April
6, 2017
HOUSE OF ASSEMBLY PROCEEDINGS
Vol. XLVIII No. 7
The
House met at 2 p.m.
MR. SPEAKER (Osborne):
Order, please!
Admit
strangers.
Please
be seated.
The hon.
the Minister of Finance and President of Treasury Board.
SOME HON. MEMBERS:
Hear, hear!
MS. C. BENNETT:
Mr. Speaker, I move, seconded
by the Premier, that this House approves in general the budgetary policy of the
government.
MR. SPEAKER:
The motion is that the House
approve in general the budgetary policy of government.
The hon.
the Minister of Finance and President of Treasury Board.
MS. C. BENNETT:
Thank you, Mr. Speaker.
Mr.
Speaker, it is a pleasure to rise in this Honourable House today to deliver a
budget that is fair and balanced and continues our government on a path to
realizing our potential and returning our province to surplus by 2022-23.
Budget
2017 continues our government's commitment to strong fiscal management and
builds on the principles outlined in The Way Forward, which is our vision for
sustainability and growth.
Mr.
Speaker, in the wake of the serious fiscal situation facing Newfoundland and
Labrador, we have taken a smart and focused approach. We continue to take an
evidence-based approach to how projects, as well as programs and services are
supported. At every opportunity we need to perform due diligence and achieve the
best possible outcomes. The measures we are taking will benefit future
generations – our actions today will help realize our long-term potential.
The
magnitude of the fiscal challenges that we inherited cannot be understated. The
easy solution would to have been to ignore the situation and pass the problem on
to future generations. Instead, we chose to make some very difficult and
responsible decisions for the long-term benefit of Newfoundland and Labrador.
In last
year's budget, with only four months in office, we knew that unless we increased
revenue, we could not pay for basic programs and services. Without the measures
taken our province would have faced serious challenges with rating agencies and
banks. Some believe it could have even led to bankruptcy. Our government made
hard choices and asked taxpayers to dig deep into their pockets so we could
close the gap between our revenues and our costs. We are on a path to gain
control of our finances and strike the balance between better spending controls
and valuable investments in communities, people and the economy.
Mr.
Speaker, Budget 2017 reflects progress. It reflects a methodical and responsible
approach to more effectively managing the delivery of public services and our
fiscal situation. We will continue the work that will reshape the delivery of
services in Newfoundland and Labrador. At every opportunity we will work to
achieve the best possible outcomes.
Mr.
Speaker, we are thankful to the women and men in this province who challenge and
remind us daily that we must do our best because the province deserves no less.
SOME HON. MEMBERS:
Hear, hear!
MS. C. BENNETT:
Aware of the challenges that
lay before us, and the rightful expectations of residents, I will now outline
our fiscal environment and continued progress.
Fiscal Review – 2016-17
In
Budget 2016 we projected a deficit of $1.83 billion. Over the course of the past
twelve months expenditures have been reduced and revenues have improved. This
has led to a revised deficit of $1.1 billion.
Fiscal Forecast
Mr.
Speaker, in last year's budget our government outlined a seven-year plan to
return this province to surplus. Today I am happy to announce that we are
currently ahead of our forecasting in terms of deficit projections and we are on
track to return to surplus in 2022-23.
SOME HON. MEMBERS:
Hear, hear!
MS. C. BENNETT:
Before we get into the
details of our forecasting, it is important to understand some of the underlying
economic assumptions that have shaped our thinking for Budget 2017.
As you
know, Mr. Speaker, following years of continued expansion, the Newfoundland and
Labrador economy has been impacted by several factors such as the transition of
several major projects from the development to production stages combined with
an overall decrease in commodity prices. That being said, there are also several
emerging developments that hold promise for Newfoundland and Labrador. This is
highlighted by the first oil being expected from the Hebron field later this
year, along with increases in production levels in the province in 2018, and for
several years to follow.
We are
optimistic about the future of our offshore oil industry.
We
believe that Hebron will be one of a number of future developments in our
offshore. Through the work of the Oil and Gas Industry Development Council, we
will also position our province as a preferred location for development. This
brief is supported by the past three years of offshore licence auctions, as well
as exploration and development.
While
challenges are being faced in the fishing industry, the seafood sector continues
to be a significant contributor to our province, particularly in rural areas. In
2016, seafood production value reached a high of $1.4 billion and directly
employed over 17,000 people. Significant opportunities exist in the aquaculture
industry, and we will double production capacity while expanding into a new
region of the province, Mr. Speaker.
Growth
and development is not only found on the sea, but also on land.
Muskrat
Falls is generating benefits for workers and businesses by contributing
approximately $12 million per week to the provincial economy.
Mining
continues to be an important part of the economy, with 2017 bringing increased
construction activity of the underground mine at Voisey's Bay, the completion of
Canada Fluorspar's mine is St. Lawrence, and significant output increases from
the Long Harbour Nickel Facility.
Lumber
production is expected to increase to approximately 83 million board feet, along
with increases to the volume and value of newsprint produced. Our forestry
sector continues to find its footing in a competitive global market and our
government will continue to support this important part of our economy.
The
provincial agri-foods sector is a diverse and growing component of our economy.
Farm receipts are expected to grow across all sectors of the agriculture
industry in 2017.
Mr.
Speaker, the growth of our tourism industry is particularly exciting as it is
generating economic wealth in all regions of the province. This has been enabled
by improvements in transportation infrastructure, capacity and tourism
marketing.
Nalcor/Muskrat Falls
Mr.
Speaker, since forming government, we have taken steps to improve the governance
of Nalcor Energy. Under their new leadership, performance of key projects has
improved – specifically the Muskrat Falls project. In Budget 2017, the
Provincial Government is making an equity investment of $485.4 million in Nalcor
Energy, which is a reduction of more than $800 million from last year.
Our
government in collaboration with Nalcor committed to controlling costs and
ensuring all necessary steps are taken to identify and mitigate any remaining
engineering and construction risks as Muskrat Falls proceeds.
Mr.
Speaker, our vision for the province does not include the doubling of
electricity rates. It is not acceptable for residents to pay excessive
electricity rates.
Future
electricity rate management is a priority for our government. Nalcor has been
directed and committed to sourcing income of $210 million to lower electricity
rates starting in 2020-21, with this preliminary rate reserve growing to $245
million in the following fiscal years. We are committed to ensuring that
electricity rates are competitive and will undertake work to further define
activities to lower power rates and arrange the dollars required.
Since
coming into office, our government has also been working with our federal
colleagues to secure a commitment of additional load guarantee support for
Muskrat Falls. As a result of these efforts, we secured a commitment of support
of up to $2.9 billion.
Price Assumptions
Mr.
Speaker, with all these factors in mind, let us turn our attention to the price
of a barrel of oil and the US-Canada exchange rate.
In
Budget 2017, we are forecasting oil at $56 USD per barrel. This is a prudent
estimate, based on current forecasts, but we know too well the volatility of
oil, so we are estimating cautiously.
Budget
2017 also forecasts the US-Canada exchange rate to be 75 cents. This estimate is
based on the average of eight forecasts and is, again, a prudent estimate based
on best information available.
The full
details of these assumptions will be able to be found on the Department of
Finance's website.
Revenue
Mr.
Speaker, I am happy to confirm to the people of this province that there are no
new taxes or fee increases in Budget 2017.
SOME HON. MEMBERS:
Hear, hear!
MS. C. BENNETT:
Mr. Speaker, our government
is responsive to the needs of Newfoundlanders and Labradorians. In 2017
residents will benefit from two reductions to the Temporary Gas Tax. Beginning
on June 1, we will reduce the gas tax by 8.5 cents per litre; on December 1,
2017, we will reduce it further by four cents per litre, for a total reduction
of 12.5 cents per litre. We will review the remaining four cents as part of the
2017 fall fiscal update.
As
communicated in last year's budget, tax increases must be balanced with tax
competiveness. We will initiate a comprehensive independent review of the tax
system this fiscal year, which will be completed within our current mandate.
Our
province continues to lead Canada in terms of revenue generation on a per capita
basis.
Expenses
Mr.
Speaker, we have been clear that our province has a spending problem. On
countless measures, our province has led Canada in expenditure per capita,
without the necessary outcomes to demonstrate value for money.
Launched
last year, The Way Forward has
provided our departments and agencies with a guiding document to review
expenditures and prioritize investments. Two key elements are important in the
short-term of this fiscal year, zero-based budgeting, and the implementation of
a more efficient and balanced management structure.
As we
proceed, it is important to manage government benefits and salaries as they are
a significant expenditure of the Provincial Government totaling $3.3 billion.
In
recognition of our challenging fiscal situation, our government will propose
legislative changes to implement a wage freeze for management and all non-union
employees for the current fiscal year. This includes core government and
agencies, boards and commissions.
Over the
past year, our government, through careful planning and smart decision-making,
has reduced expenditures by $283 million as a result of zero-based budgeting,
changes to the management structure, savings to agencies, boards and
commissions, annualized savings, as well as actuary and accrual adjustments.
These are responsible choices for our government to make, Mr. Speaker.
The
projected annual deficit for Budget 2017 is $778 million, which is below our
targeted deficit of $800 million.
SOME HON. MEMBERS:
Hear, hear!
MS. C. BENNETT:
Mr. Speaker, when our
government took office, the previous administration had a borrowing requirement
of $2.4 billion. That was financed through $400 million in bonds, with the
balance funded through 91 day T-Bills.
For
Budget 2017, we have reduced our borrowing by $2 billion, down to $400 million.
SOME HON. MEMBERS:
Hear, hear!
MS. C. BENNETT:
This marks a significant
improvement in stabilizing the fiscal situation.
Investing in Priority Areas
Mr.
Speaker, the job of government is to govern and the fiscal crisis is not, nor
should it be our sole focus. We have a job to do, and that job extends beyond
the balance sheet.
Before
we finalized this budget, we took the time to properly consult with
stakeholders. While all the input of all groups was considered, in particular I
would like to thank the Women's Policy Office for the important role they played
in working with departments to ensure that the perspectives of women were
considered. We must recognize when inherent inequality exists within the
province, and take positive action to implement measures directly aimed to
address the inequalities and improve the lives of those who are impacted.
Our
government takes great pride in the announcements we have made today with
respect to expenditures that support communities and individuals in Newfoundland
and Labrador.
Education and Skills
Development
Mr.
Speaker, our government has prioritized the education of children and youth and
the creation of a skilled workforce as being essential to the economic growth
and sustainability of our province. We also appreciate that learning is
life-long, starting in the early years of a child's life. In this year's budget
we are making smart investments that will bring long-term benefits to all
regions of this province.
Today I
am proud to announce $3.3 million in annual increases to support early childhood
educators and families.
SOME HON. MEMBERS:
Hear, hear!
MS. C. BENNETT:
We are adding $2 million to
the Child Care Subsidy program to reduce daycare costs for low and middle income
families. We are also increasing the Early Learning and Child Care Supplement by
$1.3 million, and providing early childhood educators with an increase in the
supplement of $1 per hour.
Budget
2017 continues our commitment to full day kindergarten with an allocation of
over $13 million to continue this program.
Mr.
Speaker, this government remains committed to the principles of inclusive
education, of promoting the right of all individuals to attend school with their
peers and to receive appropriate and quality programming. Accordingly, we are
allocating approximately $120 million for inclusive education, including an
additional $500,000 to increase student assistant hours.
The
Premier's Task Force on Improving Educational Outcomes is completing their
important work and will be providing recommendations to improve our education
system. Their work is supported by a $100,000 investment.
Mr.
Speaker, our government appreciates the importance of investments in educational
infrastructure as it contributes to a modern learning environment. This year,
$53.8 million has been allocated for new school construction, extensions,
renovations, and priority repairs and maintenance for K-12 schools.
We are
restoring the $652,500 operating grant which will be added to the $10.7 million
of funding provided to the Provincial Information and Library Resources Board,
Mr. Speaker. This grant will allow time for the independent review of the
provincial library system to be completed, and for its recommendations to be
considered by both the board and government.
We
recognize that for many individuals, a post-secondary program of study is
required for the labour market. Our government continues to provide significant
support for accessible and affordable public post-secondary education.
Memorial
University is a cornerstone of education and skills development. It is a driver
for economic activity and for youth to prepare themselves to lead our
communities and our business sectors.
This
year, we are providing over $316 million to Memorial University. This represents
the highest public investment as a percentage of a university's general
operating revenues of any university in Canada.
In
addition, over $89 million is being provided to the College of the North
Atlantic and its 17 campuses so they can continue their important work.
Our
government is committed to maintaining the existing tuition freeze at Memorial
University and the College of the North Atlantic.
Through
changes to the Student Loan Program, we are now able to maximize access to the
federal portion of the loans before any provincial contribution. This
federal-first student loan policy provides the same overall funding to students,
and provides the province with annual cash savings of $12.6 million.
Budget
2017 also provides funding for many programs and services to maintain a skilled
workforce and to prepare Newfoundlanders and Labradorians to meet emerging
labour demands.
Safe and Sustainable
Communities
Mr.
Speaker, safe communities provide individuals with peace of mind knowing that
they, and their families, are relatively safe from harm. A recent decision from
the Supreme Court of Canada, known widely as the Jordan decision, has resulted
in unprecedented challenges to our justice system; but our government is
committed to meeting these challenges head on.
In
Budget 2017, we are investing over $2 million in a number of justice and public
safety initiatives, including planning for a new court complex in St. John's,
measures to avoid unreasonable delays in trials and actions to address the
increasing demands on the Supreme Court – Family Division. Furthermore, there
will be renovations to the Supreme Court in St. John's and funding for planning
to replace Her Majesty's Penitentiary.
In an
effort to divert non-violent offenders from custodial sentences, we will
determine the feasibility of a drug treatment court. This program would involve
specialized court monitored treatment and community supports for individuals who
commit non-violent offences caused by drug addiction.
This
province, by utilizing available federal funding, is committing $250,000 to
establish a Sexual Assault Response Pilot Program. The program would provide
victims of sexual assault with an independent legal advisor in order to increase
their understanding of the court process.
Mr.
Speaker, we are a province that has a deep culture and economic connection to
the ocean. It has sustained our coastal communities for generations and been the
livelihood of many.
Our
government is committed to an inquiry into the search and rescue operations of
our province to ensure that we are supporting the safety of our people.
As part
of The Way Forward, we are committed to utilizing all available leveraged
funding. That is why our government committed $43.5 million towards
infrastructure to leverage $70.6 million in federal contributions through the
Clean Water and Wastewater Fund.
We are
also making a provincial commitment of $35 million in project approvals over the
next two years to leverage $25 million in federal funding through the Small
Communities Fund of the New Building Canada Fund. We have also committed $15
million of provincial funds to leverage federal funds for National and Regional
Projects of the Provincial-Territorial Infrastructure Component of the New
Building Canada Fund.
Mr.
Speaker, municipalities in Newfoundland and Labrador need help to lay the
foundation for their future, have access to the resources they need to operate
effectively, and have access to funding to assist their residents during
unanticipated crises. Budget 2017
helps municipalities across all fronts.
As noted
in March by the Minister of Municipal Affairs and Environment, we are committed
to over $100 million in multi-year capital works and municipal capital works
projects. Beyond that, we are providing communities with long-term planning
windows to enable them to better access provincial and federal funding.
Our new
infrastructure program will provide residents of this province with improved
access to high quality water, better wastewater treatment, and enhanced disaster
mitigation and incentivizes communities to collaborate regionally to share
infrastructure and services.
Mr.
Speaker, we are also committing $22 million to keep municipal operating grants
at their current levels and increasing the municipal portion of the provincial
gas tax revenue. The municipal share of gas tax revenue will increase by
one-third, bringing the total commitment to $7.1 million.
We are
also providing $2 million to the Special Assistance Grant program to assist
communities with emergency and small capital works needs. Finally, we are
committing $1.88 million for municipalities to obtain new firefighting vehicles
and equipment. This is a continuation of the value we have placed on
firefighters and builds on our new presumptive cancer legislation.
Healthy Living
Mr.
Speaker, through an overall commitment of more than $4 billion, Budget 2017
demonstrates our government's support of such areas as mental health, healthy
living, infrastructure, and seniors' support.
I would
like to take a moment to pause and express our sincere thanks for the
outstanding work of the All-Party Committee on Mental Health and Addictions.
They took their work seriously and provided meaningful recommendations for
government; and government takes its duty seriously as well. Accordingly, we are
committing $5 million to advance the committee's recommendations, and are being
supported by an initial investment of $1.4 million in federal funding, which is
a part of the agreement made under the Canada Health Accord for mental health.
SOME HON. MEMBERS:
Hear, hear!
MS. C. BENNETT:
Through Budget 2017, our
government will support family doctors, nurse practitioners, nurses, social
workers, and paramedics to expand primary health care teams through an
investment of $2.5 million.
We have
made a multi-year commitment to infrastructure investments in health. This
commitment includes $43 million in repairs and renovations to health facilities
and the replacement and upgrading of medical equipment. It includes $13.2
million to advance the replacement of Western Memorial Hospital. It includes
$7.5 million to advance the replacement of the Waterford Hospital, and $4.6
million to increase long-term care capacity in Corner Brook and Central
Newfoundland, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MS. C. BENNETT:
We also know that the most
effective health programs are the ones that support healthy living and wellness.
That is why we are committing $1.79 million to the Community Healthy Living
Fund. This fund will provide for sports and recreation facilities and
infrastructure.
We are
also going to encourage youth to use those facilities and infrastructure. We are
committing $1 million toward active living programs that are targeted towards
youth.
Competition has been shown to increase participation rates across certain youth
populations. So we are committing $571,200 to support sport development
initiatives and travel. Additionally, we have seen that we are more than capable
of competing nationally and internationally, so we are committing $681,000 to
support the Canada Games teams and other high-performance athletes, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MS. C. BENNETT:
Wellness also encompasses
more than activity; eating is an important component of healthy living. That is
why we are committing $1.3 million to healthy eating, supporting groups such as
the Kids Eat Smart, Food First NL, and the School Lunch Association.
Sometimes healthy living is about adding activities, sometimes it is about
stopping bad habits. We are continuing our support of smoking cessation by
contributing $325,000 to the Newfoundland and Labrador Lung Association's
Smokers' Helpline.
Recognizing the important role that community groups play in delivering programs
and services, $115.2 million is being provided in operational funding to
community groups in this province. This includes the commitment to maintain core
funding for 2017-18 while a multi-year grant funding systems have been
developed.
Supporting Seniors and
Vulnerable Residents
Mr.
Speaker, the Provincial Government is committed to greater equity for persons
with disabilities. We continue to work side by side with our stakeholders,
community groups, and individuals to help ensure people with disabilities can
participate in their communities.
Achieving full inclusion requires a new way of thinking, and our government is
seeing accessibility and inclusion take hold a as part of our daily lives and
our decision making. Integrating the knowledge and experience of persons with
disabilities continues to be vital in the development of our programs, policies,
and services.
Our
government has committed to a number of initiatives such as the development of
an inclusion-based disabilities act, and accessible taxi and vehicle programs,
to help people with disabilities remain active participants in their
communities.
Through
an investment of $120 million we will be maintaining the Newfoundland and
Labrador Income Supplement, and Seniors' Benefit. Combined, these programs
assist 155,000 individuals and families in our province, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MS. C. BENNETT:
Every day, child protection
social workers in our province work to assess the safety of children and make
decisions to ensure their protection.
We also
know that it is essential to modernize our approach to child protection. That is
why we are committing $305,800 to train our child protection staff in a new
decision-making model for the Protective Intervention Program. This new model
supports professional judgement by providing individuals with up-to-date and
efficient decision-making tools.
We know
that housing is critically important to vulnerable populations. Finding a
suitable home and maintaining that home are daily challenges to some. Our
government recognizes this, and is responding accordingly.
To
provide on-site outreach services to help promote housing stability and
self-reliance to those at risk of homelessness, we are continuing our annual
commitment of $1 million.
We are
also allocating $10.6 million to the Rent Supplement Program. This program is
administered, in collaboration with private landlords, to allow lower income
households access to more housing options. Mr. Speaker, it is also important to
note that 54 per cent of the clients of this program are seniors.
We also
are committing $7.6 million to supportive living. This money will go to 37
non-profit and community-based groups that operate 51 projects throughout the
province. Those organizations help individuals with complex needs find and
maintain long-term housing.
Budget
2017 involves the development of a responsive, integrated and sustainable
approach to complex care management based in the community. We need to provide
care in the home and in the community where possible and appropriate, and in a
hospital only when necessary.
Through
the Canada Health Accord, our province will receive $87.7 million over the next
10 years for home and palliative care, including $2.9 million in 2017. We will
invest $2.5 million into a Home First Program, designed to provide the necessary
supports to individuals so they can stay in their home as long as possible.
SOME HON. MEMBERS:
Hear, hear!
MS. C. BENNETT:
Mr. Speaker, to help reduce
high energy costs for lower income individuals, we will be investing $5 million
over three years in a new Home Energy Savings Program. Grants will be provided
for low-income households for cost-effective home upgrades to improve energy
efficiency. A new Home Energy Efficiency Loan Program will offer low-interest
financing for energy efficiency home upgrades.
Mr.
Speaker, we also know that while the work of all community groups is important
in their particular areas, some community groups focus on especially vulnerable
populations. Recognizing this need and the fact that core funding has not
increased for many of these groups for some time, Budget 2017 is providing $7.8
million in total funding to transition houses.
SOME HON. MEMBERS:
Hear, hear!
MS. C. BENNETT:
This amount includes $780,000
in new funding to help protect women and children fleeing from violence.
We are
also increasing total funding to over $3 million for community groups that
service women in the area of violence prevention, mental health, career
counselling, and advocacy. This annual increase of over $400,000 recognizes that
our difficult fiscal situation may disproportionately impact certain members of
our society. We cannot forget our duty to act for all citizens, and to provide
them with the supports that meet their individual needs.
Indigenous Communities
Our
government supports Indigenous communities and is focused on investments,
programs and services that improve their social, health and economic well-being.
Later
this spring, for the first time in our province's history, the Premier will lead
a roundtable discussion with the province's Indigenous leaders to discuss
matters which are important to them and to ensure that our government's programs
and services reflect their needs.
SOME HON. MEMBERS:
Hear, hear!
MS. C. BENNETT:
An example of this commitment
is our participation in the National Inquiry into Missing and Murdered
Indigenous Women and Girls. Through this process, we will work collaboratively
to ensure that our country does a better job of making decisions that reflect
the needs of Indigenous people. Budget 2017
includes $285,000 to establish a Family Information Liaison Unit to provide
services to those who are participating in the national inquiry.
Labrador
As a
government, we appreciate the cultural and economic contributions of Labrador.
This is the reason why we joined with community stakeholders to raise the
Labrador flag on our province's borders with Quebec – we appreciate the
importance of the flag.
To link
communities and provide people with greater access to important services, we are
investing $55.7 million to advance the hard surfacing of the Trans-Labrador
Highway. Not only does it link Labradorians but it also provides a direct link
to mainland Canada, Mr. Speaker.
To
enhance the winter highway trail system on the north coast of Labrador, more
than $300,000 will go towards a new groomer. This will be the final addition to
fleet upgrades and will help the winter trail system to remain open.
We also
appreciate the unique challenges that exist in Labrador in terms of the delivery
of justice and have identified the strains on the court system in Happy
Valley-Goose Bay.
To make
the court safer for those using its services, we are investing approximately
$370,000. With this investment, the number of Sheriff's Officers will be
increased, and an additional court manager will be hired to assist in the
scheduling and administrative matters.
It is
important that all of our province's youth have the opportunity to participate
in sport competitions. In particular, we appreciate the costs associated with
travelling from Labrador to the island and are committing $730,000 to the
Labrador Travel Subsidy for championships that are held on the island portion of
the province.
From an
environmental perspective, it is important that we secure a greater
understanding of the region's caribou population as it has an immense connection
to the heritage of Labradorians. To support this activity, we will be allocating
$100,000 per year for the next two years for the Labrador Caribou Initiative.
In this
fiscal year, we will also conduct environmental assessments of the former
military radar sites in Labrador.
Other
investments that we are continuing this year include $100,000 in operational
funding for the Combined Councils of Labrador and $50,000 for the Labrador
Aboriginal Nutritional and Artistic Program.
These
initiatives are in addition to the programs and services that are being
delivered through all departments in Labrador.
Mr.
Speaker, I highlighted earlier that we are phasing out the Temporary Gas Tax.
Accordingly, on June 1, the rebate for Labrador Border Zones, which was set at
10 cents per litre last year, will be reduced to 1.5 cents per litre until
December 1, at which time it will be discontinued. These areas are Labrador West
(which include Lab City and Wabush) and Southern Labrador (from the Quebec
border to and including the community of Red Bay).
As
implemented in 2016, the Temporary Gas Tax on the north coast of Labrador will
continue to be reduced to the point that the price per litre does not exceed
$1.55 or the temporary gas tax has been fully reduced.
Infrastructure
Mr.
Speaker, analysis has shown that targeted infrastructure investments are a key
driver of economic activity. They provide valuable jobs during construction and
support continued economic growth once operational. Our government spoke with
key stakeholders with industry and the public, and what we heard was clear; plan
further in advance.
Accordingly, our government is proud of our commitment to a five-year, $3
billion infrastructure plan.
SOME HON. MEMBERS:
Hear, hear!
MS. C. BENNETT:
Mr. Speaker, this will result
in the equivalent of 4,900 full-time jobs on an annual basis. It will also allow
businesses to better plan, and most importantly, Mr. Speaker, it allows cost
savings to be passed on to government.
Just as
an example of how better planning leads to better outcomes, two years ago this
province paved approximately 166 kilometres of road at a cost of $53.3 million.
Last year, we paved 256 kilometres of road for $47.7 million. That is 90 more
kilometres of road, for $5.6 million less, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MS. C. BENNETT:
We have also made significant
multi-year commitments to roads. We are committing $77.2 million to the
Provincial Roads Program and $21.2 million to continue the development of the
Team Gushue Highway. We are investing in roads because they are a tangible
connection for us across this vast province.
Industry and Business
Mr.
Speaker, we have set a stronger, more diversified province as a priority in
realizing Newfoundland and Labrador's potential. Through investments in health
care, education, transportation infrastructure and directly in small businesses,
we are supporting community and economic growth.
Budget
2017 recognizes the need for strengthening Newfoundland and Labrador's economic
foundation and providing real actions to achieve our goals. Through strategic
investments in industry and business, we can build the foundation to long-term
success.
Newfoundland and Labrador is home to increasingly innovative and
knowledge-driven industries – whether it is in ocean technology or aerospace or
defence, our companies are operating on the global stage. Our province's
advanced technology sector is valued at more than $1.6 billion and employs close
to 4,000 employees.
Through
available business and economic development programs we will assist them as they
expand their markets and ultimately expand their workforce.
Our
$14.4 million investment in economic and business programs will also support
communities and other groups as they identify projects that can serve as a
catalyst for new business activity.
Mr.
Speaker, our government is proud of our culture and our rich tourism products.
We must continue to identify product opportunities where we can leverage this
uniqueness.
This
year, we are contributing more than $20 million to support culture and heritage
initiatives.
SOME HON. MEMBERS:
Hear, hear!
MS. C. BENNETT:
In addition to this funding,
we are also allocating $13 million to continue to market our tourism destination
and we are increasing the Newfoundland and Labrador Film Development
Corporation's Equity Investment Program by $2 million.
As a
government, we believe that there is an untapped potential in our province's
more traditional, rural-based industries. We see these industries as holding the
potential for job creation and new economic activity.
In
particular, our fishery has sustained our communities and economy for
generations. Through investments we can support younger people and existing fish
harvesters to capitalize new opportunities in an old industry.
Through
Budget 2017, approximately $5 million is available for investment in the wild
fishery and aquaculture industries. This funding will leverage significant
investment from the private sector and the Federal Government.
Some
examples include funding for the Aquaculture Capital Equity Investment Fund and
the Seafood Innovation Transition Program, which supports technology and
innovation in harvesting, processing, aquaculture, and marketing.
As we
prepare for the revitalization of the cod fishery, our Fisheries Advisory
Council, with an investment of $100,000, will provide industry stakeholders with
the opportunities to present advice on important issues.
Mr.
Speaker, in February our government announced that we would be making more Crown
land available for agriculture development. This is an example of how our
government is creating an environment for entrepreneurs to excel while improving
our province's ability to be more food self-sufficient.
To
assist these efforts, we are increasing the available land for agriculture;
effectively doubling the land mass available for this industry. By giving the
land back to Newfoundlanders and Labradorians we are making significant
investments in our future.
We
recognize that our role in growing this industry and are committing $3.9 million
to continue the five-year, $37 million Growing Forward 2 initiative, which is a
cost-shared project with the Federal Government.
Budget
2017 is committing $3.25 million to the Provincial Agrifoods Assistance Program
so that we can continue developing agriculture land, growing the industry, and
improving our food self- sufficiency. We are also committing $1 million to
continued research in crops, such as canola, that may now be able to be grown
successfully in our province. Finally, we are committing $500,000 to continue
development of our provincial cranberry industry.
Mr.
Speaker, now is not only the time for investments off our coast, but it is also
the time for investments on, and under, the land. Mining and resource extraction
is a significant contributor to the economy of this province, employing some
7,000 people. As an example, Tata Steel has built a $1 billion iron ore
processing facility on the Labrador Trough. While the sector is currently
experiencing a general reduction in global commodity prices, the cyclical nature
of the industry holds promise that when prices will again rise, and it is the
job of government to help industry prepare for that growth when that happens.
It is
generally the best informed companies that succeed in the global mining
industry, and a comprehensive geological survey is providing Newfoundland and
Labrador with a competitive edge to attract investment. That is why we are proud
to continue our commitment to close to $5 million in the Geological Survey which
maps our diverse geology and provides sophisticated geoscience. By expanding on
the database of available geological information, we can attract global
investments to our shores. In addition, we are investing $1.7 million for the
Mineral Incentive Program including an additional $200,000 for the Junior
Exploration Assistance Program over the next two years to encourage mineral
exploration and support the mining industry.
We can
also foster additional investments by acting as a funding partner for new
developments which is why we are committing $8 million to an Investment
Attraction Fund, designed to encourage and support foreign direct investment in
Newfoundland and Labrador.
Conclusion
Mr.
Speaker, our path is certain. With The Way Forward providing us with the guiding
principles of developing a smarter approach to governance and management, we are
methodically and responsibly redesigning government to address the economic,
social, and fiscal challenges that we face.
Our
focus will always be on positioning our province to be an ideal place to raise a
family, with a competitive work and business environment. In order to return to
fiscal balance we must think and act in a way that is long term. We can no
longer afford to be bound by short-term reactionary thinking.
This
budget reflects our commitment to a stronger economic foundation, a more
efficient public sector, better services and better outcomes.
Mr.
Speaker, we would like to thank all those that provided input into this budget.
The many submissions we received have helped shape our decisions. I would also
like to acknowledge the tremendous amount of work that is done by public service
employees, especially in the days leading up to the budget. Their expertise and
professionalism in our departments is evident to us and we place great value in
the work that you do.
Mr.
Speaker, we still have a ways to go, but our government is confident that we are
on the right path.
Thank
you.
SOME HON. MEMBERS:
Hear, hear!
MR. SPEAKER:
The hon. the Minister of
Finance and President of Treasury Board.
MS. C. BENNETT:
Mr. Speaker, I move, seconded
by the Premier, that the debate be adjourned.
MR. SPEAKER:
The motion is that debate be
adjourned.
All
those in favour, 'aye.'
SOME HON. MEMBERS:
Aye.
MR. SPEAKER:
All those against, 'nay.'
Carried.
On
motion, budget debate adjourned.
MS. C. BENNETT:
Mr. Speaker, I wish to inform
the House that I have received a Message from His Honour the Lieutenant
Governor.
MR. SPEAKER:
All rise.
The
following message has been addressed to the hon. the Minister of Finance and
President of Treasury Board:
As
Lieutenant Governor of the Province of Newfoundland and Labrador, I transmit
Estimates of sums required for the Public Service of the Province for the year
ending 31 March 2018, in the aggregate of $7,327,757,400, and in accordance with
the provisions of sections 54 and 90 of the Constitution Act, 1867, I recommend
these Estimates to the House of Assembly.
Sgd.:_________________________________
Lieutenant Governor
Please
be seated.
The hon.
the Minister of Finance and President of Treasury Board.
MS. C. BENNETT:
Thank you, Mr. Speaker.
Mr.
Speaker, I move, seconded by the Premier, that the message, together with the
Estimates, be referred to the Committee of Supply.
MR. SPEAKER:
It is moved and seconded that
the message from His Honour the Lieutenant Governor, together with the
Estimates, be referred to a Committee of Supply.
Is it
the pleasure of the House to adopt the motion?
All
those in favour, 'aye.'
SOME HON. MEMBERS:
Aye.
MR. SPEAKER:
All those against, 'nay.'
Carried.
On
motion, that the House resolve itself into a Committee of the Whole Supply, Mr.
Speaker left the Chair.
Committee of the
Whole
CHAIR (Dempster):
Order, please!
We will
now take a few moments to distribute the budgetary documents to all hon.
Members.
(Budgetary documents are distributed.)
CHAIR:
Order please!
The hon.
the Government House Leader.
MR. A. PARSONS:
Thank you, Madam Chair.
I move
that the Committee rise, report progress and ask leave to sit again.
CHAIR:
The motion is that the Committee rise, report progress and ask leave to sit
again.
All
those in favour, 'aye.'
SOME HON. MEMBERS:
Aye.
CHAIR:
All those against, 'nay.'
Carried.
On
motion, that the Committee rise, report progress and ask leave to sit again, Mr.
Speaker returned to the Chair.
MR. SPEAKER (Osborne):
The hon. the Deputy
Speaker.
MS. DEMPSTER:
Mr. Speaker, the Committee of
Supply have considered the matters to them referred and have directed me to
report progress and ask leave to sit again.
MR. SPEAKER:
The Chair of the Committee of
Supply reports the Committee have considered the matters to them referred and
have directed her to report that they have made some progress and ask leave to
sit again.
When
shall the report be received?
MR. A. PARSONS:
Now.
MR. SPEAKER:
Now.
When
shall the Committee have leave to sit again?
MR. A. PARSONS:
Tomorrow.
MR. SPEAKER:
Tomorrow.
On
motion, report received and adopted. Committee ordered to sit again on tomorrow.
MR. SPEAKER:
Notices of Motion.
Notices of Motion
MR. SPEAKER:
The hon. the Minister of
Finance and President of Treasury Board.
MS. C. BENNETT:
Thank you, Mr. Speaker.
Mr.
Speaker, I give notice that I will ask leave to introduce a bill entitled, An
Act To Amend The Revenue Administration Act.
MR. SPEAKER:
Further notices of motion?
The hon.
the Government House Leader.
MR. A. PARSONS:
Mr. Speaker, I give notice,
by leave, move that the composition of the Committees for Estimates will be: the
Resource Committee will consist of Members for the following Districts: Baie
Verte – Green Bay, Cape St. Francis, Conception Bay East – Bell Island,
Exploits, Fogo Island – Cape Freels, Harbour Grace – Port de Grave, St. John's
East – Quidi Vidi, and Stephenville – Port au Port.
The
Government Services Committee will consist of the Members for the following
Districts: Torngat Mountains, Bonavista, Burin – Grand Bank, Ferryland, Harbour
Main, Mount Pearl North, St. John's East – Quidi Vidi, and Stephenville – Port
au Port.
The
Social Services Committee will consist of Members for the following Districts:
Cartwright – L'Anse au Clair, Baie Verte – Green Bay, Burin – Grand Bank,
Fortune Bay – Cape La Hune, Harbour Main, St. George's – Humber, St. John's
Centre, and Topsail – Paradise.
Mr.
Speaker, I further give notice and by leave move, number one, the following
Estimates will be referred to the Government Services Committee: the Department
of Finance, Consolidated Fund Services, and the Office of the Chief Information
Officer; the Public Service Commission, the Human Resources Secretariat, and the
Women's Policy Office; Service NL; Government Purchasing; and the Office of
Climate Change; and the Department of Transportation and Works.
That the
following Estimates be referred to the Resource Committee: the Department of
Advanced Education, Skills and Labour; the Department of Fisheries and Land
Resources; the Department of Tourism, Culture, Industry and Innovation; and the
Department of Natural Resources.
That the
following Estimates be referred to the Social Services Committee: the Department
of Children, Seniors and Social Development, and the Newfoundland and Labrador
Housing Corporation; the Department of Education and Early Childhood
Development; the Department of Health and Community Services; the Department of
Justice and Public Safety; and the Department of Municipal Affairs and
Environment.
Mr.
Speaker, I also wish to advise Members that on Monday, April 10, 2017, at 9 a.m.
the Government Services Committee will meet in the Chamber to review the
Estimates for the Public Service Commission, along with the Human Resources
Secretariat, and the Women's Policy Office of the Executive Council.
I
further advise Members that on Monday, April 10, 2017, at 6 p.m. the Resource
Committee will meet in the Chamber to review the Estimates for Fisheries and
Land Resources.
MR. SPEAKER:
Is it the pleasure of the
House to adopt the motion?
All
those in favour, 'aye.'
SOME HON. MEMBERS:
Aye.
MR. SPEAKER:
All those against, 'nay.'
Carried.
The hon.
the Government House Leader.
MR. A. PARSONS:
Mr. Speaker, I move, seconded
by the Premier, that the remaining Orders of the Day do stand deferred and that
this House on its rising do adjourn.
MR. SPEAKER:
The motion is that this House
do now adjourn.
Is it
the pleasure of the House to adopt the motion?
All
those in favour, 'aye.'
SOME HON. MEMBERS:
Aye.
MR. SPEAKER:
All those against, 'nay.'
Carried.
This
House stands adjourned until tomorrow at 1:30 in the afternoon.
On motion, the House at its rising adjourned until tomorrow, Monday, at 1:30 p.m.