~: Volume XL Thursday Province of Newfoundland FORTIETH GENERAL ASSEMBLY OF NEWFOUNDLAND Third Session VERBATIM REPORT {Hansard)- Speaker: Honourable Patrick McNicholas Number 1 26 February 1987

The House met at 3:00 p.m. MR. SPEAKER ~McNicholas): Order, please! SERGEANT-AT-ARMS: Mr. Speaker, I have the honour to inform you His Honour the Lieutenant-Governor has just arrived to open the Third Session of the Fortieth General Assembly of Newfoundland. MR. SPE'AKER: Admit His Honour the Lieutenant-Governor. HON. JAMES A. McGRATH (Lieutenant-Governor): Mr. Speaker and Members of the Honourable House of Assembly: It is with a great deal of pride that I address this Honourable House for the first time as the representative of Her Majesty.

Since assuming this high Office, I have become aware of the respect and reverence with which it is held by the people of this Provi"nce. I have been deeply touched by the expressions of loyalty and support that I have received from all over the Province. When I agreed to accept this appointment, I did so with determination to make the Office more open to our people. This I have endeavoured to do. Mr.

Speaker and Members of the Honourable House of Assembly: My Government's greatest challenge, and indeed the greatest economic and social problem facing our Province today, continues to be the need to create meaningful employment opportunities for all our residents. This need was referred to in the Speech from the Throne delivered by my Ll February 26, 1987 Vol XL Distinguished Predecessor in 1986. It has been the primary focus of My Government and will remain its most important objective. The status quo is simply not acceptable. However, it wi 1.l not be easy to make significant accomp l ishment.s in this area.

Panacea solutions are not- available and, although some progress has been made, we cannot look to our traditional resource-based industries to singly lead us out of our present situation. The economic recession of the early 1980' s inf lie ted an enormous impact on these traditional industries, and international market forces are continuing to limit recovery and expansion in these sectol:'s of our economy. Indeed, the global economy has changed dramatically over the past decade and further structural changes are expected.

As a small open economy, Newfoundland must adapt to these changes, primarily through economic diversification and balanced growth and development. We must build upon our traditional strengths and vigorously pursue new economic enterprises. Opportunities must be pursued in all sectors of the economy in the service sector as well as i.n the resource sector - and they must be pursued in all areas of the Province, both urban and rural. No matter how large or how small, all potential employment opportunities must be seized upon. Mr.

Speaker and Members of the Honourable House of Assembly: We have seen that Newfoundland's economy did not perfor·m well in the first half of this decade. However, some encouraging signs of improvement were . present in this past year as average employment Rl

increased by over five thousand jobs, the first substantial increase recorded since 1981. Some of the successes of 1986 arise from the revival and strengthening of a number of industries in our primary sector, the traditional pillar of the Newfoundland economy. This strengthening is important and will provide a basic stability. It has been brought about, in no small part, by the dedicated efforts of My Government. Mr. Speaker and Members of the Honourable House of Assembly: A few years ago, the deep sea fishery was restructured by the Government of Newfoundland and Labrador and the Government of Canada.

This restructuring, combined with an almost miraculous strength in the market place, has resulted in a very successful Fishery Products International. In addition to being very . profitable in this past year, Newfoundland's largest fish company was most successful in its divestiture of a number of ins~ore plants around the Province. In many cases this has allowed the expansion and strengthening of existing Newfoundland companies. In other cases we have seen the arrival of new owners with diverse backgrounds.

My Government looks favourably upon our new corporate citizens in the fishery and welcomes the strengths and innovations that they bring to our shores. Recently, the shareholders of Fishery Products ~nternational have approved a strategy to achieve the return of that Company to the private sector, several years ahead of projected schedules. My Government looks forward to the ongoing contributions which that Company will make to our Province. L2 February 26, 1987 Vol XL Mr.

Speaker and Members of the Honourable House of Assembly: At Cinq Cerf on the South West Coast of Newfoundland, a major new gold mine is currently being developed by Hope Brook Gold Incorporated, a subsidiary of BP-Canada. My Government has pr?vided encouragement and considerable financial and infrastructure assistance to this project. The mine will achieve partial production in 1987 and full production in 1988, at which time some 275 people wi 11 be directly employed at the site.

Hope Brook will produce an estimated 1.2 million ounces of gold from already proven reserves, making it the sixth largest gold mine in Canada. Also, My Government is pleased that this operation will see a more forward looking approach to the impact of mining operations on people. The men and women making up the workforce at Cinq Cerf will commute from their home communities' rather than create a new one-industry town which would be devastated by the eventual closedowns endemic to the mining industt·y. Mr.

Speaker and Members of the Honourable House of Assembly: 1986 also saw reactivation of the fluorspar industry at St. Lawrence with the assistance of both orders of Government through the Burin Peninsula Development Fund. Tn addition to the traditional mining operation, the new owners have constructed a milling facility, which will provide further and diversified employment opportunities. It is anticipated that over one hundred persons will be employed, once full operation is achieved later this year. This, along with the revival of R2

the fish processing operation in St. Lawrence, has provided a thriving economy to a town just recently threatened by devastating unemployment and in~ctivity. At the Baie Verte asbestos mine, Government financial a~sistance, boosted by certain concessions from the municipality, the employees and the Company, has permit ted the continuation of the operation and the maintenance of several hundred jobs dependant upon it.

In particular, in this past year, Government has agreed to continue its financial operating support and to speed up payment of the $12 million equity contribution which is being provided to remove the over-burden and improve access to the ore body. The net effect of this will be to dramatically lower the per tonne cost of production and thereby enhance the ability of Baie Verte Mines to be viable into the future and to succeed increasingly competitive markets for asbestos. in the world Mr.

Speaker and Members of the Honourable House of Assembly: In the forestry sector, the major rehabilitation and modernization projects at both Corner Brook and Grand Falls have proceeded more quickly than had originally been projected. Capital expenditures on these projects in 1986 totalled approximately $100 million.

Tn addition to the direct construction employment, these investments will ensure that our newsprint industry remains competitive into the future providing ongoing job stability in these operations. 1986 saw an increase of 2% in newsprint exports from Newfoundland and a further 7% increase is anticipated for this year. L3 February 26, 1987 Vol XL When viewed in retrospect, the success achieved a few years ago at Corner Brook with the attraction of Kruger Incocporated is possibly even more dramatic than what might have originally been believed. The total modernization project is ahead of

schedule and, when completed, will have cost in the vicinity of $300 million. The final result will be a modernized mill with all five paper machines operating. The direct employment in the mill, the forest and the related transportation sectors, together with associated spin-off, makes a continuing and very significant contribution to the economy of the Western and Central regions of our Province. Mr.

Speaker and Members of the Honourable House of Assembly: In the industrial sector, the Federal and Provincial Governments have recently reached aireement with Fishery Products International whereby that Company will construct seven new wet--fish trawlers at the Marystown Shipyard. These ultramodern vessels will enable Newfoundlanders . to utilize the most advanced harvesting technology and their construction will generate over 500 person years of employment at the Shipyard.

The twenty-one million dollar cost of this project to the Federal and Provincial Governments is more than offset by the economic returns to Canada. It will also enable the Province to maintain its "critical mass" of sophisticated shipbuilding technology at Marystown which will help us take advantage of the upcoming development of our offshore resources. The alternative was to have the new vessels constructed at offshore R3

yards with little economic benefits to our economy. Mr. Speaker and Members of the Honourable Hou~e of Assembly: Without any doubt, the most striking symbo 1 of the revitalization of our economy over the past year has been the commencement of the rehabilitation of the Come-by-Chance oil refinery. What was once a monument to the failure of industrial development in our Province is being resurrected, phoenix like, as a result of the dogged efforts of My Government.

This undertaking, when completed in the Sununer of 1987, will employ up to 200 people in the refining of crude oil into gasoline and other products for firm markets in the North Eastern United States. It has been funded entirely by private resources, without the· large subsidies that might have been anticipated by many. We welcome to our Province the new corporate citizen, Newfoundland Energy Limited, and we look forward to our future together. Mr.

Speaker and Members of the Honourable House of Assembly: The above successes, in our traditional fields of endeavour, are important to the individuals who have benefitted directly and to our society as a whole; They provide stability for certain core areas of our economy and the efforts of My Government have been a very significant component in their achievement. Similarly, new initiatives and new job opportunities must be pursued with our most intense energies.

For the past few years the L4 February 26, 1987 Vol XL prospect of the development of our tremendous offshore resources has been . present, but seemingly just beyond our grasp. In recent weeks, negotiations between the F'ederal and Provincial Governments and the partners i..n the Hi bern i.a project have proceeded wel.l, and a decision is expected soon on whether or not the fiscal arrangements are such to permit project release at this time. When the project release comes, the potential benefits that can flow into our Province from offshore development cannot be overstated.

By way of example, over twelve billion dollars will flow into the Canadian economy from the development of Hibernia alone. My Government has been very active, in the partnership with the Federal Government established by the Atlantic Accord, in ensuring that Newfoundland is the primary beneficiary of these benefits as contemplated. in the Accord. One example of this effort is the use of the· Canada-Newfoundland Offshore Development · Fund Agreement to offer incentives to the Hibernia Partners to establish a combined gravity based system graving dock and main support frame assembly site in this Province.

This Development Fund, in keeping with the terllls of its establishment pursuant to the Atlantic Accord, is also being used to defray the social and economic infrastructure costs related to the development of the Province's oil and gas resources and to ensure the Province is well positioned for this development. To achieve these objectives, educational and training programme and research and development projects in petroleum related field have been assigned a high priority. R4

Mr. Speaker and Members of the House of Assembly: The further development of the natural resources of Labrador has long been an objective of, and a challenge for, the Government of Newfoundland and Labrador. Such development requires a favourable combination of complex factors: transportation policies, energy pricing, labour force availability, productivity, private investment and Government vision and assistance. Most of all, it needs a tdgger industry around which further enterprises may coalesce.

This view was first articulated in detail in My Government's White Paper of 1981 entitled ''Labrador Resource Development and Transportation Plan", and since then intense efforts have been underway to attract such an industry. Over the past two years, we have concentrated on utilizing the forest C"esource in and around the . Goose Bay region. This resouC"ce has been virtually untapped and is of extremely high quality. The amount of wood fibre available within the economic radius of the Goose Bay area, on an allowable annual cut basis, is sufficient to supply a modern day pulp mill or a one machine newsprint mill.

Just over a year ago, the Government of Newfoundland and Labrador .initiated presentations to a number of forest products companies with respect to potential investment in Labrador based upon a new process called "instant pulp". Recently, one of these companies, a major Canadian newspC"int produceC", has expressed an interest in undertaking a detailed look at the feasibility of a forest products project based upon this resource.

Teams at a L5 February 26, 1987 Vol XL very senior level have been struck in both Government and the interested company with the mandate to determine the economic feasibility of such an investment. My Government is hopeful that a positive indication can be given early in this Year. Mr. Speaker and Members of the Honourable House of Assembly: One other very promising area for future developments in Labrador is with increased military activity in the Goose Bay area.

My Ministers have undertaken several missions to encourage our North Atlantic Treaty Organization Allies to increase their utilization of the Goose Bay site for military training and in support of other Federal efforts to have Goose Bay chosen as the site for a new NATO Tactical Weapons Training Center. If selected as the site for the centeC", Goose Bay would be the largest military airbase in North AmeC"ica, employing between 500 and 1000 civilians in addition to the approximately 3000 military personnel.

Even without selection as the site for the new centeC", Goose Bay will continue to benefit from increasing utilization as a tC"aining facility through the extension and expansion of existing bilateral agreements. Concerns· about the effect of this activity on residents of Labrador and on the environment have been expressed in certain quarters. These concerns are being addressed in full scale environmental reviews and every reasonable effort will be taken to mitigate any negative effects that might be shown to exist .. RS

Mr. Speaker and Members of the Honourable House of Assembly: Large p~oject successes are important in their own right and their impact must not be unde~stated. However, they a~e not enough and must be properly balanced with the opportunities that exist in small scale enterprises and in other sectors of the economy. My Government has been keenly aware of the tremendous growth potential in our service industries and in small scale manufacturing and secondary processing.

For example, some very real progress has been achieved in the secondary processing of fish products, and priority attention to this area will continue. Tourism related enterprises are being developed in many of our communities. In others, aquaculture holds great potential and an expanded development prograwme for scallops and mussels, as well as salmon, is showing results. In still other regions, agriculture makes the most significant contribution to the local economy and helps reduce our dependence on imported food products.

Recognizing this and to assist us in better directing our support to areas of st"rength, My Government will establish A Task Force on agriculture. This Task Force will consist of representatives from both the industry and government and will be asked to recommend a long term agriculture policy and strategy for the Province. Mr.

Speaker and Members of the Honourable House of Assembly: L6 February 26, 1987 Vol XL Notwithstandin~ the strenuous efforts made to provide jobs in our Province, persistent and levels of debilitating unemployment have remained. tt reason that a Royal on Employment and was constituted on was for this Commission Unemployment January 23rd, 1985.

The challenge given the members of the Royal Commission was broad:· to document the dimensions of employment and unemployment and identify the causes; to investigate the role of economic and population growth; to evaluate the adequacy of education and training; to assess the impact of job creation programmes; and, to examine the successes o~ failures of the existing support systems. There were many critics of the Royal Commission in the days following the announcement of its creation.

In fact, ·in My Predecessor's address to you on April 25, 1985, he referred to the cynicism that greeted the appointment of · the Royal Commission. A plea was made at that time for our citizens to take the mandate granted seriously, and participate in the activities of the Royal Commission to the fullest extent. I am pleased to advise that, in the main, our citizens did respond to this call, and as a r.esul t we have had delivered a comprehensive and systematic examination of the causes and consequences of unemployment, as well as a strategy and set of recommendations aimed at reducing its level.

The public debate and discussion that has ensued since the release of the Final Report, ."Building On Our Strengths", has been healthy R6

_._ and instructive. For its part, My Government has been engaged . in an intensive review and invigorating re-assessment of our traditional approaches to development, taking into ac~ount the views put forward by the Commission. Mr. Speaker and Members of the Honourable House of Assembly: The Royal Commission emphasizes the importance of the education system in economic development. My Government concurs with this and takes seriously its obligation of ensuring that the years spent in primary and secondary school is of maximum benefit to the student and to society.

Recognizing this necessity, My Government in this Year will be introducing changes in the school curriculum to bring it more in 1 ine with today' s needs. The first improvement will be the introduction of an Entrepreneurial and Business Concepts Programme which will provide a familiarity with the processes of flnanGe and business, how our economy operates, self reliance and business acumen. The second pt"ogran1me will provide a new Newfoundland Awareness emphasis which will ensure that each student is more knowledgeable of Newfoundland's history, geography, natural resources, our literature and our culture.

In addition, My Government will encourage the broader introduction and use of the Junior Achievement Programme which is sponsored on a volunteer basis by the private sector and which encourages youth to take calculated risks and develop entrepreneurial talents. It is hoped that the longer term results of these irtitiatives will L7 February 26, 1987 Vol XL be a labour force with a far greater awareness of the potentia ·! for growth in our Province, and with the skills necessary to take advantage of these opportunities.

Teachet"s too will be required to possess not only the traditional skills, but also an improved ability to stay current in an evolving school system, while being challenged by economic and social changes faster and more profound than have occurred at any previous time in our history. tn consequence, My Government, in conjunction with the Memorial University of Newfoundland and the Newfoundland Teachet"S Association, will undertake a major review of the teacher tt"aining pt·ogrammes at Memorial University. Mr.

Speaker and Members of the Honourable House of-Assembly Education does not end with the completion of the . high school programme. The opportunities of the future requit"e new ski"lls and changes in our traditional approach to higher education. My Government will introduce in this Session, legislation to provide fot" a I."e -ot"ganized post-secondary education system to be initiated at the start of the school year, September 1987.

This new system will consist of three Institutes with Province -wide mandates and five I."egional Conununi ty Colleges which, along with Memorial University, wi 11 bring to our citizens improved access to a greater I."ange of highet" education and training opportunities. These include new computer literacy programmes and a variety of new programmes of instruction in emerging applied technologies and f lrst- -year university courses. Rl

My Government is convinced · that local input into the decision-making process will make the community college system more sensitive and responsive to local and regional needs. For this reason, each of the five new regional Con®unity Colleges will be governed by a Board whose membership will be representative of the region. Such an arrangement will greatly decentralize the decision-making process and will ensure that regionally identified needs are mirrored in course offerings.

I am pleased to point out that this new direction is very much in harmony with the recommendations of the Royal Commission on Employment and Unemployment. At the same time, a major professional development programme will be undertaken to assist in preparing instructors for this new approach. Recognizing the benefits to be obtained from combining on-the-job training with academic instruction, a major Career Development. Awards Programme wi 11 be instituted for students.

The future of our educational system is bright and we are confident that the action now being taken will serve our Province well in the years and decades to come. Mr. Speaker and Members of the Honourable House of Assembly: As documented by the Royal Commission, a large portion of the provincial budget is allocated each year to the provision of services to the unemployed in our Province. Even greater amounts are spent by the Federal Government.

Too often these efforts have· been unsuccessful, L8 February 26, 1987 Vol XL with the work activity created becoming merely an unpro'ductive intet:"lude between long periods of enforced and undesired idleness. In response, My Government will introduce a comprehensive package of progranunes which are df~signed to improve the Pt"ovince' s effectiveness in creating meaningful jobs and, at the same time, aid in addressing the so called "ten week syndrome".-This package will include the re-direction and modification of existing programmes and a new assistance programme to the private sector for new jobs it creates.

Funded activities will be designed to add significant long-term value to the pt'ovinci.al community and pr-ovide wor-kers with a credible job experience leading to long-term employment pr-ospects. First, commencing in April of this year, My Government will be instituting major job creation initiatives in the form of long term pr-ojects in such ar-eas as par-k impr-ovements, silvicultur-e, fisheries enhancement, agricultur-e and tour-ism. These projects wi 11 be designed, implemented and supervised by the appr-opriate development-oriented line Depar-tment of the Pr-ovincial Gover-nment.

Second, in recognition of the reconunendatlons of the Royal Commission with r-espect to private sector-involvement, -a new pr-ogr-amme will be established to be cost-shar-ed on a fifty-fifty basis with pr-ivate pr-oponents to fund new jobs cr-eated by them in any sector-of our economy. These jobs will have a minimum dur-ation of four months and prior-ity will be given to pr-ojects of longer­ dur-ation up to and including full-time employment. Safeguards R8

will be in place to ensure that such jobs are incremental to the employer's normal requirements. All proposals will be evaluated by an interdepartmental board with final approval by the Department of Career Development and Advanced Studies. It is estimated that these two programmes will, in 198 7, support some 6,000 jobs which would otherwise not exist. In addition, as a specific r'equirement of each programme, at least 40 per cent of the jobs will be for' young persons.

Third, a joint Federal-Provincial pr'ograrnme entitled "Employability Enhancement" will provide funds to address attitudinal problems associated with chronic unemplorment and for an appropriate training component. Fourth, the Community Development Programme, which provides jobs for selected categories of social assistance recipients, will be continued in line with its original targets and. objectives. Mr. Speaker and Members of the Honourable House of Assembly: Directly related to this theme is the question of an appropriate income support system that best fits the particular character'istics of our situation.

Both the Royal Commission on Employment and Unemployment and the Forget Conunission on Unemployment Insurance have made recommendations in this regard. This is a most camp lex issue and one which comes under the responsibility of both the Provincial and Federal jurisdictions. I am happy to announce that My Government has established a task · force of L9 February 26, 1987 Vol XL Ministers and officials to fully analyze these proposals in preparation for constructive discussions with the appropriate Federal authorities to see how such a pr·ogramme can be established without destructive social impact. Mr.

Speaker and Members of the Honourable House of Assembly: As part of its consideration of the challenge of economic development in the various regions of Newfoundland and Labrador and the various sectors of our economy, the Royal Commission addressed the role of Government Lending agencies and Financial Incentive Programmes. The Coromission cot:J.cluded that there weFe deficiencies i.n the applicability of these financial programmes to the service industry and, further, that would-be entrepreneurs and investor·s were finding· it ·difficult to obtain accurate information about the various programmes.

My Government concurs with these conclusions and in response has decided to expand the mandate and programmes of both the Rural Development Authority and the Newfoundland and Labrador Development Corporation. .In bolh cases, increased emphasis wi 11 be placed on accommodating the small entrepreneur and business enterprise. These new initiatives are as follows: First, the Regulations of the Rural Development Authority are being amended, and appropriate funding provided, to allow an expanded lending programme to include service sector enterprises.

Second, the term lending pr'ogramme of the Newfoundland and Labrador Development Corporation will be broadened to include assistance to R9

industries and economic enterprises in the service sector. Third, the existing Venture Capital Programme of the Newfoundland and Labrador Development Corporation will be expanded by the allocation of additional funds. Fourth, a new Business Equity Programme will improve the chances of success for small under capitalized enterprises through equity investment which in turn reduces borrowing requirements. Fifth, a Youth Entrepreneurship Programme will, for the first time, provide young entrepreneurs with access to risk capital and a substantial business support system.

Sixth, the concept of "one stop shopping" will be implemented through the main office and three regional offices of the Corporation. The intent will be that, by making a single phone call, a would be investor or entrepreneur could have their enquiry heard in a professional manner and receive direction on the applicability of any Government progran~e and appropriate follow-up action required. Mr.

Speaker and Members of the Honourable House of Assembly: My Government wi 11 be undertaking a renewed effort to ensure the maximization of its usage of local materials, goods and services where price, quality and delivery is competitive. Requirements will be applied not only to all Government departments and agencies, but as well to all organizations funded through the pro~incial treasury. LlO February 26, 1987 Vol XL The strength of Government's purchasing power can provide for our producers, tradesmen and service people a secure market for their labours.

Similarly, if properly harnessed as a development tool, it can provide the required stimulus to justify new manufacturing enterprises to replace existing imports. Combined with these efforts, My Government will commence a Province-wide awareness campaign to make all Newfoundlanders mot"e knowledgeable about the enormous range of goods and set"vices available from within the local economy. This education campaign will make our people more appreciative of the benefits that accrue to all of. us by making as much of our expenditures as possible within .our Province. Mr.

Speaker and Members of the Honourable House of Assembly: The creation of meaningful employment 'opportunities and the utilization of our natural advantages are most d1fficult tasks. They require a concerted effort by all levels of Government, by the private sector and by our labour fotce. Further, such development occurs -or fails to occur -in a climate which i.s as complex as that of our natural environment. Newfoundland's economic climate is strongly influenced by the winds of international trade.

Over the past year, My Government has devoted considerable resources to this policy area and has been encouraged by the progress made towards further trade liberalization. Bilateral negotiations the United. comprehensive Canada between States freer and towards a trade RlO

arrangement are well underwqy and in September 1986, a new round of Multilateral Trade Negotiations was launched in Uruguay. Newfoundland is a trading Province. Exports contribute about one and a half billion dollars to our provincial economy, equivalent to eighty-seven per cent of the output of our goods producing sector. Access to the world's markets is absolutely essential for our fisheries, mineral and forest industries. Access that is secure, improved and enshrined in a trade agreement, is the objective of the current negotiations with the United States, which takes 73 per cent of our total exports.

My Government supports these objectives, and is actively participating at all levels to ensure tha ·t Newfoundland's interests are effectively promoted. As stated, My Government supports "freer trade" for the secure access so important t~ sustaining the jobs and economic activity in · our export sectors.

However, there are other benefits from the potential trade agreement that are also important, such as cheaper consumer imports in many categories of goods, cheaper industrial inputs for business,­ improved market access for our fish processing and other sectors where tariff and non-tariff barrier·s are now significant, and finally, an improved climate for investment in Newfoundland for firms which hope to serve the entire North American market. My Government is also interested in securing the longer-term trade liberalization which may be possible under the Multilateral Trade Negotiations.

Progress here is an essential ingredient in Lll February 26, 1987 Vol XL creating the opportunities for Ne -wfoundlanders to be competitive and productive in the international marketplace. Mr. Speaker and Members of the Honourable House of Assembly: Another critical factor i.n determining the economic climate of a Country, or in fact a Province, is the ability of Government to make the necessary resource management decisions. This question of jurisdiction is nowhere more pronounced, nor more important, than in the fishery, the economic life-blood of many of our communities.

My Government has continued to be very concerned about the problem of foreign overf ishing on our continental shelf. My Ministers have met with Federal Ministers on various occasions to emphasize the seriousness of this problem. It was the subject of a meeting of the Atlantic Fisheries Ministers in St. John's in January, 1986 and was raised in a Report - py Fisheries Ministers to the First Ministers' Conference in Vancouver in November, 1986. In September, My Government released a public document entitled "The Problem of Foreign Over fishing Off Canada's Atlantic Coast".

This document reviewed the growing problem of overfi.shing on stocks which straddle Canada's 200 mile limit of extended fisheries jurisdiction. On the "Nose and Tail" of the Grand Banks in particular, foreign fleets have been taking substantial amounts of cod and flounder without regard to internati'onal management measures and conservation regimes. This problem has become worse in recent years and has now reached severe proportions. Rll

Our fishing industry has estimated the total foreign catch in the Grand Banks area at 86,000 metric tonnes, compared to 145,090 metric tonnes of Canadian catches. If that foreign caught fish wer·e landed and processed in Canada, it could provide employment for about 2,500 Canadians and generate sales of over 100 million dollars. My Government has supported and applauded announcements by the Federal Government that it intends to strengthen measures to police the 200 mile limit, and to punish offenders of Canada's fisheries laws.

To merely police the line, however, will not solve the massive overfishing effort outside the line, nor will it protect the livelihood of Newfoundland fishermen dependent upon these cod ahd flou~der resources. The Government of Newfoundland and Labrador has proposed what it considers· to be the only feasible, and final long~term solution to this growing problem. That solution is the extension of the functional fisheries management jurisdiction of Canada over the "Nose and Tail" of the Grand Banks. This would fill the gap in existing practice and would be consistent with past national precedents.

My Government is disappointed that the Federal Government has not yet supported this solution to the overfishing problem. However, at the First Ministers'Conference in Vancouver, agreement was reached to establish a Task Force on this and related international fisheries matters and to propose further ways and means to address the problem of foreign overfishing. My Government looks forward to the recommendations of this Task Force. Ll2 February 26, 1987 Vol XL Separate from the general problem on the Grand Banks, is the serious overf ishing on the St. Pierre Bank in Zone 3PS.

Here, vessels f com metropolitan France are taking catches which exceed their quota several times over. While My Governrnen t has been concerned about this problem for some time, it is only recently that the Canadian public is recognizing it as a serious national issue.

The Canadian people for the first tlme have learned of the unreasonableness of France's demands for fish quotas in our waters; their intent to continue to overfish the cod stock on the South Coast of Newfoundland, which provides lhe livelihood for thousands of fishermen in the adjacent communities; and their intransigence in submitting the boundary dispute to third party arbitration. My Government agrees with the position of the Government of Canada that the comprehensive and long term solution to this overfish~ng problem is a resolution of the boundary question through third party arbitration.

However, My Government totally rejects any agreement· to proceed to thir·d party arbitration that comtemplates any allocations to France of the valuable northern cod stocks. Rather, other levers in Canada's bilateral relations with France must be used. My Government will be presenting a suitable Resolution on this issue in this Session. As can be seen, the importance of good fisheries management to the economic strength and stability of this Province cannot be R12

overestimated. Clearly, Canadian fishet:"ies management control ovet:" the "Nose and Tail" of the Gt:"and Banks is essential. Similarly, My Government has long sought an appropriate share of jurisdiction over the fishery based upon the proposition that each coastal Province should have a constitutionally recognized competence to participate in decision-making with respect to the harvesting and allocation of the fishery t:"esource. This participation would be secured by concurrent Federal and Provincial powers.

Only in this way can we ensure that management decisions are made in the best int~t:"ests of those most directly affected. To quote from the 1986 Address, "it is critical that we obtain a greater responsibility in determining how · and by -whom our fishery resource is harvested". Mr. Speaker ' and Members of the Honout:"able House of Assembly: It is not possible to pass over the necessary climate for development without referring to the labour unrest in our Province.

During 1986 and thus far in 1987, we have seen major illegal work stoppages in the public sector, a construction industry strike and sporadic protests over the issue of utilization of non-union labour, particularly in the rehabilitation of the Come-by-Chance oil refinery. It is not the practice nor the wish of My Government to take, or to be p.erce i ved to take, measures which prejudice the existence or operation of · unions. The ability to bargain collectively is a L13 February 26, 1987 Vol XL hallmark of democracy and a guat:"antee of the rights ,of union members.

These rights must, however, be balanced against the rights of, and the production of, the private citizen; the individual who does not possess or desire membership in such an or.'ganization. My Government feels that the cur.'rent balance of pr.'otection of private rights and union r.'ights in the labour legislation of our Province provides a fair.' and equitable treatment for all. We do not feel that it is appropriate to force an employer to hir.'e persons of a pat:"ticular status, through legislation.

Within the public sector our.' concern has been the protection of the security and safety of the individual citizen. In any competition between a right to strike and the protection of the helpless. we must have sufficient resour.'ces available at all times to ensure the provision of a reasonable standard of essential services. The question of an appropriate balan~e in this area is currently being addressed by a review group and My Government looks for.'ward to receiving their conclusions. Mr.

Speaker and Membet:"s of the Honourable House of Assembly: The efforts of My Government and the programmes we have established to r.'ealize our employment opportunities are not made in isolation. The Government of Canada in its most recent Speech f'r·om the Throne announced an Atlantic Canada Opportunities Agency to facilitate and coordinate all Federal development initiatives in this area. R13

This is most welcome new_s and · my Ministers have already commeneced discussions with their Federal counterparts to ensure that the Agency is appropriately mandated and financed. To determine an appropriate level of financing, My Government believes iL is necessary to return to the proportions spent on regional development in the period 1975-1976, when 56 percent of Canada's regional development monies· were spent in the Atlantic region.

Given this Province's level of disparity, a budget of $115 million should be allocated to Newfoundland for cost shared agreements following the current model for Economic and Regional Development Agreements. The mandate of the Agency is as essential _as its budget. The restructuring of the regional development portfolio of· the Federal Government in 1983 changed the departmental focus from regional development to industrial development.

With that change ~arne a dramatic shift in emphasis towards the central Canadian industralized region, to the detriment of the Provinces of Canada most in need of developmental ·assistance. The national focus of current Federal policies is a further barrier to the effective application of these programmes to Newfoundland where vastly different local conditions exist. It is axiomatic that development can only be based upon our assets and resources, our people and our ·organizations.

The new Agency must be given a mandate that permits it to modify the criteria of existing Federal· programmes in a manner consistent with our local circumstances. Only in this way can we seize the opportunities that exist within our Province. If this is done My L14 February 26, 1987 Vol XL Government believes that the new initiative provide~ the vehicle for the redirection of development efforts and the reestablishment of programmes more relevant to our needs. Mr. Speaker and Members of the Honourable House of Assembly: The theme of this address, ·and the pre-occupation of My Government, is jobs.

Meaningful employment for all our citizens must be our most sought after goal. To achieve it will require the pursuit of opportunities in all sectors of the economy -in the service sector as well as in the resource sector -and in all areas of the Province, both urban and rural. No matter how large or how small, all potential employment opportunities must be seized upon. This, My Government is committed to do. Mr.

Speaker and Members of the Honourable House of Assembly: My Government's effort are concentrated on improving the employment prospects for Newfoundlanders and Labradorians; thereby realizing a vibrant economy, and creating a sound financial base for Government pt"ogrammes. Only with success in these areas can the social needs and aspirations of our people be effectively responded to. Human development is the desire of all public policy and My Government's commitment to human betterment through sound and sensitive social policies is unwavering.

To this end, we will continue: to provide a comprehensive range of quality health care services; to protect and nurture the family th_rough the provision of community-based services; to maintain an up-to-date education and training R14

system that responds to the rapid changes of our time and the equal opportunity needs of our people; to support affirmative action prograrrunes for women; and to preserve Newfoundland's heritage, individuality and cultural uniqueness. My Speaker and Members of the Honourable House of Assembly: These initiatives of My Government towards human betterment represent an area of public policy in which I have a deep personal interest.

For this reason, I have established a foundation on Family Life and a Family Life Institute with the objective of bringing together the various organizations in our Province that are involved in these matters. I look forward to the first annual conference on Family Life in Newfoundland and Labrador. Mr. Speaker and Members of the Honourable House of Assembly: As we move forward with our economic and social prograffimes in this Session and through 1987, we must do ·so with the faith and perseverance that characterized our forefathers.

Their inherent strength and hard earned knowledge of wind and tide, and the complex currents of human experience, assured a good catch, a bountiful harvest. My Government pledges to use and maintain that legacy for this and future generations. Mr. Speaker and Members of the Honourable House of Assembly: My Government plans to place a number of important pieces of legislation before you this Session. A full listing of this legislation will be tabled at the earliest opportunity so that all LlS February 26, 1987 Vol XL Honourable Members can be properly prepared for the upcoming proceedings.

During the course of this Session, you will be asked to grant supply to Her Majesty. I invoke God's blessing upon you as you commence your labours in this Third Session of the Fortieth General Assembly. May Divine Providence guide you in your deliberations. Motion, the han. the President of the Council to introduce a bill, "An Act To Amend The

Summary Proceedings Act," carried. On motion, The

Summary Proceedings Act read a first time, ordered read a second time on tomorrow. MR. SPEAKER: I would like to announce that His Honour, the Lieutenant-Governor, has been pleased to make a speech to the members met in General Assembly and that for greater accuracy I have obtained a copy~ SOME HON. MEMBERS: Hear, hear! MR. PARSONS: Mr. Speaker. MR. SPEAKER: The han. the member for St. John's East Extern. MR. PARSONS: Thank you, Mr. Speaker. It is my honour and privilege today to move that a committee of this Hon. House be appointed to draft an address in reply to the Gracious Speech from the Throne. In so doing congratulate I would certainly His Honour the RlS

Lieutenant-Governor on the excellent delivery of his first Throne Speech. I think I speak for all han. members when I say that we are very fortunate to have such a distinguished parliamentarian and tJewfoundlander in this important position and I wish him well as he fulfills the many responsibilities associated with the Lieutenant-Governor's office. SOME HON. MEMBERS: Hear, hear! MR. PARSONS: Mr.

Speaker, I wish to extend my best wishes to His Honour and commend him on his initiative which has culminated in the formation of a foundation to be known as the Lieutenant-Governor's Foundation on Family Life Incorporated. This Foundation will provide funding which, among other things, will organize an annual conference on family life in Newfoundland and Labrador. This Foundation recognizes the family as the basic· i~stitution in society. However, in today's contemporary North American Society it is in a state of deepening crisis.

The Lieutenant-Governor's Foundation is founded on the belief that strortg healthy families mean a strong healthy society and therefore must be nurtured and strengthened. Mr. Speaker, I share this position and commend His Honour on this thoughtful and important initiative, which I feel sure is welcomed by all han. members. Mr. Speaker, in beginning my brief remarks today, I wish to sincerely thank the people of St. ·John's East Extern District wh~ so generously welcomed me during my campaign and elected me as their Ll6 February 26, 1987 Vol XL representative in the House of Assembly. SOME HON.

MEMBERS: Hear, hear! MR. PARSONS: I pledged then that I would do my utmost to address the needs and concerns of our historic district and I again say that St. John's East Extern will continue to be served in the best possible manner. I am fully aware of the pressing needs in my district and I will be working hard in the months ahead to ensure that our community needs and individual problems receive prompt and effective representation. Mr. Speaker, this is a proud moment for myself and my family.

I know that the genuine desire to serve one's constituents and to work toward the betterment of the Province is shared by each hon. member present. By working together, always with this goal in sight, we can make our own significant contribution· to this Province and country. As is the custom on the opening of a new session of this Legislature, I am afforded the opportunity to briefly touch on some of the concerns and aspirations common to the residents of St. John's East Extern. As everyone here is well aware the district of St. John's East Extern has a pr·oud heritage and a colourful history.

My district is both urban and rural and the economy is a diverse mixture of farming, fishing and service industries intimately linked with the City of st. John' s. However, first and foremost the fishery is the single most important industry in my district. R16

Mr. Speaker, St. John•s East Extern is very diversified to say the least. It includes East Meadows, a part of the City of St. John's; ~~ledgewood Park: A town wi"th its own autonomy and doing well, but with the needs of any other municipality, right now placing emphasis on the developme·nt of recreational facilities for its young people; Outer Cove/Middle Cove/Logy Bay: A newly incorporated area with a new energetic council getting their feet wet in a whole new field of endeavour.

Their enthusiasm stems from the desire to make their town a better place for its residents to live and, in this respect, the establishment of a municipal plan is uppermost in their minds. Towards this goal I can tell them today that I have discussed the matter with the Han. the Minister of Municipal Affairs (Mr. Doyle) and that a plan will be in place before the upcoming construction season begins. SOME HON. MEMBERS: Hear, hear! MR. PARSONS: Mr. Speaker, Airport Heights is on a collision course with the City of St. John's. It is a longstanding thorny issue which I feel must be resolved in the near future.

I have spoken with area residents and, in my view, the .ir concerns and problems are legitimate ones. I believe that my predecessor and the Hon. the Leader of the Opposition (Mr. Barry) was instrumental in ini Hating an amendment to the St. John's Municipal Act, whereby the mill rate charge by a municipality was not final, but cou~d be reduced accordingly when people Ll7 February 26, 1987 Vol XL did not receive full · municipal services. Mr. Speaker, Airport Heights has no bus service, only a promise of one.

It has not recreational facilities, no water and sewage, limited street lighting and garbage collection only once a week. Mr. Speakec, the city blatantly ignored the thrust of the Legislation, but stayed within the narrow guidelines and reduced the mill rate by one mill. At the same time, property values were increased in a vain attempt to find some material grounds for agreement. I have met with the Mayor of _St. John's. However, I cannot offer any relief, or express my confidence that the situation will be remedied.

This is a very complex and urgent problem, and one which has to be addressed soon in a meaningful way. Torbay: A progressive, growing town with · a population growth rivalling any other municipality in the Province. Mr. Speaker, it is generally agreed that Torbay urgently needs an industrial as well as a domestic p l.an to sure orderly and effective development. The need for continued water and sewage construction is of prime concern. These ser:vices must be extended in areas of concern to council. Fishermen genuinely need improvements in Tapper's Cove to further facilitate their successfu 1 fishing efforts.

OthE-~r: areas of concern, associated with · a quickly growing town, will also r:equire our: attention in the months ahead. Bauline: A town where a Commissioner: has been appointed to hold hearings on its possible futur:e incorporation. I feel sure t.hat when these hear:ings are finalized Bauline will take its Rl7

place as a new municipality with a str-ong council .in place befor-e the end of this Summer-. Flatr-ock: My home community still r-equit'es impr-oved fish handling facilities, including the provision of a breakwater. The town has applied for-the f lr·st phase of water and sewage installation and I will cer-tainly be lobbying hard for funding to commence this badly needed project. Shoe Cove: It is being annexed by the town of Pouch Cove which is a large and pr-ogressive community.

It is my hope that, with the support of my colleagues, we can meet the pressing needs in this area, again, par-ticularly the provision of water and sewage servl.ces. Glenvilla Trailer Court: Mr. Speaker-, I am pleased to report that a fair proposal has been submitted to the residents of Glenvilla and I feel sure that an acceptable solution will be for-thcoming in the near future. Mr. Speaker, St. John's East Exter-n contains some of the best far-m land on the Avalon Peninsula.

During the past number­ of months concer-n has been expr-essed by local farmer-s who are having difficulty in selling their­ farm products. I will, therefore, be soliciting support to enable these fa~ner-s to supply the various government institutions and establishments with their­ locally produced pr-oducts. This tangible assistance would gr-eatly benefit and fur-ther-stimulate our­ agr-icultur-al industr-y. I would highlight fishermen Extern. cer-tainly like to the role played by the of St.

John's East Faced with some of the Ll8 Februar-y 26, 1987 Vol XL harshest fishing grounds and difficult fish handling areas in the Province, our area fishery has continued to be strong and vibrant, despite the recent failures suffered along the North East Coast. The fishery is the r-eason for our very existence. Our-history is founded and built upon our fish and our-future is linked to the continued supply of fish fr-om stocks off our coastline. Mr. Speaker-, our for-efathers and Newfoundlanders and Labradorians to this day feel they have a God-given r-ight to fish the waters around this Island.

I am, therefore, a very proud Newfoundlander to stand her-e today as part of this government which has shown, beyond any doubt, that this t'ight will prevail at all costs. SOME HON. MEMBERS: Hear, hear! MR. PARSONS: Mr. Speaker, I have listened with gr-eat inter-est lo the Gr-acious Speech from The Thr-one and I am very pleased with the directions and initiatives to be undertaken by government. Par-ticularly in the ongoing stt'uggle with our chronic problem of unemployment.

I am especially pleased that government will be moving ahead quickly to addr-ess many of the recommendations of the Royal Commission on Unemployment. Employment and Improvements in the school curr-iculum including the intr-oduction of an entrepreneurial and business concept pt"ogt"anune which will provide a farniliari ty with the pr-ocesses of f lnance and business; and the Newfoundland Awar-eness emphasis which will ensure a greater-knowledge of our Province's history, geogr-aphy, R18

natural resources, our literature and our culture are especially welcome and exciting. New computer literacy programmes at our community colleges and Memor-ial Univer:sity and a var:iety of new pr:ogrammes of instruction in ~mer:ging applied technologies will also serve to diversity our employment oppor:tunities and business gr:owth. In or:der: to attain competitive advantage' we must direct our efforts towards new technologies. These technologies must be fostered within the educational institutions which exist today.

In particular, we must ensur:e the development of advanced education at Memor-ial's Faculties of Engineer:ing and Business. Graduates fr:om these schools must poses the skills to help us move directly into a post-industrial society, a society which will attr:act outside investment. We must not become totally dependent on mega pr:ojects like Hiber-nia, but r-ather use such pr-ojects to help us develop into a· hi-tech society. Technology is undoubtedly the key to our future. It presents us with the oppor:tunity to become more productive, and as a result, much more competitive.

Extensive computerization and the development of an Island-wide communications network ac-e essential ingr:edients in the development of our Province. Ten years from now, we want to be considered world leaders in technology. Mr. Speaker, I also welcome the comprehensive package of pr:ogrammes which will stimulate private sector employment and provide funding for existing agencies like the :Rural ·· Ll9 February 26, 1987 Vol XL Development Newfoundland Authority and and the Labrador Development Corporation which will boost investment and job creation.

Finally, I wish to applaud the government's ongoing support of our fisher-y whieh is th~ lifeblood of our Province. As the Gc-ac ious Throne Speech indicates, government will be moving ahead on a number of key fr:onts during this session and will be presenting a suitable resolution on the Canada/France boundary dispute. We will also be pushing ahead in our efforts to exercise fisheries management control over the "Nose and Tail" of the Grand Banks, and lobbying hard to obtain an appr-opriate share of judsd ictlon over our fishery.

Through these measures we can at least contr:ol our destiny as it relates to our: chief natural resource, and I feel sure that our efforts in this direction wil~ be encouraged by everyone involved in the industry. Mr. Speaker, in closing my remarks I would like to commend the Han. Premier and the Minister: of Fisheries (Mr. Rideout) for the diligent and courageous stand they took during the secr:etly signed Canada/France cod deal. SOME HON. MEMBERS: Hear, hear! MR.

PARSONS: It is yet anothE:-~r shining E-~xample of our Premier:'s fierce commitment to the people of this Province and his determination to protect and enhance the resource of this Province for development by people of Newfoundland and Labrador. SOME HON. MEMBERS: Hear, hear! MR. PARSONS: R19

Toward this goal, I pledge my unswerving support as the Peckford administration continues its st~uggle to wrest au~ Province f~om the bottom rung of Confederation's ladde~. Mr. Speaker, it is my honour and p~ivilege to move that a conm1.ittee of this honourable House be appointed to draft an Address in Reply to the most Gracious Speech from the Theone. SOME HON. MEMBERS: Hear, hear! MR. BAIRD: Mr. Speaker. MR. SPEAKER: The han. the member for Humber West. MR. BAIRD: Thank you, Mr. Speaker. Mr. Speaker, it is an honour and a privilege to second the motion so ably presented by my colleague the bon. membe~ for St.

John's East Extern (Mr. Parsons) whom I feel, like his predecessor, will rep~esent his constituents fo~ many, many years to come. SOME HON. MEMBERS: Hear, hear! MR. BAIRD: I would also like to welcome to this hon. House the new membe~ for St. John's East (Mr. Long). SOME HON. MEMBERS: Hear, hear! MR. BAIRD: I wish to commend His Honour for­ delivering the Gracious Speech from the Throne. This occasion mar-ks His Honour's f ir:-st address, having been appointed a fe"w ··short L20 February 26, 1987 Vol XL months ago as Her Majesty's r-epresentative in our Province.

I believe that His Honour, given his long and dedicated r-ecor-d of ser-vice and his exemplary dedication, will be a most auspicious and capable holder of the office of Lieutenanl-Governor. I attended a 31st anniver-sary banquet of the Cor-ner Brook Rotary Club on Saturday, February 21, and listened with interest as His Honour:-expounded on the r-ole of the family in today's life. I take this opportunity to on the Foundation His Honour congratulate establishing Lieutenant--Governor's on Family Life. Mr.

Speaker, I recall back in 1949 when travelling on a street car in Toronto I r-enewed an old acquaintance of mine, a fellow Newfoundlander who, like myself, had to leave home to seek employment in anothe"r pt'ovince. Who would have imagined 1 would be present here today in this han. House and listen to the Gracious Speech from the Throne being delivered by His Honour with whom I travelled on a str-eet car in Toronto some thirty-seven years ago. In the past the Throne Speech has traditionally stated the Government's general plans for the coming year.

I have to say, in this Throne Speech ther-e ace mot·e innovative and specific proposals than I have ever seen befor-e. SOME HON. MEMBERS: Hear:-, hear! MR. BAIRD: Time will not permit me to elaborate on all the points in the speech today, but I intend doing R20

so in the coming weeks. I will say this, however, that the points contained in this Gracious Speech will be extremely beneficial and helpful, not only to the constituents that I represent in the district of Humber West, which encompasses approximately one half of the City of Corner Brook, but I am confident they will greatly benefit the Province as a whole. Mr. Speaker, the theme of the Throne Speech is jobs, meaningful employment for Newfoundlanders and Labradorians. I want to review just a few of the major successes brought about by this Government in the past year.

Fishery Products International, Flourspar Mines at St. Lawrence, the establishment of the Hope Brook Gold Mine on the West Coast, the Come-by-Chance oil refinery, the Baie Verte Asbestos Mines, Marystown Shipyards, and, Mr. Speaker, I could go on. Mr. Speaker, I wish to address some of the more positive successes within the District of Humber West which I am proud to represent. Corner Brook is the second largest city in Newfoundland and was built around the pulp and paper industry. Bowaters, one of our major employers, announced three years ago they were pulling out of Corner Brook.

This news was a total shock to residents of the West Coast. However, due to the efforts of this Government and the personal intervention of Premier Peckford, we are seeing the revitalization of our mill under · the new ownership of Kruger Inc. , now known as the Corner Brook Pulp and Paper Limited. When viewed in retrospect the success achieved a few years ago at Corner Brook with the addition L21 February 26, 1987 Vol XL of Kruger Inc. is certainly even more dramatic than what might have originally been believed. The total modernization project is ahead of

schedule and, when compl·eted, will have cost in the vicinity of $200 million. Construction of the fine arts degree-granting institution at Grenfell College, at a cost in excess of $5 million, will recommence this Spring. This is further proof of this government's commitment to Corner Brook and area. The establishment of this degree-granting facility has created renewed confidence and stability for our area.

I look forward with confidence in the near future when Memorial wi 1.1 be offering other arts and science degree programmes at Grenfell College in· accordance with government's stated policy of providing increased access to post secondary . educational opportunities. I will continue my efforts towards expansion of the existing l''isher Technical College soon to become a provincial institution known as The Fisher Institute of Applied Arts and Technology. Mr.

Speaker, the government's greatest challenge and indeed the greatest economic and social problem facing our Province today, continues to be the need to create meaningful employment opportunities for all our residents, especially our youth. I am co~fident measures outlined in the Gracious Speech from the Throne today will go a long way in reaching our goal. In conclusion, Mr. Speaker, it is a pleasure and an honour for me to second the motion that a committee R21

be appointed· to draft a reply to the Gracious Speech from the Throne. Thank you. SOME HON. MEMBERS: Hear, hear! MR. SPEAKER: The han. the Opposition. SOME HON. MEMBERS: Hear, hear! MR. BARRY: Leader of the . Mr. Speaker, first of all I want to congratulate the mover and seconder for the efficient way in which they performed their duties. I want to welcome the member for St. John's East Extern (Mr. Parsons) as a new member of this House and we look forward to working with him.

I see that we have a refreshing new approach where he is not afraid to acknowledge where a member on this side may have made a contribution in terms of the ·welfare of the constituents of his district, and we thank him for that and we look forward to more of the same. I also want to welcome to the House of Assembly the member for St. John's East (Mr. Long). Mr. Speaker, while I am naturaily in support of the motion to draft an Address in Reply to the Speech from the Throne, regrettably I am not very much in support of the policies - I should say lack of policies -which have come forth in the Throne Speech.

I took the opportunity, Mr. Speaker, of preparing a few written notes. This is contrary to my normal practice, but I just wanted to see, by identifying the main, most important areas of attack and se.tting out my ideas beforehand, L22 February 26, 1987 Vol XL how much I would have to change these notes after hearing what was contained in the Throne Speech. I am delighted to say, Mr. Speaker, that I am going to be able to release these notes in their entirety, without change, without modification.

The first point, I guess, I would like to address is in determining the extent to which we should accept as accurate the contents of this year's Throne Speech, it is useful to look at a portion of last year's. At that time the present administration stated: "Perhaps one of the most positive events to occur has been the significant change in attitude brought about by the election in late 1984 of a new Government in Ottawa. A new spirit of federal-provincial understanding and ~a-operation has clearly emerged across the Nation ·since that time.

We now have a Federal Government that is sensitive to the circumstances, needs and aspirations of all regions and walks of life in this Country. Acrimony has given way to harmony, flexibility has replaced resistance, and co--operation characterizes this new 'rapproachment' with the Federal Government. This bodes well for the future, especially for Newfoundland which, in the past, has been unjustly relegated to second class status in the Canadian Confederation." Now, Mr. Speaker, how should we characterizes the author of such refi!arks?

I hasten to stress, of course, that while His Honour reads the Speech from the Throne, it is not His Honour who is the author. The author is directly opposite. Mr. Speaker, how should we characterize the author of such remarks? I would have to say, at R22

worse a political trickster, at best, a fool. Either the Premier callously deceived the people of this Province during the last provincial and federal elections or else he has allowed himself to be the dupe of h) .s federal Conservative colleagues . Let us look at the issue of federal - provincial relations. One of the most important issues which the House of Assembly must address this year is the proper strategy to be employed by the Province in federal-provincial relations. Is it most effective to engage _in vitriolic invective, bawling and screaming with personal attacks upon Federal Cabinet Ministers?

This did not work in the · case of trying to prevent the use of factory freezer trawlers, neither has it worked to bring about a cancellation of the Canada - France Fishe~ies Agreement: When the shouting dies, the res _ource loss and the unemployment remain. And what does such an approach do in terms of obtaining the federal assistance which the Premier claimed is essential in order to avoid bankruptcy within two years? We must f lrmly defend our resources, Mr. Speaker, and we must insist upon full consultation from Ottawa. But this can be done without burning all financial and other bridges.

The Premier says it is the squeaky wheel that gets the grease. I remind the Premier that often the squeak occurs just before the wheels come off. I also caution the Premier against forgetting, when he goes to Ottawa begging that he who pays the piper calls the tune - who is going cap in hand to ottawa now? Let us take a look at the L23 February 26, 1987 Vol XL Province's finances. The Premier has confirmed earlier Liberal Opposition statements that the Province is heading for financial disaster under his administration. Bankruptcy within two years is the Premier's prediction.

Now, the Premier ha::> in the past been known to play a little game, to play up the poor state of the Province's finances before bringing down a budget so that a bad budget is then accepted with a sigh of relief by a population conditioned by then to expect much worse. The extreme picture painted by the Premier in the past week, however, cannot be viewed as just another such manipulative statement. The consequences of this statement on the Province's ability to borrow and on the ability to attract investors is just too damaging . We must assume that this time the Premier was speaking the truth.

And, indeed, statements by the Minister of Finance · (Dr. Collins) as to the tremendous increase in the per capita debt "in the Province under the present administration would tend to confirm this, statements where we see the per capita debt · and these figures are amazing - go from $1633 in 1971 - each man, woman and child in 1971, if you divided up the Province's debt, would have had to pay back $1633 - by 1979, after seven or eight years of Conservative .rule, it had increased to $4572 that each man, woman and child would have to repay if the provincial debt were paid off.

Now, gue::>s what that has gone to in 1986? The Minister of Finance knows. MR. TULK: About $60.00. MR. BARRY: No, more than $6000. R23

MR. TULK: Seven thousand? MR. BARRY: More, than $7000. It is $8012, five times as much as in 1971. The pe~ capita debt has quintupled since 1971 under· the creative and imaginative fiscal policies of membe~s opposite. So, Mr. Speaker, we have to assume that the Premier speaketh the truth for once when he says that he is leading the Provice to financial ruin within the next two years, that the wheels are off, we are going into bankruptcy unless there is a significant infusion of cash from ·the Government of Canada.

We believe the Premier's initial remarks, despite his attempts to press the erase button. on them a few days afterwards, presumably because the Minister of Finance took him aside and whispered in his ear and told him what was happening in the bdnd markets and how this was affecting the credit rating of the Province and how it was affecting investor confidence.

That is an amazing confession of failure, a serious self-indictment of the p~esent administration's financial policies, for the Premier to come out and say that since 1979, instead of bringing about an improved position he has been bringing the Province closer and closer to bankruptcy. Now, all the blame does not J:"est with Ottawa. The incompetence, the mismanagement, yes, and the political patronage of the present administJ:"ation have played a large role in bringing about this serious financial crisis, and these we will be documenting as the session unfolds.

The following table shows the affect of this administration's policy. In 1971, picture this L24 February 26, 1987 Vol XL now, the total provincial debt was $855,435,000. By 1979 it had gone to $2,601,700,000, and since 1979 it has come close · to doubling under the present Premier and by 1986 it had ·gone to $4,487,000,000. SOME HON. MEMBERS: Shame. MR. BARRY: So, from less than $1 billion in 1971, when the Conservatives took over from the Liberal Party, from less than $1 billion, when they were condemning Mr. Smallwood, for excessive expenditures, and now we see them multiplying by five times the debt.

And what is the result? You would not mind if they were spending money and we could see they were creating jobs and getting the Province out of its financial crisis, no. All that has happened is that they have managed to get. through a few elections by political patronage, by throwing the bucks away like drunken sailors in the various districts, and the end result is what we see today, a premier going crying, with cap in hand to Ottawa saying, 'Bail me out. Save me fr'om the affects of my financial mismanagement, my incompetence and my political patronage.' SOME HON. MEMBERS: Right on. MR.

BARRY: Now want can be done to improve our economic position? We do not have to blame the Premier, because the Premier has made his confession. He has told. it like it is. MR. TULK: Tha_t is right·. confession. MR. BARRY: He made his R24

The wheels are off, Mr. Speaker. What can be done to improve our financial position? Well, very, very . simply, we must put people to work. Mr. Speaker, 1 regret to .say that with few exceptions, which we are delighted to see, that the Premier has accepted just a couple of the many ideas we have been putting forth from this side of the House. I am delighted to see a step towards on apprenticeship and training programme by subsidization, 50/50 funding with employers who create jobs. Now that is a step in the right direction. But, Mr.

Speaker, apart · from that, and apart ft·om one or two other extracts ft"om the House Royal Con~ission, we do not see any wholesale implementation of the recommendations of the House Commission on Employment and Unemployment. And, Mr. Speaker, particularly what we do not see is an overall, comprehensive economic plan for this Province. The Premier has failed once again in that Throne Speech to set forth an economic plan. So we must put people to work. Putting people to work will broaden our tax base.

Federal assistance will be needed to create jobs, let us not forget that, and that assistance will only come if the Province comes forward with a proper economic plan. It is not in that Thr'one Speech. The plan is not there to get the attention of the Govet"nment of Canada where they can say, 'Wow! Yes! Now this is something that we can put our money into. This . is something that we can get set"ious about, cracking the back of unemployment in Newfoundland and Labrador.' I have seen the Prime Minister and the Minister of Finance (Mr.

L25 February 26, 1987 Vol XL Wilson) in Ottawa throw up their hands and say, 'We admit we are not spending enough in Atlantic Canada. We are trying to flnd ways of spending more.' Is the Premier of this Pt"ovince and his administt"ation showing them how to do that? ~Jo way! There is no economic plan in that Throne Speech, Mr. Speaker, and that is a shame. Now, we should, in this House of Assembly, during this session, use our time to put such an economic plan in place. The recommendations of the House Commission on Employment and Unemployment could form a good part of the basis for the debate on such a plan.

The plan should set forth yearly objectives for job creation. The Premier should have the courage to publicly account each year on the degree of success in meeting the objectives and in fulfilling the so-called 'mandate to create jobs' he asked for in the last election. I thought my ears were deceiving me, but the member . for Fogo (Mr. Tulk) confirmed that t heard r'ight. I heard in this Throne Speech the Premier say, two years after the last election, afh~r he got his mandate to create jobs, that he is still looking around for a way in which to create jobs.

The House · Royal Cowmlssion Report, that $2 million report prepared by the Premier's appointees, confirms that the . Premier is only 43,000 jobs behind the objective that he set in 1979 of cr'eating 40,500 jobs. He is only 43,000 behind that objective. We have approximately 3,000 fewer jobs today in this Province, according to the House Commission Report, than we had when the Premier took office in 1979. Now, Mr. Speaker, that is not good enough. R25

If I could just comment for a moment on the state of democracy in this Province, development of a proper economic plan will only occur if there is a full and open public debate and pt"oper feedback from the general pub 1 ic. This is i.mpossible with an administt"ation which, through attempts ~o manage the news, seeks to prevent differing points of view ft"om being heard, blocking the printing of Opposition reports on matters such as the House Commission on Employment and Unemployment. At this time, Mr.

Speaker, I would like to take the opportunity of tabling this report, which the Liberal caucus has prepared, dealing in a systematic fashion with each and every one of the 240 recommendations of the House Royal Commission. I would like to me·asure this document inch by inch, page by page, with the Throne Speech we have just received and see how many of the . recommendations of the House Royal Commission were dealt with ·in that Throne Speech. Mr. Speaker, we do not have to take a backward position. SOME HON. MEMBERS: Hear, hear! MR. BARRY: I would like to table that, Mr. Speaker.

Despite the fact of having the printers downstairs, who had the free time and had· the opportunity to do it, they were told not to print that document, to keep it from the general public of this Province. I would ask Your Honour if he would see that copies are made available to members of this House of Assembly because, Mr. Speaker, it deals with every one of those 240 recommendations, not the three or four or five or six dealt with in the Throne L26 February 26, 1987 Vol XL Speech by the Premier and his administration.

So whether it is blocking the printing of Opposition repot"ts or instt"uctlng Newfoundland Information Services not to distt"ibute news rel~ases critical of administration po lie ies, these are undemocratic measures which lead to an unhealthy political situation and hamper the dissemination of information necessary for full and informed debate and decision making.

This situation is made worse, of course, by the fact that we see unlimited spending from the Premier's Office on political propaganda brochures you see them in the liquor stores all around the Province -produced, by the way, by unlimited political staff attached of the Premier's Office. I was amazed, actually, when I found out in Toronto there a couple of weeks ago that the Office of the Premier of Newfoundland and Labrador. has approximately double the political staff of the Premier of· Ontario. Last year the cost of the Premier's Office exceeded $1 million.

We now have our own million dollar man right here in the House of Assembly. In othet" pt"ovinces, such as Ontario and in the federal House of Commons, political support staff and resources are allocated on the basis of the proportion of members elected, not on the Premier's open--ended basis, the basis upon which he oper-ates in this Province.

It is not healthy, it is an attempt to get only one side of the political message ·out, it is an attempt to block the other­ side of the coin on most .issues, and the end result is what we see today, an administration bankrupt of ideas, devoid of any measures that can haul them out of the R26

financial mot"ass they have gotten themselves into. That is a dit"ect t"esult, Mt". Speaker., of the undemoct"atic approach which the Premier has _ been taking, the petty, stingy, mean approach he has been taking in tet"ms of the resources made available to the Opposition in tet"ms of getting information, such as its t"esponse to the House Royal Commission, disseminated to the people of Newfoundland and Labt"adot". Now I would like to make a few remat"ks on fishet"ies policy, Mt". Speaker'. The heat"t of any economic plan fat" this Province must be a viable inshore f ishet"y.

The Libet"al caucus is concerned that the Premier should agt"ee to pdvitization of Fishet"y Products Intet"national and the locking in of fish quotas fat" that company before we know whether' thet"e at"e adequate quotas to peLmit an economic inshot"e fishet"y for' our thousands of inshore fisheLmen. Fot"eign ovet"fishing must be contt"oll'ed and Canada's fisheries conset"vation laws must be enfot"ced with the utilization of tt"ade sanctions and other' economic, cultut"al, diplomatic and, if necessat"y, police and coast guat"d action.

We will be suppot"ting all measut"es to bt"ing about cancellation of the Canada-France Fishet"ies Agreement, and I thank the Premier' for' _ acknowledging a couple of weeks ago in a letter to me that out" assistance had been helpful in getting the message act"oss that the people of Newfoundland and Labt"adot" will not put up with this type of sect"et agt"eement making without consulting the Pt"ovince on such a basi~ t"esout"ce. I thank acknowledging the that Pt"emier fat" the Opposition L27 February 26, 1987 Vol XL has been thet"e fighting this issue on Newfoundland and Labrador's behalf since it became public.

But we will be asking why the Premier and his Minister of Fisheries (Mt". Rideout) themselves agt"eed I stt"ess themselves agreed - to ~he tt"ading of Northern cod off Labt"ador to Ft"ance in December' instead of t"equit"ing Canada to enforce its laws against overfishing. The Premier and the Minister of Fisheries fat" Newfoundland and Labt"adot" in December, a month before the Pt"emier went public, had agt"eed to trade Northern cod off Labrador to France instead of insisting that the Government of Canada enforce its flshet"ies conset"vation laws. MR. YOUNG: We did not do that. MR. TULK: You did. MR.

SPEAKER: Order', please! MR. BARRY: It is documented. You did it. MR. SPEAKER: Ot"der, please! MR. BARRY: It. is th ere. Now why did the Pt"emier agt"ee to the pt"ocess. of offet"ing the French pirates bribes instead of insisting that the laws of Canada be enfot"ced? And why did the Premier permit the Paris· meeting to go ahead without the presence of Newfoundland representatives when he knew that the meeting was being scheduled and that Northern cod was on the agenda? SOME HON. MEMBERS: R27

Hear, hear! MR. BARRY: Did he feel that he needed an issue to capture and stop his declining popularity? Is that the reason that he let that meeting go ahead, knowing that it was scheduled, Mr. Speaker, and _ knowing that Northern Cod was on the table? And, Mr. Speaker, why did the Premier of this Province permit his personal feuding with John Crosbie to endanger provincial interests in the days leading up to the Paris meeting because of inadequate communication with our representative in the federal cabinet? Is that true or is it not true? PREMIER PECKFORD: Not true. MR. BARRY: Mr.

Crosbie is not telling the truth, is that what the Premier is saying, when Mr. Crosbie says that the Premier had not even contacted him after he went public for several weeks? On another issue, Mr. Speaker, fishermen in the Province feel threatened by the Forget Commission -or forget Commission; let us forget Forget -and by other indications that their access to unemployment insurance is being threatened. We will want to know the Premier's views on this issue also. Will he this Session -well, I think we have already gotten the answer to this question, this is one

section that could have been modified -accept the resolution we, the Liberal Opposition, presented last year for a guaranteed annual income and ensure that such a system is implemented before the UI system L28 · February 26, 1987 Vol XL is tinkered with? Now the answer from the Throne Speech is that he is going to do something. What is he going to do? He is going to study it. Well, the fishermen of Newfoundland and Labrador ace jumping up and down in the streets today, Mr. Speaker, after-hearing that, that the Premier is going to appoint a task force to study this again. MR. TULK: Drastic action. MR.

BARRY: Why do you not study free trade if you want to study something? Why do you not go study free trade? MR. TULK: That is blowing your mind! MR. SPEAKER: Order, please! MR. BARRY: Now, Mr. Speaker, if I could turn to rural development, any workable economic plan for this Province must recognize the importance of rural development~ of creating jobs where people live.

Despite the pious words of suppor-t from the present administration, the actions of the Premier and his ministers, such as their appr-oach to the Baie d'Espoir salmon hatcher-y -wher-e they decided to give control to a large corporation rather than local residents -does not hold out much hope for a proper rural development policy from the administration opposite. They are doing exactly the opposite of what the House Royal Commission has said they should do in order to get rural development reinvigorated and revitalized in this Province,, exactly the opposite.

Instead of showing that they respect the ability of R28

Newfoundlanders and Labradorians to create jobs and respect the ability of people to determine their own destiny, . they are taking the salmon hatchery out of the hands of the · people of Bay d'Espoir and passing it over to a large corporation' and it is the wrong thing to do, Mr. Speaker. SOME HON. MEMBERS: Hear, hear! MR. BARRY: Now, do not believe me, Mr. Speaker.

Let us accept this statement from the Newfoundland and Labrador Rural Development Council which they quote in their submission to Cabinet: "A combination of political apathy and bureaucratic aloofness has · seriously handicapped the efforts of development associations and, un .less remedied, will prevent them from reaching maturity." Mr. Speaker, not only are groups such as the Rural Development Council condemning government, it should be noted that time ·and time again in that House Royal Commission Report we see a complete and utter condemnation of the approach of the present administration's policies.

Time and time again we see the Royal Commission saying that their policies are not working, that they need new approaches, that they need new direction, Mr. Speaker. The last seven to eight years, under the present Premier and his administration, the Royal Commission has indicated very little has been done, too many bad policies have been implemented and not enough done in terms of good, progressive approaches.

I can tell members opposite it is not progressive, it is not good, to take away control from local residents of small projects, such L29 February 26, 1987 Vol XL as we see here they are attempting in the field of aquaculture, and turn ~hem over to a large corporation. It is a bad, bad mistake. Now, if we are going to p rev en t the further traumatizati on of lhis Province, if we ar·e going to get away from this 'overpass syndrome' that is developing, the view that urban Newfoundland is prospering as the expense of rural Newfoundland, we must set rural development as the first priority in any economic plan.

If I could just turn to a few of the major projects very briefly, the Liberal caucus believes that a pcoper economic plan must ensuce that viable major industrial projects move ahead at the same time as rural development is revitalized. Although only in power again for less than fifteen months, Premier aourassa of Quebec ha~ already finalized ari agreement to ·supply . $15 billion in electricity to United States companies foe- a massive new power development in Quebec- af~er fifteen months! r,Je see, Mr.

Speaker, a Premier, going on eight years in power, who, despite promises from the Prime Minister 'that he would intervene to help finalize the details, had been unable to get either a better deal on the Upper Churchi 11 or a new development of the Lower Churchill. MR. DAWE: You were in charge of it. MR. BARRY: Yes. With my hands tied behind my back with individuals such as that memb~r in Cabinet. We are only months away fr·om having to expend vast sums on new generating source and it looks as R29

though we will have to expensive sou~ces othe~ Lab~ado~ Hyd~o. go to than Lack of negotiating been the hallmark of ability has this Premier and it is costing the Province a great deal both in lost dollars and in wasted human resources. We will be seeking answe~s as to why the p~esent administ~ation is failing so mise~ably in the hyd~o field. We will be u~ging immediate new app~oaches to Quebec to get hyd~o development going. Also we must question the adrninist~ation's failure to bring about a start on the Hibernia oil development.

The Atlantic Acco~d was p~omised before the last provincial election, and it has not even been enacted into law yet by the Canadian Parliament. Jobs we~e supposed to have been in place since 1985, .and instead . we still await an agreement between Mobil and federal and the provincial governments. Explor·atory dr-illing has almost disappeared off our coast and the service companies and their jobs have largerly disappeared from the Province. The delay in arriving at a Hibernia agreement stems largerly from the failure of the federal government to give security of Canadian oil supply a sufficiently a high priority.

We will be asking why the present administration has not gotten Hibe~nia moving. It is time that the people of Newfoundland and Labrador were given full information on the cur~ent status of Hibernia negotiations. In closing, M~. Speaker, I would like to say that in our desire to see economic prog~ess we must not lose sight of those human things which make a society special. L30 February 26, 1987 Vol XL As that great Liberal Prime Minister Laurier said, the measure of any society is how it treats its aged and its young.

On that test we will show that the present administration is not doing very well today in this Province. Many of our senior citizens are being devastated by high heating and drug costs. Our youth are a forgotten generation being forced to leave the Province for work. And the single young people who stay and are unemployed are ignored by the present administ~ation. I was very disappointed, since I was expecting to see in the Throne Speech that the prog~amme of the Department of Social Services would be expanded.

I understand it is being loosened up somewhat, but I thought we would hear an official statement that this programme is being expanded to make jobs available for young single people as well, who right now, I can tell you - I have them over on Bell Island - they have no money, they are living with parents who a~e existing, you cannot say living, on old ·age pensions, and they do not have enough money to get the fer"ry back and forth from Bell Island to look fo~ work. They do not have enough money, M~. Speaker, to incur the long distance phone calls to look for work.

They are utterly pitifully trapped, and members opposite are doing nothing to cure this type of situation. Twenty thousand, Mr. Speaker, of our young, creative, energetic, vital Newfoundlanders have left this P~ovince. · SOME HON. MEMBERS: Shame. MR. BARRY: We have a massive hemor~hage going on here, a brain drain, and, R30

Mr. Speaker, it is time that we did something about it. MR. MITCHELL: Too bad it is not your brain. MR. BARRY: And that is as much as members opposite care. No wonder the young of this Province are turning away ft'om the member's party and looking elsewhere for ideas to give them employment, ·to give them hope, to give them a future, when you get that sort of a comedian approach to what is a tragedy, a tragedy in the district of LaPoile as well as elsewhere in this Province . MR. TULK: He thinks they are too la~y to work. MR.

BARRY: And we will pass on to the member's constituents 'his great concern for the young people when ·he makes a joke of the suffering that they are going tht"ough. Now in labour relations, Mr. Speaker, we must examine what the pt'esent administt"ation is doing which leads brothet' to fight bt"other on picket lines around this Province. Why is it that ·a Premier who seeks better consultation with Ottawa t"efuses to consult with labout' representatives at home?

And I can tell you we do not see vet'y much hope held out for new approaches when we see a Throne Speech which bas~cally says 'status quo' as fat' as labour t'elations is concerned. God help us all, Mr. Speaket', if it is status quq. How many mot'e Come By Chances are we going to have? How many more Bill 59s are we going to have, how many more Bill 3 7s, Mr. Speaker. How many more times do L31 February 26, 1987 Vol XL the working people of Newfoundland and Labrador have to go out and fight and scratch and claw to get recognition of theit' basic human dignity, Mr. Speaker?

Because we have an administt"ation that is failing to do the minimum that il should be doing in terms o[ helping the wot'ket's of this Province. Newfoundland culture has received t'ecognition from time to time by this administration, but only lip service in terms of funding arrangements. Only a few days ago we saw the Minister of Public Works (Mr. Young) confirm that the administration has broken its promise with respect to the one per cent arts procut"ement policy. Women have been seeking equal pay for work of equal value and, again, they have only received lip service from the Premier.

We see working women, particularly, crying out for badly needed day care service and, again, funding for day care remains at a deplorable level. Well, this lack of concern for the human side of government is traditionally one of the main signs of a dying administration. We, in the Liberal caucus, will be presenting a vote of non-confidence at an early opportunity and we look for·ward to the next election, Mr. Speaker, which will see good Liberal government restored once again for Newfoundland and Labrador. SOME HON. MEMBERS : Hear, hear! PREMIER PECKFORD: Mr. Speaker. MR. SPEAKER: The han. the Premier. R31

PREMIER PECKFORD: Mr. Speaker, first of all, as other speakers have done, I want to say what a job the two members on this side of the House did, the member for St. John's East Extern (Mr. Parsons) and the member for Humber West (Mr. Baird), and to welcome the member for St. John's East (Mr. Long) into .our midst and to also welcome the distinguished clergy and distinguished guests here on the floor of the House, which is a tradition here and which I hope continues for a long time to come.

It is a long afternoon and I guess that makes it somewhat hard on some of these people who have to sit through it, especially on the floor of the House as opposed to being in the galleries, because it is much more difficult to get up and move around without being noticed. But we do thank them for being here and for being a part of this occasion, the official opening of the Legislature of the Province for this year. One of the first thoughts that went through my mind as I was listening to the Leader of the Opposition was that of wondering when he is going to be Leader of the Opposition for a day.

He had a prepared speech that he came into the House with, Mr. Speaker, and he hardly mentioned anything that was in the Throne Speech. He has ignored the new Youth Entrepreneur programme, a brand new youth programme - he just sat down and he was speaking about the youth of the Province and saying that the government is not doing anything - a brand new Youth Entrepreneur programme to help young people, provide them with money and counselling to get into their own businesses.

We are talking about a new private L32 February 26, 1987 Vol XL sector SO/SO cost-sharing of wages for any new job in any sector of the economy this year, and that will be youth as well. We are talking about our own programmes in silviculture, in fisheries and park developments, 6, 000 jobs. Forty p~H· cent have to be young people. The Leader of the Opposition gets up here today with a speech which is obviously the wish list of the Liberal Party or the wish list of the Leader of the Opposition. There was no mention of any of the things that have been announced today in the Throne Speech to do with education.

Not a mention that we are going to bring a new entrepreneurial and business concept programme and a new Newfoundland awareness programme curriculum into the school to encourage junior achievement programmes; a review of our whole teacher training programme at Memorial University to ensure that the teachers who are teaching our students are equipped with what is necessary for this kind of a society in tomorrow's society. I do not know what the Leader of the Opposition was doing. He was not responding to the Throne Speech.

If it was not a formal day, the House Leader could have gotten up on about fifteen or twenty occasions with a point of order because the Leader of the Opposition was not being relevant to the subject that was at hand, which is the Throne Speech, and the twelve new initiatives that we are taking in this Throne Speech. SOME HON. MEMBERS: Hear, hear! PREMIER PECKFORD: Let me first deal with what the Leader of the Opposition had to say, in five or six minutes, and R32

then I will deal with what was really in the Throne Speech that the. Leader of the Opposition chose to ignore. First of all, I want to address myse 1 f to the issue that the Leader of the Opposition raised as soon as he got into his address, and that is the question of federal/ provincal relations. Mr. Speaker, it is well known in this Province now, over the last seven or eight years, that this party stands up for this Province when there is a Liberal Government in Ottawa or when there is a P.C. Government in Ottawa. SOME HON. MEMBERS: Hear, hear! PREMIER PECKFORD: Unlike the Liberal Party, Mr.

Speaker, when we were here in this House fighting on the restructuring agreement with the Liberal Administration in Ottawa with not .one bit of support from people opposite. They slavishly went al"ong with their federal counterparts, even when it was going to be not in the best interests of the people of Newfound-land and Labrador. That is what they did. And, Mr. Speaker, they did it on Hibernia, too.

It was nothing but attack, attack, attack, driving all the oil companies away - 'we cannot sign a deal, we cannot do this.' On every occasion the Liberal Party put the Liberal Party of Canada ahead of the people of Newfoundland. Mr. · Speaker, this will never happen on this side of the House. SOME HON. MEMBERS: Hear, hear!

PREMIER PECKFORD: We make no apologies to the Leader L33 February 26, 1987 Vol XL of the Opposition, we make no apologies to anybody in Newfoundland when, on fundamental and basic issues like the Canada/France Fish Agreement, we stand shoulder to shoulder as Newfoundlanders, even asking the Liberal . Party and the New Democratic Party to stand with us, and we compliment them for standing with us. But if there was a Liberal administration in Ottawa today, the Liberal Party would not be standing shoulder to shoulder with us, Mr. Speaker. SOME HON. MEMBERS: Hear, hear! PREMIER PECKFORD: Mr.

Speaker, it is a t"eally odd occasion to hear the Leader of the Opposition complain about the fact that federal/provincial relations are not what they should be because we have the same party in power in Newfoundland and Ottawa. We will support any measure by any government in Ottawa which we think is in the best. interests of this Pr"ovince. That is what we were. elected to do, that is what we are going to continue to do, Mr. Speaker, regardless of the political colour in Ottawa, because Newfoundland and Labrador comes first 11nd that is where our allegience must be. SOME HON. MEMBERS: Hear, hear!

PREMIER PECKFORD: It is too bad we cannot find another political party to take the same kind of approach. If we could, we would be a lot further ahead today. It was not because of help from the Liberal Party opposite that we got the restructuring agreement we got. At the time we got it - I said it was a most important agreement - R33

there was a Liberal Government in Ottawa and we fought them hard; we had to get down to hotel rooms in Toronto to get it, with Michael Kirby on the phone to the Prime Minister overseas, where they backed away from closing out Burin. When we said it had to be a secondary processing plant, they completely said no chance of Burin ever opening and Grand Bank and Fortune had to close down and all the rest of it. Now today; Mr. Speaker, what do we see? The restructuring agreement is working, and FPI, which the Leader of the Opposition (Mr. Barry) condemns: 'It should not be privatized.

No, it should not be privatized.' Of all these inshore plants the party opposite said, 'Oh, if they sell these fifteen plants, the inshore fishery is over.' Every single plant has been sold by private capital, no money from government, and all of them are working, Mr. Speaker, all of them are working. SOME HON. MEMBERS: Hear, hear! PREMIER PECKFORD: Th~t was accomplished by a government which cannot negotiate, Mr. Speaker. We held out and held out until we got the right agreement on the fishery and now we have fourteen or fifteen plants gone back to the private sector, to other employers, to other investors.

Meanwhile, FPI is left with this core of plants and is now going to the marketplace to raise money. There is all the protection in the world there for Newfoundlanders, protection all over the place in the agreement. We are getting an inshore fisheries agreement out of it, as well, and seven new trawlers to be built in Marystown. What do we have to do, Mr. Speaker? We held L34 February 26, 1987 Vol XL out through Christmas.

The federal government wanted us to sign ad agreement in which we might have gotten one or two trawlers built in ~arystown and no inshore fisheries agreement, but. we held out and now we have r'PI being privatized, seven trawlers being built at Marystown, and an inshore fisheries agreement before this year is over. SOME HON. MEMBERS: Hear, hear! PREMIER PECKFORD: So I am very, very surprised at what the Leader of the Opposition has to say about Fishery Products International. Why is it, Mr. Speaker, when we are successful, which is very odd in our history, we cannot slap one another on the back?

Why can we not give credit where credit is due? Here is a bunch of Newfoundlanders, managing Fishery Products International who divested these other plants, some to Newfoundlanders and some to outside investors. We have a success story on our hands and everybody is afraid to say we have a success story. If it was somebody from away, we would be jumping up and down, especially the Liberal Party. I just cannot understand it. We are very of !:.en our own worst enemies. On the question of finances and democracy I am not even going to respond to the Leader of the Opposition.

He thought a budget was coming down today instead of the Throne Speech. He is getting tangled up in what is happening here in the House. On the question of the Canada/France treaty the Leader of the Opposition is trying· to contend that we knew about ·the meeting in Paris. We can prove, R34

document, we have done it, to the point where even the Deputy Prime Minister and the Prime Minister of Canada have had to admit that we were not informed. I have had the six or seven officials, who it was alleged were contacted, write out a declaration swearing that they were never contacted. Everybody in the federal system knows we were not contacted. We did not know about the Paris meeting at all. We did not know about the Paris meeting, Mr. Speaker. All of the correspondence, Mr. Speaker, has been made public: the letters we wrote to Mr. Crosbie, we wrote to Mr. Siddon, we wrote to Mr.

Clark, we wrote to the Prime Minister, right on through from last August, if you want to take that as a date, until January of this year. I do not know where the Leader · of the Opposition is getting his information, but it is completely untrue. There is ongoing communication with the Minister of Transport, the minister in the federal Cabinet from Newfoundland. The Minister of Finance (Dr. Collins), in the latest argument about it, called the Minister of Transport's (Mr. Crosbie) office and told him that he was coming to Ottawa and that he had a document he wanted to deliver to him.

The Minister of Transport said that he would not be in his office, that he was coming to Newfoundland. So the Minister of Finance had the documents delivered to the Minister of Transport's office here in town. Then he went to Ottawa and met with the Minister of Finance (Mr. Wilson), after the Minister of Transport had received the documents. In a second approach by the Minister of Finance he, himself, actually gave physically the L35 February 26, 1987 Vol XL second piece of information, or paper, or document to the Minister of Transport himself, personally. So we have communicated, Mr.

Speaker, and we will continue to conununicate, but, at the same time, we will also continue to argue if there is an issue on which the federal government is taking a position which is injurious to this Province. We have no choice but to do that. To do otherwise, would be unfair to the people who elected us here. I get a great charge out of the Leader of the Opposition talking about rural development. Unbelievable! If you want to go back in history, it was the Liberal Party that tr'ied lo destroy rural Newfoundland, Mr. Speaker. How soon they forget! How soon they forget! SOME HON. MEMBERS: Hear, hear!

PREMIER PECKFORD: Now, Mr. Speaker, there is something wrong in Bay d'Espoir. The Leader of the Opposition should know better. There is something wrong in Bay d' Espoir. Who built the salmon hatchery that is in Bay d' Espoir now? Who helped spearhead it, besides the Rural Development Association of the area? It was this government and the Minister of Rural, Agricultural and Northern Development (Mr. Aylward) and the Minister of Fisheries (Mr. Rideout). That is how that $2 million hatchery got there in the beginning. We are not interested in rural Newfoundland, Mr. Speaker.

That hatchery was built on Signal Hill .- was it not? - it was not built in Bay d'Espoir with the help of Newf9undland and Labrador Hydro. R35

The Leader of the Opposition is now complaining because we are trying to get a marriage between public money, coming from the taxpayers, and private money so that we will have that kind of dynamic working in Bay d'Espoir, creating jobs for the people of Bay d' Espoir to eliminate the unemployment· problem they have down there. This is terrible! You should never be going after private enterprise and private money to marry with public money. What did we do in St. Lawrence? We married private money with public money. What did we do in Hope Brook? We married public money with private money.

Is it somehow evil and wrong? I thought the Liberal Party was in favour of capitalism, in favour of private sector, and in favour of this kind of thing. Now they are condemning this government because ·we have built a salmon hatchery and because we want to attract investment. Out of one side of the han. Leader of the Opposition's mouth he says we have got to attract investment, and out of the other side of his mouth he is saying, 'Do not do it in Bay d'Espoir.' MR. TOBIN: Totally inconsistent. PREMIER PECKFORD: Totally inconsistent, Mr. Speaker. Labrador hydro.

The Leader of the Opposition knows better than to say what he said on Labrador hydro. I remember on a number of occasions he said, when he was over here, 'Premier, I can solve that problem. I would like to have a go at Quebec.' And what was my answer? 'Go to it! ' And there are people here on this side of the House who can remember the day that that was said, 'Go to L36 February 26, 1987 Vol XL it!

I wi 11 be right behind you and this Cabinet will be right behind you if you think you can, with that Minister of Energy in Quebec, do something.' It was only about seven or eight months later he had to come back and say, 'Boy, I got the same answer as you got. I cannot get anywhere with those fellows.' So what How are going? have is he complaining about? we to get Labrador hydro What we need to do is we to stick with the fundamentals. I cannot help it if it is under the jurisdiction of the federal government. Am I attacking the federal government now? Am I being confrontationist now?

Am I being unreasonable if I tell a federal government, of whatever political stripe, that the transmission of electricity should be handled the same way as the transmission of oil and gas? I am not allowed to say it because I will be confrontationist, I will drive· investors away ft"om the Province, all I want to do is flght. That is the kind of image they then say I project. What am I supposed to do? Do you want me to sell it away agai.n the same way as they sold it away before, back in 1965 -1968? SOME HON. MEMBERS: Hear, hear! PREMIER PECKFORD: Sure, Mr.

Bourassa sold $15 billion worth of power down in the United States, ·because he can transmit it from Quebec to the New York border. He does not have to go through another pt"ovince. And if in fact he had to go through a province, I am sure there would be a new law in Canada which says that the transmission of electricity can be handled the same way as oil and gas, R36

SOME HON. MEMBERS: Hear, hear! PREMIER PECKFORD: Our p~oblem is tbat we are so small that it does not matter. MR. FLIGHT: That was Joey's problem too. MR. SPEAKER: Order, please! PREMIER PECKFORD: The lack of a negotiating ability, the Premier here has no ability to negotiate, they say. The Restructuring agreement, FPI - not a bad deal, Mr. Speaker. The Atlantic Accord, not a bad deal, but you people opposite said we could never do it.

Kruger in Corner Brook, ·not a bad deal, Hope Brook gold mine, not a bad deal, and 186 Newfoundlanders working at Come By Chance today without one dollar from the Government of Newfoundland and Labrador. SOME HON. MEMBERS: Hear, hear! PREMIER PECKFORD: And, Mr. Speaker, unfortunately we are still paying off the $49 million ·that that crowd over there put into it and never got a cent back. SOME HON. MEMBERS: Oh, oh! MR. SPEAKER: Order, please! PREMIER PECKFORD: Thank you, Mr. Speaker. MR. SIMMONS: We wonder who owns it. PREMIER PECKFORD: L37 February 26, 1987 Vol XL You do not have to worry.

It is not a company like you people were used to in the past. There are no John C. Doyles and Panamas in here. This is clean and aboveboard. And not only the Liberal Party, but a lot of people in the press, and a lot of people in Newfound land and Labrador still do not believe that that deal is done. They still believe that there is something shady somewhere. One of these days we are going to find out, I have heard some of the people say, that Peckford got shares in that or Ottenheimer got shares in that. We have to have shares in that because it is never done in Newfoundland like that.

You do not get an outside investor to come in here, pour out $100 million or $200 million with no money from the government, no tax concessions. What do you mean? This has never been done before, Mr. Speaker. It is unbelievable. And we cannot negotiate now because we do not have a deal ·on Hibernia . The price of oil was down to $12.00 or something a barrel and now i..t is back up to $18.00. We have to negotiate with four or Eive of the companies plus the federal government. The federal government never moved its position for over a year and only now, in the last few days, has.

We have been meeting with them almost monthly for the last year and a half to move and to get serious about the negotiations, · which apparently now they have. Is that the fault of the Government of Newfoundland and Labrador? Oh, no, Mr. Speaker. This government ignors the agent. I do not know how much our indigent drug programme is costing this year, $10 or $15 million, with the drug card that we pr·ovide to a lot of people who do not get the old age supplement, and to others. It is millions and R37

millions of dollars. The han. the Minister of Social Services (Mr. Brett) this present year is spending $27 million taking people off the sqcial ser:vices and puttlng them to work. How many people this year did we put lo work? Twelve thousand this past year, or unsung victory in social policy. Here is the Leader of the Opposition over there talking about the debt for the last fifteen or twenty years. Should we not have built the hospital in Port aux Basques? MR. BARRY: Are we bankrupt? MR. SPEAKER: Order, please! PREMIER PECKFORD: Should we not have built the health clinic on the Labrador Coast, in Forteau?

Should we not have built the other hospitals around the Province or the other senior citizens' homes? On the· one hand they are saying that we spent too much money and on the other side of their mouth. 'We want you to spend more,' all in the same speech, Mr. Speaker. Not, what are we trying to do, Mr. Speaker, besides all of those larger projects that we talked about? MR. CALLAN: You should bring Bob Cole back. PREMIER PECKFORD: Mr. Speaker, I cannot speak if I am going to be interrupted by the hon. member opposite continuously. May I seek you guidance to have silence while I finish? MR.

SPEAKER: L38 February 26, 1987 Vol XL Order, please! PREMIER PECKFORD: Besides the projects we are now involved in, Mr. Speaker, like we talked about in the Throne Speech, ft"om the Hope Brook gold mlne to St. Lawrence to Come By Chance to Baie Verte and all the flsh companies that we are helping in many of the hon. members' districts, do they realize -some of them do not, I suppose, we only do things politically, Mr. Speaker: -where is Fortune Harbour? Is it Exploits district? Where is Por:t de Grave whose district is that in? Is it on this side or that side?

George Dawe and Son Limited received, a guat"anteed loan of $50,000 fr:om the Government of Newfoundland. Where is Fogo Island, whose district is that in? I say to the han. member opposite. The Fogo Island Co-op got $500,000 from this government for their ongoing fishery. Where is Herring Neck? Is Herring Neck in the Twillingate district? .I think it is. Hert"ing Neck got $500,000 fat" Island Seafoods for: their plant tn Twillingate distr:ict. Where is Parson's Pond? Is that on this side of the House? MR. FUREY: It is r:ight next to Daniel's Harbour. PREMIER PECKFORD: It is.

I know because I was theee long befoee you. I was there as a social worker. MR. SPEAKER: Order, please! PREMIER PECKFORD: Where is Stephenville? Whose district is that· in? Is that on this side of the House or the other side of the House? R38

SOME HON. MEMBERS: Oh, oh! MR. SPEAKER: Order, please! The hon. the Premier has asked for silence and I ask hon. member-s on my right to extend that courtesy. PREMIER PECKFORD: Thank you, very much, Mr. Speaker. I know it hurts and I know, therefore, they have to be loquacious, but I did not interrupt, I think, or say one word to the Leader of the Opposition .. SOME HON. MEMBERS: You did. MR. BUTT: Very little. PREMIER PECKFORD: Well, very little. There is a difference in kind and there is a difference in degree, and you have committed a lot more in degree than we have.

We have not an economic policy and we ·have not an industrial pol icy, the Leader of the Opposition says. Our fisheries policy has been consistent ever since 1979. Everybody in the Province knows what it is constitutionally and what it is federal-provincially, what we are doing in the inshore fishery, what we have been trying to do, the support we are now giving a lot of small fish plants as well as larger ones, what we did at FPI, a full policy of co-ordinating and rationalizing the offshore fishery. So we are where we are today, and we have done all of those things with those medium . and large-size projects.

Now, what are we saying today, Mr. Speaker? We -are saying L39 February 26, 1987 Vol XL we have to do more. So we are going to begin in the schoolroom for the long term, and for the short term we are going to begin immediately with government-sponsored proj ec ls. ~..Je are not going baek into the job strategy programme. r:Je have taken our money out of the federal government programme because it is the ten-week syndrome thing, and we are saying to the Minister of Culture, Recreation and Youth (Mr. Matthews) and to the Minister of Forestry (Mr.

Simms), we want jobs created in the resource sector, which, therefore, are an investment to the future. So this year there will be fifty, sixty or one hundred projects throughout the government service. lf they are in fisheries, the Department of Fisheries will manage those projects, and there might be 150 or 200 ·jobs or 400 jobs there. The Minister of Culture, Recreation and Youth is charged with a total improvement of all our parts. These projects are now identified and will be announced by the respective ministers over the next couple ·of weeks, fisheries enhancement by the Minister of Fisheries and so on.

We are hoping to create hundreds if not thousands of jobs just in that field alone, using our money differently from the way the federal programme is using its money, and making sure we get four, five and six months, even longer term jobs, if.we can, into the .system. And we will do it based on our resources, not the second fence around the cemetery syndrome that we have in many of the federal programmes just called job creation. So that is a positive thing that we _ are trying to do. A new cost-shared job creation programme for the private sector: R39

If any employe~ in the P~ovince of Newfoundland and Lab~ado~ in the ~esou~ce sector o~ service sector creates one new job after March 31, we will pay 50 per cent of that person's wages -not just the resource sector, but all sectors of the economy. MR. BARRY: That is a good step. PREMIER PECKFORD: Yes, but I did not hear too much mentioned about it a few minutes ago. SOME HON. MEMBERS: Hear, hear!

PREMIER PECKFORD: We are going to leave the Rural Development Authority, which up to now could only fund and give low interest loans to resource-based industries, wide open to any entrepreneur or businessman in the Province. The amendment has been made to the Rural Development Authority reguilations, and now applications can be received from anybody around the Province in the creation of jobs for any business enterprise, it does not make any difference what it is. SOME HON. MEMBERS: Hear, hear!

PREMIER PECKFORD: The Newfoundland and Labrador Development Corporation, which usually loan~ to larger firms, is now wide open as well, not just to resource-based industries, but to any kind of an industry that creates a job. We are going to increase -and it has sta~ted to work, although it took a while for it to catch on -­ the new Venture Capital Programme in the Department -of Development, L40 Februa~y 26, 1987 Vol XL a programme that the Minister of Development (Mr. Barrett) has wo~ked very, very hard on. That is going to be increased.

We are going to start a new equity programme, as the Throne Speech said, so that entrepreneurs and business people who are gett..Lng involved in a new business, or an expansion to an existing business, do not have that heavy debt load. It can go into equity from the government and, therefore, give that business a really good chance to get off the ground when, before now, it would go under.

There will be a brand new Youth Ent~epreneur programme to try to tackle the very thing the Leader of the Opposition was talking about, that of our young people leaving the Province, which has been a traditional, historic thing that has happened from time imffiemo~ial here in Newfoundland. And then, to help, especially in rural Newfoundland but anywhere, it will be arranged to have toll free numbers established for the Newfoundland and Labrador Development Corporation -the headquarters is here in St.

John's and they have three regional offices so that if T am in Robert's Arm, Green Bay, and l am either now in business or want t.o get into business, I can pick up the phone and call and a professional on the other end, through our new computerized technology, w~ll be able to identify what I· am interested in and give names and direction to the places I should go. MR. CALLAN: The old Action Group. PREMIER PECKFORD: _ No, no. More involved and more professional than' that. Then, Mr. Speaker, so that everybody in Newfoundland wi 11 have access, we R40

will be advertising that in all the papers in the Province, and everybody will be aware that with one phone call they can get off the mat"k. Then they will be led tht"ough the ct"a:t:y maze of government but"eauct"acy to take advantage of all of these new pt"ogt"ammes as well as the existing ones not even mentioned het"e today. Hopefully, Mr. Speaker", this will help. This is not a panacea, but hopefully this will help. We do not have unlimited resout"ces. There is hardly anything going on in the Province now unless the pt"ovincial govet"nment is involved in it, hardl