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Oral
Questions
December 11, 2008
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| In 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. |