
the people who are going to be suffering because of this.
I just want to offer my support to everybody, to all
the families and to all the Members who are affected because there's going to a
lot of stress on the Members that are directly affected by the workers. I can
assure you, you're going to be affected also when you get the calls and you're
going to feel a part of frustration where you want to do so much and there's
only so much you can do until we work this out.
Again, to the government, I feel confident with the
minister at the helm that this will work out somehow in a positive way. If
there's anything I can do – and I'm speaking on behalf of the Member for Mount
Pearl - Southlands who's been around for a long while also, count on us for any
advice or anything that you need done.
This is one of the times in history for us, not just
for the province – and we all talk about the money it's bringing in, that's a
big part of it, but for the personal toll on people in Newfoundland and
Labrador. This is a point where 40 of us have to come together and work together
for the betterment of the people of Newfoundland and Labrador, so the kids that
the Member for Grand Falls-Windsor was talking about can go to hockey.
Thank you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR.
SPEAKER:
Seeing no further speakers, I'm going to adjourn the House until tomorrow at 10
a.m.
On motion, the House at its rising adjourned until
tomorrow, Wednesday, at 10 a.m.