Liberal Party of Newfoundland and Labrador

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1 Mr. Glenn Davis, Vice President, Policy Atlantic Chamber of Commerce 1588 Chestnut St. Halifax, NS, B3H 3T2 November 13, 2015, Dear Mr. Davis, Thank you kindly for your letter dated October 23, 2015 regarding key economic issues for Newfoundland and Labrador. Our plan is focused on better management, open government and a stronger economy. I welcome the opportunity to share with you the Liberal Party of Newfoundland and Labrador s positions on the issues you have raised. Full details of the Liberal plan for jobs and growth are available at 1. Population and Labour Force What measures do you propose to attract, train and retrain a skilled workforce? Population growth is critical to the future of our province and Liberals consider it a top priority. A New Liberal Government will focus on building a more diversified economy that supports business growth and job creation. Liberals will also ensure that public policy is targeted at attraction and retention of qualified working age people and their families, including Newfoundlanders and Labradorians and newcomers to our province. We will take action on labour force development through initiatives such as our young entrepreneur retention program. This program will encourage innovation by our youth and provide an incentive for them to stay at home, invest here, and build businesses and stable careers. We will also identify employment opportunities and the associated skills, qualifications, and training required by industry. We will conduct and publish a labour market analysis to forecast job opportunities and coordinate with post-secondary institutions to ensure appropriate skills training programs are available. Our comprehensive labour force initiatives will go hand-in-hand with an immigration strategy to attract and retain new people and families to our province. We will also create a recruitment strategy to encourage ex-patriot Newfoundlanders and Labradorians to return home. The Liberal plan for population growth includes creating the economic conditions for more jobs through innovation and diversification. To encourage innovation and diversification, a New Liberal Government will develop a new provincial innovation

2 strategy in collaboration with industry and innovation partners to drive growth. We will support targeted investments to drive innovation in traditional and emerging industries. The Liberal platform also includes policies to reduce red tape for business, providing labour-based tax incentives for emerging industries, and encouraging growth in social enterprise. We also understand that population growth is a challenge for all of Atlantic Canada. Recently, Atlantic Canada s provincial Liberal Party Leaders met to discuss population renewal from a regional perspective. Recognizing that this is a priority for the region highlights an opportunity for regional cooperation focused on the attraction and retention of expatriates and newcomers. 2. Fiscal Strategy What measures would your government take to reduce the provincial budget deficit? Our province is currently in recession and now is the time to kick-start our economy. That s why the Liberal plan is focused on the economy and jobs. The Liberal team is comprised of strong entrepreneurs and business leaders who will put economic diversification and innovation at the core of policy decisions. Our fiscal strategy is to increase government revenue by driving innovation, diversification and economic growth, along with better management of government spending. The province s current fiscal situation could have been mitigated with stronger leadership and better management. Since the current government took office our province has received over $25 billion in oil money, yet their 2015 budget forecasts a deficit of over $1 billion. This comes from a lack of planning and poor fiscal management. One thing we will not do is go to the people of Newfoundland and Labrador and ask them to pay for the PC s fiscal mismanagement by raising taxes. In the 2015 budget, the Davis Government announced a 2 point increase in the HST. Liberals understand that this increase will hurt consumer confidence and businesses. It will also negatively affect people on fixed incomes, including seniors. An increase in the HST will slow economic growth at a time when we need to kick-start the economy to improve the fiscal situation the province is currently facing. In addition to implementing policies that will help broaden our economic base and increase the province s revenue base, a New Liberal Government will implement a number of initiatives geared towards fiscal responsibility and stability, such as: Establishing a realistic process for annual budgeting steering clear of the somewhat volatile commodity predictions currently embedded in the system; Undertaking a comprehensive review of government real estate requirements. For example, there is opportunity to sell redundant assets such as vacant government buildings; and

3 Following the recommendations of the Auditor General. The PC Government has consistently ignored recommendations that would reduce spending and improve efficiency. From 2009 to 2012 the Auditor General made 133 recommendations that were never fully implemented. Each of these recommendations represented an opportunity for savings, but instead now represents lost opportunity and resources taken away from other priorities. Our province is at a critical juncture. We need to create the right conditions for success and provide the kind of strong leadership and better fiscal management our province needs now, so we are positioned for a stronger future. 3. Public Sector Management What approach would you take to achieving efficiencies in government service delivery? The Liberal Party has held the PC Government accountable for numerous and frequent instances of poor fiscal management, including the failure to implement the Auditor General s recommendations, as noted above. In consultation with the people of the province and public sector workers, we have identified many areas where inefficiencies in government spending could be fixed with better management. For example, we understand that Newfoundlanders and Labradorians want full openness, transparency, and accountability when it comes to public sector management. We are committed to restoring openness to all aspects of government, starting by establishing an Independent Appointments Commission to take politics out of government appointments to Crown corporations, public commissions, and other public agencies. This nonpartisan commission will recommend the most qualified people for appointments, adding a much-needed level of independent review to the appointment process. We will also improve management oversight at Nalcor. A New Liberal Government will ensure that appointments to Nalcor s Board of Directors are based on the recommendations of the Independent Appointments Commission. We will review the operational structure of Nalcor to ensure accountability, and open the books on the Muskrat Falls Project and make public the details of how taxpayers money has been spent. We will also eliminate compensation for parliamentary secretaries. The PC Government is the only government in Atlantic Canada that pays its MHAs to be parliamentary secretaries to cabinet ministers, which has cost taxpayers over half a million dollars since the last election. We will make public spending on road maintenance fully transparent by implementing a province-wide needs assessment and making public a priority list of

4 roadwork. This will eliminate the potential for politics to influence infrastructure spending, and will improve efficiency by ensuring taxpayers dollars are spent on priority projects. There are a wide range of actions that can be taken without impacting public sector workers or diminishing the quality of programs and services. Other initiatives include increasing the energy efficiency and environmental performance of governmentowned buildings and improving and adhering to the Public Tender Act. A New Liberal Government s approach to better management will address inefficiencies through a process that is open, transparent, and accountable, in full consultation with the public service and other stakeholders. 4. Rural Sustainability What does your party propose to do to reduce the costs associated with health and social services to rural communities? Our commitment to better management extends to the delivery of health and social services, particularly with respect to rural areas of the province. We understand the challenges that our province faces in delivering these services, with a relatively small population living in communities spread across a large geography. Through consultation with stakeholders and public sector workers, the Liberal Party understands that there are actions we can take to reduce inefficient spending, and improve service. It s about smarter management of every dollar that goes into government programs and services, and ensuring that we get the best outcomes possible. For example, despite spending almost 40 cents of every tax dollar on health care, Newfoundland and Labrador has a poor record on health outcomes. We need to take a smarter approach to managing and delivering health care in our province. Liberals have a plan to improve health and health care that is dedicated to better access, better outcomes, and better health for all Newfoundlanders and Labradorians. A New Liberal Government will conduct a thorough review of health outcomes in all areas of our province s health system and set meaningful and measurable goals for improvements in the future. We will take a proactive approach to promote the health and well-being of Newfoundlanders and Labradorians, reducing later costs to the health care system. For example, we will utilize regional primary health care teams to maximize health care dollars, help address recruitment and retention in rural regions, and improve health outcomes, resulting in a healthier population.

5 Similarly, we will allow health care professionals, such as pharmacists, nurses, and nurse practicioners, to work their full scope of practice. Maximizing the skills and training of health care professionals and allowing them to work to their full scope of practice will enhance patient benefits, while improving the management of our services and use of our resources. A proactive approach is also the foundation of our plan to provide healthy living assessments for seniors aged 70 years and older at no cost to them. These assessments will help keep seniors healthier through preventative measures and education, allowing them to stay in their homes longer while reducing costs on the health care system. The Liberal Party also believes that, aside from the clear social responsibility to improve mental health and addictions services, there will also be reduced costs in the long-run by giving people the care they need, when they need it. The Mental Health Commission of Canada says the economic costs of mental health problems and illnesses are significant, at an estimated $50 billion each year in Canada. Broken down per capita, this means an estimated $749 million worth of economic costs each year in Newfoundland and Labrador. As part of a New Liberal Government s comprehensive Mental Health and Addictions Strategy, replacing the outdated Waterford Hospital with a modern facility will happen as a priority project and without delay. We will also work with community partners and schools to ensure coordinated and seamless approaches to mental health and addictions throughout Newfoundland and Labrador. A New Liberal Government will give mental health the same priority as physical health to ensure those affected by mental health and addictions challenges get the respect, support and services they need and deserve. A New Liberal Government will take a collaborative approach to better management of all government services throughout rural Newfoundland and Labrador. Working with local governments and stakeholders, we will support safe and sustainable communities through better service delivery. For example, working with communities and the federal government, a New Liberal Government will develop a province-wide water quality action plan. This plan will address quality, infrastructure, expertise and technology to ensure our water systems are safe and sustainable. We also recognize the value of programs and services provided by non-profit community organizations, and will develop multiyear funding arrangements to allow organizations to work on important issues throughout Newfoundland and Labrador.

6 We are committed to hosting an annual Premier s Forum on Local Government, where community leaders will be invited to discuss local concerns, including better and more efficient service delivery. 5. Economic Diversification What sectors of the economy does your party see as having the greatest potential for diversifying the NL economy? The Liberal Party sees vast potential to diversify the Newfoundland and Labrador economy. Newfoundland and Labrador is rich in potential given our natural resources, the beauty of our landscapes and the uniqueness of our communities. Our businesses are innovative and diverse. Our people are hardworking and adaptable. With all this potential, Newfoundlanders and Labradorians know our provincial economy should be performing better. The oil and gas industry remains a fundamental pillar of the economy, but we have to focus on other sectors too. We will make traditional industries fisheries, forestry, and agriculture a priority again by supporting innovative new technologies to drive jobs and growth. But we will also focus on new opportunities, encouraging and supporting innovation and entrepreneurship, as well as research and development in technology and knowledge-based industries. With respect to oil and gas, the province is an ideal setting for research and development on Arctic technology, including exploration and development in cold, harsh, corrosive, and ice-prone environments. This setting presents an opportunity to become a global centre of excellence for deepwater oil and gas development. A New Liberal Government will make targeted investments to help the local industry develop techniques and technologies achieve this goal. There is room to enhance the level of participation of Newfoundland and Labrador businesses in our oil and gas industry. There are numerous examples of companies that started by supplying petroleum industry activity in the province, who now have the capacity to reach export markets all over the world. We need to work with operators and local businesses to enhance the involvement of supply sector companies. We see similar potential to grow local companies through participation in providing goods and services to mining projects. To grow the mining industry, we have committed to increase funding for the Junior Exploration Assistance program, for example. We also have targeted plans for our traditional, renewable industries of fisheries, forestry, and agriculture, as well as tourism. For example, regarding agriculture, we have heard from stakeholders that this sector has enormous potential to expand, with the right combination of government policies

7 to support economic growth. As part of strategy to promote agriculture development, a New Liberal Government will make more Crown land available for agriculture uses. We also recognize the value of new areas of growth, such as technology and knowledge-based industries. A New Liberal Government will expand business incubation in affiliation with Memorial University, providing prospective entrepreneurs with increased access to investors, advisors, space, and networking services, with the end goal of seeding innovating new businesses. This highlights some of the many initiatives we will implement in our plan to build a stronger, smarter economy. For more details, I would invite you to visit Again, thank you for reaching out to us. We sincerely welcome any and all suggestions you may have on how we can build a stronger, smarter economy for Newfoundland and Labrador. Sincerely, Dwight Ball Leader of the Liberal Party of Newfoundland and Labrador

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