3. PRIORITIES: PUTTING SOCIAL PROGRAMS FIRST

Health Care - Our First Priority

Mr. Speaker, health care is our first priority. Last year, Government promised stable funding for health care for three years. We are extending that commitment another year, to 1999-2000. We are also providing additional funding for selected priority needs.

• We will build a new hospital in Harbour Breton, at a cost of $7.8 million. Planning and development will take place this year; construction will follow next year.
• The $30 million Lake Melville Hospital in Happy Valley-Goose Bay will proceed this year.
• Preliminary planning will be undertaken for health care facilities in Bonne Bay and in Stephenville. This is in conjunction with the Western Region health care needs assessment which will commence shortly.
• Construction will begin this year on the new Janeway Child Health Care Centre at the Health Sciences Centre site. Major renovations will also be carried out to St. Clare's Hospital. This represents a $100 million investment in health care for the Province.
• Government will move immediately to re-design the James Paton Memorial Hospital in Gander, as recommended in the Central Newfoundland Health Services Review. Government is committed to shelling-in the extension and proceeding with the next phase of construction to the hospital.
• New funding will be provided for a renal dialysis service at the Central Newfoundland Regional Health Care Centre in Grand Falls-Windsor.
• In recognition of the 10th anniversary of the "Man in Motion" world tour, we are contributing $500,000 to the Rick Hansen fund to establish a neurotrauma - spinal cord and head injury - research fund for the benefit of the people of our Province.
• The Department of Health has budgeted $4.5 million this and next year for the purchase of hospital equipment. Mr. Speaker, we are announcing today that, in light of this year's improved financial performance, an additional $2.5 million has been allocated for the purchase of hospital equipment for 1997-98. Health care foundations will be encouraged to seek private sector contributions to match this special one-time payment.

Mr. Speaker, it is time to deal with the shortage of physicians in rural areas. This is a serious concern. And today, Government is taking a number of steps to address this. Mr. Speaker, we are announcing today a $2.6 million increase in salaries for our rural physicians. This will increase the pay scale of rural physicians in Newfoundland and Labrador so that it is competitive with those elsewhere in Canada. This measure, in addition to a bonus program, is central to our efforts to provide quality health care to rural areas of the Province.

Mr. Speaker, Program Review savings have made possible these strategic health care investments in modern hospital facilities, new hospital equipment, and rural physician salaries throughout our Province.

Education - A New Beginning

After health care, education is our next priority and our largest expenditure. It accounts for about one dollar of each five that we spend. In 1996, significant structural changes were made to the Province's education system. The number of school boards was reduced from 27 to 10. The Provincial Colleges were consolidated from five to one. Streamlining administration allows us to realize savings that can be redirected to where it counts - the classroom.

Current funding will be maintained for the Provincial College in 1997-98. The College will be called upon to identify further efficiencies in the following two years.

The 10 new School Boards have a new mandate, operating under new legislation. But they are burdened with old debts. The Boards take up a new task bearing an old burden. Government will support the new Boards in their challenge to implement educational reform. We will lift the burden of old debt from these new Boards.

Mr. Speaker, we are announcing today that Government will retire all existing School Board debt, at a cost of $24 million. In future, the Boards will not be permitted to borrow without Government approval. The School Boards in the Province will get a fresh start, free of debt, free of interest costs. This is another one of the investments we are able to make because of our improved financial performance this year.

School Boards' administrative grants will be reduced in line with amalgamation and declining student enrolments. However, operating grants for schools themselves will be maintained at the 1996-97 level for each of the next three years.

In each of the last two years, we have budgeted $4 million annually for new schools and school maintenance. Mr. Speaker, this was too little, but it was all we could afford in advance of Program Review. It was not enough to build new schools where enrolments were increasing and buildings needed replacement, as in certain communities in Labrador. Nor was it enough to renovate schools where there were consolidations. Nor was it enough to fix problems with roofs, heating, and ventilation systems.

That is why, Mr. Speaker, we are announcing today a total of $38 million for new schools and school maintenance. There will be $14.2 million in 1997-98 and $23.8 million in the next two years. This $38 million is more than double what was spent in the last three years. Of this, $10 million will be used to build new schools in Nain, Rigolet and Hopedale. The balance will be used for needed maintenance and renovations to accommodate school consolidations.

Mr. Speaker, every Newfoundlander and Labradorian is justifiably proud that we are the first province in Canada to have connected all our schools to the Internet. This is a goal U.S. President Bill Clinton has set for all American schools by the year 2000. But Newfoundland and Labrador is already there. Now, we must press ahead, maintain our advantage, and give our children more opportunities to learn, to compete, and to win in a competitive global economy.

Mr. Speaker, we are announcing today that Government will provide an additional $2.5 million this year for School Boards to purchase new computer hardware and software. We call upon the public and the business community to match this commitment to the future of our youth so that we can make a total investment of $5 million to provide computers for our children.

Mr. Speaker, because the number of students in kindergarten to grade 12 is declining, and as a result the number of teachers will also decline, the time has come to ask ourselves if we can afford to maintain a pupil-teacher ratio that is better than British Columbia's, Alberta's and Ontario's, the three richest provinces in Canada. Should we move to the national average? Even that would leave us with the best student-teacher ratio in the Atlantic Provinces. This issue, and others, will be discussed with our major educational partners.

Last year, Government made a three-year funding commitment to Memorial University. Funding for the fourth year in 1999-2000, will be discussed with the University. Memorial University has also launched the MUN Opportunity Fund, with a goal of raising $25 million from the private sector. Government has committed to matching private sector donations dollar-for-dollar, to total $50 million for the University. So far $6.3 million has been raised from the private sector. We congratulate Memorial University and thank their private-sector contributors. Mr. Speaker, we are announcing today that Government will honour its commitment using savings we have achieved from this year's improved financial performance. We will match the full amount of $6.3 million. This will allow the University to proceed in the days ahead with new capital projects.

Social Services and Employment - Renewing the Social Safety Net

Mr. Speaker, one year ago we promised to review this Province's social services policies, and develop a comprehensive plan that would take bold new measures to solve old problems. Since then, we consulted internally, through the Program Review process, with those involved with the delivery of social programs. Next, we consulted widely with the public through the Social Policy Advisory Committee, whose interim report we received last fall, and whose final report we received last week. We followed the Committee's hearings closely. We agree with the public assessment - the status quo is no longer acceptable.

Mr. Speaker, for too long we have contributed to a cycle of dependency. For too long, we have seen people who want to work get caught in the welfare trap. It's time for bold measures. It's time we allowed people to gain new skills and find meaningful work. It's time for a new partnership with the Federal Government in service delivery and retraining. It's time for change.

Today, the Government is announcing that, on April 1, 1997, a new Department of Human Resources and Employment will replace the existing Department of Social Services. Programs of the Department of Social Services will be combined with the employment programs now administered by the Department of Development and Rural Renewal. The new Minister of Human Resources and Employment, the Honourable Joan Marie Aylward, will provide further explanation today and in the days ahead on this first phase of reform.

The second phase will take place on April 1, 1998, one year later, when community services - such as home support - will be transferred from the Department of Human Resources and Employment to an enlarged Department of Health and Community Services. These programs will be delivered through Regional Community Health Boards which will be mandated to deliver coordinated, multidisciplinary services focused on prevention and early intervention. This year will be used to plan a smooth transition. In the meantime, we will protect front-line service delivery to the public. Accordingly, there will be no staff reductions or office closures in 1997-98 as a result of this restructuring.

Mr. Speaker, Government is very concerned with growing numbers of youth who are becoming dependant on social assistance, even though their parents are not themselves receiving assistance. Therefore, effective April 1, 1997 young, single, able-bodied clients who are living with relatives and are between the ages of 18 and 21 will have their parents' resources taken into account in determining their eligibility for social assistance.

In keeping with its commitment to provide for the fullest possible community living for persons with developmental disabilities, Government will continue with its efforts to downsize and close group homes with a view to further integration into the community. This initiative is consistent with current policy direction and will be achieved through the use of more appropriate and less restrictive residential environments such as Co-operative Apartments and Alternative Family Homes.

This Government places great value on services provided to seniors and persons with disabilities in this Province. We acknowledge the critical role of home care workers in assisting both seniors and disabled persons who remain in their own homes. Mr. Speaker, Government is announcing today an additional $4 million to increase salaries for home care workers and provide them with worker's compensation coverage. These workers have no coverage for injuries sustained on the job. We will now pay for that coverage. This initiative also removes a potential burden from home care clients who could be held personally liable by the courts for injuries suffered by home care workers.

Children and Youth

We are placing special emphasis on re-investing savings for those most in need, especially children and youth.

• $200,000 will be provided for a day care subsidy for social assistance recipients, particularly single parents. This will help meet children's developmental needs and permit parents to pursue employment or training.
• The Province is participating in the design of a new National Child Benefit program with the Federal Government and other provinces. This will assist low income families with children in the transition from social assistance to employment thereby reducing child poverty.
• $70,000 will be provided to develop a program for foster parents training.
• A new $175,000 initiative will eliminate long waiting lists for post-adoption services.

In addition to these measures, I am pleased to announce two other significant initiatives for students. Both provide opportunities for students to earn money to pursue post-secondary education.

Today, we are announcing that $2.5 million will be provided for a student summer employment program in this Cabot 500 year. Mr. Speaker, in addition to this, we have just received confirmation that the Federal Government will partner with us in this new initiative by providing an additional $2 million, for a total program of $4.5 million. These public funds will lever substantial new investments from the private sector. In all, this will provide summer employment for 3,000 students. In dealing with this issue, we benefited from the advice of students, in particular through the Council of the Students Union at MUN and Sir Wilfred Grenfell College.

As well, Mr. Speaker, I am pleased to announce that a new "Tutoring for Tuition" program to assist students in low income families will be introduced with funding of $500,000. This program will enable high school students to earn money to attend post-secondary institutions by providing tutoring to students of low income families. This will be a valuable re-investment in our youth.

Mr. Speaker, Government recognizes that single parents and two parent families who have children are often unable to access sufficient funding through the Canada-Newfoundland Student Loan Program to be able to afford to pursue post-secondary education. Therefore, Government remains committed to providing additional resources to these students to support their education. Nevertheless, we must also address continued fiscal pressures. In this context, we are announcing today that effective this September, students with dependents will be required to access the maximum available student loan. Social assistance will be available as a supplement where living requirements exceed the living allowance provided under student aid. Under this initiative, students will not experience a reduction in the total available funds to pursue their education, but a higher proportion will be available in the form of loans.

Social Housing

Decent affordable housing remains a key factor in the overall health and stability of families. It is particularly important for proper child development. Newfoundland and Labrador Housing Corporation will focus on its core responsibility of ensuring adequate and affordable social housing. This remains a strong commitment by this Government.

The Federal Government is vacating the area of social housing. That is why we are negotiating the transfer of federal housing in the Province from Canada Mortgage and Housing Corporation to the Newfoundland and Labrador Housing Corporation. As part of that transfer, there will continue to be some financial assistance from the Federal Government. This devolution of social housing responsibility affords the Province the opportunity to achieve more efficient operation of public housing. We will take various steps towards this end, wherever we can, in partnership with the private sector.

Mr. Speaker, social housing in Newfoundland and Labrador will move to a rent geared to income scale in line with other provinces. Currently, all tenants pay rent based on 25 percent of household income. The new scale will range from 25 percent to 30 percent depending on income and household composition. The new scale will be sensitive to tenants with the lowest incomes.

The Corporation will limit its role in land development, continue to divest of market rental housing and move to greater partnering with the private sector. The Corporation will refocus on highly efficient delivery of social housing to those who need it.

Local Services

Mr. Speaker, local services should be delivered by local governments. Decisions should be made closer to where people live.

For example, School Boards have been given broad authority over their finances, and greater capacity to establish local priorities in the expenditure of education dollars. Regional institutional and community health care boards reflect local needs in the provision of health services. We have strengthened the role of local representatives in economic development through the new Regional Economic Development Boards in each of the 20 economic zones. We will continue to give greater autonomy to communities and regions for health care, education, economic development, and the provision of local services. We need to work with municipal governments to ensure they can provide local services more effectively.

Municipalities must become more self-reliant. The Province will work with municipal leaders toward this goal. There are differences among municipalities. Some have the revenue base to support adequate local services. Others do not. Government will therefore provide $9 million this year to the Newfoundland Municipal Financing Corporation. This money will be used by selected municipalities to restructure their debt, while assuming more responsibility for local services.

There will be no reductions in municipal operating grants this calender year. However, commencing January 1, 1998, the municipal operating grants are being reduced by 20 percent in each of the next three years.

The present cost sharing structure of 65 percent provincial versus 35 percent municipal does not reflect the appropriate level of municipal responsibility for services. The municipal share of debt servicing costs for municipal water and sewer debt will be increased from its present level of $343 per household to $400 in 1998 and by a further $50 per household in each of the next two years to $500 per household by the year 2000.

Mr. Speaker, a one-time payment of $4 million before the end of the 1996-97 fiscal year will be shared by St. John's and Corner Brook as transitional funding for the elimination of firefighting grants. In addition, we have set aside $5 million to assist in the construction of a new civic centre for the St. John's area.

Mr. Speaker, Government is committed to a strategic partnership with the Federal Government and the municipalities of St. John's, Mount Pearl, and Paradise toward the first phase of the St. John's Harbour Clean-Up. We applaud the municipalities for their leadership and join with them in funding our one-third share of $1.5 million to the proposed $4.5 million harbour clean-up this year. We call upon the Federal Government to commit assistance so that Phase 1 can begin without delay.

The Province and the Federal Government have agreed to a one year extension of the Infrastructure Works Program which will result in the spending of $30 million on municipal and other infrastructure in 1997-98. This is in addition to the $25 million allocated for our regular municipal capital works program.

Finally, in line with a longstanding request of the Federation of Municipalities, municipal assessment services will become a new agency run by a board composed of municipalities and the Province.

Policing: Sharing the Burden

Mr. Speaker, the Province will also continue to be policed by the Royal Newfoundland Constabulary (RNC) and the Royal Canadian Mounted Police (RCMP). We will not institute changes to the existing jurisdictional arrangements for this year. However, we will ask both forces to find efficiencies and achieve savings in their budgets.

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