HRLE Minister Refutes NDP Leader�s Comments

The Provincial Government is working diligently to reduce poverty in Newfoundland and Labrador and has committed over $132 million in this fiscal year to support more than 80 new initiatives aimed at improving the circumstances of people living in low income.

During an interview aired on NTV this past weekend, New Democratic Party leader Lorraine Michael made inaccurate and misleading statements that undermine the progress that has been made through the Poverty Reduction Strategy.

�This province is leading the country by example with its actions to reduce poverty and many other provinces are following suit,� said the Honourable Susan Sullivan, Minister of Human Resources, Labour and Employment. �Real progress has been made and for Ms. Michael to suggest otherwise demonstrates her lack of understanding of the complexity of this issue. As a government, we know we have more work to do. But we also know we are moving in the right direction. We have been encouraged to continue down the road we are on by the many agencies and organizations in this province that are well-informed advocates for vulnerable groups in our society.�

The leadership and commitment of the Williams Government has received strong support within Newfoundland and Labrador, and has been recognized nationally as well.

For example, national experts in poverty reduction such as Canada Without Poverty, Campaign 2000 and the National Council on Welfare (NCW) continue to commend the approach to poverty reduction taken by the Williams Government and hold it up as a model for the country. The NCW, an advisory body on matters of concern to low-income Canadians, has noted that Newfoundland and Labrador�s Poverty Reduction Strategy ��has clear objectives to improve the lives of people living in poverty and we see it having a positive impact.�

�Ms. Michael should realize that reducing poverty and its negative effects requires a long-term vision and a sustained commitment,� said Minister Sullivan. �More importantly, the work has to be done in collaboration with the community. The Williams Government has demonstrated vision and commitment and has engaged the community every step of the way. During our extensive 2008 consultations with stakeholders, including individuals living in poverty, we were told repeatedly that the strategy is making a significant difference in the lives of the most vulnerable in our province.�

Minister Sullivan also advised that the Provincial Government will be releasing its first Poverty Reduction Strategy Progress Report in the near future.

�The information in this report will clearly refute Ms. Michael�s comments and reinforce this government�s significant achievements to date in preventing, reducing and alleviating poverty in Newfoundland and Labrador,� added the Minister. �Our success so far is encouraging and illustrates our commitment to meeting the goal that we established in 2006, which is to be the province with the lowest poverty levels in Canada by 2014.�

For more information on the Government of Newfoundland and Labrador�s Poverty Reduction Strategy, please visit //www.hrle.gov.nl.ca/hrle/poverty/index.html 

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Media contact:
Jennifer Collingwood
Director of Communications
Department of Human Resources, Labour and Employment
709-729-0753, 690-2498
jennifercollingwood@gov.nl.ca

BACKGROUNDER
Accomplishments of the Poverty Reduction Strategy

Since the introduction of the Poverty Reduction Strategy, Newfoundland and Labrador has shown significant improvement in all available measures of low income. This is reflected in a reduction in the number of people living in low income, a decrease in both the depth and persistence of poverty, and an improved ranking relative to other provinces.

Using Statistics Canada�s Low Income Cut-Offs (LICO) after-tax, Newfoundland and Labrador was ranked seventh amongst the provinces in 2002. The most recent data from 2007 shows that Newfoundland and Labrador is now ranked third with only Alberta and Prince Edward Island having lower poverty levels.

In 2003, 63,000 people in Newfoundland and Labrador fell below the LICO with the latest figures (2007) showing that this number had dropped to 33,000. This means that 30,000 fewer people are living in low income in Newfoundland and Labrador today than in 2003.

Significant improvement is also reflected in the number of individuals and families accessing Income Support benefits. Today, there are over 10,000 fewer people in receipt of Income Support as compared to 2003.

Highlights of the Poverty Reduction Strategy between 2006 and 2009 include:

• Provided adults with disabilities living with family the same board and lodging supplement as those living with non-relatives;
• Expanded eligibility for the Newfoundland and Labrador Prescription Drug Program to include low income residents with the addition of the Access Plan (eligible prescription medications) and the Assurance Plan (protection against the financial burden of eligible high cost drugs);
• Increased access to the Special Child Welfare Allowance Program to help families offset some of the associated costs they incur at home when looking after a child with a developmental and/or physical disability;
• Expanded the Newfoundland and Labrador Dental Plan to enable 13-17 year olds in low income families to receive the same coverage as children and youth in families that receive income support;
• Committed to increase the minimum wage to $10 per hour by July 2010;
• Increased labour market participation for persons with disabilities;
• Expanded to 30 days the period prescribed for exemption and overlap of benefits as an incentive provided to income support clients who go to work;
• Enhanced benefits for income support clients for health services such as eye exams, eyeglasses, dentures, and the special diet allowance;
• Expanded to more areas of the province and increased the overall level of support for the Community Youth Network;
• Provided free text books for all students from K-12;
• Increased the instructional grant provided to schools to cover prescribed materials by eliminating fees;
• Lowered the rental rate for NL Housing tenants with employment earnings and for those aged 55 and older;
• Implemented an Affordable Housing Program for both seniors and persons with disabilities;
• Increased funding for the Kids Eat Smart Foundation to expand the initiative to more schools;
• Published a Guide to Provincial Government Programs and Services for Individuals and Families;
• Provided a Job Start benefit to support clients who leave Income Support for work;
• Established a Supportive Living Community Partnership Program;
• Established a provincial homelessness fund; and,
• Expanded the Adult Basic Education Program

2009 11 27                                                 3:40 p.m.