April
30, 2015
HOUSE OF ASSEMBLY PROCEEDINGS
Vol. XLVII No. 7
The
House met at 2:00 p.m.
MR. SPEAKER (Verge):
Order, please!
The
hon. the Minister of Finance.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Mr. Speaker, I move,
seconded by the Premier, that this House approves the general budgetary policy
of the government.
MR. SPEAKER:
The motion is that this
House approves in general the budgetary policy of the government.
The
hon. the Minister of Finance.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Thank you, Mr. Speaker.
Balancing Choices For A
Promising Future
Newfoundland and Labrador is proudly demonstrating the degree to which a
province can transform itself in a little more than a decade.
Through wealth generation primarily by our offshore oil sector along with
successful negotiations relating to the Atlantic Accords, Newfoundland and
Labrador became a “have” province for the first time since Confederation.
Applying these newfound revenues strategically to sustained
infrastructure in health care, in education, in debt reduction and in new
opportunities, we have built a rock-solid foundation sturdy enough to sustain
growth for generations to come. In
fact, Newfoundland and Labrador has never been stronger than it is during this
past decade of transformation. On a
wide range of performance measures, Newfoundland and Labrador has been among the
leaders of growth in Canada.
But we
have not yet completed the transformation.
Now that the foundation has been laid, the time has come to build upward.
The time has come to raise the pillars of our economy durable enough to
weather any storm. Already, we are
weathering a storm that would be crushing us had we not made the choices that
transformed this province during the last ten years.
Still, we know we are capable of doing even better.
In this Budget, we are ready to lay out the plan that will make that
happen. This Budget is about the
future. This Budget is about what
we are going to do next. With a new
Premier, with a renewed vision, we are ready to be bold and innovative in
tackling the challenges that remain.
In this
year's pre-Budget process, we have been particularly thorough in evaluating our
circumstances and weighing the choices we could make.
We have listened with keen interest to the suggestions offered in the
pre-Budget consultations. We have
consulted with experts, and we have deliberated at length.
The time has come to choose.
Today, I will outline some of those new ways that we will be addressing the
challenges before us.
In this
first Budget of our new Premier's tenure, we also happen to be facing a
particular challenge that, a year ago, no one would have predicted.
The precipitous, protracted and unpredictable decline in the global
market price of oil and the parallel drop in the global market prices of mined
commodities such as iron ore have shaken economies from Canada to Australia.
No economy is unaffected by the impact.
Different governments, though, have made different choices.
Today, Mr. Speaker, I will announce ours.
The
choices that our government is making are grounded in one overriding principle,
and that principle is simply this: what is in the best interests of
Newfoundlanders and Labradorians.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Throughout this debate, and
the weeks that follow, we certainly look forward to hearing the choices of those
who will be inevitably criticizing our choices.
But it is not enough to simply just criticize our budget, or the choices
we have made, or the financial position this province is in.
Our detractors, all of them, need to say what they would do.
We are confident that we have struck a responsible balance that protects
people's frontline services, safeguards economic activity and the jobs in
Newfoundland and Labrador, and serves the best interests of all Newfoundlanders
and Labradorians, both now and tomorrow.
That is why we have entitled this Budget “Balancing Choices for a
Promising Future”. Our government
is acutely aware of our duty, not only to protect the tremendous progress our
province has achieved over the last decade, but also to prepare our province to
take advantage of the prospects that we have on the horizon.
Let me
begin by speaking, not about the immediate, short-term fiscal challenges we are
facing, but about the new approaches we are taking to build a stronger province
for the long term, well into the future.
The short-term challenges are just that – short-term; they are temporary,
they are transitory, and they are finite in duration.
We will get through those, just as we have gotten through the challenges
of the past. Recall the global
economic downturn in 2009. We
endured it, we survived it and we are stronger because of how we managed it.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Long-term principles are
guiding stars that lead us through challenging times and ever upward we go.
Today, I will outline eight new principles that will guide us in the next
phase of our journey as we transform and continue to grow.
EIGHT LONG-TERM PRINCIPLES
1.
We We Cultivate a Culture of Cost Management
Our
first new approach is this: we will launch a process to overhaul the existing
program and service delivery model in order to contain expenditure growth.
This renewed approach to fiscal management will be applied to all
government departments, boards, and agencies.
Our Premier has asked me, as President of Treasury Board, to lead that
process.
Soon,
we will appoint an external consultant who will work with us as an expert to
examine the structure of the provincial government and its agencies looking for
efficiency improvements. This
consultant will help us answer questions such as: Why is it in Newfoundland and
Labrador it takes about 45 per cent more on a per capita basis to provide
services to the people of this province than other jurisdictions find throughout
Canada? To what extent is it
related to our dispersed and aging population?
And, what are some of the innovative strategies we need to deploy to make
sure that we are able to deliver those services in that same fashion?
We are
going to work with our employees throughout the system to cultivate a “culture
of cost management.” We have no
interest in unleashing a series of cost-reduction exercises that cannot be
maintained. We opt instead to
cultivate an approach that is sustainable, progressive, and continuous.
In everything we do as a government, we must ensure that the people of
the province are seeing top value for the money that we are spending and for
their tax dollars and help them save.
2.
We Will Refocus to Strengthen Health Services
Our
second new approach regards health care.
Health care spending right across this country is growing at an
unsustainable rate. We know there
are better and more efficient ways to deliver health services.
There are choices we can make that will shift greater focus and attention
toward frontline health services and the people who need it.
We are going to consolidate key administrative support services in our
provincial health care system to find efficiencies, economies of scale, and
better value for our money. This
will allow regional health authorities to focus on their core business which is
the provision of high quality patient care to the people of Newfoundland and
Labrador.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
The province currently has
four regional health authorities employing approximately 20,000 people.
Their primary function is to deliver quality care health and community
services throughout Newfoundland and Labrador.
We do not intend to reduce those health authorities.
These regional health authorities each,
though, have separate administrative services, such as purchasing, supply chain
management, information management and information technology, payroll services.
By consolidating administrative
functions among those regional health authorities, we will find greater
efficiencies and promote better value for our money.
Further, the Newfoundland and Labrador
Centre for Health Information, which was initially established to provide a
comprehensive province-wide health information system, also carries out similar
administrative functions as do each of the regional health authorities.
By bringing together the functions of
the Centre with the administrative functions of the regional health authorities,
we will create a stand-alone shared service organization.
Through this move, we will be positioned
to have a single organization with a focus on supporting those who deliver
health care, a provision of essential administrative supports.
Consistency, with better alignment of these functions, will support us as
we transform the health system, and regional health authorities will be
strengthened because they are able to focus on patient care.
3. We Will Ensure Trades
Education is Industry-Driven
Our
third approach: we will overhaul our approach to trades education by working
with the College of the North Atlantic to develop a new strategic vision and a
direction that is opportunity-driven and industry-driven.
No one
would disagree that it would be reckless to train people for jobs that do not
exist or to fail to train people for jobs that are about to open up.
Recognizing this, our government in 2007
moved forward with the recommendations of our Skills Task Force to match people
and programs to labour force needs.
Thousands of people have been able to take advantage of emerging opportunities
thanks to the education, the workforce skills training and the certifications
they received on our watch.
We will
work with the College to ensure it serves the students and employers more
effectively while delivering programs more efficiently.
We will focus on creating centres of
excellence in specific disciplines, and we will follow up on these key decisions
with investments to ensure that the College is even better and is able to do the
work that it is being asked to do.
Students will benefit. The employers
will benefit. Our economy will benefit,
and Newfoundland and Labrador will be in a much better position to capture the
opportunities that are on the horizon.
SOME HON. MEMBERS:
Hear, hear!
4. We Will Develop an
Attrition Plan
MR. WISEMAN:
Our fourth approach is to
develop an attrition plan that will enable us to strategically – strategically
is the operative word – to right-size our public service and to ensure that the
Government of Newfoundland and Labrador continues to be an employer of choice
for talented young people seeking an active role in facilitating the growth of
this province.
Every
year, hundreds of people leave the public service, either to retire or to seek
employment elsewhere. Some of the
jobs they leave must be staffed immediately because the positions are key to
service delivery, particularly in areas such as health care, education and
public safety. Currently, our
province has a relatively large public service per capita in the national
context. The total number of
employees in the entire public service, including core government departments,
boards and agencies, is approximately 46,000.
That represents about 19.3 per cent of the total workforce in the
Province of Newfoundland and Labrador.
As we find ways to be more effective and more efficient in delivering
program and services, we will achieve efficiencies through a strengthened public
service. The provincial government
will use attrition as a tool to minimize and manage the size of the public
service, minimizing layoffs, while at the same time reducing the negative
consequences on our economy. An
attrition plan, which I announced on April 27, will enable us to reduce the size
of the public service in a gradual and measured way with minimal disruption to
our employees and without compromising the services that the Government of
Newfoundland provides to the people of this province.
As the
attrition plan unfolds and the public service employees retire and resign, we
will continue to focus on building capacity and stability in our public sector
workforce by focusing on attracting young, talented, well-educated individuals
into our public service.
Our
approach will minimize the negative impacts on consumer confidence and the
uncertainty that would arise with extensive layoffs.
It also prevents the loss of young professionals having the least amount
of seniority but tremendous potential.
This approach will encourage and support such employees to foster a
career in public service. A vibrant
and rejuvenated public service supports an important consumer base in our
economy and ensures that the people with the right skills and the experience are
in the places to provide the necessary public services well into the future.
5. We Will Adopt
Longer-Range Infrastructure Planning
Our
fifth new approach will be: we are ready to take an even longer-range approach
to infrastructure planning.
When we
first came to government just over a decade ago, the magnitude of the
infrastructure deficit we inherited was truly staggering.
As we proceeded with our infrastructure strategy, we were very cognizant
of the fact that some of the facilities that we had were well past its
best-before date and some of them in real danger of crumbling, so we knew we
might have to adjust our priorities as we were moving.
But here we are a decade later, with an incredible amount of
infrastructure work completed and a solid portfolio of new and improved
highways, health facilities, schools, recreation facilities and other facilities
that provides services to the people of Newfoundland and Labrador.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
There is always more to be
done, but we are in a much stronger position now than we were in 2003.
We are better able now than before to set our sights father out and plan
across multiple years for facilities that will serve our needs well into the
future.
Having
invested nearly $6 billion in infrastructure projects over the last eleven years
–
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
– we can afford to pull back a little bit until our oil revenues rebound.
Therefore, we have chosen to reduce capital spending temporarily and slow
the pace of some the infrastructure work over a period of time.
Some infrastructure projects will be paused, while others will proceed as
we planned them – but none of them, Mr. Speaker, none of them, will be
cancelled.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Is there a better approach
to a project that will help us accomplish more in the long run, if it makes
sense to adjust now, we will. That
is what we will continue to do. We
are bringing forward a long-range investment schedule that will enable us to
plan expenditures well into the future and ensure we meet the needs.
Even
though we are slowing the pace, we will still be investing heavily this year in
priority projects by allocating some $660.8 million for infrastructure that will
strengthen communities, support economic activity and create long-term
prosperity in this province.
6.
We Will Focus on Regional Clusters
Our
sixth approach, Mr. Speaker: to a greater degree than ever before, our approach
moving forward will promote regional clustering for the purposes of economic
development and the delivery of services.
The
best source of economic stability for a region is a group of anchor industries
that build on the particular strengths of a region.
Some regions have a thriving agrifoods industry, others have fisheries,
and others may have tourism. We can
help to strengthen these industries while attracting others to the region to
diversify the economic base. The
services and facilities that we provide can contribute to economic viability of
the region, helping us to attract and grow new investments.
Communities in a region can contribute to regional strength by sharing
services and by partnering to achieve gains that may not have been possible
without working together. We will
build on our investments in roads, schools, recreation, health facilities,
potable water, broadband and emergency services in ways that will strengthen and
diversify our regions, grooming them for new growth.
One of
the most significant initiatives we are unveiling this year is the new Community
Sustainability Partnership. This
partnership, announced on April 29, provides new sources of funding for
municipalities, Inuit community governments and local service districts.
Building on the strength, the strong support and significant investments
of our government that we have made over the last decade, Budget 2015
investments will further ensure a strong and sustainable future for our
communities and the regions they anchor.
These investments will grow in the next two years, and we will be reaping
the returns well into the future.
We will
share gas tax revenues from our municipalities and Inuit communities beginning
in Budget 2015. We will also
provide a partial rebate of the provincial portion of the HST to municipalities,
Inuit community governments and local service districts beginning in January
2016. Effective January 1, 2016,
they will receive a rebate of 25 per cent of the provincial portion of the HST,
and the rebate will increase to 57.14 per cent effective January 1, 2017.
Through
the new municipal operating grant formula, announced in 2013, and the increased
annual investment provided in 2014, over 80 per cent of our municipalities
received an increase in operating grants and none – none, Mr. Speaker – saw a
decrease.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Responding to the need for
predictability in their funding so that communities can plan ahead, Budget 2015
provides a three-year commitment to municipal operating grants, at a $22 million
annual investment level, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
We are also enhancing
accountability structures so that we can ensure that these new funds do not
displace current levels of investment by our municipalities, but instead are
used to respond to areas the public have identified throughout our consultation
process that they need, such as safe drinking water.
The
review also recognized that funding alone will not address the needs of our
communities. Smaller communities,
in particular, need operating assistance with their drinking water systems and
help understanding what they need to do regarding their federal wastewater
programs. Three regional service
boards will implement regional water and wastewater operator services effective
October 1, 2015 to March 31, 2019 targeting a pilot group of communities that
meet a certain criteria. Through
this investment of approximately $1 million over a 3.5-year pilot, these
operators will provide the assistance and the advice to help build capacity
within these communities. To
further assist our communities in the area of clean and safe drinking water, a
consultant will be engaged to focus exclusively on solutions to reduce the
number of boil water advisories in our province.
In
addition, we will create an advisory committee with representatives from social
and economic sectors to explore the potential for a new regional governance
structure. In late 2015, informed
by the work of this advisory committee, we will begin consultations on a
potential new model for governance in our municipal sector that could further
assist us in achieving sustainability, sustainable communities, and improve the
services of our local community governments.
Any potential new model considered, though, must be one that celebrates
the unique identity of our communities and our neighbourhoods and supports the
existing local governments and they remain.
This exploration is about regional collaboration to achieve efficiencies
in service delivery that will reduce duplication and benefit all citizens.
We have
been making progress in addressing infrastructure needs through our municipal
capital works program, with key priority areas including improved drinking water
and wastewater systems as well as recreational infrastructure projects.
We are maintaining current cost-sharing ratios in Budget 2015, and also
providing for a provincial investment of approximately $119 million in municipal
infrastructure to complete new and ongoing projects under the existing
infrastructure programs.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
In addition, Mr. Speaker, in
recognition of the need for continued investment in municipal infrastructure,
and building on a three-year $200 million municipal infrastructure program that
was announced last year, our government is committed to a $175 million
investment in the new projects in the 2017-18 to 2019-20.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Mr. Speaker, this is in
addition to the provincial funding that will be provided over the coming years
to leverage federal funding under the new Building Canada Fund.
These significant investments and levels of funding are enabling our
communities to secure, develop and improve infrastructure that supports their
long-term growth and sustainability.
7. We Will Implement a
Strategic Deficit Reduction Plan
Our
seventh approach, Mr. Speaker: when we encounter sharp revenue declines, as we
are experiencing this year, with such a depth and severity that the government
cannot compensate in a single year without inflicting great damage to our
economy, we will abide by a multi-year plan to ratchet that deficit down to
zero, progressively, and step by step.
We will
set clear fiscal targets to measure our performance.
Through multi-year planning of our expenditures, we will be able to
project the year that we will return to a balance.
If borrowing is required to cover programming expenditures, as it will be
this year, then we will present a plan to repay that borrowed funding in a
reasonable period of time once the province returns to a surplus.
These planning measures would give confidence to our lenders, our bond
rating agencies, as well as the citizens and businesses in this province.
With
Budget 2015, we are laying out a five-year plan to return this province to
surplus, while at the same time continuing to make prudent investments in key
areas. This plan builds on the work
that our government has undertaken previously to make programs and service
delivery more efficient. To get
back to surplus in a reasonable, predictable period of time, we will make the
necessary expenditure reductions so our programs and services remain affordable
while at the same time taking steps to ensure that they are relevant and
effective in meeting the needs of those that we serve.
In a new culture of cost management, we will constantly strive to provide
better services for less money.
8. We Will Establish a
Generations Fund.
Our
eighth approach, Mr. Speaker: as our Premier announced last Wednesday, we will
establish a Generations Fund in which a percentage of our revenues we accrue
from the oil projects will be invested in future generations.
In
this, we are following the lead of Norway, which established a legacy fund about
two decades after oil revenues started to flow.
Having invested our initial years' worth of oil revenue in debt reduction
and infrastructure deficit reduction, we will begin investing in the Generations
Fund as soon as we return to surplus. We
are developing and will bring forward to this House legislation to establish
this trust fund and define the parameters according to which revenues will be
invested and managed. The Generations
Fund will not be a contingency fund to offset annual deficits, but will be
protected for the use down the road by future generations who will not have the
benefit of oil revenues.
THE REALITIES WE FACE
Mr.
Speaker, those eight principles are at the heart of the approach that we will
take this year to deal with the immediate challenges that we face of the global
decline in the commodity prices and the consequent impact on our revenues.
We need to adjust our course to meet
those new realities head-on, but we must be careful not to adjust the course so
as not to create a negative unintended consequence.
We will safeguard the significant gains
that we have made over the past ten years. We
will do this best through a gradual change to avoid harming the province's
economic system. Prudent fiscal
management demands such an approach.
We know
the situation that we find ourselves in is temporary.
Oil prices are low today, but all the
advice and all the experts are telling us that it will rebound.
Let us
look in detail at the economic and fiscal circumstances we face, and our budget
plan to deal with it.
Economic Performance 2014
As
global commodity market conditions deteriorated in 2014, economic activity
softened in Newfoundland and Labrador. Real
GDP is estimated to have contracted by 1.9 per cent, driven by falling oil and
mineral prices that weighed on our exports; and employment contracted by 1.7 per
cent as mining activity fell and development activities at Vale's Long Harbour
nickel processing facility declined and the project was progressing towards
completion.
Provincial exports are estimated to have declined by about 6.6 per cent in 2014,
due primarily to lower oil and iron ore production and prices.
Despite
the fall in commodity prices and the weakening economic conditions through 2014,
other indicators continued to exhibit the strength of our provincial economy,
specifically investment, consumer spending and labour compensation.
While
the weakening of the oil and mineral prices has delayed investment plans both
globally and provincially, capital investment in this province remained at a
very high level in 2014. Investment
is estimated to have totalled $12.2 billion last year, slightly lower than the
record level that was established in 2013.
Total residential spending, including renovations, is estimated at $1.5
billion in 2014, a decline from some $1.7 billion reached in 2013, but still
high in historical context.
Retail
sales and spending on services also reflected the sustained strength of our
economy that has evolved over the past decade.
The value of retail sales increased by some 3.4 per cent in 2014 compared
to 2013. Growth in retail sales was
broad-based with gains across most categories and continued demand for motor
vehicles increased. The number of
new vehicles sold in the province was 35,440 last year, on par with the record
level of 2013. It speaks to the
strength, Mr. Speaker, of our economy.
In addition to retail sales, expenditures on services also posted growth
last year. Receipts of food
services and drinking places increased by 2.9 per cent in 2014 compared to 2013.
While
Newfoundland and Labrador was one of the five provinces to record negative
employment growth in 2014 and the provincial unemployment rate rose to 11.9 per
cent, wages, though, continued to rise.
Average weekly earnings rose by 4.1 per cent, now at $991 a week, were
the second highest among provinces, next to Alberta.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
The increase in wages led to
a 4.7 per cent gain in employee compensation in 2014.
Economic Outlook 2015
While
capital investment expenditures are expected to remain high through 2015, with
the winding down of development of several major projects, and the fallout from
falling oil prices, Newfoundland and Labrador's economy is expected to enter a
period of contraction in the coming year.
Even
though iron ore and fish exports are anticipated to increase over 2014 and
investment is expected to grow by 1.8 per cent, real GDP is nonetheless
anticipated to decline 0.3 per cent in 2015.
Employment in Newfoundland and Labrador is forecast to decline by 1.5 per
cent in 2015 and the unemployment rate is expected to rise to 12.4 per cent due
to the lower employment levels.
Lower
employment will curtail income growth.
Household income is forecast to increase by just 0.2 per cent next year.
Lower income is expected to lead to lower consumer expenditures and a
0.3per cent decrease in retail sales.
Economic Outlook 2016-2020
From
2016 to 2018, economic growth is expected to be curtailed by declines in capital
investments as a result of major projects progressing past their peak
development period. Beyond 2018,
though, strong economic growth is expected to resume.
Real GDP in the province is forecast to grow by 4.1 per cent in 2019 and
5.1 per cent in 2020.
Despite
an overall decline of 1.5 per cent in employment between 2015 and 2020, the
unemployment rate is anticipated to fall from 12.4 per cent in 2015 to 12.1 per
cent in 2020.
Development of major projects has been a significant source of economic growth
over the past several years. As
development winds down and projects move towards their production phase, there
is often a lull in economic activity, particularly in economies as small as
Newfoundland and Labrador's.
However, once the production phase commences it usually marks the beginning of
an upturn in economic growth. Such
is the expected evolution of the projects with Hebron, Muskrat Falls, and Long
Harbour nickel processing facility.
Capital investment is anticipated to decline every year between 2016 and 2018 in
keeping with that scenario, reaching a low point of about $8.5 billion.
However, the production benefits from all of these projects are expected
to be fully felt by 2019. Capital
investment expenditures in Newfoundland and Labrador are expected to reach $8.8
billion in 2019 and up to $9.6 billion in 2020.
Fiscal Review 2014-15
A year
ago, Mr. Speaker, Budget 2014 forecast a deficit of some $537.9 million for the
fiscal year ending 2014-15. Since
that time, lower projected gross expenditures of $385.2 million were not able to
offset the lower revenues of $771.4 million, the result of the precipitous
decline of the price of Brent crude oil, resulting in the forecasted deficit
increasing by some $386.2 million for a total of $924.1 million.
Net debt for the year is projected to increase by $1.175 billion.
The
Brent oil price averaged $83.47US per barrel, down some $21.53US from our
forecasted $105 at Budget time, partly offset by the lower than expected
Canadian dollar. Production was
also lower than expected by 8.27 million barrels.
This combination of lower price, the exchange rate and production
resulted in offshore royalty revenues being lower by $830.2 million, 35 per cent
below our initial forecast.
Also,
compared to Budget, there is a downward revision to mining tax and royalties of
$5.8 million, primarily because of the global downturn.
These lower resource revenues were partially offset by improvements in
other revenues such as our Personal Income Tax and the Offshore Revenue Fund.
Overall, revenues were 10 per cent lower than we budgeted.
Fiscal Forecast 2015-16
Budget
2014 set out, in a three-year fiscal plan, an outlook based on oil prices
expected at that time, to bring us back to a surplus in 2015-16 and 2016-17.
This plan, however, was based on Brent crude oil at $105US per barrel for
2015-16 at an exchange rate of $0.9125.
After trading as high as $115.19US back in June of last year, the Brent
price began a precipitous and unpredictable decline to reach an all-time low of
$45.13US back in January, before recovering to over $60US today.
All
forecasters agree on one thing, that the oil price is coming back.
It will recover. However,
there are differing views on the speed in which that will happen.
That is
why, when deciding on our oil price forecast, the provincial government relied
on eleven forecasters. In fact, one of
those forecasters provided a composite average of another twenty-six individual
forecasters. This provided us with
a broad sweep of views. These
forecasters provided a good cross-section of banks, public forecasters and
private subscription forecasters.
So we feel we have a good view based on a lot of expert advice as to what the
pattern will be for the next number of years.
Understanding the risk associated with oil price forecasting, the provincial
government set its budget oil price assumptions for this year's budget at
proximately one dollar less than the average of all those oil price forecasts.
We are budgeting this year, $62 a barrel in 2015-16, that is US dollars,
$71 a barrel in 2016-17, $80 a barrel in 2017-18, $84 a barrel in 2018-19, $87 a
barrel in 2019-20 and $90 a barrel in 2020-21.
Oil
production is expected to be 2.42 million barrels higher than last year, resting
at 80.32 million barrels. The
combination of a lower price but also a lower exchange rate and a higher
production will result in offshore royalties being $355.8 million lower than
last year.
Total
revenue forecast for 2015-16 has been reduced from $8.534 billion last year to a
$6.976 billion today or by $1.558 billion less.
Partially offsetting this decline is $435.7 million in lower gross
expenses, reduced from the $8.506 billion last year down to $8.070 billion this
year, with a net change of $1.122 billion.
So, instead of the $28.5 million surplus in 2015-16, based on previous
oil price expectations, the new reality of a lower oil price this year results
in a deficit forecast of $1.093 billion.
Compared to 2014-15, total revenues for 2015-16 will be $11.5 million higher,
which will partially offset the higher gross expenses for public services of
$180.8 million. Year-over-year
growth in gross expenses is about 2.3 per cent; however, Mr. Speaker, when you
consider only programming growth, excluding debt servicing, that growth is 1.4
per cent. In addition, gross
expenses for 2015-16 are 5.1 per cent less than forecast in Budget 2014.
Growth
in program expense comes in large part from expenditure pressures that reflect
normal operations, including inflationary adjustments, annualization of prior
year initiatives and expenses associated with demand as driving some of these
programs. We have collective
agreements and public sector workers, we made the adjustments in their salaries
as negotiated. Decisions by
government to control expenses, enhance public services, respond to the public
consultations that we undertook, initiatives to make sure that we advance the
public interest also factors into program expenses, and these are outlined in
more detail in the Budget for this year.
New
revenue measures contained in this Budget augment revenue by $122 million in
2015-16, annualized to $254 million next year.
Significant revenue improvements this year include some $225.2 million in
Corporate Income Tax because of the less negative prior year period adjustments,
and $49.1 million in additional mining revenue flowing from Voisey's Bay.
Net
debt is projected to increase by $1.268 billion this year.
The borrowing requirements this year is expected to be $2 billion, and we
expect to borrow $4.85 billion over the next four year period.
This will allow us to continue to make
strategic investments in Nalcor, focus on infrastructure spending and eliminate
the liability we face with our public sector pensions.
We are also responding to the expressed
interest of Newfoundlanders and Labradorians to maintain strong public services.
It is
important to note that investments in Nalcor will be paid back to the Government
of Newfoundland and Labrador by 2025, and the province will continue to receive
annual cash dividends.
Investments in infrastructure will result in continued improvements in
education, health, municipal infrastructure and transportation for generations
to come.
Investments in pension fund reform will reduce the Province's liability and
improve its net debt.
On our
return to surplus, we will put in place a plan to deal with this debt.
Nalcor
will repay their debt and their investments in infrastructure today will stand
the test of time. As for the
borrowing as a result of the pension reform, when we return to surplus, we will
set out an immediate plan to repay that debt over a ten year period.
This
administration's borrowing in on par with historic levels.
As well, interest rates are at an all-time low.
When we
look back at the history of our Province over time, the cumulative borrowing
totalled $6.78 billion between the periods of 1988 and 2004, that's an average,
Mr. Speaker, of some $399 million a year.
Debt
expense to revenue and debt expense to gross expense and debt expense to GDP has
been consistently lower than the pre-2003 levels.
Our
borrowing plan is short term and is an investment in our future.
One of
our key commitments is to maintain a competitive tax regime that supports
economic growth. However, faced
with lower offshore revenues from the decline of oil prices, and the need to
balance our response between components of our fiscal plan, the revenue
enhancements have to be a part of that solution.
Other jurisdictions, including Alberta, have opted to address their
sudden oil revenue shortfall by increasing revenues from other sources as well.
We need to take a balanced approach to avoid the negative impacts that
deep spending cuts would have on our economy.
Harmonized Sales Tax
The
fairest means of raising additional revenue to compensate for low oil prices is
through the Harmonized Sales Tax system.
It is broadly based, so the burden is distributed over the entire
population. Sales tax increases are
less disruptive to savings and investments and decisions that will have impacts
on income tax increases, and therefore has the smallest impact on future
consumption and economic output.
Furthermore, our HST system already has measures to ease the impact on low
income families.
Effective January 1, 2016, the provincial portion of the HST rate will increase
by two percentage points from eight per cent to 10 per cent, raising the joint
federal-provincial HST rate from 13 per cent to some 15 per cent.
Fundamentally that is a return to where we were in 2006, 2007, and 2008
before the federal government reduced their portion of the HST.
It returns us to 2006 levels.
To
mitigate the impact of these changes on low income families, the provincial HST
credit will be increased, commencing in October 2016.
To ensure that the rate increase minimizes impact on low income
individuals and families, the HST has been enhanced to offset the additional
HST. The government is increasing
the value of the credit to $300 annually per adult and $600 for a qualified
relation.
AN HON. MEMBER:
$60.
MR. WISEMAN:
$60, I am sorry.
There
will also be an increase in the income threshold for $15,000 to $30,000, meaning
that the number of eligible families will increase from approximately 58,000
people who currently are entitled to the benefit to some 126,000 people who will
in the future be entitled to this benefit.
We are
also renewing our commitment to maintaining the Low Income Tax Reduction that we
introduced in 2005. These measures
will mean significant relief for low income individuals and families living in
Newfoundland and Labrador.
Residential Energy Rebate
The
Residential Energy Rebate program that was introduced in 2011 to help residents
offset the rising cost of fuel to heat their homes will end effective July 1,
2015.
Personal Income Tax
Effective July 1, 2015, to make the province's Personal Income Tax system more
progressive, we are adding a fourth bracket for taxable incomes over $125,000 a
year at a tax rate of 14.3 per cent and a fifth bracket for taxable income over
$175,000 at a tax rate of 15.3 per cent.
These
changes will maintain our competitive position as having the lowest tax rates in
Atlantic Canada and still we will have the third lowest top marginal tax rate in
the country.
SOME HON. MEMBERS:
Hear, hear!
Financial Corporations
Capital Tax
MR. WISEMAN:
Effective April 1, 2015, the
Financial Corporations Capital Tax rate, which applies to banks, trust and loan
companies, is increased from four per cent to five per cent.
Fees
There
are a number of fee changes that will either increase some existing fees or
implement a limited number of new ones.
Cumulative Impact of Tax
Changes Since 2006
It is
estimated that in 2015-16 revenue will be $625 million lower than it would have
been based on the tax and fee structure that existed in 2006.
Mr.
Speaker, since that time our government has made significant reductions in fees
and taxation to the extent that if we were to go back to the 2006 fee and tax
structure, we would have an additional $625 million in revenue today.
That is the kind of relief we have provided over the last six or eight
years. Now with a change in our
financial circumstances, we have made some small adjustments in our tax
structure to be able to continue to provide the quality services that
Newfoundlanders and Labradorians have become accustomed to.
Five-Year Fiscal Recovery
Plan
Budgets
are a combination of a multitude of factors over which we have varying degrees
of control. Some factors, like the
price of oil, we have no control over.
In fact, have no influence on at all.
Others, like our expenses – albeit many of them may be fixed because they
are components of delivery of programs and services – we do have some control.
Budget preparation and fiscal planning requires a balancing of all the
components by making the choices that will achieve a promising future for the
province and the public we serve.
Our
objective in the current oil price environment is to set out a balanced,
responsible course that will return the province to surplus position while
continuing to deliver public services and promote economic growth.
To
achieve this, we have set out a Five-Year Fiscal Recovery Plan to return to
surplus, commencing this year. We
have taken a prudent approach to forecasting revenues and managing our expenses.
Our plan will see necessary borrowing over the next four years for
infrastructure, investment, pension commitments and service delivery.
At the same time our deficit will be reduced each year until we achieve a
balanced budget in 2019-20 and then we will return to a surplus in 2020-21.
The
actions we are taking in this budget – the attrition plan, expenditure
reductions and revenue generation – are necessary steps to take us on the path
to a surplus. As well, at that time
we will implement a savings program to invest a portion of our wealth from our
natural resource developments in a generations fund to ensure our prosperity is
shared and enjoyed by future generations.
The Decision to Avoid
Precipitous Cuts
Some
have suggested that the government should address its deficit dilemma by
reducing expenditures as quickly as possible to match the expenditures with our
current revenues. In other words,
make all the adjustments in expenditures only.
As I just noted, real GDP and unemployment rates are expected to decline
by 0.3 per cent and 1.5 per cent respectively in 2015.
With investments declining on major projects, both indicators are
expected to decline until 2018.
Were we to proceed with major spending reductions in the manner being suggested,
by making all of the changes that are necessary on expenditures only, our
economy would be much worse off than it will be.
If the government were to close the expenditure and revenue gap using
only expenditures as a means of achieving that, over the next three years real
GDP and employment would be 1.3 and 2.2 per cent lower than the 2015 numbers
alone. The cumulative impact would
be significant. By the end of 2018,
when all cuts would be complete, real GDP and employment would be 4.2 per cent
or 6.8 per cent lower respectively.
This would create an unstable economic condition.
To put
the size of the potential economic downturn in perspective, if we were to take
those measures that have been suggested, which is a radical reduction in
expenditures, to put the size of that potential economic impact into some
perspective for you, during the economic upheaval of the 1990s, employment
declined by 18,000 person years or 8.7 per cent between the peak of the problem
in 1990 and the bottom of the crisis in 1996.
In a cuts-only scenario, the size of the potential decline in employment
from the historical peak of 242,700 people in 2013, predicted to be 35,000
person years or 14.4 per cent. A
decline of 35,000 person years of employment is a scenario we would be very wise
to avoid, and that is the reason we have chosen the path we have.
To make the changes that are necessary to return to surplus by reducing
expenditures only would undermine our economy.
OUR EMERGING ENERGY ECONOMY
Mr.
Speaker, our government has tremendous confidence in the future prospects of
Newfoundland and Labrador. We
understand the potential that exists here, and we recognize the tremendous
opportunities we have to seize. We
are leveraging our significant natural resources as well as supporting the
strengths of an innovative business community that is competing in global
markets.
For
over a decade, our government has led the province in the responsible
development of our energy resources, as outlined in our 2007 long-term Energy
Plan. Through sound policy
decisions, Newfoundland and Labrador is well on its way to becoming an energy
powerhouse, generating wealth to pay down debt, to finance our health care,
finance our education and other vital services.
We have shaped a culture that understands how to embrace an opportunity,
negotiate globally and achieve prosperity.
We are preparing renewal of our Energy Plan that will build on the
province's foundation of the existing Energy Plan.
Nalcor
is managing energy projects on our behalf, on behalf of the people of
Newfoundland and Labrador, and positioning the province as an internationally
competitive player in the resource sector.
Our energy company is commercially focused on meeting the needs of its
shareholders. Those shareholders,
Mr. Speaker, are the people of Newfoundland and Labrador.
To be clear, we are building Nalcor to bring long-term revenue to the
province. The equity interests that
we currently have in our oil and gas projects, and the stakes that we will have
in future projects, will significantly increase our returns, over and above what
we would receive by taking royalties only.
Our approach is neither novel nor radical.
Today, Mr. Speaker, over 80 per of the world's oil and gas reserves are
controlled by state-owned energy companies.
We need only to look at Norway and see the success it has achieved
through its state-owned energy company, Statoil.
The
long-term potential for the petroleum industry in Newfoundland and Labrador
remains strong. The world needs new
supplies of oil, and this province is well positioned to meet that demand.
We have world-class producing projects and highly prospective frontier
basins. We are ideally located
between the major energy markets, and we have a stable, low-risk environment for
investment along with a stable fiscal regime and a competitive fiscal regime.
The
foundation for developing our future based on this energy warehouse is well in
place, and the benefits will be maximized for the people of this province.
We are going just that by supporting a series of strategic developments
that will contribute to the future growth of the oil and gas sector and the
provincial economy. In 2014, we saw
successful Calls for Bids which resulted in a $559 million commitment to
exploration in the Flemish Pass Basin.
We celebrated an increase in reserves for the Hibernia field to an
estimated 1,644 million barrels of oil.
We just
recently welcomed a new land tenure regime that is propelling the province's
offshore industry forward. That
regime reflects the best practices of leading exploration jurisdictions and
inputs from stakeholders. This new
regime means transparency and predictability for companies interested in doing
business in our offshore industry.
We are
continuing to expand and find new resources offshore.
We are raising awareness of our oil and gas potential through seismic
work, which is providing us with a better understanding of what lies beneath our
sea. This work is attracting the
attention of the global oil and gas industry.
We have acquired new modern broadband seismic data for some 80,000 square
kilometres of land that is available for licensing, while we are also host to
more than one million square kilometres of offshore acreage – comparable to the
size of the Gulf of Mexico.
But oil
and gas is only one part of our energy future.
The Muskrat Falls Project, now in its third year of construction, will
provide us with clean, renewable energy, a link to the North American grid, and
the ability to export power to markets outside the province.
We are developing one of the best hydroelectric projects in North America
at Muskrat Falls, Mr. Speaker, and have our sights set on the larger neighbour,
Gull Island. With these projects,
we will assume our new role as a major electricity provider in the North
American marketplace.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Billions of dollars of new
revenue will be generated and, unlike oil and gas, this resource will flow
forever. Anytime it rains or snows
in Newfoundland and Labrador we are making money.
We must also not forget the crown jewel of our energy warehouse – the
Upper Churchill. The year 2041 is
not that far away and, while we are not reaping the full benefits of this
project today, Nalcor is ensuing that, through their strategic capital
investments, this asset will still be a world-class generating station in 26
years' time when 2041 rolls around.
To be
clear, Mr. Speaker, Nalcor will bring long-term revenues to this province.
In 2015-16 the government will put an equity investment of $760 million
into Nalcor.
Government's last equity injection in Nalcor will be in 2017-18.
Over a total investment period of 10 years, the provincial government
will have invested $3.1 billion into Nalcor.
Mr. Speaker, every penny of that will come back.
We will get every cent of that back by 2025-26.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
From that time on, we will
continue to see increases in our dividends.
If you think about that for a minute, Mr. Speaker, and members opposite
almost on a daily basis in this House will criticize us for putting money into
Nalcor as if it is some foreign country that we do not own, but just think about
this investment. You take $3.1
billion over 10 years, you put it into a company who gives it all back to you in
eight and then continues to pay you money on an ongoing basis and in the
following 17 years you end up with $12 billion in revenue and continues to grow
in excess of a billion dollars a year for decades to come, what better deal can
you get than that for your investment, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
The benefits to Newfoundland
and Labrador of our energy industry are not just monetary.
We are also building expertise.
Our offshore oil and gas industry is advancing with Newfoundland and
Labrador-based – and often homegrown companies – experts in harsh environment
research expertise and technology.
Newfoundland and Labrador has become synonymous with offshore oil and gas
exploration and production in challenging environments.
We are
making the most of our strategic location on international shipping lanes and
northern sea routes, our accessible ports, our strength in cold ocean research
and development, and world-renowned expertise in Arctic-like conditions.
Under the Arctic Opportunities Initiative, demonstrating the province as
“The Path to the Arctic”, building capacity and fostering economic growth and
business opportunities will remain important strategic directions for this
government. We are ready to
facilitates partnerships and promote collaboration, environmental
responsibility, sustainability and respect.
Our goal is to continue working with industry, industry associations,
academic and research and development institutes, Aboriginal organizations and
all levels of government to create an environment in which all stakeholders can
benefit from emerging opportunities in the Arctic and further attract global
industry leaders.
SOME HON. MEMBERS:
Hear, hear!
THE YEAR AHEAD
MR. WISEMAN:
Mr. Speaker, I want the
balance of my remarks to talk about some very specific decisions for the coming
year, sector by sector. I will
group these sectors generally into four categories: health, safety, education
and opportunity.
Health
Let us
begin with health. Through the
Department of Health and Community Services, we are allocating nearly $3 billion
for innovative and strategic investments to support the health and well-being of
residents across the province. This
Budget continues our focus on creating a health care system that supports better
health outcomes, provides better care and produces better value for money.
Long-term care and community support services are essential components of our
health system. We recognize the
importance of ensuring there is significant long-term care capacity to meet the
growing need. The Premier and the
Health Minister announced on Tuesday that we are going to engage with private
and non-profit providers to build long-term care facilities in the western and
central and the Northeastern Avalon regions of the province.
In addition, we are investing some $700 million this year in long-term
care and community supports, including our personal care homes.
Throughout our province, awareness of mental health and addictions challenges
that people face is growing. As a
government, we are committed to ensuring effective programs and services are in
place when people need them. This
year's Budget includes a number of important strategic investments to increase
access to programs and services that will make a real difference in the lives of
many Newfoundlanders and Labradorians.
For 2015, we have allocated $422,000 to provide youth outreach programs
and services to vulnerable and high-risk youth.
This includes funding of $202,000 for three youth outreach workers in the
Labrador communities of Nain, Hopedale, and Sheshatshiu, and $220,000 to Choices
for Youth for their youth outreach program.
It includes some $300,000 to continue the Strongest Families Program,
which provides care to families through a distance-coaching approach over the
phone and online in the comfort and the privacy of clients' homes, providing
family-centred care to meet each family's unique circumstance.
It also includes $114,900 in annual funding for the creation of a
provincial systems navigator position, as identified in the Premier's Summit on
Health Care, to assist patients and families in accessing mental health services
and addictions.
These
investments will build on the other investments that we have made in facilities
and services in recent years to address mental health and addictions challenges.
The Premier has been front-and-centre in recognizing that we need to work
strategically and collaboratively to ensure mental health and addictions
challenges receive the attention it deserves.
The Premier participated in the mental wellness event launched at Holy
Heart High School some months ago.
More recently, the government joined forces with the Opposition parties in an
all-party committee to look at mental health issues in the province.
We all recognize that we need to bring this area of health care out of
the shadows and find new approaches that will work more effectively.
Newfoundland and Labrador has among the highest per capita cost for health care
delivery in Canada. We know that
spending on the health care and community services system accounts for
approximately 40 per cent of this province's budget.
Costs associated with new equipment, new treatments, new medications and
growing demands for services pose a significant challenge and, without a change
in approach, health care will continue to consume an increasingly greater
proportion of our health care budget.
For this reason, along with taking the measures I announced at the
outset, we will continue to seek new and innovative high-quality approaches to
delivering health and community services to the people of the province.
A renewed focus on primary care can help find ways to improve quality and
access to services while reducing the cost of service delivery.
We will also examine why our costs for health care are higher than other
jurisdictions in Canada, and we will work to bring those costs more in line with
the rest of the country.
We will
continue to advance the Strategy to Reduce Emergency Department Wait Times, with
further investment of just under $1 million in Budget 2015.
We remain committed to providing timely access to care, and our emergency
departments represent one area where our continued focus is of the utmost
importance.
Other
health initiatives we will advance this year include continued investment in our
Provincial Home Support Program, which enables thousands of eligible individuals
who require assistance with daily living activities to remain in their homes.
Last year, more than $170 million was invested to provide home support to
approximately 9,000 seniors. Budget
2015 will see this total investment increase to almost $180 million.
The
Budget also includes $2.6 million to implement new drug therapies under the
Newfoundland and Labrador Prescription Drug Program.
We are also investing $172,800 to add the Rotavirus vaccine to the
Provincial Vaccine Program. This
vaccine protects infants from gastrointestinal illness, which can lead to severe
illnesses and hospitalization.
Since
2004, we have invested approximately $1.5 billion in health care infrastructure
for new facilities, repairs and renovations to existing facilities and new
equipment. In a province of more
than 500,000 people, there are fifteen hospitals, twenty-three community health
centres, 119 community clinics and twenty-three long-term care facilities.
Through the Department of Health and Community Services, we are investing
a total of $133.7 million this year in strategic initiatives to ensure access to
new and modern health facilities throughout Newfoundland and Labrador.
This includes funding for the completion of the long-term care home in
Carbonear; redevelopments at the Health Sciences Centre in St. John's; continued
work on the replacement of the Western Memorial Hospital in Corner Brook;
continued construction of the long-term care facility in Happy Valley-Goose Bay;
redevelopment of the Central Newfoundland Regional Health Centre in Grand
Falls-Windsor; and development of a new health centre in Springdale.
We are
also continuing to work on the protective care residence at Burin and the
installation of a PET scanner at the Health Sciences Centre.
The
Premier established the Department of Seniors, Wellness and Social Development
in September 2014 in an effort to realign divisions within government to focus
more clearly on emerging issues such as an aging population and the need for
overall wellness, and to help ensure all citizens are able to contribute to, and
benefit from, our economy.
The
focus on seniors acknowledges a challenging reality in Newfoundland and Labrador
– an aging populace – and the opportunities and challenges that brings.
Our government is committed to helping older adults remain healthy,
active and engaged citizens, living in their own homes as long as possible.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Mobility is one of those
challenges. This year, we are
investing $400,000 for age-friendly transportation services.
Another challenge is housing.
This year, we are also investing $104,000 to support the continuation of
a Rent Supplement Pilot Project, through Newfoundland and Labrador Housing,
which provides –
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Mr. Speaker, that program
provides rental subsidies to eligible applicants, primarily seniors and persons
with disabilities, who wish to remain in private sector rental accommodations.
Our
government is continuing its efforts to promote and improve the overall wellness
of the population of this province, from birth to senior years, through
initiatives that provide support and reduce barriers to healthy, active living.
We are linking people focused on healthy living and others who are
working to increase physical activity, recreational opportunities and sport
development. Through that process,
we see the work they are doing as a continuum, and we are eager to create a
forum in which we can work together to plan initiatives that will enable our
people to become healthier, more active citizens – role models for generations
to come.
We know
our population has serious challenges when it comes to healthy, active living –
not unlike many other jurisdictions.
We all have a part to play in changing that.
This
year, we will invest $5.9 million in community-based organizations and agencies,
which are advocates for health and wellness and deliver key programs and
services in our communities. We
will also invest $2.2 million for initiatives, programs and projects focused on
healthy living, recreation and wellness.
We will invest $500,000 and seek to leverage additional funding from the
private sector and the federal government to develop and implement a physical
activity program for school-aged children.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
We will also invest $500,000
to promote healthy living initiatives that support breastfeeding, healthy
eating, and school health.
Safety
A
second priority, alongside health care, is public safety, which is among our
highest priorities.
A key
component of the child protection model for the Labrador region includes
dedicated zone managers for the Innu and Inuit zones, and a collaborative
approach with Aboriginal leaders and communities to improve planning and enhance
service coordination and delivery.
Support of $475,000 in Budget 2015-16 reaffirms our commitment to ensure a more
consistent presence of frontline social workers and a greater interaction with
families in the Community of Natuashish through the Community of Natuashish
Service Enhancement Program.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
This program consists of
additional social work teams who fly in on a two-week rotation to support the
permanent staff that live there and work in the community.
Six new frontline positions will be created in Labrador in 2015-16.
On a provincial level, government has now met the organizational
commitment of a 1:20 ratio for social workers to caseload, all put in place
since the multi-year plan was announced in 2012.
Our
government is also allocating $278,600 to continue the mentoring program that
was established in Sheshatshiu.
Introduced in 2014, the program involves experienced child protection social
workers from other areas of the province serving as mentors to new social
workers to enhance their decision-making and provide clinical practice
guidelines.
We will
continue our Foster a Future campaign in 2015-16 through our investment of
$150,000. Furthermore, in an effort
to enhance the foster families in our Aboriginal communities, we are adapting
foster families training so that it is more reflective of Aboriginal
communities.
Public
safety is a priority in all areas of our province.
In January 2015, our government demonstrated a commitment to enhancing
safety through the creation of the Premier's Advisory Council on Crime and
Community Safety. This Council will
examine all aspects of crime in Newfoundland and Labrador and recommend new
strategies to prevent and reduce criminal activity and enhance safety in this
province.
We
recognize that the face of crime in Newfoundland and Labrador is changing and,
during the last five years, the province has seen an increase in the level of
violent crime. Proper resourcing of
our provincial police forces remains one of our government's top priorities.
Over the past decade, we have invested more than $1 billion in support of
policing operations and to ensure our officers are suitably trained and equipped
to respond to daily demands. The
Combined Forces Special Enforcement Unit – Newfoundland and Labrador is doing
tremendous work in curbing crime in our communities, and that work will
continue. For 2015-16, we are
providing approximately $3.5 million to the Royal Canadian Mounted Police to
enable them to renovate and construct detachments in rural areas.
Work will proceed on new detachments and renovations in Clarenville,
Twillingate and Whitbourne.
Through
ongoing and increased investments in policing this year's graduating class of
RNC recruits will be 31, the largest class since the inception of the MUN Police
Studies Program. This will bring the
total number of graduates to 254 since the first class was sworn-in in September
2005. And we will invest in an
additional 10 new recruits this year, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Intimate partner and
domestic violence is a very real and complex societal challenge impacting
everyone in Newfoundland and Labrador. Our
government is investing approximately $1.65 million this year and $4.7 million
over the next three years for the establishment of a new Domestic Violence Court
with extended reach. This amount
includes $100,000 to enable us to work with stakeholders in Labrador, including
Aboriginal communities, to develop a culturally and regionally tailored Domestic
Violence Court model for Labrador.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
In his 2013 report entitled,
“Access to Justice – A Roadmap for Change”, Supreme Court of Canada Justice
Thomas Cromwell noted a strong need to improve access to civil and family
justice in Canada, particularly for the most vulnerable in our society.
Our government will invest almost $1.5
million in 2015-16 to improve access to justice for all participants in the
court process in this province.
In
2015-16, a new judge will be appointed to the Provincial Court in Clarenville,
new court officers will be hired in St. John's and in Harbour Grace, and 10
video conferencing units will be replaced or installed within the court system.
Our
government will continue to support the Legal Aid Commission in implementing
outstanding recommendations of the Roil Review completed in 2014.
Specifically, we will put funding in
place to increase the tariff rate, which is the rate that is paid to private
practice lawyers who provide legal services for legal aid.
The current rate will increase from $60 per hour to a maximum of $135 per
hour. This will mark the first increase
since the 1970s, and will ensure that people entitled to representation by
private practice practitioners receive enhanced access to criminal legal advice.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Funding will also be
allocated to implement Phase II recommendations of the Roil Review.
Promoting public safety on our highways is another priority of our government.
We also recognize that, in our province, especially on the Island
portion, the moose population is particularly vulnerable and a very valuable
natural resource. We acknowledge
our Five-Year Moose Management Plan, announced in April and supported by a $1.8
million investment over the next five years through Budget 2015-16.
The plan is a coordinated, regional, scientifically based and balanced
approach to managing the moose population and mitigating moose-vehicle
accidents.
Education
A third
specific area of investment, besides health and safety, is education.
This
year, we are investing $926 million in a wide range of initiatives, such as the
continued implementation of our 10-year child care strategy, Caring For Our
Future, as well as the significant investments in our K-12 infrastructure.
Caring For Our Future is now in its fourth year and has been tremendously
successful in enhancing the quality, the affordability and sufficiency of child
care in our province.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Since 2003, we have
increased the number of regulated child care spaces by 70 per cent and we will
continue to build on that momentum by investing an additional $3.2 million to
continue the implementation of this strategy, bringing this year's budget to
$45.7 million.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Mr. Speaker, this includes
an additional investment of $1 million in the new voluntary Operating Grant
Program, which was launched this past December and has had a very encouraging
uptake from the child care operators.
Our
government also remains committed to the implementation of full-day
kindergarten.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Budget 2015 will invest over
$10.5 million to ensure it is provincially implemented beginning in September of
2016.
As we
announced in this year's Speech from the Throne, we are proceeding with a K-12
curriculum renewal in many areas, such as English Language Arts, Science,
Health, Social Studies and French programs.
We will be developing a 21st -century curriculum, employing
methods that integrate innovative and research-driven teaching strategies,
modern learning technologies and relevant resources and contexts, and focusing
on learning skills that address the needs of a new generation of students.
We will also convene a group of educational leaders to review our Math
performance.
Our
government continues to support students with exceptionalities.
Through the Newfoundland and Labrador
Teachers' Association Collective Agreement, an Inclusive Education Joint
Committee has been established to examine the opportunities and challenges with
Inclusive Education and chart the best way forward.
Budget 2015 will invest some $500,000 which will provide approximately an
extra 100 student assistant hours per day to students in the province's schools.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Through our work with our
Atlantic Canadian partners, educators and support personnel throughout
Newfoundland and Labrador will have access to a new online Autism Spectrum
Disorder training program. Our
government is committed to working with our community partners and supporting
these initiatives to ensure we meet the educational needs of our students.
Beginning this year, we are implementing a multi-year K-12 school infrastructure
plan to address both the shorter-term and longer-term needs throughout the
province. Under the plan, we are
allocating over $95 million for school infrastructure projects this year,
including funding to begin planning for seven new major school infrastructure
projects to address student population growth.
We are committing to build new intermediate schools for Paradise and the
Witless Bay/Mobile area. We will
also begin the planning for a new high school in Paradise and three school
extension projects in Conception Bay South, Clarenville and Mount Pearl.
We are also allocating funding to begin planning for the anticipated
significant population growth in Conception Bay South.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Budget 2015 also allocates
funding for seven modular classrooms; ongoing construction projects in the
following communities: Paradise, Conception Bay South, Mount Pearl, Virginia
Park, Torbay, Portugal Cove- St. Philip's, Coley's Point and Gander; and the
completion of the Waterford Valley High School all in this year, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
In addition to the
infrastructure funding committed in Budget 2015, over $600 million has been
spent on K-12 school infrastructure since we formed government back in 2003, Mr.
Speaker. This includes some 14
new schools that have opened; eight more in various stages of planning or
construction; 27 major extensions and renovation projects that have been
completed, and 10 more are underway; and more than 1,900 repair and maintenance
projects that have been undertaken, a major transformation of our K-12 system.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Overall, our investment in
the K-12 education will increase this year over last, reflecting the high
priority we place on the education of our children.
But our investment in education is not just in the K-12 system.
More and more, our K-12 graduates need post-secondary education to
complete their careers. Our
government's priority is to ensure that Newfoundland and Labrador students have
access to high-quality post-secondary education at an affordable cost.
We are proud of our record of investments in post-secondary education and
we will continue to support students during these challenging fiscal times.
Budget 2015 provides some $12.6 million to follow through on our
commitment to eliminate the provincial student loans program and replace those
loans with upfront, non-repayable grants.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Mr. Speaker, this will
enable Newfoundland and Labrador students to accumulate far less provincial debt
during the course of their studies and have the lowest student debt in the
country.
Approximately $20 million in 2015 will go towards skilled trade development and
a variety of initiatives to revitalize the apprenticeship system.
Funding is also being provided to the College of the North Atlantic to
continue with the development of the labs at the Grand Falls-Windsor campus.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Mr. Speaker, those labs are
important to the operation of the medical laboratory sciences program.
Funding has also been provided to continue the tuition freeze for
students at the College of the North Atlantic.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Mr. Speaker, the power to
set tuition fees at Memorial University rests ultimately with Memorial's Board
of Regents. For years, we have
provided funding increases to Memorial with the desired outcome that the Board
would hold the line on tuition fee increases.
Those funding increases have totalled some $238 million.
Memorial's tuition fees are now the lowest in the country, in many cases
by an enormous margin. As our
government moves forward to find efficiencies and savings throughout the public
sector, we are asking Memorial to do the same and reducing its overall operating
grant from the previous fiscal year by approximately $20 million.
Through Budget 2015 the Provincial Government will continue to support a
tuition freeze for Canadian undergraduate students at Memorial University –
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
– and is providing the
funding to maintain that freeze. As
a result of this funding, tuition will remain the lowest in Canada.
SOME HON. MEMBERS:
Hear, hear!
Opportunity
MR. WISEMAN:
Finally, a fourth area of
public investment is the promotion of opportunities – opportunities for regional
growth, for business growth and for personal growth through employment.
Budget
2015 includes over $185 million for the Poverty Reduction Strategy initiatives
that are designed to prevent, reduce and alleviate poverty, bringing the total
investment in poverty reduction since 2006 to over $1.2 billion, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Budget 2015 investments
include over $25 million for early learning and child care initiatives designed
to ensure all children have the opportunity to develop to their full potential;
and also $12.2 million for the Low Income Tax Reduction Program, which
represents a $1.1 million increase over last year.
Newfoundland and Labrador Housing will continue with the Home Modification
Program, the Residential Energy Efficiency Program and a five-year extension of
the cost-shared Affordable Housing Agreement.
Essential to promoting opportunity is inclusiveness.
Our government is committed to building a more inclusive society, without
barriers and where appropriate supports are in place so our residents can avail
of programs, services and opportunities to live meaningful, healthy, active
lives. Close to 75,000
Newfoundlanders and Labradorians have a disability.
Almost 60,000 are over 15 years of age, and 60 per cent of this group is
of working age between 15 and 64 years of age.
In 2015, we will release our three-year action plan to further guide
implementation of initiatives under the “Access. Inclusion. Equality. A Strategy
for the Inclusion of Persons with Disabilities”.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Since its inception in 2012,
this strategy has focused on enacting changes in policies, services, program and
attitudes so that people with disabilities and their families have the same
opportunities as everyone else.
This
year, we will invest $400,000 for the Accessible Vehicle Program, which helps
individuals with mobility disabilities to acquire or adapt personal vehicles for
accessibility.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Mr. Speaker, this funding
also includes $50,000 to help our province's taxi industry provide accessible
taxis.
We will
also invest $200,000 for inclusion grants, which help communities and
organizations make their facilities and events more accessible.
The grants will cover such projects as
the installation of accessible washrooms, automatic doors and visual smoke
alarms; the provision of accessible playground equipment; and the use of sign
language services and captioning at all events.
For
communities, a fundamental ingredient needed to avail of opportunities for
growth is infrastructure. I have already
outlined many infrastructure investments in health, education and public safety,
but there are others. Through Budget
2015, we are allocating approximately $204 million for investments in our
provincial roads, bridges and other transportation infrastructure.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
As part of this investment,
we are allocating approximately $70 million for our Provincial Roads Program,
which includes a number of multi-year projects, along with the continuation of
our brush clearing and our calcium chloride dust suppression programs.
Another part includes some $21 million
for our summer maintenance program. A
third part includes almost $55 million for our winter maintenance program.
Through
an allocation of approximately $13 million, we will advance work to upgrade
bridges throughout the province. In
addition to this, Budget 2015 provides for over $5 million to begin construction
on the Sir Robert Bond Bridge and approximately $21 million to continue with the
Placentia Lift Bridge.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
We are allocating over $86
million to provide marine services to some twenty-three isolated communities.
Our province's marine operation and
ferry fleet are among the largest in the country, with eighteen vessels that
operate out of forty-two ports. We are
investing $13 million for renovations to wharf and infrastructure associated
with our two new ferries for Fogo Island-Change Islands and Bell Island.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
This year's budget also
allocates over $41 million as part of a total investment of over $126.7 million
for the purchase of the new vessels.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
In Labrador, we are also
allocating $351,000 to continue the Labrador Transportation Grooming Subsidy,
which maintains a quality winter snowmobile trail system connecting otherwise
isolated coastal Labrador communities throughout the winter months.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
The paving of the
Trans-Labrador Highway represents one of the largest infrastructure projects
even undertaken in this province.
The first phase, which spans almost 530 kilometres from Labrador City and Wabush
to Happy Valley-Goose Bay, will be finished this summer through a Budget 2015
allocation of $5 million.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Widening for Phase II and
Phase III will continue to progress through a $50 million investment this year.
These investments are in addition to the $510.7 million that has already
been invested in this project.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
It is vital that we continue
to promote and positon Newfoundland and Labrador as a competitive economy, with
recognized international strengths and advantages.
We remain firmly committed to strengthening the business environment and
developing innovative industries.
Through Budget 2015, we are investing some $102 million in continuing tax
credits and incentives for businesses, including the most recently announced
Venture Capital Tax Credit.
Budget
2015 includes a commitment to continue venture capital funding to advance growth
sectors like ocean technology, information technology, knowledge-based
industries and business services with emphasis on export markets.
The program builds on the existing business flexible loans and
non-repayable investments that support diversification, increased productivity,
skills development and export market access.
We
remain committed to improving the global competitiveness of local companies,
strengthening employment opportunities and driving economic diversification in
Newfoundland and Labrador. Our role
is to champion success and to help create a climate that allows business
operators to prosper. With more
than $44 million available through Budget 2015 to support start-up businesses,
emerging growth sectors and regional development activities, we are securing
economic success for generations to come.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Mr. Speaker, we recognize
that innovation goes beyond the development of new and novel products and
services. To meet these growing
needs, Budget 2015 will introduce a new Interactive Digital Media Tax Credit to
assist with employment retention and investment in this growing and dynamic
sector. This credit will be applied
to positions that are directly related to the development of interactive digital
media products, such as game designers, programmers, artists and composers.
A total
investment of approximately $4 million in equity investment and tax credit by
our government will support the new television series,
Frontier.
It is estimated that every $1 invested by the provincial government will
result in $4 of production activity and $2.95 in direct spending.
Approximately 165 full-time equivalents are expected to be created –
positions rather – in this province as a result of that project.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Tourism, culture and
heritage are fundamental components of our government's continued focus on
promoting economic growth and diversification.
Between 2009 and 2014, non-resident visitation has increased by 22 per
cent, while non-resident tourism spending has increased by 36 per cent, reaching
some $491 million in 2014, the highest level of non-resident spending ever in
this province.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Our investments have led to
an award-winning tourism marketing campaign that is seen and recognized
worldwide. To build on this
momentum, Budget 2015 provides for an additional $2 million in the tourism
marketing budget, bringing the total budget for tourism marketing to $13 million
annually.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
We are also providing
$500,000 to sponsor the 2016 Labrador Winter Games, a unique event that happens
once every three years.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Budget 2015 also includes an
investment of $420,000, as part of a $1.2 million multi-year plan, to preserve
the province's heritage assets, which will include enhancements to the Point
Amour Lighthouse Provincial Historic Site and improvements at sites in Trinity,
the Bonavista Lighthouse, the Heart's Content Cable Station and Commissariat
House. We are also working on
visitor interpretation for the restored Colonial Building.
The
Mistaken Point Ecological Reserve is home to fossils of the oldest creatures –
in fact, the oldest complex life forms – found anywhere on Earth.
Through Budget 2015, two additional seasonal interpreters will be added
to the site at Mistake Point.
Through
Budget 2015, we will provide nearly $12 million through such programs as Growing
Forward 2, the Agriculture and Agrifoods Development Fund, the Provincial
Agrifoods Assistance Program, the Land Consolidation Program, the Agriculture
Research and Development Program and the Agricultural Limestone Program.
We will continue to support the province's cranberry industry with a new
investment of $1 million this year.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Through Budget 2015, our
government will provide close to $30 million for silviculture projects,
construction of resource roads for timber harvesting, forest insect and disease
control, forest fire control measures, research and development and regional
operations. Capital funding is also
continuing for the multi-year water bombers project, which is providing support
for our forest industry.
Newfoundland and Labrador remains the only province in Canada to solely fund its
own fisheries science research to help ensure future sustainability and success
in our fishing industry. Since
2010, our government has contributed more than $15 million towards world-class
fisheries science initiatives through the Marine Institute's Centre for
Fisheries Ecosystems Research. This
includes some $2.6 million in Budget 2015 to continue with the centre's work,
including the charter of the Irish Marine Institute's research vessel, the
RV Celtic Explorer, for a fifth
consecutive year to conduct further research on our rebounding groundfish
stocks, in particular the northern cod.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
In fact, the vessel is due
to arrive in St. John's next week to start its research.
Budget
2015 also provides $1 million for the Canadian Centre for Fisheries Innovation
to conduct fisheries and aquaculture development activities, and includes
developing technology that drives innovation and greater economic returns for
our industry.
Since
the Fisheries Technology and New Opportunities Program was first introduced,
more than 280 projects have been supported for research and development into
enhanced harvesting, processing and marketing techniques.
Budget 2015 provides $1 million to continue this program, bringing total
commitments under the program to approximately $14 million since 2007.
The
province's fishing industry will benefit from the virtual removal of the
European Union tariffs aimed at our seafood exports.
Once the Comprehensive Economic and
Trade Agreement, or CETA, is in place, local producers will be able to take
advantage of new markets to sustain local operations for a long period of time.
We are counting on Ottawa to provide its
$280 million share of a $400 million fisheries renewal fund so local operators
can prepare to take full advantage of the opportunities that lie ahead.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Budget 2015 allocates a
further $2.8 million under the Aquaculture Capital Equity Investment Program to
expand this growing and promising sector. An
investment of nearly $1 million will also see the completion of a biosecure
aquaculture wharf in Milltown. In
addition, more than $1 million over the next two years will fund oceanographic
research to support further expansion of the aquaculture industry, by expanding
bay management through the identification of other locations throughout the
province where growth in the aquaculture sector could mean new and sustainable
opportunities for local residents.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Retailers in Labrador West
have expressed concern that the difference in tobacco tax rates in this province
and Québec is hurting their sales across the board as consumers drive over the
border to shop, not just for tobacco products but all other products.
We have no interest in promoting the
sale of tobacco, but we have heard the retailers and their concerns about the
impact of the situation they face in Labrador. Therefore,
effective 12:01 a.m. on May 1, 2015, tobacco retailers in Labrador West will be
eligible for a rebate of a portion of tobacco tax.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Mr. Speaker, throughout
Labrador, we are continuing to invest in our communities to improve
infrastructure, health, education, wellness and other services while supporting
economic growth and sustainable futures. By
the end of this fiscal year, our government will have allocated a total of some
$5.5 billion in Labrador since 2004.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
We will continue to provide
funding to the Labrador and Aboriginal Affairs Office to help it advance its
important work that includes our government's commitment to partnering with
Aboriginal people, both in Labrador and the Island.
This
year, we are investing some $43,000 to enable youth delegates from Labrador to
attend the Youth Council Convention.
We are
allocating some $50,000 to continue the Air Foodlift Subsidy which helps offset
the air freight costs on fresh milk and perishable food items shipped into
isolated Labrador communities.
We are
also providing some $100,000 in operational funding for the Combined Councils of
Labrador.
We are
committed to developing a new plan for Labrador that will build upon the
government's work since 2003 and reflect the changing realities in Labrador.
We will engage with Labradorians once more to have them voice their
opinions and ideas, and we will develop a new plan that meets the current
realities, the challenges and the opportunities in Labrador.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
We believe it is vital to
consult with Labradorians at every step along the way, to help set future
priorities for Labrador and to ultimately inform the development of a new
strategic plan for Labrador.
And
finally, we recognize that driving the growth of opportunities goes hand-in-hand
with driving the growth of a population.
One advances the other.
Budget 2015 will support the implementation of a Population Growth Strategy to
cultivate conditions favourable to increasing the province's population.
Our
province's business community recognizes – as we do – that fostering immigration
is an essential growth opportunity.
Through our efforts in partnership with the Government of Canada we have just
announced a 250 per cent increase in our province's overall ability to nominate
individuals to come to the province, bringing the total now to 1,050.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
As we embark on the next
phase of our transformation to a thriving renewable energy economy, we will be
welcoming more and more people to join us in driving opportunities in our
communities and making Newfoundland and Labrador their home.
CONCLUSION
Mr.
Speaker, from the northernmost reaches of Labrador to the southernmost coasts of
the Island portion of the province, we are proud of how far we have come since
2003. We are even more enthusiastic
and excited looking forward because the long-term future of our province is
brighter now than it has ever been, thanks to the choices that we have made in
the decade since we have been in government.
Some may question the choices that have led us here, but the
transformation, Mr. Speaker, has been undeniable.
What is also undeniable is that the
major renewable energy resource projects that are at the doorstep will ratchet
up Newfoundland and Labrador's benefits to a whole new level, completing that
transformation and sustaining our newfound prosperity for generations to come.
None of his happened by accident; this was not a coincidence, Mr.
Speaker. We have raised our
fortunes through deliberate choices and deliberate actions.
This growth would not be happening were it not for the leadership that we
have demonstrated.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Our choices are responsible
for the fact that Newfoundlanders and Labradorians are better off today than
they have ever been before in our history.
If we
stay the course we are on, even greater gains await us in the next five years.
If we abandon the course we are on, then all bets are off.
That is why the issue of choice is so important to our prospects for
growth. They are inextricably
linked. This year's Budget is all
about choices – the choices that we are taking now to lead us through the next
phase of even greater growth. I
have laid out the eight principles that we believe can best guide us to
stronger, leaner, more responsible governance and better, more affordable
services for the people of Newfoundland and Labrador.
I have laid out a five-year plan that bridges the commodity revenue dip
and gets us back to a surplus, step by responsible, reasonable step.
There will be no jolts to send our economy over an embankment.
It will be a steady, it will be a responsible, it will be a measured plan
that supports our economy and fuels the gains that will lead us forward.
This Budget is about balance, balance and choices, Mr. Speaker.
It about the future.
It is about making the connection between the two, because it is only
through balanced choices that a sustainable future is in our path.
If we shift too far in either direction the line is very fine and, the
balance, we need to maintain.
Newfoundland and Labrador will slide back into that pit that we have been
crawling out of for the last 10 years if we are not careful, Mr. Speaker, and
that is why it is important that we make the right choices.
It is imperative that we understand what is at stake here when we weigh
the choices before us. It is more
important now than ever before to choose wisely, for it is only the balanced
choices that will unleash the promising future that we as government has clearly
laid out for us. Our vision is 20/20,
and the future we see so vividly before us is so exceptionally bright, Mr.
Speaker. Let us not deny future
generations the legacy that they are so entitled to, but let us make the right
choices for the children of Newfoundland and Labrador.
Thank
you, Mr. Speaker.
SOME HON. MEMBERS:
Hear, hear!
MR. WISEMAN:
Mr. Speaker, I move,
seconded by the Premier, that debate be now adjourned.
MR. SPEAKER:
The motion is that debate be
now adjourned.
All
those in favour, 'aye.'
SOME HON. MEMBERS:
Aye.
MR. SPEAKER:
All those against, 'nay.'
Carried.
On
motion, Budget Debate adjourned.
MR. SPEAKER:
The hon. the Minister of
Finance.
MR. WISEMAN:
Mr. Speaker, I wish to
inform the House that I have received a message from His Honour the Lieutenant
Governor.
I am
sorry, His Honour the Administrator.
MR. SPEAKER:
All rise.
The
following message is addressed to the Minister of Finance:
As
Administrator 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 2016, in the aggregate of $7,541,808,100, 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.:
___________________________
Administrator
You may
be seated.
The
hon. the Minister of Finance.
MR. WISEMAN:
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 has been moved and
seconded that the Message from His Honour the Administrator, together with the
Estimates, be referred to a Committee of Supply and that I do now leave the
Chair.
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 on Supply,
Mr. Speaker left the Chair.
Committee of the Whole
CHAIR (Littlejohn):
Order, please!
We
shall take a few minutes to distribute the budgetary documents to all hon.
members.
[Budgetary documents are distributed]
CHAIR:
Order, please!
The
hon. the Government House Leader.
MR. KING:
Thank you, Mr. Speaker.
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 (Verge):
The hon. the Member for
Port de Grave.
MR. LITTLEJOHN:
Mr. Speaker, the Committee
of Supply have considered the matters to them referred and have directed me to
report they have made some progress and ask leave to sit again.
MR. SPEAKER:
The Chair of Committee of
Supply reports the Committee have considered the matters to them referred and
have directed him to report they have made some progress and ask leave to sit
again.
When
shall the report be received?
MR. KING:
Tomorrow.
MR. SPEAKER:
Tomorrow.
When
shall the Committee have leave to sit again?
MR. KING:
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 Government
House Leader on Notices of Motion.
MR. KING:
Thank you, Mr. Speaker.
By
leave, I give notice of Committees for Estimates and the composition for these
Committees.
The
Resource Committee will consider of members for the following districts:
Grand-Windsor – Green Bay South; The Straits – White Bay North; Bonavista North;
Labrador West; Carbonear – Harbour Grace; Fortune Bay – Cape La Hune; and Signal
Hill – Quidi Vidi.
The
Government Services Committee will consist of the members for the districts of:
Exploits; Mount Pearl South; Kilbride; Bellevue; Cape St. Francis; St. John's
East; and Trinity – Bay de Verde.
The
Social Services Committee will consist of members for the following districts:
Port de Grave; Port au Port; Cartwright – L'Anse au Clair; St. John's Centre;
Bonavista South; Baie Verte – Springdale; and St. John's North.
Mr.
Speaker, I also give notice, and by leave, that the following heads of
expenditure be referred to the Resource Committee, the expenditures for:
Advanced Education and Skills; Business, Tourism, Culture and Rural Development;
Environment and Conservation and Climate Change and Energy Efficiency; Fisheries
and Aquaculture; Forestry and Agrifoods; and Natural Resources.
I also
give notice that the following heads will be referred to the Social Services
Committee: the Department of Child, Youth and Family Services; Education and
Early Childhood Development; Health and Community Services and Office of Public
Engagement; Justice and Public Safety; Municipal and Intergovernmental Affairs
and the Labour Relations Agency; Newfoundland and Labrador Housing Corporation;
and Seniors, Wellness and Social Development.
As
well, the following shall be referred to the Government Services Committee: the
Department of Finance and the Public Service Commission; Government Purchasing
Agency; Service Newfoundland and Labrador; and the Department of Transportation
and Works.
Mr.
Speaker, I also give notice to members that on Monday, May 3, 2015, the
Government Services Committee will meet in the House at 9:00 a.m. to review the
Estimates of the Government Purchasing Agency.
Also on
Monday, the Social Services Committee will meet in this House at 6:00 p.m. to
review Estimates of the Department of Seniors, Wellness and Social Development.
Thank
you.
MR. SPEAKER:
Further notices of motion?
The
hon. the Minister of Finance.
MR. WISEMAN:
Thank you, Mr. Speaker.
I give
notice that I will move that the House resolve itself into a Committee of the
Whole to consider a resolution respecting the imposition of tax on income, Bill
6.
Mr.
Speaker, I give further notice that I will ask leave to introduce a bill
entitled, An Act To Amend The Revenue Administration Act, Bill 7.
Mr.
Speaker, I also give notice that I will ask leave to introduce a bill entitled,
An Act To Amend The Service Charge Act, Bill 8.
MR. SPEAKER:
Further notices of motion?
The
hon. the Government House Leader.
MR. KING:
Thank you, Mr. Speaker.
At this
time I move, seconded by the hon. the Premier, that further Orders of the Day be
deferred and the House do now adjourn.
MR. SPEAKER:
The motion is that this
House do now adjourn.
All
those in favour, 'aye.'
SOME HON. MEMBERS:
Aye.
MR. SPEAKER:
All those against, 'nay.'
Carried.
This
House now stands adjourned until Monday, at 1:30 o'clock.
On
motion, the House at its rising adjourned until tomorrow, Monday, at 1:30 p.m.