VOL. 3 THIRD SESSION OF THE THIRTY-NINTH GENEPAL ASSEl1BLY OF NEWFOUNDLAND PRELH1INARY UNEDITED TRANSCRIPT HOUSE OF ASSEMBLY FOR THE PERIOD: 3:00 p.m. - 6:00 p.m. MONDAY , tU\.RCH 12 , 19 8 4 NO. 1

March 12, 1984 Tape No. 1 NM - 1 Order, please! The House met at 3:00 P.M. Mr. Speaker in the Chair. MR. SPE~~ER (Russell) SERGEANT-AT-ARMS: Mr. Speaker, His Honour the Lieutenant-Governor has arrived. MR. SPEAKER: Admit His Honour the Lieutenant-Governor. HON. W. ANTHONY PADDON (Lieutenant-Governor): Mr. Speaker and Members of the Honourable House of Asse~bly: It is my privilege and pleasure to welcome you to this Third Session of the Thirty-ninth General Assembly of the Province of Newfoundland. This year the Province will obser-1e a significant landmark in its history.

My Government shares the joy of the people of the Province in marking the 200th. Anniversary of the official establishment of the Roman Catholic Church in Newfoundland. Newfoundlanders and Labradorians of all faiths congratulate the Roman Catholic hierarchy and people and look forward to sharing with them the Anniversary Celebration. Furthermore, my Government is pleased to note that His Holiness Pope John Paul II will be visiting the Province during his tour of Canada and participating in these celebrations. My Government shares in the joy of the people of the Province and extends a warm welcome to His Holiness.

Throughout our history the people of Newfoundland have been indebted to all of the Churches for the contribution they have made to health, education and the general uplifting of our people. In an age where traditional values are too frequently obscured, it is beneficial from time to time to pay tribute to the selfless dedication of men and women of God of all Churches. 1

March 12, 1984 Tape No. 1 NM - 2 HON. W . ANTHONY PADDON (Lieutenant-GOVERNOR): Mr. Speaker and Members of the Honourable House of Assembly: During this past year the Pro vince has experie~ced arduous and djfficult times. In 1983, the effects of the international and national recession were forcefully felt provinciall y. While one hears ref ·erences to national economic recovery, the effects o£ the recession still reverberate throughout Newfoundland and Labrador. This Province has been historically vulnerable to downturns in the national economy, being the first to suffer and the last to recover.

This will continue so long as our Province is deprived of the right to exercise control over its resources comparable to the rights exercised by our sister Provinces. When one Province does not enjoy the same basic rights to manage its resources as are exercised by other Provinces, inevitably it will always lag behind. My Government does not view equalization and transfer payments as a natural necessity or an inevitable fate for Newfoundlanders and Labradoria~s. Consequently, my Government remains resolute and determined to gain the right to control its resources.

Meanwhile, my Government must squarely face the economic conditions which confront the Province. My Ministry is proud of the degree to which it has been able to respond to the social needs of the people, in spite of the meager financial resources available. In the fields of Education, Health and Social Services, expenditures have accelerated by some $456 million over the past four years. This represents an increase of 62 per ~ent over expenditures made for these services in 1980. 2

March 12, 1984 Tape No. 1 NM - 3 W. ili~THONY PADDON (Lieutenant-Governor): A dramatic example of Government's dedication to the social needs of our people has been the inauguration of Grade XII and the reorganized high school programme. As important as are the natural resources of the Province, in the final analysis the quality of our human resources will be a significant factor in determining tPe Province's long term future. The first year of the Grade XII program has been embarked upon. Nine thousand of our young men and women are benefiting from an additional year of secondary education.

My Government is aware that the establishment of Grade XII, and the restructuring of the high school program, were initially met with a certain amount of skepticism. To date, this program has been highly successful and 1qill significantly improve the quality of secondary education for our Province's youth. The reality of our financial situation precludes establishment of new programs until such time as economic conditions improve, and until we attain the rights to our resources within the Canadian Confederation.

In the meantime, we must continue to exercise a responsible and realistic stewardship over the resources at our disposal. To this end, my Government is very pleased to have received, in timely fashion, the report of the Royal Commission on Hospital and Nursing Home Costs. Tne recommendations of this Commission will be brought before this Honourable House and Members will be invited to address them and their means of implementation. Mr. Speaker and Members of the Honourable House of Assembly: Over the past year, three particular occurrences have tended to pla~e additional strains 3

March 12 , 1984 Tape No . 1 NM - 4 !iON . W. ANTl:ONY PADDON (Lieutenant -Govenor) : on ~~e Province 's economy - probl ems in the fishery, forestry and mining industries . In 1983, th e Province was co nfronted with a c risis in the !ishing ind ust ry . Becau se of a variety of factors, the major offshore fishing companie s were unable to cont inue operations without considerable financial as sistanc e. This has result ed in the restructuring of the Offsho re Fi shing Industry . 4

March 12,1984 Tape No. 2 ah-1 Hon. l''. llnthonv Paddon (__Lie:rt~t~~~.E.s? fl: From the beginning, my Government made it crystal clear that it was unwilling to accept an arrangement which would have resulted in the death of many of our rural communities. Many of these communities would have ceased to exist if the original proposals had been accepted. My Government viewed these proposals to be tantamount to reinstitution of the resettlement programme. The people of this Province are well aware of the misery caused by such a callous programme.

Therefore, my Government successfully negotiated a different Agreement with the Federal Government-an Agreement which recognized the priorities and rights of rural Newfoundland. This Honourable House ratified this Agreement during the last Session. My Government is proceeding with all diligence to implement the Agreement. In these difficult times, Governments, Industry and Union must realize the necessity to cooperate. A failure to act responsibly could well jeopardize implementation of the Agreement and adversely affect the many families whose livelihoods depend upon the fishery.

While the Restructuring Agreement deals primarily with the establishment of the new fishing company, it also makes provision for the attainment of four important policy objectives. One is the establishment of a multi-million dollar Burin Peninsula Development Fund to help diversify the economic base of the Burin Peninsula. This process has already started and assistance has been requested for the proposed reactivation of the flourspar mine in St. Lawrence. The second objective relates to the Northern ~reas of our Province, especially Coastal Labrador, through the creation 5

March 12,1984 Tape No. 2 Hon. W. Anthony Paddon (Lieutenant-Governor): of a Northern Fisheries Development Corporation. This is intended to place and maintain the fishery in that area on a sound and stable basis. ah-2 In meeting a third policy objective, this Restructuring Agreement also creates a Resource Utilization Task Force to assess the amount of fish available to Newfoundland fishermen and processing plants. In particular, this Task Force will address the availability of fish to ensure continued plant operations on the Burin Peninsula.

Furthermore, the Agreement provides an important mechanism whereby independent fish processors will be able to market their product through the consolidated marketing arm of the new company. This represents a fundamental improvement in the marketing arrangements available to the Newfoundland fishing industry. Successful realization of th~s fourth policy objective will serve to benefit the full industry, large operators and small, in penetrating new markets and in weathering cyclical downturns. Mr.

Speaker and Members of the Honourable House of Assembly: Another strain on the Provincial economy occurred in Labrador West where over twelve hundred workers were laid off by the mining companies during the past two years. In response, my Gover~~ent appointed a Task Force charged with the responsibility for seeking ways to alleviate the financial difficulties of those who lost their jobs. This Task Force has reported back, and my Government was pleased to implement all of its recorrunendations and looks forward to an equally positive response from the employers and the Federal Government. 6

March 12,1984 Tape No. 2 ah-3 Hon. W. Anthony Paddon (Lieutenant-Governor ) : In the meantime, my Ministry is in very close contact with the companies concerned and is monitoring their ongoing operations very carefully. In the short term, it would appear that the situation has now stablized. In the long term, my Government is committed to promoting further economic development for this very important region of our Province. Mr.

Speaker and Members of the Honourable House of Assembly: In 1983, my Government shared the dismay of the people of Corner Brook and all of the West Coast, brought about by the decision of Bowater to sell its Newfoundland assets. Negotiations commenced i~~ediately with the Company with a view to reversal of that decision and then with the aim of preparing a divestitu~e proposal in an effort to attract another operator for the mill. My Government, in co-operation with the Government of Canada and Bowater, is assiduously pursuing these efforts.

My Ministers reaffirm their condifence in the future of the Province's second city and assure residents of Corner Brook and the West Coast that every reasonable effort will be made to revitalize their economy. Mr. Speaker and £-!embers of the Honourable House of Assembly: A resolution of offshore and hydro issues ·would go a long way toward placing this Province in the position to respond creatively and effectively to such serious economic strains.

My Government has once again to emphasize the difficulty of any provincial government in dealing with such problems when it is denied control of its resources and a rightful measure of 7

March 12,1984 Tape No. 2 ah -4 Ron. • w. Anthony Paddon- (Lieutenant-Governor ): the fruits therefrom . On Thursday last the Supreme Court of Canada rendered its decision on ~~e question brought before it by the Government of Canada of owner._.,ip of minera l resources on our Continental Shelf. The position oi my Government has consistently been that this question is one for political resolution rather than a legal determination .

The result of that decision places this Province in the untenable position of inequality with our sister Provinces with respect to those very resources which we brought with us into the Canadian Confederation. This inequity must be redressed. Where the application of law as interpreted bythe judiciary results in an inequality, people must look to parliaments or legislatures to redress that inequality. All must be equal before 1:he law and laws can be changed to ensure equality of all Canadians. 8

March 12, 1984 Tape 3 EC - 1 HON. W. ANTHONY PADDON (Lieutenant-Governor): My Government is determined, on behalf of the people of Newfoundland and Labrador, to look to the Parliament of Canada to take steps to give this Province the same rights with respect to the resources which it brought to the Canadian Confederation as were given to Alberta, Saskatchewan and Manitoba in 1930 by the Parliament of Canada. In the meantime, my Government remains convinced that an offshore agreement which is fair and equitable to Canada and to this Province can be achieved.

Both as Canadians and Newfoundlanders we continue to give the highest priority to the realiza­ tion of such an agreement. An offshore agreement which recognizes the legitimate rights of both the F'ederal and Provincial Gover~ments will result from

an act of political will on both sides. Traditionally, this kind of matter has been settled in C~~ada by negotiation, not by litigation. My Government is convinced that this is the way Confederation is intended to work and remains confident that a negotiated agreement will be achieved. Such a negotiated agreement is and will remain a practical necessity for the joint development of our offshore resources to achieve a fair distribution of the benefits which will accrue to Canada in general and to the Province in particular.

At the same time, my Government is continuing its attempt to obtain fairness and equity from the Upper Churchill power contract. My Government is now engaged in sensitive negotiations with the Province of Quebec in an attempt to resolve this long-standing issue. 9

March 12, 1984 Tape 3 EC - 2 HON. W. ANTHONY PADDON (Lieutenant-Governor): Mr. Speaker and Mewbers of the Honourable House of Assembly: When the previous operator of the fluorspar mine at St. Lawrence suspended operations, my Government proceeded to reclaim full rights to the minerals and, at the appropriate time, to seek a new operator. My Government is pleased with the interest which has been demonstrated by the British mining firm, Minworth Corporation, to re-open the St. Lawrence fluorspar mine and to establish a milling operation.

No group of people could be more deserving of this development than the residents of St. Lawrence, who have suffered great economic and human hardship. The new mine and milling operation would create up to 150 direct jobs. Another example of the ability of my Government to have meaningful input in the develop­ ment of the Province for the benefit of its people is the reactivation of the asbestos mine operated in Baie Verte.

When conditions appeared very bleak for that area of the Province, my Government moved to reclaim the assets and provided financial assistance, along with the Government of Canada, in order tc permit a new owner to revitalize its operations. As a result, the mine has reopened and new provides 300 jobs to the people of the Baie Verte Peninsula. My Government points to these successes and expresses confidence that similar happy resolutions will come to pass in other areas of our Province which have been besieged by the effect of the n.i'ltional and international recession. 1 0

March 12, 1984 Tape 3 EC - 3 HON. W. ANTHONY PADDON (Lieutenant-Governor): Mr. Speaker and Members of the Honourable House of Assembly: During recessionary cycles, Governments strive to lessen the impact of decreased private investment by expenditures of public funds on projects which are labour intensive. In the recent economic downturn, the Province has responded with sub­ stantial expenditures for such public projects as the hydro development at Cat Arm, hospital construction at Port aux Basques and Clarenville, and the Confederation Building extension in St. John's.

These initiatives have not only improved the level of public services but have provided much needed employment. In addition, the implementation of the local preference policy has contributed signifi­ cantly to the maximization of economic benefits to our people and the Province. To the extent of the Province's authority to enforce local preference, this policy will continue and my Government will remain unstinted in its efforts to ensure that our people and local businesses benefit from development.

At the same time, my Government is concerned with the difficulty in concluding regional development agreements wi.th the Government of Canada. The loss of public funding from this source has further aggravated the recession's impact. Last year only one agreement was signed and funding under the C~neral Development Agreement fell to $40 million dollars below the level of funding during the 1979-1980 fiscal year. My Government is· pleased to note t.hat difficulties experienced in concluding Federal-Provincial development agreements now appear to be on the threshold of being surmounted. 1 1

March 12 , 1984 Tape 3 EC - 4 HON . W. ANTHONY PADDON (Lieutenant -Governor): In the immediate future the Province looks for\vard to concluding subsidiary agreements relating to Planning, Rural Dev elopment, Minerals and the Burin Peninsula Development Fund . In the short term, my ~linistry expects to conclude similar agreements on Fisheries, Highways and Ocean Industry . ~-1y Government looks forward to the early conclusion of these agreements and to the enhanced spirit of cooperation which they liill herald . Mr .

Speaker and Members of the Honourable House of Assembly : Not only js it vital to control and manage our resources, it is also vitally important to nurture and to foster downstream development of ~~ese resources to th e fullest pos sib le a.xtent . During the term of this Administration , increased e£forts have been made to identizy new and innovative development opportunities in the area o~ aqua - 1 2

~ ~-1arch 12, 1984 Tape No. 4 MJ - 1 HON. W. ANTHONY PADDON (Lieutenant-Governor): culture . My Ministers are pleased to advise this Honourable House that preliminary biological investigations indicate a potential for farming of salmonoids and certain shellfish species in selected areas of the Province. It is proposed to intensify this research in 1984 with a view to promotion of commercial aquacultural projects. Extension of resource utilization is also an objective of this Administration.

One example is the commencement of a program to encourage use of wood as fuel by industries and institutions within the Province. The feasibility has been demonstrated by the succ8ss~ul installation of a wood chip burning system at the James Paton .''emorial Hospital in Gander. A similar system has been approved for Newfoundland Hardwoods Limited at Clarenville. Government is investigating the feasibility of establishing a novel project in the Roddickton area for generation of electricity from wood chips.

These and other potential projects demonstrate a commitment to new, imaginative and fullest utilization of our resources. With the recovery of the United States of America from the recession and with other parts of Canada enjoying the advent of recovery, my Government looks forward to the strengthening of the tourism industry. The tourism industry is a high priority of this Province and is one of the sectors for which a Federal-Provincial Agreement is being sought.

During this Session an integrated plan for this important industry will be unveiled, which will establish development objectives for tourism for the remainder of this decade. Mr. Speaker and. Members of the Honourable House of Assembly: The preservation of our resources - indeed of our way of life - is very much linked to protection of our environment. My Government remains gravely concerned 13

March 12, 1984 Tape No. 4 MJ - 2 HON . W . ANT HONY PAD DON (Lieut ena nt -Gove rnor ): ov er th e threat acid rain continues to pose. This has particular potential to cause inestimable damage to our Province's fresh water fishery and forestr y resources. Ours is a rela tivel y undamaged ecosystem which must be protected. My Government fully supports the efforts of the Government of Canada to convince the Government of the United States of the need for action to be taken. The time for corrective actions is immediate and must not be postponed while further studies are undertaken.

The Province will continue to advocate remedial action at meetings of the New England Governors and Eastern Premiers and to encourage the Government of Canada to pursue this urgent concern. In addition, to avoid needless damage to our own environment, regulations will be made which will clearly set out the conditions to be met under the provisions of The Environmental Assessment A.ct. t1oni to ring and rehabilitation procedures for major development projects will be established.

These procedures will make provision for the evaluation of environmental impact statements to ensure that the actual effects of a major development project are r~ly - within the bounds of those predicted by the impact statement. They will also make clear to developers their responsibilities with respect to the reasonable restoration of the environoment on completion or abandonment of major projects. Achieving the balance between development, preservation and restoration is essential if we are to maintain our almost pristine environoment.

It will be a delicate and difficult task but one which my Administration is determined to achie ve. r1r. Speaker and Members of the Honourable House of Assembly: My Government has initiated a dramatic increase in expenditures in the social sector of our society. The budgets of the Department of Social Services and 14

March 12, 1984 Tape No. 4 MJ - 3 HON. W. ANTHONY PADDON (Lieutenant-Governor) Health have risen by one hundred and forty-six per cent (146%) and sixty­ five per cent (65%) respectively, over the last four years. The large increases in expenditure by the Department of Social Services have been made purposely and constructively. The Employment Opportunities Program has enhanced the income and the quality of life of many families~ and has funded many useful public services.

It has also stabilized the number of social assistance recipients in our Province, at a time when every other Province has seen a dramatic increase in its caseload. Over the past two years, expenditures on the program have increased in response to the difficult economic times, and in future my Government will continue to promote meaningful employment creation activities through such programs. The development of community-based services for disabled and elderly persons continues to be a priority of my Government. During the past year, the Children's Home in St.

John's was closed and new community facilities were opened. These efforts to develop community­ based services will continue as my Government feels very strongly that, whenever possible, mentally handicapped young people should not spend their lives in institutions. In addition, significant progress has been made in delivering support services for occupational trainimg, recreation and social integration into the community. In the field of Health, the past few years have seen a concerted effort to bring more adequate health services to all people of Newfoundland and Labrador.

The new hospital for Channel-Port aux Basques has now been completed and will be opening shortly. The Clarenville and Bonavista hospitals are well in the course of construction. The ensuing year will see commencement of construction of a 15

March 12, 1984 '!'ape No . 4 tA.J - 4 EON . W . ANTHONY PADDON (Lieutenant-Governor): ne\oJ hospital at Salt Pond to ser ve the Burin Peninsula, and planning will continue for redevelopment of th e Central NeHfoundland Hosoital at ~rand Falls . Pursuant to the recommendations of the Roy al Commission on Ho spital and Nursi:~g Home Costs, a study will be undertaken to develop a comprehensive plan =or the delivery of health care services in the St . John's Region. 16

March 12, 1984 Tc-.pe 5 PK - l HON. W. ANTHONY PADDON (Lieutenant-Governor): My Government looks forward to completion of these projects and their incorporation into the general health care system of the Province. They will be vital institutions which will improve health care services, as my Government continues to rationalize delivery of such services using the valuable information contained in thP Report of the Royal Commission on Hospital and Nursing Horne Costs.

It is our hope that the findings of that Commission will be effective in coping with rising health care costs while continuing to provide our people with the highest standard of service possible. Mr. Speaker and Members of the Honourable House of Assembly: The residential construction industry has experienced considerable difficulties in the recent past because of record interest rates.

Due to the stablization of mortgage lending rates and stimulation of construction by this Administration through the reduction of retail sales tax upon building materials, last year witnessed the commencemernt of recovery in this important industry. During the current year, a sustained and increased level of activity is anticipated from residential construction in the Province. In the area of public housing, my Government will be focusing upon a number of priority items including upgrading of public ho~sing and investigation of options for the better delivery of social housing programs.

Negotiations with the Government of Canada will continue for extension of rehabilitation and repair ~~ to areas of the Province not yet designated for assistance. Mr. Speaker and Members of the Honourable House of Assembly: During this Session a number of legislative measures will be introduced for your consideration. The Report of The Select Committee on Elections, Controverted Elections and Elections Financing for Members of the House of Assembly is being considered 1 7

March 12, 1984 Tape 5 PK - 2 HON. W. ~~THONY PADDON (Lieutenant-Governor): by Government, and a new Elections Act reflecting the deliberations of that Committee and the assessment of them by the Executive Council will be placed before you. You will soon be asked to address the Report of the Newfoundland Electo.al Districts Boundaries Commission. Appropriate legislative amendments will be introduced to give effect to this Report. A new Judicature Act, representing the first substantial reform in this century of the rules and procedures of the courts, will be introduced for your consideration.

Additional reforms in the field of family law, incorporated in a new Act governing the reciprocal enforcement of maintenance orders, will be presented. The legislation will represent another thrust in the substantial reform of family law which commenced with passage of The Matrimonial Property Act in 1979 and which was one of the first acts of my Government. My Government recognizes the need for greater participation by women in the senior ranks of the Public Service and in professional and managerial positions generally.

My Government, conscious of both its role as chief employer in the Province and its commitment to represent males and females equally, will implement an affirmative action program for women. A number of efforts are planned in the short term, pending a full policy review of this area. One of the first efforts will be to launch an accelerated management development program for an identified group of women employees, with demonstrated potential for advancement. Another significant effort will be to introduce in the Fall of 1984 a Career Education Kit into the 207 high schools across the Province.

The kit is intended to provide information to young women to encourage them to 18

March 12, 1984 Tape 5 PK - 3 HON. W. ANTHONY PADDON (Lieutenant-Governor): explore various career options through which they can achieve their full potential. Legislation will be placed before you to strengthen The Public Tender Act. These measures will be based mainly upon recommendations of the Commission of Inquiry into Purchasing Procedures of the Department of Public Works and Services.

Some time ago my Government announced that the Newfoundland and Labrador Award for Bravery would be established to honour those who show exemplary courage, and place themselves in peril while rendering assistance to persons in distress. Since that time, the award has been designed and­ minted. It is hoped that the first presentation ceremony will take place later this year. This Honourable House will be asked to consider enactment of The Bravery Award Act. My Government considers it imperative to support cultural and artistic endeavours if we are to foster, nurture and develop our unique heritage.

Promotion of artistic developments will continue through direct Government programs and support of the Newfoundland and Labrador Arts Council. My Ministry also intends taking measures to preserve our architectural heritage. Legislation will be placed before you to establish a Newfoundland and Labrador Heritage Foundation. This Foundation will be composed of members of the general public and will evaluate requests for registration of properties having architectural significance.

You will be asked to grant supply to Her Majesty and invited to examine the degree to which it responds to the social, cultural and economic needs of our people. In this, and in ensuing Sessions of this historic Assembly, you will also be invited to consider the means of increasing its measure so as to permit the p~ople of this Province more fully to attain the Canadian standard of living. 1 g

March 12, 1984 Tape 5 PK - 4 HON. W. ANTHONY PADDON (Lieutenant-Governor): Mr. Speaker and Members of the Honourable House of Assembly: There is no doubt that the legitimate aims and aspirations of Newfoundland ers and Labradorians are in large measure linked with attainment of the rights to our 20

March 12, 1984 Tape No .. 6 SD - 1 HON. W. ANTHONY PADDON (Lieutenant-Governor) resources. The basic foundation of Canada rests upon the undisputed and inviolable right of control and management by each. Province of its natural resources. My· Government, therefore, holds. steadfast that the Canadian principle of equality indis:!?utably dictates that the Province of Newfoundland and Labrador must attain the measure of control over those bountiful resources which it brought with it into Confederation as are enjoyed by our sister Provinces over their resources.

It becomes daily more self-evident that reclamation of these basic Provincial rights is an essential prerequisite if we are to ascend the ladder of Confederation. My Government reaffirms its conviction that this Province will take its proper and rightful place as an equal partner in Canada only when the Canadian tradition of provincial ownership rights over its natural resources is recognized. My Ministry is confident that this must and will occur and recommits itself to the relentless pursuit of this basic Canadian right.

My Government takes the view that, because our fishery resources are fundamentally important to Newfoundland, the Province should have substantial rights to manage the fish stocks in our adjacent waters. Newfoundland has been seeking a constitutional amendment to provide for such Provincial management rights -. Th.e principal stock upon which the Northeast Coast is vitally dependent is the Northern cod stocks, which has been recovering gradually from serious overfishing.

In view of the traditional rights o:£; Newfoundland fishermen and th.e constitutional principle that the Provinces have a basic right with respect to our natural resources, my Ministers have adopted the position that the Northern cod must be managed in s.uch. a way as to optimize the benefi.ts to 21

March 12, 1984 Tape No. 6 SD - 2 HON. W. ANTHONY PADDON (Lieutenant-Governor): Newfoundlanders and Labradorians. This longstanding position provides that the Northern cod stock should be allocated first to Newfoundland fishermen and plants and that only surplus stocks· should be allocated to other Canadian fishing effort. My Ministers were deeply disappointed when the Federal Government announced, in its 1984 Groundfish Management Plan, the provision of a substantial long-term allocation of Northern cod to vess·els and plants located outside Newfoundland and Labrador.

Despite the strong opposition of this Province, the Federal Government has implemented this plan notwithstanding the fact that the vessels and plants to which this quota has been allocated have no historic claim to the fishery. Moreover, the Federal Government is proceeding to implement this allocation not­ withstanding the fact that this fish is not surplus to t.he needs. of th.e Newfoundland fishing industry, as clearly· indicated by th.e large number of Newfoundland seasonal plants whose operations continue to be dependent exclusively upon ins·hore. landings·.

My Government is determined to see that changes to. th.e Management Plan are brough.t about to assure this Province its rightful s·h.are .. In th.e meantime., my Government also is taking steps to ensure that the people of this Province. will be able to participate fully in the development of offshore oil and gas resources. The. Department of Development has introduced an Ocean Industries Assistance Program to enable local firms to participate in all aspects of the. offshore industry, especially· those of a more technical nature.

The Province.' s e.xhi:bi ts at various international offs·hore conferences· have draw·n great interest from oil service companies and such efforts will see significant 22

March 12, 1984 Tape No. 6 SD - 3 HON. W. ANTHONY PADDON (Lieutenant-Governor): outside investment flow to the Province. 1983 saw the completion of the syncrolift facility at the St. John's Dry Dock, which is a significant addition to our offshore support capability, and planning is well advanced to create a major new rig repair facility at Marystown.

As the result of a Federal/ Provincial cost sharing agreement, work is proceeding on the construction of a new campus for the College of Fisheries, which will be renamed the Institute of Fisheries and Marine Technology and will have a vital and expanding role in the training of workers for the fis·hing and offshore industries. As the result of federal/provincial co-operation, construction is also underway on a new Marine Emergencies Duties Training Center on the Foxtrap Access Road, to be operated by the new Institute of Fisheries and Marine Technology.

Similarly, other educational institutions·, particularly the College of Trades and Technology, are expanding their programs to meet the challenge of offshore development. The construction of the National Research Council's Ice and Wave Tank facilities at Memorial Univ~rsity is proceeding on s·chedule. This facility, which will be th.e finest of its kind in the world, is another project for which my Government has fought hard.

The expertise it represents will h.elp create the type of technical environment within this Province which will be needed if we, for the first time in our :b....istory, are to be able to participate fully in the development of our marine resources, Mr.. Speaker and Members of the Honourable House of Assembly: A cornerstone of my Government's philosophy has been and remains to acquire the basic right to manage our resources. Only in that way can our people retain as· much . as pos·sible of the direct and 23

March 12, 1984 Tape No. 6 HON. W. ANTHONY PADDON (Lieutenant-Governor): indirect processing activity within the Province and gain the means SD - 4 to acquire a standard of living comparable to that of their fellow Canadians. That principle remains a cardinal objective and can only be achieved through the rightful control and management of resources by the Government of this Province for and on behalf of the people of Newfoundland and Labrador.

My Ministry invites the continued cons ·ideration of the merits of this policy, particularly as it impinges upon current is ·sues ·, in a substantive manner by this Assembly and the people of the Province generally. Its importance cannot be overs·ta ted. There must be subordinated to it all rash approaches based upon expendiency, whether political, commercial, short term or otherwise. The wisdom of my GovernmeNt's approach is demonstrated daily by the enormous loss of revenues arising from the Upper Churchill contract.

Today, long after the short term jobs and profits provided by that project have been terminated and dissipated, a significant measure of the wherewithal needed to address the legitimate needs of our people flows westward. These policies of my Government continue to receive the support of people and groups within and without the Province of Newfoundland and Labrador.

In a recent publication entitled "The Challenge of Diversity", published last year, The Science Council of Canada endorsed these policies and stated that the Government of this Province: " ....••...• must pursue forthright policies which. attempt to capture more of the value of resource developments. Such. policies may offer the only way for the Province to break out of its cycle of dependency." Mr. Speaker and Members . of the Honourable House of Assembly~ My Government clearly and 24

March 12, 1984 T<:pe No . 6 so - 5 EON. W . . ~~THONY PADDON (Lieutena nt-Governor): unequivocally reaffirms these policies . The cy .cle of dependency must and will be broken . Equalization and transfer payments are not the natural fate of our people within the Canadian Confederation. I entreat your constructive and deliberate considera .tion and debate of these issues throughout this Third Session of the Thirty -Ninth General As sembly . MR . SPEAKER (Ru ssell) : The hon . President of the Council . MR . MARSHALL: Mr. Speaker, I give notice of a bill entitled, "An ~.ct To Amend The Department Of Transportation Act," and I ask that this bill be now read a first time. 25

March 12, 1984 Tape No. 7 NM - 1 Motion, the hon. the President of the Council (Mr. Marshall) to introduce a bill, "An Act To Amend The Department Of Transportation Act," by leave, carried. On motion a bill, "An Act To AmeDd The Department Of Transportation Act," read a first time, ordered read a second time on tomorrow. MR. SPEAKER (Russell) : I am pleased to advise all hon. members present that His Honour, the Lieutenant-Governor, has been pleased to present a Speech from the Throne, and for greater accuracy I have obtained a copy. The hon. member for Grand Bank. SOME HON. MEMBERS: Hear, hear! MR. MATTHEWS: Mr.

Speaker, it is my honour and privilege today to move that an address of thanks be presented to His Honour in reply to the gracious Speech from the Throne and that a committee be appointed to draft this reply. I would like to take this opportunity to greet and welcome all hon. members to this Third Session of the Thirty­ Ninth General Assembly. Mr. Speaker, I feel confident that each member of this Legislature has a genuine aim and desire to enhance our social, cultural and economic development, and to ensure that Newfoundlanders and Labradorians have a standard of living equal to that of other Canadians.

Surely this is a most reasonable qoal and 1I assure you, Mr. Speaker, that all members on this side of the House will continue to work earnestly to have our Province take its proper and equal place within the framework of Confederation. SOME HCN. MEMBERS: Hear, hear! 26

March 12, 1984 Tape No. 7 NM - 2 MR. MATTHEWS: I feel that,by working together to resolve the problems facing our Province at this time,we can ~chieve this end and at the same time make significant individual contributions to our constituents. M£. Speaker, I would be remiss if I did not thank the people of the district of Grand Bank for their r.ontinued support and co-operation. The people in the many communities of my district have experienced some very difficult times because of the downturn in the economy and the fishery restructurinq crisis.

Because of the geography of the Burin Peninsula,events affecting one community have a ripple effect throughout the whole area. The peopl~ of Grand Bank, Fortune and St. Lawrence have ex?erienced some very difficult times with respect to the operation of their fish plants. Finally the situation is improving. Because of the firm and positive position taken by this government,Grand Bank now has a new lease on life, St.

Lawrence has been included in the sew company and will be reopening in May,and the people of Fortune are able to mcintain their employment and social patterns and are no longer threatened with disruption because of a proposed merger of work forces of Grand Bank and Fortune. This merger would have caused great social disruption and further unemployment within the towns of Grand Bank and Fortune. Mr. Speaker, I am extremely concerned for the future of the inshore fishermen who are striving to make a living within my district. There are inshore fishermen within all twelve communities of the district of Grand Bank.

Over the past few years,these fishermen have experienced a very serious marketing problem, coupled with low catr.h rates, which have resulted in disastrously 27

March 12, 1984 Tape No. 7 NM - 3 MR. MATTHEWS: low incomes. The many problems of the inshore fishery need immediate attention or else we are in danger of losing this very important sector of the Burin Peninsula fishing industry. 28

March 12, 1984 Tape 8 PK - 1 MR. MATTHEWS: Mr. Speaker, as referred to in the Throne Speech 1 I am most pleased with the progress that has been made towards reactivating the St. Lawrence fluorspar mine. The Provincial Department of Mines ,thrcugh the han. minister , released a promotional package promoting the potential at St. Lawrence on October 21, 1983. Because of the initiati ves taken by government,this project will soon become a reality. SOME HON. MEMBERS: Hear, hear! MR. MATTHEWS: With the reopening of the town's fish plant in May, and the reactivation of the mine, St.

Lawrence will soon be a two-industry town. The people of St. Lawrence are most deserving of the opportunity to make a living through gainful employment. For the past two years the residents of St. Lawrence have survived on UIC, social assistance, and make-work projects. This ·government is not satisfied with that way of life for the people of St. Lawrence and,consequently,took positive injtatives in an attempt to correct the very serious unemployment problem that exist. In some ways,the St. Lawrence situation reminds me of Newfoundland's position with Ottawa.

The Provincial Government could have easily overlooked St. Lawrence and have been content for the people to continue surviving on handouts from UIC and social assistance. The present federal government feels that Newfoundlanders should be content with equalization payments and make-work projects. Mr. Speaker, this government has too much commitment for the long-term benefit of this Province to be content with meager handouts. SOME HON. MEMBERS: Hear, hear! MR. MATTHEWS: When one considers the vastness and potential wealth of our natural resources,it:is self-evident 29

March 12, 1984 Tape 8 PK - 2 MR. MATTHEWS: that Newfoundlanders and Labradorians deserve better and most certainly are entitled to better. Mr. Speaker, this government will continue to strive for the benefit of our people so that some day we will be equal to the average Canadian. Our future lies in the proper utilization of our great resources, resources such as the fishery, the forest, the minerals, the offshore and,of course, that great human resource of young Newfoundlanders. Mr.

Speaker, it is my sincerest wish that we will face the great challenges which lie before us with determination and confidence so that together we can make this great Province of ours a better place in wnich to live. I now move that an Address of Thanks be presented to his han. in reply to the Gracious Speech from the Throne and that a committee be appointed to draft this reply. SOME HON. MEMBERS: Hear, hear! MR. SPEAKER (Russell) SOME HON. ~1EMBE RS : MR. MCLENNON: The hon. member for Windsor-Buchans. Hear, hear! Mr.

Speaker, it is indeed a great honour and privilege for me to stand today to second the motion so ably and graciously presented by my colleague 1 the han. the member for Grand Bank (Mr. Matthews). He is certainly an example of~ high calibre of individuals elected by the people to serve on the government side of this hon. House, and a person of whom the people of the Grand Bank district can be very proud. SOME HON. MEMBERS: Hear, hear! MR. MCLENNON: Mr. Speaker, I am indeed grateful to the people of my district of Windsor-Buchans for giving me the honour to represent them in this hon. House.

April 6, 1982 saw the first time that a Progressive Conserative member was elected 30

March 12, 1984 Tape 8 PK - 3 MR. MCLE~~ON: from the district of Windsor - Buchans since its beginning in ~975. SOME HON . MEMBERS : Hear , hear! MR. MCLENNON : Again, Mr. Speaker, I am very proud to hav e had such an honour bestowed upon me . Mr. Speaker, no one can deny that the last two years have been trying ones for Canada ,and especially Newfoundland 1because of the recession. We have seen all of our industries suffer-the fisheries, the mini ng, the forestry and offshore resources.

The effects of the recession could have been reduced had we had a government in Ottawa which was willing to negotiate a fair and equi table deal for Newfoun dland . Sadly, Mr . Speaker, we saw just last week another of our birthrights taken from us by the Supreme Court of Canada when they ruled that our resources belong to Ott awa. ~1r . Speaker, I was born a Ne\.,foundlander in 1948, and, like other Newfoundlanders, I can never be convinced that we did not own our offshore resources then. It woula have been ludicrous for one to say in 1948 that the 31

March 12, 1984 Tape No. 9 ~1J - 1 MR.. HCLE ?·~lON : Eastern Seaboard off ~ewfoundland's coast belonged to Canada and I feel 1 a3 do most Newfoundlanders and Labradorians, that it is ludicrous to think it todav . SOM!!: HOl\I. MEMBERS : Hear, hear! r!R. HCLENNON: :Regardless of 't7hat the inter pretation of some man made la~vs mig!'lt indicate, regardless of the Su J?reme Court of Canada ruling, this government was given a mandate in 1982 to negotiate a fair and equitable deal for ~ewfoundland and all Canadians.

This mandate still stands and has my support as well as the support of my colleagues,and,I am confident 1 of most Newfoundlanders and Labradorians. SOHE HON. MEMBEP$ : Hear, hear! HR. HCLENNON: :1-~any may think and even say that the offshore resources will do nothing for my district because '<le are an inland district. This is not so, t~r. Speaker. I feel that a reasonable negotiated deal will benefit all Newfoundlanders and Labradorians. 1'7e 'lvill benefit because of the large revenues that will be generated from such a large resource.

These revenues will permit this Province to become self-sufficient such that we will not have to rel y on Ottawa for handouts and equalization payments, I can see lower fuel taxes, lower SSA taxes, cheaper or at least stablized power bills,and many,many more pluses. The Town of Buchans has already benefited somewhat from the offshore ~esources because it has a vast supply of barite, a material used in offshore drilling. Millions of dollars have already been spent in Buchans for converting equipment to produce this product.

Even though the barite operat~on did not operate last year because of large stock piles and less drilling than expected taking place,I. am very optimistic that the Town of Buchans will play a big role in the offshore for many years to come. 32

' • March 12, 1984 Tape No. 9 MJ - 2 HR. MCLENNON: Mr. Speaker, just to take another few minutes to talk about the Town of Buchans, I am sure I do not have to remind anyone that Buchans was dealt a severe blow last year, perhaps even more severe than towns like Corner Brook, Gander and Labrador City. The mining company was forced to completely close down its operation,forcing 80 per cent of the work force in the town out of their jobs. All company employees were laid off except for a mere twenty support staff. This was because of lm-: base .c~ental prices and depleting low grade ore stocks.

This government over the past two years had encouraged exploration in the Buchans area and will continue to do so. Last year exploration was down by $10 million because of the recession. Hopefully,now that we are at the end of the recess±on,we will see once again the private sector invest in the exploration side of mining, Exploration is the lifeline for towns like Buchans. Mr. Speaker, the uemainder of my district depends largely on forests.

The Towns of Badger, Buchans Junction, Millertown are historically known as logging towns because the to~TTJ.smen Here involved in cutting and driving the wood to the pulp and paper mill in Grand Falls. This is soi!lewhat true todav as many of the townspeople are still employed by the paper company. We are all aware of the difficult time that the paper industry is going through today. The future of our mill depends on a large and healthy forest. A few years ago there was much concern because of numerous insects and diseases that were killing our trees.

There was practically no· reforestation or silviculture programmes. During the last few years we have seen this government insist that this rene,vable resource be given a chance. Witt large investments from government .. and paper companies we have seen the implementation of spray prograrnmes,along with reforestation and silviculture programmes. 33

~larch 12 , 19 84 Tape No. 9 l1J - 3 MR . MCLENNON : This will ensure a paper industry for hundreds of years inco the future . ~ . Speaker, last but not least, I should like to say a few words about che Town of Windsor , the olde st incorporated municipality out side the city of St . John's, being incor?orated in 1938 . 9eing che sister town of prosperou s Grand Fall s,one would think that Nindsor will be equally 9r os or:; :ous ,but thi s is nc:>t so .

It appears that if something wa s to be located in the central area ,it went to Gra nd Fall s; for example the hospital , the doctors ' clini cs, the many business op er ations which a town the size of Wind sor could have attracted if it we re fifty or sixty mil es a\o~ay from Gra nd Falls. This being 34

March 12, 1984 Tape 10 EC - 1 MR. McLENNON: so, the town ~.;ras not able to build a strong commercial tax base. Nevertheless, there is hope for \'i'indsor, a light has shone. When I first entered politics, two years ago, Windsor was not included on a provincial government priority industrial parks list. After numerous meetings this government again showed its sensitivity and agreed that Windsor should be included on a priority list. SOME HON. MEMBERS: Hear, hear! MR.

McLENNON: As a result, Windsor was included in a federal/provincial industrial parks agreement, signed last year, which will see the construction of a $2 million industrial park to be started in Windsor this Spring or early Summer. SOME HON. MEMBERS: Hear, hear! MR. McLENNON: Mr. Speaker, I was especially pleased that the Throne Speech addressed the tourism industry and that the federal/provincial agreement is being sought. I feel in years to come this will be the largest industry and employer in my district because of the vast area to be exploited and the many natural tourist attractions within it.

Just to expound briefly, in Summer, my district has the best weather within the Province, without a doubt - SOME HON. MEMBERS : Hear, hear! MR. McLENNON: - the best inland fishery, the best hunting, berry picking, boating, etc. I can go on and on. In Winter we have lots of snow- that is unquestion­ able, all you have to do is drop by - in which one can enjoy endless ski-dooing, cross-country· skiing, ice fishing and rabbit hunting. If people within our own Province took advantage of what nature provided for them in the 35

March 12, 1984 Tape 10 EC - 2 MR . McLENNON : district of Windsor - Buchans, the tourism industry would be booming all year 'round. Mr. Speaker, time does not allow me to speak of all the positive comments in the gracious Throne Speech, but it is quite evident that they are there in black and white for all to read and see. I am confident that the government will ensure that our goals are fulfilled and that 'have not' will be no more. Mr.

Speaker, in closing, it is an honour and pleasure for me today to join in seconding the motion that an address of thanks be presented to His Honour in reply to the gracious Speech from the Throne. SOME HON. MEMBERS: MR. NEARY: MR. SPEAKER (Russell): Opposition. SOME HON . MID ".BERS : MR. NEARY: Thank you. Hear, hear! Mr. Speaker. The hon. the Leader of the Hear, hear! Mr. Speaker, first of all, I want to welcome repnesentatives of Church and State here this afternoon to the opening of the Third Session of the Thirty-Ninth General Assembly of the House of Assembly.

I trust that they are enjoying the session so far and are paying very strict attention to what is being said. Secondly, as all Newfoundlanders and Labradorians are aware, Mr. Speaker, the member for Mount Scio (Mr. Barry), seated to my right, has joined forces .,.Jith tb.e official Opposition. SOME HON. MEMBERS: Hear, hear! MR. NEARY: He has joined the Opposition to fight for what he thinks is just and right for the people of Newfoundland and Labrador, and .w e welcome him, Mr. Speaker, to our side of the Legislature. 36

March 12, 1984 Tape 10 EC - 3 SOHE HON . MEMBERS: Hear, hear! MR . NEARY : Thirdly, Mr. Speaker, I have to take issue with the lateness in getting the House of Assembly open again in light of the crushing economic and financial problems that are facing this Province today . N0\-1, Mr . Speaker, I also want to congratulate two hon . gentlemen, the member for Grand Bank (Mr . Matthews) and the member for Windsor - Buchans (Mr . McLennon), who were chosen to move and second the Addre ss in Reply. I congratulate them for being chosen , Mr . Speaker, but,unfortunately, I cannot congratu­ late them for the content of their s~eches . 37

March 12, 1984 Tape No. 11 SD - 1 MR. NEARY: The member for Grand Bank (Mr. Matthews) was completely out of tune with the Throne Speech, completely out of tune. The hon. member spent a few minutes heaping great praise on the administration there opposite for all the wonderful things that they are doing for the Burin Peninsula, but, ~r. Speaker, he not as much as uttered a word about the participation of the Government of Canada.

Restructuring of the deep-sea fishery, 100 per cent financed by the Government of Canada, the Saviour of the Burin Peninsula, and not a word from the hon. gentleman of recognition; and not a word about the great fund that is being established to develop the Burin Peninsula, not a word, Mr. Speaker. MR. WARREN: He is a great Tory. MR. NEARY: Not a word about federal involvement in the re-opening of the St. Lawrence mine. If it does open, it will not open without federal involvement. Did you hear, Mr. Speaker, did you hear the hon. gentleman mention that in his remarks? I am not going to belabour the point, Mr.

Speaker. MR. WARREN: He will pay for it. MR. NEARY: The member for Windsor--Buchans (Mr. McLennan)_ made his maiden speech, I believe, in this House. MR. WARREN: SOME RON. MEMBERS : MR. NEARY: That is right. Oh, oh._ The hon. gentleman has been h.ere two and a half years and today h.e made his maiden speech. Now, Mr.. Speaker, let me go on and comment on the opening paragraphs of the gracious Speech from the Throne. The opening _paragraphs, if hon. members will recall, had to do with the 200th Anniversary of the Roman Catholic Church in this Province and the visit in 38

March 12, 1984 Tape No. 11 SD - 2 MR. NEARY: September of His Holiness the Pope. Now, Mr. Speaker, I am sure that members on either side of the House,or the guests or the people in the public gallery cannot find fault with these opening remarks. I would like also to remind han. gentlemen on both sides of the House of another anniversary that is taking place this year, the 35th Anniversary of Confederation. One stroke before midnight on the 31st of this month will be the 35th Anniversary of Confederation. Now I sad to have to report, Mr .

Speaker, that in this anniversary year, our 35th Anniversary Year,that the battle as to whether or not Newfoundland should join Canada is still going on. The anti-Confederates, Mr. Speaker, are most vocal today 1 talking about separating from Canada, trying to get their revenge because they lost that great battle back in 1948 and 1949. And what it is narrowing down to in this Province 1 by the way, today is the fight between the Confederates and the anti-Confederates. And, unfortunately,the anti-Confederates are getting fewer all the time.

Professor Grasser over at Memorial University tells us that only 18 per cent of the population would vote to separate from Canada today. MR. WARREN: Including the Premier. MR. NEARY: That is a far cry from ho.;.r close the vote was :Cack in 1949. So, Mr. Speaker, I will not belal:xlur the point any further either 1 because I have so many more important things to talk about. Mr. Speaker, there are so many hyprocrisies in th.e document that was just tabled in the House~ 39

March 12,1984 Tape No. 12 ah-1 MR.NEARY: I have to say, Mr.Speaker, also,before I get to the meat of my remarks,that every year to my knowledge since Confederation,the Throne Speech, the document has been presented to the Leader of the Opposition,confidentially1a half hour or so before the House actually hears the Speech read by His Honour-except this year. I received the document the same time as all other hon. members of the House. But , Mr. Speaker, that is in keeping with the way the hon. gentlemen there opposite have been treating the Opposition in the last year and a half to two years.

I believe the people of Newfoundland on April 7,1982 were very concerned about the overwhelming mandate that was given the Premier of this Province and his administration. They were very concerned because they were afraid that the administration would become dictatorial and arrogant. MR. WARREN: How true. MR.NEARY: Now, Mr. Speaker, I ask you1 in view of the occurances of the last couple of years,has that not happened? My friend the member for Fogo (Mr. Tulk) evicted from his office, thrown out off his office,by the hon. gentlemen there opposite. MR. HODDER: MR.NEARY: as my hon. colleague says.

No place to hang his hat. 'No place to hang his hat, 1 MR. WARREN: we are going to get it back, though, are we rot? MR.NEARY: No. I remember the Premier wrote me about that situation. 'Let me clarify it,' he said. 'You have diminished by one and we have increased by one1and therefore you lose an office.' Well,not too long after,my colleague,the member for Mount Scio (Mr.Barry),joined forces with the great Liberal party of this Province,we had a 40

March 12,1984 Tape No. 12 ah-2 MR.NEARY: letter back to the hon. gentleman and Your Honour reminding the hon. gentleman of his own words, his own words. ~ou have diminished by one and we have increased by one,so therefore give my colleague the member for Fogo (Mr.Tulk) back his office and his furniture.' Because his furniture was siezed also, Your Honour. SOME HON.MEMBERS: Oh, oh~ MR.NEARY: Now, Mr. Speaker, the han. gentleman there opposite tells us that he is going to put away his clubs and his sticks. And to look at him today 1 dressed up in his Charlie McCarthy suit over there, Mr.

Speaker, I am beginning to believe that he is genuinely trying to change his image. And I want to say to han. members why the television cameras are not here in the House today to get a look at the hon. gentleman all dickied off and dolled up in his tux. We were asked on this side of the House if we would allow a live broadcast of the proceedings of the House of Assembly. The question that I put to Your Honour, when Your Honour called me,'What about the government?'And Your Honour up to that point in time had not approached the government.

But when Your Honour called me this morning, I put the question again, 'Whatabout the government?' And I was told that if the broadcast media were not prepared to cover the entire session , the opening of the House of Assembly today,that the government would not 41

March 12, 1984 Tape 13 EC - 1 MR. NEARY : agree to having any part or portion of it broadcast. So, Mr. Speaker, that is why the television cameras and the photographers are not in here today to see that the rabbit snares have been put away and that the hon. gentleman indeed does intend to change his image. Nm¥, Mr. Speaker, I started to talk about the hypocrisies in this document and I really do not know where to begin. A sample of the hypocrisy, for instance, is on page 10 of the document where the Speech says this administration looks forward to strengthening the tourist industry in this Province. Mr.

Speaker, that statement comes from an administration that only a few weeks ago advertised the Norma and Gladys for sale. And, Mr. Speaker, can you imagine that that statement comes from the very same administration which allowed the ancient church down by the side of the road there in Topsail to be torn down? That statement is made by an administration th~t is allowing the ancient churca down here at Quidi Vidi to rot into obscurity, and the same administration, Mr. Speaker, that let them tear down St. Michael's Church over on Bell Island. Mr.

Speaker, the next example o£ hypocrisy in the document has to do with control of our resources. This is a new kick now that the bon. gentlemen are on , and we will probably hear more about this because I saw the theme coming through today in the Throne Speech, echoed and parroted by the two hon. gentlemen who moved and seconded the Address in Reply, that now they are going to drape themselves in the flag, Mr. Speaker, and every time you hear criticism levelled at the administratjon £or their incompetence and their mismanagement or negligence, they will say, 'Hold it now! 42

March 12, 1984 Tape 13 EC - 2 MR. NEARY : Cool it! tve believe we should have control of our resources. That is 1-1hat the fight is all about. Put the whole Province on welfare, turn it into a welfare state but we are going to keep on fighting for control of our offshore resources,' so that they can be - as the bon . gen tlelllan will tell us when he rises L..1 speak and ans1·1er me - so t.hey can be managed wisely a.'ld astutely by the administration . ~·lell, Mr .

Spe>aker, is not this the same administration asking for control of resources - and I will deal with the control end of it later in my fe1-1 remarks - is not this the very same administration that admitted a few weeks ago,1o1hen the hon . the Premier took to the air lvaves , that we have in this Province, for the third year running, a substantial deficit in current account, this year a projected $100 million deficit in cur=ent account? This is the administration that is asking us, asking the world, for more control over resources, Mr . Speaker .

You can see how hypocritical it is when I point out that they cannot even manage what they have no1o1 . And they are about to crucify the public service, 43

March 12, 1984 Tape No. 14 SD - 1 MR. NEARY: to ask them to make up for their economic and fiscal blunders. And, Mr. Speaker, I could hardly believe what I was hearing from the Throne Speech, when we heard about the Public Tendering Act. This is a real pet of hon. gentlemen and they tell us the Public Tendering Act is going to be tightened up, Mr. Speaker- And yet in "the last session of the House, in the dying days of the last session of the House of Assembly 1 we questioned the Premier and the administration about a $2 million ferry - MR. TULK: $1.6 million. MR.

NEARY: - excuse me, $1.6 million ferry that had been purchased by the Province that could have been bought for $250,000 that the Auditor General was so concerned about. So you see, Mr. Speaker, this is the same administration that refuses to allow a public inquiry into that transaction. I am glad that on page 1.0 the Premier took my advice that I gave last week when I appeared on radio and television in developing new species of sea life. I outlined recommendations in that speech during my recent province-wide address to our people, Mr. Speaker, and I am glad that the hon. gentleman was listening. Mr.

Speaker, if I may, I would like to recommend to this House that on this occasion we nominate for the first award for bravery in this Province the author of the document that was just delivered and read to this House by His Honour the Lieutenant-Governor. Mr. Speaker, I do not know if it was t.he hon. gentleman who was the author of it,but, Mr. Speaker, I believe the author should get the first award for bravery i:n this Province. The Throne Speech that we heard this· afternoon, Mr. Speaker, did not deal _with any of the matters that are concerning the ordinary people of this Province.

We saw a host of glaring excuses for failing to do anything about the real problems in this Province. The 44

March 12, 1984 Tape No. 14 SD - 2 MR. NEARY: document was a mixture of rhetoric, petty politics and excuses. There is no real help in that Throne Speech, Mr. Speaker, there is no plan of action to tackle the problems facing our people. The speech is a dead document, a piece of political rhetoric without life. In between each and every line, Mr. Speaker, I see a rehash of the same old things that we heard before. And, Mr.

Speaker, without sounding over-dramatic, I could hear a voice screaming out from between the pages begging for help, the voice .in between the covers of the Throne Speech held in the hands of His Honour this afternoon, Mr.

Speaker, is shouting out for jobs for our unemployed, help for our fishermen, assistance for small businesses which are fighting for survival and trying to stave off bankruptcy 1 shouting for plans to show up the economy at Marystown and Corner Brook and Gander and Labrador City and Burin and a hos ·t of other towns and communi ties that are being brutalized by the mismanagement of our finances and the economy by the present administration,and by the lack of an offshore oil agreement and the non-existence of the development of our natural resources. 'Please give us work and help/is what we are hearing, Mr.

Speaker. 'Please give us hope and not despair, not excuses or blame for not doing your homework.' ~tr. Speaker, it looks to me like that voice remains unheard here today 45

March 12, 1984 Tape No. 15 MJ - 1 MR. NEARY: because there are no plans or no policies to help our people in the Speech from the Throne that we just heard. It is a document without a soul, without a conscience and without morality. It is not the kind of soul-searching, creative, imaginative speech one would expect in these dark days,and it is a far cry from a blueprint for the economic recovery in this Province. I do not know, Mr. Speaker, if hon. gentleman are aware that in the Throne Speech is supposed to be a list of plans and a blueprint for the future of this Province. But, Mr.

Speaker, given the track record,of course,of this adrninistration,we could hardly expect anything other than -what it is. It is the same old excuse, blame it on this and blame it on that, blame it on Ottawa, blame it on everyone and anythin~ except the present administration. r1r. Speaker, we support health care reform and we support any honest, down-to-earth measures to eliminate extravagance and waste or abuse of the public treasury.

We support the end of policies that puts politics ahead of people and •·re suoport any attempt to stop driving our economy into the depths of economic oblivion and reverse this trend. now I ask you, Mr. Speaker, in all fairness and in all honestv -and I know Your Honour cannot answer me -if these things have been addressed in today's Throne Speech or have been accomplished? ~- Speaker, where are the alternatives to these negative and unenlightened words that we have heard today?

Is there anything in the speech to help restore investor confidence in this Province or will they be forced to continue to wring their hands in anguish and frustration and move to Halifax,where that Province has created a healthy, political climate for business and industry to locate~ Mr. Speaker,. the record of this administration is a sad list of failures and neglect and irresponsibility. Unless the 46

March 12, 1984 Tape No. 15 MJ - 2 MR. NEARY: administration changes its policies and takes a new direction, the entire Province, ~1r. Speaker, may become a welfare state. There is no indication in this Throne Speech that there will be a change in philosophy and it holds no promise for our people. The inshore fishermen, Mr. Speaker, who are desperately trying to hang in there against great odds,will find no answer or no help in that document.

There is not a single word in that speech that will gladen the hearts of fishermen and plant workers throughout this Province who have been ignored by this administration for so long. In their preoccm?ation >vi th oil, Mr. Speaker, all other industries, especially our most basic industry,the fishery, has been neglected by this administration,and,as a result,the economy of every major town and city throughout Newfoundland and Labrador today is in serious trouble. There is no excuse, Mr. Speaker, for allowing our most basic industry to get in such an inconceivable mess.

The slowness whereby the deepsea fishery is being restructured is a matter of grave concern to evervbodv. And the fact that fishermen and plant wor~ers have been unable to sit down to bargain and to neaotiate an agreement with the super company will be a biq issue in the weeks and months ahead 1 as is indicated bv the Pnity 1984 crusade that seems to be gathering momentum across this Province. 47

March 12, 1984 Tape 16 PK - 1 MR. NEARY: Mr. Speaker, apart from the labour relations aspect of the problem that is looming on the horizon, the architects of restructuring are also sending out vibes and messages that the super company could be in trouble before it starts, and I am told they cannot even agree on a name for the super company,let alone the selection of the chief executive officer of that company. Mr. Speaker, the problems in the inshore fishery have been building up for several years but,due to the lack of planning and a weak Provincial Minister of Fisheries (Mr.

Morgan) ,nothing has been done to help the industry. Fishermen's insurance have increased drastically, the cost of fuel and gear is up substantially, interest rates went sky high and fishermen's incomes fell greatly because of the loss of income from squid, capelin to a large degree,and herring. During this period, Mr.

Speaker, when all of these things were happening to our inshore fishermen ,the price of fish hardly budged, did not change to correspond with their reduced income, and today we are told,by people in the know,that just about every longliner operator and every inshore dragger operator in this Province is bankrupt. Mr. Speaker, there is not a word in the Throne Speech today to denote a blueprint of government plans and programmes for the years ahead that will give these primary producers in this Province anything to cheer about.

Nor will any of the words that we heard this afernoon encourage the people in Gander and Labrador City, where reference was·made in the Throne Speech about the assistance that was given as a result of the task force that was set up . Mr. Speaker, are hon. members aware that the recommendation that was made and adopted by the administration there opposite is 'Move first, collect later'? That is the policy-. '~.fove first, ,collect later. ' And as a result 48

March 12, 1984 Tape 16 PK - 2 MR. NEARY: of that kind of policy,many of the people who have been laid off, Mr. Speaker, in Labrador City are economically marooned. Mr. Speaker, many ,many communities throughout Newfoundland and Labrador are suffering misery and pain because of the incompetence and the mismanagement and the failure of the administration there opposite. You know, Mr. Speaker, the 152,000 trusting and loyal Newfoundlanders and Labradorians who believed the Premier's call for help in getting an offshore agreement in 1982 are raging today with anger at the way the Premier has betrayed this trust.

There is no agreement, no attempt to get an agreement, only a statement from the Premier that he will continue fighting-shadowboxing\ His policies of confrontation, Mr. Speaker, have failed to resolve this matter. And when the Premier and his so-called advisors put the ownership question before the court instead of negotiating a political agreement while the Province still had somebargaining power left,he blew it,and history will condemn the hon. gentleman for that. Mr. Speaker, there is no longer an ownership question. It is

an act of stupidity for this administration, Mr. Speaker, to lay back,to continue to play political games with the issue while our people are reaching the limit of their patience and while the Province nears the boiling point with this administration. Mr. Speaker, there is a quiet revolution taking place in this Province today. At various times in our history , Sir, people have turned against government in a hostile kind of way. But, ~~- Speaker, I doubt,because of the better education and a more enlightened society,that we will see the violence here in Newfoundland that occurred in the 1930s, I 49

March 12, 1984 Tape 16 PK - 3 MR. NEARY: doubt very much if there will be a recurrence of that kind of thing. But that is not 50

March 12, 1984 Tape No. 17 NM - 1 MR. NEARY: to say, Mr. Speaker, that we will not see a revolution of sorts happening now very quietly. The way people rebel and revolt in a civilized, democratic society is to exercise the power of the ballot. Mr. Speaker, the hon. the Premier has failed to deliver on his mandate. Mr. Speaker, does this mean that the people of this Province have to wait another two or three years until he decides to call an election? Or does he have the couraqe today, this qreat fighter, who is almost willing to start a war so he can sacrifice his life for Newfoundland, Mr.

Speaker, does he have the courage today to put the same issues oefore the people that he did in 1982? MR. MORGAN: MR. NEARY: He did it in Terra Nova. Mr. Speaker, in any parliamentary democracy,if a leader asks for and receives a mandate on a specific matter or issue and fails,does he not then have a moral obligation to the people to allow them to indicate their feelings or admit his failure and seek sounder and wiser and better advice than he has been getting all along? Mr. Speaker, wild, loud sho• .1ts and rantings and ravings from the Premier and his stubborness will accomplish nothinq.

The federal qovernment is willing to neqotiate, most people throughout this Province today want an offshore agreement,and still the Premier refuses to neqotiate in qood faith or practice what is generally known in politics as the art of compromise. Mr. Speaker, he is like a little boy playing marbles~ "Play my way or I am not playinq anymore." 51

March 12, 1984 Tape No . 17 NM - 2 ~ . NEARY: ~r . Speaker, the statement that we have to get back control of our resources is a phony attempt by this administration to distract attention from their own negligence and failure and incompetence. r·isherv juriscictio n,for exa~pl~,is alreadv a shared responsibility­ even a Kindergarten student is aware of that . And,you know, Mr .

Speaker, the pat~etic irony of the hon . gentleman's reasoning is that it is in the area of provincial responsibility in the fishery that we are in serious trouble, namely the processing sector 1 \-Tbich is a provincial responsibility. ~~ . Speaker, it is possible that under the restructuring aqreement the bon . qentleman has already given away a great deal of provincial jurisdiction that he had previously , because the Province now,as anybody knot-TS, only has a minority voice on the board of directors of this new super company. 52

March 12, 1984 Tape 18 EC - 1 MR. NEARY: Mr. Speaker, in the area of offshore resources, the Newfoundland Appeals Court and the Supreme Court of Canada stated Newfoundland never did own these resources. Yet, Mr. Speaker, day in and day out I hear the Premier and his First Lieutenant, the Government House Leader (Mr. Marshall) making statements to the effect that we brought these resources into Canada, 'rhey are stealing our resources- This great Canadian wolf is taking our resources away from us, Mr.

Speaker, and they completely ignore the fact that two courts have said that we never did own the resources and we did not bring ~he resources into Confederation. And even if the hon. gentlemen did succeed in separating from Canada,that would still not give us control of these resources offshore. Mr. Speaker, I would submit that the reason the hon. the Premier ignores these facts is that he is trying to turn attention away from the real facts and that is that there has to be a negotiated settlement. And, Mr.

Speaker, I would submit to the hon. gentleman, there will be a negotiated set.tlement without his juvenile list of pre-conditions. Mr. Speaker, I would suggest to hon. mew~ers that probably the fact of the matter is that the Premier is trying to draw attention away from the incredible fiscal and economic nightmare his administration has created and that he himself admitted on T.V. a few days ago - he is deliberately, Mr. Speaker, in my opinion, and in our opinion, creating a red herring, a camouflage· Mr. Speaker, he is deliberately wrapping himself in the flag again for his own mysterious political ends. Mr.

Speaker, the Premier raised these irrational issues to take people's minds off the highest taxes in Canada, record unemployment, 53

March l2, 19 84 Tape 18 EC .,. 2 MR. NEARY: especially among our young people, staggering electricity rates, business and industry failing right, left and center, a stampede of young people forced to leave the Province, a $.4 billion dollar debt and an ever-growing current account deficit that he cannot manage and which he wants the Province's civil servants to pay for. Not-1, Mr. Speaker 1 I coulc'l ge on and on today outlining in detail the failure of this a~~istratien to meet even one of its social and economic responsibilities.

Ho~vever, there will be ample opportunity during the Throne Speech debate for my colleagues and me to express aur vie,.;s on these matters and place them before the Heuse. We hope to be able to provide alternatives to the current st.ate of misery that is being <!J.raped over our people by the administration there opposite. Suffice it to say then, ~1r. Speaker, that I am not impressed \vi th the Throne Speech. The people \vill not be impressed, business and industry will not be impressed.

As the session progresses 1 Sir, ;.;e in the official Opposition inte.nd to go all out to focus attention of members in this hen. House on the urgency of fL"lding solutions to our many, many social and economic crises before this .grand, old Province, Mr. Speaker, tumbles over the edge into complete and final oblivion. Thank you. 54

March 12,1984 MR. SPEAKER (Russell) SOME HON.MEMBERS: Tape No.l9 The hon. the Premier. Hear, hear! ah-1 PREMIER PECKFORD: Mr. Speaker, first of all just let me on behalf of the government welcome everyone here, who could get here today, to this Third Session of the 39th General A~sembly. The weather has not been very good all day but I see outside now , Mr. Speaker, that things have cleared up and the sun is almost shining. I do not know if it was still stormy when the Leader of the Opposition (Mr.Neary) sat down and the sun started to shine when I got up. I do not think so, no, Mr.

Speaker, I do not think it had anything to do with that. ~1R. NE.ARY: It is a federal responsibility. PREMIER PECKFORD: Yes, it is a federal responsibility, the meteorological investigations. Let me also welcome , as did the Leader of the Opposition, the members of church and state who each year come here to listen to the Throne Speech and to listen to the proceedings of this day"which has a bit of pomp and pageantry to it. And I hope that we will always continue to have that kind of a session, that when we start a new session of the House of Assembly that we will do it in the manner that we are doing it now.

In another couple of years, Mr.Speaker, we will be no longer in this Chamber. In another year or two the Chamber will move down to the main floor,so there will be only another one or two sessions here on the ninth and tenth floor of this building. We will have a new Ch~ber for the House of Assembl? on the main floor, so we are 5etting near the end of the period when the Legislature is held on these two floors of this tower in this Confederation Building. Let me also, Mr. Speaker, 55

March 12,1984 Tape No. 19 ah-2 PREMIER PECKFORD: congratulate the hon. member for Grand Bank (Mr. Matthews) and the hon. the member for Windsor-Buchans (Mr. HcLennon) for what I thought were excellent, succinct speeches and I think it augers well for the backbench over here, Mr. Speaker. I think I have a problem on my hands of watching qualified back­ benchers who are still in the backbench,who are pushing some of the ministers who are in the front bench. I wasvery pleased and proud to listen to those two hon. members toda~they did a great job in moving and seconding the gracious Speech from the Throne. ~1r.

Speaker, since the Leader of the Opposition (Mr.Neary) wished to welcome certain members to the House, let me welcome to the House of Assembly the member for Terra Nova (Mr.Greening), who won that district in December. SOME HON.MEMBERS: Hear, hear! PREMIER PECKFORD: It is the first time that that district has been Progressive Conservative since 1932, Mr. Speaker. _I think that the hon. gentleman only got elected two or three months ago, so perhaps that says something about waat is going on in rural Newfoundland.

We welcome the hon. member and look forward to his contributions to this House and to representing the good people of Terra Nova district. Mr. Speaker, let me also make note of the first points in the Throne Speech and that is the 200th Anniversary of the official establishment of the Roman Catholic Church in Newfoundland and Labrador,and the visit of His Holiness John Paul II to our Province. Mr. Speaker, we have just recently come through a fairly interesting and exciting time,when the Prince and Princess were here,and I understand 56

March 12,1984 Tape No. 19 ah-3 PREMIER PECKFORD: that we had in the St.John's area at that time somewhere around 30,000 or 40,000 people. We might have gotten to 50,000 people. And talking about tourism, Mr. Speaker, as the Speech mentions it is interesting to note that from the recommendations and studies that have been done by the Committee that are looking after the visit of His Holiness we are looking at - there have been all ranges of nurnbers 1 but we are looking at somewhere around 100,000 to 120/000 in the environs of St. John's and I do not know how we are going to be able to ;,,r,dle all of that.

It is going to really test the mettle of all the people in this area. So it is going to be an extremely historic event and it is highly unlikely that in the near or immediate future,or intermediate future we are going to see as many peop~e gather in the St. John's metropolitan area again for a long, long time. So we look forward to the visit and to the anniversary and I am sure I speak on behalf of all Newfoundlanders and Labradorians when I say that. Now, Mr. Speaker, I do not wish to be too long. I know it is pretty long and tiring on members sitting here through this session.

I just have a few words that I wish to say as it relates to the Throne Speech. First of all as everybody knows, Mr. Speaker, and it is ·no secret that with the communications and technology that we have today around the world we can sit and our living rooms and see what is going on in Beruit or down in Brazil or somewhere else in the world and also in our own._Province or in;,our own country. .ZI,.s the Throne Speech mentions, Mr. Speaker, we have come through a pretty, pretty hard time over the last two years here in Newfoundland as well as in Canada.

It is just incredible how resilient the Newfoundland people and the economy generally has been through this very, very trying time. 57

March 12,1984 Tape No. 19 ah-4 PREMIER PECKFORD: For example,.in 1975 there were 3,490 people working at Labrador City with the Iron Ore Company of Canada and today there are 1,489. This 58

March 12, 1984 Tape No. 20 NM - 1 PREMIER PECKFORD: will give you an idea of just what happened in that one community. In Wabush there used to be 950 people workinq there, there are 620. In Baie Verte there used to be 631, now there are 307, and so on. It is amazing to me, looking at the economy of Newfoundland over the last couple of vears,the resiliency that has been there,and the people being able to move,and helped to be moved to other places to try to get jobs. So ln the mining industry alone we have lost almost a couple of thousand iobs.

In the forest industry, when you look at Bowaters with the downtime that it had in 1983 plus losinq close to 700 jobs in the woods and in the mill, that has been hard hit. If you look at the fishery, we have had problems with the offshore fishery in particular. So we have come throuqh an extremely difficult and arduous time,as the Throne Speech mentions, Mr. Speaker. We would like to think that we have sort of bottomed out on that whole process of trees, of mininq and of fish. And I was really disappointed to hear the Leader of the Opposition (Mr.

Neary) say today that when we do not get agreements signed we cannot neqotiate, when we do get agreements signed they are no good. I would like to put up as a model, Mr. Speaker, that fisheries restructuring agreement. I do not think it is any secret to anybody in this Chamber this evening that when that whole matter of the fishery restructurinq came up dnd the federal government unilaterally decided that they were qoing to take over all the fish companies in Newfoundland, that our preferred 59

March 12, 1984 Tape No. 20 NM - 2 PREMIER PECKFORD: position was to leave it in private hands. we triecl hard through all last Summer to keep it in private hands but were unsuccessful. We did not have the luxury of a number of investors like Nova Scotia did to help out National Sea They just did not come forward, they are just not here. So we were left to try to neqotiate the best deal 'tTe could with very few cards to play. It is no secret that a unilateral announcement by the federal government on thiit restructuring agreement said "Grand Bank will close today, Burin will close today.

Gaultois, your time is almost up. Harbour Breton, we do not know what to do with you." And today, this very day as we stand here- I guess we are too modest or something, or we hide our successes - Grand Bank is open today, Burin has been changed to a secondary processing plant to compete in the Canadian market. It is the first time in our history that we are able to qet a fish plant to go into secondary proceseinq so we get the value added from that and the jobs from that and to compete with National Sea in the Canadian market place for our processed fish products .

Those Plants would not be open today if the Government of Newfoundland had not stood fast last year and said to the federal qovernment, "We will sit down and negotiate an agreement with you but one that is consistent wjth the objectives and goals of ~his administration iind that is to revitalize rural Newfoundland and keep it alive in places like Grand Bank and Burin." And I am very proud of that particular agreement. SOME HON. MEMBERS: Hear, hear! 60

March 12, 1984 Tape No. 20 NM - 3 PREMIER PECKFORD: But more important than that, Mr.

Speaker, than getting those plants open and giving them another lease on life, more important than that, and the Throne Speech mentions it, and there are a number of very important ingredients contained in that agreement which are important for Newfoundland,and I think,for example,of the Resource Utilization Task Force, biq phrases, big words, we neqotiated, and this was our component, we negotiated this, we insisted that this be in the agreement, that in any agreement that we would sign that there would have to be a complete assessment done on the fish resource around Newfoundland and Labrador, redfish, squid, caplin, turbot, flounder, flatfish, Northern turbot, Northern cod and so on,so that we can g~t a handle on just how big is the resource, hm'i' much is there and then after you determine how much is there, how do vou .. spread it around and try to make most places economic and viable.

Now,that is a very important component to have in there because when that report is completed it will be on the basis of that report that we will be able to build a business plan and try to ensure that the fish qets around to the various plants to keep them open. That is the critical part of it. Another critical part of the aqreement had to do with the resource short plant programme. The Leader of the Opposition (Mr. Neary) said today that we said nothing about the inshore fishermen, that we were ignoring the plight of the inshore fishermen. Well,we made sure in that agreement that 61

March 12, 1984 Tape No. 21 MJ - 1 PREHIER PECKFORD: there was a resource short plant programme whereby fish was going to be taken from offshore and brought into those inshore plants to help make them viable so they just would not have to depend upon the short season in the Summer. Thirdly, Mr. Speaker, in that whole fishery area, who is trying to protect the Labrador Coast and St. Anthony? We ensured that there was a provision in there for a new corporation to be establishec to operate the fishery of the Northern Coast of Labrador and St. ~~thony. By the way, I-1r.

Speaker, that fishery there would not be in nearly as much trouble, even with all its cycles, if, in fact, a few vears ago the federal Minister of Fisheries, Mr. LeBlanc, had not given s!'lrimp licences off Labrador to his friends in New Brunswick. Now,that is why we have got some problems up there with the economics of the Northern Peninsula,and especially Labrador. MR. ~-1...1\.RSHALL: And Quebec. PREM iDER PECKFORD: And licences into Quebec, Mr. Speaker. I mean,that is another provision in that restructuring agreement.

Now,as far as the slowness of it goes, there are three partners to that agreement, ourselves, the federal government and the Bank of Nova Scotia, and there has been an awful lot of legalities. There were legal attempts down in Boston to prevent this from happening, to prevent this agreement from coming into fruition, that had to be dealt with. We had to buy out all the shareholders in the existing companies like the Lake Group and John Penny and Son and Fishery Products Limited. And all of that has been completed. As a matter of fact, Mr.

Speaker, perhaps before this week is out the board of directors will be announced and within about ten days after that we will have a CEO in place to start that company off. 62

March 12, 1984 Tape No. 21 MJ - 2 PREMIER PECKFORD: But in the meantime,the Government of Newfoundland , and the Government of Canada 1 and the Bank of Nova Scotia did not wait for that; we have opened all the plants, \ve have sailed the trawlers and as the Minister of Fisheries (Mr. Morgan) has been saying in the last few days, I have heard him myself and seen it in the papers, \-<e have moved ahead and taken risks and taken chances so that we could put people back to work and the fishery is better off today. As far as more jurisdiction goes, the only jurisdiction the Province has is the processing end.

We had no say in Fishery Products Limited when it \vas a company by itself, we had no say in the Lake Group of Companies when it was by itself, ,..,e had no say · in John Penny and Scm when it was by itsel-F 1 no•q we are on the Board of Directors of the company that has all of those companies or plants in it so we have a lot more influence now than we did hitherto :fior even though we would prefer to see the fishery more in private hands than it is today and,of course 1 in that agreement there is a provision to put the fish plants back into private hands as soon as we get the thing straightened out.

The bottom line on the fishery, Mr.

Speaker, as I have said so often and many,many people before me, before I was born, you cannot have a sawmill if you do not have saw logs, you cannot have a mine if you do not have ore,and you cannot have a fish plant if you do not have fish. ~nd as the gracious Speech from the Throne points out, we have to reiterate because it is logical and rational, we have to reiterate, that it is not fair, it is grossly unfair for the federal government, the federal Minister of Fisheries to '"Jrina in a manag .ement plan which sees more and more of the Northern cod resource, which we caught 100 per cent from 1497 until 1976,suddenlv being split up and going to plants on the r~ainland \llhich never before had access to that Northern Cod 1 while we have 20 per cent unemployment 63

March 12, 1984 Tape No. 21 MJ - 3 PREM IER PECKFOR D: and many,many fish plants closed down. That is just not fair and we would not be doing our duty to the people of Newfoundland if we di d not point that out. So you ha ve to ha ve the fish ,but while the fish is being eroded away, the stock is being eroded away like that. And then the Leader of the OJ? posi tion U1 r. ~ear

y) can talk about unemployment and talk about the fisher y . viell, let the Leader of the Opposition talk about the fish that has been taken from our shores and brought elsewhere who never, ever had entitlement to it before. SOME HON. ME:t>'I.BERS : Hear, hear! PREMIER PECKFORD: And, Mr. Speaker, that is not being selfish. We cannot go up to the coast of New Brunswick and bring their fish down here, how come,then,they can come on our shores and bring our fish up there? It is just grossly unfair.

Now,if we were somewhere near the Canadian average in unemployment rates and in taxation rates, no problem, we must share as good Canadians. But here we are the worst off in Canada and we see further and further erosions ever y y ear on one of the basic fish stocks which is supposed to feed that new company and feed the independents and feed the inshore fishery. I mean, some of that fish also swims in- shore and helps the inshore fishery in the Summertime. I mean .you cannot catch a fish twice, if it is gone it is gone. So on the whole fishery, Hr.

Speaker, as the Throne Speech points out, I think the go vernment can ( and should indicate to the people of this Province that we believe that we have done as good a job as was possible under the circumstances to get an ongoing • influence ·into the fishery and to incorporate into the new agreement components and factors and clauses which will protect us .for the long term. 64

March 12, 1984 Tape No. 22 SD - l PREMIER PECKFORD: That is what we believe, Mr. Speaker, and at the same time we did not forget the inshore fishery. The Minister of Fish8ries (Mr. Morgan), the Minister of Development (Mr. Windsor) and the Minister of Finance (Dr. Collins) have, over the last twelve months ,guaranteed loans of $30 million. To whom, Mr. Speaker, to whom?

To the inshore fishery of Newfoundland and Labrador to help those independent operators out there who needed some helo, and we kept thousands and thousands of plant workers employed, having jobs and plant opened all last year and the year before - $30 million. MR. MORGAN: And markets for fishermen. PREMIER PECKFORD: Yes, and markets for fishermen besides. So we are proud of the record that we have in the fishery of Newfoundland and what we have been able to do­ Hopefully over the next couple of weeks we will be able to get the new company established and get it into operation and so on. But as I have said, Mr.

Speaker, over the last number of weeks, you know, and you hear certain people saying that we are trying to establish this on the backs of workers and so on, I mean, let us be realistic, there is now $105 million gone into that new fish company to bail out the debts of the three old companies.Where did that $105 million come from, Mr. Speaker? Seventy-five million from the federal government and $30 million from us, the provincial government~ another $30 millio~not the same $30 million as I just talked about for the inshore fishery, another $30 million, $105 million.

That came from the taxpayers of Canada and the taxpayers of New£oundland 1 not just from the fishermen or the fish plant workers; it came from miners in B.C. and wheat farmers in Saskatchewan and shopkeepers in St. John's, Newfoundland. That is where that $105 million carne frorn,it never just came from the workers who are in the fishery. So how can certain leaders say in this Province that suddenly we 65

March 12, 1984 Tape No. 22 SD - 2 PREMIER PECKFORD: are trying to make the fishery succeed on the backs of the workers or the fisher~en or the fish plant workers or the trawlermen? The fishery already has $105 million in there of everybody's money in Canada, of every­ body's money. By the same token 1 those fish plant workers and fishermen and trawlermen have to understand that, if we are going to get through this time and get markets and have high quality,that they too are going to have to sacrifice, they too are going to have to pull their share of the load.

A whole bunch of Canadians have already pulled $105 million along and might have to pull more before it is over. So it is not unreasonable to expect those who are working in the industry to also pull their share of the load. That does not only go for the fishery 1 that goes for forestry. Abitibi-Price lost $14 million last year here in the Province in Grand Falls and Stephenville. You think we got a problem in Corner Brook? We also got one in Grand Falls and Stephenville. But people have got to be realistic until we get out of the hard times we are in right now. And the same way in the mining industry.

There are no easy answers. And if there is a failure in the inshore fishery this year, you know, a lot of people migh .t like to blame it on me. I cannot make the fish swim inshore 1nor can I make the United States import more iron ore 1 nor can I make Europe take away its tariff on paper or take away its tariff on process·ed fish products for that matter, you just cannot do it. We are an export orientated society because we are primary producers,and that is a fact of life that we have to admit.

And then we have 1 after admitting that 1 to arrange ourselves · so that we respond in the most realistic fashion when times are hard. And that is the way they are right now and that is the reality of the s·_ituation 1and we have to deal with it. Let me just touch on another .matter, Mr. Speaker, and then we will close the place down for 66

March 12, 19.84 Tape No. 22 PRE~IER PECKFORD: now and come back tomorrow. Just one other point; the points are made very well in the speech as it relates to our social programmes. I think most Newfoundlanders and Labradorians 1when they look at SD - 3 the increases in the Education budget in four years ha ve just been phenomenal; in the Health budget , phenome nal; and in Social Services ,more than phenomenal. And,you know 1 it is really something~ The Minister of Social Services (Mr.

Hickey) comes under our attack from time to time- I hate to select one person,but he comes under a lot of attack- but I am going to tell you something, Mr. Speaker~ if you looked at the Social Services budget in Newfoundland and Labrador and you went right across this nation 1 there is no Minister of Social Services in Canada who has done a better job. Just imagine! With all the unemployment we have and the recession, our case load has hardly gone up at all for social assistance. Do you know what the Minister of Social Services did? He put them to work, Mr. Speaker, he put them to work. A good, good minister.

SOME HON. MEMBERS: Hear, hear! PREMIER PECRFORD: He knows more about social philosophy than all the rest of us over here put together, the han. the Minister of Social Services,and he does not get enough credit for the hard job that he has to do in his department. I·am going to give him credit right now, Mr. Speaker. SOME HON. MEMBERS: Hear , hear! ' PREMIER PECKE'ORD: Now, Mr. Speaker, just let me say one more thing outside tha social and cultural aspects that are in the speech 1whic~ are very, very important and which we will continue to advance in the budget_and so on. 67

March 12, 1984 Tape 23 EC - 1 PREMIER PECKFORD: Mr. Speaker, just let me say one more thing. It is a funny thing. Life is funny, and I guess ~olitics and public life is funny, and the way things are portrayed in the public mind,both in Newfoundland and in Canada. Just let me in about fi ve minutes say the following, Mr.

Speaker, to this Assembly: The Government of Newfoundland and the government that I lead took a position back about two or three years ago, and we have reiterated it ever since, from a constitutional point of view,that pure ownership over the resources on the Continental Shelf should be provided to Newfoundland in the same way as there is pure ownership in Alberta, Saskatchewan and Manitoba. That was the position we took, Mr. Speaker, because we thought that was fair and reason­ able. And if you look at Canadian history, it is fair and reasonable.

And even if it were not fair and reason­ able1a.nd you had no legal consistency to stand on or no intellectual ground to stand on, because we are so poor you would have to give it to us for that reason anyway. Now, we took that position, Mr. Speaker, and we held to that position. And time went by, and things happened between the Province and the federal goverpment, and a leader of the P.C. Party was elected in Ottawa who said, 'Yes, I think you have a darned good idea. I think you are right. I think we have to do that.

Because as Newfoundland goes, so does Canada go; we will not have to give you so much equalization and transfer payments. Fine.' And he wrote a letter, as Prime Minister of Canada, and confirmed that they were going to consider offshore mineral resources in the sarre way as if they were on land 1 68

March 12, 1984 Tape 23 EC - 2 PREMIER PECKFORD: or in the same way · as if it were fresh water, like Lake Erie, because there is no question that Ontario owns the gas in Lake Erie, because it is fresh water, even though it is an international waterway. Before that got finalized through the House of Commons and for constitutional entrenchment, he got kicked out. MR. WARREN: He deserved it. PREMIER PECKFORD: Well, I do not think he deserved it, but tactically they made some mistakes up there at the time. But they were only tactical, they were not substantive. But in any case, for whatever reason.

And the federal Liberal Government came in again under Mr. Trudeau. Now, ~1r. Speaker, when they got re-elected, the federal Liberal Government, they rejected that pure ownership idea that was already in writing from the previous Prime Minister, rejected it outright. What did we do then, Mr. Speaker? We said, 'Fine, okay.' Mr. Lalonde was Minister of Energy.

We said, 'We shall we will,'better said, 'relinquish for the sake of getting things going, our pure ownership claim for now, we will put it to one side,' and we put a compromise proposal on the table which said, 'Let us have joint ownership, sharing in management, to manage it, and sharing in revenues.' . We moved from our pure ownership position to a joint ownership position. We tried to negotiate with Mr. Lalonde and we had several meetings. What happened? They rejected that joint ownership approach. So our first position,which we he.d with Mr.

Clark,was pure ownership - nothing great ab0ut that, as other provinces already have it- to keep us really equal in Canada. That was rejected. 69

March 12, 1984 Tape 24 PK - 1 PREMIER PECKFORD: Then we went to a joint ownership approach,and that was rejected. Then it was around that time that the hon. Government House Leader (Mr. Marshall), the President of the Council,became minister responsible for Energy and then we went and sat down and tried to negotiate the following~ no pure ownership, no joint ownership, put ownership away forever and let us forget it legally-both agree to forget it forever and ever, eternity-and let us just do sharing management and sharing revenue.

But because you keep saying to us that national priorities must take precedence over provincial priorities-you keep telling us that-we are prepared to go so far that our management cannot,or our ideas on management, if there was a conflict on the management board, our ideas on management cannot be the final thing, yours will have to be until the country called Canada has complete self- sufficiency in oil and security of supply in oil, how that was defined. We just did not say share management and share revenues and leave it at that.

We said, 10ur say in management must always be subjected to federal priorities, national priorities. In other words 1 if we sit down at the table and there is one management board- half of them are provincial, half of them are federal-and there is a conflict 1 and that conflict on what we say interferes with the achievement of Canada's self-sufficiency in oil and Canada's security of supply in oil,you override us! You override us.

Wnatever it is that you wanted to do on that ~ board you can do 1 until Canadian self-sufficiency in oil is completely attained and until Canadian security of supply is completely attained. And,secondly, on revenue sharing,we will get the larger share on the front end of the development and you will get the larger share on the back end.' 'And how will we determine the way it goes from our larger share to your larger share? By a formula. And that formula says when Newfoundland-and we will have to 70

March 12, 1984 Tape 24 PK - 2 PREMIER PECKFORD: negotiate this out- Jets somewhere near the Canadian average on per capita earned income , somewhere near the Canadian average on taxation rates, then over 75 per cent of government revenues that are available goes down to 25 and your 25 goes up to 75.' Now, Mr. Speaker, what have we done? Here is the hon. gentleman and government that cannot move, that is completely inflexible. Here is a government that only wants to fight.

Here is a government that went from a position of pure ownership that was rejected - we had it from one Prime Minister-to joint ownership,which was rejected DY that same government,to no ownership and a reasonable deal on management and revenue, and that reasonable deal on management meant that Canadian priorities came first for many, many years until we kicked in at all, and in that revenue sharing the federal goverl~ent would enjoy 75 per cent of the revenues just the same as we would enjoy 75 per. cent of the revenues. Now, Mr. Speaker, I submit to you that when the Leader of the Opposition (Mr.

Neary), or members opposite,or members in the Newfoundland community at large comment upon our ability to negotiate and our ability to do the deal on the offshore 1that when all the facts are put on the table,as I have just put them simply, that that is a reasonable Canadian way to deal with the offshore mineral resources so that Newfoundland will have some opportunity aver the next twenty or thirty years to improve its position within the Canadian Confederation 1 and that is Canadian right· SOME HON. MEMBERS : Hear, hear! PREMIER PECKFORD: Let me just say one more 71

March 12, 1984 Tape 25 EC - 1 PREMIER PECKFORD : thing, Mr. Speaker, and along those lines, we are prepared to negotiate tomorrow. We negotiated this last position back last January. People are saying today that somehow we are still talking about. pure ownership.

That is our consi tutional position and we deserve it fairly 111ithin the Canadian Confederation, but if that is unattainable at the present moment - and it has been, and it is now because of the court adjudications - we are prepared, as we were last January, to sign a deal with no pure ownershio, no joint ownership, just a manage­ ment regime that in its content will reflect the fact that there are Canadian priorities first, provincial priorities second and a revenue which shows provincial priorities first and federal government priorities second on revenue, a switch from 75/25 for us to the other way around.

Now, Mr. Speaker, I do not think that that position is well-known. I do not think it is well-known across the House at all ,and I do not think it is well-known within the Newfoundland popu­ lation at large. SOME HON. MEMBERS: Oh, oh! PREMIER PECKFORD: But, Mr. Speaker, in the next month or two we will make sure that every Newfoundlander and Canadian understands that '.vhat we have proposed is reasonable, sensible, rational and the only way and the only position for the Government of Newfoundland and the people of Newfoundland to take.

We are not selfish, we are not greedy, we are very, very reasonable and we have moved substantially when the federal government ha.s not moved one iota. And what a vindication, Mr. Speaker, what a vindication! Here is a Nova Scotia/federal govern­ ment agreement which we analysed at the time. When we put our document out, it got lost. I mean, the silence was deafening. Not one person in the Newfoundlandco~unity 72

March 12, 1984 Tape 25 EC - 2 PREMIER PECKFORD: commented upon that document that we put out analysing the federal goverlli~ent/ Neva Scotia agreement and saying hm.; poor it was really, no say in management at any time, just advisory, and revenues that would not be sufficient to make any dif­ ference at all. And that document that we put out tha~ we worked so hard on, the Petroleum Directorate worked hard on, and the Minister of Finance (Dr. Collins), it just got lost and nobody wanted to talk about it.

Nobody wanted to talk about the truth and the facts until the federal government and the Nova Scotia Government got together and did a little study to see what impact this agreement would have on Nova Scotia. And guess what, Mr. Speaker? They came up with the con­ clusion that financially Nova Scotia would not be any better off. Now, Mr. Speaker, what a vindication by the two governments who signed the deal! Just finally, Mr.

Speaker, one of the things that has always been missing outside of our reasonableness at the table on this matter, the other thing that has been missing is that people somehow forget, and I do not know why, the enormity of what we are talking about, 700,000 square miles; the Island of Newfoundland is 42,000 square miles, Labrador is 112,000 square miles, we are talking about a land mass which is five times bigger than Newfoundland and Labrador put together, and on that land mass we are talking about negotiating an ogreement which covers all the unknowns. How many Hibernias? One? Ten? How many gas fields?

That is a fantastic piece of property that we are talking about for the future, so that any agreement must reflect the enoiiDity and the unknown factors contained therein. How -foolhardy we would be twenty or 73

March 12, 1984 Tape 25 EC - 3 PREMIER PECKFORD: thirty years from now 1_ The Upper Churchill would only be a joke. Mr. Speaker, the Upper Churchill would only be a joke compared to it, if the prospectiveness of that territory is confirmed, as everybody says it is there, and it is there in that size. And then, its effect upon the fishery. It is ~:Jsolutely incredible, it would blow your mino, the enormity of it and what it could mean,negatively or positively, for the Province. And there are so many unknowns.

Hibernia: What is the area of Hibernia - I do not know what the size of the area would be-or the Joan of Arc Basin? A couple of thousand square miles perhaps? Even, let us say,lO,OOO square miles. That is a nice piece of territory; the Avalon Peninsula is perhaps that, I suppose. Say that is the Hibernia area and the Joan of Arc Basin. You have another 690,000 square miles to go. And we have already gas discoveries up off Labrador t~at,if they were on land, they would be some of the largest gas fields in the world ever discovered. That is a fantastic insurance policy.

And that is what we are talking about negotiating. Now, Mr. Speaker, it is not too bad, to move from pure ownership, joint ownership, no I ownership, 'You have the first priority on management, give us a little bit more revenues on the front end.' That is not a bad ne?otiating position from a government that does not know how to negotiate and is inflexible and only wants to fight, Mr. Speaker. I lay my cards on that one, Mr. Speaker. I lay my cards on that one to the Leader of the Opposition (Mr. Neary) or anybody else in Newfoundland! That is a reasonable, fair position. SOME HON. MEMBERS : Hear, hear!

PREMIER PECKFORD: Anyway, Mr. Speaker, we shall have more opportunities in the days and weeks ahead to 74

... "lz:rch lJ, 1984 Taoe 25 EC- 4 PREMIER PECKFORD: debate those issues. I \vant again to thank the people who were able to get here today to be a part of the opening of this session of the Eouse and ~"e look forward to heca.!thy and lively debate over the next fe'" weeks and months and for the Minister of Finance's (Dr . Collins) budget coming down very soon . One of the things , Mr . Speaker, that is a little bit disappointing is I hope that those who can get to the Legislature when it is open now until the latter part of May, I suppose, 75

March 12, 1984 Tape 26 PK - 1 PREMIER PECKFORD: or June, that as many people ~orne back to the galleries as is possible. Many days we are here , whent here is hardly anybody here,debating some interesting points. What was it? Eighty­ five bills passed in the House in five or six weeks in the Fall? The Leader of the Opposition (Mr. Neary) mentioned about lateness of the House opening.

I had my Parliamentary Assistant and some people in my office do a study just a couple of months ago about 'Is our Legislature not open as much as everybody else's Legislature in Canada?' And do you know what we found oue Exceptfor Ontario and the House Commons we are open the most. SOME HON. MEMBERS: Hear, hear! PREMIER PECKFORD: This is the government that hides away from the people. We are open the most. One of the smallest provinces in Canada and we are open almost more than any other Legislature in Canada. You know,that is not a bad thing. I am going to start bragging one of these days, Mr. Speaker.

SOME HON. MEMBERS: PREMIER PECKFORD: adjourn. MR. SPEAKER (Russell) : Hear, hear! Anyway, Mr. Speaker, it is time to It is moved and seconded that a Select Committee be appointed to draft an Address to the Gracious Speech from The Throne. Those in favour "Aye", those against "Nay". SOME HON. MEMBERS: Aye. MR. SPEAKER: The motion is carried. The Committee shall consist of the hon. member for Grand Bank (Mr. Matthews), the han. member for Windsor-Buchans (Mr. McLennan), and the han. member for Torngat Mountains (Mr. Warren). 76

March 12, 1984 Tape 26 PK - 2 NOTICES OF MOTION MR. SPEAKER (RUSSELL) : The hon. member for Fogo. MR. TULK: Mr. Speaker, I give notice that I will on tomorrow ask leave to introduce the following resolution:

WHEREAS inshore fishermen have had a decrease in their real incomes over the last five years; AND

WHEREAS the costs associated withthe harvesting sector of the inshore fishery have risen substantially, thereby placing these fishermen in a bankrupt position; AND

WHEREAS the present government has been using the fishing industry as an employer of last resort; AND

WHEREAS the highly publicized restructuring agreement has not lived up to the expectations created by the government's public relations campaign; AND

WHEREAS fishermen, fish plant workers and trawlermen have been frustrated in their efforts to secure a new collective agreement; AND

WHEREAS the present government's lack of fishery development policy is threatening to destroy the economic, social and cultural fabric of Newfoundland and Labrador society; THEREFORE,

BE IT RESOLVED that this Honourable House direct the present government to put forward a sound development strategy for the Newfoundland and Labrador fishe:r:y which will protect the interests of inshore fishermen, plant workers, trawlermen ·and the independent processors as well as the major companies involved in the recent restructuring agreement; AND BE IT FURTHER RESOLVED that the House direct the government to immediately resolve the unsatisfactory labour relations presently existing in the fishing industry as outlined by the "Unity 84" Campaign. 77

March 12, 1984 Tape 26 PK - 3 MR. SPEAKER (Russell) : The hon. member for St. Mar y 's-The Capes. MR. HEARN: Mr. Speaker, I hereby give notice that I will on tomorrow ask leave to introduce the following resolution:

WHEREAS the Supreme Court of Canad_ has ruled that the ownership and control of the mineral resources on our Continental Shelf belongs to the Government of Canada; and

WHEREAS Newfoundland's high unemployment rate, a high rate of taxation and a comparatively low level of services are a direct result of the lack of control which the Province exercises over its resources, a situation not unlike that experienced by the Prairie Provinces during the early part of this century; and WHREEAS all Newfoundlands want to achieve a measure of prosperity that is based not on Federal transfer payments, but on the development of our own natural resources; and

WHEREAS the Government of Canafa in 1930 consented to and obtained an amendment to the Constitution of Canada providing the Prairie Provinces with the rights to their resources which had the effect of ensuring for each province, not only economic stability but also substantial growth and prosperity; and

WHEREAS the Government of Newfoundland has tried, without success, to negotiate an offshore agreement with the Government of Canada, even though this Province was prepared to accept ·much less than that given to ~, Saskatchewan and Manitoba in 1930 and despite the fact that Newfoundland was even :~repared to allow the Federal Government the right of par~untcy over all aspects of the development .of the resource, so that it could guarantee national security and self-sufficiency of oil and gas; and

WHEREAS an agreement with the Government of Canada governing the management and development of our offshore resources must be based on fairness and equity and accommodate our goals relating to employment, industrial development, the establishment of safeguards against the negative effects of oil and gas development as well as our rights to receive a fair share of related revenues; 78

March 12, 1984 Tape No. 27 MJ - 1 HR. HEARN: THEREFORE

BE IT RESOLVED tha~ this Honourable House supports the position of the Government of Nevlfoundland and Labrador that an agreement 1.-1i th the Government of Canada on the management and development of our offshore oil and gas resources must reflect the princioles contained in the Province's last proposal of January, 1983 which would have seen a sharing of management powers bet~.;een the Province and the Federal Government with national priorities corning before provincial priorities and a reveunue sharing formula which would have given Newfoundland the larger share in the first instance and the Federal Government the larger share after economic conditions improved in the Province.

SOME HON. HEMBERS : MR .' BARRY: HR. SPEAKER (Russell)': Scio. HR. BARRY: Hear, hear! Hr. Speaker. The hon. the member for Mount Hr. Speaker, I give notice that I will on tomorrow ask leave to introduce the following resolution:

WHEREAS the Supreme Court of Canada has recently decided in favour or the Federal Government concerning ownership and jurisdiction of offshore resources; an