Newfoundland and Labrador Hansard — Members' Statements — 26 November 2001 (44th General Assembly, 3rd Session, Vol. XLIV No. 37)

2001-11-26

Newfoundland and Labrador — Debates (Hansard)

Newfoundland and Labrador Hansard — Members' Statements — 26 November 2001 (44th General Assembly, 3rd Session, Vol. XLIV No. 37)

2001-11-26

Newfoundland and Labrador — Debates (Hansard)

November 26, 2001 HOUSE OF ASSEMBLY

PROCEEDINGS Vol. XLIV No. 37

The House met at 1:30 p.m.

MR. SPEAKER (Snow): Order, please!

The hon. the Minister of Industry, Trade and Rural Development.

SOME HON. MEMBERS: Hear, hear!

MR. TULK: Mr. Speaker, I rise today to bring to Your Honour's

attention, a matter of what I consider to be the privileges of this House, and I

believe they are being somewhat impinged upon in this Legislature.

Mr. Speaker, if I could, I would like to start off by reading the definition

of what parliamentary privilege is, "Parliamentary privilege is the sum of

the peculiar rights enjoyed by each House collectively as a constituent part of

the High Court of Parliament, and by Members of each House individually, without

which they could not discharge their functions and which exceed those possessed

by other bodies or individuals."

Mr. Speaker, you, yourself, I think, were in the Chair some time ago when you

recognized that a member's privileges can be impinged upon when an action is

obstructing the member - in any way obstructing the member - from doing that

member's duties or from carrying them out in a manner that is above board.

You also, at that time, heard a submission that any action taken by any

member who has a tendency to obstruct or deny a member's ability, to obstruct

or deny any member from carrying out their duties, any action on the part of any

member of the Legislature who has the tendency to obstruct any member from

carrying out their duties, is a function of the privileges of that House.

Mr. Speaker, in this particular case, let me just say that I believe that

misquotes - in other words, making statements that are not true - whether they

are deliberate or otherwise, can lead to such obstruction.

Mr. Speaker, I would also like to say to you that I believe the same

privileges should apply to officers of the House, as well as individual members.

When another member rises in this House and misquotes or misinforms the House, I

believe, whether it is deliberate or not, it is fair to say that if they make

those statements about an officer of the House then they are breaking the

privileges of this House.

It has come to my attention that the Leader of the Opposition has made public

statements which represent a mis-characterization of the work and findings of

the Auditor General in this Province.

Mr. Speaker, I do not need to point out to you, but I will for the record,

that the Auditor General is an officer of the House, under the Auditor General

Act,

section 4.(3), and should, I believe, be accorded the rights, privileges

and protection as provided by the Legislature.

On November 23, the Leader of the Opposition made the following public

statement - and this was in the public media. He says: and I keep referring to

the Auditor General's report because the Auditor General is very concerned

about the manner in which they - obviously referring to the government - are

managing the Province's finances.

I would emphasize the section: in which they are mismanaging, or managing,

the Province's finances.

Mr. Speaker, the Leader of the Opposition, while in the House, has also cited

comments that he attributed to the Report of the Auditor General for the year

ended March 31, 2000, in the House of Assembly on November 20, November 21, and

November 23, 2001. I am going to give some excerpts, and I think they are

relevant from Hansard, on the corresponding sections from the Auditor General's

report, for your consideration.

On November 20, 2001, the Leader of the Opposition said, "Mr. Speaker,

the Auditor General for this Province has stated that she is extremely concerned

about the current state of the finances in our Province." You will find

that in Hansard on page 1640.

Mr. Speaker, here is what the Auditor General really did say: I am extremely

concerned with the current state of affairs - not, Mr. Speaker, with the current

state of finances in the Province.

SOME HON. MEMBERS: Oh, oh!

MR. TULK: Oh, you can laugh.

AN HON. MEMBER: (Inaudible).

MR. TULK: No, I am not.

Mr. Speaker, on November 20, 2001, the Leader of the Opposition said,

"Should the people of Newfoundland and Labrador trust these numbers when

the Auditor General of this Province clearly does not?"

Mr. Speaker, nowhere, nowhere in the Auditor General's report, does the

Auditor General say that she does not trust these numbers. The word trust is

nowhere to be found in her submission.

On November 20, 2001 the Leader of the Opposition says: "I happen to use

the exact words as the Auditor General used and I quoted her verbatim, directly

word by word.

On November 22, 2001, the Leader of the Opposition said, "Mr. Speaker,

the Auditor General, as I have stated before, is extremely concerned about the

current state of affairs of the finances in the Province." I emphasis

again, he is quoting the Auditor General as saying that she is concerned about

the current state of affairs of the finances in the Province.

Mr. Speaker, here again is what the Auditor General actually said: I am

concerned with the current state of affairs.

Mr. Speaker, does that say I am concerned about the current state of affairs

of the finances of the Province? Absolutely not. Here is what he was referring

to: the present initiatives for government departments, Crown agencies and

Memorial University are not legislated. With respect to the initiative for Crown

agencies and Memorial University, they are not mandatory in that they are at the

discretion of the minister responsible. None of the plans, information or

reports generated under these initiatives are required to be tabled in the House

of Assembly.

Mr. Speaker, I believe that if you take a very thorough review of the Auditor

General's report, it will be demonstrated that at no time in that report did

the Auditor General express that she is very concerned about the manner in which

the provincial government has managed the Province's finances. Nowhere in that

report will you find it.

The Leader of the Opposition, either deliberately or otherwise - I do not

want to suggest to him that it was deliberate - but his decision to use these

exact words while maintaining that he is quoting the Auditor General verbatim, I

think, is very significant. I say that to him in all seriousness.

I further submit that at no time did the Auditor General state, as reported

by the Leader of the Opposition in Hansard, November, 2001, that the Auditor

General has stated that she is extremely concerned about the current state of

finances in the Province, or extremely concerned about the current state of

affairs of the finances of the Province.

I also submit to you that she, at no point in time, in any way, brought up -

in any manner did she bring up - that she did not trust the numbers, as was

clearly indicated by the Leader of the Opposition.

Mr. Speaker, I can only say to you that I believe that these mis-characterizations

of the Auditor General's report, both inside and outside the House of

Assembly, and the attempts to pass them off as verbatim quotes, represents a

significant and a serious infringement and an impingement on the ability of the

Auditor General to perform her functions in a impartial manner.

The Leader of the Opposition has made concise claims and has attributed them

to an Officer of the House. It is my contention that the Auditor General never

made such statements, and the House of Assembly must seek to address the assault

upon or interference with the ability of the Auditor General to execute her

duties as set forth in the Auditor General's Act.

Furthermore, it is my contention that the Leader of the Opposition, by

attributing non-existing findings to the Auditor General, is presenting to the

House of Assembly a false statement that could, and has the ability to, deceive

and mislead this House, either deliberately or otherwise.

I want to conclude by saying that it is critical that all Members of this

House of Assembly and the Officers of the House of Assembly be held to the same

standard of conduct as provided in the House of Assembly Act. It is also

critical that the integrity of the House and its deliberations be maintained.

Recent statements of the Leader of the Opposition must be interpreted in a

manner that he intended them to be interpreted by members of the House and the

public. Therefore, the exact statements of the Leader of the Opposition must be

measured against the exact findings contained in the Auditor General's report

for the year ended March 31, 2000.

I ask that the House of Assembly, pursuant to the House of Assembly Act, that

we would ask you to rule upon this and find that indeed there has been a breach

of the privileges of members of this House.

Thank you very much.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Opposition House Leader.

SOME HON. MEMBERS: Hear, hear!

MR. E. BYRNE: Thank you, Mr. Speaker.

Before I get into, I guess, our opinion on the question of privilege, let me

say that a question of privilege is rarely raised in the House; and members,

when raising a question of privilege, must opt to do so because of the serious

nature that such a point of privilege contains.

Let me say first of all, Mr. Speaker, that I believe, based upon the rules in

this House, that the point of privilege raised by the Deputy Premier is, unto

itself, unparliamentary, simply because it goes to motive. He is impugning on

the Leader of the Opposition, a motive of being purposeful in intent to either

deceive or to otherwise create a false perception.

I believe and I submit to Your Honour, the Chair of the House and the Speaker

of the House, that, unto itself, impugning motives on another member - it is

clear and the Deputy Premier knows this, as a former House Leader - that unto

itself is unparliamentary.

Let me also say, because he has quoted certain things outside this

Legislature, a distinction - and I say to Your Honour that, in ruling on this

matter, we bear in mind that there is a distinction in Beauchesne , under

Parliamentary Rules, between questions of privilege and questions of order. I

quote 26.(1), "A question of order concerns the

interpretation to be put

upon the rules of procedure and is a matter for the Speaker or, in a committee,

for the Chairman to determine."

On page 13 of Beauchesne , 31.(1), it says, "A dispute arising

between two Members, as to allegations of facts, does not fulfill the conditions

of parliamentary privilege."

Section 31.(3) - this is important, because

the Deputy Premier, the former House Leader under the government, knows the

rules of Beauchesne , has quoted statements made by the Leader of the

Opposition, the Member for Humber West, outside this Legislature, and it is very

clear - and I quote for your consideration, 31.(3), "Statements made

outside the House by a Member may not be used as the basis for a question of

privilege."

Mr. Speaker, I submit to you, in

summary, this: One, the question of

privilege raised by the Deputy Premier unto itself is unparliamentary, because

it goes and impugns a motive on another member which, unto itself - standard

practice and tradition in this House say that is not parliamentary.

Secondly, what we are looking at here is not so much a point of privilege but

a point of order and a distinction between two members' statements.

Thirdly, that the Deputy Premier, in his submission to Your Honour, has

clearly used statements outside of this House as a basis for his point of

privilege, which onto themselves, Mr. Speaker, are clearly unparliamentary. The

fact remains that the basis, I submit, for this point of privilege is to try to

underscore again the fact that the Leader of the Opposition is doing his job in

questioning the government on the management of the finances.

SOME HON. MEMBERS: Hear, hear!

MR. E. BYRNE: That onto itself, Mr. Speaker, is unparliamentary. The fact

remains that the questions asked in this House, references made, were made based

upon standing reports that have been presented to this Assembly, not only for

the members purview but for the review and purview of the entire listening

public.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Government House Leader.

SOME HON. MEMBERS: Hear, hear!

MR. LUSH: Mr. Speaker, not to prolong the matter, a serious matter, but

just simply to say that, with reference to the unparliamentary language or any

unparliamentary accusations, I clearly heard the Deputy Premier several times

refer to the fact that he was not making any accusations in that matter, and

certainly covered himself on three or four occasions to say that the Leader of

the Opposition did not do it deliberately. So, he certainly did not do that. I

am quite certain that if the Deputy Premier did that, he would do what all

parliamentarians do and withdraw unequivocally.

Mr. Speaker, I just wanted to make that clarification, that there was no

attempt by the Deputy Premier to say anything unparliamentary or to attempt

anything unparliamentary.

Thank you, Mr. Speaker.

MR. SPEAKER: The Chair will take the point raised by the minister under

advisement.

Statements by Members

MR. SPEAKER: The hon. the Member for Bonavista South.

SOME HON. MEMBERS: Hear, hear!

MR. FITZGERALD: Thank you, Mr. Speaker.

I would like to stand in the House today to recognize the longevity of four

individuals in my district who have reached milestones, I guess, that most of us

here, and other people we know, would like to achieve, four people in my

district who have celebrated their 100 th , their 101 st and

102 nd birthdays since the closure of this House last May.

SOME HON. MEMBERS: Hear, hear!

MR. FITZGERALD: Mr. Speaker, I would like to read the individuals names

for the pleasure of the people hearing them here in this House.

Mrs. Annie Belle Johnson, who is residing at Shirley's Haven in Catalina,

recently celebrated her 100 th birthday; Mrs. Laura Sweet, at the

Golden Heights Manor in Bonavista, recently celebrated here 101 st

birthday; Mrs. Gertrude Hobbs, of Jamestown, Bonavista Bay, who is residing with

her daughter, recently celebrated her 101 st birthday; and Mrs. Gladys

Yetman, residing at the Golden Heights Manor in Bonavista, recently celebrated

her 102 nd birthday.

I say to members here, it is an inspiration to be able to sit and talk to

those four individuals who can recall times past and can recall the events

leading right up today. The old clich that we have all heard growing up, is

always repeated when you talk with them: Hard work never hurt anybody.

They are a testimony to that phrase, and I would like to recognize their

birthdays and their special celebrations, right here in this House today.

MR. SPEAKER: Order, please!

The hon. member's time is up.

SOME HON. MEMBERS: By leave.

MR. SPEAKER: By leave.

MR. FITZGERALD: I am sure all members here join with me in wishing those

four individuals many years of happiness and health as they continue to enjoy

life with their family and friends.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Conception Bay East & Bell

Island.

MR. WALSH: Thank you, Mr. Speaker.

I rise today to recognize the work of a Bell Islander, Russell Bowers, in

promoting the work and telling the life story of one of Newfoundland's

greatest musical artists, Harry Hibbs.

The first product of his labour is an album entitled The Very Best of

Harry Hibbs, Volume One . Since its release in August of this year, the album

has had amazing sales. Interest is coming not only from the generation who

listened to Harry, but it is also introducing the music to a new younger

audience who are experiencing it for the first time.

There has been much interest in Harry Hibbs since his death in 1989, after a

brief battle with cancer. Russell Bowers, who lived on Bell Island, started

compiling the album and it fascinated him so much to hear the tales from people

who had worked with the musician, that Bowers decided to take it one step

further.

Bowers is now working on volume two and has also completed a documentary for

CBC Radio, which aired in October. He thinks there may be a TV documentary and

perhaps a book.

I should point out also that Russell's family still lives on Bell Island.

His parents, Steadman and Daisy, reside there today.

Harry Hibbs has made a major contribution to the music of this Province, and

I ask Members of the House of Assembly to join with me in recognizing the work

of Russell Bowers and offering him our best wishes in the future on this

project.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Harbour Main-Whitbourne.

SOME HON. MEMBERS: Hear, hear!

MR. HEDDERSON: Thank you, Mr. Speaker.

I rise today to offer congratulations to a very special couple, Majors Ross

and Beulah Cole, residents of South River, Conception Bay. Today, they celebrate

their 65 th wedding anniversary. This wonderful couple were married in

Deer Lake on November 26, 1936, raising a family of four, a family that has

extended into twelve grandchildren and twenty great-grandchildren.

Not only did this couple dedicate their lives to their family, but they also

made a commitment to their faith. Both Ross and Beulah answered the call to the

Ministry by committing their lives in the service of their Savior through the

Salvation Army Corps, accepting postings in all corners of this Province

including Clarkes Beach, Fortune, Springdale and Lewisporte.

At an Open House, Mr. Speaker, at the Salvation Army Citadel in Clarkes Beach

on Saturday past, Majors Ross and Beulah, surrounded by their family, were

visited by friends and dignitaries. It was amazing to see the steady stream of

well wishers intent on offering congratulations to a couple whose lives were

such an inspiration to others, whose service to others and to their God has been

unwavering for close to ninety years.

Mr. Speaker, this couple continue to contribute in many different capacities

in their Church, their community, in any way they can to help improve the

quality of life for those around them. In my conversation with both Major Ross

and Major Beulah, I was assured by them that they did not intend to slow down as

long as they could enjoy -

MR. SPEAKER: Order, please!

The hon. member's time is up.

MR. HEDDERSON: By leave, Mr. Speaker?

AN HON. MEMBER: By leave.

MR. SPEAKER: By leave.

MR. HEDDERSON: Thank you, Mr. Speaker.

I was assured by them that they did not intend to slow down as long as they

could enjoy continued good health. This humble couple were very appreciative of

the attention they received from their family and friends, thankful for the

congratulations I conveyed from the Premier, from the Leader of the Opposition,

the Prime Minister and the Lieutenant-Governor.

I respectfully ask all the members of this House to join with me in extending

congratulations to Majors Ross and Beulah Cole on the occasion of their 65 th

wedding anniversary, wishing them continued years of health and prosperity.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Cartwright-L'Anse au Clair.

SOME HON. MEMBERS: Hear, hear!

MS JONES: Thank you, Mr. Speaker.

I rise in this House today to acknowledge and congratulate the volunteer

efforts of Mr. Ford Rumbolt of Mary's Harbour and Ms Agnes Pike of West St.

Modeste. Both individuals were not only awarded the Provincial Volunteer Medal

by his Hon. the Lieutenant Governor, Maxwell House, at a ceremony in Goose Bay

last week, but they also received awards for twenty years of service to

municipal government in Newfoundland and Labrador.

Mr. Speaker, Ms Pike is currently the mayor of West St. Modeste, President of

the Combined Councils of Labrador, a Director on the International Grenfell

Association, a Director on the Labrador Straits Economic Development Committee,

and also holds a set on the provincial Literacy Council, the Strategic Social

Plan Committee for Labrador, and the Labrador Straits Family Resource Center.

She has given more than twenty-five years to volunteer work in Newfoundland and

Labrador, contributing to the enhancement and progress of communities and

people.

Mr. Speaker, Mr. Rumbolt is currently the Deputy Mayor of Mary's Harbour,

Vice-President of the Combined Councils of Labrador, Vice-President of the

Southeastern Aurora Development Corporation, and holds positions on the Lions

Club and the Local Church Committee. He has over twenty-five years of volunteer

work in our Province and continues to advocate on behalf of the people of his

region.

Mr. Speaker, it has been a pleasure for me to have the opportunity to learn

and work with both these individuals. They have demonstrated many times their

commitment to the District of Cartwright-L'Anse au Clair, and also to our

Province. It is my honor to recognize both of these individuals in this House

today and to congratulate them for receiving these dual awards.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Trinity North.

MR. ROSS WISEMAN: Mr. Speaker, I rise today to acknowledge Mrs. Edith

Bailey, a wonderful lady from my district, who is celebrating her 100 th

birthday today.

Aunt Ede, as she is affectionately known to her friends, lives in Hickman's

Harbour on Random Island. She is very alert, has a great sense of humor and is

very active. In fact, Mr. Speaker, on Saturday night, at a birthday dinner, she

stood, took the microphone and said grace before the meal started.

Mr. Speaker, one other remarkable thing about Aunt Ede is her family history.

I am sure that family must hold some form of record in Newfoundland because she

has had two sisters who have reached the age of 103, one other who has reached

the age of 99, another 97, and her mother died just three months short of

reaching 100. Obviously, that family has achieved some sort of record, have

recognized what it takes to live a long and prosperous life in rural

Newfoundland.

Mr. Speaker, I would ask everybody in this House to join me today in wishing

Aunt Ede a very happy 100 th birthday.

Just to show you that she has not lost her sense of humor, and she still

believes in Santa Claus, her request to Santa Claus this year is pretty simple

and straightforward; she wants something very simple, like a man.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Burin-Placentia West.

SOME HON. MEMBERS: Hear, hear!

MS M. HODDER: Mr. Speaker, I rise in this hon. House today to relate a

notable accomplishment on the Burin Peninsula.

In 1999 the 3L Training Board under the direction of George Doyle embarked on

a plan to create employment opportunities for persons with developmental

disabilities in the area of St. Lawrence, Little St. Lawrence and Lawn.

Their intent was to show that persons with challenging needs could be

productive, contributing members of society. With the support of various groups

and organizations I am delighted to say that their dream has turned into a

reality.

Through forming their own company under the name of Island Rock Jewelry and

using raw materials donated by St. Lawrence Mineral Products these challenging

needs clients are producing beautiful handcrafted gemstone jewelry and souvenir

items.

Some of these items, Mr. Speaker, are being displayed today outside the

cafeteria in the West Block. The Member for Grand Bank district and I are both

supportive and proud of this initiative and we urge all members and the general

public to support this very worthwhile project.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

Oral Questions

MR. SPEAKER: The hon. the Leader of the Opposition.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Thank you, Mr. Speaker.

The Premier has spoken quite often about an open and a transparent and an

accountable government. An example of this is supposed to be Bill 49,

An Act To

Provide The Public With Access To Information And Protection Of Privacy. Mr.

Speaker, if this act is passed in its present form, it will enable this

government to be more secretive, less open, less accountable and less

transparent.

My question for the Premier is: How can you state that your government will

be more open and more transparent when

section 72.(1)(

k) of this particular bill

authorizes Cabinet to allow local bodies, such as councils, to conduct meetings

in secret?

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

Mr. Speaker, I know how valuable time is in Question Period, and maybe the

Speaker might like to inform and remind all of us that I have heard it ruled in

this House many times in the twelve-and-a-half years that I have been here, that

it is out of order to ask a question about a bill that is on the Order Paper,

because we will answer all those questions in debate on that bill, and will

gladly do so, and speak about all of the very fine new legislation that will

make our Freedom of Information Act the very finest in the country.

If he has some objections, there is a debate at second reading, there is a

committee stage, and there is a full debate that every single member of this

House can speak to if they have any objections to any of the dozens and dozens

of new, forward-thinking, open and accountable clauses that are in that piece of

legislation.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: I just want to remind the hon. members of the manner in

which we have dealt with questions that arise out of legislation that may be on

the Order Paper. We have researched this in other jurisdictions and the ruling

that was made recently on this, here in this House, was that unless the

Government House Leader informs the Chair that a piece of legislation will be

brought to the floor of the House, that the piece of legislation that is on the

Order Paper is to be debated on a particular day, then the Chair will allow

questions on some of the legislation that is before the House.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: A supplementary, the hon. the Leader of the Opposition.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Mr. Speaker, unlike the Premier, I have not been here for

some twelve years, I have only been here for one week, but I was aware of your

ruling which was made in March of last year. I have a copy of that for the

Premier.

MR. SPEAKER: Order, please!

I ask the hon. member to get to his question quickly; he is on a

supplementary.

MR. WILLIAMS: My first question has not been answered, Mr. Speaker, so I

will ask the Premier: How can you state that your government will be transparent

and open when

section 72.(1)(

k) of the bill authorizes Cabinet to allow local

bodies, such as councils, to conduct meetings in secret?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

To my knowledge, and I do not have the bill in front of me right now,

although it has gone through our full Cabinet and committee system, we are very

proud of it, Mr. Speaker. We are very proud of the fact that we are introducing

brand new leading edge, nation wide leading edge, legislation with respect to

freedom of information, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Two comments I would make, and maybe the Leader of the

Opposition can enlighten me as he did with respect to the ruling - and I always

appreciate him; I am always here to learn. I was a teacher in my career,

understanding that the main part about teaching is being willing to learn. You

have to be a receptive listener and learner, Mr. Speaker, always willing to

learn.

Two things: to my knowledge, the word secret is not in the legislation. Mr.

Speaker, it has always been a practice and maybe he would like - he is

confirming, I think, that it is not there, that it is his word, that it is not

in the legislation. It is very typical of what he did all last week, Mr.

Speaker, when he tried to use language that was not in the Auditor General's

report. The word secret, to my knowledge, is not in the legislation.

It has always been a practice, and I know he has participated in it himself

when he has been involved in public organizations that he has represented as a

member of the general public, and glad to do so as a volunteer, where it is

necessary from time to time for a group or organization to have some private

meetings so there can be a fuller discussion; because sometimes, Mr. Speaker,

they are discussing individuals, personalities, people's wages, things that

they have to make a full and frank discussion and decision about. Then, Mr.

Speaker, the act also says that the outcome of those private meetings - not

secret; to my knowledge that word is not there - the outcome of those private

meetings have to be disclosed in a public meeting.

Mr. Speaker, I would ask the Leader of the Opposition to clarify that secret

is his word, not the word of this government, not the word in the legislation.

MR. SPEAKER: Order, please!

I ask the hon. the Premier now to conclude his answer.

PREMIER GRIMES: Secondly, would he confirm that in his mind, because it

is his first question of the day, that is the most important and critical issue

on his mind and the minds of the Opposition today in this Province, Mr. Speaker?

MR. SPEAKER: Order, please!

PREMIER GRIMES: Because that is the question he asked.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: A supplementary, the hon. the Leader of the Opposition.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Thank you, Mr. Speaker.

The exact words in the legislation are, "...in the absence of the

public...", which mean in secret, code of silence, Mr. Speaker.

MR. SPEAKER: Order, please!

The hon. the member is on a supplementary. I ask him to get to his question

quickly.

MR. WILLIAMS: Mr. Speaker, in his leadership campaign, policy statement

number six, in January of this year, the Premier told the people of the Liberal

Party who placed him in office as Premier, and I quote him: The new Freedom of

Information -

MR. SPEAKER: Order, please!

I have to remind the hon. member that when questions are asked in this House,

we cannot have

preambles or read from documents, from telegrams and others. We

cannot quote that. So I ask the hon. member to get to his question quickly. He

is on a supplementary.

MR. WILLIAMS: Thank you, Mr. Speaker.

- should not be used as a vehicle to frustrate or prevent the quick

dissemination of public information.

MR. SPEAKER: Order, please!

The hon. member cannot quote from documents or telegrams or extracts from

documents when he is presenting questions in the House.

MR. WILLIAMS: Thank you, Mr. Speaker.

I would ask the Premier: If he is so interested in providing the public with

information, why does

section 23(1)(

e) of the bill prevent disclosure of

information about negotiations carried on by your government?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Thank you, Mr. Speaker.

Again, I do appreciate the acknowledgment of the Leader of the Opposition

that the word `secret' was his word and is not in the Freedom of Information

Act in Newfoundland and Labrador, not intended to be, never ever suggested that

it might be, and Mr. Speaker, the exact words are: ...in the absence of the

public unless another act expressly authorizes the local public body to hold

meetings in the absence of the public and so on.

So, Mr. Speaker, again to point out, the people of the Province should

understand that of all the issues confronting us in Newfoundland and Labrador

today, this issue is in the minds of the Leader of the Opposition and the

Opposition Party. The most important thing on the minds of Newfoundlanders and

Labradorians today is whether or not a town council can have a private meeting

before they resort and report the results of it to the public meeting. So I am

assuming there is something else that is going on in Newfoundland and Labrador

that might be a little more urgent today than that, which we are going to debate

here between now and Christmas, and we will come to amendments if we need them

to make it more acceptable to the Legislature, Mr. Speaker. I am sure that the

Leader of the Opposition would not suggest that every single negotiation -

MR. SPEAKER: Order, please!

I ask the hon. the Premier now to conclude his answer.

PREMIER GRIMES: Yes, Mr. Speaker.

I am sure that the Leader of the Opposition is not going to suggest that

every single negotiation that occurs between the government and any agency,

organization or business that it is dealing with, should be held, like these

meetings are, in front of the television cameras.

Mr. Speaker, if that is his position, I would be glad to have him spell it

out for the people of the Province.

MR. SPEAKER: Order, please! Order, please!

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

A supplementary, the hon. the Leader of the Opposition.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: The negotiations that are before the people of this

Province are very, very important to the people of Newfoundland and Labrador,

Premier. Isn't is a fact that

Section 23(1)(

c) of the act gives you and your

government virtual veto power to deny the public information about any

negotiations which your government carries on, including Voisey's Bay and

including the Lower Churchill?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Understanding, Mr. Speaker, again that the Leader of the

Opposition likes yes or no answers, the answer to that is clearly and obviously

no. There are no such restriction in this act.

Mr. Speaker, I know now that the Opposition finds it hard to acknowledge, and

they do not like to acknowledge, that this has been, since February 13, the most

open and accountable government that this Province has ever seen. Mr. Speaker,

has ever seen!

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Mr. Speaker, you can check the records in terms of

information that has been provided to this government. It has gone immediately

to the public and will continue to do so.

Mr. Speaker, our standard is this: When we are to enter into an arrangement

on behalf of the people of the Province, it will be for the betterment of the

people of Newfoundland and Labrador, and all of the details will be disclosed to

every single soul in the Province who has an interest in it. There is no

`secrecy' with this government. That is a word from the Leader of the

Opposition.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: A supplementary, the hon. the Leader of the Opposition.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: The Premier is obviously not familiar with the provisions

of the act, Mr. Speaker.

Section 23(1)(

c) of the Access to Information and Protection of Privacy Act

states that the Premier and his government -

MR. SPEAKER: Order, please!

Again, the member ought not to be quoting from documents. He is on a

supplementary. He should not require any

preamble. He should get to his question

immediately.

MR. WILLIAMS: Thank you, Mr. Speaker.

Mr. Premier, I would ask you: Given this year's increasing deficit, why

does

section 23(1)(

c) of this act give the government the absolute right to deny

to the public vital information which would enable them to determine the impact

on public services and programs in this Province? That is

section 23(1)(c),

Premier.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Mr. Speaker, it does not do that. This government has no

plan to do that. Mr. Speaker, I know they find that hard to understand, but the

whole notion on the modus operandi for this government is that, when there are

issues that are of importance to the people of Newfoundland and Labrador, they

are fully disclosed and fully debated.

I know the Opposition, Mr. Speaker, does not understand that, because when

the people that they used to support were in government - because I am not

allowed to say when they were in government, because there are none of them

there. There is not a soul over there, Mr. Speaker. They have one who is a

former premier that they have relegated to the far end of the bench, Mr.

Speaker, the very far end of the bench, because they do not want to be tied to

things that they used to do and used to support. So, in fact, we will be judged

proudly and gladly any day by our record which will be full, open disclosure and

accountability, the likes of which has not been seen by any government in this

Province before, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: A supplementary, the hon. the Leader of the Opposition.

MR. WILLIAMS: Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. WILLIAMS: My final question for the Premier is: Why are he and his

government using this very, very important piece of legislation to deny vital

information to the people of Newfoundland and Labrador? What are you trying to

hide?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

SOME HON. MEMBERS: Hear, hear!

PREMIER GRIMES: Mr. Speaker, let me point out again, what the Leader of

the Opposition is talking about is a bill that has been presented to this

Legislature for debate. What he is talking about is not the law. If they have

registered these objections and can substantiate in the debate that the

proposition and preposition, that he is putting forward today, has some

validity, we would even consider, as we always do, Mr. Speaker, appropriate

amendments during the committee stage.

If you have a concern, lets debate it during the debate. We are hiding

nothing. What we committed to, Mr. Speaker, when we established the review

committee and when the Minister of Justice put the group in place and sent them

around the Province and around the country, we committed to have the most

up-to-date, most modern, piece of freedom of information legislation, anywhere

in the country. Mr. Speaker, what's in our legislation reflects what is in the

legislation in Canada and in North America today. We will gladly hear about it

in the debate which will go on for the next couple of weeks.

MR. SPEAKER: Order, please!

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Trinity North.

SOME HON. MEMBERS: Hear, hear!

MR. ROSS WISEMAN: Mr. Speaker, my question this afternoon is for the

Minister of Health and Community Services.

Mr. Speaker, we have been making public statements about how this government

does not have a plan for health care. We have been making some comments about

how this government continues to ignore advice that they are getting from people

in the system. We continue to say that this government is reacting to Budget

deficits and not functioning with a plan.

This past weekend, Mr. Speaker, we had the executive director of the Health

Boards Association saying that this government does not have a strategic plan.

The executive director of the Health Boards Association was saying that there

are not operational plans, there are no operational standards. Mr. Speaker, the

executive director is saying that there are no operational benchmarks.

MR. SPEAKER: Order, please!

I ask the hon. member now to get to his question.

MR. ROSS WISEMAN: Thank you, Mr. Speaker.

What they are saying, Mr. Speaker, is that without those kinds of standards,

without those guidelines, without those plans, there are major inconsistencies

in the system as health boards are trying to implement their plans.

Mr. Speaker, let me ask the minister this: How can this government be out

spending $1.4 billion of this Province's money, $1.4 billion of taxpayers'

money - we have already heard her say it is 44 per cent of our budget - how can

we spend $1.4 billion of taxpayers' money without a plan? I ask the minister

if she would provide that answer.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MS BETTNEY: Mr. Speaker, I find the gentleman's question rather

perplexing because I know the Member for Trinity North was part of two of the

regional health forums that were conducted. I know that he participated as an

observer at the forum that was taking place in Clarenville, to the point where

he even spoke to me afterwards to compliment me on the process.

SOME HON. MEMBERS: Hear, hear!

MS BETTNEY: Let me say, as part of that whole process of our regional

forums, and again in the provincial forum which will take place over the next

two days, the whole purpose of those boards was to look at all of the different

elements that we need to have in place in order to have a strategic approach to

health care in this Province.

This is not news, Mr. Speaker. This is something that I prefaced our regional

forums with, saying that there are key elements of planning that need to be done

in this Province in order to have a strategic approach to health care, and I

have asked the people of the Province, through all of the stakeholders, over 400

people who have participated in these forums, to assist me in doing this.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Trinity North, a supplementary.

SOME HON. MEMBERS: Hear, hear!

MR. ROSS WISEMAN: Mr. Speaker, is the minister saying, one more time,

that she is ignoring what the health boards are saying? These are the people

whom she has appointed, these are the people on the front lines who are running

our health system. Is the minister saying, one more time, that she is going to

ignore what the Health Boards Association is saying, and is she saying that

there are plans, and is she saying that the Health Boards Association and the

members that they represent, the health boards in this Province, don't know

what they are talking about? Is the minister saying that there is a plan and

that the Health Boards Association is completely wrong and that they don't

know what they are talking about? Is that what she is saying?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MS BETTNEY: Mr. Speaker, again when the Member for Trinity North was at

the forum in Clarenville - and I believe he also attended the forum in Corner

Brook - he was aware and would have recognized along with everybody else

attending the forum, that every one of our health boards likewise participated

in these forums. Every one of our health boards, our chairs, our CEOs, and

numerous other members of our health boards, took

part in these regional forums

with the express purpose of trying to look at the key issues that we have and to

give us our best advise on the six major planning areas.

Mr. Speaker, we published a document that we circulated and made available on

the Internet, made available all across this Province as people wanted it, that

identified six key planning areas that we were asking people to give us their

advise so that we can in fact form a strategic health plan.

So I say again, Mr. Speaker, this is something we are actively working on.

That is the whole purpose of the forums, that is why they are so valuable, and I

am really looking forward to the provincial culmination of it tomorrow.

MR. SPEAKER: Order, please!

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Trinity North, final supplementary.

SOME HON. MEMBERS: Hear, hear!

MR. ROSS WISEMAN: Mr. Speaker, I can understand why the minister is not

being very direct, because there are no standards, there are no guidelines.

SOME HON. MEMBERS: Hear, hear!

MR. ROSS WISEMAN: Mr. Speaker, this government has spent and is spending

$1.4 billion of taxpayers' money without a plan.

I ask, Mr. Speaker: Can the minister give the people of this Province some

comfort in saying that at least by next year there will be a plan before we go

out and spend another $1.4 billion? Can the minister give us that assurance?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MS BETTNEY: Mr. Speaker, I do not know how much more direct I can be in

this regard.

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The hon. the Minister of Health and Community Services.

MS BETTNEY: Mr. Speaker, I really do not know how much more direct I can

be in this regard. The department has plans, the boards have plans, and we, as a

government, initiated a Province-wide consultation which members opposite have

taken different positions on. Because, as I say, the Member for Trinity North,

in speaking to the media on occasion, has indicated that the whole regional

forum thing was useless and that it was not something we should be doing; yet,

in speaking to me and to the facilitators of the sessions, has indicated that

they thought it was productive.

That aside, the purpose of these forums was to look at our six major planning

areas and to be able to devise from that a strategic health plan. That is our

intention. We are doing the consultation that is necessary to deliver on that.

It is just the right thing to do, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for St. John's West.

SOME HON. MEMBERS: Hear, hear!

SOME HON. MEMBERS: Oh, oh!

MR. SPEAKER: Order, please!

The hon. the Member for St. John's West.

MS S. OSBORNE: Thank you, Mr. Speaker.

My questions are, as well, for the Minister of Health and Community Services.

Since the end of September, and that is almost two months, a particular

patient has been occupying a bed in an intensive care unit in St. John's,

waiting to access the home care he needs to enable him to go home. Because there

is a freeze on home care, he occupies an expensive ICU bed, even though he is

not in need of such a high level of care. I would like to ask the minister: When

is this government going to stop wasting taxpayers' money and start managing

the Province's health care system responsibly, cost-effectively and

efficiently?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MS BETTNEY: Mr. Speaker, home support in this Province costs over $50

million today. We are at a stage with home support where all of our boards, in

every region of the Province, have to have wait lists in order to be able to try

and contain the projected over-expenditure above and beyond that budget.

This is a very, very difficult area of health care for everyone to deal with.

We know that there are particular, very complex -

[Technical difficulties.]

MR. SPEAKER: I guess what we should probably do is recess for a few

minutes until we get this problem corrected. Is that in agreement?

SOME HON. MEMBERS: Yes.

MR. SPEAKER: We will now take a short recess.

Recess

MR. SPEAKER: Order, please!

When the House recessed, the hon. the Minister of Health and Community

Services, I believe, was responding to a question from the hon. the Member for

St. John's West.

The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MS BETTNEY: Mr. Speaker, I believe that I had begun to explain that, of

course, the home support area of our health care system is one of the major cost

drivers that we have in health care, and even with the fact that we have $50

million in the home support budget this year, all of our regions are having to

have wait lists in place for all of their services.

Yes, we know there are complex cases in many cases that are within the

institutions, the acute care setting, that are awaiting home support services,

and we have asked the boards to work very closely with the acute care boards,

with the institutional boards, to try and resolve these issues. However, there

remains a very difficult financial problem with all of this, when you look at

the fact that the boards are projecting an additional $5 million

over-expenditure in this area, and they are trying to make every effort to live

within this budget.

MR. SPEAKER: Order, please!

I ask the hon. the minister now to conclude her answer.

MS BETTNEY: I realize, Mr. Speaker, that the needs of the individual here

are paramount and I am certain that our officials, along with the boards, will

attempt to do everything possible to resolve this.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: A final supplementary, the hon. the Member for St. John's

West.

SOME HON. MEMBERS: Hear, hear!

MS S. OSBORNE: Thank you, Mr. Speaker.

We are talking about budgets here. I would like to say to the minister: The

cost of this patient's home care has been projected to cost about $30,000 per

year. The cost of his ICU bed is in excess of $500,000 a year. Why is the

minister jeopardizing vital health services when there is clear evidence that

government's poor planning is causing gross waste in our health system?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Health and Community Services.

SOME HON. MEMBERS: Hear, hear!

MS BETTNEY: Mr. Speaker, this, of course, is the responsibility of the

Health and Community Services Board. They have this challenge of trying to

deliver home support, along with a majority of other programs and services in

this region. They are working very closely, I understand from my officials, with

the St. John's Health Care Corporation in this area, to try and find solutions

to some of these complex cases. In many cases they require special kinds of

services that are not easily available or provided through home support. Each

one is individual and I am sure they will do their best to try and resolve them

as quickly as possible.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Member for Signal Hill-Quidi Vidi.

SOME HON. MEMBERS: Hear, hear!

MR. HARRIS: Mr. Speaker, my question is for the Premier. It involves the

sale of the Marystown Shipyard. Recognizing that negotiations are ongoing,

Miguel Pazos, President of Friede Goldman Newfoundland Limited, was quoted this

past weekend as saying that a sale of the Marystown Shipyard was contingent upon

the White Rose project going ahead. Will the Premier confirm that is the case,

Mr. Speaker?

MR. SPEAKER: The hon. the Minister of Trade, Industry and Rural

Development.

SOME HON. MEMBERS: Hear, hear!

MR. TULK: Mr. Speaker, my answer to the hon. gentleman from Signal

Hill-Quidi Vidi is the same as I made to the Opposition House Leader. There are

negotiations ongoing to hopefully open the Marystown Shipyard and put people

back to work there. I think it would be somewhat premature at this time, and I

think it would be somewhat harmful to the process of negotiations, to say any

particular company were doing this.

We are meeting with the unions, the Chambers of Commerce, and the town

council. We are not being secretive about it, but we are carrying on

negotiations in a way that they are normally carried on. Hopefully, they will

benefit not only the people who will work in Marystown when we are finished, but

contrary to what the Opposition House Leader asked the other day, I would hope

that in the process we are able to take care of some of the local unsecured

creditors there as well.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: A supplementary, the hon. the Member for Signal Hill-Quidi

Vidi.

MR. HARRIS: Thank you, Mr. Speaker.

The people of Marystown are also hearing that the proponent of the White Rose

project is contemplating a one-year delay in that project. Is this true, I ask

the Premier, and how long will the people of Marystown have to wait for some

response and jobs in the shipyard that this Province has put so much money into?

MR. SPEAKER: The hon. the Minister of Industry, Trade and Rural

Development.

SOME HON. MEMBERS: Hear, hear!

MR. TULK: Mr. Speaker, let me just say to the hon. gentleman that we are

carrying on negotiations with a group of people. In regard to the Husky project,

it is our understanding that at this point in time - and the Minister of Mines

and Energy would be in a better position than I would, maybe, but - the benefits

plans is being prepared or about to be submitted to the minister to have a look

at. There are thirty days which he has to respond to it. Then the company has to

give project sanction after that period of time, after the minister....

I say to him that it serves no useful purpose, as much as he might like to

score some political points on this, it serves no useful purpose for him to

stand up today and try to instill fear and kill the hope that the people of

Marystown might have.

SOME HON. MEMBERS: Hear, hear!

MR. TULK: It is doom and gloom, I say to him. Think positive! Be

positive, as the people of Marystown are positive, and stand up and try to get a

solution to the problem rather than score political points.

MR. SPEAKER: Order, please!

Question Period has ended.

Presenting Reports by Standing and Special Committees

MR. SPEAKER: The hon. the Minister of Justice and Attorney General.

MR. PARSONS: Mr. Speaker, I rise today to table the Annual Report of the

Office of the High Sheriff of Newfoundland for the period April 01, 2000 to

March 31, 2001.

Answers to Questions for Which Notice has been Given

MR. SPEAKER: The hon. the Minister of Finance.

SOME HON. MEMBERS: Hear, hear!

MS J.M. AYLWARD: Thank you, Mr. Speaker.

On Thursday, the member opposite asked a question about the Province's real

GDP forecast for next year. For the record, and for the people of the Province's

benefit, I would like to explain what real GDP measures and how it is

calculated. Real GDP, Mr. Speaker, is a measure of quantity. It holds prices

constant at 1997 levels and is affected only by changes in production volume.

Real GDP indicates changes in the level of economic activity and it is driven by

many things, including production gains, not price, in oil and gas, newsprint,

mining and other industries.

Mr. Speaker, the member opposite referred to a report by the International

Monetary Fund in his question. The International Monetary Fund is an

international organization which promotes international monetary co-operation

through various means including temporary financial assistance to Third World

countries. The International Monetary Fund completes annual economic forecasts

but, Mr. Speaker, it is not a credit rating agency and its forecasts are not

generally comprehensive enough to use at the Canadian or the provincial level.

Both the federal government and the Province rely on domestic as well as the

U.S. economic forecasting agencies such as the Conference Board of Canada and

major chartered banks.

The IMF report referred to by the member opposite acknowledges that the

Canadian economy is slowing, and on that point we all agree. In fact, Mr.

Speaker, our GDP forecast for the next year takes into account a number of

factors including a slowing North American economy. Other factors which are used

when forecasting GDP growth include consumer spending -

MR. SULLIVAN: A point of order, Mr. Speaker.

MR. SPEAKER: Order, please!

MS J.M. AYLWARD: - employment rates, investment spending, construction -

MR. SPEAKER: Order, please!

On a point of order, the hon. the Member for Ferryland.

MR. SULLIVAN: Thank you, Mr. Speaker.

I rise on a point of order because this is an abuse of the House. These

questions were never asked by me at all. I ask the minister to refer to Hansard

to find out what I asked. She indicated today that she would table the

information in this House, and the questions referred to were never asked by

anyone here in the Opposition, Mr. Speaker. It is an abuse of time in this House

under Answers to Questions for which Notice has been Given.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

There is no point of order.

The hon. the Minister of Finance.

MS J.M. AYLWARD: Thank you, Mr. Speaker.

Again, I think it is important to have the answers for the people of the

Province. Mr. Speaker, I think the questions asked were of a very significant

nature about GDP. It is not something that is in the normal vocabulary of

everyone, but I think it is important to respond in a very clear way so I will

continue. Thank you, Mr. Speaker.

As I reported in my mid-year economic statement just last week, the private

sector forecasters predict real GDP growth in Newfoundland and Labrador to be at

4.5 per cent for next year. This is consistent with our view and will mark the

fourth year of strong growth since 1997. Growth in 2002 will be concentrated in

the oil industry, Mr. Speaker. The combined production from Hibernia and Terra

Nova, should they increase, we expect White Rose construction to begin pending

government approval and offshore exploration should increase.

Mr. Speaker, the member opposite questioned the impact of lower oil prices on

the Province's revenue stream. At budget time, the forecast for oil prices was

at $23 U.S. a barrel. From April to October, the average price was approximately

$27 U.S. per barrel. Without a doubt, the price of oil per barrel has

fluctuated; however, we expect the price per barrel to average about $23 U.S.

for this year, consistent with our forecast.

Thank you very much, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: Order, please!

Petitions

MR. SPEAKER: The hon. the Member for St. John's South.

SOME HON. MEMBERS: Hear, hear!

MR. T. OSBORNE: Thank you, Mr. Speaker.

I am proud to present another petition today in the House of Assembly on the

bulk export of water from this Province, or against the bulk export of water

from the Province. The prayer of the petition reads:

We, the residents of Newfoundland and Labrador, wish to petition the House of

Assembly, with copies to the House of Commons, to oppose the bulk export of

water from this Province.

Every major resource, such as Churchill Falls -

MR. BARRETT: (Inaudible).

MR. T. OSBORNE: I say to the Member for Bellevue, this is an important

petition signed by the people of this Province and you should listen.

Mr. Speaker, every major resource, such as Churchill Falls, that has been

developed in Newfoundland and Labrador, has resulted in the majority of benefits

going outside the Province. It is time that we demand our full and fair share.

With water being one of the few resources remaining where we have the

opportunity to deliver maximum benefit through jobs, spinoff from secondary

processing, as well as royalties, we demand that any water sold must be bottled

and processed in this Province.

Mr. Speaker, we have presented a number of petitions on this very important

issue. The people of this Province have spoken very loudly and very clearly on

this issue, I say to the Premier and to the members opposite. This is an

important issue. This is a resource that this Province has the ability to

maximize full benefits for the people of the Province, the people who own the

resource. We have the opportunity here, on this resource, to ensure that the

people of the Province get the full benefit in terms of jobs, spinoff royalties,

and everything else that goes along with this resource. We should not, in any

way, shape or form, entertain bulk export of water from this Province. We have

done that on other resources throughout the years. We have exported other

resources in bulk, to see the major benefits go to others from outside the

Province without getting the major resources for this Province. That formula has

not worked over decades and decades of trying it. This time, Mr. Speaker, we

should get it right.

Thank you.

SOME HON. MEMBERS: Hear, hear!

Orders of the Day

MR. SPEAKER: The hon. the Government House Leader.

MR. LUSH: Mr. Speaker, Motion 2.

Motion, the hon. the Minister of Finance and President of Treasury Board to

introduce a bill, "An Act To Amend The Taxation Of Utilities And Cable

Television Companies Act," carried.(Bill 52).

On motion, Bill 52 read a first time, ordered read a second time on tomorrow.

MR. SPEAKER: The hon. the Government House Leader.

MR. LUSH: Motion 8, Mr. Speaker.

On motion, the hon. the Minister of Mines and Energy to introduce a bill,

"An Act To Amend The Petroleum And Natural Gas Act," carried.(Bill 55)

On Motion, Bill 55 read a first time, ordered read a second time on tomorrow.

MR. SPEAKER: The hon. the Government House Leader.

MR. LUSH: Order 25, Mr. Speaker, the adjourned debate on Bill 36. I

believe it was the Member for Signal Hill-Quidi Vidi who adjourned the debate.

MR. SPEAKER: The hon. the Member for Signal Hill-Quidi Vidi.

MR. HARRIS: Thank you, Mr. Speaker.

I would like to take this opportunity to say a few words at second reading on

Bill 36 which is,

An Act To Amend The Law To Consider Same Sex Cohabiting

Partners In The Same Manner As Opposite Sex Cohabiting Partners.

Mr. Speaker, this bill was debated on Thursday when the minister spoke, and

the Member for Lewisporte. The Member for Lewisporte, I think, pointed out that

what the government was actually doing here was recognizing its obligations as

had been outlined by the Supreme Court of Canada to the Province of Ontario in

requiring that province, and by implication every province and jurisdiction, to

ensure that the laws of the Province did not discriminate against same sex

partners with respect to benefits and other issues.

I see, Mr. Speaker, that the minister has presented a piece of legislation. I

think it has not had the kind of detailed study that perhaps it should have or

may well have, although I hope it does get passed. It is one of those pieces of

legislation that refers to a number of other pieces of legislation, including

the Powers of Attorney Act, interesting the Conflict of Interest Act. What it

does here is indicate that the conflict of interest legislation that applies to

Members of the House of Assembly, that would apply in the case of cohabiting

partners of opposite sex, would apply equally to same sex partners. That is

clearly something that should be the law.

It is interesting, I suppose, and ironic in a way, that this law in fact

places obligations on people or potential prohibitions on people as well as

provides benefits to people. The contrast would be something such as the

Conflict of Interest Act where I think it would be quite appropriate to

recognize that a conflict of interest might just as easily exist with same sex

cohabiting partners as with an opposite sex cohabiting couple. I think it is

right and appropriate that it does.

I think, to be fair, Mr. Speaker, the advocacy groups for the community who

are most interested in this have commented in presentations both to the minister

and to other members of the House that they want to be treated, and same sex

couples, to be treated equally with non-same sex couples with opposite sex

cohabiting partners, and it is appropriate that there be responsibilities as

well as benefits such as we see in other pieces of legislation such as the

pensions legislations, the Memorial University Pensions Act, the Government

Money Purchase Pension Plan Act, the Pension Benefits Act, the Public Service

Pensions Act, the Teachers' Pensions Act, the Workers' Compensation Act, the

Uniformed Services Pensions Act, and the Municipalities Act, on a conflict of

interest as well. Just as we saw the changes to the Family Law Act, these

provided for support obligations for cohabiting couples and made the same

obligations for support for cohabiting couples as existed for opposite sex

cohabiting couples.

Also, it went further than that, Mr. Speaker, and permitted same sex couples

to adopt the provisions of what used to be called the Matrimonial Property Act.

It is now part of the Family Law Act in relation to property rights,

co-ownership of assets, and provision for what happens to assets when the

couple, or partners, separate. Provision can now be made to that extent.

There is one area, though, in discussions with the minister and his staff,

that we had in discussion of this bill, was something that I want to speak about

because it is something I believe a lot of people in this Province are

misinformed about. Many people in this Province believe that if a couple live

together for a specified period of time, depending on the person you are talking

to, or depending on what their source of information is - and whatever source it

is, it is incorrect - but depending on their source of information, many believe

that if a man and a woman live together for a specified period of time, be it

one year, two years, three years or five years, that gives them property rights

with respect to the house they are living in or the property of the other

spouse. That is a widespread belief in this Province, Mr. Speaker.

I say to the minister: I think the minister knows that, as someone who has

practiced law in the Province and who has encountered this belief. Certainly, it

is something that I have heard many, many times. Even some lawyers who have not

looked at the act but may have received their legal education in other Provinces

may be of that belief as well. I say that not to be offensive to lawyers but

just to suggest that, because other provinces have legislation of that nature,

particularly the Province of Quebec and some others, many people in this

Province believe that to be the law.

In fact, Mr. Speaker, I believe it should be the law. I believe that we

should have legislation that recognizes that when a couple are cohabiting in a

relationship that is an enduring relationship of a specified number of years - I

am not proposing a one-year, two-year or three-year rule at the moment, but I do

think that there are many, many situations where young couples go into the

purchase or the building of a house together; they share the cost. One family

member or one family may have provided the land. Both couples, together, put

their savings together, put their cash into the house, and that sort of thing.

Only with respect to the complex law of constructive trusts do they have an

interest in that property. I say complex because it is what quite often is

factually and legally complex, and quite often the source of, as the Member for

St. John's East points out, constructive trust litigations can take place

where couples have to spend an inordinate amount of money to sort out their

respective rights if the relationship does not work out.

I suggest to the minister that this may be an opportunity, although I realize

we are not dealing with the family law aspect of this right now, but this may be

an appropriate time, whether it be this fall or next spring, to consider

amending the Family Law Act to provide for the circumstances where a couple who

cohabit for a specified period of time, do enjoy the same rights with respect to

property, particularly in a matrimonial home, so-called under the Family Law

Act, but I assume we would have to rename what that home would be called if it

was to apply both to cohabiting couples as well as to those who are actually

married.

I think the time has come for us to revisit that law, to see whether or not

we should adopt the same law as the Province of Quebec. I believe we should, Mr.

Speaker, because we do have circumstances that go on in some cases for many,

many years. Within the situation of a relationship, it is quite often difficult,

after a couple of years have passed, for one partner - or sometimes the

relationship may not be as rosy as people have thought going into it. There may

be a situation where people cannot change that, where you cannot go to your

partner and say: I want to put my name on the house now, after we have lived

together for so many years, one year, two years, three years, four years. All of

the sudden one member of the couple is starting to feel a bit insecure about

their financial position or their relationship, or they are afraid they might

get kicked out, for example, where the other spouse owns the house and they

might be left with nothing. It can lead to situations where there can be abusive

relationships that endure because of insecurities, in the same way that they

happened before the Matrimonial Property Act gave equal rights to both partners

in the matrimonial home.

That reform was brought in to recognize property rights, yes, and to

recognize the equality of a relationship, yes, but also to ensure that both

partners in a relationship had a stake in the home that they together maintained

or contributed to in one way or another. You can contribute to a property and a

home by maintaining it, by cleaning it, by assisting in its maintenance. You can

go through the whole legalities of the constructive trust that people have

talked about, or you can have a statutory recognition of the relationship and

what flows with that. In this case, I would submit, a home that is the

equivalent of a matrimonial home for a non-married but cohabiting couple in a

significant relationship or in an enduring relationship.

I think that may, in fact, come as a shock to some people, Madam Speaker, if

that were to be introduced, because it would mean that it does change the

property relationships of longstanding couples, but I would think the time has

come for our government to recognize that there is an expectation that people

have in this Province, to recognize that there is some confusion about that, and

to recognize, I think, that people believe it should be the law.

I think that the minister should take it under advisement, and I would submit

that a time has come to change that law as well, so that cohabiting couples have

access to property rights over the home which becomes their home, in a real

sense, in an enduring relationship, whether or not they have gone through a form

of marriage. That still seems to be the case.

I have not looked at each and every clause of this legislation. This kind of

legislation tends to be quite complex because you are taking existing

legislation and changing certain words, taking some words out and putting other

words in. I know that the intent of the drafters of the legislation is that it

provide for the treatment of same sex cohabiting partners in the same manner as

opposite sex cohabiting partners. I am assuming that it does that with respect

to each and every piece of the legislation that it affects.

I want to say, I go on record, Mr. Speaker, as supporting this legislation,

as urging this legislation upon the minister and his government, just as we, for

the last twelve or fourteen years, urged upon the government the passage of

amendments to the Human Rights Code that would include sexual orientation as a

prohibited ground of discrimination.

I know for many years, Mr. Speaker, under former administrations that were

elected since 1989, the government refused to do that. The current Premier,

numerous times, indicated that he did not think the government needed to do that

or should do. We believed that it had to be done. The previous administration on

that side passed legislation amending the Human Rights Code with the full

support of our party, and at the urging of our party, to include sexual

orientation as a prohibited ground of discrimination. Mr. Speaker, this

legislation is actually the outcome of a whole program of challenges by the

group seeking equality rights for gays and lesbians, same sex couples. This

legislation is part of the outcome of a number of years of challenging the law,

and finally getting the Supreme Court of Canada to pass a law requiring that

this type of legislation be passed.

So it is legislation that we support, Mr. Speaker, and I would urge the

minister to proceed with its implementation. Hopefully, we have done it all

right in terms of the detail, but that is something we can discuss at third

reading. I would urge the minister to also consider another step with respect to

cohabiting couples, whether they are same sex or opposite sex, that cohabiting

couple ought to obtain an interest, similar to that obtained by married couples,

in the matrimonial home. I think it is something whose time has come.

Thank you, Mr. Speaker.

MR. SPEAKER (Mercer): If the minister speaks now, he does close debate.

The hon. the Minister of Justice and Attorney General.

SOME HON. MEMBERS: Hear, hear!

MR. PARSONS: Thank you, Mr. Speaker.

I appreciate the comments of the Member for Lewisporte, the justice critic,

as well as the comments of the Member for Signal Hill-Quidi Vidi.

The government is, of course, and will continue to be, open to receiving

input and suggestions and submissions from interested parties as to what in the

future we may do or where we ought to go in regards to same sex legislation.

However, I feel government has certainly made a major attempt and effort in the

last two sittings of this Legislature to deal with these rights, particularly

the amendments to the Family Law Act in the Spring sitting and now, in this

particular session right here, particularly the rights concerning the pension

benefits and issues. It is obviously an evolving area of the law, but I think it

is a positive proactive step and, in compliance with the Supreme Court of Canada

ruling, it brings us in line with the Mv.H ruling. That is certainly a very

positive move.

I look forward to any particular comments that members opposite might have in

committee stage but it appears that all parties are supportive of this piece of

legislation. Therefore, I move closing of debate on second reading.

SOME HON. MEMBERS: Hear, hear!

On Motion, a Bill, "

An Act to Amend The Law to Consider Same Sex

Cohabiting Partners In the Same Manner As Opposite Sex Cohabiting Partners"

read a second time, ordered referred to a Committee of the Whole House on

tomorrow. (Bill 36)

MR. SPEAKER: The hon. the Government House Leader.

MR. LUSH: Order 16, Mr. Speaker, second reading of Bill 31,

An Act To

Repeal The Economic Advisory Council Act.

Motion, second reading of a bill, "An Act To Repeal The Economic

Advisory Council Act". (Bill 31)

MR. SPEAKER: The hon. the Minister of Finance and Treasury Board.

SOME HON. MEMBERS: Hear, hear!

MS J.M. AYLWARD: Thank you, Mr. Speaker.

I rise today to address Bill 31,

An Act To Repeal The Economic Advisory

Council Act, often referred to as ACE. As members of the House of Assembly will

recall, the Advisory Council on the Economy was replaced in 1997 by a new body

called the Advisory Council on the Economy and Technology. This combined both

the Council of Science as well as Council of Technology and really it has a much

broader mandate than the previous board of ACE.

This new board commenced operation in 1997 and it has already undertaken

several substantial pieces of work, including advise on the economy,

particularly renewing the EDGE program and also on taxation issues many of which

have been acted on already in this House of Assembly, Mr. Speaker. The Chair of

the Advisory Council on the Economy and Technology is Mr. Peter Woodward of

Happy Valley, Goose Bay, and he is joined with a number of other prestigious

Newfoundlanders and Labradorians giving advise to government.

Mr. Speaker, since the elimination of ACE in 1997, the staff were transferred

to the Executive Council and work is being undertaken to formally wind up the

council. In December of 2000, approval was provided by the Lieutenant-Governor

in Council to ratify the transfer of the assets, and the final financial

statements for the Advisory Council on the Economy were completed last year.

While the Advisory Council on the Economy had its own staff, right now, Mr.

Speaker, government is providing direct support to this new group through

Executive Council, and they are able to draw upon the specific resources of

Executive Council and government, as well as individual departments, on the

various projects which they have undertaken. Mr. Speaker, the Advisory Council

on the Economy was established by legislation in this House of Assembly, and

that allowed this Advisory Council on the Economy to control its assets, the

bank accounts and so on

Mr. Speaker, this bill is really being put forth at the recommendation of the

Auditor General, and I understand how everyone has ultimate respect for the

Auditor General and her recommendations in this hon. House.

It is with that, that I ask my colleagues today to support this bill,

inasmuch as what it does is windup the old Advisory Council on the Economy and

allows the other Advisory Council on the Economy and Technology to carry on its

mandate.

Mr. Speaker, I would happy to answer any questions, but this is clearly in

keeping with the recommendation of the Auditor General who wrote government July

of this year advising that the Economic Advisory Council Act should be repealed

in the House of Assembly as soon as possible so that it is able to go off the

books, windup the accounts, and put everything in order.

Thank you very much, Mr. Speaker.

MR. SPEAKER: The hon. the Member for Ferryland.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Thank you, Mr. Speaker.

I do not think the minister intended that the Auditor General recommended and

so on, not having an Advisory Council on the Economy. I think the intent was,

because there is an Advisory Council on the Economy and Technology that we

should not have a duplication or we should not have a second one. I think that

would be the intent, because I think it is important for this government to have

some advise on economic matters. In fact, I think you need it, to be honest with

you. Yes, I think they need advise on economic matters, when you have a Premier

who goes on the public airwaves on October 29 and tells us that the Newfoundland

economy should not be adversely affected by terrorist attacks.

AN HON. MEMBER: Who said that?

MR. SULLIVAN: The Premier. It says: Grimes says, he doesn't think the

downturn that is predicted elsewhere will occur here, and we have the minister

on public airwaves telling us that it is going to have an effect. That is why

there is the poor mouth on our budget and we are not going to meet expectations.

How can you have the Minister of Finance saying one thing and the Premier of

our Province publicly saying something different? How does that help consumer

confidence and encourage spending in our economy today, to be able to generate

revenues in our Province?

The minister tries to say we said the sky is falling. Mr. Speaker, we have

never said the sky is falling, and I would like to clarify that for the minister

while we are on this matter. The minister said that we are saying the sky is

falling. I said, if a possible $400 million deficit next year means the sky is

falling, the sky is falling, because that is what we have. If the minister has

any doubt about that, on November 21 with Jim Brown, the minister was asked this

question - the announcer, Mr. Brown said: I just cannot help looking at these

numbers again and think that the $400 million figure Loyola Sullivan talked

about is not only possible, it is likely. Do you know what the minister said?

Well, it is, certainly. She agreed with me.

MR. TULK: Who talked about it?

MR. SULLIVAN: The minister agreed, I say to the Deputy Premier, who is

enquiring.

MR. TULK: It was the Member for Ferryland, not (inaudible).

MR. SULLIVAN: I am quoting was is said here. The announcer indicated and

made reference to me on suggesting a $400 million figure next year, and the

Minister of Finance said: Well, it is, certainly. That is what she said. She

agreed with me that it is possible. Here in print, I say to the minister. I will

give her a copy if she does not already have one.

Now, the minister did not make reference to what the assets or what the

liabilities were. This particular act here indicated that we "...wind up

the Economic Advisory Council and vest its assets in the Crown." Clause 2

of the bill, "Notwithstanding subsection 16(4) of the Economic Advisory

Council Act, title to all of the property and assets of the council, and the

liabilities of the council, are vested in the Crown."

I think, in winding up, it is appropriate the minister should tell this House

exactly what the assets are and what the liabilities are and what is involved

here, if we are going to wind up an Advisory Council on the Economy. Now, if we

broaden the scope of a committee and took in technology in other areas, it

should not lessen in importance the value that an economic council serves. In

fact, under this particular bill we are seeing certain responsibilities that

this council had, and I do not know whether the minister does not think she

needs any advice or whether the advice she received is not very good, because

her predictions are not very accurate.

We said, not just last week, we said when the Budget was brought down, that

this is not an accurate reflection of the revenues and expenditures of our

Province, and we were proven right with time. We were proven right. Now we are

seeing that the minister stood and delivered a financial statement of $80

million deficit, and we are saying that figure is not right. That figure is not

right, we are saying. It is not a true reflection.

She tells us, by telling that, we are going to affect consumer spending.

Look, I think the people of this Province want to know the truth, whether it is

good news or whether it is bad news. That is what I am indicating. There is

nothing going to affect consumer spending and confidence in our economy than the

actions of the government of the day. That is what dictates consumer spending

and confidence in our economy.

While we are on that topic, the minister said we are not going to move with

the third year of tax cuts in January, 2002, because we cannot afford to do it.

I say that we cannot afford not to. In fact, in the United States, and I will

use that and look at the spinoff effects, on three previous cases in history in

1920. In 1920, the Harding, Coolidge government introduced one of the biggest

tax cuts in history that resulted in the largest revenues coming in after taxes

when people said, we will take less revenues.

John F. Kennedy, in1963, introduced a series of tax cuts and a naysayer said:

Tax cuts are going to help out the rich. We are going to help the rich. Why give

a break to the rich?

History showed that more tax revenue was taken in than ever before.

When Ronald Regan, in the 1980s, did the same thing, we saw collectively

unprecedented growth in the economy, more tax revenues from income tax than

before tax cuts. Even Gore has indicated that George Bush tax cuts are going to

help out the rich. In fact, after tax cuts in U.S. history, 1 per cent of the

richest people paid a higher per cent of the taxes and more taxes than they did

after the tax cuts. What does it do? When you know you are not burdened with

diminishing returns on higher levels, it encourages you to invest, to spend, to

make more money, to pay more taxes, to grow the economy. We have to remove

barriers to economic growth, and the biggest barrier to economic growth is

taxation that is not conducive to growing the economy. We have to stop that

small-mind mentality of short-term at the expense of long-term gain. That is the

type of thing we have to do. We have to weather the storm in tough times, not

pull into port. That is what we have done. This government has pulled into port

and gone to the nearest dry dock and pulled up the boat in a tough storm,

instead of weathering the storm and fighting it head on. That is what you have

to do. When you stop fishing, production stops when you come into port. If you

can weather the storm in tough times, we will ride the waves a helluva lot

easier and be more prosperous in downturn.

Now, we find that some of the functions of the Advisory Council on the

Economy respond to requests from the Lieutenant-Governor in Council, of Cabinet,

for commentary, evaluation, advice on subjects as chosen by the

Lieutenant-Governor in Council. It said: Identify major economic issues which

the Province must address.

I do not know who the minister is now taking advice from. I do not know. I

can tell you one thing: it is not from the Board of Trade, when I saw the

release that was released on November 21. Her advice is not coming from the

Board of Trade, because they were on the same wavelength that we have been

stating here. One reference here by the Board of Trade president who said, he

has expressed concern for some time on the fiscal condition of the Province. He

said, the apple has been polished too much, for too long. As a result, people

believe the Province's financial condition is a lot better than it is.

I said the same things to that very same minister on the health care system

year after year, and they denied there was a problem until they needed

extraordinary measures and the Premier of the day, Premier Tobin, went to Ottawa

with cap in hand, and said, we have a crisis in health care in our Province. I

said, whoop-de-do! He finally knows that we have a crisis in health care in our

Province now, and finally admits it when he wants something to fix it.

Denial, denial, denial is the approach that is going on in there. We have

seen it today. Anyone who read the newspaper Saturday, executive director of the

health boards, the hospital boards in this Province indicated this government

does not have a plan. The Province does not have a plan to deal with health

care; $1.4 billion in expenditures, a growing cost, and they do not have a plan,

I have indicated. Can you imagine? They have no plan on how we want to bring

this Province forward.

AN HON. MEMBER: Tell us about your plan.

MR. SULLIVAN: Don't you worry about our plan. You ask the Premier of

the Province to call an election and he will get a plan so fast it will knock

him flat down on his back, I tell you.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: You tell him to call it and you will see a plan.

Can you imagine? That Premier sat in this House as a part of government since

1989 and he has sat in a Cabinet which made decisions over the downturn of our

economy. For the first several years, we managed decline. We did not try to

induce economic growth, we managed decline. Then we came to a new era in 1996,

and what did we do? We borrowed on our children's future for five years. That

was the plan. That is the plan that we have followed for the last five years.

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: Manage decline and borrow on your future. No wonder we are

in the problem we are today. No wonder we are in the problem. No wonder the

minister in this House cannot stand up and answer a question when I asked a

simple, straightforward question: Your projection of 4.5 per cent on economic

growth, was that made before or after the IMF indicated that Canada's growth

is going to be 0.8 per cent next year, not 2.7 per cent, as earlier projected?

The minister did not answer. Whether she did not want to answer, she did not

want to admit, she had given us a statement that is not realistic, or she did

not know the answer. One of two. I do not know what other reasons there could

be.

I asked another simple question next, in which she stood today and answered

the questions, not the questions I asked at all, completely unrelated to what I

asked. The minister said in her statement, and we all have a copy of her

statement here, and we have a copy of this review, a copy of the Economic

Review, and this indicates that oil production next year will increase from 53

million barrels to 63 million barrels of oil. She said that growth is going to

be concentrated next year in oil. That is what she said.

Last year, it tells us, consumer spending and so on, growth in retails,

accounted for over half the growth in GDP, but next year she is saying it is

going to be in oil. So, I asked her: Does that mean that consumer growth,

spending and so on, is going to be down if it is going to be concentrated in

oil?. She could not answer, or did not answer, because she wanted to avoid it.

I asked her last Thursday: What price per barrel of oil did they build into

projections for next year? She did not answer. She did not answer it last

Thursday. On Friday we heard nothing. She got up and answered the questions

today in a statement. She said: I will table it. I will table the review at each

price. She said last Thursday: I will table the projections at each price level.

I do not have that, and it has not been tabled today. I am looking forward to

that. I would like to have a copy. I enjoy reading about economic matters, and

where we are, because it is a concern. We need to know what we are basing

projections on. We cannot go on a whim and a prayer, throw out a budget that

gets you by a year and gets you in trouble at the end of the year. We have been

too long putting our fingers in holes in the dike without fixing the dike, and

we have to start doing something about it.

Some of the things that the Advisory Council on the Economy - their job was

to monitor government economic policy and initiatives, and evaluate their

effectiveness and potential. I can tell you, their policy has not been very

effective. I do not know if the Advisory Council is telling the minister that

their policies are not very effective, and they are not growing the economy.

They must be, because I know some of the names of people who served and they are

successful people in this Province, and I am sure they had good advice to give

to the minister. I would wish that the good advice we get is heeded within the

department and by the minister. Sometime I wonder if the advice is getting

through. When you have the minister making a statement one day and the Premier

making a diametrically opposing statement another day, you wonder who is making

the economic decisions and the financial decisions in this Province today. I

think we have a major problem.

I thought for a moment the Board of Trade might be giving her some advice,

but I can see that they indicated in their release on November 21 - they went on

to say: We are in a situation where programs are simply not sustainable because

government does not have the flexibility to increase taxes or borrow more money.

When do you not get the flexibility?

Let's look at the history of what this Province has done. Since 1996 or

just slightly before, I think this was in 1993, when the former Minister of

Fisheries and the candidate for the leadership and Member for Port de Grave - I

think he was minister at the time in Works, Services and Transportation - stood

in this House in answer to questions: We got $55 million from the federal

government for the South Coast ferry service. We said that was enough money,

that was put aside basically, to operate that ferry service on the South Coast.

He said it was going to be put into a fund in perpetuity and the interest on

that, in the vicinity of $5 million a year, will run that ferry service, because

that is what the costs were. What did they do?

MR. BARRETT: What about the Roads for Rails Agreement?

MR. SULLIVAN: I will get to that in a few minutes. Just give me time, I

say to the Minister of Works, Services and Transportation. One thing at a time.

We took the money and we spent it all over a period of a couple of years. It

was all gone and every year we are having to pay for that service. Then they

have come along with the Northern ferry service and they said: We will get a

chunk of money in lieu to lift the federal government from their responsibility

for delivering a ferry service to parts of Newfoundland and Labrador.

The concept was right, I agree, to put a good first-class highway across

Labrador to hopefully eliminate the ferry service. What was wrong? One hundred

and fifty million dollars too little. When it is finished, we will have a dirt

highway, a gravel highway, except Goose Bay to Cartwright will not be connected,

and we need a significant infusion of money. We still have to have a ferry

service going into numerous areas. I can tell you, if you look at it, I am sure

the cost of ferry service to Labrador has not diminished by very much at all,

only a fraction of the $350 million we got. We did not solve the problem and we

took a chunk of money. What happens when it is gone in another year or so? We

will still have to service that, and that is the cost that we built in by

relieving the federal government of their responsibility to deliver this

service. That is what we have done, and it is not the only area in which we have

done that.

MR. ANDERSEN: (Inaudible).

MR. SULLIVAN: I am delighted for a road in Labrador, I say to the Member

for Torngat Mountains. I am delighted! I would love to see a highway connecting

Labrador and I would like to see a link across The Straits that will bring us

closer together, I say to the Member for Torngat Mountains..

SOME HON. MEMBERS: Hear, hear!

MR. SULLIVAN: That is what I would like to see. I think everyone in

Newfoundland and Labrador would like to see a closer tie between Newfoundland

and Labrador, geographically, physical ties whereby you can join Labrador, the

mainland portion, to the Island. I think it would be positive. I think the

spinoff effects for industry would be very positive.

AN HON. MEMBER: Just look at PEI.

MR. SULLIVAN: Yes, look at PEI.

The next point I want to make: In Term 29, in 1996, we saw they were having

problems, problems meeting budget expectations. Did they try to deal with them

by growing the economy? No. What else can we pull out of the hat? What else can

we rob from our children's future?

Well, we get $8 million a year forever, under Term 29, from the federal

government, I think negotiated right back to John Diefenbaker's time. What

happened? Eight million a year.

MR. BARRETT: (Inaudible).

MR. SULLIVAN: Well, whatever happened, it didn't work. There was a rule

he made, that it could not be done. This was a guarantee.

MR. BARRETT: (Inaudible).

MR. SULLIVAN: That is correct. I agree. What did this government do of

which you sat as a member? I am not sure but you sat in the Premier's office

at the time, I say to the Minister of Works Services and Transportation, as

Parliamentary Assistant.

What did we do? We said to the federal government and Paul Martin, Finance

Minister, Premier Tobin at the time said: Give us twenty years' money upfront,

give us $160 million. The federal government: Oh, no, you are not getting $160

million, because if we give it to you upfront we have carrying charges and

things on that. We will give you $130 million upfront. So, they gave us $130

million upfront for twenty years. In1996 we were starting, and for the next

seventeen years. It was used in three years and plugged into the Budget here. So

after 1999, where are we? We are missing that $8 million every year in the

Budget, the money is gone and we do not get any for seventeen years after. That

is what happened. If that is not borrowing on your children's future, as in

other areas, what is it doing?

AN HON. MEMBER: Why did we pay the penalty.

MR. SULLIVAN: Basically, the penalty was we got $30 million less over the

period of time. Basically that was the penalty we served, because they gave us

$30 million less than we would have gotten if we had taken it on an annual

basis.

Then we stood in this House and we said everybody would like to see lower

taxes. We would like to see lower taxes in income tax because we think it

stimulates the economy. We would like to see lower payroll taxes. That is a

burden and that is an issue I will get to in another bill. I will get to this in

another bill where they are changing the payroll tax now. They gave us a

$500,000 exemption in the March Budget and now they are rolling it back in

another bill before this House which I will leave for that time. I want to say

that basically, as critic on it, my time is pretty extensive in responding here.

AN HON. MEMBER: (Inaudible).

MR. SULLIVAN: I will get to that in a minute. One thing at a time.

We talked about retail sales tax and we said, when this government went to a

harmonized sales tax we were told that, look, we have to start somewhere, we are

going to bring all the provinces onside. We are going to bring New Brunswick

onside, Nova Scotia, Prince Edward Island and other provinces across the

country. What provinces came onside? New Brunswick and Nova Scotia. Thats it.

Where did all the jobs go? Where is the centre for dealing with the HST? Prince

Edward Island, the province that did not participate, got the jobs and we let it

go. What happened? Our revenues were over $100 million less, and they stood in

this House, the Premier and the minister, and said - and I happened to be Leader

of the Opposition at the time and I said: the reduction will not -

MR. BARRETT: Do you want to cut out the tax for business?

MR. SULLIVAN: The Minister of Works Services and Transportation: You are

on a different wavelength because I am not talking about that at all. I am on a

different topic. I will get to your topic, if time permits. If I run out the

hour of time that I have, I will do it another time.

Basically, we have talked about retail sales tax. I said: You will never get

it back in revenues . They said: Oh, the economy will grow, and in two or three

years we will get it all back, but we did not get it back. A lower tax is

positive. I agree it is positive, and we did not expect it. Is it positive to

reduce taxes? I agree it is positive to reduce taxes because history has proven

time and time again that reduction in taxes -

AN HON. MEMBER: (Inaudible).

MR. SULLIVAN: Yes, I am getting to that point.

I have indicated that retail sales tax replaced with HST - there are only two

other provinces. The whole country participated. It would have been better for

the economy in Canada as a whole to have a harmonization of all provinces. It

did not happen, it just did not happen. With regard to jobs, Prince Edward

Island was the big beneficiary and they did not participate in this program.

Now, we have looked at numerous areas where we have taken money in the

short-term to fix a hole. Sooner or later, Mr. Speaker, there are prices you are

going to have to pay for shortchanging yourself in the future. The chicken have

come home to roost now, because we are into a situation where we have built a

major deficit in our Province and we have gone so far out on the limb that we

cannot get back in. That has been very significant.

We have seen this government's very poor economic policy. We have seen very

poor planning. Last year, and what they did in the Budget this year too - do not

worry about future budgets, lets get through this one. That short-term thing is

going to cost, because this year in our budget - we are using in this fiscal

year, right now, $196.8 million in deferred revenue from last year. Some of it

was carried from the previous year and so on, but in last year's Budget they

carried over $196.8 million, because if we had to show that, we would have shown

a big surplus. They did not want to do that. They wanted to show a different

situation and they carried it into this year, and now this year we have $196.8

million that we are not going to have next year.

The minister said there is an $80 million deficit right now. We have $90

million when the next year of public sector wages kick in. That is another $90

million. Add all that up and we have almost $370 million. I understand there are

cost-cutting initiatives going on in departments all over now, because they are

having a job to stay within the budgeted amount here. So we are seeing $400

million. The minister on public airwaves indicated: Yes, it is, certainly. When

they asked her if that $400 million I referred to was right, she agreed. She

agreed in a conversation with Jim Brown. So she realizes we have a big problem.

They should have realized and they should have listened, or they should have

taken advice from somebody that would have prevented us from getting into this

problem in the first place, because nothing beats proper fiscal planning for a

government. When you are in government, you should do it, it is very important.

We do not have to see a need every four and five years, everybody up in a big

fuss. We have to have a program review. Look, if we were carrying out the

mandates of properly administering and running efficient departments, we would

not have to have a major program review every so many years. We would be doing a

on-going review every single year on efficiency and so on of public services,

and proper utilization of the limited resources in times that we have available

to us. That should not have to happen, I might add.

On top of this almost $400 million I referred to, we have other costs that

haven't been looked at. I say to the minister: When this government introduced

year one of the tax cuts and year two of the income tax cuts, this government

went from $545,057,000 in revenues under income tax to $620,900,000. An increase

of $65 million in income tax went into the coffers of this Province in the tax

cuts than went in before.

AN HON. MEMBER: That is because we grew the economy.

MR. SULLIVAN: Exactly! Because we grew the economy, someone said. That is

exactly it. Because when you reduce taxes, you lift the burdens, you encourage

jobs and growth, you grow the economy, and that is what we are talking about. I

hope they now get the message, because they did not get it before. That is the

exactly the reason, and the thing I have been saying. You cannot put a damper on

consumer spending and growing the economy by negative - we have stagflation.

This minister is presiding over stagflation in our economy. That is basically

what is happening.

AN HON. MEMBER: (Inaudible).

MR. SULLIVAN: No, it is stagflation. It is a common economic term. I say,

that is what is happening here. We cannot be going on this path continuously,

fixing a hole here and fixing a hole there. We have to have a particular plan.

Now, that $400 million deficit she is talking about, and that she admits on

the public airwaves, Mr. Speaker, that she agrees with me on, I say it is worse

than that. We haven't even talked. What she has tried to do is, she has tried

to tell us that the health boards in this Province, the community health boards

and institutional boards, are not a part of our financial statements, we do not

count their deficits. That is wrong. We fund health care boards. The Minister of

Health and Community Services appoints members to those boards. The minister,

technically, can hand-pick every member who sits on a health care board in this

Province. The minister approves everything, and funds them; and then to tell us

that they are not part of our Province's finances.

Right now, health care boards, institutional boards, have told government

that the $50 million we got this year, that the Minister of Health and Community

Services talks about, is money to pay for services that we got last year. That

is to pay for services we had last year, not this year. When you look at it now,

health care boards, institutional boards, are telling government: We cannot

operate without $18 million more. Community health care boards are between $6

million and $7 million. That is $24 million to $25 million that they need, over

and above what they were given, to be able to give the same level of service.

The department came back and said: Bring in the people with the knives and

the axes and start cutting. Come back to us and show us the plan as to how you

are going to recoup that.

They came back to government and one corporation here, the Health Care

Corporation of St. John's, said: We cannot find it. There is about $6 million

of that we just cannot find.

Basically what they said was - Mr. Peddle, who is executive director - here

are the options we have. You tell us where you want to cut, what programs and

what services you want to cut, and what layoffs.

Just to get $1.8 billion, there are forty-three layoffs in health care. How

do you get $6 million more? Basically, we have an overrun this year. Even if

they reach the knife cutting this year with dozens if not hundreds of job

layoffs, we are still not going to meet their expectation of recovering that

twenty-four. On top of that, there are deficits from the past years they have

not dealt with. There is $80 million of that accumulated over the past few

years, on top of that. That is not counted on our Province's debt. They do not

count that. In fact, what are they starting to do now? Here is a very serious

problem. They are being told, I understand, they are starting to convert some of

that deficit and refinance it as long-term debt. What does that do to you?

Look at the Health Care Corporation of St. John's, which is already

financed $100-some million on the Janeway, and the changes with the closure of

the Grace and renovations at St. Clare's and the Health Sciences Complex to

accommodate it. They are going to refinance. What do you do when you refinance,

if you have to refinance $10 million, for example? You have to pay the principle

back, you have to pay interest on that, so that is less interest coming out of

your operation and that gives you less for services next year, and we are into a

never-ending vicious cycle of less disposable money to be able to do the job.

That is what is happening here. You are putting off on the backs of your

children what we should be facing up to as responsible men and women today, and

not transferring a debt to the future because the future is heavily enough

indebted in our Province. God help us, we are approaching close to almost $10

billion, $8.5 billion in direct public debt in the Province. They are not facing

up to the debts. We have to.

I am not saying that we have to eliminate the debt, because if our economy

grows and our GDP grows, the debt becomes less significant if you can hold the

debt in line. If you have a debt of $8.5 billion today, in twenty years' time

it is less significant and therefore you have command of it, so it is basically

the percentage: your debt in comparison to your GDP, as a percentage of GDP.

In fact, if you look at some other countries of the world, Canada's GDP per

capita was 2.5 that of Ireland. It used to be two-and-a-half times the GDP per

capita of Ireland. Today, Ireland's per capita GDP is greater than Canada. Can

you imagine? What a tremendous turnaround! How did they do it? They were told,

if you cut taxes, we are going to lose revenues. Young people were leaving to go

to Canada and elsewhere to get jobs. Today, they are coming back because they

dealt with it. Taxation is one thing, and education is another aspect of theirs,

but I will deal with taxation today.

AN HON. MEMBER: (Inaudible).

MR. SULLIVAN: I am talking about taxation generally, yes. There are other

issues of taxation. We could get into corporate and different types of taxes. I

am talking about general taxation, the tax burden, because if there is a burden

on a corporation, it is a cost to a corporation. If it is a burden on an

individual...

Consumer spending is obviously very much tied to personal disposable income.

That is basically what it is tied to, and personal taxes have a greater impact

on taxes in that particular area than businesses; but I will add, while we are

on the business end of it, that payroll tax, for example, is a tax on jobs. It

is as simple as that. Can we afford not to have it? Can we afford to have it?

These arguments can go on and on, but payroll tax is a burden.

We have moved and we have been calling for, and government has responded,

making exempt over $100,000 up to $500,000, and what did they do? They sneaked a

little bill in this House - I know you do not want to use the word sneak, but

they put a bill in this House, you can use what term you want - and they have a

bill in now that says we are going to roll back that $500,000 of exempted income

now to $475,000 this year. It is another regressive step.

There is a bill before this House, the Minister of Finance should be aware,

under the minister's heading. I will just find that bill for her, in case she

does not know what I am talking about, and I will give her the bill number. It

is Bill 28, I say to the minister, in case the minister is wondering. In Bill

28, here is what it says in the Explanatory Note provided under the minister's

signature, "This Bill would amend the Health and Post-Secondary Education

Tax Act to increase the remuneration threshold above which tax is imposed to

$500,000. For the balance of the 2001 taxation year the threshold would be

$475,000."

In your backgrounders to your notes in the Budget - I went back and reviewed

them - it is indicated that the threshold is going to be $500,000. This is not

legislation stemming to implement a budget; this is a change in your budget

figure that you gave. Some of the revenue that you gave in March, you are taking

back in November. That is what that is. That is basically what it is. If the

minister is not aware of it, she should get familiar with it very soon because

she will soon be called to introduce it here in this particular House.

We have looked at numerous particular areas of finance and what we have to do

- I was reading this article, this release that came out, and the president of

the St. John's Board of Trade - it is something we have been saying over and

over again - said, "Historically, governments of this Province, by

continual deficit spending have accumulated debt, which is now crippling the

ability to respond to current program needs." Because you have, in other

words, put yourself in a corner, you have put yourself up against the wall, you

have taken away your manoeuverability in times to be able to deliver the

programs we want to see delivered. "The spend now and pay later'

philosophy of passing the financial burden on to future generations has caught

up with us. The future is here and we must deal with the issues by cutting costs

now. Unfortunately, the timing for this type of policy directive from government

is very poor".

In other words, you have to deal with a problem, but there is a better way.

Not having to deal with a problem is by proper planning to eliminate or to

lessen the magnitude of that problem, and that is called proper planning, having

a plan to deal with it. Do not budget on the optimistic side. I still say to the

minister that I think she is budgeting on the optimistic side and we could be

back here with a poor mouth statement in February or March again, telling us:

Oh, look. We have underestimated the effect of September 11. We did not think it

was going to impact as much. The Premier said it was going to have no impact. We

underestimated the slowdown because the U.S. economy to the Canadian economy,

there is a lag quarter into the Canadian economy and there is a further lag into

the Newfoundland economy. When it starts to rebound again, the U.S. economy

picks up the lag, it is slower in kicking in, and if it kicks in over all, even

in the second quarter of next year in the U.S., it will be further down the line

before we start to reap the benefits of it. That happens. That happens with the

giant U.S., with ten times the Canadian economy and our Newfoundland economy.

While we are removed, geographically, we are depending very much on the export

commodities in the United States and there is a lot of dependence on the world

economy.

There is no economy in a global market today untouched, parochial in a view,

and isolated from impacts. They are there because we are dealing with

international trade today. We cannot close ourselves in and think that we are

not touched by it.

The Premier should go back to his council and get some advice on these

particular issues because he certainly has not articulated that to the public

and put any confidence in consumers in this Province to encourage them to spend.

That has to happen.

People have said that historically when you give the rich a tax break, they

hoard it up and they keep it. It has not proven correct. It has proven that they

increase spending, that they are more liberal in their spending habits, they

spend more money, they create more jobs because, when you loosen the purse

strings, you increase the spending. It is an extra job in that department store,

it is another ten in another store, it is three more down the road. To the small

grocery store out in the community, it is one extra employee. All of these add

up, all of these people pay taxes, all of these people are less of a burden then

on certain programs, certain social programs of our Province, because they have

an income and they have an insurance plan. By the way, that is another area. If

there are more people working, there are more people with insurance plans.

Over 30 per cent of health care today is privately paid for. It was only 25

per cent back in the 1980s. We are moving into a health care system now that is

almost one-third privately funded. We are talking about, and I read today, the

biggest, I guess, impediment to getting a publicly-funded system is that the

principles of our Canadian health system.

Most people are fairly familiar with them. For anybody who is not uniquely

familiar, comprehensiveness is one of the ones now that is being discussed on a

national level; we have a universality of that program, all across this country

you should be able to participate; support ability, the right for people in one

province to another to be able to avail of that system; public accountability of

founded. The Prime Minister and his government today are seriously threatening

that. They are seriously threatening that by not providing to the people of this

Province and not fulfilling their commitment to allow people under equalization

to be able to provide a comparable level of public services at comparable levels

of taxation.

In fact, I think it is a violation of our constitution. It was enshrined in

our constitution, and tying the hands of a province that has a large geography

and a small population, that is an issue that I think this government should be

standing up, taking on the federal government on constitutional grounds, taking

the government to court on constitutional grounds, that they are not providing

the comparable levels of service and the comparable levels of taxation in

compliance with our 1982 constitution. It is not there. They have kept

equalization on those grounds. They have kept equalization and they throw a

whole pot. What happens when the pot stays the same and disparities get greater?

You do not have the money to close the disparities, and disparities between us

and other provinces of this country are getting greater and greater and greater.

If you do not have a publicly-funded system today, you are in big trouble. If

you do not have a system there, people cannot afford it. I will use an example

of someone from my district who has to go to Toronto for a kidney transplant.

Basically, they went out and had a fund-raiser and bought tickets. They bought

tickets to go on Canada 3000. The family, the donor, the recipient - actually,

the donor was paid. The donor was paid through a government (inaudible). I will

not get into the specifics. The recipient had to buy the ticket, and the parents

and so on, to accompany that person. Canada 3000 went under. They lost it and

now they have to try to come up with the money on their own. There is nothing

that can be done. I have pursued it right to the corporate office of Air Canada.

There is nothing to help them. They have to go out and try to get the money to

get there.

Why isn't the recipient, why isn't the person who needs that, covered? If

our Province cannot provide a medical service, a kidney transplant that will

allow that person to live a normal life, shouldn't there be a program? If we

cannot provide a service, should there be a responsibility that we should be

able to provide an avenue to be able to get that service? That makes common

sense.

This family now has been in stress over the past couple of weeks, from phone

calls back and forth, speaking with myself. I know our health critic has spoken

with the family and they have gone through numerous efforts to try to be able to

have that go ahead on

schedule over the next couple of weeks.

This comes back to fundamental problems because we are not managing our

affairs, we are not freeing up dollars. Some of the things said by the Board of

Trade and others is that we have boxed ourselves into a corner, we have lessened

our ability to provide programs to people in our Province. Proper planning

allows you to look at your priorities in programming; it allows you to deliver

these basic programs. We are into a debate over what is funded by private and

what should be medically insured services that are covered under our public

services. We are getting into a big array of services in our Province that might

be covered in one province and not in another. We are getting down to what is

discretionary, what is essential. There is a whole argument that has been going

on, on this particular issue.

I am going to get to a conclusion in my comments on this bill. It is not what

legislation is; it is what you do with the legislation you have. If you have a

committee in place to advise government, if they are going to advise government

on the economy, identify major economic issues out there, report to the Cabinet

through the Premier of this Province, what is wrong with our economy? Is a

committee that is appointed by the Premier going to report back? Is the Premier

going to take advice? If he does not like the advice, he does not have to take

it. He can compile a committee that will give him the advice he wants. I think

what we need is advice, or we need people in the position who are going to heed

good economic advice and get this Province on the road to recovery, and stop

thinking short term, short-sightedness, and look at the overall direction we are

going to go in the long term, and get this Province on the road to recovery, and

do not do it by robbing our children's future.

SOME HON. MEMBERS: Hear, hear!

MADAM SPEAKER (M. Hodder): Order, please!

The hon. the Member for Signal Hill-Quidi Vidi.

MR. HARRIS: Thank you, Madam Speaker.

I know the Minister of Finance is anxious to wind up debate.

AN HON. MEMBER: (Inaudible).

MR. HARRIS: Oh, good. I have a few things to say about economic advice, I

guess. I am going to talk about in general, because this government and I

suppose the predecesso

Document details

CollectionNewfoundland and Labrador — Debates (Hansard)
Citation2001-11-26
Typehansard
Volume / chapter2001-11-26
Languageen
Formathtm
SourcePROVINCIAL
Identifier2b04189c319f325d1656d86c84fa5f8d843c9309

Source file is stored in the law ingest library (htm).