House of Assembly
Newfoundland and Labrador

Oral Questions
May 31, 2011

HomeIn the House | Question Period

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

MS JONES: Thank you, Mr. Speaker.

Mr. Speaker, the Governor of Vermont has announced that New England has excess generating capacity largely because of natural gas. The governor also said it is a buyer’s market for electricity with many utilities offering to sell them power.

Mr. Speaker, we all want to see the Lower Churchill developed but a deal that has to be fair for our taxpayers and has to make economic sense. The reality is that the Muskrat Falls Project makes no sense without customers beyond this Province.

I ask the Premier today: Where are the identified buyers for this power? Because a project this size makes no sense without it.

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

Mr. Speaker, if we were developing power only for market, we would be developing the full Lower Churchill.

Now, Mr. Speaker, I want to point out to the Leader of the Opposition that markets have not dried up since 2003. In fact, if we developed everything in Eastern Canada that is now under consideration we would only be able to meet 25 per cent of the demand just in the Eastern United States. Mr. Speaker, we are concerned first and foremost with the needs of the people of this Province and Muskrat Falls makes sense for them without any other customers.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

No power purchase agreement and it is not only the Governor of Vermont who is saying this. Mr. Speaker, Hydro-Quebec recently signed a twenty-six-year power purchase agreement with Vermont. They are going to sell electricity for about 5.8 cents per kilowatt hour. If Muskrat goes ahead the wholesale price would be above fourteen cents per kilowatt hour.

Premier, New England can get their electricity cheaper than this government’s plan for Muskrat. The only identified profit to be had on Muskrat is the profit that will be earned on the backs of the people of this Province.

I ask you today: Why should we have to pay more for our own resource than people on the mainland? I say to you, this is not the Lower Churchill deal that the people of our Province envisioned.

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

Mr. Speaker, if we could get 5.6 cents kilowatt hour electricity into this Province, we would be buying it. We would not be trying to develop 14.3 cents kilowatt hour electricity. The people of Nalcor - people on this side of the House have not lost their minds. We are not trying to give it away, Mr. Speaker. We will not give it to Hydro-Quebec to sell, which is what you were going to do and put all the money in the coffers of Hydro-Quebec. We are not prepared to do that, Mr. Speaker. What we need to do is assess the needs of the people of this Province.

What is the cheapest option to provide power for this Province to continue to thrive and grow as it has done in the last eight years, Mr. Speaker? The answer to that is Muskrat Falls.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Maybe for her, but not for the people who have to pay for it, I say to you Premier.

Mr. Speaker, New Brunswick is exploring for natural gas. So it is not just Vermont, it is not just the deals with Quebec. New Brunswick is exploring for natural gas and looking at expanding its nuclear output to meet its future needs. The only markets for Muskrat power today are Nova Scotia, which is getting it for free as long as they pay for their own link, and the people of our own Province who will have to pay the highest prices on the Eastern Seaboard because of your deal.

Premier, the reality is that you have no identified buyers for this power. I ask you, again: How is this multibillion dollar megaproject feasible when you are selling less than 40 per cent of the power and then you are only selling it to the people in our own Province?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

It is feasible because we will charge 14.3 cents a kilowatt hour, which will be roughly the equivalent of what people will be paying on the isolated system in 2016. Mr. Speaker, any other power purchase agreements that we enter into will bring money back into Nalcor, which can be used on a decision of the government however it is felt appropriate to do so. Some of that may be done in rate reduction, Mr. Speaker.

If we get a loan guarantee – when we get our loan guarantee, I should say, from the federal government that will reduce those 14.3 cents even further.

Mr. Speaker, this deal makes sense for ratepayers in Newfoundland and Labrador.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: The Premier knows that is not the case, Mr. Speaker. She knows the people in our Province cannot afford this project and this power.

On the weekend, economist Wade Locke made a presentation in Gander. He delivered sobering news to the people attending a meeting of credit union directors. Like the Auditor General, Dr. Locke said your government spending is unsustainable and because of declining oil production going forward this Province is on the verge of running billion-dollar deficits annually.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MS JONES: Mr. Speaker, Dr. Locke said that in ten years’ time, this Province is facing a provincial debt of $18 billion and that is not even counting the debt that is associated with Muskrat. Now, that is quite a legacy I say, Premier, for your government –

MR. SPEAKER: Order, please!

I ask the hon. Leader of the Opposition to pose her question.

MS JONES: So I ask you today: Given what Dr. Wade Locke’s dire forecast is how can we possibly afford to borrow another $4.4 billion for Muskrat Falls?

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

Mr. Speaker, when we came into government in 2003, our friends opposite were running a $12 billion deficit and a $1 billion over expenditure on your Budget. That is what you were doing. Mr. Speaker, we brought that debt down by almost $4 billion.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: We reduced our spending, Mr. Speaker. We have increased our royalties. While even our reserves may go down in the next four or five years, our return from our oils will be even higher, Mr. Speaker.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

PREMIER DUNDERDALE: Now, Mr. Speaker, this is a question better asked of her own caucus. A $174 million reduction in gas tax is a figure they got right, because they lifted it right from our Budget documents. Now, Mr. Speaker, what is broadband going to cost?

So instead of asking us about what we might do to the debt, what are you going to do it?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The hon. the Leader of the Opposition.

MS JONES: Thank you, Mr. Speaker.

No response to Dr. Wade Locke who says the Premier and her government is out of control and saddling the people of this Province with debt. She will not respond to that, because she knows it to be true.

According to Dr. Locke, potential retirees now outnumber new entrants in the workforce and will continue to do so going forward. That means there will be fewer people working and paying taxes and able to afford steep increases in electricity bills when Muskrat Falls comes on stream.

Again, I ask you: How can we possibly afford a Muskrat Falls Project that only sells power to Newfoundlanders and Labradorians? If there are fewer people working, as Mr. Locke indicates, how much more will we have to pay to pay off Muskrat Falls?

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Mr. Speaker, here we go again. We are going to finish the way we started: no vision, no plan, and no hope. The better question that she needs to ask her caucus, given the aging population that we have and the demand on health care: How are we going to afford - according to their new platform - to provide home care to everybody in this Province for as long as they want and for as many people who want it? That is the question: How are you going to pay for that?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The hon. the Leader of the Opposition.

MS JONES: Thank you, Mr. Speaker.

We know the Premier does not support home care for our seniors. We know the Premier does not support broadband Internet for rural communities.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MS JONES: We know the Premier does not want to put money back in people’s pockets in this Province.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The Chair is having difficulty hearing the hon. member pose her question. I ask for members’ co-operation.

The hon. the Leader of the Opposition.

MS JONES: We know she does not support any of those initiatives, Mr. Speaker, but we do not know why she will not answer to Dr. Locke, knowing that what he says could potentially come true in the next few years.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MS JONES: Now, Mr. Speaker, another point Dr. Locke noted is that interest rates are expected to go up. Mr. Speaker, even if you look at the 7 per cent Nalcor has budgeted for interest charges that would amount to an additional $900 million to the cost of Muskrat Falls.

I ask the Premier: If Dr. Locke is right and interest rates go up during the construction of this project, how much more will we have to pay for our electricity on Muskrat Falls?

MR. SPEAKER: Order, please!

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

SOME HON. MEMBERS: Hear, hear!

MR. MARSHALL: Mr. Speaker, the Government of Canada is going to give us a loan guarantee that is going to reduce our interest rates by over 2 per cent. That is what is going to happen to interest rates.

In terms of the Auditor General, the hon. member talked about the Auditor General, let’s see what he said; she always refers to the Auditor General. Here, on page one of his report: "There have been significant surpluses and reductions in net debt". Two –

MR. SPEAKER: Order, please!

The hon. member knows full well that he is not to recite any documents here, or read directly from the papers.

I ask the hon. member to close his answer.

MR. MARSHALL: The Auditor General said that this government is being sustainable because we are running surpluses – six surpluses in the last seven years. We have reduced net debt by $3.8 billion, we are paying down our direct debt – $400 million this year, $400 million next year, $400 million last year, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

MR. MARSHALL: When the hon. member was in office, they did not pay net debt by a dollar, not a dime, not one copper, Mr. Speaker, and that is the difference.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The hon. the Leader of the Opposition.

MS JONES: Thank you, Mr. Speaker.

It was our government who signed White Rose, Mr. Speaker, and Hibernia, and Terra Nova, and the Voisey’s Bay deal, which is where you get all your money today, minister, to be able to look after the finances of this Province. The Auditor General says it is not sustainable, Dr. Wade Locke says it is not sustainable, the government will not answer to that, Mr. Speaker.

The Premier likes to tell the people of the Province that their power bills are going to double, regardless of Muskrat Falls; however, that is not the case. She says it is because we are tied to the price of oil. What she does not say is that we are using Holyrood less every year. In fact, we used 2 million barrels of oil less last year than we did ten years ago. Also, GLJ Petroleum Consultants, which are used by Dr. Locke, are forecasting that oil –

MR. SPEAKER: Order, please!

Again, I ask the hon. member to pose her question. The member knows that we have forty-five seconds to ask and answer questions.

MS JONES: Mr. Speaker, GLJ Petroleum Consultants are forecasting that the cost of oil will be less in 2016.

MR. SPEAKER: Order, please!

I call on the member again, if she has a question, to pose it or let the Chair recognize another member.

MS JONES: Based on what they are forecasting, why is it that you are inflating the projections that you are using to cost out Holyrood?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

World renowned forecasters are telling us this week that the price of oil is going to continue to rise. Now, Mr. Speaker, there are the facts. Listen to the news, you hear today they are talking about shutting down nuclear reactors in Germany because they are so unsafe. New Brunswick relies on nuclear power. Ontario relies on nuclear power. People are trying to move away from fossil fuels whether it be oil or gas. Mr. Speaker, this Province is an energy super warehouse. We have what the world wants. We will bring it to market. We will supply our own people, Mr. Speaker, and we will earn from those resources for generations to come.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The hon. the Leader of the Opposition.

MS JONES: Thank you, Mr. Speaker.

All we are doing is asking the government day after day to back up the information. GLJ Petroleum Consultants, which were used by Dr. Wade Locke, are forecasting that oil will cost less in 2016 than it costs today, I say to you Premier.

Why are you inflating your projections about the use and cost of Holyrood? Why don’t you give the people of this Province the facts to back up what you are saying? If not, we are going to go on what experts in the industry are telling us, not on what you are telling us with nothing to back it up.

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Mr. Speaker, we would all be better served if they tried to use their own intelligence to work their way through some of these things instead of relying on what people tell you. Mr. Speaker, in the eight questions you have asked in the two months of this House of Assembly, it has been what this person has said, that person has said and you have been all over the map. We have provided you with the forecast I say to you, Mr. Speaker –

AN HON. MEMBER: (Inaudible)

MR. SPEAKER: Order, please!

PREMIER DUNDERDALE: – and to the Leader of the Opposition, from leading experts in the world on forecasting oil prices, Mr. Speaker. We have provided the generation forecast for this Province, for the next twenty years, Mr. Speaker. Do your own research; find out what is happening in the Eastern United States, Mr. Speaker. Mr. Speaker, on one hand they are saying you are fiscally irresponsible, on the other hand they are saying spend, spend, spend. They are all over the place it is enough to make you dizzy in here.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

The hon. the Leader of the Opposition.

MS JONES: You said it, Premier, not me.

Mr. Speaker, the only thing that I would like to remind the Premier of is this: she is trying to bring forward a deal that is going to double up the cost of electricity for people in this Province. She does not have a power purchase contract with anyone else outside of this Province. We know that other areas, Mr. Speaker, are already filling their power needs with power elsewhere, cheaper power, than she can provide from Muskrat Falls. We know that professors like Doctor Locke, Mr. Speaker, are forecasting that her spending is unsustainable.

I say to you Premier, it is time for you to answer to the people of this Province and tell them what it is that justifies this deal. Why is it that they will have to earn their hard earned money to pay for a project that is unsustainable and uneconomical?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

Mr. Speaker, the Leader of the Opposition’s view on people changes as frequently as her statistics do on Muskrat Falls. Dr. Locke is a hero today, somebody we should all be paying attention to. He was a complete and utter idiot when he defended the fibre optic deal. So what is it? Is he a brilliant analyst or is he somebody who does not know what he is talking about? Make up your mind.

SOME HON. MEMBERS: Hear, hear!

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

MS JONES: Thank you, Mr. Speaker.

It is easier for the Premier to tear people down than to answer to the people of the Province.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MS JONES: Mr. Speaker, I would like to ask the Premier one last question on energy prices –

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The Chair has recognized the hon. the Leader of the Opposition.

MS JONES: Thank you, Mr. Speaker.

The Minister of Natural Resources and Nalcor officials have all confirmed that the base cost of Muskrat Falls power will be 14.3 cents per kilowatt hour. That is if there are no construction overruns. What she does not say, however, is that Newfoundland Power will have to add its cost and markup to that rate as well. Our research shows that Newfoundland Power’s markup varies from 40 per cent to 60 per cent.

I ask the Premier today: Is it true Newfoundland Power, if they add just 40 per cent for its markup to the price that this will not double up the cost of power to the people of the Province? You know the difference and you know…

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER DUNDERDALE: Thank you, Mr. Speaker.

Mr. Speaker, this is another myth they have been banging around for weeks. Mr. Speaker, the 14.3 cents per kilowatt hour includes the cost of the plant, includes the cost of transmission, plus the return on transmission, it includes return on equity, the cost of the debt interest, it includes the Labrador link, and –

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

PREMIER DUNDERDALE: – it includes the rate of return, which is regulated by the PUB in this Province. The rate of return that is earned by public utilities in this Province, Mr. Speaker, is regulated by the PUB.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

PREMIER DUNDERDALE: Included in that 14.3 cents are costs of overruns. There are costs of overruns included in the 14.3 cents.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for the District of The Straits & White Bay North.

MR. DEAN: Thank you, Mr. Speaker.

Mr. Speaker, on April 13, 2011, your government announced enhancements to the dialysis service in St. Anthony. It is almost two months later and the wait list still exists. The hours of operation are still the same. Patients are still left in limbo waiting for someone to act. In fact, a recent e-mail from the CEO of Labrador-Grenfell to one of the families on the waiting list states they hope to be in the position to open the facility by the fall. That is almost a full Budget year later.

I ask the minister: Why is this government and the health board dragging its feet on such an important issue?

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

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Thank you, Mr. Speaker.

I do not think it is fair to describe what this government is doing with dialysis as dragging our feet. Mr. Speaker, since 2005 we have opened dialysis sites in Burin, Carbonear, Gander, St. Anthony, Labrador West, Port aux Basques and Happy Valley-Goose Bay. This year, Mr. Speaker, there was a $3.1 million announcement where we extended dialysis in Burin, in St. Anthony, and also announced new dialysis in Harbour Breton.

Mr. Speaker, between the Budget announcement and the opening of a unit, there are certain things that have to take place. What is going on in St. Anthony, Mr. Speaker, is that there has to be a new water system installed and that takes time. There also have to be nurses trained. Essentially, we have announced the money in the Budget. We will extend dialysis services, but the fall is when it will take place that is correct.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for the District of The Straits & White Bay North.

MR. DEAN: Thank you, Mr. Speaker.

Mr. Speaker, I have been speaking to family members throughout this week, family members who are here in St. John’s, who are doing dialysis, have been here for three or four months, and do not know where they are going. We understand today from the CEO that advertisements for the nursing positions have not even yet been posted, let alone the two months or so of additional training that will be required. The CEO says they are hoping to move forward as soon as possible to advertise the additional dialysis nursing positions.

I ask the minister again: Why would there be a delay in advertising those positions, a very fundamental piece of it, when they will play such a critical role in the delivery of dialysis services?

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

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Yes, thank you, Mr. Speaker.

Without getting into the details of any specific case, I am aware of what the member opposite – the family he is talking about. I did reply to them yesterday in detail. I said to them I understand your anger and frustration, I understand why you feel the way you do. I outlined in detail the process.

As for why the advertising has not taken place, I agree with you, they should have been done by now. I have instructed the CEOs of both Labrador-Grenfell and in Eastern Health to advertise for these nursing positions. Dialysis is a basic service that is required by the people of this Province. It is something that we are very proud of what we have done.

I say to the member opposite, on that point we do agree, Sir. To these families, and to all of them, we are doing the best we can but between the Budget it takes time to implement the services.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for the District of The Straits & White Bay North.

MR. DEAN: Thank you, Mr. Speaker.

It is good to see that someone is taking action, quite frankly, because they do not appear to be listening to the correspondence from the CEO of the board.

The St. Anthony expansion, Mr. Speaker, is delayed and will not see a dialysis centre open until the fall. We realized on April 13 as well, the government announced its expansion of three other sites in St. John’s, Burin and Stephenville.

I would just like to ask the minister: Are those proceeding ahead of the unit we are speaking about today?

Mr. Speaker, thank you.

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

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Thank you, Mr. Speaker.

Yes, the Budget is not passed yet, but I will say in all seriousness, Mr. Speaker, that the Members for Grand Bank and Burin-Placentia West –

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MR. KENNEDY: – have been in constant contact with me. We have people who drive over that Burin highway, Mr. Speaker, to go to Clarenville and St. John’s. It is very unfortunate.

No, to answer your question, it is going to be the same time frame. Again, there was some delay in advertising for the nursing positions. We are looking at the fall. It is my understanding and the House Leader could tell us that the Port aux Basques unit is either opening very shortly or has just opened. Lab West, Mr. Speaker, is open. We are doing the best we can. As for Harbour Breton, I have indicated in the past, Mr. Speaker, it takes time.

What I say to all the people of this Province: The message here is that this government cares about each and every one of you and about your family members, but it does take time to put things in place.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for the District of The Straits & White Bay North.

MR. DEAN: Thank you, Mr. Speaker.

Mr. Speaker, the people of Port Union are still in limbo after Hurricane Igor and the damage to their fish plant over eight months ago. They are frustrated with, we know, the government’s failure to provide adequate assistance. They sat in the gallery in April. The Premier promised government would find a way to help. Over a month later, the people are still waiting.

I would like to ask: What is taking so long to respond?

MR. SPEAKER: The hon. the Minister of Fisheries and Aquaculture.

SOME HON. MEMBERS: Hear, hear!

MR. JACKMAN: Thank you, Mr. Speaker.

We are indeed working our way through that process. Myself and my two colleagues, the other ministers who are involved from Municipal Affairs and HRLE, have been working with our staff. As a matter of fact, Mr. Speaker, we have a meeting tomorrow morning with the union with the latest update. So, Mr. Speaker, things are progressing.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for the District of The Straits & White Bay North.

MR. DEAN: Thank you, Mr. Speaker.

The Minister of Fisheries recently as well sent out a letter to the key players involved in the MOU in March to clarify some confusion about the decision to reject the MOU report. I understand at least one of those players, the FFAW, has sent in the response to the department.

I ask the minister today: Could he state clearly without going around in circles with the whole issue what the status in the process is now? Does he see that there will be any future developments arising from the process of the MOU we have been through?

MR. SPEAKER: The hon. the Minister of Fisheries and Aquaculture.

SOME HON. MEMBERS: Hear, hear!

MR. JACKMAN: Mr. Speaker, as a matter of fact, we have received responses from both parties. We do look forward to working with them. There are other initiatives, Mr. Speaker, in the MOU around marketing and inventory financing that we are working our way through. We hope to be able to work with the industry around that.

Mr. Speaker, if we are going to make the changes those are the types of things that we need back from the industry. To be quite honest with you, Mr. Speaker, I did expect more back from both parties but we will work our way through that I am certain. Mr. Speaker, the one response that I did not get back yet, got it from everybody else on outside buying except the Opposition Liberals, Mr. Speaker.

SOME HON. MEMBERS: Oh, oh!

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, this year’s Budget announced a twenty-five cent increase for the home support hourly subsidy rate. It is our understanding that every year in recent times there have been increases of at least fifty cents, if not more, to the hourly salary for home support workers. Both the employers and union came to agreements based on the expectation that government would continue this pattern.

Mr. Speaker, I ask what is the Minister of Health and Community Services going to do about the shortfall in the expected wage increase for home support workers.

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

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Mr. Speaker, as outlined by the member opposite we did increase the home care support rate by twenty-five cents, but, Mr. Speaker, as we look at and we have often talked about the long-term care strategy, there are a whole bunch of issues that we have had to look at. This year we dealt with the personal care homes. We increased the small personal care home subsidy, Mr. Speaker, by $792,000 or $2,000 a month. Prior to the Budget we put a million dollars into isolation grants. Mr. Speaker, we also are building our facilities trying to finish off with our long-term care facilities. Significant investments, Mr. Speaker, in the St. John’s long-term care facility, Carbonear and Lewisporte.

Mr. Speaker, what we are doing, we are not focusing on just one area. The continuum of care is something we are looking at from the time the person is in the home until the time they go into the long-term care. Mr. Speaker, need I reiterate all the money we spent on senior’s wellness and we are getting our money back, Mr. Speaker, a hundred fold.

SOME HON. MEMBERS: Hear, hear!

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

MS MICHAEL: Thank you, Mr. Speaker.

Yes, this government recognizes its responsibility for the existence of home care but under this government the home support hourly rate subsidy is an essential part of the home care system and, Mr. Speaker, this year’s drop in the government subsidy is set to have a detrimental impact.

Mr. Speaker, could the minister clarify for employers, the union and workers why this year’s investment is only twenty-five cents more?

MR. SPEAKER: Order, please!

The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Mr. Speaker, what we have to do as a government in the Budget process, we have to look at all of the needs and we have to balance those needs. Now, I could be wrong, Mr. Speaker, but I thought we had also, in the previous year, Budget 2010, increased the home care subsidy rate by twenty-five cents. That is still approximately $3.5 million, if I remember correctly, Mr. Speaker.

What we have done in the last number of years is invest over $200 million in providing services, and again in the long-term care sector. I come back to the basic point that this year we spent approximately $300,000 on seniors’ Wellness Grants. We put probably $100,000 out there in small grants to our seniors. What we are doing, Mr. Speaker, we are trying to combine the preventative approach with the treatment approach. Home care is one aspect of that, it is an important aspect, but we are looking at all aspects of the provision of care.

SOME HON. MEMBERS: Hear, hear!

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

MS MICHAEL: Thank you, Mr. Speaker.

Mr. Speaker, we need a publicly funded and administered system where all home support and long-term care facility workers are trained and paid equally. We are coming to the end of the session of this House and the long awaited long-term care and community support services strategy is still on the missing list, Mr. Speaker. It is shameful that people in the Province still do not know what this government’s plan is for home support and long-term care.

Mr. Speaker, I ask the minister, before we close this House, will he tell us exactly what he and his government envision for the care of the sick and the elderly in this Province?

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

SOME HON. MEMBERS: Hear, hear!

MR. KENNEDY: Mr. Speaker, I do not want to correct the member opposite in her use of grammar, but it is not a question of what we envision, it is a question of what we have done. What we have done, Mr. Speaker, is spent over $200 million –

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

MR. KENNEDY: Mr. Speaker, what we have done is spent over $200 million. We built long-term care facilities throughout this Province, state-of-the-art facilities in Corner Brook, in her own district in St. John’s, Signal Hill-Quidi Vidi. Look at the towers rising down there.

What we are doing, Mr. Speaker, our strategy will outline where we are going to go in the future but that does not take away what we have done in the past, because the past leads to that strategy, which will lead to the future, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The time allotted for questions and answers has expired.

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