Presentation
to
Estimates Committee
by
Honourable Walter Noel, Minister
Government Services and Lands

Tuesday, May 7, 2002
7:00 p.m.

• Mr. Chairman and Members of the Committee, I appreciate this opportunity to discuss our department�s estimates and review some of our activities.
  
• With me this evening are: Barbara Wakeham, Deputy Minister; Winston Morris, Assistant Deputy Minister of Consumer and Commercial Affairs; Bill MacKenzie, Assistant Deputy Minister of Government Services; Bill Parrott, Assistant Deputy Minister of Lands; and Wayne Moores, Manager of Financial Operations.
  
• Government Services and Lands consists of three branches: Government Services; Consumer and Commercial Affairs; and Lands.
  
• GSL has about 500 employees who provide a wide range of services in various regions throughout the province. We administer more than 85 acts.
  
• Our Government Services Branch provides accessible and efficient services to the public and business community in the areas of public health and safety, highway safety, driver and vehicle registrations, building accessibility, vital statistics, controlled use of land, and environmental standards enforcement. This branch includes: Five Government Service Centres, Vital Statistics, and Motor Registration.
  
• Our Consumer and Commercial Affairs Branch is responsible for ensuring that consumer interests are protected, and commerce facilitated. This branch includes Commercial Registries, Insurance and Pensions, Residential Tenancies, Securities, Trade Practices and Licencing, and the Credit Union Deposit Guarantee Corporation.
  
• Our Lands Branch manages the province�s Crown land, 95 per cent of the province; processes applications to acquire or use crown lands; archives Crown titles documents, and distributes maps and other land-related information. This branch includes Crown Lands, Land Management, and Surveys and Mapping.
  
• Our department has a wide range of duties and responsibilities. I believe we do a pretty good job, but we are constantly endeavouring to do more - particularly in improving consumer protection and awareness.
  
• We believe collaboration and consultation are important. We make every effort to work in partnership with our internal and external clients, and try to find new and more effective ways to carry out our responsibilities and serve citizens.
  
• I would like to highlight a few of our current activities, by branch.
  
• This year, our Government Services Branch will be hiring seven additional Environmental Health Officers to test water quality in public water supplies. These officers will be certified inspectors who will take samples from the "tap-end" of the supply. We are hiring six Newfoundland students this summer who have been studying environmental health at the University College of Cape Breton.
  
• This year, almost all lab testing will be done at public health labs in hospitals, instead of by our staff in office labs. This will enable our inspectors to take additional samples throughout the province, rather than spending time in the lab.
  
• This increase in funding to hire the Environmental Health Officers is part of government�s larger effort to ensure continued safe drinking water throughout the province, in concert with Health and Community Services, Environment, and Municipal and Provincial Affairs. Each of these departments has also received an increase in this year�s budget to address water quality issues.
  
• Our Government Services Branch acts on behalf of the Department of Environment with respect to spill response situations. We have 11 Environmental Health Officers deployed throughout the province to respond in these situations. These staff monitor, on a rotating shift basis, the Canadian Coast Guard Environmental Emergency line, 24-hours a day, 7-days a week.
  
• It is important to note that the polluter pays for clean up - not the taxpayer. No one may pollute with impunity.
  
• Last year, our department, and the Department of Environment, struck a committee of consumers and fuel and insurance industry representatives to advise government on regulation of domestic oil tanks and systems. That committee�s recommendations became effective April 1 of this year. Our staff monitor the implementation of these regulations on behalf of the Department of Environment.
  
• Last year, the Motor Registration Division instituted government�s first e-commerce application for consumers in providing for on-line motor vehicle registration renewals.
  
• This service now handles more than five per cent of all renewals, with some regions processing almost eight per cent via the internet. This year, we intend to develop a similar internet application for vehicle dealers to allow them to register their sales directly with Motor Registration.
  
• As you may be aware, the Government of Canada, in July 1999, amended the Criminal Code to increase the federal period of prohibition from driving for impaired offenders.
  
• In addition, the Criminal Code now permits judges to include provisions for reduction of the prohibition periods where ignition interlock programs are present in a province�s legislation.
  
• Many jurisdictions have also implemented more severe penalties for repeat offenders, and introduced vehicle impoundment for drivers found driving in violation of a suspension.
  
• In response to the federal changes, a committee was established to review existing penalties for persons convicted of alcohol offences.
  
• This committee consisted of representatives from the Newfoundland and Labrador Safety Council, the Department of Health and Community Services, the Royal Newfoundland Constabulary, the Department of Government Services and Lands, the Royal Canadian Mounted Police, the Department of Human Resources and Employment, the Crown Prosecutor�s Office of the Department of Justice, and the Civil Law Division of the Department of Justice. Mothers Against Drunk Driving were also invited to join the committee and participated in its deliberations.
  
• The committee�s mandate was to review and propose options in five major areas of driver management as follows: driver licence suspension periods, administrative suspensions, education/assessment/treatment, vehicle seizure/impoundment, and interlock devices.
  
• These areas represent the major issues impacting persons convicted of alcohol-related offences, and also represent areas that other jurisdictions have focused attention on in the past several years to reduce impaired driving.
  
• We now have a Bill before the Legislature to amend the Highway Traffic Act to incorporate changes recommended by this committee to increase suspension periods, introduce an ignition interlock pilot project, and provide for vehicle seizure and impoundment. This legislation would make our laws among the toughest in the country.
  
• Last week government also gave first reading to a Bill calling for a ban on the use of hand-held cell phones by drivers while driving.
  
• We have researched the use of cell phones by drivers, reviewed legislative initiatives elsewhere, and concluded it is time to act.
  
• There are limits on human concentration. A driver�s use of a hand-held unit for dialing and talking means that less attention is paid to driving.
  
• While this proposed ban is only on the hand-held unit, we are not condoning the use of hands free devices by drivers. We encourage drivers to pull to the side of the road to make or receive all calls. The manipulations required to use hand-held phones are an additional burden, but conversing is the real problem. All phone use constitutes a serious distraction. Some people may be more responsible than others, but we have to make laws to discourage those inclined to be irresponsible.
  
• We have also managed to get the fishing and trucking industries to agree to meet regulations requiring the elimination of spillage from trucks transporting fish products across the province. Our department has been trying to enforce this regulation for years. We have now agreed to a deadline of July 1 for strict enforcement. As of that date fish processors, as a condition of their licence, will be required to transport fish products in trucks which have containers or drip tanks capable of containing all liquids and preventing leakage. Regulations are now being amended to clearly define the nature of compliant trucks.
  
• I would also like to point out that our Motor Registration Division assumed responsibility for the Mobility Impaired Parking Program on January 2, 2002 and eliminated the $25 permit fee. This was done at the request of various stakeholder groups.
  
• I would now like to move to Consumer and Commercial Affairs
  
• Last fall we issued a Consultation Paper on Automobile Insurance Reform containing 51 proposals which would provide for reduced costs of insurance, restricted benefits in some areas, improved benefits in other areas, greater penalties for impaired and uninsured drivers, and enhanced consumer protection.
  
• I expect to be in a position to make recommendations to Cabinet on the proposals soon, with the intent to have any new legislation ready for this fall.
  
• One of the proposals is to provide improved consumer education on insurance matters. This issue was brought up by a number of respondents.
  
• Our department has made a commitment to do more in this area. Included in this budget is provision to hire an Educational Co-ordinator to develop consumer education programs for insurance and other financial areas such as investments, pensions, real estate, and pre-paid funerals. Also, additional funding has been provided for the development, printing and promoting of consumer education material.
  
• Government now has a bill before the House proposing the appointment of an advocate to represent consumer interests at Public Utilities Board automobile insurance rate hearings. This was one of the proposals contained in the consultation paper.
  
• During the consultation process, consumers sent us a clear message: They did not think their interests were being fully considered by the parties involved and many indicated a clear mistrust in the overall automobile insurance rate setting process.
  
• Government has heard those concerns and is responding to them. We are moving quickly on this matter to ensure consumer interests are properly represented if the PUB holds a hearing on automobile insurance rates in a few months.
  
• Bingos have been in the news quite a bit lately. Bingo playing is illegal under the Criminal Code of Canada unless they are licensed for charitable purposes. Government approves bingo operations by charities on condition they provide a minimum 15 per cent of gross revenues for charitable purposes.
  
• While we believe that 15 per cent is a reasonable goal, about half of all operators are not achieving it. We are working with them to try and improve this situation.
  
• In March of 2000, government approved satellite bingo to help increase returns. We also introduced an 18-month phased-in compliance period for the 15 per cent return. This called for a five per cent return by June 2001, a 10 per cent return by December 2001, and a 15 per cent return by June 2002.
  
• We also placed a moratorium on new bingo licences, with the exception of special events, in St. John�s, Mount Pearl, Conception Bay South, and parts of Conception Bay North until the end of the phased-in compliance period.
  
• In 2001, approximately $50 million was spent on bingo in the province. Of this amount, about $37 million was given out in prizes, and $6 million was allocated for expenditures such as supplies, rent, and salaries. This left about $7 million for charities, or 14.2 per cent.
  
• The St. John�s region has the lowest average return to charities at 10.57 per cent. We are holding meetings with licensees to explore ways to increase returns.
  
• It is interesting to note that since we have applied a more strict application of regulations returns to charities have increased considerably.
  
• Our budget this year also provides for a new financial examiner for our Securities Commission to provide enhanced monitoring of activities in this area. This is necessary, as more and more consumers are investing in mutual funds, the stock markets and educational funds.
  
• During the last fiscal year, we also increased the insurance on credit union deposits from $60,000 per type of account to $250,000. Prior to the increase 84.5 per cent of deposits were protected. Now, close to 100 per cent are protected.
  
• The people of Newfoundland and Labrador have long depended on the credit unions of the province to supply them with the financial services they have needed. By raising the limit for insured deposits, we have put in place an insurance system that is more comprehensive than that currently offered by the Canada Deposit Insurance Corporation.
  
• The Credit Union Deposit Guarantee Corporation was established in 1994 to regulate the industry and provide deposit protection for credit union members. Government appoints the board, consisting of three government and three industry representatives. It operates independently. Last November it found it necessary to remove the board of the Labrador Savings Credit Union and seek its amalgamation with the Eagle River Credit Union. This has yet to be concluded since the action is being contested before the courts.
  
• During the year we have raised questions about the need for proposed Cable TV rate increases announced by Rogers Cable for three speciality channel packages and the basic rate in Corner Brook. The amount of increase per customer, per month might not appear large but the total annual revenues to the company, and the cost to consumers, will be significant.
  
• I also wrote the Minister of Industry with respect to my concerns that Aliant Telecom were proposing a common basic residential price across the Atlantic region, which would mean higher prices in this province. I am concerned with their proposals which would result in higher costs for consumers in rural areas than in urban areas. Further, I object to the fact CRTC did not hold hearings on the matter in this province. Public hearings were held in Hull, Quebec which I attended and made a presentation.
  
• On another consumer issue, I have endorsed statements by the Secretary of State for International Financial Institutions, John McCallum, regarding, as he described it, "grotesquely" high credit card interest rates. I wrote to the federal minister responsible for consumer affairs asking that action be taken with respect to these exorbitant rates.
  
• While most interest rates are tied to the Bank of Canada rate, now at a 40-year low, rates charged on some credit cards, especially retail cards, seem to be excessively high. Given that many credit card issuers are reluctant to reduce interest rates, the federal government must review this matter to determine how consumers might be better protected.
  
• I do not accept arguments that things are okay the way they are and that consumers have lots of choice when it comes to credit cards. If a rate is unfair, it's unfair. It's as simple as that.
  
• I have also asked the federal finance minister to eliminate recent levies imposed on air travelers to offset the cost of new security measures for the airline industry.
  
• We recognize and agree with the need for increased security for the traveling public in the wake of the tragic events of September 11, however we disagree with funding such initiatives through a user pay system. The imposition of additional charges on travelers is unfair when the intent of the new security measures is to protect the public generally.
  
• Airline travel is currently extremely expensive in smaller, remote markets such as Newfoundland and Labrador. I have urged the federal minister to draw the necessary funds from general revenues of the Government of Canada.
  
• Last month we announced details regarding our Financial Awareness Month activities, our Financial Awareness Month Web site, and a special Financial Awareness Project undertaken in cooperation with the North American Securities Administrators Association (NASAA) and the Roman Catholic Archdiocese of St. John�s.
  
• The highlight was the launching of a special financial awareness course to be piloted as part of the archdiocese�s marriage preparation program. A new publication entitled Planning for Your Financial Future serves as the main document for the course. This publication, as well as an instructor�s guide, are both posted on the web site.
  
• Financial literacy is essential to the financial stability of all Newfoundlanders and Labradorians. We want to ensure citizens are in a position to make well-informed, educated decisions about where and how they invest and manage their personal incomes.
  
• We are also making efforts to improve the operation of our Registry of Deeds and Companies by modernizing equipment and improving administrative procedures.
  
• Turning to our Lands Branch, I would point out that Crown Lands has been very busy lately with the implementation of a new computer-based, inter-regional, inter-agency system; and when coupled with ongoing business rules, changes will improve efficiency in the complex process of managing our land resources for the benefit of all, while being timely in the issuance of Crown titles. This system will initially be used internally, but parts of it will eventually be available to the public via the internet. The system will streamline decision making and allow access to the provincial maps and data bases province wide, and once fully implemented will provide for the application for Crown land at any regional office.
  
• The Lands Branch has also expended considerable effort in property mapping along the coast of Labrador, and resource mapping in central Labrador, both in support of the land claims negotiations.
  
• New technological developments in digital mapping, web-mapping services, and satellite positioning are changing the way the branch does business. Last year, nearly all of the base maps the branch uses to manage resources and lands were converted to digital format. The staff are currently preparing these maps for use on the internet.
  
• Over 50 per cent of the large scale mapping (1:2500 scale) that now exists has been produced within the last 10 years. The branch is now calling contracts for mapping in the CBS, Paradise, Portugal Cove-St. Philip�s and western portions of the City of St. John�s.
  
• This work will revise mapping that is older than 20 years. Through partnering with municipalities and industry, we have been able to increase the number of maps produced annually by 40 percent.
  
• I would also like to mention our ongoing efforts, in conjunction with the federal government, in the federally-funded GeoConnections Program.
  
• This program is managed by the Surveys and Mapping Division in partnership with other divisions and departments of government and Newfoundland and Labrador Hydro. The main goal of the GeoConnections program is to make geospatial data available throughout government and to the public on the internet.
  
• One project under this program is entitled "Administrative Boundaries". It provides standard digital versions of municipal boundaries, electoral districts, parks and eco zones. The Lands Branch is currently defining the regional economic zones under this project, and other data layers may be added.
  
• The other GeoConnections project is called: "Connecting and Sharing Geospatial Data in Newfoundland and Labrador". The scope of this multi-year project is ambitious and includes:

• searchable indexes to digital data
• establishing internet publishing facilities
• internet viewing of all base maps
• internet viewing of Crown titles and land use
• interconnection of geospatial web services.

• These exciting advances are made possible by recent developments in technology, but they also reflect years of sustained effort by the branch.
  
• The department is continuing its program of cottage development in conjunction with other government resource management departments and representatives from the pulp and paper industry. The program involves the establishment of large administrative areas and the designation of specific locations within them where planned cottage development may occur. The purpose of this program is to reduce resource related land use conflicts and provide recreational cottage opportunities to the public.
  
• Mr. Chairman and Members of the Committee, thank you very much for this opportunity. I welcome your suggestions, questions and observations.