British Columbia Hansard — Wednesday, October 10, 1973 — Afternoon Sitting (30th Parliament, 3rd Session)
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British Columbia — Debates (Hansard)
1973 Legislative Session: 3rd Session, 30th Parliament
HANSARD
The following electronic version is for informational purposes
only.
The printed version remains the official version.
Official Report of
DEBATES OF THE LEGISLATIVE ASSEMBLY
(Hansard)
WEDNESDAY, OCTOBER 10, 1973
Afternoon Sitting
[ Page 519 ]
CONTENTS
Routine proceedings
Oral Questions
Heavy water plant proposal. Hon. Mr. Lauk
— 519
Possible phasing out of ferry dining rooms. Mr. McClelland — 519
Renegotiation of Columbia River Treaty. Mr. McGeer — 520
Recognition of Chile. Mr. Wallace — 520
Invitations to NDP fund-raising dinner. Mr. Chabot — 521
Release of the Shortliffe report. Mr. McGeer — 521
Subsidy on milk. Mr. Wallace — 522
Future natural gas to go through B.C. pipelines. Mr. Smith — 522
Personal Information Reporting Act. (Bill 63)
Hon. Mr. Macdonald. Introduction and first reading — 523
Department of Transport and Communications Act. (Bill
64).
Hon. Mr. Strachan. Introduction and first reading — 523
Voluntary Emergency First Aid Act. (Bill 66).
Mr. McGeer. Introduction and first reading — 523
An Act to Amend the Payment of Wages Act. (Bill 40).
Second reading. Hon. Mr. King — 523
Mr. Liden — 523
Hon. Mr. King — 523
An Act to Amend the Real Estate Act. (Bill 29). Second
reading.
Hon. Mr. Macdonald — 524
Mr. Williams — 524
Mr. Wallace — 525
Hon. Mr. Macdonald — 525
An Act to Amend the Department of Commercial Transport
Act.
(Bill 30).
Second reading. Hon. Mr. Strachan — 526
Mr. Williams — 526
Mr. Morrison — 526
Hon. Mr. Strachan — 526
Mr. Phillips — 527
Agricultural Credit Act. (Bill 44). Second reading.
Hon. Mr. Stupich — 527
Mr. Phillips — 529
Mr. Williams — 530
Mr. Wallace — 531
Mr. Gabelmann — 532
Mr. Smith — 533
Mr. Liden — 534
Mr. Kelly — 535
Hon. Mr. Stupich — 535
An Act to Amend the Human Tissue Gift Act. (Bill 43).
Second reading. Hon. Mr. Cocke — 538
Mr. Wallace — 539
Mr. McClelland — 539
Hon. Mr. Cocke — 539
Domestic Animal Protection Act. (Bill 45). Second
reading.
Hon. Mr. Stupich — 539
Mr. Phillips — 540
Mr. Curtis — 542
Mr. Williams — 542
Mr. G.H. Anderson — 542
Mr. Lewis — 542
Mr. Chabot — 543
Mr. Gardom — 543
Hon. Mr. Stupich — 543
Livestock Protection Act. (Bill 46). Second reading.
Hon. Mr. Stupich — 544
Mr. Phillips — 545
Hon. Mr. Stupich — 545
Beef Grading Act. (Bill 6).
Committee, report and third reading — 545
An Act to Amend the Milk Industry Act. (Bill 7).
Committee stage.
Amendment to
section 3.
Hon. Mr. Stupich — 545
Amendment to
section 4.
Hon. Mr. Stupich — 546
Mr. Wallace — 546
Amendment to
section 5.
Hon. Mr. Stupich — 546
Mr. Phillips — 546
Hon. Mr. Stupich — 547
Report and third reading — 548
Farm Income Assurance Act. (Bill 9).
Committee stage.
Mr. Williams — 548
Mr. Smith — 549
Hon. Mr. Stupich — 549
Mr. Wallace — 549
Mr. Gardom — 550
Hon. Mr. Stupich — 550
Mr. D.A. Anderson — 551
The House met at 2 p.m.
Prayers.
HON. D. BARRETT (Premier): Mr. Speaker, we are very honoured
in the House today as a result of the efforts of the First
Member for Vancouver–Point Grey (Mr. McGeer). Sitting on the
Floor with us is Sir John Eccles. Sir John was a Nobel prize
winner in 1963; he's a learned author of more than 300
scientific works, and he's a visiting lecturer this week at
British Columbia universities. He's a former Rhodes Scholar
from Australia — unfortunately in rowing rather than rugger — who distinguished himself at Oxford as a student, teaching and
visiting lecturer and honorary fellow of Magdalene College in
Oxford.
He is a holder of many medals and awards from the formal
scientific societies of the world, including the Royal Medal of
the Royal Society, and was knighted by Her Majesty Queen
Elizabeth in recognition for his pre-eminence in his field of
research.
Sir John is accompanied by a great British Columbian, Bill
Gibson.
MR. P.L. McGEER (Vancouver–Point Grey): Mr. Speaker, from
the opposition side I would like to welcome Sir John too. He's
recognized as the world's greatest living brain scientist. But
I want to assure the Members that he's not here out of
professional curiosity. (Laughter.)
HON. MR. BARRETT: I asked that question before I introduced
him.
Mr. Speaker, I'd like to announce to the House that it's
someone else's birthday today. I'd like the House to
congratulate Marj Nichols on her 22nd birthday.
Now, Mr. Speaker, as a personal note, I want to take the
opportunity of introducing to the House my own Member of
Parliament, a man of outstanding service to Canada, an
outstanding British Columbian … and can you please help me
with my culvert? — Mark Rose.
HON. E. HALL (Provincial Secretary): Mr. Speaker, I'd like
the Members to welcome to the House today — seated in the
Members' gallery — the mayor of Surrey, Bill Vander Zalm and
his wife Mrs. Vander Zalm.
MR. R.H. McCLELLAND (Langley): Mr. Speaker, I was going to introduce
the mayor of Surrey as well, since he is one of my constituents. But I'll take
the opportunity to say hello to my MP as well, and to introduce his wife, who
is sitting in the gallery; and it's nice to see her. (Laughter.)
MR. C. LIDEN (Delta): Mr. Speaker, we have a group of
students from the White Rock-South Surrey area, from two
schools; the Earl Merriot Junior Secondary and the Semiahmoo
Senior Secondary, along with their teachers George Abbott and
Doug Oram. I hope the House will make them welcome.
MR. G.B. GARDOM (Vancouver–Point Grey): It's a time-honoured
custom, Mr. Speaker, under these circumstances, with so many
introductions, to welcome to the House all of the guests who
have not yet been welcomed. (Laughter.)
MR. SPEAKER: A custom honoured by that Member all the
time.
HON. MR. BARRETT: Haven't you got any friends here?
Oral questions.
HEAVY WATER PLANT PROPOSAL
HON. G.V. LAUK (Minister of Industrial Development, Trade
and Commerce): Mr. Speaker, yesterday a question was asked of
me and I said that I would attempt to answer it today.
It was a question from the Hon. Member for South Peace River
(Mr. Phillips). He indicated in his question that my department
was involved in a proposal to Ottawa with respect to the
location of a heavy water plant in the Province of British
Columbia. My department is not so involved and, so far as I am
aware, there is no such proposal, nor was there any indication
that my department was involved in the newspaper clipping which
I have and to which the Member referred.
MR. SPEAKER: May I point out to Hon. Members that the reason
under our rules that we do not, according to Beauchesne , use
newspaper clippings as the basis for a question is that you
cannot yourself take personal and honourable responsibility for
the statement that you make in your questions. Therefore, you
must ascertain that your question has some basis in fact before
you ask it. That's the reason for the rule.
POSSIBLE PHASING OUT
OF FERRY DINING ROOMS
MR. McCLELLAND: Mr. Speaker, I'd like to direct my question
to the Minister of Transport and Communications (Hon. Mr.
Strachan). Yesterday he indicated that there were some
structural changes going on to the dining rooms of the ferry
system in
[ Page 520 ]
British Columbia. I'd like to ask him if it's true that
management people within the ferry system have already informed
ferry personnel that the dining rooms will be phased out in the
very near future and that their jobs are in jeopardy.
HON. R.M. STRACHAN (Minister of Transport and Communications): I have
no knowledge that any management personnel have taken any such step.
MR. McCLELLAND: Mr. Speaker, a supplementary question. When
the Minister stepped in to settle the ferry dispute some time
ago he made a promise to the ferry personnel that he would
appoint a high-level mediator to study all of the concerns of
the ferry personnel with regard to their job situations. I'm
wondering whether that person has yet been appointed. If not,
when will he be appointed?
HON. MR. STRACHAN: I have a letter from the union concerned,
and I have not yet replied to it.
MR. McCLELLAND: Does the Minister plan to honour the pledge that he
made to appoint the mediator to look into the problems of the ferry service?
HON. MR. STRACHAN: I told you I have not yet prepared a
reply to the letter.
MR. McCLELLAND: But what about your promise? What are you
going to do about it? Reply to the question; never mind the
letter.
AN HON. MEMBER: He doesn't know the answer.
HON. MR. STRACHAN: I know the answer. The letter was sent
prior to the strike by the ferry workers — the telegram was
sent. The telegram is public knowledge. I would ask you to read
the telegram and then come back and ask your question.
RENEGOTIATION OF
COLUMBIA RIVER TREATY
MR. McGEER: We'll try the Minister of Finance (Hon. Mr.
Barrett), Mr. Speaker.
In view of the $340 million plus that British Columbia lost
on the Columbia River Treaty, and in view of the reports of
power shortages along with natural gas and oil shortages, I
would like to ask the Premier and Minister of Finance what
steps are currently being taken to renegotiate the Columbia
River Treaty.
HON. MR. BARRETT: Mr. Speaker, shortly after the election of this government
it was announced that we had intended to explore all possible ways to see whether
or not the treaty could be renegotiated. The only avenue that was open to us
was a
section of the Canada-British Columbia agreement related to the treaty
that allowed for the province to make a direct appeal to the federal government
on the basis of new information or related information, and to have the federal
government then approach the United States for new discussions on the treaty.
I met with the Prime Minister once on this matter and shared
with him our intention to approach the federal government
through that
section of the British Columbia-federal Government
of Canada treaty.
We have, since that time, been engaged in the necessary
research to make a detailed presentation relative to that
opening of that particular
section of the Canada-British
Columbia agreement along with detailed information that we will
need to present related to the second 30 years that the
previous administration sold out to the United States. Now,
when those two presentations are ready we will be meeting with
the federal government.
I agree completely with the position and the question of the
Member for West Point Grey, and I want to make it clear
AN HON. MEMBER: Vancouver–Point Grey.
HON. MR. BARRETT: Point Grey; West Point Grey; Point Grey.
It is a bit of a hangover related to earlier days.
Mr. Speaker, I agree completely with the Member's criticism,
but there was a verbal commitment on the second 30 years of
that treaty, which this government does not in any way agree
with. The former administration wanted to sell out the power to
2024 instead of 1994. The whole matter is now being researched,
as I said, and we will be presenting our detailed information
and appeal to the federal government.
RECOGNITION OF CHILE
MR. G.S. WALLACE (Oak Bay): Mr. Speaker, I would like to ask
the Premier, who is a social democrat, if he has made any
contact with the federal government with respect to Canada's
official recognition of the illegal government in Chile.
HON. MR. BARRETT: Mr. Speaker, we are releasing today a
letter sent on October 5 outlining our caucus position opposed
to the recognition of the military junta in Chile. Along with
that, we conveyed to our federal colleagues our complete
approval of their condemnation at the federal level of the
recognition of what must be considered a fascist regime in
Chile.
Speaking on behalf of my colleagues and the
[ Page 521 ]
government benches, I must say that we totally reject the
concept that the federal government should recognize the new
junta in Chile. Regardless of anyone's political philosophy,
there is no question that that was purely an illegal uprising
against a democratically-elected government.
MR. D.A. ANDERSON (Victoria): Mr. Speaker, a supplementary.
While agreeing completely with the remarks about the illegality
of the regime, may I ask whether the government consulted the
Sidney resident who was imprisoned by the junta and who was
released subsequent to recognition at the intervention of the
Canadian embassy authorities in Chile prior to taking the step
the Premier indicated his party has taken?
HON. MR. BARRETT: We didn't consult anyone, and we don't
think that principles should be bargained for, Mr. Speaker. It
is a matter of fact that it is an illegal act against the
Chilean government. It is a military illegal act — a violent
overthrow, with murder accompanying it.
It is obvious to us that the federal government acted in
haste. It is not a question of consulting people who had been
there; it is a question of consulting one's conscience. It was
obvious after the examination of the facts that that government
is tyrannical, anti-democratic, and should not have been
recognized by the federal administration.
INVITATIONS TO NDP
FUND-RAISING DINNER
MR. J.R. CHABOT (Columbia River): A question to the Minister
of Industrial Development, Trade and Commerce. Recently the New
Democratic Party held a fund-raising dinner in Vancouver. I am
wondering whether it is a regular function of the Department of
Industrial Development to send out invitations to people in the
business community to attend these fund-raising functions of
the NDP.
HON. MR. LAUK: As far as I am aware, Mr. Speaker, it was an
open public dinner; anyone was entitled to attend and purchase
tickets. They were being sold to everyone. I would have
welcomed any Member of the opposition.
MR. D.M. PHILLIPS (South Peace River): You didn't send me a
letter, though. (Laughter.)
HON. MR. LAUK: Mr. Speaker, I can promise you that every
Member of the opposition is invited to the next dinner as long
as they have the cash. (Laughter.)
MR. CHABOT: A supplementary question.
MR. SPEAKER: I take it this has to do with government
business rather than private?
MR. CHABOT: Yes, Mr. Speaker, it has to do with government
business. It has to do with the public conduct of a Minister of
the Crown. It has to do with the proper administration of a
department. Mr. Speaker, you can smile and laugh all you want
MR. SPEAKER: No, I am smiling at the fact that you are
making a speech instead of asking a question.
MR. CHABOT: Mr. Speaker, I have asked the Minister if it is
a regular function of his department to send out invitations to
attend NDP fund-raising dinners. Is that a regular function?
One of the participants at this dinner maintained that he
received an invitation from your department. Was it a
gilt-edged invitation; was it by phone, telegram? How was it
communicated? Was there an invitation? These are questions.
AN HON. MEMBER: Order, order.
MR. CHABOT: Just because you are embarrassed you don't have
to keep yelling, "Order."
Was it an invitation he couldn't turn down.
SOME HON. MEMBERS: Oh, oh.
MR. CHABOT: No answers from the Minister. He's ashamed of
his act.
MR. SPEAKER: I think he has already answered you.
Interjections.
MR. McGEER: Jimmy and Ben are the new economic advisers to
the NDP government. (Laughter.)
RELEASE OF THE
SHORTLIFFE REPORT
MR. McGEER: My question, Mr. Speaker, is to the Minister of
Health Services. Several days ago we asked him whether he would
release the Shortliffe report. He said he would consider this
for awhile. I wonder if the Minister is prepared to announce
that he is going to release it today.
HON. D.G. COCKE (Minister of Health Services and Hospital
Insurance): Mr. Speaker, the Shortliffe report was not a report
to this Ministry; it was a report to the Foulkes committee. I
have considered every aspect of releasing this Shortliffe
report and I don't feel that the Shortliffe report is really
relevant.
[ Page 522 ]
It is certainly not relevant to this House. It was made
after the approach of a committee that reports to me, and the
committee report will be made public.
I said a few days ago that the Foulkes report will become a
public document for public discussion, but if, in fact, I
release every working paper that went into the making of the
Foulkes report, this place would be like a confetti factory. I
just don't think it would be worthwhile. So therefore I will
not be releasing the Shortliffe report.
MR. McGEER: The Minister's reply doesn't surprise me, Mr.
Speaker, but I would like to inquire whether he would be
prepared to use the influence of his office to see that the
Shortliffe report, in toto , appears at the time the Foulkes
report is released to the general public.
HON. MR. COCKE: Well, Mr. Speaker, I thought I had answered
that question. The Shortliffe report is not relevant. It would
be as though I was asking the Foulkes committee to release all
their correspondence.
They are charged with bringing a report to this Ministry. I
believe, as the Minister responsible for this department, that
that report should be made available. But I don't really think
that every contribution should be made available. I just don't
see it.
MR. SPEAKER: May I point out to Hon. Members, page 148,
Beauchesne , that a Member must not ask for information which
deals with matters that are concerning the advice given to the
Crown or officers of the Crown, or which, by their nature, are
secret. I take it that this statement of the Minister falls
somewhere in that category, I hope that will terminate the
questions on this subject.
SUBSIDY ON MILK
MR. WALLACE: Mr. Speaker, I would like to ask the Minister
of Agriculture if he could tell the House at what stage
negotiations are with regard to obtaining a federal subsidy on
milk. If, in fact, there is not such a subsidy forthcoming,
will the provincial government consider providing such a
subsidy?
HON. D.D. STUPICH (Minister of Agriculture): The answer to
the first question: close. The second question is not
applicable under the circumstances. Very close.
MR. WALLACE: Very close?
HON. MR. STUPICH: Yes. We are committed to make a joint
announcement when the time comes. I had hoped that it would be
by today, but at any time.
FUTURE NATURAL GAS TO GO
THROUGH B.C. PIPELINES
MR. D.E. SMITH (North Peace River): My question is to the
Hon. Attorney General with respect to the operations of the
Energy Commission. Has any study been done or are you doing
anything to ascertain the amount of natural gas production that
could be brought into the gathering system, provided that wells
that have been drilled were tied in to the main pipelines?
HON. A.B. MACDONALD (Attorney General): The answer to that,
Mr. Speaker, is yes. Discussions are going on with the industry
at the present time — a day-long discussion yesterday, and
further discussions, including possible piping facilities and
other matters, including distribution of what resources we have
as well.
MR. SMITH: A supplemental question. The discovery of gas in
the Monkman Pass area, of course, is of great concern. It is in
British Columbia, but the Grizzly Valley area has been explored
by the companies that are there. They have indicated they would
like to divert that natural gas to Alberta.
AN HON. MEMBER: They wouldn't do that.
MR. SMITH: Well, to the Alberta pipeline, yes, they have
indicated they would like to sell the gas to Alberta. Is the
energy board investigating the possibility of tying that into
the existing pipelines to the southern part of B.C.?
HON. MR. MACDONALD: Well, Mr. Speaker, I would hope and
expect that British Columbia gas from the Grizzly fields would
go through the British Columbia system.
MR. PHILLIPS: On a point of order, Mr. Speaker.
MR. SPEAKER: Well, is it to do with something happening
today or in September?
MR. PHILLIPS: It's something that didn't happen in
September.
MR. SPEAKER: We've already passed the motion to have
introduction of bills.
MR. PHILLIPS: Well I thought the Premier had an announcement
when he stood up so….
MR. SPEAKER: He made the motion….
ANSWERS TO QUESTIONS
[ Page 523 ]
MR. PHILLIPS: I'll be very short, Mr. Speaker. I'd just like
to know when the cabinet Ministers are going to answer the
questions that are on the order paper. Question 1 is still on
the order paper and the House has been in session nearly a
month. Those in government promised that they would answer all
of these questions.
MR. SPEAKER: I think you've brought it to their
attention.
Introduction of bills.
PERSONAL INFORMATION
REPORTING ACT
Hon. Mr. Macdonald moves introduction and first reading of
Bill 63 intituled Personal Information Reporting Act .
Motion approved.
Bill 63 read a first time and ordered to be placed on orders
of the day for second reading at the next sitting of the House
after today.
DEPARTMENT OF TRANSPORT AND
COMMUNICATIONS ACT
Hon. Mr. Strachan presents a message from His Honour the
Lieutenant-Governor: a bill intituled Department of Transport
and Communications Act .
Bill 64 introduced, read a first time and ordered to be
placed on orders of the day for second reading at the next
sitting of the House after today.
VOLUNTARY EMERGENCY FIRST
AID ACT
Mr. McGeer moves introduction and first reading of Bill 66
intituled Voluntary Emergency First Aid Act .
Motion approved.
Bill 66 read a first time and ordered to be placed on orders
of the day for second reading at the next sitting of the House
after today.
Orders of the day.
HON. D. BARRETT (Premier): Mr. Speaker, I move that we
proceed to public bills and orders.
Motion approved.
HON. MR. BARRETT: Second reading of Bill 40, Mr. Speaker.
AN ACT TO AMEND THE PAYMENT
OF WAGES ACT
HON. W.S. KING (Minister of Labour): Mr. Speaker, Bill 40 is
an Act that is presented to clear up some of the problems that
have revealed themselves in the power of the Department of
Labour to recover wages under the Payment of Wages Act.
We have found that there has been an oversight in the
legislation which prevented the department from collecting
assignments of wages, such as union dues, health benefits and
pension plan contributions that are assigned by the employee as
a part of the collective agreement and which are consequently
deductible from his payroll cheque. These, for all intents and
purposes, since they do form part and parcel of the collective
agreement, should be designated as wages within the meaning of
the Act and therefore recoverable through the normal processes
of recovering wages that are unpaid.
This amendment simply accomplishes that purpose and provides
that designated deductions agreed to by the employee and the
employer will be designated as wages and hence recoverable.
It's a simple, straightforward amendment and I would commend it
to second reading.
MR. C. LIDEN (Delta): Mr. Speaker, while I rise to support
this bill, there is some question in my mind. The way it is
drafted, I have some doubts as to whether or not it'll reach
into the fringes. I know that the assignments on wages are one
thing; but in addition to that, there is in many contracts now,
particularly in the building trades, in addition to the wages
some payment per hour that goes into welfare funds that provide
some very important benefits to workers — most of the medical
plans, dental plans, wage loss insurance plans and that sort of
thing. I'm not convinced that the bill quite covers that and I
hope the Minister will clear it up for me when he winds up the
debate. If an amendment is necessary, perhaps it can be
forthcoming.
MR. SPEAKER: The Hon. Minister closes the debate.
HON. MR. KING: Mr. Speaker, the point the Member for Delta
makes is well taken. As a matter of fact, I do anticipate an
amendment, which will be presented to the House before
committee consideration of the bill. There are a number of
problems and it's questionable as to whether the language of
this bill covers each situation. We are studying that and I do
anticipate that some amendments might well be presented for the
committee stage.
[ Page 524 ]
However, the principle of this bill is what we're dealing
with at this time. It's clearly to make recoverable all those
provisions of the contractual relationship between the employee
and his employer, which should be construed as wages and which
should be recoverable in the same way that salary and wages are
recoverable per se . Mr. Speaker, I move second reading of Bill
40,
An Act to Amend the Payment of Wages Act .
Motion approved, Bill 40 read a second time and referred to Committee of the
Whole House at the next sitting after today.
HON. MR. BARRETT: Second reading of Bill 29, Mr.
Speaker.
AN ACT TO AMEND THE
REAL ESTATE ACT
HON. A.B. MACDONALD (Attorney General): Mr. Speaker, there
are some minor matters in this bill, including retraining of
salesmen and provisions as to those who compile lists of
listings but don't sell, but there are two major principles
contained in the bill.
The first one is to make it clear that the provisions
relating to prospectuses, the landlord and tenant provisions
relating to due notice and payment of moving fees and the
municipal provisions requiring municipal approval, apply to the
conversion of apartments to cooperative residential premises
as they do in the case of conversions under Strata Titles
Act .
The second major principle deals with those residents of
British Columbia who purchase retirement property outside of
the borders of the province, usually in the south, sometimes
subject to high-pressure salesmanship, sometimes offered a ride
by way of a junket down to Arizona, or to Texas, or to British
Guiana; those who see in southern climes in their retirement
years the lure of Florida sand lots or Arizona dry lands,
Florida marsh lots, or Argentinean pampas, and who are
subjected to heavy selling pressure in this province by
fly-by-night salesmen with no roots in this province.
Therefore, in this bill we provide that such properties can
only be sold after provision to the residents of B.C. of a
proper prospectus, and can only be sold through a duly licensed
British Columbian agent.
Now there's a limit to how far we can go to protect people
of British Columbia when they purchase outside of the province.
But if the sale is made in here, in this province, and if the
solicitation takes place in this province, we want it to
measure up to the standards of protection which apply to B.C.
sales. I move second reading of this bill.
MR. G.B. GARDOM (Vancouver–Point Grey): I'd just like to
make one observation concerning the bill, which is a good bill.
The Attorney General illustrated many valid and florid points
in his opening remarks, but I rather wonder why the government
in its legislation, particularly with reference to this
particular statute, hasn't taken into account the very good
experience that British Columbia has learned from the amendment
to the Legal Professions Act , which came into being over the
past two years, to the effect that the interest from 75 per
cent of the trust funds that a lawyer has is put to public use
into the Law Foundation.
There is no question of a doubt that the enormity of trust
funds in the Province of British Columbia are in the real
estate field, and there's literally millions and millions of
the dollars per year in trust. This would produce a very, very
interesting and good interest return for the people of British
Columbia. The real estate agents themselves are not permitted
to receive any interest income on it, and I think there could
be indeed comparable legislation to that which we find in the
Legal Professions Act to see that the interest from the trust
funds in real estate transactions would pass to the similar
body as it does under the other statute. I would much
appreciate receiving the Attorney General's comments on this
point, when he sits down, as to whether or not there has been
any development of government policy on the point — if it's in
the process of being considered or if the decision has been
made.
MR. L.A. WILLIAMS (West Vancouver–Howe Sound): I concur
entirely with what the Attorney General has said, particularly
in connection with the need to protect our citizens from the
so-called "fly-by-night" subdivider, promoter of properties,
outside of this province.
However, I would point out to the Attorney General that
British Columbia has not necessarily been in the forefront of
establishing controls in respect to subdivisions. Many of the
jurisdictions in Canada and in the United States have
requirements much more stringent than those which we have in
British Columbia. I am concerned when he talks about the sale
of such properties by people who have their roots in this
province that by insisting the sales take place through the
facilities of a licensed agent he is neglecting those
responsible companies in the Province of British Columbia, who
have already taken the step of complying with the existing
prospectus regulations in British Columbia, and who have in
British Columbia full-time offices with their employees with
their roots in the community, carrying on their business in a
manner at least equal to that in which business is carried on
by British Columbia subdividers themselves. By forcing those
people into the hands of licensed agents is only to
[ Page 525 ]
increase the costs that they incur in doing business in
British Columbia and may lead them to move elsewhere with the
loss of employment to British Columbia.
I happen to know of one company which has complied with all
of our statutory requirements, which has had the fullest review
by the superintendent of insurance, and which employs 50 people
in this particular project, Those people, at the moment, are in
danger of losing their livelihood and having their livelihood
turned over to someone who is a licensed agent.
It would seem to me, Mr. Speaker, that the Attorney General
might well consider, with the superintendent of insurance,
whether or not companies registered in this province, complying
with the prospectus requirements, having an office in this
province and employees in this province, could somehow or other
by registration be able to carry on the business without using
the services of a licensed agent.
AN HON. MEMBER: Sell property outside.
MR. WILLIAMS: Sell property outside, that's right.
MR. G.S. WALLACE (Oak Bay): Mr. Speaker, we will support the
aims of this bill in principle. I am particularly eager to
support the legislation which will close one of the loopholes
in the present legislation allowing conversion of apartments to
condominiums. This has caused some considerable heartburn in
elderly people in Oak Bay who had chosen to retire to rental
accommodation and have subsequently had to make substantial
upheavals in their later years because of a change they did not
anticipate in the accommodation where they were living. So the
idea that it will not be possible to simply get around the
Strata Titles Act by forming a cooperative is very
welcome.
We also welcome the intent. I am not sure that I understand
all the details — and the Member for West Vancouver–Howe Sound
(Mr. Williams) has raised a very good point. I can only say
that in principle this party would certainly support any
attempts by legislation to prevent people being misled or being
offered something more than what is actually available.
I wonder also if I could ask if the Attorney General would consider to what
degree advertising of these kinds of junkets should perhaps be incorporated
either in this Act or possibly in a better way in another Act. It seems to me
that the biggest danger in misleading people is in the form of the full-page
advertising of these, as he so eloquently described them, various attractions
of California and Arizona — towns developed in the middle of the dessert specifically
for retirement purposes. While it may offer some measure of protection that
the prospectus must meet the legislation and that it must be a regular agent,
I wonder to what degree there is still the danger that misleading advertising
could still result in elderly people becoming involved in this kind of unfortunate
situation.
MR. SPEAKER: The Hon. Attorney General closes the
debate.
HON. MR. MACDONALD: Mr. Speaker, in answer to the points
raised: the suggestion of the second Member for Vancouver
Point-Grey (Mr. Gardom) is a very useful one. Quite out of
order in the discussion of this bill, Mr. Speaker, because it's
not part of the bill, but a very useful suggestion.
Maybe the bill's out of order and his suggestion is in
order. (Laughter.) But it's one that is now imperishably
enshrined in Hansard , which will be available to me tomorrow
afternoon, and one which I intend actively to pursue because I
know that the interest accruing on lawyers' trust funds and
going into the law foundation is a support factor of
considerable importance to such matters as legal libraries and
legal aid. That suggestion will be given very serious
consideration.
In respect to the Member for West Vancouver–Howe Sound (Mr.
Williams) who asks whether or not direct selling of property
outside of the province can proceed in view of the terms of
this bill, all I can say to the Hon. Member is that I'll speak
to a lawyer about that, try to get an opinion on the bill
(laughter) and have something to say, hopefully, by committee
stage.
In answer to the Hon. Member for Oak Bay (Mr. Wallace): It
does appear to me that if a person intends to advertise these
out-of-the-province lots in a Vancouver paper, they've got to
do that through a licensed agency in the province because the
definition of agent is one who in any manner offers property
for sale, I would think that when the papers accept that kind
of advertisement, they've got to accept it from a properly
authorized agent in this province who is therefore responsible
for the misrepresentations which hopefully will not occur.
I move second reading.
Motion approved.
Bill 29 read a second time and referred to Committee of the
Whole House at the next sitting after today.
HON. MR. BARRETT: Second reading of Bill 30, Mr.
Speaker.
[ Page 526 ]
AN ACT TO AMEND
THE DEPARTMENT OF
COMMERCIAL TRANSPORT ACT
HON. R.M. STRACHAN (Minister of Transport and Communications): A simple
bill, Mr. Speaker, it does two things: it abolishes the Department of Commercial
Transport as it has been heretofore organized, and the bill which I introduced
earlier today will, of course, incorporate the functions of the Department of
Commercial Transport as it has operated in the past.
The second thing the bill does is allow the licensing of
transient truck trailers and semi-trailers, and the collecting
of fees from them as they proceed through the Province of
British Columbia. This is being done on a reciprocal basis on
an ever-widening scale with the adjoining states and the
neighbouring provinces.
MR. WILLIAMS: Mr. Speaker, I wonder if the Hon. Minister
when closing the debate on this bill, having raised the matter
of commercial vehicles being used to tow trailers on the
highways, could indicate to what extent his department, under
this legislation, will deal with the circumstances which are
occurring today in this province where so-called house trailers
or mobile homes are being towed on our highways, and those same
mobile homes or house trailers are being used at the same time
to transport freight with the result that the carrying capacity
of those trailers is being grossly exceeded.
Now, the dolly wheels, the trailer facilities used to move
these mobile homes are not controlled, as I understand it, by
regulation; they are often very flimsy in nature and not
capable of supporting the loads they are bearing. We are
encountering on the highways of British Columbia these wide,
long loads, and when breakdowns occur in the trailer facility
then the serious consequences of damage to property and loss of
life and injury is surely going to befall many of our citizens
using our highways. It seems to be a shortcoming in this
particular respect, Mr. Minister.
As I read this bill I am not certain that it is covered in
this particular amendment and I would like to know whether or
not your department might consider bringing this forward for
further amendments later in committee.
MR. N.R. MORRISON (Victoria): I would just like to ask one
question concerning this. The floater plates, I would assume,
are a little like an auto dealer's licence plates. How do we
cover the insurance portion of this which will come in March?
Is that a fair question at this time or should it wait until
the insurance is brought up?
MR. SPEAKER: The Hon. Minister closes the debate.
HON. MR. STRACHAN: First, the last question. The last
question first.
Part of the issuing of the licence will be an insurance
consideration.
With regard to the point raised by the Member for West
Vancouver-Howe Sound (Mr. Williams), I'll certainly check on
the matter of them carrying freight in the mobile homes that
are being transported. I was not aware that they were carrying
freight in them. I agree with him that it is a real problem on
our highways — the control of the transportation of mobile
homes.
In the Province of British Columbia we have a much narrower
limit than that allowed in other provinces, and I am under
continual pressure from people in and out of this province to
expand on that width. I want to say publicly that I have no
intention of allowing any wider trailers on the highways than
the existing 12 feet.
I suggest that if any of you have the opportunity, you
should take a look at the "Stop-Go" film, which is available in
the Department of Commercial Transport. I watched it a few
weeks ago before I went back east to meet with the other
Ministers of motor vehicles.
This is a camera mounted on a truck which takes a picture
every 80 feet. I have watched this camera and the film as it
followed a number of those mobile homes being transported on
the highways of this province; and it scared me silly, let me
tell you. And to think of that being enlarged to 14 feet in
this province…it's just not going to happen as long as I am
the Minister in charge of commercial transportation.
So with that, Mr. Speaker, as I say, it is a fairly simple
piece of legislation. As far as the law is concerned, the full
operation and import of the commercial transport Act is still
in full force and operation. So there is no doubt in my mind
that we have the legislative authority or power to control the
carrying of freight or the overloading of any wheels that may
be used to transport mobile homes in the Province of British
Columbia.
I have made a note of it and I'll check with my Deputy first
thing. With that I move second reading, Mr. Speaker.
Interjection.
MR. SPEAKER: I'm afraid the debate has been closed. If
there's only a word or two you want to say on the subject, you
can only do so by leave of the House.
Leave granted.
[ Page 527 ]
MR. D.M. PHILLIPS (South Peace River): I just wanted to ask
the Minister if he has any comments regarding the pilot cars
used in conveying these mobile homes throughout British
Columbia. At the present time there is nothing in the
Motor-vehicle Act or commercial transport Act to license proper
pilot cars. I feel, Mr. Speaker, that these pilot cars should
be licensed, should be equipped with two-way radios and that we
should set some standards as to the proper lights they
carry.
You can rest assured that the mobile home industry is in its
infancy. There is going to be more and more of it. I would like
the Minister to give some consideration to the licensing of
proper pilot cars and lay out, in black and white, what
equipment they should have on them in regard to light-safety
measures, flares, et cetera in case of an accident, and also to
protect the, pilot car industry in British Columbia, because
at the present time pilot cars can come in from other
provinces.
Maybe you can take that into consideration; maybe the
Minister would take that under consideration, Mr. Speaker, and
give me his comments on it. Thank you for the opportunity
to….
MR. SPEAKER: I think the question can be answered in
committee stage. The motion is that Bill 30 be read a second
time now.
Motion approved.
Bill 30 read a second time and referred to Committee of the
Whole House at the next sitting after today.
HON. MR. BARRETT: Second reading of Bill 44, Mr.
Speaker.
AGRICULTURAL CREDIT ACT
HON. D.D. STUPICH (Minister of Agriculture): This was
described earlier in the session as the second of three of the
most important pieces of legislation coming in to do with
agriculture in this session, a session that was billed as one
that would have very great importance in total for
agriculture.
For a long time now, provincial Ministers of Agriculture across the country
have been urging upon the federal government that there be some new federal-provincial
policy with respect to credit for farmers. For many years the Ministers of Agriculture
across the country have been meeting in conference every second year — moving
across the country. Since 1969, when they met in New Brunswick, they have been
urging that there be some study given to this — urging the federal government
— in considering any new credit programme or in existing credit programmes,
so that they do give some thought to involving the provinces so that the provinces
could come along with it — certainly not without cost — but involving the provinces
in planning the programme, in administering it and financing it.
This was put to the federal government in 1969 — to the
federal Minister of Agriculture. It was put again in 1971,
along with a much larger package of other proposals. It was put
again to the federal Minister of Agriculture at the Minister's
conference at Brudenelle, PEI, in the summer of '73. It was
discussed, certainly, by the B.C. Minister and the Premier at
the Calgary conference of premiers this summer. And it was
discussed again a couple of weeks ago when I travelled to
Ottawa, at the Prime Minister's invitation, to meet with other
Ministers of Agriculture from across the country to discuss
ways and means of helping to develop agriculture and to
increase food production in the country.
There was this unanimous request, at every one of these
meetings, a request supported by all of the Ministers of
Agriculture — and at these meetings all of the Ministers do
make a, point of attending — a request from all of them, a
request that was reflecting the need that existed in their own
provinces in spite of the many programmes that are offered by
the different provinces.
During the time between the spring and fall sessions of
1973, when the Select Standing Committee on Agriculture
travelled the province and, I think, under the term of reference
that dealt specifically with the problems of developing
agriculture in the Peace River, this question of credit for
farmers came up. It came up not only in the Peace River, but
came up wherever they met farmers everywhere in the
province.
There are credit systems of one kind and another available
to farmers. But there are so many different ones; the costs
vary from one plan to another; the items for which the
different programmes may be used vary from one plan to another.
There is a great deal of confusion — different costs, different
programmes, And in every instance — at least, every instance
when I heard the subject discussed — farmers would talk about
credit plans that are available in other provinces.
They never really seemed to know the details. They never
really knew the interest rate, except that they knew it was
low. They knew it was long term but they didn't know how long
term it was, and they didn't know to what use the various plans
could be put, But they did know that they were very
encompassing, wide-ranging, that the cost was low and the terms
were easy.
In other words, the far pastures looked greener when it came
to credit for farmers in the Province of British Columbia.
As far as the federal government was concerned,
[ Page 528 ]
from 1969 until 1973, there just seemed to be no recognition
of this need — certainly no response that was transmitted to
the provincial Ministers of Agriculture.
In the Calgary conference this summer the federal paper on
agriculture did recognize the need for some rationalization of
the various forms of credit available. Having recognized that
need in the paper, they then chose to ignore the need
completely by advancing not one single proposal, not one
programme of any kind, other than to say that there was some
consideration being given to changing the Farm Credit programme
so that it would be of particular assistance to young people
trying to get established in farming for the first time. But
there were no details of any kind.
At the conference in Ottawa a few weeks ago further
discussion of this was led by myself, again with no response
initially from the federal Minister of Agriculture — at least
until the third time of asking, I believe it was, at which time
we were all assured that the federal government is going to do
something about this: that it is going to be in the form of
changes to the Farm Credit Corporation lending programme; that
the amendments to the legislation for that corporation are
currently being prepared and that the provincial Ministers will
be made aware of the amendments before they are actually tabled
in the House, but with no information as to whether or not
there would be any provincial involvement in planning, in
administering, or financial involvement in the lending
programme itself, There was absolutely no indication as to what sort of
changes are being considered other than to say that there will
be changes, and a hint that the changes would be very important
for the agricultural industry.
B.C. has lagged very much behind the other provinces in
providing credit for farmers. The Select Standing Committee on
Agriculture, as I say, found this wherever they went. They kept
hearing about the better plans that are available in other
provinces.
The committee was made aware of the lending programmes in so
far as the departments had these. The Department of
Agriculture got information from all of the provinces as to
just what sort of lending programmes were available in the
different provinces. Some of them are very good, and some of
them not nearly as complete as, for example, the Province of
Manitoba, which went further than any other province in coming
up with a comprehensive lending programme to assist the farmers
in the agricultural industry.
One feature of the Alberta plan, while it didn't go as far as the Manitoba
plan in many areas, seemed to be different in that, as well as for strictly
agricultural pursuits it would lend money to improve the farm home, which of
course is very closely linked to agriculture. But in some of the plans lending
for that purpose would not be permitted.
As far as the interest is concerned, in spite of the stories
that we heard from the farmers as to how good the interest
rates were, in checking with the provinces concerned we found
out that the rate varied. In some cases the plans called for
interest rates of from 7 to 9 per cent; in other plans,
interest rates of 1 per cent above prime.
The Saskatchewan plan, a bit different again, is not as good
as the Manitoba plan from the point of view of the farmer, but
the Saskatchewan plan was deliberately designed to assist new
farmers. It was not meant to be one that would be available to
everybody farming in the community. They called it a farm-start
programme, and it was directed to assisting people wanting to
get established in the farming industry.
The Manitoba plan, as I said, is the best of all. I think in
only one area would our own Select Standing Committee on
Agriculture have found any question with respect to the
Manitoba plan, and that is that it limited the amount of loan
available. As I recall the report of the select standing
committee, they didn't propose that there be any specific
limit.
Ontario has several plans, each one of them geared to a
particular purpose, but in total, not presenting a complete
picture.
Nova Scotia, again, loans for specific purposes; Prince
Edward Island also, loans for specific purposes.
In B.C., farmers have had some access to credit for farming
purposes. There are the usual sorts of programmes that have
been available in all the other provinces, for example, Farm
Credit Corporation, which lends at rates that vary from time to
time. The rate is currently running at 7 per cent, which is a
very good rate compared to other forms of credit; the age
limit, limited to 45 years; loan maximum.
And then there are federal programmes all across the
country: the Farm Syndicate Credit Act , farm improvement loans,
the Veterans Land Act , and the small farm development
programme; all of these available in all other provinces.
As far as our own provincial government is concerned, the
only plan of direct lending or even of guaranteeing that has
been available up to this point, the only plan directed to
agriculture was formerly the Farmers' Land-clearing Assistance
Act , currently the Agricultural Land Development Act .
That has been the programme, a programme better in some ways
than any other plan in the country, in that it did provide
money at 4 per cent — and to the best of my knowledge there
isn't a single plan anywhere else in the country that does
provide 4 per cent money — but one that was limited as to its
use. The use was extended by this Legislature in the spring
session, but nevertheless, still limited; and the amount that
may be borrowed under this plan, again, limited to a maximum of
$15,000.
[ Page 529 ]
Recognizing the fact that B.C. has been behind the rest of
the country; recognizing the fact that we do feel now that
agriculture should be much more important in the eyes of
government, in the eyes of our total community than it has been
in the past; recognizing that we have fallen far behind in
producing food that we need for our own consumption, let alone
those areas of export where we could possibly contemplate
producing food for export; recognizing all of these
deficiencies, the Select Standing Committee on Agriculture was
asked to do this study, particularly with respect to the Peace
River where they came up with this programme. Certainly the
work of the standing committee, in identifying the need and in
making suggestions as to how the plan should be drawn up, was
invaluable.
The legislation before you I think goes further than that of
any other Canadian province. It also provides for the
possibility that the federal government, in presenting its
legislation, will be prepared to cooperate with the provinces.
We don't know what they're going to do, as I said earlier. We
have no idea at this point. But we hope that they will
recognize the need and recognize the importance of cooperating
so that there will not be duplication of effort, so there will
not be competition. For that reason we do include in the
legislation the provision for adjusting our proposals to meet
whatever requirements the federal government may have.
Beyond that, a credit programme; regulations still to be
regulation in the same way that they are under the Agricultural
Land Development Act , and yet legislation that I believe will
be more important to the farming industry in this province than
any other single piece of legislation in this session or for
many sessions in the past — and perhaps even into the
future.
A need that was expressed more often by farmers in the
community coming before the select standing committee, more
often by farmers writing to me and by their representatives in
making submissions to me is the need for some more rational way
of handling this question of farm credit. With that in mind,
believing that we have introduced very forward thinking with
this particular bill before us now, Mr. Speaker, I move second
reading of Bill 44.
MR. PHILLIPS: I want first of all to commend the Minister of
Agriculture for bringing in this bill. I want to say, Mr.
Speaker, that I'm certainly glad he took the suggestions that I
made in the House last January when I outlined our agricultural
policy.
HON. W.L. HARTLEY (Minister of Public Works): That's more
than the previous government did.
MR. PHILLIPS: I certainly am in favour of this legislation.
As the Minister said, everywhere the agricultural committee
went in the province last year, this seemed to be one of the
problems. Of course as you know, Mr. Speaker, and as I know,
and as the whole House knows, this problem became much more
severe throughout the province after Bill 42 became law,
because the farmers could no longer term their agricultural
land as an asset, because it was denied and bank managers
throughout the province….
So as you bring in one piece of legislation, which the
government has done, it creates a situation; then you have to
bring in another piece of legislation which tries to solve the
problem.
But let me tell you, Mr. Speaker, we laid down in the
recommendations from the committee certain rules and
regulations that we would love to have seen in the bill itself
with regard to eligibility. And I want to say to the Minister
of Agriculture that this bill will only work if a great deal of
thought goes into the eligibility of those who are going to be
able to borrow the money through this bill, and also in the
terms on which the money is loaned to the farmers, or
prospective farmers.
The bill itself, insofar as the applications, is laid out
practically word for word with the recommendations of the
agricultural committee. In essence there is really nothing that
a farmer can't borrow money for as laid out in the bill, and
this is good. It certainly gives the Minister lots of range in
promoting the agricultural industry within the province.
The eligibility of those who are going to be able to borrow
the money is all-important. The terms of repayment are going to
be all-important, because if the terms are so stringent that
the farmer is not able to make his payments or is not able to
use the money for what he borrowed it for, there should perhaps
be in the regulations a period of maybe three to four years
where no payments in many cases have to be made.
It is also going to be all-important whom you loan the money
to, because we still haven't got a definition of a farmer,
other than the federal government one where a certain amount of
money is derived from the farm. There are many would-be farmers
and many professional people who are dabbling in farming, sort
of hobby farmers, who have the desire to go into full-time
farming, and I don't think we should forget about these people.
I think they should be taken into consideration.
And of course thirdly, Mr. Speaker, and probably most
important, will be the interest, rate which is going to be
charged the farmers. I know the regulations where the Minister
has the power to make certain adjustments on repayments and on
principal, but the interest rate is going to be — probably it
should have been the first one.
[ Page
530 ]
Now under the ALDA plan money can be borrowed at 4 per cent
for a specific purpose. I'm wondering, Mr. Speaker, will this
bill supercede the ALDA bill? Will it opt it out? Are we going
to have people on farms borrowing money at 4 per cent for
specific purposes and then going on to other purposes such as
building buildings and so forth which may be just as important?
Mr. Speaker, shouldn't the interest rate be the same?
I'm not suggesting for a moment that we will maybe have to
increase the ALDA rate, but I'm just wondering about the
equability of the whole thing. I would like to see this and I
know the Minister would like to see this at the 4 per cent
rate. I'm sure his problem would be with the Minister of
Finance. I think, Mr. Speaker, that there would be nothing
wrong with this.
It has been said in this House before and will be said in
this House again, that this is a way the rest of the people of
British Columbia — the consumers, the labourers and everybody
who has increased their status and their return on investment
and so forth during the past several years — could help out the
agricultural community and in an indirect way subsidize
agriculture in this province.
So with those comments and those suggestions to the
Minister, those warnings about eligibility terms and interest
rate, I would like to say that we're certainly going to support
the bill.
MR. WILLIAMS: Mr. Speaker, we too will support this bill.
The Minister in opening the debate indicated the reaction which
was received by the Select Standing Committee on Agriculture as
it toured the province this year and he was right on. There was
no question, as we went about this province, that the one major
problem facing all people engaged in agriculture — and it
doesn't matter in what sphere — was the availability of
necessary capital in order to enable them to carry on the
business as it then was and to improve the kind of business
that they were doing or hoped to do.
It's true, as well, that while farmers were aware that
credit programmes were available in other jurisdictions, they
never seemed to know what the terms of the legislation were,
they never knew what the interest rates were, they never knew
what the eligibility provisions were.
Mr. Speaker, I find it shocking that the Minister would
bring in yet another bill where the farmers in the Province of
British Columbia still don't know what credit is going to be
available to them. They still don't know under the proposals in
this legislation how much they can borrow, who will be able to
borrow the money, how they \will have to repay it, and what the
interest rate will be.
Like the Farm Income Assurance Ac t, this bill has been conceived in haste and
I'm sure it will be born in agony. The trouble is that it will be the agony
of the agricultural community again which is to be experienced.
All the Minister is telling the farmers in the Province of
British Columbia with respect to this bill is: we recognize a
need for a lending programme; we recognize that there are some
purposes for which credit should be advanced. One of these days
we're going to get around to telling you how you can borrow,
how much you can borrow, how much you have to pay by way of
interest, et cetera, et cetera, et cetera.
Mr. Speaker, I don't know why, when we are as concerned as
we say we are about the economic plight of the farmer in
British Columbia, when we're talking about improving his income
position, when we recognize that year after year after year
farmers have had to borrow money at high interest rates, pay
those moneys back out of shrinking incomes, another year older
and deeper in debt — that's the farmers' lot — why, when we
recognize this, the government doesn't stop pussyfooting around
and make the hard decisions, if they are hard decisions, that
must be made.
State the interest rate. If it's going to be 4.5 per cent or
5 per cent or 1 per cent less than the farm credit rate — whatever the case may be — why not let the farmer know?
Mr. Speaker, it's all going to be done by regulation. Again,
once again, the cabinet is going to decide. Well, Mr. Speaker,
the Minister of Finance (Hon. Mr. Barrett) and the Treasury
Board and the cabinet of this government had to make a decision
before they permitted the Minister to bring this bill before
the House. Why, when making that decision, didn't they say,
"Okay, let's say what the interest rate is going to be. Let's
specify who will be eligible in the sense of the income level
that a person who applies for the loan might have before
receiving the loan." Why leave it all to regulation?
Mr. Speaker, the Minister and his department must make the
determination at some time; why not now? What's the advantage
of waiting? Nothing that the Minister said in opening the
debate indicated that there was any problem about making the
decision. He hasn't indicated there was a problem. Then why not
go ahead and do it? If it's a subsidy, as the Hon. Member for
South Peace River (Mr. Phillips) says, let the government face
up to it. Let there be a subsidy with respect to lending to
farmers.
The Minister also indicated that one of the outstanding
features of similar legislation in the Province of Alberta was
that moneys could be borrowed by a farmer for the acquisition
or improvements to the family farm home. Is it in this
legislation? If it's not, why isn't it? You can purchase and
improve farm buildings. I don't know whether a farm home
qualifies as a farm building or not, but,
[ Page 531 ]
Mr. Speaker, why leave it in doubt? Is there any reason that
the farmer and his family should live in any poorer
surroundings than the people in the urban centres? —They can
borrow money to improve their homes; why not the farmer?
The farm home is as important to the operation of the farm
as is any other building. Why should we lend money to house the
cows but not to house the farmer's family? I can assure you,
Mr. Speaker, that one thing I learned as we toured the province
this year with the agricultural committee was that the farmer's
wife and the farmer's family were every bit as productive as
the cows and as necessary for the successful economic operation
as were the cows or any other livestock there might be on the
farm.
I know that the Hon. Minister of Public Works (Hon. Mr.
Hartley), coming from the constituency that he does, would not
disagree with that statement.
Mr. Speaker, I don't know why we have to leave all these
things to regulation. They can always be changed. Regulations
can always be used to expand any of the necessary powers of the
Minister or the cabinet to make sure that such a credit
programme is successfully carried out.
But why, Mr. Speaker, when the farmers of British Columbia
write to their Members, as is happening right today, why when
we receive letters saying: "We understand there is going to be
a farm credit programme. We'd like to be able to apply. How
much can be borrow? What will the interest rates be?" Why can't
we tell them?
Why do we have to write back and say: "the government has
got a good idea but we're going to have to wait until some
decision is made behind the cabinet doors as to whether or not
this loan programme is going to be one which will be available
to you or not."
You know, this is the government which always talked about
sunshine, and so on. Let it shine in. It just doesn't happen.
It just doesn't happen. A little foggy.
When you look at the regulatory powers that are given to the
cabinet, Mr. Speaker, they are in a position again, as was the
case with the Farm Income Assurance Act , to make distinctions
subject to which a farm operator may apply for credit. What can
be more vague than that? They can prescribe terms and
conditions. It's as wide as the world, the things they can
do.
No matter what the Minister says about their intentions,
nonetheless the power is always there for the cabinet to make
deal, Mr. Speaker, that the farming community in British
Columbia is entitled to.
Mr. Speaker, when the farmer embarks on the beginning of the agricultural year,
when he sows his crop, when he breeds his cows, whatever activity starts off
He engages in his business forthrightly. Why, when we're dealing with farm credit,
can't this government do the same?
MR. WALLACE: Mr. Speaker, this bill places me in the same
position as the former speaker for West Vancouver–Howe Sound
and in the same position I took in speaking against the Farm
Income Assurance Act . I want to try to be consistent, which I
may say, in politics, is just about the hardest part.
Nevertheless, Mr. Speaker — and I don't wish to sound
philosophical — it really does surprise me, not just in
relation to this Minister's bills but in relation to, it seems,
almost all bills, that so often the legislation, which will
involve expenditures of large sums of money, is expressed in
what I would say is merely a form of good intent. It's like
saying you are in favour of the farmer.
We think that he should have an assured minimum income and
that he should be assured of credit, but beyond that the
government is not prepared to go in black and white in the
bill. As the former Member for West Vancouver–Howe Sound has
said so eloquently on many occasions, that's all very well, but
we're here to debate something more than good intentions. After
all's said and done, if I can draw an analogy….
Interjection.
MR. WALLACE: Yes, the road to hell is paved with good
intentions.
I could make the analogy, Mr. Speaker, regarding the budget
speech. For example, when the government says it will raise or
lower taxes, or rather it will raise or reduce revenue, it
spells out in the budget and in the debate which follows how
that money will be raised, or how it will be spent. I just fail
to see why that very sensible, reasonable approach in the
budget speech itself should not be followed, at least to a
degree, in bills of this nature where, indeed, taxpayers' money
will be spent, admittedly not by the Minister of Finance (Hon.
Mr. Barrett) but certainly by, in this case, the Minister of
Agriculture (Hon. Mr. Stupich).
I will say, Mr. Speaker, that on one point I have to be fair
and say that the Minister, in this bill at least has said that
the fund will not exceed $5 million. One of my main criticisms,
and this is where I am trying to be consistent, Mr. Minister,
through you, Mr. Speaker, is that the Farm Income Assurance Act
just left the whole ballpark wide open. It could be $1, $10,
$100 or $1 billion, but at least in this bill the Minister is
learning a little bit.
I don't know whether this was put in as a sop to
[ Page 532 ]
the opposition or not, or perhaps the Minister was just
going a little way to try to weaken my argument, but apart from
section 3, which does state that $5 million will be the limit
of the moneys loaned, there is nothing else in the bill which
gives any kind of detail. I have to turn again to the same
criticism I offered on the Farm Income Assurance Act that the
Minister issues a press release giving all kinds of detail, Mr.
Speaker, which is not in the bill. Now, why should I, as an MLA
representing a riding in the province, sit and study the bill
and learn very little, and then read the Province of October 5
where Mr. Stupich told a news conference that $5 million would
be set aside and that the maximum limit for any borrower would
be $100,000?
Interjection.
MR. WALLACE: We are often told that we can't believe
everything we read in the press, and I guess you have just
proved that point. But seriously, Mr. Speaker, I don't like
getting press releases giving information which could quite
reasonably be included in the bill. I think, as I said earlier
in the other debate on the first farm bill, that one of the
most responsible jobs we have, in my view at least, is to make
sure that the taxpayers' dollar is spent wisely. For example,
the bill suggests that we hope the federal government will help
to share the losses and high-risk ventures which, right off the
bat, implies that this farm credit Act is going to be lending
money on some pretty slender pretext in which the risk of
losing the loan is considerable. I'm not, in effect,
criticizing that. It may be that some of these risks are well
worth taking, but the point is that we are loaning taxpayers'
money, and I see no reason why, if we are able to embark on
that philosophy with the good intention of helping the farmer,
we on the opposition side should not have more specific details
of the sums of money involved, the maximum available, the
interest rate. Again, to echo the Member for West
Vancouver-Howe Sound, surely you should be able to put in the
bill that it will be 1 per cent, 0.5 per cent, 2 per cent or
what-have-you less than the prime lending rate.
It is all very well to talk about other forms of credit
being available but, as I also mentioned in an earlier debate,
prime loans at the bank are 10.75 per cent and I don't think
that too many farmers can borrow $50,000 or $100,000 at 10.75
per cent. So my
interpretation of this bill is that it will
make credit easier for the farmer to obtain at a lower interest
rate than presently exists.
Perhaps the Minister, in closing the debate, would mention if this is indeed
the basic principle behind the bill, which it seems to me it is. If that is
the case, why cannot we have specific details spelled out to say how much the
farmer can borrow, what the maximum will be, and what interest rate would be
applied to that loan?
I also would have to say with regard to this whole business
under sections of each of these bills entitled "regulations,
" you might almost just put it in one sentence and say
this gives the Minister the power to do anything he wants to
do. They just add up to the same thing. All you've done is
break it into four sections: (a), (b), (c), (d), (e), (
f) and
(g). But if you add (
a) to (
g) together, it really just says in
great big letters that the Minister may do what he chooses to
do in providing farm credit.
I know we keep repeating this like a worn-out gramophone
record, but I just think that maybe, Mr. Speaker, if we keep
chip, chip, chipping away, one day we may get some legislation
into this House where we will get some meat to chew upon
instead of having to repeat like a parrot, time after time
after time, the fact that this legislation is not responsible
legislation. It is simply an outline of good intention. I'm
even getting fed up hearing myself say it over and over again,
so I'll sit down.
MR. C.S. GABELMANN (North Vancouver–Seymour): I just want to
make a few brief comments. Before I do that I want to suggest
to the Member for West Vancouver–Howe Sound (Mr. Williams) that
if he is so much in favour of having fixed interest rates set
into legislation, I wish he would send that message down to his
colleagues in Ottawa and have them do something about some of
the mortgage rates to deal with housing, because we are, in
that sense, subject to the vagaries of the marketplace. For
many citizens in his riding and mine and throughout Canada that
is as major a problem as interest rates for farmers is.
Mr. Speaker, I just want briefly to mention a couple of
things. I don't represent any farmers directly in my
constituency, but I have grown up on an orchard in the
Okanagan. My parents are in the farming business, and my
brother has just recently in the last couple of years purchased
a small farm at an incredibly high cost — and this,
incidentally, was prior to the Bill 42 legislation. Even though
it is an orchard that requires his full attendance in terms of
a full work year, he's forced, because of the credit situation,
to work out at least four, five or six months of the year in
another job in order to make enough money each year to pay back
the loan that he has been forced to take out in order to
purchase this orchard.
I realize I'm speaking in a fairly limited way because I'm
not familiar with the problems in the Peace River and I'm not
particularly familiar with the large cattle operations that do
exist in the province. I'm actually much more familiar with the
small orchard situation. But when we talked about loans that
are being used in terms of working capital for
[ Page
533 ]
one year, that's a very important feature. The Member for
West Vancouver talked about the annual picture. Mr. Speaker,
there is also a picture that exists for a period of 5, 6, and
sometimes for 10 years, This is particularly true in orcharding
and I presume it is true in the cattle business, where your
production doesn't come to fruition in the first year.
Mr. Speaker, I hope that the legislation will allow loans to
be payable starting not the following year or at some fixed
period of time but rather tied to the return on the investment
itself. In other words, if money is spent to plant trees, that
money will then be paid back on the basis of when those trees
are in production. That is, I think, a very important
principle.
For too long farmers have had to go to the bank at the
beginning of the year for their annual operating costs, and
have, in effect, suffered a 6, 8 or 10 per cent reduction in
income for that year because of the interest charges on their
principle. That, Mr. Speaker, leads me to want to rise in this
debate because I feel that this bill, even though it is being
debated in a rather muted fashion and hasn't received a great
deal of publicity like some other pieces of legislation, is
really, in a sense, breaking new ground.
We can go, from this bill, with the attitude and the idea
and the policy that this is not setting up a bank, it is not
setting up another CMHC situation, but rather that it is, in
fact, a form of subsidization to farmers in British
Columbia.
I would hope, Mr. Speaker, that the interest rates would be
set at a very low figure. I would hope that it could be less
than 3 or 4 per cent, or in that neighbourhood at least,
because to do otherwise is to make the money almost
meaningless. I would hope that money is available, as I
suggested earlier, not only for the annual working capital
requirements, not only for all the items that are listed in
section 2, but also for the problem of revenue being delayed
for 5 or 10 years in some cases.
Now, Mr. Speaker, I won't say more than that, other than to
say that I just want to re-emphasize the point that I hope that
we don't treat this fund as a loan fund in the traditional
banking sense, but rather that we treat it philosophically as a
form of subsidization to farmers in British Columbia. Thank
you.
MR. D.E. SMITH (North Peace River): I certainly couldn't let
this bill go through the House without making a few comments
concerning the agricultural industry in the Province of British
Columbia.
I agree with many of the remarks of the previous speakers that the type of
legislation that we have before us today is something that is overdue in the
Province of British Columbia. Perhaps that has been a result of the fact that
the farming community in the province does not represent a large percentage
of the population. Whatever the reason might be, we have needed this type of
legislation, for those people who wish to remain farmers, for some time.
I'm concerned that this bill requires another stage, which
will not be before us. It requires the regulations to be read
with the bill before we can actually visualize what the
Minister has in mind, if indeed he has a master plan in front
of him at the present time.
Certainly the farmers will, on the surface, greet the bill
with great acceptance because this is the type of legislation
that they've asked for. But they would like to know, I think,
at the same time, who will be considered a farmer. I think they
would like to know if the terms of credit will be available and
extended to young, new people coming into the farming
business.
It seems that the bill also includes phrases that have run
through many pieces of similar legislation since the NDP has
taken office — phrases such as, "the bill and the regulations," and "prescribing powers and duties of the Minister, a
corporation, branch, or agency established under clause (e), or
any other person, respecting farm credit," and so
on.
In other words, is it the intent of the Minister, when
setting up the regulations, to set up another Crown corporation
in the Province of British Columbia? Is it the intent of the
legislation for the government to go directly into the business
of farming in the Province of British Columbia?
[Mr. Dent in the chair.]
It would seem that this type of phrase is included in almost
every piece of legislation in which the government will be
either advancing money on a loan or making grants and, in my
opinion, it's the type of phrase that is too often included in
the legislation before us this year and in the past
session.
If the interest rate cannot be spelled out in the bill, at
least there should be an indication there of what the Minister
intends. Certainly, if you take the prime rate as expressed by
the chartered banks in Canada today as the interest rate, then
most farmers would be ill-advised to use the credit available
under this bill because of the simple fact that they cannot pay
8, 9 or 10 per cent interest on borrowed money at the return
that they have received in the past from the products that they
produce.
If people generally who are not farmers expect to have some
stability in the marketplace with regard to the purchase of
farm products, then I think that those same people must of
necessity allow the Minister of Agriculture to subsidize the
interest rate that will be charged to farmers borrowing money
through this Act. Certainly that subsidy will come out of the
collective revenue of the province and each and every taxpayer,
of course, would help to
[ Page 534 ]
subsidize that interest rate.
In my estimation, that is a fair way for people, who expect
to buy eggs, cheese, butter, milk, dairy products, or whatever
at a less-than-market-value price today, to participate in the
farming process that makes it possible for these products to be
delivered to the market.
I would hope that when this bill becomes operative you will
have at your disposal and in the Department of Agriculture
people who will have some expertise in giving advice to farmers
concerning their credit problems. Certainly, if we look at the
record of the IDB, we have cause for apprehension, because it
has been my experience that quite often the people who work for
IDB and were responsible for granting or refusing the loans did
not always exercise prudent judgment.
Quite often they approved loans to business enterprises at
interest rates that the enterprise could not afford to pay. As
a result they walked individuals or small companies into
financial distress and bankruptcy.
I would hope that not only will the bill provide financial
assistance at a reasonable interest rate for farmers, but that
it will give them advice on the matter of whether it is really
a good idea at that particular time to borrow money or not.
This can be done if you take a look at the return on farming
and project that into the future on the basis of at least a
slowly-escalating price for farm products.
Certainly the picture in farming today is brighter than it
has been for some time, but it will only remain bright if the
farmer is reimbursed in a manner that is comparable to people
working in every type of industry in the province. Too long
we've expected cheap food products, and we've expected the
farmer to work long hours — only to give him a very poor return
when he counted the profit and loss at the end of the year.
We support the concept of establishing an agency to provide
credit to farmers engaged In agriculture. I'm unhappy that the
bill does not fill out in more detail what you intend to do,
and that it is the intention of the Minister to prescribe that
by regulation.
I would hope that the Minister will move with great speed to
bring those regulations into the public eye so that the farmers
will know what you have in mind, how they'll go about
qualifying for a loan, the interest rates that they will pay
and the terms of repayment.
MR. LIDEN: Mr. Speaker, I rise in support of the bill. It's the kind
of bill that lets some sunshine into the farm community, in my view. It's surprising
to hear some of the people talking about setting the interest rates in the bill
when some of their colleagues have allowed bank interest rates to rise to unbelievable
levels in this country and have really done nothing about it.
HON. MEMBER: Hear, hear!
MR. LIDEN: We've got a great many problems in the farming
community. One of the biggest problems, in my view, is that
young farmers find it so difficult to get farm property and get
on the land. Certainly in the areas that are nearest the urban
centres this is more pressing than anywhere else, because here
we have all the pressures of land sales from people who are
involved in other things than farming.
Recently in Delta there was a farm of some 130 acres that
was for sale. Young farmers wanted to buy it but couldn't
establish the credit and couldn't face the interest rates even
if they were able to establish the credit, We have many young
farmers who really want to continue farming. They work with
their parents on their farms until they reach adulthood, but
then they find there isn't sufficient work for the family on
that farm any longer.
I just want to tell you what happened to that farm in Delta.
That farm, while it was 130 acres, was actually a number of
parcels — an 80-acre parcel, another parcel of 12 acres and
another parcel of 30-odd acres. Because the young farmers who
would have liked to have bought the farm were unable to raise
the money, that farm was actually sold to the hobby farmers and
the people who really don't have any difficulty in raising the
money.
AN HON. MEMBER: Speculators.
MR. LIDEN: So it is questionable now as to whether it will
really be a producing farm and something that remains in the
real agriculture community.
That's not the only kind of problem we have. I'm not sure
whether this bill will solve the other kind of problem, but
perhaps because it does leave some discretion to the Minister
it may be that we can handle some of these things.
There are many farmers now who are on short-term leases on
farm lands in the Delta area which are owned by various
development companies that have no intention of farming, and we
find that it is very, very difficult for the farmer to really
get the farm into production.
There is one case where the farm is owned by Western Realty.
It's leased by a farmer who has a one-year lease; he can't seem
to get a better lease than that. He lost the barn in a fire not
long ago, and he just can't raise the dough in order to build
another barn. He gets no cooperation from the realty company
that owns it. If some credit is available for those sorts of
situations then we may once again have that farm in a good
producing position and be part of
[ Page 535 ]
a real agriculture community.
In addition to that, certainly in our area, there is a great
cost in buying equipment due to the change of farming methods
and the mechanization that is taking place. The cost of
equipment is now fantastic. Certainly credits are needed for
that sort of thing, and I see that being available in this
bill.
I think that this is the kind of legislation that must go
with the Land Commission Act that was passed last spring, and
it's the kind of thing that is really going to keep farmland in
the agricultural community. There's no question in my mind that
the farmers that I've spoken to in Delta are very much in
support of this kind of legislation, and I am pleased to be
able to stand here and speak for them and say that we support
this bill.
MR. D.T. KELLY (Omineca): I was fortunate enough this summer
to have been one of the members of the agriculture committee
and was able to tour the province. I saw the chaotic situation
that exists in this province today as far as the plight of
farmers is concerned, pertaining to their industry.
When I see this bill I am very pleased, of course, for some
of the things that are going to come out of it. You know, Mr.
Speaker, that I come from a constituency that is in the
frontier of the farming industry today, There are a
considerable number of farms being created and being actually
wrestled right out of the wild forest today. I want to tell the
Minister that in trying to develop a farm in the raw state of
land that we have in that area today it takes several years to
make farmland from the forest to the operating farm. In fact,
there are a considerable number of farmers and ranchers today
who are sort of at the halfway mark. They have spent three or
four years clearing several hundreds of acres of land, trying
to get their buildings raised — their barns and their homes — to get a herd of stock. In many cases they are going through
extreme hardships in getting these things done.
When you look at the
interpretation of a farmer in the Act,
for this farmer to be eligible for funds, especially for
clearing of land, he should have already a certain amount of
income — I think in one instance it's $1,600 from that farm.
These farmers sometimes have to wait three or four or five
years before they have any amount of income at all. When the
regulations are designed surely this must be considered,
especially in the northern sections of this province where
these people have to really go through a long period of time
before they do have enough income to qualify as a bona fide
farm operator.
I would imagine that there is no other riding in the province that has as much
available farmland that will be developed into farms in the very near future.
Driving along Highway 16 from Prince George through my riding going west, only
in the last five or six years people don't recognize the countryside because
of the number of farms that are being developed and the amount of land being
cleared.
It is an extreme hardship to some of these farmers trying to
get their farms developed, and I think the department should
consider this when they make the regulation or policy
pertaining to who a farm operator is. I think that if it takes
four years to get a farm going, then these people should have
funding for that period of time.
Section 2(2) of the bill gives the conditions that the money
should be lent for. I do have many examples in the riding where
farmers lack hydro power. When you go into a comparatively new
country you might see one farm and then drive several miles
before you see another farm. Naturally it's hard for these
people to get the hydro in because of the shortage of numbers
of people going to use that power. I think that if a farmer is
a mile off the highway he should be able to get hydro. If he is
developing his farm he needs all his going capital to put the
electrical installations in his buildings — his pump house
because just about everybody in that country has to pump water
and his accommodation. Yet in the regulations there is no
provision for hydro-electric. I know that B.C. Hydro does have
certain qualifications for people to obtain power, but if you
were a farmer and you were a mile off the main highway where
there was an existing power line, it would cost you minimum of
$4,000 to put that line in, and then you would have to pay a
considerable amount per month to have them hook you up to that
power line. So I feel that the department itself should really
look at this, because hydro-electric is a very important
facility on a farm.
With these remarks, Mr. Speaker, I support the bill and I am
certainly looking forward to it. Thank you very much.
MR. SPEAKER: The Hon. Minister of Agriculture closes the
debate.
HON. MR. STUPICH: Mr. Speaker, most of the discussion has
been about material that we propose to include in the
regulations, and the concern seems to be expressed that this
material is not available in the actual legislation itself.
I agree with the Hon. Member for South Peace River (Mr.
Phillips) that the legislation will be important only if the
eligibility and terms are set out in the regulations in a way
that makes the bill important. Certainly the experience with
ALDA would back up that appraisal. The experience there has
been very good. The drawdown on that money this year has been
very large because the eligibility was improved. It was
extended to include those who are just part-time farmers, as
opposed to the previous criteria where you had to be getting, I
believe the
[ Page 536 ]
wording was: a significant amount of your income from
agriculture. Now it's a limit of $1,600.
I have indicated the thinking of the Lieutenant-Governor-in-
Council at the time that was changed: in this particular day
and age, it's in the interests of the community as a whole to
extend ALDA so that it would be available to these people. That
situation might exist one day, one week, one month, one year,
but something might happen that would persuade the
Lieutenant-Governor-in-Council that this need not always be so,
or that it might be appropriate in one part of the province and
not appropriate in another, or the use to which it is going to
be made might be appropriate in one part and not appropriate in
another. These are the sort of things we feel can best be
handled by regulation.
Those who were drafting the original B.C. land-clearing and
drainage Act, I am sure, felt the same way. By allowing this
sort of flexibility, if I may use that word, the government of
the day can adjust its programme to suit the needs not only of
the farming community but also of the community as a whole at
the time the regulations are being considered for change.
The definition of a farmer is lacking in this legislation.
As I say, it changed in the ALDA regulations; it may change
again. There are no immediate plans to change it. It is subject
to change, depending on the needs of the day.
The interest rate, of course, is very important. An interest
rate raises some complications. I am not saying this is why it
isn't in the legislation. Again, we chose to leave out interest
rate because there might be some particular reason for changing
it from time to time or for having different rates.
MR. PHILLIPS: Prime changes.
HON. MR. STUPICH: If we related it to prime, that would be
useless. Some of the Members speaking on it have made that
point. It would be useless to the farming community. People
talk about getting money at prime rate. Farmers don't get money
at prime rate; they get it at so many points above prime rate.
So to relate it in any way at all to prime rate would not tell
the farmer from one day to the next just what he would be
paying in the way of an interest rate.
We would want, by regulation, to say specifically what the
rate is. It might be a rate that would change for long, medium
or short-term loans, or for specific purposes. It might be
different because this is a much-expanded programme over that
currently offered by ALDA. This brings me to the next question
raised by the Hon. Member for South Peace River (Mr. Phillips);
that is, what will happen to ALDA ( Agricultural Land
Development Act ) with this new programme?
There are no plans at this time to do away with
ALDA. It is a specific programme with a very low rate of
interest, not that the new programme will have a high rate. It
is a specific rate right now of 4 per cent, it's for specific
purposes, and it has a maximum of $15,000. It may well be, in
keeping with what I said in first speaking on this Bill, that
to rationalize the programme we might eventually do away with
ALDA. At the present time there is no thinking of doing that
but we may find that ALDA will not be used because the new
programme will be so much more flexible, will allow for so many
more possibilities and will not have the same maximum.
The Hon. Member for West Vancouver–Howe Sound (Mr. Williams)
raised the question that the criteria should be in legislation.
I have tried to say why we prefer to have them in regulation.
The farmers still don't know if it is good or not, that's true.
They won't know until they see the regulations whether or not
it applies to their own particular circumstance or to the needs
of their commodity group or to the needs of the whole farming
community. They won't know until they see the regulations.
On the other hand, they certainly know they are not bound to
come to the government for this assistance in any way at all.
If there's any way that a farmer, either privately or through
any of the recognized lending institutions, can get any better
deal, of course, he can go that route. I think it will not be
possible. I think it's clearly in line with the government's
present intention that this will be the best form of credit
available for farmers. If, because regulations are set and
regulations are not changed, or if, because of peculiar
circumstances, a farmer can get a better deal somewhere else,
then he is certainly welcome to go that route.
Should the rate relate to prime — and I believe the Hon.
Member for West Vancouver–Howe Sound (Mr. Williams) said for
example,: it might be 7 per cent — 7 per cent might be
considered in some areas to be a subsidy for farmers. It's not
too long ago that 7 per cent would have been considered an
unjust impost. You have to be able to move the rate.
Perhaps, with the Legislature meeting twice a year, if we
continue to meet twice a year, that would be often enough to
change it. That's conceivable. But we prefer to go the
regulation route, not just to set a rate that is appropriate
for the day that we set it, but as I said earlier, to set a
rate that may be appropriate to different areas and for
different reasons and for different terms. The farmer still has
the choice to take it or not take it if he thinks it's not good
or not to his own interest or to go elsewhere if he
prefers.
The Hon. Member for Oak Bay (Mr. Wallace) seems to feel that
this government has a tendency to introduce legislation that
shows only good intent rather than specifics of the programme.
I suppose there does seem to be some tendency for that, in
[ Page 537 ]
part, because we want to be flexible; in part, because we
want to have the authority to improve these programmes from
time to time as we feel the need arises without waiting for a
special session of the Legislature; in part, because we feel it
is the role of the Legislature to adopt a programme more in
general principle rather than in specifics to indicate to the
government that they support the idea, in this instance, of a
rational farm credit programme in principle without getting
into the nitty-gritty of the details.
Another problem I noted when the Hon. Member was speaking
that I didn't mention previously: perhaps there might have to
be some consideration at some time to the cost of money to the
government, and the cost certainly changes. A lot of money
right now comes from our Canada Pension Plan money that comes
back to us from Ottawa. Certainly this is subject to very
frequent and sometimes very dramatic changes in the rate. So
whether or not we would be influenced by that, I'm not
suggesting at this moment. I'm just saying that there are a lot
of factors to be considered in setting an interest rate. With
that in mind, we prefer to leave the actual interest rate to
regulation. We believe also that this has worked quite
satisfactorily with respect to the ALDA programme.
I must apologize for the press release; I was working on it
at the same time as I was conducting a number of pieces of
legislation through the House. There were certainly a couple of
good questions that could be asked about the press release.
One that the Hon. Member for Oak Bay (Mr. Wallace) drew to
our attention was about sharing losses on high risk adventures.
Perhaps this should be better dealt with in committee, but what
we are referring to there is the authority that we propose to
have given to us under this legislation. In certain
circumstances, there might be discounts of principle or
interest. In a sense, they are losses; they are costs to the
government of embarking on certain new programmes where we
would, without getting into government farming, the fear
expressed by one Member — in a sense enter into a partnership
to that extent with a farmer to try something new and
different, something that has been tested experimentally
research-wise but has not actually been tested in the field.
While, in this press release, it has been suggested that they
are losses, the experience with farm lending generally, as far
as governments are concerned, is that there will not be losses
but there might be costs involved in embarking on new
programmes that would be demonstrated to farmers.
The other item, the limit of $100,000, was just picked up in
error in reviewing our own legislation and comparing it with
others. So I apologize for the one question and one error in
that press release.
MR. WALLACE: No limit has been set?
HON. MR. STUPICH: No limit has been set in the legislation.
I don't think there would be even in regulation unless it's a
different limit for different circumstances. The amount of
capitalization necessary for different types of farming differs
dramatically. It would seem to me that if we are going to enter
into a limit discussion, we have to relate that limit to the
particular farming enterprise we are talking about, again,
whether it's for purchase of land or for other assets.
The Hon. Member for North Vancouver–Seymour (Mr. Gabelmann)
raised the question as to whether or not we would propose
postponing principal payments. I'm not sure; he may have meant
all payments. It is a feature of the ALDA programme that
principal payments may be postponed for three years. The case
he makes, where in some instances there will be no income from
the particular type of farming investment for a number of
years, is certainly a very good reason for postponing payments.
I am sure in a situation like that, the regulations would
provide for that situation.
As far as the interest rate, again, I would hope that it
would be low, but there is something else to consider. Nobody
really suggested today, with the exception of the Hon. Member
for North Vancouver–Seymour (Mr. Gabelmann), as to just exactly
what the interest rate should be. When the Hon. Member for Oak
Bay was comparing this with the farm income assurance plan
interest rate entered into that discussion too.
Then you were talking about cost of production and about
allowing interest on capital. Now in deciding what interest
rate we're going to allow on invested capital, should we have
that figure in mind at the time we're considering at what
interest rate we're going to lend? Now these are just
questions. I'm not answering; I'm just throwing them out to
show that it's not just a simple matter of picking a figure and
saying that this will be it.
The Hon. Member for North Peace River (Mr. Smith) suggested
that this particular programme, while he might have wanted to
see more in the legislation, is overdue, perhaps because the
number of farmers in our total community is low in proportion
to the rest, and certainly that's one reason. But the fact that
it is overdue, that the government of today recognizes it as
overdue and is bringing it in, shows that this government is
prepared to enter into this kind of programme, even though the
farmers do represent a relatively small number of people in the
total community. We think they are doing an extremely important
job, that they need the encouragement of this legislation and
the regulations attendant thereto. They need the encouragement
that this will bring about and this government is prepared to
act in that direction.
What of our young, new people? Again we expect
[ Page 538 ]
there will be a lot of consideration given to the young, new
people by the federal government when they introduce their
programme. But in the meantime, our programme will be
available. I would hope it will not be slanted toward young,
new people. I hope it will be a programme that will assist
farmers in general without too much attention being paid to how
old they are.
And who will be a farmer? Again this question of part-time
farming enters into it, and I think we'll take the same
approach that we did on the ALDA — and I hope the Members from
both sides will join me in this — and that is we're thinking
not only of producing food, we're also thinking about the
agricultural way of life as something that should be preserved
in our community, even though people may be earning a
significant amount of their income from other sources. But,
still, development of agriculture is important and the
government should take a hand in helping to develop it.
MR. PHILLIPS: The family farm.
HON. MR. STUPICH: The family farm.
It's part of the programme that we started in the spring
session when we said that we're going to save the farmland, and
said then that we would introduce legislation in the fall
session to save the farmers. Certainly the programme to save
the farmers is attracting a lot less heat than the programme to
save the land, but it is every bit as important as the one to
save the land.
Do grants mean government farming? I think I've dealt with
that, in part at least. I'm not saying there won't be
government farming; there currently is some government farming,
and I think government farming has a place in our community.
Certainly there's no intention to extend this markedly nor to
withdraw, but there are no great plans for any changes there
and I've described how the system of grants would work.
Financial advice would have to be part of a programme, and
you'll note that the legislation calls not only for direct
lending but also for guaranteeing. In the case of guaranteeing,
when one goes to any one of the recognized lending agencies
there is financial advice available; not only is it available,
you have to accept it if you are going to be dealing with one
of the lending agencies.
Certainly the government also has accounting plans available
and would encourage the farmers to make use of this kind of
accounting assistance so the farmers themselves will know
whether they're embarking on something or whether they're
conducting their business in a way that will be worthwhile,
economically speaking.
The last remark that I noticed, again from the Hon. Member
for North Peace River (Mr. Smith), is that we move with speed.
I think that's advice that I'm very happy to accept. Since being in office it's always
been my main ambition to move with speed. I don't know how long
I'm going to be here, but I want to see things happen while I'm
here, not after I'm gone. So, with legislative approval, I
assure you that the Department of Agriculture will move with
great speed to put into effect the provisions of this bill.
MR. PHILLIPS: Are you going to the Department of
Finance?
HON. MR. STUPICH: If I went to the Department of Finance, I
might have to be more responsible with the people's money.
I move second reading of Bill 44, Agricultural Credit Act .
Motion approved.
Bill 44 read a second time and referred to Committee of the
Whole House at the next sitting after today.
HON. MR. STRACHAN: Mr. Speaker, second reading of Bill
AN ACT TO AMEND THE
HUMAN TISSUE GIFT ACT
HON. D.G. COCKE (Minister of Health Services and Hospital Insurance):
Mr. Speaker, in putting this bill forward today for second reading, I just want
to give a very short explanation.
The people in foundations that have to do with human tissue,
for example a cornea transplant or other gifts of human tissue,
feel that it's necessary that this whole question be given a
great deal more publicity. But they feel that you cannot give
it publicity at the time of the event because there would be
some embarrassment. People would be caught up in the whole
emotional aspect of, for example, knowing from whom they got
their cornea transplant or kidney transplant, or whatever.
The foundations do feel that it's essential that more people
become aware of the necessity for the gifts of human tissue. So
that in providing this kind of legislation, it gives the
foundations the opportunity, with the consent of the donor and
also the consent of the recipient, for publicity to be given or
at least the announcement of the name of a recipient or donor,
as they wish, can be made public. Now this would not be done,
nor could it be done, within a 30-day period, so that there can
be some anonymity as far as people knowing directly where they
got their transplant.
Mr. Speaker, I think the question is quite obvious and I
would answer any questions that might be put in moving second
reading.
[ Page 539 ]
MR. WALLACE: Mr. Speaker, we will support this bill. I would
say that the Minister probably does not mean publicity so much
as he means public education. And I think we should try to draw
the distinction. I'm sure the bill does not intend to encourage
people to publicize this kind of event for the sake of
publicity but rather that there should be a greater awareness
in the public mind of the various tissues which can be
transplanted and, in other words, can be donated.
The one field in health care in the future, Mr. Speaker,
which has the most momentous potential for the human race, is
the whole question of donation of human tissue. This is a
matter which gets a great deal of discussion, as indeed it
should, in Reader's Digest and other popular magazines, because
once the whole question of tissue rejection is overcome, as I'm
certain it will be one day, the potential to transplant many
different tissues and different organs in the body to a donor
will mushroom dramatically.
While one need not tell the Minister, through you, Mr.
Speaker, about the costs of health care — he already knows all
about that — but the problems we're having right now will be
simply peanuts, if I could use the expression, compared to the
costs that will be involved when tissue transplantation becomes
much more widely available.
At the present time, I'm sure the Minister has in mind such
examples as he quoted, the tissue transplants of the cornea to
prevent or relieve blindness in certain cases, which at the
present time has a somewhat limited field, albeit a very
important one. But the whole question of heart transplants and
more readily available kidney transplants at the present time
takes a very important part of the budget of the Department of
Health.
Much of the dialysis expense, as the Minister is well aware,
and the artificial kidney costs, will of course be circumvented
or hopefully reduced when the time comes that kidney
transplantation can take place readily with a higher margin of
success than at the present time. I can't recall the precise
figures, but it's something like 40 per cent success at the
present time for transplants of kidney tissue.
One can't go into a long discussion of the whole principle
of transplanting of tissue, except simply to say that it holds
tremendous potential in the future.
Therefore, any bill which has the specific aim of educating
the public and making them aware of some of those techniques
and procedures which can be employed is well worthwhile,
provided it is not an attempt to pander to people's innate
search for publicity per se.
As long as I have not misunderstood the Minister's comments: that this is an
attempt to make the public aware through simple reporting of the facts rather
than any embroidered story of the dramatics of the actual transplantation process;
provided there's that very clear distinction that this bill is not designed
to encourage publicity-seeking as such, but simply to report the frequency of
these operations and the fact that they are technically capable of being done
and the benefits that are derived by the donor — this kind of information —
if this is the purpose of the bill, we most strongly support it.
[Mr. Speaker in the chair.]
MR. R.H. McCLELLAND (Langley): Mr. Speaker, I just want to express the
opposition view that we will support this bill. We assume that there must have
been many people who asked for this provision in order that the Health Minister
put it forward.
MR. SPEAKER: The Hon. Minister closes the debate.
HON. MR. COCKE: Mr. Speaker, first I will assure the Member
for Oak Bay (Mr. Wallace) that this has not been brought about
as a move toward a publicity stunt or to put the whole question
of tissue transplants into that kind of an arena. What it is
brought about for is to produce exactly what you said, Mr.
Member, and that is: public education in the whole area.
I might go on to say that we do recognize in this department
the real problem around tissue transplants — and that is the
escalating costs of the delivery of health care. I'm not
suggesting, by an stretch of the imagination, that there is
going to be a great deal of emphasis in this area other than,
you know, the real, true relief of illness, where it is
possible for us to make that kind of a contribution.
In answer to the Member for Langley's (Mr. McClelland'
s) question, yes it has. This was asked of us as opposed to having
been initiated in my department. The number of foundations and
groups that are involved directly in a voluntary way in these
areas were the people who initiated this whole question.
Mr. Speaker, with that I will move second reading of Bill
Motion approved.
Bill 43 read a second time and referred to Committee of the
Whole House at the next sitting after today.
HON. MR. STRACHAN: Second reading of Bill 45, Mr.
Speaker.
DOMESTIC ANIMAL
PROTECTION ACT
HON. MR. STUPICH: Mr. Speaker, this bill replaces provisions
of two Acts, the Sheep Protection
[ Page 540 ]
Act and the Animals Act . There has been some concern in the
livestock community that the legislation we've had on the books
up to this time has not really done the job of protecting
domestic animals.
There is some thinking that we should go even much further
than the legislation before us at the moment, and some
thinking also that we try to include in this programme
protection for domestic animals not only from dogs, as the
legislation before us does provide, but that we should include
protection from predators — wild predators, that is — and
compensation for losses due to destruction caused by wild
predators.
At the present time, insofar as wild predators are
concerned, they come under the jurisdiction of the Fish and
Wildlife Branch. The Fish and Wildlife Branch has been made
very much aware of the feeling of the livestock owners in the
province over the years, as has, more particularly, very
recently the new Minister charged with that responsibility. He
too has become aware of their feelings.
There are some areas where there seem to have been
deficiencies in control of predators in the past. It does seem
logical, in consultation with him, that the control of wildlife
should be under the Minister responsible for wildlife — whether
they be predators or whether they be game animals.
So the legislation before us leaves out reference to
wildlife. It deals with protection of domestic animals, but is
concerned more with control of dogs than with wildlife, and it
provides for compensation for losses from destruction caused by
dogs.
It makes provision for assistance to the RCMP in the
employment of domestic animal protection officers, who may sell
dog licenses and who may seize dogs that are illegally running
at large.
It does put some onus on the livestock owners in that they
must show that they have taken reasonable measures to protect
their animals from the action of dogs before any claim for
losses will be paid.
It makes provision for more effective control of dogs that
are running at large than we previously had under the
provisions of the Animals Act .
It makes provision for grants from the fund, which may be
allowed by the Minister for associations which he deems to be
effective in promoting dog husbandry practices which lead to
the reduction of dog problems. And, as I say, it allows for
compensation for a much wider range of livestock than we
previously had where it was limited to sheep.
I With that explanation, Mr. Speaker, I move second
reading.
MR. PHILLIPS: When I first saw this piece of legislation, I was very,
very thrilled indeed. Mr. Speaker, I was very happy indeed, and I ran down to
my office and I said to myself, "I'm going to let those ranchers up in that
great Peace River country know that this great open government, this people's
government, is going to protect them…"
AN HON. MEMBER: …and their assets.
MR. PHILLIPS: "… and their assets."
I dialled the number and, as I'm listening, Mr. Speaker
Interjections.
MR. PHILLIPS: …as I'm waiting for the ranchers in the
Peace River country to answer my phone, what happens, Mr.
Speaker? I start to read the legislation — and what do I find?
It's a Domestic Animal Protection Act , but what's it going to
protect the domestic animal from? — Snoopy! (Laughter.)
Lassie!
Interjections.
MR. PHILLIPS: Now, Mr. Speaker, I certainly don't want to
make light of….
HON. MR. STRACHAN: How about "Droopy, Drippy and Droppy"?
(Laughter.)
MR. PHILLIPS: But there are different people over here now.
(Laughter.)
Interjections.
MR. PHILLIPS: I do not want to make light of the fact that
certain livestock in this province need protection from roving
dogs, but I do want to draw attention again to the fact that
livestock, domestic animals in this province, need protection
from the greatest predator of all — the wolf.
Interjections.
HON. MR. STUPICH: Two legs or four?
MR. PHILLIPS: Oh, well, I will talk in a moment. I'm going
to say that certainly the livestock industry, as you well know,
Mr. Minister of Agriculture (Hon. Mr. Stupich), also needs
protection, greater protection, I should say, than presently
exists, against two-legged predators.
I refer to the hunters of this province who go out into the
great out-of-doors in search of those lovely little deer and
moose who graze there in our great wild lands. They go out with
their guns to hide behind trees and shoot them up. But
sometimes they make a mistake and they shoot domestic animals.
Also there are the thieves in the province who we call
"rustlers," and our livestock and domestic animals need
protection from them.
Now if we are not going to protect our livestock
[ Page 541 ]
from these predators, both human and wild, we are going to
have to come to grips and reimburse the livestock owner, the
owner of domestic animals. We are going to have to reimburse
them from the public purse.
I say that if the people who live in Vancouver-Little
Mountain, who live in Vancouver south and who live in all of
the lower mainland, want to protect the wolves in the province,
then they are going to have to be prepared to pay the
price.
No longer, with the great shortage of food, no longer with
bringing in legislation to improve the livestock industry, no
longer with bringing in legislation to help the farmers of this
province — no longer can we go on to leave them unprotected
against the predators.
Mr. Speaker, it says in this piece of legislation that the
fund will provide compensation for owners of domestic animals
killed or injured by a dog. This is not the biggest problem,
Mr. Speaker — we have a new leader.
AN HON. MEMBER: Hear, hear!
MR. PHILLIPS: I know, Mr. Speaker, that if there were other
people on that side of the House, this problem would be
resolved. I want to say to the Minister of Agriculture (Hon.
Mr. Stupich), and I want to say this sincerely, that I'm
acquainted with the Minister of Recreation and Conservation
(Hon. Mr. Radford) and I'm acquainted with the Minister of
Finance (Hon. Mr. Barrett) who is sitting right here in front
of me. If you need someone to intercede on your behalf, to go
to these Ministers and to ask for assistance, I would certainly
be most willing to give you assistance in this area. Now, Mr.
Premier, Mr. Minister of Finance, I'm getting them prepared — to produce some pictures in this House of cattle that have been
slaughtered by wolves. I want this province to see the gory
details and to realize, Mr. Speaker, that this must stop.
MR. SPEAKER: On a point of order, would the Hon. Member try
to confine himself to the bill, which deals with domestic
animals and dogs?
MR. PHILLIPS: Well, Mr. Speaker, the bill, which made me so
ghastly disappointed, as I said, says Domestic Animal
Protection Act , and I'm talking about the protection of
domestic animals. I want to tell you, Mr. Speaker, this problem
is serious. In our area I had our cattlemen's association
prepare statistics from last summer's losses, and I want to
read them to the House, Mr. Speaker. These statistics were
presented to the Hon. Premier, with a copy of this letter to
the Minister, urging that legislation be brought in at this
sitting of the House. I want to read you the figures, and these
are not to be laughed at: "Losses reported by members of our association to date this
year are running 5 to 10 per cent on calves and up to 5 per
cent on mature stock." There are many people in my area and
many people in the Member for Omineca's (Mr. Kelly) riding who
are trying desperately to get into the cattle business. Mr.
Speaker, these men cannot survive with 5 to 10 per cent losses
from the predators.
There was a recommendation, Mr. Speaker, that went in from
the agricultural committee as to how this problem could be
solved. I want to say, Mr. Speaker, to the House that this
recommendation received a great deal of soul searching by all
members on that committee before it was forwarded. The first
clause in that recommendation is that there should be
compensation from public funds for cattle and sheep losses, not
only in the Peace River district but throughout the province.
These losses may be from predators, hunters of rustlers with
claims to be approved initially by the nearest stockmen's
association.
Now, this is urgent, Mr. Speaker, and I'm waiting for this
legislation to come in. We have said that we want to promote
the agricultural industry, and in particular in the Peace River
area we would like many farmers to go out of grain and into
cattle. But these wolves are running wild in a predominantly
agricultural area. There is certainly lots of room in British
Columbia for wolves — many, many hundreds of thousands of
square miles in this province, Mr. Speaker, where there is no
agricultural activity whatsoever. I'm not going to get into the
reasons why the wolves are encroaching on agricultural land and
why they're standing on the perimeters of the community
pastures. I'm not going to go into those reasons; I'll let the
Minister of Recreation and Conservation (Hon. Mr. Radford)
decide for himself.
MR. SPEAKER: I don't think you should go any further into
the matter because it's out of order. If you want to make an
amendment to the bill that's one thing and you can debate
wolves, but the question before the House is to do with
dogs.
MR. PHILLIPS: Mr. Speaker, I'll say that I hope that in
bringing in this