House of Assembly
Newfoundland and Labrador

Oral Questions
December 11, 2008

HomeIn the House | Question Period

MS JONES: Thank you, Mr. Speaker.

My questions today are for the Premier and the Minister of Natural Resources. I understand they are at a photo op, so I will address my questions -

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MS JONES: - to the government and we will see who answers.

Mr. Speaker, back in March of this year, AbitibiBowater sold almost $500 million in bonds in an attempt to restructure a $1.4 billion corporate debt. At that time there was some speculation as to whether the corporation would be able to repay its creditors or if they would be forced into a bankruptcy position. Now, Mr. Speaker, we have seen the stock in this company fall from $26.13 down to, I think on Tuesday, it was forty-one cents.

So I ask the government today, international media reports are telling us and indicating that there could be a possible bankruptcy position. I ask the minister today to inform the House as to what the status of that is, and if AbitibiBowater is looking to file bankruptcy?

MR. SPEAKER: Order, please!

The hon. the Minister of Innovation, Trade and Rural Development.

SOME HON. MEMBERS: Hear, hear!

MR. SKINNER: Thank you very much, Mr. Speaker.

As well all know in this House, we are indeed in challenging times. We are experiencing difficulties, not just in this Province but right across the global economy.

We are aware of the challenges that AbitibiBowater as a company are facing. We are looking at the options and the alternatives that may come from the situation they find themselves in. They may be in a situation of bankruptcy or receivership, they may bounce back and maybe become a very profitable and productive company, but as it is right now, Mr. Speaker, they are a company that is open. It is operating. It has many operations throughout the world. They are still operating and we will monitor the situation as we have done to ensure that our rights as a government and the rights of the people who work with Abitibi, who are residents of this Province, are protected.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Opposition.

MS JONES: Thank you, Mr. Speaker.

You may not know about whether the company is in a position to file bankruptcy today or not, but the international media is certainly speculating about it.

The minister can tell me this. If the company declares bankruptcy, what will be the impact on the severance packages for the workers and the pension plan for the workers at AbitibiBowater in Grand Falls-Windsor?

MR. SPEAKER: The hon. the Minister of Innovation, Trade and Rural Development.

SOME HON. MEMBERS: Hear, hear!

MR. SKINNER: Mr. Speaker, speculation can be a dangerous thing. So, I am not going to propose to enter into a debate about what other people are speculating is going to happen or is not going to happen to Abitibi. What I will say is that this government is very much engaged in the process. We are very much engaged with the people of Grand Falls-Windsor and region. We are engaged with the union locals who are involved with the people out there, the employees out there, not only with the mill but in the service industries that supported the mill operations and we are very much aware of what is happening. We will look at the options as they present themselves to us. We have alternatives that we are looking at and as we need to play our cards, we will play them.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Opposition.

MS JONES: Thank you, Mr. Speaker.

Far too often in the last two to three weeks we have seen nothing only reaction from the government opposite every time an industry in this Province collapses.

Minister, I am not talking about speculation, talking about facts. If AbitibiBowater claims bankruptcy, what will be the impact on the workers’ severance pay, on their pension plans, and are there safeguards in the contract to protect those people?

MR. SPEAKER: Order, please!

The hon. the Minister of Innovation, Trade and Rural Development.

SOME HON. MEMBERS: Hear, hear!

MR. SKINNER: Thank you, Mr. Speaker.

Once again, Mr. Speaker, I will not enter into trying to debate the speculation that is being tossed about in terms of what is happening, what may not happen over there.

As I indicated, we are engaged, Mr. Speaker, with the individuals who are employed in that company through their unions. We are engaged with the municipal leaders out there. We have a number of options that we are looking at to ensure that our position as a government regarding our rights and the positions of the employees, regarding their rights are all being looked at to make sure that we have everybody covered. That is all I will say at this point.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Opposition.

MS JONES: Mr. Speaker, this is ridiculous! This is a company that has been shopping around New York City since March of this year trying to raise capital to cover the debts in the company. This is a company that in the last two days have been in the national media, possibly going to claim bankruptcy.

I ask the minister: Have you and your government even looked at the contract agreement that exists between the union workers and this company to ensure that there is protection there for these workers if this is to happen?

MR. SPEAKER: Order, please!

The hon. the Minister of Innovation, Trade and Rural Development.

SOME HON. MEMBERS: Hear, hear!

MR. SKINNER: Mr. Speaker, I am glad to see that Abitibi is out doing what it can to ensure the stability of its operations, and I hope they continue to do that. That is exactly what we want to see them doing.

In terms of us ensuring as a government the kinds of things that are being done to protect our rights as a Province and the rights of the employees, as I have said already, we have had many discussions with the union leadership out there. We have identified things that are of importance to the union leadership and important to their employees. We jointly are looking at the impact of those kinds of things. That is the kind of work that the people of Grand Falls-Windsor and region, the kind of work that the people involved with the unions want us to be involved with, and that is exactly what we are doing.

Thank you.

MR. SPEAKER: Order, please!

The hon. the Leader of the Opposition.

MS JONES: Mr. Speaker, every day this week we have raised issues in the House around the economy, and getting updates on the economy. Yesterday we asked the minister questions about the mining sector; yet, there was no indication of layoffs that were coming in Duck Pond Mine. Mr. Speaker, maybe the minister again did not know about it until her phone rang, but we know there were layoffs yesterday at Duck Pond.

I ask the minister today to give us an indication as to whether there will be more layoffs at Duck Pond and what the long-term plan is for that operation in Central Newfoundland.

MR. SPEAKER: The hon. the Minister of Innovation, Trade and Rural Development.

SOME HON. MEMBERS: Hear, hear!

MR. SKINNER: Mr. Speaker, there were seventeen full-time positions, as I understand, people who were laid off yesterday, six part-time. We have had discussions with the manger of Duck Pond Mine. That is all that they expect to happen right now.

As I have indicated earlier, there are challenges in the global economy, there are challenges in terms of the market prices for some of the minerals and some of the natural resources that are being produced in some of these mines, and there have to be adjustments made by the management of the companies to compensate for that. We have still 240-250 people working in Duck Pond, a very healthy workforce, a very healthy mine, and we expect that to continue.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Opposition.

MS JONES: Thank you, Mr. Speaker.

Yesterday we asked about IOC and if there were any additional layoffs or any additional downscaling or downsizing plan for that particular company. The minister said she would talk to the officials in IOC yesterday afternoon.

I would like to ask for an update on what the plan is for Labrador City’s operations.

MR. SPEAKER: The hon. the Minister of Innovation, Trade and Rural Development.

SOME HON. MEMBERS: Hear, hear!

MR. SKINNER: Mr. Speaker, the minister did, in fact, speak to Mr. Terry Bowles at the company. He indicated that what was said by the minister yesterday basically is what he reiterated to her. He also indicated that there is a board meeting happening today in Montreal.

When asked whether or not he felt there would be any further changes to the company’s plans, whether it be any further disruptions, he indicated that no, he did not think there would be. So we are expecting that the information that was presented by the minister yesterday is still the current information.

Thank you.

MR. SPEAKER: The hon. the Leader of the Opposition.

MS JONES: Thank you, Mr. Speaker.

We all know that in Labrador West right now there is a very serious situation with the closure of Wabush Mines being forecasted, and the downsizing and the suspension of expansion plans at IOC.

Yesterday, I asked the minister if she was prepared to look at a task force to work with that region of the Province, to look at future alternative in industry. She said she was not asked, which I thought was a very lame excuse, but I will ask again today: Have you reconsidered? Is there an opportunity that will see some interest taken in Western Labrador and some action on behalf of the government?

MR. SPEAKER: The hon. the Minister of Human Resources, Labour and Employment.

SOME HON. MEMBERS: Hear, hear!

MS SULLIVAN: Thank you, Mr. Speaker.


I would like to report that, as of the last two days, we have been in contact with the union representatives in those areas. We have offered them the support of Human Resources, Labour and Employment. We have laid down some strategies for them already in terms of a suite of labour market opportunities that we hope to be able to work out. We have also addressed some issues with them in terms of financial pieces, in terms of how they might be able to understand their options in the next coming weeks, and how they can best prepare for what will happen in their case.

We are very excited about being able to reach out and, in fact, what we heard back from the union representatives in both of those areas was that they were extremely happy with the fact that we had made contact with them.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Opposition.

MS JONES: Thank you, Mr. Speaker.

Training or retraining is not going to be the entire answer, I say to you, Minister, for all of the problems that are existing in Western Labrador.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MS JONES: When we got the news on AbititiBowater –

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The hon. the Leader of the Opposition.

MS JONES: Mr. Speaker, when the news came on AbititiBowater there was no less than five or six Cabinet ministers on the way to Central Newfoundland, and so it should be.

I ask: When is the same attention going to paid to Western Labrador? In the last two weeks, I am not aware that there was even a minister who went in there to meet with the groups, to meet with the organizations, to meet with the leadership, and to start putting in place plans to deal with the problems that exist in that area. When is that going to happen?

MR. SPEAKER: The hon. the Minister of Innovation, Trade and Rural Development.

SOME HON. MEMBERS: Hear, hear!

MR. SKINNER: Mr. Speaker, as the member well knows, the response in Grand Falls-Windsor was in response to AbititiBowater indicating that they were closing down an operation. The response in Labrador West is an adjustment that is being made; a temporary adjustment is what we expect it to be. Should we feel that we need to make a move to go up and support the people there, we will certainly engage in that process. Right now, as been indicated by my colleague, we have reached out to them, to involve ourselves with them. If we feel, and if they feel, that we need to have more engagement with them, we would be certainly happy to do that; but, as I understand it, the response that we have had as a government to date has been deemed appropriate and we are happy with that.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Opposition.

MS JONES: Closing down a mine and laying off 160 workers is not a temporary interruption, I don’t think, Minister.

Let me ask you this. There has been a proposed new hospital on the table for a number of years in Labrador West, and an infrastructure project for the college. We have seen very little or nothing happening around those infrastructure projects.

I ask the government today: Are you prepared to fast-track those projects, get that infrastructure going, so that we can at least see some employment being created in that area?

MR. SPEAKER: The hon. the Minister of Transportation and Works.

SOME HON. MEMBERS: Hear, hear!

MR. TAYLOR: Mr. Speaker, as the member knows, and I think as most people in Newfoundland and Labrador know, we laid out, back about three years ago, a very ambitious infrastructure strategy for the Province of Newfoundland and Labrador.

As the member just indicated, two components of that were a new College of the North Atlantic facility in Labrador West, and a new hospital. Both of those initiatives are proceeding, Mr. Speaker. The design work is essentially completed on the college. We will be preparing tender documents shortly. We will be going to tender late this winter or early spring on the College of the North Atlantic.

The member knows, and the people in Labrador West know, there were some delays as a result of the planned expansion by IOC, and concerns about vibration due to blasting operations in Labrador West, and the effect that might have on these facilities. That caused us some delay in the planning, because if you do not know where your building is going it is a little bit difficult to plan the foundations, Mr. Speaker, as you know.

MR. SPEAKER: Order, please!

I ask the hon. minister to conclude his answer.

MR. TAYLOR: Yes, Mr. Speaker, I will conclude by saying that the design work, the conceptual work, conceptual design work, should be completed by late January on the hospital, and we will be moving forward with site work and laying in sewer and water pipes come (inaudible).

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Opposition.

MS JONES: Thank you, Mr. Speaker.

They might have had a three-year plan, but in three years all they have in Labrador West is a $1 million hole in the ground where there is supposed to be a hospital, I say to you, Minister.

Now, is there a way to fast-track the infrastructure projects for Western Labrador so that we can see some activity taking place up there as soon as possible when spring breaks?

MR. SPEAKER: The hon. the Minister of Transportation and Works.

SOME HON. MEMBERS: Hear, hear!

MR. TAYLOR: Mr. Speaker, I can say this: there might only be a $1 million hole in the ground in Labrador West, but that is a long ways ahead of where it was under the Liberal Administration, with a hospital that was falling down, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. TAYLOR: I can guarantee you, Mr. Speaker, the people of Labrador West have had a lot stronger commitment on the infrastructure side from this government than they had from the previous government that was sitting here five years ago.

If the people on that side of the House, who were here five years ago, were that committed to Labrador West and thought there was such a need to have something done over there, then why didn’t they have the plans put in place for a new college and a new hospital while they were here, Mr. Speaker?

We understood there was a problem in Labrador West. We are moving aggressively forward on our infrastructure strategy. We have the design work being done on the hospital and the college. I have said we are moving forward with tender documents right now on the college, and as soon as we can move forward with the hospital and as fast as we can move forward with the tendering on the hospital, Mr. Speaker, we will do that and it will be this coming (inaudible).

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Opposition.

MS JONES: Thank you, Mr. Speaker.

Three years we have seen now and they cannot get a contract tendered and get a job started in Labrador West, but this is the same government that is going to overheat the economy in Newfoundland and Labrador and will not put more money into infrastructure.

Well, minister, let me ask you this question. A few days ago in the House of Assembly I asked your government to give us a breakdown of what infrastructure projects were actually completed in the Province last year, based on your budget. I was not given the information. So I ask you again today: Give us a breakdown of the infrastructure projects and the funding that was announced in the budget last year that did not go forward in Newfoundland and Labrador?

MR. SPEAKER: Order, please!

The hon. the Minister of Transportation and Works.

SOME HON. MEMBERS: Hear, hear!

MR. TAYLOR: Thank you, Mr. Speaker.

I will endeavour to get the information that the member has requested. I certainly did not hear her ask for that information before. Obviously, I had her tuned out right at about that point, I guess, Mr. Speaker, but I just heard her then. I will endeavour to get that information provided to the House at the earliest possible opportunity.

I will say this, Mr. Speaker, the Premier and the Minister of Finance met two days ago, I believe it was, with some of the leading business people in Newfoundland and Labrador, people like Mr. Ches Penney, people like Albert Williams, Mr. Speaker, people who are involved in heavy construction and not only in Newfoundland and Labrador but across this country, Mr. Speaker. They clearly told the Premier and the Minister of Finance and this government that the infrastructure strategy that we laid out three years ago is working, to stay the course, to proceed as we had planned, not to increase our infrastructure spending over and above what we have already identified, Mr. Speaker, because the capacity does not exist in this Province to handle any more –

MR. SPEAKER: Order, please!

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Leader of the Opposition.

MS JONES: I say to the minister, that is little comfort for the 2,000 Newfoundlanders and Labradorians in this Province today who are going into the New Year without a job, I say to you, minister. That is a great deal of comfort for them.

Let me ask the minister this. They are on top of all the files, they know everything that is going on in the industry sector, or at least they do after the phone rings in the minister’s office and someone tells her. Maybe they can give me an update with regard to two other iron ore projects in Labrador, the Labrador Iron Mines Holdings and LabMag Iron Ore Project and give me an update of what is going on with those projects?

MR. SPEAKER: The hon. the Minister of Innovation, Trade and Rural Development.

SOME HON. MEMBERS: Hear, hear!

MR. SKINNER: Mr. Speaker, I will endeavour to find out that information for the hon. member and I will report back to the House.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for the District of Port de Grave.

MR. BUTLER: Thank you, Mr. Speaker.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The hon. the Member for the District of Port de Grave.

MR. BUTLER: Thank you, Mr. Speaker.

Mr. Speaker, weather conditions have once again resurrected the debate of mandatory winter tires in this Province. I know the minister has difficulty accepting it but experts say that snow tires are made of a special rubber compound and they are far much better than all-season tires and do indeed help prevent deadly accidents. The minister promised an analysis on this issue.

I ask the minister: Has your department completed its analysis of the mandatory tire use in this Province?

MR. SPEAKER: The hon. the Minister of Government Services.

SOME HON. MEMBERS: Hear, hear!

MR. O'BRIEN: Mr. Speaker, I was wondering when the hon. member across the House would get to the rubber question, because I have been waiting since the House went in session.

As the minister responsible for highway safety, government in general, people in general always have the utmost in their minds, the safety of the travelling public. We have been following the issue in regards to winter driving in Quebec. They have just introduced mandatory tires there. They have some issues, as I understand it from my officials, and certainly I have been following different studies and different trends across the Province, and I say that it is not conclusive.

Each and every time that I stand, or if I am in the media or I am on Open Line or whatever the talk show that I might be in, is that – and I heard over the course of the last two weeks in regards to driving conditions in Newfoundland and Labrador, the police officers, be it the RNC or the RCMP, say quite categorically that if you do not adjust your driving habits to the conditions of the roads you will be in the woods, and that is the way it is, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The hon. the Member for the District of Port de Grave.

MR. BUTLER: Mr. Speaker, it was only this week the minister was on his feet here and he said during his first election there was so much money being thrown around he got struck in the side of the head with a bundle of money. I say, Mr. Speaker, he has not gotten over the effects of that yet, to be able to stay here in this hon. House and say that there is no difference in all-season tires and snow tires.

I ask the minister, and he just mentioned the Province of Quebec are the first ones to bring it in. The minister stated earlier this year on CBC that there was no proof. I ask the minister: What information did he use to make this judgment?

MR. SPEAKER: The hon. the Minister of Government Services.

SOME HON. MEMBERS: Hear, hear!

MR. O'BRIEN: Mr. Speaker, I would just like to say before I get into the answer to his question that he should have been hit by one of the bags of money that came out of the (inaudible), it might have woke him up.

SOME HON. MEMBERS: Hear, hear!

MR. O'BRIEN: And that is a fact, because he has been asleep at the wheel now for a while I would say, and rubber will not do him any good at that, I can tell you that right now.

I will tell you one thing, in regard to the inconclusive information and studies thereof in regard to tires and the mandatory use of tires, some seasonal tires are much, much better in our driving conditions, which is under slush and rain conditions during our winter. We don’t drive entirely on snow, where the winter tires are entirely for snow. When you understand that, you can take off your tires one day and put them on the next to drive to the conditions of roads. I say to the travelling public, drive to the conditions of the road and you will be safe.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for the District of Port de Grave.

MR. BUTLER: Mr. Speaker, what a joke! What a joke! Taking the lives of Newfoundlanders and saying to them, that an all season tire used in this Province is better than a winter tire.

Mr. Speaker, this year at the Municipalities Convention in Corner Brook, the Town of Marystown put forth a resolution of mandatory winter tires and it was passed.

I ask the minister: What consultations has he had with MNL on this issue and are you taking their representation seriously?

MR. SPEAKER: The hon. the Minister of Government Services.

SOME HON. MEMBERS: Hear, hear!

MR. O'BRIEN: Mr. Speaker, even though I take everybody’s comments into consideration, even the people who might be on the talk shows or wherever they may be and have an issue or some type of opinion in regards to use of snow tires in winter conditions, MNL have made no representation to me and have made no request for a meeting.

I must also reference that that resolution passed by a very, very narrow, narrow margin, because most of the mayors understood that they didn’t have a whole lot of information or expertise in that market as well.

What we are relying on, in regard to my department, is studies that have been happening all across North America and in European markets. We look at those, we look at the Quebec market, we look at everything out there in every jurisdiction, and make an informed decision. That is the way we will do it.

I have no intention right now, I tell this House, to bring forward legislation with regard to mandatory tires.

Again, I advise the travelling public –

MR. SPEAKER: Order, please!

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The hon. the Member for the District of Port de Grave.

MR. BUTLER: Thank you, Mr. Speaker.

I think the minister said it all, when they have very little information, because I don’t think he has done any research into it.

Recently, Mr. Speaker, a Reid survey which was done from March 27 to April 8 stated, and stated very seriously, and gave a percentage of what snow tires are used in the various provinces throughout this country. It stated that in Atlantic Canada 72 per cent of people use snow tires.

I ask the minister: What percentage of that 72 per cent is being used by residents of this Province of Newfoundland and Labrador?

MR. SPEAKER: The hon. the Minister of Government Services.

SOME HON. MEMBERS: Hear, hear!

MR. O'BRIEN: Mr. Speaker, I travel this Province, across the Trans-Canada Highway, back and forth to Gander, and everywhere else, and I tell you I see a lot of people driving with winter tires in Newfoundland and Labrador. I can’t give you a percentage but I tell you it is high. People in this Province know the conditions that we find ourselves in, winter conditions, and they adjust themselves accordingly.

As well, there are many things that you have to take into consideration in regard to bringing in mandatory legislation that would give people and certain sectors of our society problems in regard to their finances, so I have to take everything into consideration when we are making informed decision with regard to the use of mandatory tires.

Mr. Speaker, I am open, and if I see studies that show mandatory tires and winter tires, and the use of winter tires, would keep our travelling public safe, then (inaudible).

MR. SPEAKER: The hon. the Leader of the Opposition.

MS JONES: Thank you, Mr. Speaker.

My question is for the Minister of Aboriginal Affairs.

Yesterday, the Premier talked about signed on to a housing program with the federal government as one of the cornerstones of their new agreement. Well, the Minister of Aboriginal Affairs administers a housing program for Aboriginal people in this Province that was signed by the federal government with the Province nearly three years ago; yet, families in Labrador are not able to access that money.

My question to you, Minister, is: When are you going to get your act together, work with the Aboriginal groups, and get the money laid out for the families in Labrador who need this housing money to do their houses this year?

MR. SPEAKER: The hon. the Minister of Aboriginal Affairs.

SOME HON. MEMBERS: Hear, hear!

MS POTTLE: Thank you, Mr. Speaker.

Just to correct the Opposition, it is actually Newfoundland and Labrador Housing that administers that program, not Aboriginal Affairs, but I am pleased to say that we have worked with the Aboriginal groups, we have sat in on the meetings with them, and they are very happy how this is progressing.

From what I understand, and I asked for an update to come forward tomorrow as to the status of the documentation, they are preparing to finalize this. As we mentioned in the press release earlier this fall, they are hoping to have that rolled out in the new year.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The hon. the Member for the District of Signal Hill-Quidi Vidi.

MS MICHAEL: Thank you very much, Mr. Speaker.


Mr. Speaker, in the financial update this week, the Finance Minister announced that he will be using all of the $1.27 billion expected surplus –

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

I ask members for their co-operation.

The hon. the Member for the District of Signal Hill-Quidi Vidi.

MS MICHAEL: Thank you, Mr. Speaker.

I do not know if the Finance Minister heard me, but when he announced this week that –

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

For the final time, I ask members for their co-operation.

The hon. the Member for the District of Signal Hill-Quidi Vidi.

MS MICHAEL: Thank you, Mr. Speaker.

I am now going to shorten my question thanks to the colleagues in the room.

I am asking the Finance Minister: Will you take some of the money that you are paying down on the debt and use that money that you are planning to use totally on the debt, by helping citizens like disabled persons, people who are sick, chronically ill, elderly, and remove the provincial part of the HST from home care so that they can be better off and better afford the home care that they require?

MR. SPEAKER: The hon. the Minister of Finance and President of Treasury Board.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Thank you, Mr. Speaker.


It is obvious that the Member for Signal Hill-Quidi Vidi does not understand the way the budgeting process works. We will not know the surplus until the end of the year, and then the year is over. At that point, if we have a surplus, it goes towards the debt. By paying off the debt it opens up monies that we can then utilize, and we can borrow for the programs as outlined in our fiscal update and in our programmings that are ongoing.

Last year, we spent $2.3 billion on health care and $1.7 billion on education so that approximately 56 per cent of our Budget went towards health and education.

I can say to the Member for Signal Hill-Quidi Vidi that she is not the only one who cares about the poor and the disabled. She can stand up there and preach to us, but we care and we are doing what we have to do.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for the District of Signal Hill-Quidi Vidi.

MS MICHAEL: Mr. Speaker, a point of order.


I asked a question. I did not preach, or anything else. I asked a question, and I want my questions recognized.

I understand budgets, too, and I understand that surpluses do not dance over from one side to the other.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MS MICHAEL: I have another question: Are you going to plan your Budget for 2009-2010 so that people who are paying for home care do not have to pay taxation on the home care that they require? Answer that one.

MR. SPEAKER: The hon. the Minister of Finance and President of Treasury Board.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Thank you, Mr. Speaker.

It is my understanding that the HST, the primary responsibility for that, rests with the federal government. What we are doing, by brining in – can I answer your question?

AN HON. MEMBER: (Inaudible).

MR. SPEAKER: Order, please!

MR. KENNEDY: Can I answer your question? Do you want the question answered?

It is my understanding, Mr. Speaker, that primarily the issue on the HST rests with the federal government. However, what we are doing, we have a $100 million Poverty Reduction Strategy which was referred to the other day. We have our monies going into health and education. We just announced a home heating rebate. We are acutely aware of the difficulty that people have in this Province, and we spend our money and our time addressing these issues.

What we are trying to do is better this Province and ensure sustainability in the future, not like some governments have done in the past.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The hon. the Member for the District of Signal Hill-Quidi Vidi.

MS MICHAEL: Thank you very much, Mr. Speaker.

The Province does have control of the provincial portion; they could make the changes.

Another group that requires help is students who are carrying heavy debts. The Canadian Federation of Students has been asking for zero interest payment by students, no interest on student loans, so I am asking the Speaker: Can the students in this Province look forward to a Budget in 2009-2010 that will eliminate the provincial interest portion on student loans?

MR. SPEAKER: Order, please!

The hon. the Government House Leader.

SOME HON. MEMBERS: Hear, hear!

MS BURKE: Mr. Speaker, I am not prepared here today to be making any pre-Budget announcements to say what is going to be in the Budget, but what I can say is this government has looked at the problem of student debt. We see it as a very serious problem and we have taken some real concrete action over the years to ensure that we acknowledge that issue.

Mr. Speaker, since we have been in government, and for this mandate, we have indicated that tuition will be frozen at both the College of the North Atlantic and Memorial University, and that requires a significant increase in our funding to post-secondary to allow us to do that.

Mr. Speaker, the other thing that we have done is, we have brought back up-front, needs-based grants to students who apply for student loans. The other thing we have done, Mr. Speaker, is we have rolled back the interest rates on student loans from prime plus two-and-a-half back to prime. We are the only province to have done that, Mr. Speaker.

I would love to be able to finish (inaudible).

MR. SPEAKER: Order, please!

The time allotted for questions and answers has expired.

HomeIn the House | Question Period