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Third Session Forty-Eighth General Assembly

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Third Session Forty-Eighth General Assembly PROVINCE OF NEWFOUNDLAND AND LABRADOR HOUSE OF ASSEMBLY Third Session Forty-Eighth General Assembly Proceedings of the Standing Committee on Government Services April 16, 2018 - Issue 1 Department of Transportation and Works Published under the authority of the Speaker of the House of Assembly Honourable Perry Trimper, MHA GOVERNMENT SERVICES COMMITTEE Department of Transportation and Works Chair: Randy Edmunds, MHA Vice-Chair: John Finn, MHA Members: Carol Anne Haley, MHA Keith Hutchings Neil King, MHA Lorraine Michael, MHA Betty Parsley, MHA Barry Petten, MHA Clerk of the Committee: Kimberley Hammond Appearing: Department of Transportation and Works Hon. Steve Crocker, MHA, Minister Eilanda Anderson, Executive Assistant Joe Dunford, Assistant Deputy Minister, Operations Tracy English, Assistant Deputy Minster, Strategic and Corporate Services Cory Grandy, Assistant Deputy Minister, Infrastructure Tracy King, Deputy Minister Charlene McCarthy, Comptroller Patrick Morrissey, Manager of Budgeting Brian Scott, Director of Communications Also Present Paul Lane, MHA Laurie Bonia, Research Analyst, Official Opposition Office Ivan Morgan, Researcher, Third Party Office April 16, 2018 GOVERNMENT SERVICES COMMITTEE The Committee met at 9:05 a.m. in the MR. PETTEN: Good morning, everyone Assembly Chamber. Barry Petten, MHA for Conception Bay South; CLERK (Hammond): Good morning. Transportation critic for the Official Opposition. My name is Kim Hammond; I’m acting Clerk MS. BONIA: Laurie Bonia, Researcher, this morning for this Committee. Official Opposition. This is the Government Services Committee and MS. MICHAEL: Lorraine Michael, St. John’s the first order of business is to elect a Chair. East - Quidi Vidi. Are there any nominations from the floor? MR. MORGAN: Ivan Morgan, Researcher, NDP caucus. MR. KING: I nominate Randy Edmunds. MR. LANE: Paul Lane, MHA, District of CLERK: Are there any further nominations Mount Pearl - Southlands. from the floor? MR. FINN: John Finn, MHA Stephenville - Are there any further nominations from the Port au Port. floor? MR. KING: Neil King, MHA for Bonavista. Hearing no further nominations, the Member is acclaimed Chair. MS. HALEY: Carol Anne Haley, MHA, Burin - Grand Bank. Mr. Edmunds, would you take the seat? MS. PARSLEY: Betty Parsley, MHA, Harbour SOME HON. MEMBERS: Hear, hear! Main. CHAIR (Edmunds): Good morning, everyone. CHAIR: Thank you to the Government Services Committee, and now I’d like to ask the Minister Traditionally, our next step is to select a Vice- of Transportation and Works and his staff to Chair. introduce themselves. I call for nominations from the floor. MR. CROCKER: Good morning, everybody. MR. FINN: I nominate the Member for Steve Crocker, Minister of Transportation and Conception Bay South. Works. CHAIR: Okay, a nomination for the Member MS. KING: Tracy King, Deputy Minister, for Conception Bay South. Transportation and Works. Are there any more nominations? MS. ENGLISH: Tracy English, Assistant Deputy Minister, Strategic and Corporate Any further nominations? Services. Okay, I announce that the Member for MS. MCCARTHY: Charlene McCarthy, Conception Bay South is Vice-Chair of the Departmental Controller. Government Services Committee. MR. MORRISSEY: Patrick Morrissey, Budget This morning we are reviewing the Estimates of Manager. Transportation and Works. I’d first like to start off by the Government Services Committee to MR. DUNFORD: Joe Dunford, Assistant introduce themselves, starting with the front Deputy Minister of Operations. row. 1 April 16, 2018 GOVERNMENT SERVICES COMMITTEE MR. GRANDY: Cory Grandy, Assistant The 2018-19 salary budget was reduced by Deputy Minister for Infrastructure. $1.26 million to reflect government’s attrition plan. These savings will be achieved through the MR. SCOTT: Brian Scott, Director of elimination of positions as employees retire or Communications. leave their positions for other reasons. The 2018-19 salary budget was reduced by a further MS. ANDERSON: Eilanda Anderson, $427,000 to reflect the annualized impact of the Executive Assistant to the minister. new departmental management structure. No additional lay-offs will occur in the 2018-19 CHAIR: Okay, thank you for all the year to achieve these savings. introductions. The plan is to conclude by 12 p.m. at the latest. We will go in rotation, 10 minutes A comparison of the Department of for the Official Opposition, 10 minutes for the Transportation and Works total budget from Third Party and, at intervals, we’ll open the floor 2017-18 of $573 million to the 2018-19 budget up to the Member for Mount Pearl - Southlands. of $549 million shows a funding increase of $24 million. This apparent increase in the CLERK: 1.1.01. Department of Transportation and Works budget is somewhat misleading. To increase operational CHAIR: Shall 1.1.01 carry? efficiencies, responsibility for all government leasing spaces and the majority of government’s Minister. vehicle fleet have been consolidated into the Department of Transportation and Works. MR. CROCKER: Thank you, Mr. Chair. Funding of $18 million for leases and $3.1 million for vehicle operations costs have been I’ll start with some brief comments. Budget removed from various other core government 2018-19 marked the fourth consecutive year that departments and re-allocated to Transportation Transportation and Works has not requested any and Works. new funding. In 2018-19, the department identified pressures totalling $8.9 million, and The apparent increase in the Department of again we were able to absorb these pressures and Transportation and Works budget does not address them from within. represent an increase in government’s overall spending. In 2017-18, the department made a These costs increase are the primary results of commitment to host the annual Transportation tendering and contracting increases, utility price Association of Canada conference. Each year, increases and demand-driven material usage the province assigned to host this conference pressures from such items as salt and sand and agrees to send a higher number of delegates to the rental of heavy equipment. To find ways to this conference. As a review of the Employee deal with these pressures, the department has Benefits expenditures in 2018 in the Estimates undertaken an in-depth salary review and book, it will show that the amount spent operational budget review to absorb these costs throughout the department on TAC registration and review the individual program areas in fees is much higher than it would be in a normal 2018-19’s Estimates books will reveal a year. The department identified one-time significant number of funding increases and savings to fund these additional registrations. decreases. Budget 2018-2019 numbers: budget approved These changes in funding levels are primarily $274 million for operating, including $93 the result of the re-allocation of existing funding million for salaries; budget 2018-19 for current to properly reflect the financial requirements of account infrastructure is $69.7 million, including the department’s new organizational structure. salaries of $5.3 million; and budget 2018-19 for The department moved from a regional-based capital account infrastructure is $143 million, structure to a functional-based structure in 2018 including salaries of $10.2 million. and ’19. Mr. Chair, I just wanted to give a brief overview of some of the things that have happened, which 2 April 16, 2018 GOVERNMENT SERVICES COMMITTEE reflect the things that you will see in the MR. CROCKER: That would be the Minister’s Estimates today. I look forward to the questions Office, so there obviously would be the from the Members opposite and we’ll endeavour minister’s salary, the executive assistant to the to answer every question we can. And if there minister. About halfway through last fiscal year, are some questions that need further research, we hired a ministerial liaison in the department we’ll certainly do it. and that salary is approximately $44,000 a year. It reflects the salary somewhere around the Just as a side note, as our staff from TW political level of a constituency assistant. introduce themselves, Charlene said yesterday in a meeting that she’s been to many, many of This position is to be used, and is being used, to these meetings and this will be her last one, so do some work around – primarily working with feel free today to throw some extra hard municipalities because one of the areas that questions at Charlene because she has no we’ve identified as an office that we feel there is intentions of returning to Estimates next year. I some work that we can do to help streamline think she has a much better plan next year than some of the inquiries – because, as you probably spending a Monday morning in Estimates. She’ll would be well aware, there are quite a number of enjoy her retirement. inquiries in Transportation and Works. Again, thank you to the TW staff for all the I think one of the efficiencies that we’re hoping work they’ve put in to preparing for today’s to achieve in the department is not so much a Estimates so that we can endeavour to answer better working relationship, I guess, with your questions to the best of our ability. municipalities because I think we’ve always had a good working relationship, but there is a Thank you, Mr. Chair. consistent pipeline, I think, is important with municipalities. CHAIR: Okay, thank you. MR. PETTEN: Yes, communication is very Before we turn it over to questions, I’d just like important; there’s no doubt. to state that when a question is deferred to one of your staff that they introduce themselves just Under Employee Benefits, there was an increase prior to answering. When we ask to carry the in the amount budgeted under Employee heads, we shall wait until we’ve completed then Benefits and the revised amount. What was the carry the whole Estimates and accept them.
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