House of Assembly
Newfoundland and Labrador

Oral Questions  
November 26, 2008

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MS JONES: Thank you, Mr. Speaker.

Yesterday, the Premier stated that unions who have not yet signed a collective agreement with government must do so now or risk a lower wage offer than that negotiated and signed off by CUPE earlier this year. This has caught the unions off guard and is being widely viewed as a tactic to force them to accept government’s offer.

I ask the Premier: Why is government adopting such a heavy-handed approach and making pointed threats like this to unions through the media, and not at the negotiating table where the discussion should be had?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER WILLIAMS: Thank you, Mr. Speaker.

In all fairness to the hon. Leader of the Opposition, she wasn’t there in the scrum yesterday when I indicated exactly what the government’s position was, but I am at a loss to understand - in a situation where CUPE have already accepted what is considered to be a very, very generous wage package of eight, four, four and four over four years, which is front-end loaded, which compounds outs to be 21.5 per cent, we have now seen that PSAC, the public service union, has accepted 6.8 per cent over four years, the Prime Minister of the country, who has referred to the present economic situation as a dangerous situation, and he has also referred, after the G-20 meetings, to it as a near-depression possible situation, and just this afternoon we heard the Opposition House Leader refer to it as a crisis – under those circumstances I am at a loss to understand why I would be considered to be threatening unions when I am indicating to them that if, in fact, the prophecies of the Prime Minister, or even the Opposition House Leader, actually come true and we end up in a depression or a near-depression situation, why they would not take a 21.5 per cent offer right now, when they can have it and when they can get it, rather than in a situation when we are forced to choose between health services or education services or drugs, and not be able to give them that offer.

That was a dose of reality, it was recognition of a very difficult world situation right now, and it was an opportunity, I think, to be frank and open and honest with the people of the Province.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

I would like to ask the Premier if any of these unions, or all of them, have made it known to government that they would not be accepting the offer that is on the table, or is the time that they are taking necessary to continue to get through the negotiating practice and process?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER WILLIAMS: Mr. Speaker, if I can take an example of the nurses - and I want to make it very clear, before my remarks, that we value our nurses in this Province in the biggest kind of a way.

SOME HON. MEMBERS: Hear, hear!

PREMIER WILLIAMS: The nurses, just two meetings ago, came in, after we had indicated to them that we wanted to meet in June and they indicated that they were not available until September, they came in and the package that we had on the table, which is worth $140 million over four years, which was the eight, four, four, and four package, they came in and wanted a $160 million package over two years. Instead of 20 per cent over four years they, in fact, wanted 24 per cent in two years. They had not moved off that position.

So, first of all, they are looking for a two year agreement as opposed to a four year agreement. Secondly, they are looking for $160 million in just two years when we are offering $140 million over four years. They have basically taken the wage package that we have had and added on another $14,000 worth of extras. So, a nurse at the top end of the scale, when our wage package is in place, will receive $71,000 a year, and we figure that is a very generous compensation package.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Mr. Speaker, we know that government is at loggerheads with the nurses union with regard to this negotiation, but I ask the Premier: How does he feel that his approach yesterday, in trying to tell them or force the agreement upon them to take it now, is going to improve an already very stressed and faltering negotiation that is ongoing between the two parties?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER WILLIAMS: In all fairness, yesterday afternoon the hon. the Leader of the Opposition was not there and she did not hear my remarks. My remarks were very clear. We said that the offer that is on the table now - we termed the template - is on the table and it is staying on the table; however, what I did point out is what everybody in the room, everybody in the country, everybody in the world, now knows, is that we have a very deepening, dark economic situation. We have no idea where it is going to go. I can couch that statement by saying we are in the best possible economic shape that we could be in, but if we get into a deep recession or a depression situation then this government has to act responsibly. We have to try and protect the social services that we provide to the people of this Province.

Now, when that offer was put on the table we had a situation where we basically had over $100 oil. In the last two or three months that oil has dropped from $150 down to $50, and the statement that I made very clearly said that if oil stays at the price that it is today we would have no choice than to not offer that same wage package under those circumstances because we would be facing multiple deficits of several hundred million dollars every year starting next year.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

The messages are often confusing from government. It is deep and dark recession one day and then if you listen to a couple of your ministers here yesterday, the Minister of Transportation and the Minister of Industry in their speeches in the House, everything was wonderful and we were going to ride this out with no problems and no difficulty.

Premier, let me ask you this question. Government has maintained a stand that they will not enter into non-pattern bargaining with the sectorial unions, but it seems now that that is a direction that you are prepared to go in if it means negotiating wage rates down and benefits down.

MR. SPEAKER: Order, please!

The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER WILLIAMS: Mr. Speaker, we have no control over the world economy. As a matter of fact, we have virtually negative influence on the world economy. As a result of that, we have no control, as does the Government of Canada, over the various extraneous factors that are driving the economy in the tank, but we do have to be responsible in the way that we manage the funds.

We have put this Province in a great situation. We will have a good year this year. I indicated yesterday, just outside this House, that we will, in fact, exceed our surplus this year, even if the price of oil is at $50. That puts us in a very good situation. Luckily, we have managed down the debt. We have taken a situation, which we inherited from the previous government, which was a near bankrupt situation and we have had four consecutive surpluses. We have used those funds then to reduce the debt. We have used those funds to lower taxes. We have used those funds to improve health care in the Province. We have used those funds to increase education in the Province. We have put it into municipalities. We have put it into roads. We have put it into a lot of things that place the Province in a very good economically, competitive situation. So we have done absolutely everything right, but if this Province is subject to a world economy that is in the tank, then we have to act responsibly to protect all the things that we have already done.

I can tell you, there is not a person, I don’t think, in the country –

MR. SPEAKER: Order, please!

I ask the hon. Premier to conclude his remarks.

PREMIER WILLIAMS: Thank you, Mr. Speaker.

I do not think there is a person in the country these days, that would turn their nose up to 21.5 per cent compounded. I am at an actual loss to understand why these unions would not grab this now while they can get it and while we are in a financial position to offer it to them. All I am saying to the union members is if the situation changes (inaudible).

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Mr. Speaker, just to follow up on the nurses’ piece for a moment because nurses have said that they no longer have the time that it takes to do non-nursing duties because of the shortage. Unfortunately, we all know that Central Health has decided to begin disciplinary action against these nurses and have done so in some cases.

I ask: Why is Central Health the only board that is using this tactic, and are they doing it on a directive from government?

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MR. WISEMAN: Mr. Speaker, with respect to what is happening in Central Newfoundland through Central Health, first of all, there is no direction being provided by government. Each of our four health authorities have been given a mandate as they deliver programs and services to direct their workforce according to various human resource policies and collective agreements. What each of the four authorities have done is advised the nurses union that should their membership take any action that is contravention of the collective agreement or in contravention of their code of conduct and code of ethics that governs their practice, then some disciplinary action will occur.

What we are witnessing in Central Newfoundland is an employer who is paying a nurse, or nurses, in various facilities to be in charge during particular times during the day. The nurses in question have decided that they are not going to carry out those duties, which is very much in contradiction of the collective agreement. To say, Mr. Speaker, it very clearly indicates what their role and responsibilities are with respect to that in-charge assignment. Fundamentally, what we are seeing here is nurses deciding, on their own, not to comply with the terms and conditions of their already negotiated collective agreement.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

Obviously, the nurses have a different perspective to this.

So I ask the minister: Are you prepared to reign in Eastern Health and the other health boards on this issue and ensure that nurses are permitted to do their jobs effectively and focus on patient care and not be reprimanded for not completing these extra duties?

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MR. WISEMAN: Mr. Speaker, as I said, there is an already negotiated collective agreement in place. One of the provisions in that agreement says that when a nurse is assigned in charge they get an in-charge pay. They get compensated for carrying out certain duties and responsibilities within their unit or within that building. That provision clearly states that not only does it apply to members of NLNU but it applies to working people of other bargaining units. Fundamentally, when a nurse decides that they are not going to agree with or conform with the already established collective agreement, than that is in contravention of their agreement.

The normal practice, I say, Mr. Speaker, if employers are assigning responsibilities to individuals who believe that it is inappropriate for them to do it, there is a well established practice in labour relations and that is you carry out the direction as directed by your employer and you grieve it. There is a grievance process in the collective agreement. All we are saying is if nurses disagree with the process there is a mechanism through a grievance process to do it, so follow it. That is a natural part of labour relations, I say, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Mr. Speaker, I ask the minister: Does he think that the public is being well served by having these nurses reprimanded and suspended from their jobs at a time when we have nursing shortages in many of these hospitals and clinics?

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MR. WISEMAN: Mr. Speaker, the people of Newfoundland and Labrador have been well served for many years and I suspect will continue to be well served by the tremendous amount of work the nurses do in this Province. They are dedicated individuals who do their job in a very diligent fashion. They are well trained by very capable and competent people in their schools of nursing throughout Newfoundland and Labrador, and I suspect, Mr. Speaker, that the people of Newfoundland and Labrador are well served today by the nurses in this Province, as they were yesterday. I believe we can all, all of us in this Province can look forward to the nurses of this Province continuing to provide dedicated and very professional support and services to the people who need it in Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

Yesterday, I referenced a 2003 report for residential treatment of services for children, youth and families. Part of the response that the minister said at that time was that this report was done by half a dozen people, and I think it was to belittle the information that was contained in the report. I want to remind him that your people in your department were involved, along with managers from right across the system, consultants and professionals both nationally, provincially and internationally. It took two years and it was done in consultation with individuals and committees right across the Province.

So, Mr. Speaker, when you look at the amount of time, effort and expertise that went into this report, I have to ask the minister specifically: Why did you wait five years before ever dealing with the recommendations that were in this report, and not look at it until these people came forward on television?

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MR. WISEMAN: Thank you, Mr. Speaker.

That was a great speech but I want to remind the member in this House today at least what happens when you assume. I say, Mr. Speaker, when you start assuming things and reading into things, you create all kinds of inaccurate statements and you make misleading comments in the general public. That is what we saw yesterday when the member opposite issued a press release referencing the comments I made in this House yesterday, and nothing, I say, Mr. Speaker, could be further from the truth.

This government, me as the Minister of Health and Community Services, take very seriously our responsibility for the general health of the population of this Province, and very seriously our role and responsibility in providing mental health services to not only children but adults and anyone else who needs it, I say, Mr. Speaker.

My comment about the report, when I said it was about a half a dozen people, it was a reference to suggest that it was not just one individual who wrote the report, but many minds came to bear. I was not quantifying the number, nor did I go on to say about where they came from. I acknowledged the contribution of people. If I remember correctly, Mr. Speaker, I remember the contributions that are made by community volunteers, people who provide supports for, people who advocate on behalf of. I think if she checks Hansard, I did acknowledge –

MR. SPEAKER: Order, please!

MR. WISEMAN: - a variety of contributions made in that report, I say, Mr. Speaker. So I was not belittling at all –

MR. SPEAKER: Order, please!

I ask the hon. minister to conclude his answer.

MR. WISEMAN: Thank you, Mr. Speaker.

Just the contrary, I acknowledge the significance of it and that is why I have directed officials in my department to now pull that report and actually start to review the recommendations with respect to their appropriateness for today.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Mr. Speaker, yesterday I also indicated the serious deficiency that exists within programs and services that are available to help youth within this Province, and the minister’s response was that the Janeway had an array of programs and services. I want to remind him that in the discussions that we had with parents and youth and health professionals it certainly appears that they feel the services are not sufficient at this time. In fact, even the Child and Youth Advocate and also the Canadian Mental Health Association expressed directly their concerns.

I ask you, Minister: If you feel the programs and services are there, I want you to confirm for me today whether there is currently a statement of claim against Eastern Health by a family in the Province because of the lack of mental health services that are being offered to youth under the age of 19.

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MR. WISEMAN: It is interesting that the member opposite decides to quote the Advocate. What she failed to share with the House and the people of this Province was that around the middle of October – about the 17, I believe – the Advocate was interviewed on CBC, and if she had listened to that, or wants a transcript of it, she would hear the Advocate acknowledging that there have been major improvements in mental health services in this Province.

The children in this Province have been seeing improved services and, just like the Advocate, I acknowledged yesterday that we are continuing to make further investments, and we will continue to make further investments in the future.

We are always looking at ways to improve services, how we deliver them, the breadth of the services, improving the qualifications of the people who deliver it, all with a view, at the end of the day, of providing an enhanced service to the people of Newfoundland and Labrador.

So I say, Mr. Speaker, if the member opposite is going to quote someone like the Advocate, at least do it accurately and acknowledge the full breadth of her comment, which was that there have been improvements in mental health services for the children of this Province.

If she doesn’t want to take my word for it, read the transcript from the CBC Here and Now program on the seventeenth.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

I have read the transcript. I read my notes, I say to the minister, and I have certainly seen the program. I also know that the Advocate feels that there are still insufficient services.

I ask the minister this: Can he confirm for me that there is a statement of claim in the courts today against Eastern Health because of the lack of mental health services being provided to youth in this Province?

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MR. WISEMAN: Mr. Speaker, I am not personally aware that there might be. If the member opposite is suggesting that there is, and if she is citing a statement of claim being filed, I guess she got that from the court records herself, and that is a public document. If that is available, I am certain that the member opposite has already had it. I would need to verify it myself. I do not have any personal knowledge of that today but I will undertake to confirm it for the member opposite. As I said, if it is matter of public record I suspect that their office already has it.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

Mr. Speaker, earlier today the Seal Cove Campus of the College of the North Atlantic was closed due to poor air quality. Students and professors became sick and experienced symptoms such as burning eyes and fumes. There was recently a new boiler installed there, from what I understand, and they think this might be part of the problem.

I ask the minister if she can confirm for me today what the problem is in that campus, and if proper inspects have been completed on that facility.

MR. SPEAKER: The hon. the Minister of Education and Government House Leader.

SOME HON. MEMBERS: Hear, hear!

MS BURKE: Mr. Speaker, I cannot confirm at this time what the actual problem is. I heard about this issue this morning. What I can confirm is that officials are certainly looking into the matter, and if there is a matter of health and safety concerns they will be taken most seriously and we will certainly make sure that we rectify the situation so nobody is left at risk.

Thank you.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

We received complaints back a few months ago about the air quality at this particular campus of the College of the North Atlantic and, as a result, Mr. Speaker, we filed under Access to Information a request for all the air quality inspections for the CONA facilities over the past year. Unfortunately, our request was denied unless we were willing to pay $125 to access that information.

Minister, in light of the situation today, in light of the fact that we have gotten complaints at this campus over the last few months about air quality, I ask if you are prepared to table the inspection reports on those facilities in the House of Assembly so that we can access them free of charge, as they should be to the public?

MR. SPEAKER: The hon. the Government House Leader.

SOME HON. MEMBERS: Hear, hear!

MS BURKE: Mr. Speaker, I would certainly like to let the hon. Member for Cartwright-L’Anse au Clair know that if there are any concerns about health and safety in any of the campuses of the College of the North Atlantic, if they receive complaints, I would certainly encourage that she send them on to the college or to me and we will make sure that we look into them. I certainly think they are very serious matters that we need to address, as opposed to using them for, I guess, political points on the floor of the House of Assembly.

If there are any issues of health and safety or any particular or specific college that may need attention, that is coming to your attention - because nobody phoned me and told me specifically - if they phoned you, I would certainly like to have that information. We would certainly act on it at any point in time.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order please!

MS BURKE: If we are hearing reports that came into the office of the Official Opposition months ago, I would certainly like to have those issues brought to my attention, and I will look into those issues and ensure that if there is a health and safety concern that it receives attention.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

We went through safety issues and air quality issues with this minister before, in schools, and asked for information that we never, ever received.

Mr. Speaker, I am asking the minister today: In light of the fact of the situation that exists at the Seal Cove Campus, will you table the air quality inspections done at that campus in the last year in the House of Assembly so that we do not have to pay to access them through Freedom of Information?

MR. SPEAKER: The hon. the Minister of Education and Government House Leader.

SOME HON. MEMBERS: Hear, hear!

MS BURKE: Mr. Speaker, with regard to Access to Information and how there are charges to receive the information, and the amount of information sometimes that is available, that is pre-established and there is a formula that we use in order to determine what is being charged. I want to make sure that the public understands that we do not come up and put a number on it just based on what we think. There is certainly a way that we deal with that information.

It is also noteworthy that sometimes there are boxes and boxes of information that tie up staff for months at a time, so we certainly need to make sure that the amount that we put on it is by a prescribed formula and we follow that formula.

Mr. Speaker, as far as the air quality testing, and issues that the member just mentioned with regards to schools or colleges, I can assure the hon. member that this government takes air quality and health and safety issues very seriously.

SOME HON. MEMBERS: Hear, hear!

MS BURKE: If there is an issue at the Seal Cove Campus, as has been brought to my attention just this morning, we will certainly look into that matter and, as I said before and I certainly mean, if there are health and safety issues at that particular campus we are looking into them today and we will make sure that no one is left at risk.

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

MS JONES: Thank you, Mr. Speaker.

A yes or no answer from the minister would be just fine. Will you provide the air quality inspection testing and results in the House of Assembly that were done on the Seal Cove Campus in the last year if, indeed, there were any done?

We know you sent people out there yesterday. We are not sure if there was anything done prior to that.

MR. SPEAKER: The hon. the Minister of Education and Government House Leader.

SOME HON. MEMBERS: Hear, hear!

MS BURKE: Mr. Speaker, I cannot guarantee to table a report if I do not know if that particular report exists or not. We will certainly have a look and see if there are any reports on the Seal Cove Campus that were done in the last year regarding air quality, and certainly the follow-up or the plan from the college to deal with those issues.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

Mr. Speaker, government’s interference with the operations at Memorial University, and in particular its interference in the selection of a new president for the university, has been widely condemned within the Province.

I ask the minister: Does she now recognize that her actions were improper and does she intend to take a new approach?

MR. SPEAKER: The hon. the Minister of Education and Government House Leader.

SOME HON. MEMBERS: Hear, hear!

MS BURKE: Mr. Speaker, this government invests heavily in our post-secondary education, in particular, Memorial University of Newfoundland. We certainly want to make sure that university remains a leader, not just within Atlantic Canada or Canada, but certainly worldwide.

Mr. Speaker, we are at a point in the university right now where we do have some changes. We have a new chair of the Board of Regents. We certainly want a presidential search to continue. I am looking forward to meeting with the new chair to discuss that particular issue, but more importantly, the private member’s motion that we will be debating here on the floor of the House of Assembly deals specifically with the autonomy at Memorial University because we see that as extremely important. We certainly want to move forward and we want to make sure that that university remains a leader within the academic institutions of this country.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Mr. Speaker, we know that the resignation of the former president, Axel Meisen, came eight months before the end of his term, amidst the claims of government intervening in the operations of the university. We also have on record the Chancellor of Memorial University, Mr. Crosbie, who even accused the Premier –

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MS JONES: - of putting political ambition ahead of educational priorities.

I ask the minister today: Is she concerned about the damage that is being done to the reputation of the university by your heavy-handed actions and interference in this process?

MR. SPEAKER: Order, please!

The hon. the Minister of Education and Government House Leader.

SOME HON. MEMBERS: Hear, hear!

MS BURKE: Mr. Speaker, Axel Meisen resigned as the president of the university on his own accord. He certainly never indicated to me at the time of his resignation, and I was at different functions that acknowledged his contribution to the university, there was never any indication that because of any type of government action that he resigned.

Mr. Speaker, I also want to make sure that people understand that as far as the university goes and as far as the courses and the offerings and the curriculum and the way courses are taught and the research that is being done, this government has never and has no intentions of interfering with that process.

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, Mr. Speaker.

The mid-year financial statement is now almost two months past its due date and yesterday the Premier said it will not be due for another two weeks, or to quote him: For a fortnight.

Mr. Speaker, with the very light legislative agenda that has been tabled for this sitting, that projection by the Premier could potentially mean that the Legislature might even be closed before the update is released.

Mr. Speaker, I ask the Premier to please tell us why this government is holding up the releasing of the economic update? Will it be coming to this floor?

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The hon. the Minister of Finance and President of Treasury Board.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Thank you, Mr. Speaker.

As indicated by the Premier yesterday, we are working on the update. There is a lot of volatility in oil prices in the markets right now, and we will be ready within the next couple of weeks to provide that economic update.

As for the fact of whether or not the House will be closed, I can assure the Leader of the NDP that we will sit here as long as it takes and give you as much time as you want to debate that economic update. So, ever how long that takes, we will be here and we look forward to your questions.

Thank you.

SOME HON. MEMBERS: Hear, hear!

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

MS MICHAEL: Mr. Speaker, yesterday in responding to the media in the scrum, the Premier considered the worst-case scenario of our economic situation. He spoke to that today, and he talked about the possible implications for collective bargaining because of looking at the worst-case scenario.

So my question is: Could the government possibly, at the moment, also look at the worst-case scenario when it comes to doing the financial reporting, and is it possible that we could be actually facing budget cuts in the potential of the worst-case scenario?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER WILLIAMS: Mr. Speaker, our budgets and our budget estimates and our forecasting is all done on the best available information that we can get our hands on. It is the best projection of revenues; it is the best projection of expenditures. We go through a very detailed process on the whole expenditure side to make sure that expenditures are legitimate. On the other hand, we look at our revenues.

From the oil perspective, we use the Pira forecast. We rely on those forecasts to the best of our ability, and we try and gauge then of course as well with what is happening right across the country on a national basis and what other jurisdictions are putting into their forecasts as well.

So we do not do a worst-case budget. We try and hit it as close as we can. Now if you get fluctuations, huge fluctuations, as we can, whether it is in oil production or oil prices, they can change a budget surplus or deficit dramatically, as well as variations in the corporate taxes, but we do not budget on a worst-case scenario. We budget on the basis that we try to nail it as best we can, with some conservativism in the event that things go awry or we run into the situation that we ran into this year from a global economic perspective.

SOME HON. MEMBERS: Hear, hear!

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

MS MICHAEL: Mr. Speaker, based on what the Premier just said, I really do have to do a follow-up that I was not intending.

Mr. Speaker, I ask the Premier: If you will not budget on a worst-case scenario, why would you publicly talk about collective bargaining based on a worst-case scenario?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER WILLIAMS: Because, quite frankly, it is incumbent upon me and my government and the members of this House to give the people of Newfoundland and Labrador, particularly our public sector employees, the reality of the situation. Now, I am not telling them anything they do not know. They just have to look at the nightly news or read the papers or listen to the radio and find out exactly what is going on in this world. When we get the top leaders and the top countries in this world worried about a possible near depression situation, I have an obligation, and we all have an obligation, to tell the people of this Province and the public sector employees of this Province, what could be the consequences.

As well, you were not there yesterday. You did not hear what I said. I said this offer is out there. It is a very generous offer. It is the best offer in the land right now, right across this country. We are maintaining it. We are keeping it there. We are going to keep it there, but if the bottom falls out of it completely and oil prices completely tank and we end into a very severe depression situation, it is incumbent upon me to forewarn the people of this Province and the public-sector workers that we may not be able to afford that offer on a future basis. I see nothing wrong with that. That is just a good test of reality, that’s all.

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