GDP increased by 1.9% driven by
gains in mineral exports,
consumer spending and higher
Provincial Government spending.
unemployment rate declined by
0.4 percentage points to 14.8%.
GDP is expected to grow by 8.5%
driven by higher oil and mineral
Employment is expected to
increase by 1.2% to 218,300 and
the unemployment rate is
forecast to decline from 14.8%
$261.2 million surplus forecast.
Reduce net debt by $66.0
Reduce debt servicing costs by
Reduction in the History of the Province
value of personal income tax
measures when fully annualized is
Effective July 1, 2007:
Personal income tax rates
decreased from 10.57% to 8.7%,
16.16% to 13.8% and 18.02% to
Elimination of the 9% surtax.
personal income tax system,
including tax brackets, most
non-refundable tax credits and
certain benefits, will be
indexed to inflation.
Effective January 1, 2007:
Low Income Tax Reduction will be
adjusted from $12,000 to $13,000
for individuals and from $19,000
to $21,000 for families.
Benefit for married seniors
increased as a result of adjustments
to the income threshold range. Total
annual value of tax measure is $4.2
Effective January 1, 2007, small
business corporate income tax
threshold increased from $300,000 to
$400,000. Annual value of tax
reduction is $1 million.
Sales Tax on the private sales of
used vehicles reduced from 15% to
14%, effective April 27, 2007, a tax
reduction of $300,000 annually.
fees reduced or eliminated for an
annualized savings of approximately
PROMOTE ECONOMIC GROWTH
a Healthy Business Climate
million for a new Business
Attraction Fund providing for
large-scale, strategic investments
in business ventures and
infrastructure for the purpose of
attracting business to the Province.
million for a Business Grants Fund
to assist with start-up costs for
large scale companies setting up
business in the Province.
Additional funding of $500,000 under
the Export Development Strategy to
enhance trade and export development
activity in the Province.
million for the Small and Medium
Enterprise Fund, $7.78 million for
Diversification Fund, $1 million for
the Business and Market Development
Program and $500,000 for the Ireland
Additional $1 million for tourism
marketing bringing the total budget
to $11 million. Also, $104,000 for
implementing an outfitting sector
strategy and $100,000 for the
development of a cultural tourism
year of governmentís investment in
infrastructure of over $2 billion
over a six-year period. Investment
of $440 million in 2007-08 which
will generate an estimated 5,700
person-years of employment.
than $160 million investment in
roads including $66.5 million for
Provincial Roads Improvement
Program, $17 million for
construction of Phase III of the
Trans Labrador Highway and $15
million (cost-shared with federal
government) to provide a sealed
surface on Phase I of the Trans
million under the Vessel Replacement
Strategy for two new ferry vessels,
an additional $1.3 million for a
total of $10.3 million to refit
government-owned ferry vessels and
$5 million for maintenance and
construction of terminals and
investment of over $22 million for
million as the Provinceís
contribution under various municipal
capital works commitments.
million to replace regional forestry
buildings at Winterland and
Lewisporte and the regional
veterinary building at Pynnís Brook.
million for improvements and
construction of various tourism and
cultural sites such as Visitor
Information Centres in Port aux
Basques and Whitbourne, provincial
historic sites, St. Johnís Arts and
Culture Centre and the Corner Brook
million allocated this year to help
equalize the debt of towns seeking
to work co-operatively at the
funding of $5 million in 2007-08
($15 million over three years) to
begin implementation of the Fishing
Industry Renewal Strategy. In
addition to the direct investment of
$15 million, tax reductions of $25
million and an estimated $100
million contingent liability for a
revised loan guarantee program, this
brings Governmentís total commitment
to $140 million.
million to advance the aquaculture
Approximately $9 million invested in
the Agriculture and Agrifoods
Development Fund and Agrifoods
Investing $500,000 to address
emerging priorities in the forestry
sector and increase the capacity to
manage the resource.
for the completion of a Forest
Industry Competitiveness and
additional $700,000 for forest
resource road construction for a
total of $4.2 million.
million over three years to address
immediate safety and environmental
issues at the Baie Verte and Rambler
million to begin implementing the
Provincial Energy Plan.
than $900,000 for cooperative
research initiatives for wildlife
projects to leverage $2.6 million
from outside sources.
Increased the parks renewal strategy
from a three-year commitment of $3
million to a four-year, $4 million
Additional $500,000 for Newfoundland
and Labrador Arts Council.
Investment of $1 million to improve
the collection of geoscience data.
for the development of a Research
and Development Strategy and the
establishment of a Research and
million total investment for the
Centre of Excellence for
Environmental Science, Research and
Technology located in Corner Brook.
for the Institute for Biodiversity
and Ecosystem Science.
million to expand the Industrial
Research and Innovation Fund.
million for a new School of Ocean
Technology at the Marine Institute.
million invested in other research
and development projects.
million for the installation of a
fibre optic telecommunications link.
Approximately $1 million in 2007-08
for five new Career Information
to hire 10 career information
officers to provide career education
supports in the K-12 system.
Approximately $3.6 million over
three years ($1,154,300 in 2007-08)
to implement employment and business
development projects in rural areas
of the province.
Approximately $3.2 million over
three years ($1,060,000 in 2007-08)
to expand the Graduate Retention
Program to help an additional 100
graduates strengthen their
attachment to the labour market.
wage to be increased by $1.00 in two
cent increase on October 1,
Further 50 cent increase on
April 1, 2008.
Minimum wage rate of $8.00 per
hour effective April 1, 2008.
Review of minimum wage in
consultation with stakeholders
to be concluded in early 2008.
to increase funding for the
Community Youth Network and to
expand to six new areas of the
Investment of $140,000 to update the
provincial Strategic Literacy Plan.
Billion Invested in Education
billion invested in education, the
first time in the history of the
investment of $41 million in the
increase of $14.8 million for new
school construction, maintenance,
repairs and innovations; $583,500
for additional information
technology support specialists; $1
million for licensing of computer
software; $1.65 million to continue
the purchase of laboratory safety
equipment; and $385,000 in new
funding for provincial libraries.
million to retain 137 teaching
positions in the system that would
have been removed by the current
teacher allocation formula and to
create an additional 13 positions.
million to extend the provision of
free textbooks in core courses to
include all students from
Kindergarten to Grade 12.
million for a three-year Excellence
in Mathematics Strategy, including
25 new teaching positions.
million for year three of the
Cultural Connections Strategy;
million for year two of the
Futures in Skilled Trades and
Technology pilot in high
$800,000 for the extension of
the Physical Education Equipment
Program for Kindergarten to
$400,000 for a review of the
Grade 7-9 program.
to Aboriginal students through
enhanced guidance services
($330,000), an interchange program
for students in Grade 8 and Level 1
($150,000), cultural sensitivity
training for teachers ($100,000), a
training institute to help high
school students prepare to work on
industrial projects in Labrador
($400,000), adapting the Futures in
Skills Trades program to Labrador
($200,000) and after-school programs
to support studentsí health, social
and academic growth ($320,000).
Incremental funding of $20.4 million
for Memorial University. Total
investments for MUN include $15.3
million for a new academic building
at Sir Wilfred Grenfell Campus and
the construction of two student
residences, one in Corner Brook and
one in St. Johnís.
Additional investment of $8.3
million for College of the North
freeze maintained at Memorial
University and College of the North
Implementation of Student Debt
Relief Program with an annual
investment of $14.4 million which
Beginning in fall 2007, students
will be provided with up to $70
per week in up-front,
needs-based grants to offset
their borrowing costs; and,
interest rate charged on
provincial student loan debts
will be decreased from prime
plus 2.5 per cent to prime.
ACTION TO PROMOTE SOCIAL JUSTICE
additional $28.9 million for the
Poverty Reduction Strategy bringing
the total annualized investment to
over $91 million.
million ($11 million annualized) to
increase the board and lodging
supplement for adults with
disabilities who reside with their
own family members; a maximum
increase of $362 a month.
million to promote greater labour
market participation of persons with
disabilities including $300,000 to
expanding the Opening Doors Program
to Crown Corporations.
to support women vulnerable to
additional $250,000 annually for
low income earners to access
legal aid services;
$200,000 to increase grants to
the Provinceís eight womenís
$120,000 to research ways to
increase access to employment
supports for victims of
$15,000 to ensure a gender lens
is applied to a new Low Income
Guide to Government Services.
for the Vera Perlin Society for
infrastructure and expansion of
to enable the Newfoundland Labrador
Housing to provide a lower rental
rate for senior tenants aged 55 and
Newfoundland and Labrador Child Tax
Benefit rate will be increased by $5
a month through an investment of
to increase the Mother Baby
Nutrition Supplement rate by $15 a
to implement a Home Visiting Program
for vulnerable children to support
parenting and early childhood
million to extend the provision of
free textbooks in core courses to
include all students from
Kindergarten to Grade 12.
to increase the private child care
allowance to $400 for the first
child and $200 for additional
allocated to enable Newfoundland
Labrador Housing to increase
financial support for eight existing
Increased funding of $27.5 million
over five years for the Newfoundland
Labrador Housingís Modernization and
million over the next six years, to
more than double the funding for the
Provincial Home Repair Program to
eliminate the current wait list.
million for the construction of a
new regional office building for
Newfoundland Labrador Housing in
Enhancements to the Provincial Drug
Program to make drugs more
affordable. Annualized investment of
$17.5 million when fully
$1.4 million to provide children
under 18 diagnosed with Type I
diabetes with insulin pumps and
million to expand dental health
services for children between the
ages of 13 and 17 by offering dental
coverage for children in low-income
families and providing sealants for
to include coverage for new drug
therapies, such as primary pulmonary
hypertension and certain breast
cancers, under the Newfoundland and
Labrador Prescription Drug Program.
million invested in diagnostic and
Investment of approximately $67
million for new health care
million to improve access to health
care services by extending the hours
of operation for the MRI in St.
Johnís and Corner Brook, improved
pre-hospital care in St. Johnís,
enhanced mammography and CT services
in Carbonear and expanded endoscopy
services in Gander and Grand
$11.5 million to the Regional
Integrated Health Authorities to
address utilization pressures and to
invest in new initiatives.
Incremental funding of $1.6 million
to complete the hiring of 39 public
health nursing positions approved
for a 5% rate increase for foster
families, youth services, children
living with relatives and alternate
contribution to the Easter Seals
Newfoundland and Labrador
fundraising for a new facility.
million over two years will be
invested to provide telehealth
services for chronic disease
for the Kids Eat Smart Foundation
will be increased by $250,000 in
addition to the $500,000 in core
to support the community use of
schools by providing liability
insurance for school boards.
funding of $228,800 for a Provincial
Eating Disorders Program.
to address problem gambling in the
million for mental health and
addiction services which includes
$800,000 for the new Mental Health
Care and Treatment Act and $800,000
for the implementation of the Mental
Health and Addictions Policy
over $396,000 will be used to create
five new therapeutic speech language
pathologist positions to address the
wait list for these services by
million to be cost-shared with
Regional Integrated Health
Authorities to support an eight-week
orientation for graduate nurses in
Incremental funding of $2.39 million
to launch the Recreation and Sport
Strategy and Action Plan.
million this year ($9 million
annualized) to strengthen Child,
Youth and Family Services.
million investment over three years
to create 59 new positions in
response to the Lamer Inquiry
to the incremental funding in
response to the Lamer Report, just
over $700,000 is provided this year
for the Royal Newfoundland
Constabulary and $3.4 million for
the RCMP for 22 additional
Approximately $500,000 for Phase III
of the Court Security Expansion.
for the Adult Alternative Justice
million for the construction of the
Corner Brook Courthouse, $500,000 to
plan and design renovations and
additions to RNC Headquarters and
Annex and $500,000 to begin planning
for a new adult correctional
million in additional funds to
improve service delivery by
government services in key areas.
Increased investment of just over
$223,000 to the Department of
Natural Resources for the animal
health division for disease
second year of the bursary program,
funded at $185,500, will be provided
to recruit environmental health
officers to serve in rural regions
of the province.
million provided to establish Fire
and Emergency Services Ė
Newfoundland and Labrador (FES-NL).
million to upgrade the provincial
water bomber fleet.
Strategic Plan for Labrador