"It is my understanding that $2.1 million is being cut over a two year period and most of the cuts are happening outside St. John’s," said Butler. "I would like the minister to confirm or deny that seven managers have recently received notice that they will finish work on September 17^th of this year and other support staff have already been let go. It is my understanding that employees are being laid off in Grand Falls, Marystown, and Gander. Two positions which were vacant in St. John’s will not be filled. "

Butler says the way government is trying to quietly slip these reductions of government employees in centres outside St. John’s is reprehensible. "They are in the media talking about developing a strategy for rural Newfoundland and Labrador but in the background they are quietly centralizing government operations and cutting services to rural areas of this province.

"This trend to centralize damages the ability of the provincial government to make a case to the federal government that we need a stronger federal presence in this province. How can we go to them and say decentralization is the way to go at the same time operations of the provincial government are in the process of being centralized."

Newfoundland and Labrador Housing Corporation (NLHC) is the housing arm of the provincial government. NLHC was incorporated on May 9,1967 following a series of housing conferences held throughout the province. The aim in creating the new corporation was to provide an agency which would have the necessary legislative authority and the capacity to embark upon a major housing and land development program. The NLHC reports to government through Joan Burke, Minister of Human Resources Labour & Employment.