Thank you for those kind words of introduction.

You have made it an annual tradition to invite the Premier to address your members and guests and I am delighted to be a part of this fine tradition. The Rotary Club of St. John�s has a rich history. It is quite staggering to think that your club was founded when Sir Richard Squires was Prime Minister of Newfoundland!

Your longevity speaks to the commitment and dedication to service that have defined the activities of this club. It is impressive to consider the impact you and your members have had on the St. John�s and international community during a span of 90 years. Much has been accomplished due to your hard work, vision and dedication.

Our government�s vision of a prosperous and bright future for Newfoundland and Labrador is also being realized in so many ways. This past June, while visiting St. John�s, Bank of Canada Governor Mark Carney lamented that governments across Canada have failed to show leadership in promoting and supporting investments in growth. "[But] I should stress," he said, "that Newfoundland and Labrador is an exception in this regard. Major capital investments over the next couple of years in mining, public infrastructure and oil and gas will all but guarantee a few years of very strong growth. We would all do well to follow your example."

Our government will not detour from this example we have set for the rest of the country � balancing fiscal responsibility with smart, strategic investments in infrastructure, education, health care, natural resource development, innovation and economic growth.

The remarks of the Bank of Canada Governor were very encouraging and served as an endorsement of our vision for this province. While most jurisdictions were struggling to rebound from the global recession, Newfoundland and Labrador was being recognized for its leadership in promoting growth. We weathered the storm of the recession remarkably well, and that is no accident. Measures economists were suggesting be implemented to get through the recession were ones that had been cornerstones of our government: debt reduction, lower taxes, infrastructure investments.

Much of North America is still recovering. The United States, in particular, is having a hard time regaining its footing. Canada is doing better, but with strong ties to the American economy, our country can never afford to ignore what is happening south of the border. Nevertheless, we are developing stronger ties with other world economies, and looking to capitalize on opportunities overseas.

Energy is one of the major catalysts for continuing progress in our economy. We have established ourselves as an energy warehouse. We are in the driver�s seat when it comes to responsible development of our natural resources in a way that brings maximum benefit to the people of our province. This has been, and will continue to be, an important priority for this government.

Our oil and gas industry is a major contributor to the provincial economy. And the benefits of this industry have been maximized because of the deals we negotiated. In 2007, we negotiated an equity, benefits and super-royalty agreement to develop the White Rose satellite fields. What an incredible coming-of-age moment for Newfoundland and Labrador with our first equity stake in offshore oil!

The following year, 2008, we were successful in reaching a similar equity, benefits and super-royalty agreement to develop the Hebron offshore field. And 2009, we were successful in reaching a similar agreement for the development of the Hibernia Southern Extension. Three years, three equity agreements in projects to develop our offshore oil. These agreements were not achieved at the expense of our oil company partners.

They will benefit fully and fairly, as they should. What is critical for us is that these agreements were achieved, not at the expense of Newfoundland and Labrador, but so that we, too, would benefit fully and fairly from the development of our offshore petroleum resources.

Our oil and gas sector currently accounts for about 30 per cent of our GDP. Our oil production has been approximately 1.2 billion barrels, and we currently have four producing fields �Hibernia, Terra Nova, White Rose and North Amethyst. And first oil is expected at Hebron by 2017. In addition, we have discovered reserves of 3.1 billion barrels of oil and 11 trillion cubic feet of natural gas, with undiscovered reserves of 6 billion barrels of oil and 60 trillion cubic feet of natural gas. Continued long-term stewardship of these resources is so important. The key to advancing the industry is to encourage activity and investment by providing a fair return to investors while maximizing the benefits for the province. And, rest assured, this government will never waver from that principle. We are always mindful, though, that oil and gas reserves, and the revenue that flows from them, will end.

The Auditor General in his recent annual report highlighted this fact, and that a great portion of our revenues come from oil.

This is a concern for us as well, which is one of the reasons why our Energy Plan provides strategic direction for the development of our non-renewable resources but also for the creation of a sustainable economy built around renewable, clean energy.

One of the greatest accomplishments for this province in 2010 was the announcement of the development of the Lower Churchill � Muskrat Falls. Recently, I was in Ottawa and had the opportunity to meet with the Prime Minister. A loan guarantee for Muskrat Falls was one of the priorities I identified. Frankly, I would be astounded if the Government of Canada does not recognize the benefits of this development and seize the opportunity before them. Muskrat Falls has huge benefits, not only for the people of this province, but for Atlantic Canadians and indeed the entire country.

A loan guarantee for this project will provide the Government of Canada with a tangible example of how it is investing in reducing greenhouse gases and advancing toward its climate change goals. Muskrat Falls unites the Atlantic provinces in a regional energy marketplace that will provide greater choice for renewable energy supply, reduce reliance on thermal generation, and facilitate other renewable energy projects, wind in particular.

Construction and employment benefits from Muskrat will be felt through Eastern and Central Canada, including 3.5 billion dollars in income to labour and business. Significant purchases of specialized materials and equipment will be sourced from Ontario and Quebec � that�s right, I said Quebec. The Federal Government will benefit by an estimated 525 million dollars in taxes to the treasury.

A large thermal generating facility in Newfoundland and Labrador will be closed, reducing emissions and Greenhouse Gases by more than one million tonnes annually.

Newfound land and Labrador will be supplied by 98 per cent renewable energy. We will achieve stability in electricity rates. In fact, with a loan guarantee, even more money will go back into the pockets of ratepayers, not just here but in Nova Scotia as well. This deal will create 8,600 direct person years of employment right here in Newfoundland and Labrador.

Nova Scotia will be poised to meet its legislated targets for supply of electricity from renewable sources: 40 per cent by 2020. It will also be in a position to reduce its thermal generating fleet, greatly reducing its Greenhouse Gas emissions.

New Brunswick will have an opportunity to partner with Nova Scotia and Newfoundland and Labrador on strategic investments in transmission, infrastructure from which it will generate significant revenue in transmission fees. The current arrangement between Nalcor Energy and Emera DOES NOT consume the full amount of power available for sales in Atlantic Canada. Both New Brunswick and PEI have the opportunity to conclude power purchase arrangements with Nalcor Energy to meet their growing needs.

The bottom line is that Muskrat Falls is a stellar, clean, green energy project that has so many benefits for us and for the country.

Newfoundland and Labrador is a proud and contributing partner to this great federation of ours, though I acknowledge we�re still working to gain the full recognition and respect we deserve for our enormous contributions to this country.

Muskrat Falls is yet another way Newfoundland and Labrador will contribute benefits to the rest of Canada. I can�t repeat it often enough: there is a marvelous opportunity here for the federal government in providing a loan guarantee for this project � no risk and so many gains from all angles, environmentally and economically. It just makes sense.

And next will come Gull Island. And in barely a generation, we will also have the Upper Churchill to harness for our own maximum advantage.

As if our rich energy potential were not enough to fuel our renewed optimism, consider our mineral potential. Our mining and mineral exploration sector is taking off like a house on fire � and we have quite literally just scratched the surface of our potential in mineral production and value-added processing.

There was a story in the news a short time ago about a decline in the global supply of rare earth elements � minerals essential in modern technologies we all use. Who has recently discovered rare earth elements buried in the soil? Newfoundland and Labrador has.

And then there�s the iron ore, the nickel, the copper, the cobalt, the gold�

Our government is investing in initiatives to open up new opportunities, recognizing that our mining sector offers enormous potential to fuel growth in regions throughout our province for decades to come.

Our fishing industry remains an important plank in our provincial economy.

We�ve just invested 14 million dollars for fisheries science research, which will create a Centre for Fisheries Ecosystems Research and charter a fisheries science vessel, so that for the first time in the history of Newfoundland and Labrador, we will conduct our own fisheries research. And just this week, we welcomed the arrival of the Celtic Explorer to our waters � once again, another example of innovation, borne out of our self-reliance.

And in fishing communities dotting our coasts, we are doing unprecedented work in aquaculture � a revolutionary approach to fish supply in an era of global concern about the sustainability of wild fish stocks. The world is changing, and we are keeping pace by learning what we need to do to adapt.

Education has also been an important priority for our government, and is vital to the prosperity of our province. We have made substantial advances in our education system, with this year�s budget topping a record 1.3 billion dollars.

Recently, I was at our newest school in Paradise for its grand opening and was struck by the fact that our investments in educational infrastructure are making such an impact on the lives and potential of our young people.

Our students deserve modern environments in which to learn and grow, and our investments are making that happen. The building of new schools is part of our overall infrastructure strategy, with an incredible investment this year of 1 billion dollars.

Infrastructure spending is key to economic stimulus, which we have always known but was even more important as we navigated our way through the storm of the global recession. Our unprecedented investments in infrastructure, both before and during the recession, have laid the foundation on which sustainable growth can be built in the years to come. From roads and highways to wharves and bridges � from terminals and ferries to schools and hospitals � we have been doing all the right things to generate economic activity and investment optimism in our regions.

Yes, we have increased our spending, but in very strategic and meaningful ways, and it has been so necessary when you look at how public infrastructure, in particular, was neglected for so many years.

We have also made huge investments in our post-secondary education system, freezing tuition at Memorial University and College of the North Atlantic and helping students reduce their debt � measures which have been applauded by our young people and recognized nationally.

Look at the consistent successes of Memorial�s business and engineering students in national and international competitions where adaptation is key. Our students are learning how to think outside the box in order to generate solutions to challenges that arise out of left field. That�s the kind of thinking that will determine who succeeds in the years ahead.

Our successes of the past seven years are products of our adaptability and determination to be out in front of change as leaders. Remember the words of the Governor of the Bank of Canada: "We would all do well to follow the example of Newfoundland and Labrador."

The investments we continue to make in the months and years to come will be smart and sound, lean and focused. It is this fiscally responsible approach that has enabled us to significantly lower our public debt by nearly a third, and keep deficits manageable during the period of stimulus spending to combat the recession.

Employment in Newfoundland and Labrador in 2010 averaged 222,800, reaching an all-time high � up 3.7 per cent compared to 2009, with most of the gains coming in full-time employment.

The overall rate of employment growth in Newfoundland and Labrador last year was more than double the national growth rate of 1.6 per cent, and represents the strongest performance among provinces. Our annual average labour force increased 2.2 per cent to 259,900, and our participation rate rose by almost one per cent to stand at 60.2 per cent, which is the highest annual participation rate on record for the province.

Our unemployment rate declined by 1.2 percentage points to 14.3 per cent.

Newfoundland and Labrador led the country in GDP growth in 2010, and a similar rate of growth is expected in 2011. While the effects of the recession linger globally, we are performing amazingly well on many of the key economic indicators, including labour income, retail sales, housing starts, capital investment and employment.

We are forecasting employment in the province will rise by 2.2 per cent, and the unemployment rate will fall to 13.9 per cent. Personal income is forecast to rise by 5.8 per cent and retail sales by 4.9 per cent. Investment is forecast to ramp up significantly, increasing by 25 per cent.

In fact, Scotiabank�s senior vice-president and chief economist, Dr. Warren Jestin, recently said Newfoundland and Labrador will be a leader in growth in Canada over the next five years as our resources remain in high demand.

All of this is very good news that will further feed optimism and fuel the kind of investments that so often make optimistic forecasts like this self-fulfilling. Newfoundland and Labrador has never been in a stronger position and I am so excited about what�s to come for our province.

I know I am in the company of those who share a vision of success and prosperity for all in this amazing place we call home. Thank you so much for your invitation to address your club today.

Thank you.