Strategic Social Plan

Mr. Speaker, the wide ranging expressions of support for the Strategic Social Plan, both provincially and nationally, have reinforced the importance of this initiative.

A number of key objectives have been established for the Strategic Social Plan this year. These include:

• commencing implementation in the Central region of the Province

• establishing a flexible initiatives fund to support demonstration projects

• developing a framework for the social audit, and

• creating linkages among government departments to support coordinated approaches to social and economic development.

We have allocated $2 million to support implementation of the Strategic Social Plan. $1.2 million of this will be committed for prevention, early intervention and community capacity building. The development and implementation of the Strategic Social Plan allows us to work cooperatively with community groups in addition to our traditional approaches to addressing social issues.

Work will commence this year on a new Strategic Economic Plan that will take into account the directions of the Strategic Social Plan to strengthen social and economic links.

Health

Mr. Speaker, health care is our largest expenditure, accounting for nearly $1 of every $3 we spend on all programs and services. In 1996 when this government was forced to institute cost savings to achieve an acceptable financial position, health care was the only sector that received additional funding. In 1997-98 we added $20 million to the health care budget and a further $10 million in 1998-99.

Stabilizing the Financial Situation of Boards

$40 million is being provided in this budget to eliminate the deficits that Regional Health and Community Service Boards have accumulated as of the end of March 1998.

A further $15 million will be added to the base budgets of Boards in 1999-2000, bringing the total base increase since 1997-98 to $45 million. This will provide $225 million in additional funding over a five year period.

Strategic Investments in Equipment

An additional $21 million will be allocated for hospital equipment, including $6 million to cover the cost of ensuring all Boards have a common financial system to provide accurate and timely financial information.

Investment in Facilities

Close to $90 million will be spent to continue construction of hospitals in St. John’s, Happy Valley - Goose Bay, Gander and Harbour Breton, and to provide new health care facilities in Stephenville, Fogo Island, Bonne Bay, Grand Bank, Old Perlican and Grand Falls - Windsor. Planning will also continue on the Dr. G.B. Cross Hospital in Clarenville.

Physician Recruitment

$4.1 million will be provided to recruit a further 35 salaried physicians.

Community Services

$1.3 million is allocated to implement the new Child, Youth and Family Services Act. $900,000 will be provided over the next three years for the Provincial Tobacco Reduction Strategy.

Drug Program

An additional $1.8 million will cover the cost of new drug therapies.

Accountability Framework

Mr. Speaker, these investments clearly demonstrate our commitment to health and community services. At the same time, however, we must ensure that hospital boards and other agencies do not incur deficits in the future. We will, therefore, put in place a new accountability framework for all boards and agencies. The accountability framework will maintain the role of boards while implementing new reporting procedures including approval of annual budgets and operating plans. Departments will take greater responsibility for monitoring the performance of boards and providing feedback to them. We will seek the advice of our boards, agencies and departments in devising and implementing our accountability framework.

Health Forum

Government is committed to the best quality health and community services system; one that is affordable, efficient and accountable. My colleague, the Honourable Minister of Health and Community Services will hold a health forum later this year to establish our future health priorities.

Education

School System

Mr. Speaker, we are proceeding with educational reform. School consolidation is happening, not primarily because of educational reform, but because of declining enrolment. The challenges we face because of declining enrolment would be far more difficult to deal with if, instead of a single system with fewer students, we faced three separate denominational systems each with fewer students.

School Board Grants

There will be no reductions in school board operating grants as a result of declining enrolments. School board budgets will remain unchanged and school boards can retain savings from the consolidation of schools to facilitate the consolidation process and to reinvest in the classroom.

In 1996 government gave a commitment to eliminate accumulated school board deficits so all boards could go into consolidation debt free. To complete this, a residual payment of $1.2 million is provided this year, bringing the total government contribution to school board debt elimination to $25.2 million.

Teacher Allocations

Mr. Speaker, declining enrolments would normally, under the existing formula, result in a reduction of 418 teachers for the 1999-2000 school year. We are pleased to announce that 236 teaching units have been added back to the system. Government’s decision not to reduce teachers in proportion to declining enrolment in 1998-99 and now again in 1999-2000 means the Province has the best pupil teacher ratio in the country. In contrast, in most other provinces the ratio has increased. In 1991-92 our pupil teacher ratio was identical to the Canadian average, 15.2. In 1996-97, the latest year comparative figures are available, the Canadian average had climbed to 16.1 while ours had improved to 14.5.

Student Assistants

In 1999-2000 government will maintain funding of $7.4 million for student assistants, even though enrolments are declining, to improve the educational experience of students with special needs. Special needs children will be fully aware, before they leave school in June, of the level of service available for them in September.

Investing in School Buildings

Last year government established the Newfoundland and Labrador Education Investment Corporation to address the need for new school buildings, better air quality and refurbishing of existing facilities. The original amount allocated last year of $50 million has now been increased by a further $75 million, for a total of $125 million. This is the most significant school construction program undertaken since Confederation. All projects are expected to be completed for the September 2001 school year. 16 new schools will be built, 6 others will be redeveloped and about 100 other schools repaired or refurbished.

Post-Secondary System

We are also taking several initiatives to provide additional resources for post-secondary education.

Operating Grants

In order to ensure that programs of study at Memorial University of Newfoundland and at the College of the North Atlantic are maintained at an acceptable level, the operating grants to both these institutions will be increased.

MUN will receive an additional $7 million which will increase its operating budget to $106 million. We will fulfill our current commitment to the MUN Opportunity Fund by contributing $9 million before the end of the fiscal year. To date the university has raised $15.3 million and the Province has now matched this amount in full.

The annual grant to the College of the North Atlantic will increase by $4.9 million to $45.4 million - an increase of 12%. In addition, $1.2 million is provided for Phase I for redevelopment of the Prince Philip Drive campus of the college.

While the funding increases will ensure the continued delivery of quality education, they will also enable those institutions to freeze tuition fees at existing levels for at least the next two years. This tuition freeze will be reviewed no earlier than 2001. This will encourage students to pursue studies at the university and college with greater certainty about the cost of their education and with less debt on graduation.

Awards Program

The Awards Program established last year also reflects government concern about student debt levels. The $4 million fund is paying over 4000 scholarships of $500 to $1,000 each to post-secondary students in 1998 and 1999. It is serving to bridge the gap for many of our present students before the new federal Millennium Fund begins scholarship payments in 2000.

Literacy

Last year government prepared a Strategic Literacy Plan to provide people with the necessary basic literacy skills to avail of employment opportunities. We are committing $500,000 this year to commence implementation.

Community Access

We are allocating $6 million over the next two years under a federal-provincial agreement to increase public access to the internet, primarily through public libraries.

Helping Those Most in Need

Mr. Speaker, on April 1 last year we completed the transformation of the former Department of Social Services into the Department of Human Resources and Employment. We are committed to fundamentally changing the way government formulates income support and employment policies and delivers these services. During the past year, the department has begun to redesign income support and employment programs and services. While it will take several years to complete all aspects of the transformation, we are already reaping positive results from a number of initiatives and changes.

New Employment Opportunities for More Families

The social assistance caseload declined by 6% between 1997 and 1998, and is currently at its lowest point since July 1993. In large part, this reflects increased employment opportunities, as well as labour market initiatives partnered by the federal and provincial governments.

Canada/Newfoundland Labour Market Development Agreement

In 1998-99 over 5,000 sustainable jobs were created and over 1,200 social assistance clients received counselling, training and employment assistance under the Canada/Newfoundland Labour Market Development Agreement. Government expects an extension of the agreement this year which will provide a further $232 million for labour market programs over another two years.

Single Parent Association

A pilot project commenced last year in partnership with the Single Parent Association of Newfoundland, assisted single parents on social assistance to increase their employability skills and find jobs. This project will receive another $500,000 in 1999-2000 to assist a further 120 clients.

NewfoundJOBS

A new pilot employment program will be implemented this year called NewfoundJOBS. It will be funded at $2 million to assist over 500 social assistance clients enter or re-enter the labour market to find long term sustainable jobs.

Earnings Exemption

The earnings exemption for social assistance clients will be increased to $75 a month for single persons and $150 month for couples and families. This will provide them with an additional $750,000 over five years and will allow clients to become more independent by finding part time work that will increase their monthly incomes.

Income Tax Refunds

Commencing this year social assistance clients will be allowed to keep the first $500 of any income tax refund they receive, an increase of between 3 and 11 times what they now retain. This substantial increase will support over 3000 clients in their efforts to find and retain employment. This will leave social assistance clients with an additional $3.5 million over five years.

Drug Card Coverage

Clients who leave social assistance for employment opportunities will have their drug card coverage extended from three to six months to assist them to make a successful transition to financial independence.

Assistance to Unemployed Workers

The budget also provides $5.7 million for a range of initiatives to assist unemployed workers find and maintain employment or to start their own business.

Employment for Persons with Disabilities

$8.2 million is allocated under the federal-provincial Employability Assistance for People with Disabilities Agreement to provide employment programs for people with disabilities. $500,000 is also provided under the Opening Doors Program to give individuals with a disability the opportunity to find work in the public sector.

Children & Youth

Youth Employment

This Province has won a national innovation award for its Student Work and Service Program. In 1999-2000, we will provide $2 million through this program to create about 2,000 jobs for post-secondary students, including about 500 jobs created through partnerships with MUN and the College of the North Atlantic.

A further $5.5 million is allocated to assist youth find their important first job and gain work experience and assist post secondary students find cooperative work placements.

National Child Benefit

On July 1, 1998 we participated, with other provinces and the federal government, in the launch of the National Child Benefit. We made a commitment to a $10 million Provincial Re-Investment Program. This year the program will move from planning to implementation, with $2.6 million provided to annualize the cost of the Province’s program. This is leading to improved infant child care and family child care services, expanded family resource centre programs and community based youth networks, adding to our resources for prevention and early intervention. These programs will assist children of low income families realize their potential.

Youth Remand Centre

The Province needs adequate facilities to properly care for young offenders. As Minister of Justice, I am pleased to announce $1.8 million is provided to commence construction of a new $4.5 million Remand Centre for young offenders to replace the outdated facility.

Minimum Wage

All sectors of society must help families regain their independence and give youth a good start in their working lives. With our economy performing well, there is a broad consensus across the Province that the minimum wage should be increased.

Government is therefore announcing that the minimum wage will increase by 25 cents from $5.25 to $5.50 an hour, effective October 1, 1999. This will raise our minimum wage to a level comparable with the Maritime Provinces. This is an appropriate and timely increase that will ease the burden on low income workers while not imposing undue financial hardship on the business community and employers generally.

International Year of the Older Person

In 1999 we celebrate the International Year of the Older Person. Four senior showcases, entitled "Showcase ‘99 - Celebrating Our Age", will be held throughout the Province. These events will include entertainment, healthy aging seminars and a trade show of goods and services of interest to older persons.

The clothing and personal comfort allowance for about 3900 seniors living in personal care homes will increase from $110 to $125 per month, putting $3.5 million more into the hands of seniors over the next five years.

Low Income Seniors’ Benefit

We also recognize the concerns of many of our low income public service pensioners. Public sector pensions have never had an indexing component. This has never been negotiated in any collective agreement. Neither public sector pensioners, employees or government have ever made contributions toward such a program. However, government is prepared to discuss seriously, the merits of an indexing proposal during the next round of collective bargaining.

Public sector pensioners have made it clear that those persons with the smallest pensions are those most in need. This is true no matter who their former employer was. All low income seniors in the Province face hardship. In this International Year of the Older Person, government has chosen to assist not only public sector pensioners, but all low income seniors.

We are therefore introducing a new provincial Low Income Seniors Benefit. All seniors aged 65 and over with annual family income less than $12,000 will receive a cheque in the amount of $200 each year. This will reduce by $25 for every $1,000 of income up to $20,000. This program will benefit 34,000 seniors, almost 55% of the 62,000 seniors who live in our Province. 22,600 of the beneficiaries will be women. At least 2,000, or one third, of public service pensioners over 65 will be eligible for the Seniors’ Benefit. The new Seniors’ Benefit will put $25.5 million into the hands of our low income seniors over the next five years.

Local Government

Many of our communities are in transition, while many others have inherited a financial situation that is difficult to manage. Government will assist communities to take advantage of their opportunities to become more independent and self reliant.

Debt Relief Program

A significant number of municipalities have already benefited from the Debt Relief Program. Before year end, government will provide an additional $5 million to help more towns achieve financial stability. With this new contribution, government will have provided a total of $17 million over the last three years for municipal debt relief.

Municipal Operating Grants

To give municipalities the financial benefits of stable and predictable funding, Municipal Operating Grants will be maintained at $21.5 million. This will provide an additional $3 million in 1999 and $9 million in 2000 to our municipalities.

Special Assistance Program

The budget also provides $3.3 million to maintain the Special Assistance Program designed to help municipalities cope with emergency situations such as natural disasters.

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