February

28, 1991

HOUSE OF ASSEMBLY PROCEEDINGS

Vol. XLI No. 1

The House met at 2:00 p.m.

MR. SPEAKER (Lush): Order, please!

SERGEANT-AT-ARMS: Mr. Speaker, His Honour the

Lieutenant-Governor has arrived.

MR. SPEAKER: Admit His Honour the Lieutenant-Governor.

Mr. Speaker leaves the Chair.

His Honour the Lieutenant-Governor takes the Chair.

SERGEANT-AT-ARMS: Ladies and gentlemen, it is the wish of

His Honour the Lieutenant-Governor that all present be seated.

Thank you.

HIS HONOUR, THE LIEUTENANT-GOVERNOR:

Mr. Speaker and Members of the Honourable House of Assembly:

It is my great privilege and honour to welcome you on this

historic occasion to the opening of this Third Session of the 41st General

Assembly of the Province of Newfoundland.

This new chamber is the inheritor and the beneficiary of an

honourable and colourful history of Legislative Assemblies from the first

gathering in a downtown location through the Colonial Building and the

Confederation-era chamber on the 9th and 10th floors of this building. The

location of this new House of Assembly on the main floor of Confederation

Building offers improved access to the public which it serves, and this is an

appropriate commitment, both physically and philosophically, to guide our most

important provincial institution into the twenty-first century.

While the level of debate in any legislature is not

necessarily related to the character of the surroundings, I am confident that

this new Legislative Chamber will facilitate the interventions of all hon.

Members. With the provision of adequate facilities for the Speaker and

legislative staff, the government and opposition caucuses, and improved

technical services and working accommodations for the Hansard staff and

for the news media, the Members of this Honourable House and the people

of Newfoundland and Labrador should be well served by this new location.

In addition to the renewal of the physical environment, I am

also pleased to note that My Government is committed to a process of

parliamentary and electoral reform. A new Elections Act will be brought before

this Honourable House during this Session to reform the overall process of

electing Members to the House of Assembly and the financing of elections. The

new Act is intended to place controls on sources of election financing, and make

all political parties more accountable to the public in a more open,

responsible, and credible system which will merit public confidence in the

process of our democratic political system.

Mr. Speaker and Members of the Honourable House of Assembly:

The opening of this Third Session of the Forty-first

Legislature of the General Assembly, in this new Legislative Chamber, together

with the measures for electoral reform to which I have just referred, provide

Members of this Honourable House with a unique opportunity to focus attention on

the continuing process of parliamentary reform and the manner in which the

people's business is conducted. It is incumbent on all those who seek and gain

election to public office to discharge their responsibilities in the people's

legislature with vigour and courage in the heat of debate, but always with a

decorum that respects the traditions of parliamentary procedure and enhances the

esteem in which the institution will be held. This Honourable House is the one

institution that represents the hopes and aspirations of all the people of our

Province. Consequently, it must always be open to new ideas and new approaches

to the way the affairs of the people are administered. This Honourable House

should re-examine from time to time, its practices and procedures to ensure that

they adequately reflect the changes in our society and the expectations of our

people in light of these changes. Members of this Honourable House have

demonstrated this vision of parliamentary reform as an evolutionary process, and

it is my fervent prayer that all who sit in this Honourable Chamber now and in

the future will never lose sight of that vision. In this respect I commend the

initiative taken in the last session which established Legislative Committees to

allow direct public input into the legislative process. I believe it was one of

the most important parliamentary reforms ever introduced to this Honourable

House.

Mr. Speaker and Members of the Honourable House of Assembly:

Throughout its history, Newfoundland and Labrador has been

largely captive to forces beyond its control. External economic forces, in

particular, have a greater impact on this Province than on most other provinces

of Canada because of our traditional dependence on resource-based export

industries. The limited development and lack of diversification in our economy

have caused the Provincial Government to be excessively dependent on fiscal

depending on the economic performance of the richer provinces in the nation, and

are subject to the effects of Federal Government expenditure restraint efforts

as well as changes in the philosophical approach it adopts to regional

disparity.

Notwithstanding the fact that these external forces impact

significantly on the Province's financial position and available fiscal options,

particularly at a time when the nation as a whole is in recession, we must not

let them unduly interfere with our efforts to chart a positive future direction

for our people.

Mr. Speaker and Members of the Honourable House of Assembly:

There is much, however, to be optimistic about in our

Province today. Since My last Address to you, the historic agreements bringing

the Hibernia Project to fruition have been signed.

This most exciting and challenging project is now underway

and the economic benefits are already being felt. The Hibernia Project will be

the foundation for a long term oil and gas industry for the province. My

Government is working closely with the Hibernia consortium, the

ensure that industrial and employment benefits are maximized for the Province

and for Canada as a whole.

Over the next year, My Government hopes to continue

discussions with the Terra Nova consortium relative to the development of that

field. My Ministers are optimistic about the prospects for a development

decision for this and other offshore oil fields that will contribute to

appropriately-paced further development of our offshore oil resources.

During the past year, My Government has provided for

continued discussions between Hydro Quebec and Newfoundland and Labrador Hydro

concerning Lower Churchill hydro-electric power development. These discussions

are proceeding well, and again, while nothing can be said with certainty at this

time, My Ministers are encouraged by the general nature of the discussions and

the extent to which agreement on certain issues has already been achieved.

Mr. Speaker and Members of the Honourable House of Assembly:

The fishery has always been, and continues to be, the

economic backbone of the Province. Over the past several years, however, the

performance of this critically important industry has been significantly eroded

by changing resource management circumstances. During this period, major quota

reductions have taken place in our key groundfish stocks, with the result that

groundfish landings have declined by approximately 60,000 tonnes over the past

four years. My Government continues to have a major preoccupation with

difficulties being experienced within the fisheries sector.

It is clear that jurisdiction over, and constitutional

responsibility for, the biological management of the fisheries rests with the

press for and ensure that any fisheries management measures which are taken are

sensitive to the needs of the people generally and all participants in the

fishing industry of this Province. My Government continues to impress upon the

management goal. Any management strategy that compromises this objective will

not be acceptable to the Government of Newfoundland and Labrador.

A major contributor to the decline of our groundfish stocks

continues to be foreign overfishing outside the two hundred mile economic zone

on the "Nose" and "Tail" of the Grand Banks.

My Government shares the disappointment of the Government of

Canada over the results of its 1990 bilateral discussions with the European

Community, but remains committed to working in cooperation with the Federal

Government to seek an acceptable, permanent solution to this major problem. In

the meantime, my Ministers will continue to seize every opportunity to address

this issue directly with diplomats of the European Community.

Mr. Speaker and Members of the Honourable House of Assembly:

In light of the significant changes occurring in the

fisheries sector, my Government has, in recent months, embarked upon the

preparation of a comprehensive policy framework which should guide the industry

over the foreseeable future. This policy framework will be released in the first

half of 1991 and will address all structural aspects of the fishing industry. It

will also address the need to establish an effective joint management regime

between the Federal and Provincial Governments, which will give the Province a

greater voice in key fisheries management decisions and provide for integration

of the policies of both orders of government.

Mr. Speaker and Members of the Honourable House of Assembly:

My Ministers have indicated publicly over the past several

months, the Province's financial situation is quite strained primarily as a

result of certain federal and provincial factors affecting the Province's level

of revenue. If this trend is permitted to continue, it could seriously

jeopardize the ability of My Government to deliver essential services to our

people and to take advantage of the many economic development opportunities

which will be available to us over the next few years.

My Ministers are determined to ensure that this will not

happen. The Province must retain the confidence of the international and

domestic capital markets. Over the last few years, when the Province has been

faced with a choice between expenditure cuts and a combination of increased

taxes and higher borrowings, it has frequently opted for the latter course.

Because of substantial past borrowing and relatively high taxation levels, this

option is currently available to My Government only on a limited basis.

While some reasonable borrowing and tax measures may be

appropriate, the only realistic and responsible option available to My

Government is a broadly based program to slow the rate of expenditure increase.

My Ministers are confident this can be accomplished without unduly affecting

essential public services.

It is important that all who rely on funding from the public

purse understand the gravity of the situation. My Government is committed to

responsible management of the Province's finances and will take all steps

necessary to accomplish this objective. It is unacceptable to expect the people

of this Province to sacrifice their future to meet unrealistic demands today. My

Government is prepared to take these difficult decisions now and be accountable

for them to the people of the Province. During this Session you will be asked to

implement measures to give effect to this policy and to grant supply to Her

Majesty.

Mr. Speaker and Members of the Honourable House of Assembly:

My Government is committed to the goal of developing a strong

overall economy for the people of Newfoundland and Labrador - a goal that can be

achieved by capitalizing on the right combination of resource and non-resource

based opportunities, and a supportive government policy framework.

My Government's economic vision is that of a self-reliant

society, where prosperity builds on the innovation, productivity and creativity

of its people, it's distinctive culture, and the unique advantages conferred

through nature and geography.

My Government recognizes that the traditional resource

sectors of the provincial economy do not offer the best immediate prospects for

new job creation. They will, nonetheless, continue to play a major role in the

economic life of the Province. We must continue our efforts to rationalize,

modernize and increase productivity and efficiency in these sectors in order to

maintain competitiveness and to retain or expand market share.

It is clear, however, that traditional approaches to economic

development in Newfoundland and Labrador have met with limited success. There is

a need, therefore, to expand upon the Province's traditional industries and to

diversify the economy in general. Identifying new business opportunities will

entail mapping out specific sectors that offer the best opportunities for

growth, sustainable social and economic development, and long term employment.

In June of 1989, the Economic Recovery Commission was created

to provide My Government with advice on, and implement or assist in the

implementation of, new steps that were necessary to build the foundation for a

stronger, more regionally balanced and self-sustaining economy. Having completed

its work on the establishment of the new Enterprise Newfoundland and Labrador

Corporation, and continuing to initiate specific business ventures, the

Commission has now turned its attention to new areas in which our economy can

grow and prosper. The Commission is working closely with the Province's business

community and has identified a number of sectors where new opportunities exist

for both employment and business development, the details of which will be

released in the near future.

The Commission will continue to pursue its mandate with

determination, and My Ministers are confident that the results of its efforts

will be the significant long-term benefits to the Province that were envisaged

in the initial concept of the Economic Recovery Commission.

My Government has also recently received the final report of

the Task Force on Agrifoods. Steps are now being taken to review this report on

a priority basis and to realign long standing policy and program directions in

this area so that the agrifoods sector can make a more substantive and

sustainable contribution to employment in the Province.

Mr. Speaker and Members of the Honourable House of Assembly:

In addition to the identification of resource and market

opportunities, the process of economic development is very much reliant on

supportive government policies and an attractive investment climate generally.

To this end, My Government intends to review its policies so as to eliminate

disincentives for enterprises to adopt more efficient methods of production and

distribution in the Province.

My Government also feels that it is imperative for the

Province to develop a strategic economic plan that reflects the broad policy

directions referred to earlier in My Address. Significant work has already been

undertaken in this regard, and further work on the plan will be carried out in

the coming months with adequate opportunity for public discussion.

There are also several elements to an economic development

strategy in which the Federal Government can play an important role. These

include federal procurement practices, the establishment of a greater federal

presence in the Province and the effective co-ordination of federal regional

development spending with provincial economic development programs and

initiatives. My Government will be working diligently to maximize the role that

the Federal Government can play in harmonizing federal economic development

policy and priorities with those of the Province.

In pursuing our economic development and diversification

objectives, My Ministers will strive to ensure that the tax system contributes

to a positive business climate in the Province. To this end, My Government is

committed to undertaking a thorough assessment of the Province's existing tax

regime and will adopt reforms appropriate to achieve that positive business

climate.

Mr. Speaker and Members of the Honourable House of Assembly:

The environment in Newfoundland and Labrador remains

relatively unspoiled and must be protected in order to maintain a high quality

of life for future generations and to serve as a basis for tourism development

and attracting industry. In this context, My Government plans to identify and

implement strategies that will better integrate economic and environmental

decision- making in an effort to ensure the achievement of sustainable economic

development. The recent creation of a Round Table on the Environment and

Economy, which is composed of senior decision-makers and leaders from the

private and public sectors in the Province, constitutes a significant first step

towards the development of a consensus on how best to achieve our environmental

goals. Other environmental initiatives will be brought before you for approval.

Mr. Speaker and Members of the Honourable House of Assembly:

My Government remains committed to expediting the settlement

of native land claims. The past year saw significant progress in this regard. In

November, My First Minister together with the Federal Minister of Indian and

Northern Affairs and the Labrador Inuit Association signed a Framework Agreement

concerning the land claim of the Inuit of Labrador. This document sets out the

scope, parameters and process for the negotiation of an Agreement in Principle

within a four year timetable. Those negotiations are currently in progress.

Also, the Naskapi and Montagnais Innu of Labrador have held preliminary

discussions with both levels of government with respect to their comprehensive

land claim. My Government is hopeful that with the cooperation of all parties,

negotiation of a Framework Agreement with the Innu may proceed in the near

future.

Mr. Speaker and Members of the Honourable House of Assembly:

While My Government continues in its efforts to seek out

economic development opportunities, it will not lose sight of the importance of

maintaining the best possible level of social, health, educational and general

public services. The development of progressive social policy, however, has to

be addressed in full appreciation of the financial realities facing the

Province. This may require significantly different approaches to social

programming.

In that regard, My Ministers believe there is a need to

rationalize health care expenditures to reflect current demographic and

technological developments. This action will not comprise overall health care in

our Province. The Budget will outline My Government's plans for the health care

system.

Mr. Speaker and Members of the Honourable House of Assembly:

As My Government identifies and pursues new growth

opportunities in our economy, well-educated and highly skilled entrepreneurs,

managers, professionals, technologists and technicians will be required. Whether

the new opportunities arise in traditional resource sectors or in innovative

technology companies, one of the chief inputs to successful enterprises is a

well trained and highly skilled work force. My Government will support

rationalization within the education system as one source of funds for

undertaking long term educational improvement. The findings of the Royal

Commission on Education will be particularly relevant to this strategy. Priority

support will be given to raising proficiency in science and mathematics,

computers, communications skills, cooperative education programs and

entrepreneurship. The Department of Education has already undertaken several

initiatives in these areas.

My Government recognizes that the current economic downturn

will result in worker dislocations. Efforts will be made to minimize the effects

of job loss on individuals and their families. Our participation with the

Federal Government in the Older Worker Adjustment Program is an example of My

Government's commitment in this area. We will, inasmuch as resources permit,

continue to ensure that adjustment programs are made available to workers in

communities hard hit by economic downturns.

In the area of labour legislation, My Government plans to

proceed during this Session with amendments to The Labour Relations Act to

address the sensitive issue of double-breasting which has been the source of

much controversy in recent years. My Ministers feel that this legislation is

overdue and are confident that its passage will ensure a level playing field in

labour/management relations in the construction industry. Other amendments to

The Labour Relations Standards Act will also be forthcoming that will ensure the

fair and reasonable treatment of workers without unduly interfering with

management's right to manage productively. My Ministers intend to continue to

work closely with the labour movement and employer representatives to develop

laws and practices to maintain harmonious labour relations while ensuring fair

and full protection of the interests of the workers of this Province and a work

climate that will attract investment capital for job creating economic activity.

Mr. Speaker and Members of the Honourable House of Assembly :

The tragedy of child abuse has made it necessary for My

Government to take special action to address this serious problem. The addition

of more professional staff in the Department of Social Services has been a key

step in this process. The additional staff will help ensure early detection and

allow the justice system to take the necessary action in any given situation. As

well, the introduction of legislation to provide a mandatory registration system

for social workers will afford an added degree of support to victims suffering

the trauma of this terrible ordeal. Much more will need to be done in the months

ahead, particularly when the final report of the Hughes Commission is received.

My Government will work closely with other organizations to ensure that the

tragedies of the past are never repeated.

Family violence also continues to be a problem in our

society. My Government, through the Newfoundland and Labrador Housing

Corporation, is assisting victims of family violence to locate suitable housing

and is working closely with women's organizations to ensure programs are

responsive.

Mr. Speaker and Members of the Honourable House of Assembly:

My Government recognizes the contribution of local artists to

both the cultural and economic development of our Province and has been engaged

in an ongoing review of the report of the Provincial Arts Study Committee. While

implementation of the report must take place within the overall context of our

fiscal limitation, My Government intends to provide some modest additional

resources to this sector in the coming year. In the longer term, the Economic

Recovery Commission will be assessing other initiatives to support this

important industry.

Mr. Speaker and Members of the Honourable House of Assembly:

The national debate on Canada's constitutional future

continues unabated. My Government will again emphasize its willingness to

participate constructively in the process of constitutional change with a view

to strengthening Canadian unity and our diverse yet tolerant society, as well as

our collective ability to confront the challenges of the 1990s. My Government

has equally emphasized at all times that it is essential that the whole nation

address Quebec's legitimate concerns in a full and fair manner. We must,

however, do so in a manner that is consistent with the fundamental principles of

Canadian federalism.

My Ministers are concerned that opposing constitutional views

are so strongly held, and affect matters so fundamental to the nation, that our

best (and perhaps only) chance of achieving enduring resolution of our

constitutional problems is to convene a national constitutional convention, with

a mandate to identify the fundamental constitutional precepts that would reflect

a compromise acceptable to the majority of Canadians reasonably representative

of various parts of the country. If a compromise cannot be readily identified,

such a national convention could develop alternatives that can be put to the

Canadian people in a national referendum. It is likely that a national

referendum will be necessary in any event.

My Ministers will continue to ensure that the constitutional

interests of this Province and its people are properly represented and

protected, but in the process, we recognize the priority that must be given to

the overriding national interest.

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 in addition to the legislative measures

already referred to in this Speech.

A full listing of My Government's legislative agenda for this

Session of the House of Assembly will be tabled at the earliest opportunity so

that all Honourable Members can properly prepare for the upcoming proceedings.

Mr. Speaker and Members of the Honourable House of Assembly:

The world today continues to focus its attention on the

military conflict in the Persian Gulf region. On behalf of the people of the

Province, My Government pays tribute to the Canadian troops in the region and in

particular those Newfoundlanders and Labradorians who are serving our country. I

am certain that it is the prayer of every person in this Province that our men

and women return safely to their families in the very near future.

Mr. Speaker and Members of the Honourable House of Assembly:

I invoke God's blessing upon you as you commence your labours

in this Third Session of the Forty-first General Assembly. May Divine Providence

guide you in your deliberations.

MR. SPEAKER: The hon. the President of the Council.

Notices of Motion

MR. BAKER: Mr. Speaker, I give notice that I will on

tomorrow ask leave to introduce a Bill entitled "An Act Respecting the Office of

the Auditor General and the Auditing of the Public Accounts of the Province".

Motion, The hon. the President of the Council to introduce a

Bill "A Bill entitled "

An Act Respecting the Office of the Auditor General and

the Auditing of the Public Accounts of the Province," ( Bill No.1).

On motion, Bill No. (1) read a first time, ordered read a

second time on tomorrow.

MR. SPEAKER: His Honour, the Lieutenant Governor has been

pleased to make a speech to the Members met in the General Assembly and for the

greater accuracy I have obtained a copy and it will be presently distributed to

all hon. Members.

MR. NOEL: Thank you, Mr. Speaker.

I rise to propose that a Committee of this hon. House be

appointed to draft an Address in Reply to the gracious Speech with which his

Honour has chosen to commence this session. The fifth such address, I believe,

his Honour has favoured our Province with.

I consider it a distinct privilege to have this opportunity

to move the motion on behalf of all Newfoundlanders and Labradorians, and in the

presence of the many visitors who have been good enough to join us here today.

It is a particular honour to have this responsibility for being the first

representative to speak on behalf of the people of Newfoundland in this new

Chamber. I trust the move signifies and coincides with the beginning of an era

of prosperity, dignity and accomplishment for our people.

I am most grateful to my own constituents in Pleasantville,

Mr. Speaker, who have afforded me the opportunity to contribute to the affairs

of our Province in this manner. I assure them of my continuing commitment to

serve their interests and justify the confidence they have placed in me.

On behalf of all Newfoundlanders I would like to welcome the

new Member for St. John's East and the recently elected Member for Trinity North

who I believe is in the galleries today and will be joining us next week.

SOME HON. MEMBERS: Hear, hear!

MR. NOEL: They are both gentlemen with whom I have been

acquainted with for some time. I have great confidence in the contribution I

know they will make to our deliberations and would like to congratulate their

electors on sending such fine representatives to this Assembly.

And I would also welcome the Member for Fortune - Hermitage

to this side of the House.

SOME HON. MEMBERS: Hear, hear!

MR. NOEL: The Member has proven himself an able,

dedicated, and I am sure some will agree a persistent member, who might now be

said to have received two votes of confidence during his first term among us.

SOME HON. MEMBERS: Hear, hear!

MR. NOEL: The Leader of the Opposition has chosen to

relinquish his office, and I want to extend best wishes to him in his future

pursuits.

SOME HON. MEMBERS: Hear, hear!

MR. NOEL: He is a gentleman who has served our Province

well as Premier and in other capacities for a considerable period. I have been

impressed by the dedication and the ability he has demonstrated since I have

been in this House, and look forward to continuing to serve with him as long as

we both have the opportunity.

We are gathered, Mr. Speaker, at an unsettled time in the

affairs of Canadians, and indeed of people throughout the world. We are

fortunate, however, to be living in an environment of stability and security in

comparison with the devastation and waste of lives and resources being endured

by others. But some of our own citizens have been called upon to help restore

peace, reason, and the rule of law elsewhere. And I want to join with his Honour

in expressing our sincere appreciation for what they are doing on our behalf.

Let us hope their efforts help establish the lasting justice and freedom, which

would justify the undertaking.

The momentum for change has accelerated significantly in many

areas of life important to those we endeavoured to serve, Mr. Speaker, and the

message conveyed by His Honour today demonstrates the commitment of his

government to ensuring we manage change in a manner which serves, rather than

threatens the welfare of those we represent.

We are fortunate to have responsibility for the affairs of

our province in the hands of such a competent, respected and resolute

administration at this time, Mr. Speaker; a government which has earned

increased support among our people since first assuming office - in spite of the

increasingly challenging circumstances we have been encountering.

We are very fortunate to have a Premier who is respected

throughout this nation, who has been singularly responsible for the strong

leadership from which we are benefitting.

Most Newfoundlanders and Labradorians have been proud and

supportive of the manner in which we have been represented and governed since

this administration assumed office. They may not always agree with us, but they

apparently respect our determination to pursue what we believe is right, and in

the best interest of our Province and country, without being intimidated by

undue pressure as was demonstrated most dramatically during the Meech Lake

debate last year.

But we have prevailed in difficult circumstances due to the

understanding, steadfastness and unity of our people - the common resolve which

has been forged through years and tribulations encountered in seeking the

cultural and economic autonomy within our capacity - the strength we have to

harness and properly organize to accomplish the objectives we have been elected

to attain.

Mr. Speaker, the vision, commitment, and realism of our

government have been further articulated in the plan of action presented to us

today.

This government has a mandate to change the course of history

in our Province, and we have begun, where all substantive change must begin, by

working to change our perception of our capacities and the obstacles to

achieving our potential -and that potential is considerable.

We are blessed with many human and natural resources,

especially in comparison with the size of our population. We are not a deprived

people - though we have been deprived of a system of government, political and

trading relationships, capable of maximizing our potential.

This Assembly intends to change that, Mr. Speaker.

Our people have no right to expect to enjoy a standard of

living superior to that which we are able to earn. And I do not believe we have

ever been so indulged - though some disagree, including Honourable Members

occupying seats in this House, past and present.

My primary political ambition has been to demonstrate the

fallacy of that assumption, and help develop and implement the essentials of

self-sufficiency.

We enjoy a better quality of life today than at the time of

Confederation, of course, but that is true of most parts of the world. Look at

the growth and accomplishments of Japan and Germany over a comparable period.

And it is certainly true of Toronto, and Ottawa. How rich would wealthy

Canadians otherwise be if they were in fact subsidizing the standard of living

in other provinces to the extent some people would have us believe? And why

would they be so intent on continuing to do so? The proposition that

Confederation was

an act of benevolence is obviously ludicrous.

The fact of the matter is that Central Canadians, in Ontario

and Quebec, have been the greatest beneficiaries of Confederation and have the

most to lose from any dismantling of this country. Newfoundlanders have no

reason to feel we thrive on the generosity of others. As the eminent British

economist E.F. Schumacher has said: "the rich rarely subsidize the poor; more

often they exploit them. They may not do so directly so much as through the

terms of trade. They may obscure the situation a little by a certain

redistribution of tax revenue or small-scale charity, but the last thing they

want to do is secede from the poor... because they know that exploitation of the

poor within one's own frontiers is infinitely easier than exploitation of the

poor beyond them."

Smoke and mirrors, Mr. Speaker, that is how Schumacher would

characterize Confederation economics. And Prime Minister Mulroney had the

temerity to suggest to our Premier that it had required a great deal of

"generosity of spirit" to enable Newfoundland to join Canada. We have

contributed substantially to the growth of this nation. Forty years ago

Newfoundland had a cash surplus of $40 million and the lowest per capita debt of

all provinces, $28.43 compared with $256.01 for Ontario. But that is one area in

which we have succeeded in overtaking our friends in Ontario, though we have

failed to make similar progress in the accumulation of wealth. There might have

been a generosity of spirit among central Canadians at the time of

Confederation, perhaps even more generosity than exhibited by some today, but it

has not proven to be a bad investment either.

The Economic Council of Canada has concluded, in a report

issued in 1980: "the low incomes, high unemployment, and dependency on transfers

in Newfoundland are unnecessary. The problems are more likely to lie with the

socio-economic system than with the natural resources or the numbers of people."

Well that is what this Government is dedicated to changing. The socio-economic

or political system, which is stifling the development of our economy and

sapping the integrity of our people. Newfoundlanders have been labouring under

an "illusion of dependence" as Canadians and basking in a questionable sense of

prosperity - but the era of truth is upon us. Borrowing and taxing capacities

are approaching the level of diminishing returns. Financial, competitive and

constitutional pressures are eroding the ability of the Federal Government to

compensate regions discriminated against through Confederation. Canada is

destined to change. The world is changing - and those who resist do so at their

peril. We cannot expect the assumptions, identities and institutions of the past

to properly serve the demands of tomorrow.

Some people point to the buildings, the infrastructure, the

services we enjoy and have accumulated during the past forty-two years and

attribute it to the generosity of other Canadians, and they feel threatened by

talk of change. But they forget that we pay half our income in taxes. They

forget about the resources we sell and the profits and taxes we export to

central Canada. They forget about the offshore and hydro resources we brought

into Canada, which are being exploited to the benefit of other provinces as much

as our own.

And they forget about the accumulating bills yet to be paid:

almost $9 billion is our share of the national debt; over $5 billion in

Provincial debt; and perhaps as much again in personal and corporate debt. More

than $20 billion, Mr. Speaker, perhaps $30,000 for every man, woman and child in

this Province. One hundred and twenty thousand dollars in debt for every family

of four.

That is what accounts for the standard of living we enjoy

today. That has been our cost of progress as Canadians, and the fragility of our

assumed security is becoming ever more apparent as the more populace and

politically powerful areas of the country intensify their efforts to preserve

the advantages they have grown accustomed to through Confederation.

That is why this Government is so intent on changing our

national political structure, so intent on insisting on constitutional change

which will give the less populace provinces normal, fair, and equitable say in

the operations of the Federal Government - the way federations are supposed to

function - so that we may properly share in the benefits of Confederation and

avoid bearing more than our share of the burdens. We want to make this country

better serve the needs of Newfoundlanders and Labradorians, and we want to

prevent the Federal Government from imposing inappropriate national fiscal

policies such as those which fuelled inflation and interest rates by legislating

spending where the economy was strong through the boom years of the 1980s,

creating full employment in Ontario while devastating various regions.

That must be our objective in the constitutional negotiations

ahead, Mr. Speaker. That is what we have been elected to accomplish. The

superficial progress of the past is becoming transparent. The security

associated with Confederation is diminishing. New alternatives have to be

identified and adopted.

We will never prosper as part of a political system beyond

our reasonable control, designed and managed to serve the needs of others before

our own. If we are to succeed we have to eliminate all possible impediments to

competing in the global marketplace, minimize our cost of living and production,

secure access to adequate sources of investment capital and access to markets in

which we are not forced to compete at a disadvantage.

It is unfortunate Canadians are condemned to being

preoccupied with constitutional matters when our time and energies and resources

could be better spent on more directly pursuing industrial development, creating

jobs, and providing the standard of services our people deserve. But we have no

alternative. We cannot withdraw into a world of our own. We cannot resort to a

kind of separatism which has become an anachronism in our time. We will not

improve our quality of living and achieve a reasonable level of financial

independence unless we create a political and economic environment conducive to

our development, appropriate to our resources, capacities and realities.

We cannot afford, Mr. Speaker, to be excessively sentimental

or unrealistic in our quest. We cannot expect to adopt a change without

ourselves changing. We must welcome change as a prerequisite to progress.

And that is the double-barrelled approach of this Government,

Mr. Speaker - to seek to create new relationships and new opportunities for

prosperity with our fellow Canadians and others, while at the same time doing

all we can to help ourselves properly train our people; increase productivity

and creativity; reduce waste, inefficiency and extravagance; and provide the

best quality of public services we can afford.

The speech delivered by His Honour today introduces the next

phase in our program to develop and manage dynamic new processes and instruments

of change for Newfoundlanders and Labradorians; new opportunities for growth,

development, and the security and satisfaction of self-sufficiency.

We have confidence in our people, and are absolutely

committed to helping achieve their legitimate and reasonable aspirations. I move

this House endorse the course being proposed.

Thank you, very much.

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

SOME HON. MEMBERS: Hear, hear!

MR. GOVER: Thank you, Mr. Speaker.

It gives me great pleasure to move the seconding of the

motion put forward by my friend from Pleasantville that a Select Committee of

the House be struck to draft an Address in Reply to the Speech from the Throne

so graciously and articulately delivered by his Honour today. And perhaps it is

appropriate that the second speaker in this new House, a second elected

representative in this new House, should come from that district where Cabot

first sighted land in Newfoundland, almost 500 years ago.

SOME HON. MEMBERS: Hear, hear!

MR. GOVER: And I am happy to advise the House that on the

Bonavista Peninsula local organizations are organizing for the celebration of

the 500 Anniversary of Cabot's landfall in 1997.

But, Mr. Speaker, the more things change the more they stay

the same, for when Cabot first came to Bonavista it was for fish, and today

whether one travels from the lowest community in the District from Sweet Bay to

Charleston up to the great town of Bonavista to Elliston and Little Catalina the

fishery is still the lifeblood of the Bonavista South District.

It is primarily the inshore fishery which is the District's

lifeblood, although I am happy to share half the work force of the Port Union

plant with my recently elected colleague from Trinity North. The District not

only has a dependence on the inshore fishery but also a significance dependence

on the deep-sea fishery. I would like to commend the Government on the

undertakings made in the Speech from the Throne with respect to the fishery, for

no industry is more important to Newfoundland and Labrador than the fishery.

Even though it is so important it seems rather ironic that we

have so little say in the fishery itself. I recently attended a conference in

Clarenville of inshore fishermen, not only inshore fishermen from my District

and the Bonavista Peninsula, but basically inshore fishermen from all over the

Province of Newfoundland and Labrador. At that particular conference there were

various workshops on licensing, quotas, the harvesting plans of the giant

companies, and various other aspects of the fishery.

Well, Mr. Speaker, there was one workshop on provincial

regulation, and it is almost embarrassing for a Provincial politician to have to

attend a conference on the fishery since almost every major aspect of the

fishery, whether it is licensing or quotas or international jurisdiction,

belongs to the Federal Government.

And when one sees the desperation that the Federal management

has placed the fishery in, one realizes the need for a new arrangement on the

fishery for the Province of Newfoundland and Labrador. There is no doubt that

Confederation brought great benefits to this Province. But one significant

problem with the Terms of Union was that it transfers almost all jurisdiction

over the fishery to the Federal Government.

So I am pleased to see the Provincial Government is endorsing

a joint management board with the Federal Government to give us greater say over

our primary industry.

SOME HON. MEMBERS: Hear, hear!

MR. GOVER: At the conference, many fishermen from my

District and from others, one gentleman from Torngat Mountains, or at least

fishes off Torngat Mountains, a Mr. Wilfred Bartlett, expressed how desperate

the situation in the fishery was, how so little fish is left due to Federal

mismanagement. And why is this? Why are there so many complaints from fishermen

about licensing, quota, UIC? Why are not policies more sensitive to our

fishermen? And the answer, Mr. Speaker, I believe lies in the fact that

jurisdiction rests with the Federal Government. For any Government to be

effective it must be accountable. It must bear the responsibility of its

actions. The problem with the Federal Government in respect to the fishery is it

can act with impunity in Newfoundland and Labrador. It can set up the worse

licensing system, the worse system of quotas, the worse system of harvesting by

the giant companies and it will not bear any political price for it for we are

only seven seats versus seventy-five in the Province of Quebec, and versus

ninety in the Province of Ontario.

SOME HON. MEMBERS: Hear, hear!

MR. GOVER: No Federal Government needs Newfoundland to

stay in power and, therefore, they can treat our fishery with disrespect. The

time has come to redress the Terms of Union and put an end to Federal arrogance

and I ask the Minister of Fisheries to give us a say over the fishery through a

giant management board as they have done on offshore resources.

I am pleased to see in the speech that our Ministers intend,

when they meet with representatives of the European Economic Community, to push

the concern of overfishing on the Nose and Tail of the Grand Banks. It is

somewhat ironic that in the last law of the Sea Conference, consensus was

quickly reached that coastal states had jurisdiction over the continental shelf,

over the shelf itself, the seabed, but no such consensus was reached over the

stocks that swim above that shelf, and as a result of a fact that the only

consensus that could be achieved was on a 200 mile economic zone, the straddling

stocks are now subject to the predatory actions of Spain and Portugal in the

European Economic Community, and I would urge the Prime Minister to take a more

active involvement to settle this particular matter. While diplomacy is good and

necessary, and in fact myself and my colleague from the district of Grand Bank,

a few years ago went to Europe and met with some European officials on the

issue, and we see the quotas being taken by the Europeans gradually declining on

the Nose and Tail. I say to the Prime Minister the time for diplomacy is soon at

an end. The time has come to act and assert unilateral jurisdiction over the

Nose and Tail of the Grand Banks so that the livelihood of Newfoundlanders and

Labradorians can be preserved forevermore.

SOME HON. MEMBERS: Hear, hear!

MR. GOVER: Now, Mr. Speaker, there is no doubt that we

are in a severe financial crisis. Moves about to be made by the Government with

respect to the Public Services of this Province may not be popular, but as the

Speech from the Throne indicates, we are overly dependent on transfers from

Ottawa and overly dependent on resource based industries. We must diversify our

economy, create new sources of employment for our young people and for our

communities in rural Newfoundland, and, I believe the Government has taken a

significant step in that direction by establishing the Economic Recovery

Commission and Enterprise Newfoundland and Labrador, to diversify our economy

and build on our strengths, so that we can end dependency on the Federal

Government and end our dependencies on export markets, and finally, as a Liberal

Government in Quebec once said, become 'Masters in our own House' and I believe

the Economic Recovery Commission and Enterprise Newfoundland and Labrador will

so strengthen our economy that soon we will be Masters in our own House and the

sun will shine and 'have not will be no more.'

SOME HON. MEMBERS: Hear, hear!

MR. GOVER: We are also, Mr. Speaker, in a period of

constitutional renewal, and across the nation we hear the word alienation, and

alienation to me means that decisions are made in Ottawa over which the people

feel they have not adequately been consulted. We hear it in the West, we hear it

in Quebec and we hear it here in Newfoundland as well. The simplistic solution

is for each provincial premier to cry for more powers, more powers for the

provinces; this will eliminate alienation, but by that process we do not build a

great nation, we create ten petty principalities. The resources of the nation

must be spread across the nation, from the richer areas to the poorer areas,

however, that is not to say that the status quo is acceptable.

I believe we must address the concerns of the Province of

Quebec in a full and fair manner, but we cannot address them in isolation to the

needs of the Province of Newfoundland and Labrador. In the next round of

constitutional negotiations, not only must the concerns of Quebec be addressed,

but the concerns of this Province must be addressed, in areas such as the

fishery and in areas such as economic development. Recently the Allaire Report

was tabled in the Province of Quebec. I have read the report. While I disagree

with much of it, one finds that in the Province of Quebec they are dissatisfied,

since they do not have an adequate say in the Bank of Canada which sets the

monetary policy for the country; they do not have an adequate say in Regional

Development Plans and they want more jurisdiction over those particular aspects.

I say to the Province of Quebec, that may be a very good idea: to entrench in

the Constitution, the Bank of Canada like the Supreme Court and to entrench in

the Constitution, regional representation on the Bank of Canada so that interest

rates will not be set for the benefit of Ontario and Quebec, to the detriment of

the Province of Newfoundland and Labrador.

Over the past we have had many initiative from the federal

government: DREE and DRY with respect to regional development, but they have all

failed to significantly close the gap between our province and the rest of

Canada, and the time has come in these new constitutional negotiations to set

forth structures which will effectively address regional disparity in Canada so

that the sense of alienation that is felt in the west and in the east will be no

more and we will feel as one nation.

Also, as we now enter this new Chamber, I commend the

Government on its undertakings in the Speech from the Throne with respect to

revising the operation of this particular House of Assembly. As the speech

indicates, the government recently established legislation review committees,

and I believe that anyone who has participated in that process realizes the

benefit of it. No more will legislation be rammed through this House without

adequate public input.

In the Committee that I Chair at least two pieces of

legislation were amended as a result of public input, one being the new Forestry

Act put forward by the Minister of Forestry and Agriculture who voluntarily

undertook to amend his own bill on the basis of public input. This could not

have happened in the past, but will certainly happen in the future. This is not

a government committed to secrecy and covert action.

Also, in this new Session, no doubt, we will be operating

under new Standing Orders brought forward by the Standing Orders Committee with

the assistance of both Government Members and Opposition Members, and hopefully

these will enhance and improve the role of the private Member in this particular

legislature so that we can effectively represent the concerns of our

constituents.

The new Elections Act will help to revise the procedure by

where our representatives are elected, and provide for a full and adequate

representation in this particular House of Assembly. And also, the Committee on

Elections and Privileges is investigating the possibility of televising this

particular House of Assembly, and I am sure, when the resources of the Province

permit, television will be introduced and our constituents could more adequately

judge our performance in this House and hold us more accountable for our

actions.

I commend the government on the other initiatives taken in

the Speech from the Throne. And finally in closing, Mr. Speaker, I would like to

commend all those men and women who fought in the Canadian Armed Forces in the

Persian Gulf Conflict, and in particular, those Newfoundlanders and Labradorians

who served, and more specifically, those people from my own district who served

in that particular conflict. And hopefully, and I can only pray, that the

valiant victory won in war will secure a long, enduring and lasting peace for

that particular region.

Mr. Speaker, it gives me great pleasure to second the motion

of my colleague from Pleasantville.

Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

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

MR. RIDEOUT: Thank you very much, Mr. Speaker.

I guess, as many within the Chamber can guess, some of us at

this particular time of the year are still battling some of natures ills, but I

do hope that I will be able, in the course of my few comments this afternoon, be

able to get through them without too much hacking or unpleasant noises emanating

from this side of the House.

I want to, first of all, Mr. Speaker, on behalf of my

colleagues and the official Opposition, welcome our visitors. This is, again,

the ceremonial opening of a new Legislative Session in this Province; and as has

become a custom in Newfoundland and Labrador, we are delighted as legislators on

this day to have dignitaries from Church and State: Her Worship, the Mayor of

the Capital City; the former Premier of our Province, Mr. Smallwood, is sitting,

I believe, just inside the Bar of the House. And since this is the occasion of

the first session in this first new House, of course it means that Mr. Smallwood

has officially been inside the Bar of all three Chambers that we have had in

this Province - the Colonial Building, the old Chamber upstairs, and now here.

So, Mr. Speaker, I am delighted that this significant contribution to this

significant day could be made by the presence here today of the former Premier.

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: Now, Mr. Speaker, the Speech from the Throne

here today of course is not only the ceremonial opening of a new Legislative

session. As was referred to by His Honour and by myself and other speakers so

far, this is the first session in this new Chamber. And today's proceedings, I

suppose, more than similar proceedings in recent years, will perhaps have some

special significance to some future generations of historians. The fact that

this is the beginning of a new session in a new Chamber - I am not going to say

a lot about this new place or this new Chamber today. I am not going to say a

lot about its location. It is the third location that we have had for a - the

fourth, really - but the third official Chamber that we have had in this

Province over our long experience with democracy. I hope that this particular

location will be the location for many, many decades to come.

When we were the Government we had been advised from an

safety point of view, and many other points of view, to move the Chamber from

the old ninth and tenth floor locations to a more accessible safety area of this

building. And we agreed to do it, and the new Government carried out with that

move once they came to office. I know some people may like the surroundings in

this place and some may not. But I can only say, from my own personal

perspective, that having visited a lot of Legislative Chambers across Canada,

the one thing I can say - and there are things about it that I do not like,

frankly - is that it looks something of the part. It looks something like you

would find in Manitoba and Quebec and Ontario and British Columbia, other

provinces of Canada.

But you know, Mr. Speaker, of course what the looks, what the

physical surroundings of this place have to do to the quality of debate, to the

quality of legislation that is proposed by the Government, to the eventual

decisions that are debated by Members of this House, is absolutely nothing. So

whether we like it, whether we do not like it, I guess the important thing is

that we all have a responsibility in our own way to serve our constituents who

have sent us here as best we can. And while it is probably nice for those of us

who have been used to being crammed up in a small room on the ninth floor to

have a bit more space and all that kind of thing, that is not what is important.

What is important is the interest of the people who sent us here to do a job on

their behalf.

AN HON. MEMBER: Hear, hear!

MR. RIDEOUT: Mr. Speaker, I want to as well congratulate

the mover of the motion, the hon. Member for Pleasantville, and the seconder,

the hon. Member for Bonavista South. Now, Mr. Speaker, that would be about what

tradition dictates on opening day, that the Leader of the Opposition would

compliment and congratulate those Members who moved that an address and reply be

drafted to the gracious speech from the throne.

But I have to say, Mr. Speaker, that not since those heady

days of Peckford nationalism, when Members who were on the other side of the

House, some of whom are still there, were accusing those of us who were in that

Government of being separatist, have I ever heard the kind of rhetoric on

opening day that I heard here today, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: There was an anti-confederate touch in both

those speeches that I find unbelievable coming from supporters for this

Government, Mr. Speaker. The Premier shakes his head.

MR. SIMMS: As he always (Inaudible).

MR. RIDEOUT: Well, Mr. Speaker, so he should shake his

head. Because the condemnation of this country and what this country can do for

us that came from those two speeches in particular, Mr. Speaker, I found it

unbelievable that it would occur here on opening day.

Let me point out one example. The Member for Bonavista South

made the passionate declaration that there has to be in order to solve the

fisheries' problems of Newfoundland and Labrador a unilateral declaration of

extension of jurisdiction over the Nose and Tail of the Bank. Great political

rhetoric, Mr. Speaker. But the Speech from the Throne said that his Government

supports and is committed to working in co-operation with the Federal Government

to seek an acceptable permanent solution to this major problem, and the solution

that the Federal Government is working on is a diplomatic solution. It is not a

unilateral solution. In fact it has disassociated itself from any prospects of a

unilateral extension of jurisdiction, so the inconsistency, Mr. Speaker, with

the approach taken by those hon. Members, I think, most be pointed out, and I am

sure it will by my colleagues as we go through the next few days of Throne

Speech debate. I congratulate them and compliment them. They did an excellent

job in their presentation.

Mr. Speaker, I want to, as well, on behalf of my colleagues,

to officially welcome to the House the new Member for St. John's East and I want

to officially welcome to the House the Member Elect who I believe is with us in

the galleries for the district of Trinity North. We are looking forward to their

participation in debate in this House and to their contribution to debate and to

the decision making process in this House over the next several months and

years, however long they may be here or we may be here.

I should as well, I suppose, Mr. Speaker, say how pleased I

am on behalf of my colleagues to see that the hon. Member for Fortune -

Hermitage has finally pitched. There are those of us on both sides of this

House, Mr. Speaker, who have pitched from place to place.

SOME HON. MEMBERS: Hear, hear!

MR. RIDEOUT: But I do not know of any instance, Mr.

Speaker, I do not know of any instance in the history of parliamentary democracy

in Newfoundland and Labrador where it took almost twenty-one months before a

twist could pitch. We do wish the hon. gentleman well and we are looking forward

to his constituents having a voice in this matter some year and a half or two

years down the road. We know that 225 or 228, whatever the press reported,

Liberal supporters in the district had a say and that is fine, we are not

disputing that, but we are looking forward to all his constituents having a say,

and when that happens, and then if and when the hon. Member is returned here

then I will say of him, he has been totally exonerated. That is what I will say

if that is what happens.

Now, Mr. Speaker, having got those pleasantries out of the

way I want to say that since this House last sat, I think, we have all been

saddened by the recent death of a great Newfoundlander and Labradorian, a great

native son, Dr. Eugene Forsey. Those of us who had the privilege to know Dr.

Forsey know that he was a Newfoundlander who made a great contribution to

political life in Canada. Although he was not a lawyer, he was respected, I

think it is fair to say, as one of the greatest constitutional minds in this

country. Canada has lost a distinguished scholar, a great patriot, a great

reservoir of constitutional expertise, and, Mr. Speaker, I want to say that my

colleagues and I express our deepest sympathy to members of the Forsey family.

Also, Mr. Speaker, as was referred to today by His Honour and

by previous speakers since this House last met thousands of Canadians and

hundreds of young Newfoundlanders and Labradorians have been taking part as part

of the allied coalition in the Persian Gulf conflict. It is the first time in

about forty years that Canadians have been engaged in active military duty. Many

of us, Mr. Speaker, have at least acquaintances, but a lot of us in this

Province have relatives who are today serving their country in the Persian Gulf.

And while we all deplore war, and while we all are optimistic about the events

of last night we do hope, Mr. Speaker, that this conflict is settled quickly and

that those of our loved ones who are there get home quickly. I know there are

hundreds of other Newfoundlanders, like myself, I happen to have my brother

serving on the Athabascan. He has been over there since September. He was due to

come home for a crew change in February but now he is not due back until April,

but maybe that will speed up because of the events of last night. I know there

are hundreds of Newfoundlanders like myself, who every day have hardly a

thinking waking moment that goes by when those people somehow or another are if

not in the front of your thoughts then certainly in your thoughts somewhere, so

I know I speak for all Newfoundlanders who have relatives in the Gulf when we

say today we hope they will soon be back with us.

Mr. Speaker, I want to take a few moments, not a long time,

it is not tradition that the Leader of the Opposition or any speaker really on

opening day take a long time. We are entitled, I suppose, by the rules of the

House to an hour, but it is not tradition that we do that. But I do want to take

a few minutes more time of the House to make a few general observations on the

Speech from The Throne that was delivered here this afternoon.

And, Mr. Speaker, when I read this Speech first today, having

gotten it about half an hour before His Honour delivered it here in the

Assembly, I could not think there was something different about it. And I

believe it is this, I think it is fair to say that the Throne Speech of 1989 and

the Throne Speech of 1990 were sort of euphoric documents. They were coming from

a Government that had just been elected to office, they seem to have a lot of

vim and vinegar and vision and idea, and it flowed well. The last one I realize

was short in 1990, but the one in 1989 was a fairly extensive document. But a

new plan, or at least some new ideas of how the Government was going to approach

the problems facing the Province.

But this Speech, Mr. Speaker, compared to that is a very,

very sober document. This Speech is not euphoric. This Speech is not visionary.

This Speech is not over flowing with enthusiasm. This Speech is trying to warn,

I believe, the people of Newfoundland and Labrador that not only to admit that

we are in tough times, but to warn of something very dramatic, and I believe

that, Mr. Speaker, that dramatic action will be the Budget Speech that will

occur in this House a week today. That is the difference that I see, Mr.

Speaker.

The first two Speeches, I believe there was a great deal of

concentration on improvements in the social field. There was a great deal of

concentration on improvements in health and education. Improvements, spending

more money, hiring, expanding the system, health and education, social services

in particular. Is that the buzzword in this document today? The buzzword, Mr.

Speaker, in this document today is rationalization. Downsizing is not used in

that pure sense. But rationalization of what we have is certainly used, Mr.

Speaker.

Mr. Speaker, for the third time a Throne Speech delivered by

this Government has promised the people of Newfoundland and Labrador a new

economic strategy. It was promised in the Throne Speech of 1989, and it was said

categorically in the Throne Speech of 1989, in fact, I have the quote here 'My

Government' May 25, 1989, 'is at this moment in the process of establishing an

Economic Recovery Plan, the details of which will be announced shortly.'

MR. SIMMS: Shortly.

MR. RIDEOUT: Shortly. May 25, 1989. It was raised in the

Throne Speech again last year, and of course it is raised in the Throne Speech

again this year.

Mr. Speaker, twenty-one months later an Economic Recovery

Commission later, an Enterprise Newfoundland later, how much more time does the

Government need to develop?

SOME HON. MEMBERS: Shortly.

MR. RIDEOUT: How much shorter is shortly? When can we

expect?

SOME HON. MEMBERS: Shortly.

MR. RIDEOUT: This is the third time now that we have been

told that the document was almost ready and that we could expect to see it any

day. In fact, we were told May 25, as I said, in 1989, that we would see it

momentarily then, certainly within months, I suppose, one could come to that

conclusion.

SOME HON. MEMBERS: Oh, oh!

MR. RIDEOUT: There is in this document as well, Mr.

Speaker, the promise of a plan in terms of rationalization as far as the

structural approach to the fishery goes. Well, Mr. Speaker, again we are

promised it shortly. And we are looking forward to it. We hope it comes shortly.

We have seen, Mr. Speaker, over the last twenty-one months in

this Province, a Government that has been prepared to accept the philosophy of a

national government that again rationalization had to take place in the fishery.

We have seen plant closures, we saw Government temporarily help three of them,

but the plant closure approach was the approach that was accepted by both levels

of government for a crisis, Mr. Speaker, hurting an industry that is a temporary

crisis, if the resource is managed properly. So we have to - while we are

looking forward to seeing whatever the new plan is in terms of the Government's

approach to the fishery - at this point in time we can only judge by the

performance. And the performance has been to - or its rationalization - towards

a smaller, more efficient, more professional - words of the Minister himself -

group left in the fishery.

Now if that is going to be the essence of the new plan that

we are going to see, Mr. Speaker, then the industry that is and always will be

the backbone, particularly in rural Newfoundland and Labrador, is in for some

dramatic changes that will have nothing to do with resource availability or

anything else.

Mr. Speaker, we are anxiously looking forward to the Budget.

We have looked at the economic performance and projections of this Government,

in particular over what is now almost the last twelve months. And this is the

Government that came into the Legislature almost twelve months ago now with a

budget projecting a modest surplus. And then proceeded to have the Legislature

deal with the estimates of that budget, knowing as of March 30, I believe the

date was, that the estimates had changed dramatically. Knowing that they were

not correct information any more, but yet Members of this Legislature dealt with

the set of estimates that the Minister of Finance produced in his budget.

AN HON. MEMBER: (Inaudible) it is right.

MR. RIDEOUT: In August, Mr. Speaker, the Premier and the

Minister of Finance had to face the Province and tell them that a $10 million

surplus was now a $120 million deficit. That was in August. We came back as a

Legislature again the first part of October. And with that kind of variance -

the largest variance that I have ever heard tell of in my time here, I believe

it is probably the largest that ever occurred - between the budgetary position

of the Province in March, and the budgetary position of the Province in August

and through to October, the Government still persisted in carrying on with the

1990-1991 Budget. It would not hear of any mini-budget, it would not hear of any

new budget or revised budget. It still insisted on carrying on. And, Mr.

Speaker, the result of that carrying on and that determination to carry on I

suspect we will see in the Budget this week.

The uncertainty that is rampant in this Province has been

created because Ministers of the Crown and the Premier have been saying to

people: look, we are in very, very difficult economic times and we have got to

cut back. The Minister of Health has said to health care institutions in this

Province that we have to consider freezing budgets. We did not manufacture that,

or the Hospital and Nursing Home Association people manufacture that, the

Minister said it. So that has created uncertainty among hundreds and hundreds of

people who work and depend on the health care institutions for their livelihood,

Mr. Speaker.

The Minister of Education has said to school boards and to

school board employees in this Province that: we have to consider freezing your

budget in the next fiscal year. And that has created uncertainty. And a lack of

comfort about what their prospects are going to be after next week or the week

after.

All of that uncertainty, Mr. Speaker, I would suspect, and we

will see this in the Budget documents next week, has made the fiscal position of

this Province much more difficult now than it was in October of last year. And

that is where the Government, I believe, will be inflicting further pain and

deeper, deeper hurt on the people of Newfoundland and Labrador because they

choose not to act last fall when they should have acted. They choose not to make

the tough decisions last fall when they should have made them, if they were

convinced that they had to be made. And now I suspect that these decisions are

going to be tougher, more painful, and more hurtful than if the right approach

had been taken several months ago. And I believe, Mr. Speaker, that is why this

Throne Speech today is a very sober, sombre document.

The expansionary vision of the Government of 1989 and 1990

has disappeared and it has been replaced now by the reality of a party that has

been in power for a couple of years and knows that at the best of times that

Newfoundland and Labrador is a very, very challenging and difficult Province to

govern. A great one, one we all love, but challenging and difficult to govern.

So the dreams and visions of a party seeking power has become

replaced by a party that is in power and now, I think,-

MR. SIMMS: The harsh reality is -

MR. RIDEOUT: - the harsh reality is that they are not

quite certain how to handle it and what to do.

SOME HON. MEMBERS: Oh, oh!

MR. RIDEOUT: Well, we will see on Thursday.

SOME HON. MEMBERS: Oh, oh!

MR. RIDEOUT: Mr. Speaker, there is a lot more that I

could say. There is a lot more I would like to say on the economy. There is a

lot more I would like to say on job creation. There is a lot more I would like

to say on the Economic Recovery Commission. There is a lot more I would like to

say on amalgamation, and how the Government botched that. There is a lot more I

would like to say on the futility of the fact that you will hurt the future of

this Province if you damage our education system. If you turn the hands of the

clock backwards, what you are going to do to economic prospects of future

generations of Newfoundlanders and Labradorians. Of what you are going to do if

you tamper dramatically with the health care system. All of those things are

things that we will be debating, Mr. Speaker, in this House over the next

several weeks and I am sure two or three months, certainly well into the spring.

Mr. Speaker, finally before I do take my seat I want to say

this: there is no doubt that this will be my last session as the Leader of the

Official Opposition in this Legislature. I have made that clear. It is very

likely that it will be my last session as a Member of the Legislature. I have

not made that so clear because I do not know how the time frames might come

down. But it is very, very likely. I want to say as I begin the last session for

me as Leader of the Official Opposition that I have certainly enjoyed my career

spanning almost sixteen years in this Legislature, and I would recommend public

service, political life, no matter how difficult it might be from time to time,

to any young aspiring Newfoundlander and Labradorian. I would like to take the

opportunity to thank my constituents, to thank the people of the Province

generally for giving me a chance to serve and to participate for so long in

public life and in the political process in the Province.

In my remaining weeks here, and that basically is what it is

down to now, I want to say as I said before, at the opening of previous

sessions, we will co- operate with the Government when co-operation is

necessary, and when we think it is useful and in the public good. In those

circumstances we will co-operate with the Government. We will oppose the

Government, Mr. Speaker, when we believe that it is in the public good and when

we believe that the public good is not being served by the actions of the

Government. Then we will oppose. That is our system, Mr. Speaker, and despite

all the flaws of that system, nobody yet has invented a better one.

Thank you.

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Premier.

PREMIER WELLS: Thank you, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

PREMIER WELLS: Mr. Speaker, from a number of points of

view, I guess this is a historic day in this Province. It is a historic day in

many parts of the world; within the last twenty-four hours, the war has

effectively come to an end in the Persian Gulf, and that is a noteworthy and

welcome event and like the other speakers who have gone before me I pay tribute

to those Canadians, particularly those Canadians who are from this Province, who

have been serving faithfully in the Persian Gulf, and express great relief along

with everybody else in this country that the war came to an end without the loss

of a single Canadian life and express sympathy to the families of those members

of the other coalition forces who were lost, small though the number was, but I

express our sympathy to them.

It is also historic for another couple of reasons. It is the

day when a great Newfoundlander, as the Leader of the Opposition has mentioned,

is being buried in Ottawa, and he and others in this Province have paid tribute

to Dr. Forsey, no more than is due to Dr. Forsey, certainly. He made a great

contribution as a Canadian without ever forgetting that his roots were in this

Province and he looked upon this Province as his home, and did me the great

honour on a number of occasions, of speaking about me as his Premier.

So, I accept that on behalf of the people of this Province as

a recognition by Dr. Forsey that his roots are indeed and remained throughout

his life in this Province, even though he played a major role as a Canadian. His

contribution will not soon be forgotten by Canadians all across the country. I

hope it will not be forgotten in Newfoundland and Labrador, and I hope people

will not overlook the fact that, some six or eight months ago, the Government

established a scholarship fund in Dr. Forsey's name, tenable at Memorial

University, for studies in Canadian Government at Memorial University and I pay

tribute to His Honour whose original idea it was, to find some way to honour Dr.

Forsey and I am glad the Government agreed to and decided on education and the

perpetuation of Dr. Forsey's name through an educational scholarship as the

means of honouring Dr. Forsey.

It is also a historic day, and I notice he has just had to

leave the Chamber, to have Mr. Smallwood, as the Leader of the Opposition noted,

sitting in this Chamber today, sitting on the floor of the Chamber although not

participating as a Member. He sat in the other two Chambers as a Member and I

guess he is one of the few people still alive who did. It is a great pleasure to

have him present today to observe these proceedings and participate with us and

give us another opportunity to publicly acknowledge his tremendous personal

contribution to the development of the Province.

I won't say much about the Chamber. I will reserve comment. I

have some strong reservations. I have to be frank in saying, Mr. Speaker, that

the Government had strong reservations about proceeding with it and when we

formed the new Government we took an immediate assessment of whether or not we

should stop the process, and probably would have, except for the fact that the

contracts had been let, and work had progressed so far that it was imprudent, to

say the least, not to proceed; but I hope at the very least that whatever we

like or dislike about it, it will grow on all of us because it is the residence

of our democratic process in this Province, and however it appears or whatever

we may want to do to change its appearance in the future, let us not forget that

it is, essentially, the Legislature of this Province and the democratic forum

for the people of this Province, and let us try and work in that context.

I also want to join with the Leader of the Opposition and the

other Members who have spoken, in welcoming two new Members to the House, the

hon. the Member for St. John's East who represents a party that, until his

election, was not a Member of this particular Assembly although his party has

been represented in a prior Assembly. I sincerely welcome him and assure him

that he will receive full and fair treatment, not preferential mind you, but

full and fair treatment, I know, from both sides of the House. I take a

particular pleasure in welcoming also the new Member for Trinity North. I am

very pleased to have him join us.

SOME HON. MEMBERS: Hear, hear!

PREMIER WELLS: I do not share the views of the Leader of

the Opposition with respect to the actions of the hon. Member for Fortune -

Hermitage. I believe this Government, this Party, the present leadership, has

set an appropriate standard that stopped the activity that threatened the

wearing out of a carpet in the middle of the floor of the House, by saying very

clearly, there are two qualifications to sit with the Liberal caucus. One, you

have to be chosen by the Liberals of the district to do so, and secondly you

have to be elected by the residents of the district you chose to represent. Now,

in the ordinary course, most individuals would get the party choice first and

then submit themselves for election. That is the normal process. In the past we

have seen a great deal of what I would call, political instability in this

Province, of people walking back and forth for their own personal motives at the

time. I don't think that this serves the political stability of the Province

well. It is important to have a good and competent Opposition. I thought so when

I was Leader of the Opposition, and when we got offers from Members sitting on

the Government side, that they wanted to walk across and sit with us, I said no,

not unless you first submit yourself to acceptance by the Liberals of the

district that you want to represent.

SOME HON. MEMBERS: Hear, hear!

PREMIER WELLS: And when my responsibility changed to be

that of Premier of the Province, instead of Leader of the Opposition, I saw no

reason to change that principle. It would not matter whether you sat on the

Opposition side or on the Government side of the House, I felt the same

principle should apply, and I am happy to say, Mr. Speaker, that that principle

was applied and it worked, and worked well. I am also happy to say that I saw it

adopted in Nova Scotia just recently, when a similar thing happened and the

Leader of the Opposition in Nova Scotia took a similar position. It happened to

be that an NDP member wanted to move over and sit with the Liberal Opposition in

Nova Scotia and he said, first you must get the approval of the Liberals of the

district you want to represent and he went through that process. Maybe we have

set a new standard for the country, and if we have I am very pleased that we had

a small part to play in it.

SOME HON. MEMBERS: Hear, hear!

PREMIER WELLS: So, the hon. Member for Fortune -

Hermitage, having now both been elected by the residents of that district and

chosen by the Liberals of that district also, is a welcome addition to this

Liberal caucus.

SOME HON. MEMBERS: Hear, hear!

PREMIER WELLS: Mr. Speaker, I note, as did the Leader of

the Opposition and a couple of other speakers, that this may well be the last

session that the Leader of the Opposition will participate with us in the House.

I regret that personally. I will save my remarks for a time that is closer to

his date of departure, and I think that would be a more appropriate time for me

to express my views on the matter. I also join with the Leader of the Opposition

in welcoming Her Worship, the Mayor of the City of St. John's, who is present in

the chamber, and the other special guests and dignitaries who have agreed to

join us on the floor of the Assembly this afternoon. The Leader of the

Opposition makes a very valid point, that this serves - that people come and

join us on the floor of the Assembly - serves to remind us of just what we are.

We are not a superior institution, superior to the people of this Province. We

are part and parcel of the people of this Province, but we happen to be the body

that has been entrusted with the discharge of the plenary legislative powers of

our people. And having the visitors with us today helps for a moment to remind

us of the extent of that responsibility and the measure of that trust, and I

heartily welcome you here today.

I also want to extend a special welcome to an individual that

I see in the gallery opposite. It is not often we have him present or other

members from the group that he represents. He is William Anderson III, the

leader of the Labrador Inuit Association, and I am very pleased to see Mr.

Anderson present in the gallery there.

SOME HON. MEMBERS: Hear, hear!

PREMIER WELLS: There are other visitors with us today and

I extend that welcome to all.

I want also to sincerely congratulate the mover and seconder

of this motion. The mover of the motion gave what I think is probably the best

philosophical speech I have heard in this Chamber since I have been here. It is

the kind of thinking that I have come to expect from the hon. Member and to

greatly respect, because what it portrays to all of us is an orderly mind that

operates with a plan and a vision, and recognizes the things that have to be

done and the course that a government should follow, and a legislature should

participate in, in planning for the orderly operation of the public affairs of

this Province. I was most impressed with his grasp of the situation and I say to

all hon. Members, you could do worse than to get Hansard and re-read what that

hon. Member said today. It would do us all good.

SOME HON. MEMBERS: Hear, hear!

PREMIER WELLS: He was very, very well complemented in

that speech by the comments of the seconder, who took a somewhat different but

nevertheless equally important and effective approach. He concerned himself with

the procedures of the House and expressed his views on that. He concerned

himself with the concerns of his particular district and the concerns of

fishermen and fisheries in the Province. And, contrary to the comments of the

hon. the Leader of the Opposition, who somehow thought there was something

terrible about his expressing his personal view about what should be done with

respect to the Nose and Tail of the Banks. Perhaps at long last the hon. Members

opposite will now recognize that this is not a monolith over here, there are

thirty-two -

SOME HON. MEMBERS: Hear, hear!

PREMIER WELLS: There are thirty-two independent thinkers.

Quite capable and quite free to express their individual opinions, with the

exception of those who sit in Cabinet who must express the collective opinion,

and I welcome the opinion expressed. I do not quite share the view with respect

to unilateral declaration of jurisdiction outside the normal limits. There is a

way that I think is more appropriate to deal with the problem, but I will defend

forever the right of that hon. Member to express his own view and commend him

for doing so.

SOME HON. MEMBERS: Hear, hear!

PREMIER WELLS: Now, Mr. Speaker, if I could just deal

briefly with a couple of other comments from the Leader of the Opposition,

because I think they need to be dealt with. He noted the difference between this

Speech from the Throne and the two previous speeches that were delivered at the

instance of this administration, and he noted the difference. He thought the

first two speeches were euphoric and excited about the opportunities and the

possibilities and what we were doing, and his word to describe it was

"euphoric." But he saw no euphoria in this speech.

Well, Mr. Speaker, it is hard to be euphoric about recession

and a $200 million deficit on current account. Those are not the things of which

euphoria is made. Those are the responsibilities that a government has to deal

and deal seriously with. When we had delivered the first two speeches from the

Throne - and it has all been in less than two years, I remind hon. Members. It

has been one year and nine months since this House first sat after the last

election, and one year and nine months, Mr. Speaker, is not yet two years, and

by next week we will have delivered our third budget.

We have delivered today, or had delivered today, the third

Speech from the Throne, and the first outlined in general the Government's

long-term objective for its full term of office. That is a normal approach. It

was a rather more lengthy speech than the last one and then the one delivered

here today because it outlined the general concept and approach; and it also

said that we would shortly be putting in place an economic recovery procedure,

an economic recovery plan, and the Leader of the Opposition says we now are

still promising that. Well, we delivered on that. Within the first stage we put

in place the Economic Recovery Commission, put its structure in place, and they

have, during the last eighteen months, put in place a revised Enterprise

Newfoundland and Labrador and have carried on tremendous activity.

Now, Mr. Speaker, that is not the end of planning. Anybody

who knows the right approach to management of anything, whether it is an

economy, a business, an organization of any kind, management of schools, public

services or anything, you do first what the Member for Pleasantville did in his

speech today: put in place the philosophy and develop what the philosophy should

be, and it is called, if you think in terms of corporations and the way they

operate, a strategic economic plan. That is what we are in the process of

developing for this Province. That includes, not just the job creating mechanism

of the Economic Recovery Commission. It includes integrating the whole of the

education and health care system and the whole of the government and public

services into an efficient, co-operative operating system, to re-build the

economy and the public service of this Province. Now, that is the strategic

economic plan that we are talking about.

A group of officials of the government started last September

to work on the detail of this. They have produced so far a couple of drafts of

it. We have had advice from others outside the group, and very shortly we will

be able to submit it for public scrutiny and public comment. But, Mr. Speaker,

what we want to do is plan the orderly long-term development of the economy and

the public service sector of this Province. We must do this in an orderly way

otherwise we will waste our resources as has been done in the past, spinning our

wheels, putting in place changes that are of no value, putting forward

industrial enterprises that are doomed to failure from the beginning. We have to

stop and abandon that process and put in place a strategic economic plan that

will enable us to use our resources in the most effective way possible to get

the maximum benefit for the people of this Province, and that is exactly what we

are about.

Mr. Speaker, when we assumed office we outlined our three

priorities in health, education and economic development. We intended to carry

on and improve and modernize other aspects of the management of the public

service generally, but we wanted to give priority to those. In our first two

budgets we did. Clearly we did it, and we did it again last year.

Now, Mr. Speaker, as of last year, after we brought the

Budget in things started to change. The Leader of the Opposition referred to our

becoming aware of a $120 million difference. Well, that is not accurate, with

great respect to the Leader of the Opposition. By the end of March, or very

early the first couple days of April, some two weeks or so after the Budget was

delivered, we became aware that there would be some adjustment in the transfer

payments; and, Mr. Speaker, they were calling on us to re-pay some - if I recall

the figure correctly, we would have to re-pay about $35 million and there would

be another $29 million or $30 million reduction in the coming year. We chose,

Mr. Speaker, for the benefit of the Province, not to re-pay the $35 million

immediately because we had the right to re-pay it over 12 or 18 months and save

the interest cost on it, for the benefit of the people of this Province, which

we did. So, the adjustment at that stage was, in fact, about $34 million down

from what our projections were.

Now, Mr. Speaker, during the course of the Summer and by

October we became aware - not all of us, by October we became aware that it

could be as much as $120 million. And I believe we have acted responsibly since

that time to take the time to consider the most appropriate adjustments to the

public service generally and the manner in which Government expends public funds

and to make the changes in such a way as would have the least possible adverse

impact on the delivery of services to the public, and don't ever forget, on the

people who are employed and who have given loyal service to the public of this

Province. We want to cause the least possible impact on them as well. But we

must, Mr. Speaker, in order to do it that way, take the time and hear the points

of view of others to do it. It may eliminate some anxiety, some degree of

uncertainty, but it is certainly not going to help any public servant to cause

that public servant to be laid off in October or November instead of March. It

is not going to help him any at all. So, Mr. Speaker, I think we have followed

the right course but I am prepared to leave that to the judgement of the

electorate of this Province to determine whether or not we have acted properly.

The most significant that has happened since our first two budgets were

delivered, and the first two Throne Speeches were delivered, was the changing

circumstances in the nation and in the Province. The changing circumstances in

the nation, Mr. Speaker, was brought about largely by the budget of the Federal

Government, delivered last year, that reduced the transfer payments to the

provinces for the established program funding and left us, in this Province,

with the responsibility to pay for all of the increased costs. This is how the

Federal Government is choosing to deal with its massive deficit problem, and I

have a great understanding for the necessity for them to deal with that deficit

problem, if for no other reason, Mr. Speaker, than a very selfish reason in this

Province. We have in the past been deriving some 47 per cent of our Provincial

Government revenue by way of direct transfers from the Federal Government. Now,

if we think we have economic problems at this moment, God help us if the Federal

Government gets in financial difficulty and cannot meet its commitment to

provide for transfers to the Province through equalization, and established

program funding and other transfers. So, even from a purely selfish point of

view, I endorse the actions of the Federal Minister of Finance to come to grips

with the massive debt of this country and the persistent deficit. So we must,

Mr. Speaker, share with other Canadians a responsibility to deal with this.

Nevertheless, that is what caused the basic problem for this Province. That,

plus some circumstances in this Province as well; the closure of some mines due

to the depletion of the ore, the closure of Long Harbour, the Federal

mismanagement of the fisheries, and the economic impact that that has had on our

Province has been immense. More than anything else the economic recession,

brought about by national economic policies has also created a substantial

problem for the Government of this Province. All of those things together, Mr.

Speaker, changed the circumstances that we were faced with this year, from what

they were twelve months ago, or eighteen months ago, twenty-one months ago when

we took office. It is an entirely different economic circumstance and we must

adjust our approach if we are to act responsibly and protect the long-term

interest of the people of this Province. On top of that, Mr. Speaker, Canada has

itself in a state of constitutional uncertainty. That does not help the economy

either. It makes it very difficult to handle economic concerns in all of the

provinces as well as in the nation. What the Speech from the Throne reflects,

Mr. Speaker, are the changes that are necessary to deal with those changed

circumstances, and the Government putting in place a long-term strategic

economic plan to deal properly with the future of this Province. That plan, Mr.

Speaker, provides for, first and foremost, responsible financial management of

the finances of the Province. And, we are determined to do that, not to cause

this Province to get into financial difficulty by inordinate reliance on

borrowing to finance current operating expenses of Government. It is usual to

rely on borrowing to finance capital, but it is not usual to rely on borrowing

to finance current operating expenses, because that gets us inevitably into the

kind of difficulty that the Federal Government finds itself in at the moment, so

we have to stop that course and stop any trend toward it. I can commit to the

people of this Province today, Mr. Speaker, a Government that is dedicated to

doing just that. There may be, in a year or two, when due to circumstances, you

may well have to budget for a deficit on current account, but that should only

ever occur in exceptional circumstances. It should not be a routine policy of

any government. And if the people of this Province, Mr. Speaker, want a

government that will continue to operate on that basis then they had better

elect another government the next time around. Frankly, I do not believe that

that is what they want. I believe they want at long last, sound financial

management in this Province.

SOME HON. MEMBERS: Hear, hear!

PREMIER WELLS: Mr. Speaker, the Speech from the Throne

also gives a clear indication of the priority that the Government gives to the

foundation of our economy, the fisheries. And we recognize that no matter how

much oil Hibernia or the other offshore fields will in their time produce, the

fishery has been the mainstay of the economy of this Province for more than 400

years, and I have no doubt it will be the mainstay of the economy for many

decades, if not centuries to come. So, it is important, Mr. Speaker, that we

not, in the process of taking whatever financial benefit we can get from

offshore oil development, ignore the foundation of our economy, the fishery.

Toward that end, Mr. Speaker, the Speech from the Throne indicates that we will

shortly be delivering a proposal in the form of a White Paper, to spell out

clearly the Government's plans and proposal with respect to the fishery.

The use of a White Paper, Mr. Speaker, as all Members know,

recognizes the fact that Government does not know everything about the fishery.

It does not have all of the answers. So, it puts forward proposals for

discussion, and provides for the adjustment of those proposals depending upon

the input that we get from other areas of the Province, particularly from the

fishery sector that is concerned. However, we have recognized the need to

improve the contribution that the Government can make to protecting our

fisheries. And toward that end we have put in place provision for strengthening

the Department of Fisheries beyond what it has been in recent years, and put in

place appropriate level of research and marketing research and planning

facilities, to aid in getting a greater economic benefit from the fishery, even

though the quantity of fish available may have diminished. We want to ensure

that we get the maximum possible economic benefit and priority will be given in

that respect.

As well as the fisheries, Mr. Speaker, we must continue to

support our other old reliable sectors of our economy, the forest and the mines.

We have run into some difficulty recently with respect to some mines that have

been depleted, not due to inefficiency, but largely the ores readily available

or economically available have been depleted, and those mines have had to close.

So, we must ensure that we carry out an appropriate programme of exploration to

provide for the development of new mines. And above all, we must make sure that

we manage and protect our forest in such a way that they will provide for the

continued operation of the three newsprint mills that contribute so

significantly to our economy.

We must also, Mr. Speaker, take advantage of every possible

opportunity to sell to others, particularly in North America, but also in

Europe, that which we in this Province so easily take for granted: the great

joys of our outdoors and what we have to offer in the form of tourism. And we do

have a great deal to offer, a great deal more than we have developed in the

past, and the Government is making special efforts in that regard. One such

effort that I can mention and I give credit also to the former government for

making a contribution in terms of the development of Marble Mountain. In fact,

it appears from our best estimate that the Government will recover within five

years, every cent it ever contributed to Marble Mountain in retail sales tax

returns alone. Quite apart from the direct economic benefit to the communities

in the area that serve.

So we want to develop these kinds of tourist facilities and

take advantage of the desire of tourists to enjoy what they call "adventure

tourism." Not too exciting or adventuresome, but enough to allow them to boast a

little when they get back home. Those opportunities are there.

We have also, Mr. Speaker, put in place the Economic Recovery

Commission, which has already made a very significant contribution, and which I

have no doubt will make an even greater contribution to broadening the economic

base of this Province.

Mr. Speaker, I can not overlook what Hibernia and offshore

oil has to offer, and can not overlook, particularly at this time, commenting on

some report that has surfaced in the last couple of days, for some reason or

other, that anybody and everybody who knows anything about offshore oil has been

aware of for some two years. But all of a sudden some report gets resurrected

that says: they have only proven one-half of what they think might be there.

Well, everybody is - I have known that for two years and there is nothing new

about that; all of the decisions with respect to Hibernia and the development of

the offshore were made on the basis of the full knowledge of everything that is

in that report.

I should also say a word, Mr. Speaker, about what Hydro has

to offer, and here I want to caution people; we are making, I believe, good

progress in the negotiation but I do now want people to go out and assume that

it is a done deal and it is ready to go in place; that is not so. There is still

significant differences to be negotiated if ever an agreement is to be realized;

but we have made sufficient progress that it is important for us to take

precautionary steps, like starting to register the process for environmental

assessment and that was done some months ago, two or three months ago I believe,

and I have no doubt, Mr. Speaker, that very shortly I understand, they will be

calling tenders for preliminary engineering, but that is simply to make sure

that the engineering services will be available and can be put in place should a

deal be reached. So, I do not want people to suddenly jump to the conclusion

that the development of the Lower Churchill is starting. We are making excellent

progress and it can make a contribution to the economy of this Province that

will far exceed the contribution Hibernia can make, if it comes into place. So

it is something that we will work diligently to achieve and I am confident, Mr.

Speaker, that with diligence and with goodwill and effort on both sides an

arrangement can be worked out, but that yet remains to be seen.

Mr. Speaker, we are also, as the Speech from the Throne

indicates, going to give some priority to technological and scientific and

mathematic training and education, because I believe our economic future is

dependent on what we do in the field of Education. That does not mean we have a

bottomless pit of money to spend on Education, we do not. We must spend our

dollars wisely, but if we do not educate our people and train them to be

competitive technologists with the rest of the world, then, Mr. Speaker, we will

forever have a backward economy in this Province, and the Minister of Education

and indeed the whole Government, is dedicated to making sure that that does not

happen.

The overall strategic economic plan, as well as including all

of these things, will also deal with putting in place, as the Speech from the

Throne says, a system of labour relations in this Province that will ensure we

properly provide for and protect the interest of our workers, but will also

create an attractive investment climate for industry to invest in, to create job

opportunities for our people. That plan will also require us to take a look at

our tax policy and measure the extent, if any, to which our tax regime, acts as

a deterrent to investment, and come to grips with that problem and find ways to

ensure that we can properly and fairly pay for public services without having in

place a tax regime that is in fact a deterrent to economic development.

We are confident as well, Mr. Speaker, that Agriculture has a

significant contribution to make beyond that which it has been making in the

past and for that reason we commissioned a study by Dr. Hulan, which, just in

the last few days, has been received by the Government, or in the last week or

so, has been received by the Government and is now in the process of assessment.

We are hopeful that we will be able to develop and expand the Agriculture

section in the Province.

Good strategic planning, Mr. Speaker, will also require us to

ensure that we manage properly our environment, and that we do nothing to

seriously, adversely affect the environment in a way that cannot be corrected,

and that we provide for the most extensive economic development possible, with

the least possible adverse effect on our environment and we will, Mr. Speaker,

be bringing forward, as the Speech from the Throne has said, legislation during

this session to deal with environmental matters. We have already put in place,

the round table on environment and economic development, and we are hoping that

we will, through that means, get advice from those particularly concerned with

the environment and from those involved in the economic sector.

Mr. Speaker, if we are to also properly plan for the orderly

development of our whole Province, we must also pay greater attention in the

future than has been paid in the past to the concerns of the native people of

this Province. And that also will be part of our strategic plan, to provide for

fair treatment of our native people, to ensure that they will feel a full and

fair part of this Province and feel that they have been fairly treated, and

provide full opportunity for economic development. That too will be part, Mr.

Speaker, of our strategic economic plan.

That plan, Mr. Speaker, when it is completed will be

submitted for public scrutiny, public input, and I have no doubt, there will be

an occasionally adjustment to be made. How long it will take us to achieve the

kind of economic recovery we want is a bit difficult to say. The preliminary

indications in that plan point out very clearly how far we are behind the rest

of the nation, in terms of our earned income. If we had double the economic

growth of the average in Canada for the next twenty years we still would not

catch up and be equal to the average in the rest of Canada.

So people should not expect a turn around in one term of

office. We are going to need at least two or three or four or five terms of

office -

SOME HON. MEMBERS: Hear, hear!

PREMIER WELLS: - to correct that, Mr. Speaker. And, Mr.

Speaker, before we can bring Newfoundland to the top of the ladder, we have to

first build a secure ladder, which is what we have been doing for the last, now

nearly two years, and then, Mr. Speaker, slowly, but surely, we have to put in

place a procedure to take us one step after another to the top of the ladder, so

that, in our lifetime at the very least, we can see a development of the

economic opportunity in this Province. A development of our public services and

a development of our whole way of life, in a way that will enable us to be a

self-reliant people, no longer having to depend on transfers from the Federal

Government, generating all of the wealth and resources that it takes for us to

be totally self-reliant and, Mr. Speaker, enjoying a standard of living that is

no less than the standard of living enjoyable else where in the country.

That opportunity, Mr. Speaker, is open to us now. But it

takes, Mr. Speaker, responsible financial management of the affairs of this

Province, and a Government that will dedicate itself to developing and putting

in place a strategic economic plan and ensuring that it is carried out. Mr.

Speaker, I commit the participants in this Government and all those on this side

of the House who support us, to carrying on that kind of activity this year and

next year, and such further years as we may be called upon by electorate of this

Province to do so.

Thank you very much, Mr. Speaker.

SOME HON. MEMBERS: Hear, hear!

MR.SPEAKER: It is moved and seconded that a committee be

appointed to draft an address and reply for the gracious Speech from the Throne,

and that it shall consist of the Member for Pleasantville, the Member for

Bonavista South and the Member for Menihek. Carried.

MR. SPEAKER: The hon. the President of Council.

MR. BAKER: Mr. Speaker, I move that the House at its

rising do adjourn until 2:00 p.m. Monday and that the House do now adjourn.

MR. SPEAKER: Before putting the motion to the floor, I

remind all people present of a reception in the main lobby immediately after the

adjournment.

On motion, the House at its rising adjourned until tomorrow,

Monday, at 2:00 p.m.