In the face of fiscal challenges, our government is particularly cognizant of the need to protect valuable social programs. Strong social programs not only meet the needs of the most vulnerable people in our society, but they also provide jobs, promote investment and strengthen our economy. We remain committed to respecting the five principles of the Canada Health Act, revitalizing our education system, and reducing the rate of child poverty to the lowest in the country. These commitments are significant cost drivers. We will not achieve them unless we can better manage the growth in costs and expectations.

Health

Mr. Speaker, the first priority for the people of the province, and indeed the entire country, is to have access to quality health care. People want to know that health care services will be available when they need them. As a provincial government, we have an obligation to make sure health care is well managed and efficient so that the best possible services are provided for the funds available. Right across the country, there is a recognition that our health care system requires reform in order to remain sustainable.

To strike the right balance between quality health care and an efficient, sustainable system, the provincial government is adopting a health strategy consisting of four major parts.

First, an integrated, efficient and smaller governance structure will be adopted. Research shows that integrated governance which joins community health services with acute health care services can produce the best overall approach to health care delivery. Therefore, during the course of 2004-05, the Department of Health and Community Services will oversee a process of board integration. The time is appropriate and we are now positioned to have fewer governing authorities to provide totally integrated services in defined regions of the province.

Second, a fair and equitable approach to locating health services will be established. Rural communities need assured access to well-resourced primary health care centres within a reasonable driving distance from their homes. People will benefit from the clustering of physicians and other care providers in strategic locations because it will improve recruitment and retention which means stability and continuity of service. Provincial criteria for locating specialty services will also be devised.

Third, the province will develop a skill mix framework to ensure that the right mixture of health care professionals is available in health facilities to deliver high-quality and effective services. It will also ensure that each health care professional is working in a job that utilizes the highest level of skill for which she or he has been trained. This framework will take into account the skill mix standards and experiences in other jurisdictions.

Fourth, a “best practices” culture will be developed throughout the health and community services system to continuously evaluate all areas of clinical and support services to improve effectiveness and efficiency. Building upon and learning from our experiences and what works best in other jurisdictions must become part of a culture of improvement.

Together, these measures will ensure the health system of the future maintains both quality and access. They will also ensure that the health system is managed within the funds available from government without placing the financial stability of the province at risk.

Mr. Speaker, several specific health initiatives in this year’s budget will enhance the quality of care available to many.

We will provide $4.3 million this year to implement seven primary health care projects and allow expansion for the development of additional primary health care networks.

We will implement year five of the Personal Care Home Strategy in order to increase personal care home rates for those who provide care to our seniors.

We will provide $200,000 to establish the new Ministerial Advisory Council and Division of Aging and Seniors within the Department of Health and Community Services to ensure the needs and concerns of seniors are properly understood and addressed.

We will provide an $8.6 million increase in the provincial drug programs, including an allocation of $800,000 to cover a new chemotherapy drug, Gleevec, to help fight cancer.

We will establish a new Chief Nurse position within the Department of Health and Community Services.

We will provide another $500,000 a year to place additional social workers in Labrador.

And, having heard the recommendations of the Reid-Power inquiry, we will make an initial allocation of $1 million in support of community mental health services. We are pleased to be able to start to address this widely acknowledged area of need in our health system.

Education

Mr. Speaker, public education is another of the government’s most important responsibilities.

We began by consolidating two departments, bringing responsibility for the K-to-12 system and post-secondary education back together. The K-to-12 system has seen a steady decline in enrolments, a trend that is expected to continue in the foreseeable future. Since 1996, educational reform has seen the number of schools in the province reduced by 29 percent. Student enrolment has declined in the same period by 23 percent and is forecast to continue to decline into the foreseeable future. Yet the number of teachers has reduced by only 17 percent.

After extensive stakeholder consultations, the Sparkes-Williams report recommended a teacher allocation formula that takes into account many factors, including the challenges faced by small rural schools. The full implementation of the Sparkes-Williams report has already been deferred for several years. We will continue to defer full implementation until the commencement of the September 2005 school year to allow school boards time to incorporate the adjustments into their staffing plans.

Under the Sparkes-Williams formula, 365 teaching positions would be eliminated this year. However, we have opted to spread the impact over two years. Instead of the number of teaching units declining this year by 365, 256 units will be removed, leaving 109 additional teachers in the classroom for another year. To ensure students in all areas of the province have the best possible access to specialized teachers and subjects, funding will be increased for distance education teachers and the number of courses offered online. Even after the adjustments for declining enrolment we will continue to have the best teacher-pupil ratio in the country this year.

From an employment perspective, we anticipate that more than enough teachers will retire this year and next so that no teacher layoffs should be required to meet the Sparkes-Williams targets.

Though pupil enrolment numbers have been declining, the number of school board districts and administration staff has remained constant. We will reduce the number of school boards by September of this year from eleven to five, for an anticipated savings of about $6 million annually.

Our government will make strategic investments this year in education infrastructure. Some $22 million will be available for major capital construction projects to improve existing schools and construct new facilities.

Our commitment to education extends from early childhood to post-secondary schooling. We will provide funding this year for the creation of a Ministerial Council on Early Childhood Learning to foster comprehensive programs across all government departments and agencies that focus on the learning needs of children and their families.

At the university and college level, the government has already announced a White Paper on Post-secondary Education to examine such pressing issues as accessibility and affordability. We are providing $250,000 this year to allow the White Paper to proceed.

The government has also continued the freeze on tuition fees at Memorial University and the College of the North Atlantic.

Help for Those Who Need it Most

Mr. Speaker, our social policy initiatives will assist the most vulnerable people in our society.

As of January 2005 we will implement a low-income personal income tax reduction program. The program will provide up to $460 a year to those who are eligible. That is nearly $40 a month. We estimate that up to 30,000 of the province’s taxpayers could receive a full or partial reduction under this new measure and realize $5.3 million in tax savings. For the most part, this will put more money back in the hands of low-income working people, students and seniors, some of the most financially disadvantaged people in our society.

We will also begin automatically indexing both the Newfoundland and Labrador Child Benefit and the Seniors’ Benefit to the Consumer Price Index commencing in 2004, for a combined increase in both benefits of $400,000. This will further increase our financial support for low-income families with children and for seniors.

The government will provide a benefit enhancement for people eligible for the Mother Baby Nutrition Supplement. Eligible mothers of newborn babies will be given $90 at the time of the birth of their child to address the additional costs at this critical period.

The Departments of Health and Community Services and Education will partner on a $250,000 “Healthy Children - Healthy Schools” program to ensure the school environment is conducive to healthy learning.

We will provide $500,000 for the Kids Eat Smart Foundation.

Government will provide an extra $1.6 million in 2004-05 to further enhance the Child Care Services Subsidy Program.

To assist persons with disabilities to enter the workforce, we will provide an additional $400,000 for supported employment.

We are providing an additional $100,000 to address gambling addiction, with particular focus on video lottery terminals, or VLTs.

We are committing $212 million for core income support programs to assist 28,500 cases throughout the province.

In recognition of the special challenges women face in our society, we will increase funding for the Women’s Advisory Council and for seven Women’s Centres located throughout the province.

Policing and Justice

Mr. Speaker, to better protect people, as outlined in our Throne Speech, we are providing more officers for the Royal Newfoundland Constabulary and the Royal Canadian Mounted Police.

We will enter into a three-year commitment to train 75 new RNC officers at Memorial University.

We will provide $2.25 million by 2007-08 to hire 45 new RNC officers.

We are also providing funding for an additional four RCMP officers in Labrador.

On top of this, both the RNC and RCMP will receive additional funding for new equipment and training totaling approximately $1.5 million. Some of this equipment and training was recommended by the Reid-Power inquiry.

We are providing an additional $300,000 to the RNC for the purchase of new vehicles. The total allocation for 2004-05 will be in excess of $600,000.

And in Labrador, we will provide $2 million for the Supreme Court in Happy Valley-Goose Bay.

These are just some of the positive social policy initiatives with which we will be proceeding in the year ahead.

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