Volume 3 P"OVtNCE .OF NEWFOUNDLAND THI RTY~s1x:r:1-1 GENERAl. AS$EMBL V OF N.EWFOUNOLANO 3rd. Session v·ERBATIM REPORT THURSDAY, MARCH 21, 1974 SPEAKER: THE HONOURABLE JAMES M. RUSSELL ,. Number 28 ,.

March 21, 1974 The House met at 3:00 P.M. Mr. Speaker in the Chair. MR. SPEAKER: Order please! Tape no. 702 Page 1 - MW I would like to welcome all our guests to the galleries today. I notice that we have some of our Members of Parliament present; Mr. Lundrigan, Mr. Walter Carter. We also have in the Speaker's Gallery a Mr. Bolton who is the British Trade Commissioner for the Atlantic Provinces. We have the Mayor of Happy Valley, Goose Bay, Mayor Kelland and Deputy Mayor, Lloyd Dalton. I would like to welcome these people especially and each and every one of you to the galleries today. HON. FRANK D.

MOORES (Premier): Mr. Speaker, every person in Newfoundland, indeed most people in North America, are familiar with the history of the great Upper Churchill development. It is a truly great project in terms of engineering, a truly great project in terms of financing and in terms of Canadian resource development• But the benefits to this province, apart from the short-term construction employment, have been and will be unfortunately mini.mu.

Sadly perhaps, in terms of the long-term effect on our province, was the ill-advised decision of passing the development control of all the waters of Labrador to the developers of Churchill Falls. I shall elaborate on the significance of this, Mr. Speaker, a little later in the statement. When my government set forth to develop the Lower Churchill hydro potential, we were determined that this great tool for industrial development must be harnessed for the greatest possible benefit for this province and for its people.

My statement today outlines the most important resource development decision ever made by a Newfoundland Government. I have 2200

March 21, 1974 Tape no, 702 Page 2 deliberately limited all comment on this matter until it was practical for me to make a detailed statement in this honourable House, as it is fitting that the Members of the House of Assembly and the people of Newfoundland be the first to receive a complete and an ac~urate presentation on my government's decision to acquire BRINCO Limited, The Government's decision to acquire BRINCO was not made on the spur of the moment, Sir.

It was a well planned, thoroughly researched move which will prove . to be of incalculable benefit for future generations of Newfoundlanders, Permit me, therefore, to place our decision in its proper context. This Administration intends to establish a comprehensively planned approach to the development of the Province and each of its major economic and social sectors; and to ensure that all resources of the Province are developed at a pace, and to the highest possible level of efficiency, consistent with the long run interests of our people.

For unless we have control of our resources and their development we cannot control our destiny as a people, The resources of Newfoundland are the property of the people. It follows that control over these resources must rest with the people's Government. While it is the responsibility and determined commitment of the Government to promote the fulfillment of our development potential through private enterprise the guidelines governing this development must clearly be established by Government and Government must establish the returns which are to accrue to our people.

Energy policy has received considerable public attention during recent months. It has received priority attention in the Government's long-term resource development planning 220i

March 21, 1974 Tape No. 703 NM - 1 for the past two years. In May of 1973 the Report of the Study Group on Energy was presented to the Government. In was a concise but comprehensive analysis of the energy situation in Newfoundland and Labrador,both in terms of existing and future energy sources and in terms of alternatives for the structure of the power industry in the future. The report confirmed the Government's belief in the importance of reasonable priced reliable electrict energy to our Province's future economic development.

It also recommended that the Province undertake a confidential assessment of the financial, economic and social implications of the power industry in the Province. No nation or region can attain a high level of economic development without an intensive and intelligent use of energy. Studies of the energy consumptions and economic indicators of the world's nations substantiate this correlation. Of course, many other factors affect economic development, but high use of energy is an essential ingredient.

A nation or region with its own resources of primary energy has a distinct advantage, especially in light of current world energy conditions. Canada ranks second among the world's nations in both energy cons1.111ption per capita and gross national product per capita. Canada has achieved these ranks because it is one of the few industrial countries which is self-sufficient in terms of energy supply. Retaining "security of energy supply" and fostering further economic development are major national goals of our country. Energy is as essential to regional economic development as it is to the nation.

In order to move ahead on economic fronts, Newfoundland must have an increasing sU'!)ply of energy. Considering the importance of hydro power to Newfoundland's energy supply, the undevelopment hydro potential in the Province, particularly in Labrador, can provide the basis for economic development. Any thought of energy development in Labrador must focus around BRINCO Limited. The British Newfoundland Corporation Limited (BRINCO) 2202

March 24, 1974 Tape No. 703 NM - 2 was formed in 1953 and was owned by seven United Kingdom banking and industrial firms. It is currently 45.5 per cent owned by the large multi-national Rio-Tinto Zinc Corporation Limited of England. 3.8 per cent by Bethlehem Steel of the United States and 4.1 per cent by Marubeni of Japan. This foreign owned corporation (BRINCO) and its subsidiaries were originally granted exclusive mineral rights to more than 50,000 square miles in both Newfoundland and Labrador as well as rights to develop water systems in both areas.

BRINCO's water rights on the Island were surrendered at the time of the Baie D'Espoir development, but it continues to hold its rights in Labrador. In 1961, a BRINCO subsidiary, Churchill Falls (Labrador) Corporation was granted a ninety-nine year lease renewable for a further ninety-nine years, authorizing development of the Upper Churchill River watershed, However, BRINCO retains first call to develop any water power in Labrador not previously granted to others.

This option is exercisable until 1983, but actual development is subject to the Province and BRINCO arriving at an agreement on a lon~ term lease basis. At the recent First Ministers Conference in Ottawa and in a subsequent public address here in St. John's, I outlined the disadvantages to Newfoundland of the financial agreement negotiated between Churchill Falls (Labrador) Corporation (CFLCO) and Hydro- Quebec for the energy which is being generated from the Upper Churchill Falls site.

It has been estimated that the economic cost to the people of Newfoundland, taking into account recent excesses in energy costs and also the fact that the agreement has no provision for escalation, is in excess of tens of millions of dollars annually. The development of the Lower Churchill resource must proceed but, Mr. Speaker, under much more favourable terins to the province. In September, 1972,BRINCO formally approached the Government with a firm proposal for development. 220,J

March 21, 1974 Tape 704 P.K - 1 During the past one and one-half years Government has held numerous discussions with BRINCO and with CFLCO concerning this proposal for development of the hydro potential at Gull Island. The original BRINCO proposal outlined the technical aspects of the project and the work which had already been undertaken concern­ ing feasibility studies, engineering design arid the length of time necessary for construction. Basically, the concept was to tie the Gull Island development into that of the Upper Churchill and to sell the output to Hydro-Quebec on a long term contract.

The Corporation stated that they were prepared to commence in the spring of 1973 if the Government would grant concessions similar to those given for the Upper Churchill project some years previously. The main financial concessions granted for the Upper Churchill were as follows:

(1) A retail sales tax exemption; A gasoline tax exemption; A rebate of over fifty per cent of all corporate taxes paid and low royalty rates. The Government was determined that for any subsequent developments on the Churchill River the main beneficiaries must be the residents of this province. It, therefore, informed BRINCO of the minimum terms and conditions under which permission would be granted to proceed with the Gull Island project. For example, there were to be no exemptions from the retail sales tax or the gasoline tu.

In addition, there was to be no rebate of any corporation income tax and there would have to be a transmission line constructed from Gull Island to the Happy ~alley­ Goose Bay area. With regard to the royalties,the Province stated that these could best be taken care of by the Province receiving one-third of the equity in the project. Following the presentation of the provincial Budget on March 30, 1973, the Govermnent was informed that the conditions were too onerous and that the Corporation would not likely proceed wi~h the project unless the conditions were considerably modified.

Since that time discussions have continued between BRINCO and the Government which have not resulted in any agreement. 2204 ~ .. , ..

March 21, 1974 Tape 704 PK- 2 It was in May of 1973 th at Government rece i ved from the Planning Task Force the recommendation that it seriously consider regaining control over our Labrador energy sources. A major factor in considering this recommendation was that electricial energy requirements on the Island have been growing at the rate of twelve per cent per annum over recent years and forecasts indicate that the distribution utilities and existing industrial customers on the Island will need substantial additional amounts of energy .

Furthermore, the excellent prospects of new industries locating in Newfoundland will add to those requi~ements. It is evident from the projected load growth that even without new industrial development additional generating capacity will be required for peaking purposes in 1975 and to meet the base load requirements of existing customers by 1979. Hence it was urgent to make a decision regarding the next generating source as soon as possible. In Auguest, 1973 the Newfoundland and Labrador Power Commission authorized Teshmont Consulting Limited and H.

Zinder and Associates Incorporated to conduct a joint study of the technical and economic feas i bility of developing the hydro-electric power recources of the Gull Island site on the Lower Churchill River in Labrador and of delivering the power to centres on the Island of Newfoundland as well as locations in Labrador. I called a press conference and made a public announcement that such a study was being commissioned. It was still the hope of the Government that agreeinent could be negotiated with BRINCO for delivery of electrial energy to the Island.

However, Government also recognizes that occasions can arise when the interests of a people and the interests of a private corporation can diverge. Such a situation eKists with respect to BRINC01 s rights to development of hydro resources in Labrador . If, for instance, by selling energy West (to Quebec) BRINCO could earn more than by s.elling to customers in Labrador and on the Island, BRINCO would wish to sell outside of the Province.

Similarly, the future development of other hydro resource sites in Labrador may not provide a sufficient return on investment to be immediately attractive to private enterprise. 220j

March 21, 1974 Tape 704 PK - 3 However, these opportmiitiee may respresent a legitimate venture for the Government of Newfoundland and Labrador in the National and Provincial interests. 2206

March 21, 19741 T11pe 705 RH - 1 Mindful of C.overnment's responsibility in this matter and concerned that negotiations might not succeed,we requested our fiscal agents, Burns Brothers and Denton Limited of Toronto, to undertake an intensive review and consideration of the financial feasibility of provincial ownership. Both the Teshmont-Zinder technical study and the Burns Brothers financial study proceeded simultaneously. The findings of the Teshmont-Zinder Study were presented to Government in February, 1974.

This study confirmed conclusively the technical and economic feasibility of developin~ the Gull Island site and of transmitting the energy to the Island of Newfoundland. Moreover, it is clear that this development is the most economic means of providing the electrical energy necessary to meet the future needs of the Province as it is less expensive per kilowatt-hour than any other electrical energy source which will be available to us. A third study,by Shawmont Newfoundland Limited,was also presented in February, 1974.

This study analyzed the alternative methods of meetinR Newfoundland's future ener~y needs and arrived at the conclusion that the hydro electricity at the Gull Island site would provide the lowest cost of energy when compared with the alternatives of fossil fuel thermal generation, coal fired thermal generation or by the installation of nuclear ~enerating units. From an economic viewppint, the development of the Gull Island Project will utilize a renewable resource at a .reasonable cost. The costs of electric power generated from this resource will also remain relatively stable.

Only a very minor component for operation and main­ tenance is subject to escalation. In addition, the availability and essentially stable cost of a large block of power will be a stimulus to new industry. The stability of the Government in Canada and its provinces is also a major advantage in attracting industrial development when contrasted with other parts of the world where competitive hydro energy might be avail­ able. The Island is fortunately located in respect to having ice-free, 2207

..:. March 21, 1974 . Tape 705 RH - 2 deep-water ports at reasonable distances from the major markets of the world borderinr, on the Atlantic Ocean. The Teshmont-Zinder Study points out that the only proven energy resource within the boundaries of the Province is the hydro-electric potential of its rivers. The Gull Island Proi ect will deliver eleven billion kilowatt-hours of energy annually to the Island and Labrador which is equivalent to approximately eighteen million barrels of fuel oil.

Forecasts indicate that the full output of the Gull Island ,1ant could be absorbed on the Island sometime in the period between 1985 and 1988. The develop­ ment of the Proiect would provide benefits for all existing costomers of the Power Commission and will make hydro power available to the residents of Goose Ray and Happy Valley as well as facilitating industrial develop­ ment in Eastern Labrador. The thermal plant and the high voltage transmission network operated by the Newfoundland and Labrador Power Commission will form the nucleus for the distribution of Gull energy.

The experience and capability of the Commission will assure the efficient integration of the Gull Island Project and will provide competent management of the combined system. If approval is granted to commence the Project immediately, it can be in commercial operation in January 1979. Provided that the proposed overall

schedule is maintained,it is estimated that the total cost of construction will range from approximately $1.0 billion to $1.1 billion. The manpower requirements during construction will amount to 100,000 man months of work, An examination has been made of the technical feasibility of delivering power to the Island of Newfoundland by means of a high voltage transmission system.

The design and construction of the generating plant and the components of the transmission system, namely the HVDC con­ verter stations, the transmission lines and the cable crossing of the Strait of Belle Isle are within the capabilities of today's technology. The generation and overall tranS111ission system will provide a hgih level of reliability . . 2208

March 21, 1974. Tape 705 RH - 3 A special consideration in the design of the transmission scheme has been the cable crossing of the Strait of Belle Isle. Two alternative installations have been examined, namely, the direct laying of submarine cables and the construction of a cable tunnel. 2209

March 21, 1974, Tape 706, Page 1 -- apb Designs have been evolved for both, either of which would be technically feasible and acceptable. The submarine cable offers savings in capital costs and is therefore reco111111ended by the study. It is considered that the Gull Island project will have the least environmental impact of any of the alternative methods of generation. Although there may be flooding in the downstream

section of the reservior, the general extent of the !looding would be in fact quite minimal,compared with other major hydro developments, since the Churchill Fal:s plant provides the water storage. Further­ more, the presence of the transmission lines on the island would have significantly less ecological impact than alternative thermal or nuclear plants. If Gull Island power is to be brought to the island by January 1, 1979, an immediate programme of field investigations and engineering work must be undertaken during the spring and summer of 1974.

I must point out again and make clear that it has been definitely established that technology presently exists to develop the hydro potential of the Lower Churchill at Gull Island . and for the high voltage DC transmission of reliable power to the Island of Newfoundland, Furthermore, the Teshmont Zinder Report confirms that there is no question that projected costs can be fully recovered from anticipated revenue that is based on competitive rates that will attract new industry.

As a Goverrucent we are determine, to see that this energy source is developed and that it is delivered to both the Island and Labrador regions of the Province to encourage industrial development and to provide a secure and reliable supply of energy at a stable price to all customers - domestic, commercial and industrial. The Teshmont Zinder Report makes clear that a large saving in the capital cost of the project is possible if the whole project is built to the optimum technical schedule. Doing this, however, will result in energy being available which is surplus to the immediate needs of the Province.

If this energy can be sold on a short term basis, the 2210

March 21, 1974, Tape 706, Page 2 -- apb overall economics of the project will be greatly enhanced and the price of energy to consumers in Newfoundland will be less than it will have to be otherwise. My recent discussions with the Premier of Quebec have been directed to the disposal of such surplus energy. We recognize that with Quebec's plans to develop the hydro potential at Bay James, it will probably not have a long term need for our surplus energy. However, this energy can also be used to provide for the needs of other provinces which have less hydro potential than ourselves or Quebec.

The construction of an intertie between the Gull Island plant and the Upper Churchill plant is reco111111ended in the . study to assure the most economic use of the available power of both projects, to optimize water management, to facilitate the marketing of surplus energy and to provide a strong link to the existing Quebec Hydro network and a future Canadian grid system. It is important for the Government to be in a position to deal directly, ,: Mr. Speaker, with other provinces.

I made this point clearly to the Prime Minister arid other Provincial Premiers during both public and private discussions at the recent First Ministers ' Energy Conference in Ottawa. I have sought ~lso and continue to seek the support of the Federal Government for the construction of a national power grid. I need hardly note in passing that the building of the Trans-Labrador Hgihway is now more likely due to our decision to proceed with the development of the Lower Churchill power installation.

Acquisition of control of our hydro resources in Labrador is most appropriately achieved by purchasing all of the shares in BRINCO. The final decision of Cabinet was made in early March. It was a decision to expand .to Labrador the already existing policy of Government to publicly control the future generation of hydro resources on the Island. The decision is by no means a precedent in Canada, Mr. Speaker. The most recent examples of such policy action come from Nova Scotia and, prior to that, Quebec. All provinces, with the 2211

March 21, 1974, Tape 706, Page 3 - apb e.xc.eption of Alberta, control their power industry. Alberta ' s power industry is based on oil and gas - not hydro, and that ~rovince has recently taken steps to control the oil and gas industry there. I wish to make quite clear , unequivoca bly and without reservation, that this action should in no way be interpreted as being indicative of any nationalization policy on the part of my Government.

Indeed, we are of the firm opinion that Government ownership of BRINCO is a n.ecessary and fundamental step towards ensuring that this Province will continue to be able to attract private enterprise in t:ie future through electricity availabfllty. On Monday, March . 11th, 1974,I visited the Chairman of RIO TINTO-ZINC Corp.oration, Sir Val Duncan, in London, England, to discuss the offer which the Government wished to make to all share­ holders for the purchase of outstanding shares of BRINCO Ltd. In the opinion of the (',overnment it would not have been in the public interest to permit trading 2212 ,.

March 21, 1974 Tape 707 IB-1 to take place on the stock exchange in shares of BRINCO once news of our takeover bid became public. In the normal businesslike fashion Government therefore requested that the Canadian Securities Commission issue cease trading orders fn the shares of BRINCO and that the Toronto and Montreal Stock Exchanges suspend trading immediately. For this reason, no public trading of shares has occurred since Friday, March 8.

I made a formal offer to Sir Val Duncan at our meeting in London, held on March 11, 1974,to purchase all the shares of BRINCO Limited beneficially owned or controlled by the RIO TINTO-Zinc Corporation Limited at a cash price of $6.75 per share. At the same time, I informed Sir Val Duncan that it was the intention of the Province· to proceed immediately with a public tender offer to all the shareholders of BRINCO (other than those who are citizens of or residents in the United States of America or its territories or possessions) to acquire all their shares of BRINCO at a cash price of $6.75 per share.

The facts of this particular situation, where one company - RIO TINTO-Zinc - and its associates own approximately 46 per cent of the outstanding shares of BRINCO,, obviously dictate that an agreement be reached with the controlling shareholders before a public offer is proceeded with, especially in the situation where it is the Province's wish to acquire all the outstanding shares of BRINCO. While I was meeting with RIO TINTO in London, the Honourable John C. ,Crosbie, Minister of Finance, was meeting in Montreal with the senior management officials of BRINCO Ltd., in order to explain the offer.

In addition, the Government wished to express its desire that the technical and managerial expertise represented by the personnel of BRINCO Ltd. stay on to meet the challenge presented by the Lower Churchill development. While my Colleagues and I recognize the outstanding service rendered by BRINCO to the Province during the last twenty years, Government has determined,as a matter of principle, that the hydro electric generation facilities and related water rights in Labrador should be owned and 2213

March 21, 1974 Tape 707 IB-2 controlled by the people of the Province. In implementing this policy, the Government agrees that all the shareholders of BRINCO are entitled to the fairest possible consideration by the Province and this we endeavoured to do in arriving at the suggested cash price of $6.75 per share for the shares of BRINCO. Following my meecings in London on Monday and at the request of Sir Val Duncan, I travelled to Montreal to discuss the specifics of the offer with him and the directors and senior executives of BRINCO.

I and my advisers have ~een available .at all times for the past ten days to meet and discuss the Province's offer , and several variations thereof, with Sir Val Duncan and the directors of BRINCO. In addition, in order to make ourselves fully available to discuss this matter and to accommodate the Board and senior executives of BRINCO, it was necessary for me to request that this Legislative Assembly adjourn its deliberations for a period of five sitting days.

During our discussions in Montreal the alternative of acquiring only 57 per cent interest of BRINCO in the shares of Churchill Falls Limited as well as the water rights presently held by BRINCO was explored. While it is the primary interest of the Province to obtain ownership and control of the hydro electric facilities and water rights, this alternative did not appear to be acceptable.

One of the primary reasons for this was that the 22,000 public shareholders of BRINCO, the majority of whom in terms of number are Canadian, would not have been afforded an opportunity to sell their shares of BRINCO to the Province at a time when the whole character of BRINCO was being drastically changed. In addition, in the Government's opinion the proposal was unacceptable for other reasons, including the unrealistically high price which was suggested by Sir Val Duncan, and including the difficulty of dividing the management team.

We believe that it is in the best interests of all concerned that BRINCO be maintained as a viable economic entity, that its organization and staff be preserved and that the bondholders of 2214

March 21, 1974 Tape 707 I B-3 CFI.CO be assured that they are being fully protected . On Friday evening, March 15, RIO TINTO-Zinc Corporation, BRINCO Limi ted 3nd the Provin ce appea red to be prog r essing along the line of a ten tative agreement. This agree111ent would have invol ved the purchase of all of the shares of BRINCO by the Province. The Provin ce would reorg anize all mineral asset s of BRINCO, 2215 '

March 21, 1974 Tape no. 708 Pagel - MW including the uraniun enrichment project and the ISKUT Pulpower into a new company under the name BRINEX Limited. The Province would distribute $5.25 cash plus one share in BRINEX to all current shareholders of BRINOO. The Province would retain the CPI.CO operations, all of the Labrador water rights and other non-mineral assets. The question of management and taxation matters were mutually worked out t he following day. Meetings were held on Saturday to finalize the details of Friday's tentative agreement.

Serious problems and differences immediately surfaced and a further Saturday meeting between myself, the Honourable John C. Crosbie and Sir Val Duncan and Mr. William Mulholland ailed to resolve these difficulties. After giving serious consideration over the weekend to all the factors involved and after consultation with a number of my colleagues in the cabinet and with my fiscal aqvisers, the Province advised BRINCO that it did not consider it practical to continue the discussion of an arrangement along the lines of the tentative proposal discussed.

However, my colleagues and I felt that in view of the fact that the discussions of Friday evening arrived at a value for the shares of BRINCO which was acceptable to BRINCO and to the Province, that it would be unfair for the Province not to increase the offer for the shares of BRINCO from $6.75 per share to $7.07 per share. On Monday, March 18, 1974,we informed BRINCO and RIO-TINTO-Zinc of our offer of $7.07 per share and set a deadline of Midnight, Wednesday, i March 20, 1974,for their response.

I might add that we also informed BRINCO that when the Province acquired ownership of the shares of BRINCO it would recommend that the new directors of BRINCO agree to grant a right of first refusal to RIO TINTO, or its no~nee, to purchase the I mineral assets that the Board of Directors of BRINCO desired to sell. At 9:10 P,M. last evening I received a telex message from BRINCO advising that their Board of Directors were unable to 2216

March 21, 1974 Tape no. 708 Page to recommend our offer to their shareholders. The Board indicated, however, that they were prepared to recommend to their shareholders an offer by us to buy BRINCO shares in Churchill Falls (Labrador) Corporation Limited and all their other water rights in Labrador. 2 The Government was disappointed in the proposal, particularly in light of the price suggested by the BRINCO Board of Directors.

After ten days of sincere and honest negotiations,it was clear that the offering price for the shares of CFLCO and the water rights, as first enunciated by Sir Val Duncan, remained unrealistica~ly high. Accordingly, at 9:55 P.M, last evening,I sent the following telex to Mr. R. D. Mulholland, Chairman of BRINCO, Mr. W,D. Mulholland, President of BRINCO, and Sir Val Duncan, Chairman of the Executive Committee and Chairman of Rio-Tinto-Zinc Corporation Limited: "Thank you for your telex received at 9:10 P.M. March 20, 1974. Your offer is unacceptable to the Province.

I propose to announce to the House of Assembly and the people of Newfoundland tomorrow the full details of our negotiations. At that time legislation will be introduced to vest the shares of BRINCO in t~e Province at the price of $7,07 (Seven Dollars and Seven Cents) per share," We are proud that the reaction of the financial and industrial community has been excellent regarding the method, style and approach which we have used in attempting to reach a negotiated settlement. It is with much reluctance that Government take the step to vest the shares of BRINCO Limited through legislation.

It is the desire and hope of the Government of Newfoundland and Labrador that the present personnel of the BRINCO Organization will continue in their present responsibilities. The management team has proven to Canada and the ~orld its ability to create and operate an innovative and progressive organization, It is Government's intention to maintain the company as an autonomous operation with a board of directors and independent operating personnel. In fact, the only major changes would be in the owners of the shares themselves, 2217

March 21~ 1974 Tape no. 708 Page 3 The purchase price of $7.07 per share for the shares of RIO-TINTO-Zinc Corporation, other major shareholders and the public will cost the Province of Newfoundland approximately $180,000,000. The financing of this purchase was completed before we approached the major shareholder. 2218

March 21, 1974 Tape 709 IB-1 It is significant and attests to the confidence which has been attached to this activity that one Canadian financial institution, the Bank of Nova Scotia, has agreed to provide all of the necessary financing. As Premier of a Canadian Province I am proud of the speed and efficiency with which the top management of the Bank of Nova Scotia assessed our proposal and made its decision. The purchase of BRINCO Limited will not double nor triple the debt of this Province as has been erroneously reported and quoted.

The Province will finance the actual purchase price of $180,000,000 through the Newfoundland Industrial Development Corporation, a Crown Corporation, and the cash flow from the extra dividends and the other savings to the Province will be sufficient to completely liquidate the purchase price. In addition, it is the Government's stated intention to sell or otherwise divest some of the other assets which BRINCO holds, thereby reducing significantly the total purchase price for all of the shares. Mr.

Speaker, I must reiterate that we have made a fair and reasonable offer to all shareholders of BRINCO at a premium of $1.82 or thirty- five per cent above the closing price of $5.25 on March 8, the last trading day for the stock. The acquisition of BRINCO is a major step in the future development of our Province and its people and one which every Newfoundlander should be proud of. Newfoundland offers many of 'the ingredients necessary for the "quality of life". Mr. Speaker, an abundant, long-term source of electric power is essential if we are to ensure a viable future for our people. Mr.

Speaker, I will in a moment, at the appropriate time, be giving notice of the legislation pertaining to this statement. PETITIONS: MR. SIMMONS: Mr. Speaker, I beg leave to present a petition on behalf of sixty-two persons at McCallum in my district. Perhaps it is best, Mr. Speaker, I read the essence of what is here. ''We, the undersigned parents of the school pupils here at Mccallum, , 2219

March 21, 1974 Tape 709 IB-2 are glad to know that some action is being taken by the integrated school board and plans for a new school have been drawn up and sent to the school here at McCallum. The board have said.that the need for·a new school here at Mccallum is great. We feel that the need is not only great but urgent. "We have here at Mccallum an old grade school with the present enrollment of seventy students. By September, 1q74,there will be eighty-five to attend school. We have four teachers and a special education teacher working in a cubbyhole classroom,'five feet wide by "twenty-two feet long.

The other three classrooms ar~ overcrowded,with no cloakroom or washroom,and pupils have to go to nearby homes for a drink of water or to use the washroom. Since govemment is responsible for providing adequate school facilities, we feel that if a new school is not built or at least begun we will not be obligated to send our children to the present school in September of 1974. We trust that the govemment and especially the Minister of Education will be sympathetic to our cause and make this school a reality at the earliest possible date." Mr.

Speaker, as I have said, this is signed'by sixty-two parents at Mccallum. I take much pleasure in presenting the petition. 2220

March 21, 1974, Tape 710, Page 1 -- apb The prayer of it does draw attention, does dramatize once again the desperate need for govenunent, in this current year, to substantially increase the amount of capital funding available to the Denominational Educational Committees and through them to the school boards of this province. Hr. Speaker, I ask that this petition be placed on the table of the House and referred to the department to which it relates. HR. SPEAKER: The honourable Member for Burgeo Lapoile: HON. E.M.ROBERTS (Leader of the Opposition): Mr.

Speaker, before the honourable Gentleman for Burgeo - he has another petition I take it - HR. EVAL'lS: Pardon! }IR. ROBERTS: The honourable gentleman is not speaking on the petition just presented? A.'l HON. MEI-IBER: No. NR. ROBERTS: If I may say just a word in support of the petition presented by the Gentleman from Hermitage, Sir. I had the pleasure of being in Mccallum during certain public events last fall. They say that politics make strange bedfellows and indeed they did on this occasion because it was a busy night in Mccallum and there is no public accollllllodation.

We might as well have it all come out, Sir, the honourable gentleman from White Bay South and I shared a very large bed with each of us balancing on one corner or one edge. The school, Sir, is in deplorable condition and I know the Integrated Education Committee wish to build a new one there. It is a matter of funds and I hope that in bringing this petition to the House their caused is strengthened. From my personal knowledge, Sir, I think there is a need and I support the prayer of the petition. MR. SPEAKER: The honourable Member for Burgeo Lap~ile: MR. EVANS: Mr.

Speaker, I beg leave to present a petition bearing 2221·

March 21, 1974, Tape 710, Page 2 - apb the signatures of 780 residents of Ramea in my District of Burgeo Lapoile. The prayer of this petition states that they request that a third doctor, instead of being sent to Burgeo, be sent to Ramea instead and that the nursing station facilities be upgraded there and also to have a dentist sent to the island at least twice a year. It gives me great pleasure to support this petition. Ramea is only nine miles from Burgeo but there you have nine miles of pretty rough water.

As Ramea has a large fish plant and could at any time suffer a big industrial accident, which could easily happen in a plant of that size, you can imagine what loss of life could be involved. I was on open-line this morning and I had several calls from the people of Ramea and that was their main complaint- the lack of nursing services. , The human work that is being done by the male nurse there, nurse Stewart, he is working from about nine in the morning until probably one or two o'clock the next morning and he is not able to look after all the people then.

Another thing that I would like to point out is that Ramea is about the only place in Canada today that has a labour shortage. I think that these people are due everything that can possibly be provided for them. I wish this petition to be placed on the order table and referred to the department to which it relates. MOTIONS: MR. SPEAKER: The honourable the Premier: MR. MOORES: Nr. Speaker, I give notice that I shall on tomorrow ask leave to introduce a bill, "An Act To Provide For The acquisition By The Province Of The Shares Of BRINCO Limited." MR. SPEAKER: The honourable Minister of Finance: HON.

J.C.CROSBIE (Minister of Finance): Mr. Speaker, I give notice that I will on tomorrow ask leave of the House to introduce a bill, "An Act To Provide Monies For The Acquisition By The Newfoundland 2222

March 21, 1974, Tape 710, Page 3 - apb Industrial Corporation For Ali Of The Shares Of BB.INCO Limited.'' MR. SPEAKER: The honourable the Minister of Justice: HON. T.A.HICKMAN (Minister of Justice): Mr. Speaker, I give notice that I will o~ tomorrow ask leave to introduce the following bills: A bill, "An Act Further TO Amend The Child Weliare Act·, 1972." A bill, "An Act Further To Amend The Bills Of Sales Act.'' A bill, "An Act ·Further To Amend The Welfare Of Children Act." OlIDERS OF THE DAY.: MR. SPEAKER: 'The honourable the Member for Hermitage: :t-m.. SIMMONS: Mr.

Speaker, I would like to direct a question to the Minister of T-ransportation and Communications: In view of the almost impassable condition of the gravel sections of the Bay D'Espoir Highway and the fact,for example, :t-lr. Speaker, today the postal officials had 2223

March 21, 1974 Tape 711 PK - 1 to arrange the delivery of mail to Bay D'Espoir, Hermitage and Fortune Bay by air because of the road condition, would the minister indicate to the House what steps his department is taking to rectify this deplorable situation? MR. SPEAKER: The Hon. the Minister of Transporation and Communications. HON. T. P. HICKEY (MINISTER OF TRANSPORTATION AND COMMUNICATIONS): Mr. Speaker, the problem with the Bay D'Espoir Highway is one which my department have being attempting to solve by way of rebuilding and upgrading that road.

It is a unique situation in as much as whenever there is soft spots occurriny in the road,if we attempt to remedied it right away.while the temperature is high,we tend to make it worse and create more problems than solving them. I am afraid the situation is that until the temperature drops there is not very much we can do, Certainly this has been the situation on a number of occasions. I regret that we cannot offer any other solution at this particular time. MR. SIMMONS: Mr. Speaker, a supplementary question to the Minister of Transporation and Communications.

Is the minister aware that on Tuesday night the temperature did drop but there was no equipment available to take advantage of t_he drop in temperature and, if he is• will he indicate to the House what he intends to do to make available additional equipment so the highway maintenance crews there can effect whatever maintenance is possible,. givinR them the verv bad condition of the roadbed. MR. HICKEY: Mr. Speaker, I was not aware;! was out of the province on Tuesday night. I have directed my people to give top priority, as is the case in any region to any road that is closed or that is next __ to impassable.

I have the greatest confidence in my staff and I am sure that this will be attended to and that the repairs will be effected as quickly as possible. MR. SPEAKER: The honourable Member for Bonavista North. MR. P. s. THOMS: Mr. Speaker, I would like to direct a question to the Minister of Fisheries: I wonder could the minister inform this House when his department is going to compensate our fishermen on the Northeast Coast for storm damage last year1 2224

March 21, 1974 Tape 711 PK - 2 MR. SPEAKER: The Hon. the Minister of Fisheries. HON. H. A. COLLINS (MINISTER OF FISHERIES): Mr. Speaker, I presume the honourable member is referring to storm damage to lobster pots. There have been a considerable number of claims made. In •fact we have received claims indicating that there were more pots lost than there are pots in the water. It meant that there had to be a considerable amount of investigation. About half of the amount of the total loss has been documented and cheques should be in the mail either today or tomorrow.

T.he remainder should be in the mail by the end of the week. MR. P. S. THOMS: Hr. Speaker, do I understand from the minister that there were actually claims put in for pots lost more than there were actually put in the water? Is the minister saying that some of our Newfoundland fishermen are lying in their claims or are they filing false claims? MR. SPEAKER: Order please! Order please! MR. THOMS: This is what the minister is feeling, Mr. Speaker. MR. SPEAKER: Order please! Order please! MR. COLLINS: Mr. Speaker, if the honourable member wants to put that

interpretation on my answer, that is fine. But all of the lobster pots in Newfoundland are registered by the federal government. If we receive a claim for 200 pots and the fishermen have been registered for 150 pots naturally we must go back and check into that to make sure that the claim is right and very often we find that there have been some pots which the fishermen have registered with the federal government they had not advised us of but all of this takes time and this is one of the reasons for the delay. MR. SPEAKER: The honourable Member for Fogo. CAPT. E.W. WINSOR: Hr.

Speaker, might I direct a ~upplementary question to the Hon. the Minister of Fisheries1 ls the honourable minister saying it is only fishermen who suffered loss through losing , lobster pots or is he including salmon nets, lump nets and other equipment, or is it just the lobster pots he is referring to? MR. COLLINS: Mr. Speaker, I ask the honourable the Member for Bonavista North if he were referring to the loss of lobster pots. In the case of the loss of lobster pots we send cheques to the 2225

March 21, 1974 Tape 711 PK - 3 fishermen who .suffered the loss. tn <;aae of other types of gear,after the fisberman has documented lds case &Jtd taken an affidavit that he lost the gill net or two gill nets _or ten or twelve or fifteen co_d traps o.r what.ever it 1Dight be, after all of that bu been cleared and he has purchased replace111@ts in limits or '. comp.lete units, in c01Dplete kits fro1D the various suppli .ers across the province, after all of that has been documented then we pay the supplier the 2226

March 21, 1974 Tape no. 712 Page l - MW amount of the provincial subsidy, We do not send the cheques directly to the fishermen for any loss other than lobster pot loss. AN HON. MEMBER: What percentage? MR. COLLINS: The percentage works out, Mr. Speaker, to roughly around fifty per cent. MR. M. 'WOODWARD: Mr. Speaker, I would like to direct a question to the Minister of Transportation and Conmunications regarding his visit to Ottawa during the last couple of days with respect to his joint Quebec-Newfoundland proposal on the Trans-Labrador Highway.

I wonder if the honourable minister can tell the House if he has had my success with the federal people? What plans they have? And if the proposal has be accepted to get the highway started this summer? HON. T. V. HICKEY (Mi.nister of Transportation and Communications): Mr. Speaker, there has been no proposal made to the federal government as yet. About the only thing I can say at this time is that there will be a meeting before the end of the month, before the end of the present month.

I cannot give the date at this time because the information we seem to be getting seems to be changing almost by the hour and I would not dare risk nor take the chance of indicating the exact date until I 8JII completely sure. I felt I was sure two days ago but at this particular time I am not. That is about all I can say except to repeat that by the end of this month a proposal will be made,by my counterpart in Quebec and myself, to the federal government. ORDERS OF THE DAY: On motion of the Hon.

Minister of Education, a bill, "An Act Further To Amend The Schools Act," read a first time, ordered read a second time on tomorrow. On motion of the Hon. Minister of Mines and Energy, a bill, "An Act Further To Amend The Petroleum And Natural Gas Act," read a first time, ordered read a second time on tomorrow. On motion of the Hon. Minister of Finance, a bill, "An Act To Repeal The Debentures Of The Province Act," read a first time, ordered read a second time on tomorrow, 2227

March 21, 1974 Tape no . 712 Page 0 2 On motion of the Hon. Minister of Justice, a bill, "An Act Further To. Amend The District Courts Act," read a first time, ordered read a second time on tomorrow. On motion of the Ho.n. Minister of Justice, a bill, 11An Act To Amend The

Interpretation Act 1 " read a first tillle I ordered read a second time on toniorrow. 2228

March 21. 1974 Tape No. 713 NM - 1 On motion of the honourable Minister of Justice, a Bill, "An Act Further To Amend The Judicature Act.'' read a first time, ordered read a second time on tomorrow, On motion of the honourable Minister of Justice, a Bill, "An Act Respecting Fraudulent Conveyances," read a first time, ordered read a second time on tomorrow. On motion of the honourable Minister of Forestry and Agriculture, a Bill, "An Act Respecting The Appointment And Powers Of The Newfoundland Geographical Names Board," read a first time, ordered read a second time on tomorrow.

On motion of the honourable Minister of Health, a Bill, "An Act To Amend The Communicable Diseases Act," read a first time, ordered read a second time on tomorrow. On motion of the honourable Minister of Provincial Affairs and Environment, a Bill, "An Act Further To Amend The Conditional Sales Act," read a first time, ordered read a second time on tomorrow. On motion of the honourable Minister of Mines and Energy, a Bill, ''An Act To Amend The Undeveloped Mineral Areas Act," read a first time, ordered read a second time on tomorrow.

Motion second reading of a Bill, "An Act Further To Amend The Department Of Education Act." HON. G. OTTENHEIMER, MINISTER OF EDUCATION: Mr. Speaker, this is a straightforward,routine and uncontroversial matter.

Actually what this Bill presents was government requested bv the denominational educational committees concerned and what it provides is that those executive s·ecretaries who previous to their appointment to that post were superintendents (Under th~ former nomenclature. they were superintendents, members of that Council of Education) that those executive secretaries ~ho previous to their appointment were civil servants and superintendents,in that terminology, will be able to benefit fully from the Public Service Pensions Act. That is what it provides. They did not come under any Teachers' Pension Act 2229

March 21, 1974. Tape 714 RH - 1 ~or any other and that is what the bill provides and I move second reading. MR, F. B. ROWE: Mr. Speaker, I cannot see any ob.1ections to this par- ticular bill. Mr. Speaker, it seems to be just a house-cleaning job and obviously it comes as a result of a request of the denominational educational committees and I, for one, support the bill, Mr. Speaker. On motion a bill, "An Act Further to Amend the Department of Education Act", read a second time, ordered ref.erred to a committee of the whole House presently, by leave: MR OTTENHEIMER: Now, Mr.

Speaker, there is~ bill even ~ore straightforward - there is one, I may say, in between, Order No.18. The reason we are not doing that is that there was a bill dven first readin!!'. today and it is certainly preferable that they be considered toget~er, those particular two, because they are related, Second Reading of a bill,"Ar- Act to Arnend' the College of Fisheries Act:" This one is purely mathematical.

At present the act provides for three ex officio members on the Board of Governors of the College-of Fisheries and this will amend it whereby there will be two and that will be the Deputy Minister of Education and the Deputy Minister of Fisheries. That is not only essentially, that is in toto what it does. I move second reading. MR. ROWE: bill. Again, Mr. Speaker, we find no objections to this particular On motion a bill,

An Act Further to Amend the College of Fisheries Act", read a second time, ordered referred to a comlilittee of the whole House presently, by leave: On motion that the House resolve itself into a co111111ittee of the whole to consider said bills, Mr. Speaker left the Chair: . . . ~ .,... .. ~ - ......... .,,,,-. •. COMMITTEE OF THE WHOLE: - A bill,"An Act Respecting The Pension Of The Chairman·Of The Board Of Commissioners Of Public Utilities," 2230

March 21, 1974.

Tape 714 RH - 2 Motion, that the committee report having passed the b_ill without amendment, carried: A bill, "An Act Further To Amend The Change Of Name Act," Motion, that the committee report having passed the bill without amendment, carried: A bill, "An Act To Amend The Automobile Insurance Act." Motion, that the committee report having passed the bill without amendment, carried: A bill, "An Act Further To Amend The Co-•operative Societies Act." Motion, that the committee report having passed the bill without amendment, carried: A bill, "An Act Further To Amend The Maintenance Act," Motion, that the committee report havinR passed the bill without amendment, carried: A bill, "An Act Further To Amend The Adoption Of Children Act." Motion, that the committee report having passed the bill without amendment, carried: A bill, "An Act To Amend The Pesticides Control Act." Motion, that the committee report having passed the bill without amendment, carried.

MR. CHAIRMAN: Would the clerk count the Committee, please? On motion that the committee rise and report there are but ten members in the comilittee, Mr. Speaker returned to the Chair. 2231

March 21, 1974 Tape 715 IB-1 MR. STAGG: Mr. Speaker, in the quorum call the clerk indicated that there were ten members in the Committee. MR. SPEM(ER: Would the clerk COi.Ult the House again please? There are seventeen members present. There is now a quorum. On motion that the House go into Committee of the Whole on said bills. Mr. Speaker left the Chair. COMMITTEE OF THE WHOLE: A bill, "An Act To Amend The Insurance Adjusters Act." Motion that the committee report having passed the bill without amendments, carried.

A bill, "An Act To Amend The Department Of Provincial Affairs And Environment Ac~, 1973." Motion that the committee report having passed the bill without amendments, carried. A bill, "An Act To Amend The Maintenance Orders (Enforcement) Act." Motion that the committee report having passed the bill ~Tf.thout amendments, carried. A bill, "An Act To Empower The St. John's Municipal Council To Raise A Loan For Municipal Purposes By The Issue Of Bonds," Motion that the conunittee report having passed the bill without amendments; carried. A bill, "An Act Further To Amend The City Of St.

John's Act." On motion Clause 1 and 2 carried. MR. HICKMAN: Mr. Chairman, I move the following amendment to insert as clause 3 the following clause. The said Act is further amended by inserting immediately after

section 73, the following as

section 73(a). I have given a copy to the honourable the House Leader. Do you wish me to read the entire - AN HONOURABLE MEMBER: Inaudible. MR. RICKMAN: All right, I will read it. Seventy-three (a), - the council may hold, sponsor, encourage or support such local or national games, sporting events, exhibitions, fairs and recreational and artistic activities as it considers to he 2232

¥.arch 21, 1974 Tape 715 IB-2 in the interests of the inhabitants of the city and other persons resorting to the city, and make e.xpend out of the general revenue of the city such money as it deems fit for any or all of such purposes. 2 - the council may enter i.nto agreements with (a) . the Government of canada or any province of Canada; (

b) a town council, rural district council, Board of Trustees of a local improvement dist rict established and operated under the local government act, 1972; and {

c) any person, firm or corporation governing all or any of the matters referred to in subsection 1 , including without prejudice to the generality of the foregoing t he making of provision for financial and other assistance by or to the council for such matters . Clause 3, the powers conferred by subsection 2 on the council to enter the agreements therein referred to shall be deemed to include a power on the government of the province 2233

March 21, 1974 Tape No. 716 NM - 1 and on any of the municipalities referred to in subparagraph (

b) of that subsection to enter such agreements and: and (

b) to renumber claus~ 3 (

b) and 4 as clauses 4 and 5, and I so move. The purport of this amendment is to enable the Municipal Council of St. John's to enter into agreements with any province, the Government of Canada and any town council, with respect to Canada Games. MR. CHAIRMAN: The honourable member for White Bay South. MR. WM. ROWE: I think, Mr.

Chairman, it is fitting that one or two members in the House say a word or two on the amendment because as minor as it may appear on the surface and as unspecific as it -may appear on the surface of course it is as the Minister of Justice has said, the amendment is moved now to accommodate the City of St. John's in its plans for the Summer Games.

I would not like to see the amendment passed, it is a good amendment, of course, but I would not like to see the amendment passed without commending Mayor Wyatt and other officials, provincial and municipal, for the work that they did in stealing the games from the other leading contender. I understand the City of St. John, in New Brunswick, if we can judge from the comments made by Bob Lockhart, who I believe is the Bob Lockhart who used to live in St. John's. (The mayor was at university with a number of us, now the Mayot of St. John.) If we can judge by his comments, he was exceedingly disappointed.

I know that a tremendous amount of work was done by the City of St. John, New Brunswick, a couple of years of work, apparently roomsful of submissions and statements as to how good the City of St. John was to have these games, these Summer Games; and the fact that ·thts City was able to get the games, get the announcement from the ministerj goes a long way to show that snme excellent work was done on our part here as ,well. I would not like to sit down either, Mr. Chairman, without giving credit where credit is also due. I think Mr. Marc Lalonde, 2234

March 21, 1974 Tape No. 716 NM - 2 the Minister of Health, who made the announcement and participated in the final decision should be commended for the excellent decision . and the Liberal Government in Ottawa generally and particularly our own Minister in Ottawa, Mr. Don Jamieson. We have no~ heard any mention made in this province about any political decisions made or decisions made out of political motivation. We have heard Mayor Lockhart say that this was purely and simply a poli'tical decision. Well if it were,Sir, I think we should be happy.

I am not saying it was, other than the fact that politicians made the decision. We should be very happy and plea!!ed that Don Jamieson has the clout in Ottawa, the power in Ottawa, and is so well regarded among his colleagues that they were willing to incur the wrath of St. John particularly and probably New Brunswick generally in order to grant the games to this city here, St. John's, Newfoundland. I think Mr.

Jamieson should get the applause of this House and the applause of all members in it for the excellent work he did in making sure that this tremendous achievement, this tremendous idea will be realized in St. John's in 1977. Mr. Chairman, I have no hesitation at all in accepting the amendment. In fact, Sir, it gives me a great deal of pleasure to support it wholeheartedly. MR. CHAIRMAN: The honourable member for St. John's South. MR. R. WELLS: In this regard there is absolutely no need really to talk about the principle of the actual detail of the amendment, Mr.

Chairman, but as a member of this House and particularly as the member for the St. John's South, I have great pleasure in supporting the amendment. This is something that Newfoundland, and I say Newfoundland advisedly, not just St. John's, the sort of thing Newfoundland has never had before, something which in our twenty-fi~e years as a Province of Canada, something which I and all of us are glad to see come Newfoundland's way. I think that a great deal of credit is due to the Mayor and Council of St. John's who pursued this, to the honourable Donald Jamieson in Ottawa who pursued it also 2235

March 21, 1974 Tape No. 716 NM - 3 behind the scenes and openly in Ottawa and also of course to the Government of Newfoundland which has promised and promised to make available,$3 million coDD!litted to make available to make these games possible which will be of benefit to all of Newfoundland, not just St. John's. I think it is something of which we can be justly proud, Mr. Chairman, and I have no hesitation in supporting the principle of this amendment. MR. CHAIRMAN: The honourable Minister of Tourism . HON. T. DOYLE, MINISTER OF TOURISM: Mr. Chairman, my honourable colleague and friend from St.

John's South was a bit more nimble on his feet than I was that time, but he said -pretty well what I had intended to say and that is that obviously we are all delighted that the decision was made by Mr. Lalonde to award the ganies to St. John's for 1977 and I have no hesitation in standing here or anywhere else, and as the honourable member for White Bay South has said, olacing credit where credit is due.

I think credit is due in a good many places but I have reason to believe that a fair amount of .it is due on the shoulders of our representative in the Federal Cabinet,and I have no hesitation whatsoever in giving it at this time. Thank you! MR, WM. MARSHALL: Mr. Chairman, as a member for St. John's I would li~e to heartily endorse the amendment. I shall not be as partisan, it is not my nature, as the honourable member for St.

John's South was because the honourable the Minister, what is his name in Ottawa, the Minister of the Department of Regional and Economic Expansion, spurred on as I know he is from ·time to time by the great spurrings on and whippings and barbs and what have you and suggestions of the member for St. John's _East and the member for St, John's West and the other two working members in the House of Commons, the member for Gander­ Twillingate and the member for Humber-St. George's-St. Barbe, they did have a certain amount to do with the bringing of the games here.

But I think primarily the credit has to go to Mayor Dorothy Wyatt of 2236

March 21, 1974 Tape No. 716 NM - 4 St. John's for her drive and initiative in bringing the games here. At the time when she took office it was the situation that perhaps not as much backup work had been done with respect to the brining of the games here as might otherwise been expected to be done, and this was perhaps due to the fact that there was an election in November. I do not know the reason why. But certainly she had a very short ti111e within which to organize and get together the people concerned for the purpose of making a submission.

She did this in a very efficient and effective manner and certainly the results Rhow it. I do not think it should be fo-rgotten either, Mr. Chairman, and I know the honourable mE!lllber for White Bay South would not want this to be forgotten, the fact that $3 million of the provincial money is going into this and the games would not have been possible without the $3 million injection for the purpose of creating the facilities. We were very grateful and we were delighted, this government was, to do something at long last for the City of St. John's and the environs,and the Mayor of St, John's requested this.

The honourable Minister of Tourism and Recreation and Youth, the member for Ferryland, broad-minded 2237

March 21, 1974 Tape 717 PK - 1 honourable member outside of St. John's heartily endorse this and brought this to cabinet and fought for it and we were only too happy to inject a large amount of money into this effort as we are determined in the future to see that St.John's for the first time gets its due recognition as well from the public treasury as well as from other areas. I might point out that these games ~re not really solely and completely for the benefit of the people of St. John ' s but for Newfoundland generally. This is a great thing for Newfoundland.

The facilities that are going to be created by the provincial government here are going to be permanent facilities. A·lot of them will be attached I understand to the university and will be used by the youth and the citizens all over Newfoundland,everywhere. I am certainly delighted as I say to support this amendment. I give major credit to Mayor Dorothy Wyat~. I give credit certainly to the Hon. the Minister of the Department of Regional and Economic Elt'Oansion.

I give credit to the other honourable members of the House of Conimons who also pushed this as well and I also feel that the whole thing would not have been possible without all three branches of ·government work1n~ together and this time we had a sympathetic government to the needs of the youth of the province and consequently the dream became a reality. But most definitely,congratulations to Mayor Wyatt. I am delighted to support the amendment. MR. CHAIRMAN: The Hon. the Member for Labrador West. HON. J. G. ROUSSEAU (MINISTER OF MANPOWER AND INDUSTRIAL RELATIONS): Mr.

Chairman, if I may.a few words - I was certainly pleased to hear about the awarding of the games to St. John's and I think that everybody who was involved in the qecision should be congratulated for their tenacity and persistence in the good work done in preparing the bid. I think certainly the Newfoundland representative in the cabinet certainly has to have his share of congratulations for the work done. Mayor Wyatt, who in a very short time was able to gather the forces of a conmittee 2238

March 21, 1974 Tape 717 PK - 2 under the capable auspices of Frank Butler and the committee, went on to prepare a report apparently that had something in it which finally arrived at the conclusion where we in Newfoundland should receive the 1977 Summer Games. I would like to speak,if I may, first as an ex-athlete in the province, certainly I am sure that all athletes in the province are very pleased with this. I would certainly like to mention, I hear "St. John's, St. John's, St. John's;' I would like to speak to the peonle outside of St.

John's because I hold the opinion that Newfoundland does not begin and end at the Avalon Peninsula. I am sure that the people of the whole province are quite pleased with this announcement. I am particularly pleased with it for one statement that was made by the Hon. the Premier and by the Hon. the Minister of Recreation and ' Rehabilitation,that no sports facilities or sports enthusiasts outside of the City of St. John's will suffer because of the $3 million input into the Summer Games.

While I think the Summer Games are important and while I welcome our success in bidding on them,I think that if they had had to proceed with a resultant loss in recreational · facilities and money for recreation in the province,! do not think that the situation would have been as good as it is. So I am pleased that the Premier and my cclleague, the Minister of Recreation,have suggested to the people of the province that they will not lose because of the bid that was successful on our part to acquire the Summer Games in 1977.

I am sure that everybody now is of the unanimous opinion, be we on one side of the House or the other,that th~s is why it is said that we all have to pull together now,and I am sure that the success of the games will be ensured with complete co­ operation of all levels of government, sports enthusiasts and indeed everybody in the province. MR. SPEAKER (STAGG): The honourable the Member for St. Barbe North. MR. F. B. ROWE: Mr. Speaker, I rise to support the amendment put by the Minister of Justice. I rise as a result of some colliments of the honourable the Member for St. John's East.

Sir, I fully realize that the facilities that we are going to get as a result of the announcement, the awarding of the Summ~r Games ,in St. 2239

March 21, 1974 Tape 717 PK - 3 John's, Newfoundland.will to a certain degree benefit all of Newfoundland and Labrador. There is no doubt about that at all but, Sir, I have to say that obviously, logically it will benefit the area of St. John's and the Avalon Peninsula to a greater extent than it will the rest of the province for a very obvious, physical and geographical reasons.

I simply would like to state, Sir, that I hope that when the estimates are handed down that in the Department of Recreation and Rehabilitation we will see an equivalent amount of money provided to the rest of the province, a relative amount of money for the rest of the province,and we can get into the nitty-gritty details if we look at population, Four-fifths of the population live outside the City of St. John's, so one could logically say therefore we should have something like $4 million provided for the next three years for facilities outside of St. John's.

I do not know whether this will be done or not, Sir, but I would like to express and point out the fact that I feel that something of the equivalent of the amount that is going to be provided by the provincial government for these recreational facili~ies for the Summer Games should be provided for the more rural areas of our province and I think particularly of my own district where there is next to nothing in the way of facilities for sports facilities and recreational facilities. I am sure that there are many other rural districts that fall into the same boat. Sir, I do support the amendment.

I congratulate the provincial people, the municipal people, the federal people and the private citizens who put a lot of effort into getting the Summer Games to St. John's, Newfoundland. I would like to express the wish that the more rural areas of our province will certainly be given consideration when it comes to the provision of recreational facilities in our province. MR. HICKMAN: Apparently in bringing in the amendment I did not realize that we were going to get into debate,and there are a couple of points that I would like to make.

One is that I am very pleased and I am sure every honourable member of this House is pleased with the tremendous support that has been forthcoming from organized bodies throughout the 2240

March 21, 1974 Tape 717 PK - 4 ~rovince toward the request of the City of St. John's to have the Canarla Games in the Ancient Capital. I do not wish to be parochial but I was indeed proud the day following the announcement by Mayor Wyatt that St. John's was indeed going to make a formal application to the Hon. Marc Lalonde to have Canada Games, Summer Games,in St. John's;that the joint town and community councils of the Burin Peninsula unamimously passed a resolution supporting this application.

There has been an indication from other municipal bodies, indeed this may be subject to correction but I believe the Federation of Mayors and Municipalities gave an indication,but I will not swear to that, of their support. It is obvious to anyone when we look at the great benefits that accrued to the Province of Nova Scotia as a result of the first Summer Games being held in Halifax, the entire province,that it is inevitable that the bringing to this province of improved recreational facilities will resound to the benefit of everyone in the Province of Newfoundland from Labrador City to Cape St. Mary's.

I not only connnend 2241

March 21, 1974, Tape 718, Pagel -- apb Hayor Wyatt and her council for the imput that they have put into the presentation to the Government of Canada but I also extend to her my hope that she and her council in finding a competent manager for this project will be successful. It is a tremendous job. Indeed, I am bold enough to suggest that the presentation to the Government of Canada,comparatively speaking, is small when one thinks of the work that now faces the people of Newfoundland in preparing for the Canada Games. The Province of Nova Scotia was very fortunate indeed in acquiring the services of Mr.

Findlay HacDonald as the Chairman for Nova Scotia at the summer games. It is equally essential,in my opinion, that the Province of Newfoundland, through the St. John's City Council,acquire the services of a person competent to bring together during the ensuing months the kind of organization that is necessary to make this a successful operation.

I also appeal to the and direct the attention of the people of Newfoundland to the fact that during the year of the su1D111er games we will have literally thousands of tourists coming to this province for summer games, but who will inevitably move throughout the province to look at our other tourist attractions. Whilst I know the hospitality will be there, it is vitally important that accommodation also be provided. This has been a tremendous example of the kind of co-operation that has existed between the Government of Newfoundland and the Government of Canada during the past two years.

The co-operation has never been better. My liaison with my confrere, the honourable the Member for Burin - Burgeo,as exemplified by the paving of the road from Lawn to St. Lawrence,has never been better. I think that it exemplifies and constitutes proof positive of the attitude of the Government of Canada to any Canadian Province. "If you do your homework 1you will find that we are very ready, willing and able to 2242

March 21, 1974, Tape 718, Page 2 -- apb accept your proposals." There is no doubt that the homework was done in this case, aided and abetted by a very substantial financial contribution. I know I voice the sentiments of all in this honourable House when I say to Mayor Wyatt and her council and to all Newfoundlanders that we are about to embark upon a very challenging job that I am sure we will respond to with a great deal of success. MR. SPEAKER (Stagg): The honourable the Leader of the Opposition: HR. ROBERTS: Mr.

Chairman, on this particular point I gather we are all agreed and there cannot be many points that have not been made and so I will not attempt to make them again. I do not want to let the opportunity go by without associating - my colleague has spoken but without associating myself and for that part the rest of the opposition with the Canada Games and to congratualte the Mayor, Hrs. Wyatt,and her council in getting it. I think it is a good example of federal - provincial co-operation. I think it is an even better example of federal - municipal co-operation.

I think it is an even better example of federal co-operation, because while I do not want for one monent to take away one iota of the extremely substantial credit which must accrue to Mrs. Wyatt, to her colleagues on the St. John's Council, to Mr.

Butler, seconded so readily and so helpfully by the Minister of Tourism and the Minister of Recreation and Rehabilitation, I do not want to take away one iota of the credit due to them, Sir, and a great deal of credit is due to the1·, I venture to say without fear of contradiction that these games would not have come to Newfoundland at this time -tf it had not been for the decision of the honourable Mr. Lalonde, in which I have no doubt his colleague and friend the honourable Don Jamieson was, shall I say, instrumental.

I gather from reading the press that the recommendation made by the committee of officials apparently was not in favour of St. John's, Newfoundland. The Minister of Tourism I see is nodding. I gather that is connnon ground. The officials recommended St. John, New Brunswick and that was their duty, their right and their 2243

March 21, 1974, Tape 718, Page 3 -- apb obligation because that is what the y fdt, obviously. Mr. Lalonde in his wisdom chose not to accept that recommendation which again is his right and his duty if he feels,as obviously he did. I have no hesitation in saying and I would like it to stand on the record that Mr. Jamieson, the honourable Mr. Jamieson, the Member for Burin - Burgeo and the Minister of Regional Economic Expansion,was instrumental.

I will venture to say further that if it were not for Don Jamieson the recollllllendation of the committee of officials would have been accepted and that the games would have been awarded to St. John, New Brunswick. In other words, Sir, it could not have been done without Don Jamieson. Equally,it is fair to say that if the application had not been initiated by Mrs. Wyatt who picked it up and carried it forward with vi 5or and determination and if it had not been so well documented by a brief and supported by a brief put together by Mr.

Butler and the people associated with him on the committee, equally it could not have been done. All of that, Sir, was not enough. It was Don Jamieson who got the summer games to Newfoundland and that should stand on the record and it should stand very much to his credit. To his credit, Sir, because I believe it will be a very good thing for Newfoundland. It will give our athletes the opportunity to compete nationally, to national standards,here in their home province.

It will be a boost not only for the hundreds of young men and young women who will compete either in the games themselves or in the various run-offs leading to the games, but to the thousands of young men and young women who will takes

part in the sports which will be featured in the games. I am delighted that the government assure us they are not going to in any way make the rest of the province do with less in the way of recreational facilities because they are going to make available the $3 ~illion to St. John's for the games. That is splendid. I understand from the press that the Minister of Tourism is saying we are going to have the largest recreation budget ever

March 21, 1974, Tape 71a , Page 4 - - apb this yea r,and 1 welcome that. It is normally true that each ye.ar budgets do increase and I hope it increases substantially an<l significantly . I can tell him, I think he knows it full well but I can tell him that the sports fraternity expect a very , ver y, very substantial increase this year. If there is one area in which the present governm ent have fallen down, more notably even than all of the other areas, it is t his question of fina ncin g sports facilities around the province. There bas been nothing but one disappointment after another . Your Honour, I have no doubt is 2245

March 21, 1974 Tape no. 719 Page 1- MW familiar and probably bears the political scars of some of the disappointments. Be that as it may,the important thing is that we have the games. Everybody concerned will pitch in and make it a great success. It might be interesting if we had a run amo~g the members of the House of Assembly. I would think that that would be a most intriguing contest. It could lead to some intriguing irizes. AN HON. MEMBER: Streakers: MR. ROBERTS: Streakers. MR. W. N. ROWE: (Inaudible). MR. ROBERTS: I am waiting, Mr.

Chairman, for the day when somebody stands in this House and looks at His Honour and says, "Mr. Streaker.• I think that, Sir, is the answer. The games will be a good thing for Newfoundland. The ·credit should go to Don Jamieson and most importantly of all the fact that the games are coming to Newfoundland and the government .re making a contribution will not in any way lessen the financial aid available to people outside St. John's. That is all important. As valuable as the games are, I suggest that it is equally valuable to build recreational facilities in the counnunities throughout Newfoundland.

That 13 what I want to ·see done in particular and that is what I hope the minister will do when he brings in his estimates. MR. W. N. ROWE: Hear: Hear! On motion clause (3) as amended, carried. On motion clause (4) through to clause (5) carried. Motion that the committee report having passed the bill with amendment, , carried. A 11111, "An Act Further To Amend The Department Of Education Act." Motion that the committee report having passed the bill without amendment, carried. 2246

March 21, 1974 Tape no. 719 Page 2 A bill, "An Act Further To Amend The College of Fisheries Act.'' Motion that the committee report having passed the bill without amendment, carried. On motion that the committee rise and report having passed Bills Nos. 8, 6, 3, 7, 9, 101_ 18, 16, 19, 17, 22, 12 and 14 without amendment and Bill No. 23 with an amendment, Mr. Speaker returned to the Chair. MR. STAGG: Mr. Speaker, the Committee of the Whole have considered the matters to them referred and have directed me to report having passed Bills Nos. 8, 6, 3, 7, 9, 10, 18, 16, 19, 17, 22, 12 and 14 without amendment.

On motion report received and adopted. On motion bills ordered read a third time on tomorrow. MR. STAGG: Mr. Speaker, the Committee of the Whole have considered lhe matters to them referred and have directed me to report having passed 11.11 No. 23 with an amendment and ask leave to sit again. On motion report received and adopted. On motion amendments read a first and second time. On motion Bill No. 23 ordered read a third time on tomorrow. MR. SPEAKER: Order (1): Address in Reply. I think the Hon. Member for Burgeo-LaPoile adjourned the debate last night. MR.A. EVANS: Mr.

Speaker, I had not intended to enter the current debate, but since the mountain has brought forth, another mouse, which in this instance happens to be a twin, I feel impelled to do so. Mr. Speaker, when one considers what has been accomplished by this Government in the past two years; in so many areas, which everyone who is wo~th his salt can see without being prompted and aren some of the top Liberals in the Province are acclaiming, it is Jitiful to see such an inept opposition trying to downgrade our accomplishments but ending up by destroying themselves in the process.

They think the public is eating up this malarkey but instead the public is realizing more and more as time goes on just how ridiculous the opposition is acting in this regard. 2247

March 21, 1974 Tape no. 719 Page 3 Sir, the Member from White Bay North says we should stop blaming the fonier administration. He says that he was proud to serve under Joe Smallwood . Let me remind him that Eichlllan was prou d to serve under Rilter in eliminating the JENs. They still hanged him though. I am not suggestin g they hang the member literally; he is hanging himself politically. Sir, we have heard so much about the forces of political knavery, etc., we are supposedly practising on the people of this provin ce.

I can tell the mel!lbers opposite plenty that was done by the former a4!ninistration vhile it was in office . 1 will deal with Bay d'Espoir as one example . Back in the early fifties Bowaters had a good woods operation 2248 ,. 

March 21, 1974. Tape 720 RH - 1 in Bay d'Espoir. They are taking about 20,000 cords of . wood per year. Then Smallwood made the announcement,made the announcement of a third paper mill to be built there. Bowaters pulled out. They did not intend to build roads and provide services for another company to move in. Of course, we were told by the great man himself,shortly afterwards,that the forth and fifth mills would have to be built hefore the third was started. At any rate, Bay d'Espofr was left with no industry and the people hml to resort to mainly living on welfare.

This situation continued until the power development took place and provided employment for a couple of years. During this boom time the people of that area were the victims of the most cruel hoax ever practiced on the human race. Every day they were deluded with announcements of national harhours, aluminum plants, paper mills arid you name it. Planes were flying in the ex-Premier and members of his Government daily. I met a chap there one day who told me he was instructed to draw up plans for a city with twice the population of St. John's.

I asked him if he had been instructed to plan another one close by with the same population as St. John's. He said, ''No. Why?" I told him they would need it to house the personnel from the Unemployment Insurance Office and the Welfare Denartment who would have to look after the population of that size in the area. Everyone knows now how sad the deception left these people whose hopes had been built up so high. Mr.

Speaker, when I think of the type of people who settled this Province and what was demanded of them to eke out an existance here,in fip,hting the elements, poverty and even the right to settle here, and then to see the descendants of these people, who are in the main just as hard working as their ancestors, being represented by a hunch of people who are making them appear to the world to be seeking nothing only wel­ fare and Unemployment Insurance Benefits. This is an insult to their intelligence. Frankly, Sir, I am amazed that the people of White Bay North have not marched into St .

John's demanding their member's resignation. Sir, we have heard inquiries here in this honourable House during this session, as to the cost of renovating the Premier's residence, who pays the rent, etc? How low can you go? There should be a rent-free 2249

March 21, 1974. Tape 720 RH - 2 residence for the Premier of this Province at all times. What about all the costs of renovating the house for the previous occupant and what about the fortune that was spent on Russwood Ranch? Let us remember that we will always have a Premier here unless the member from White Bay North takes over, then we will soon be back under a new commission of Government. Sir, the member from White Bay North is continually boasting about his education. we have heard that so many times here in this House.

Let me state here and now, Sir, that many of our Newfoundland people received their education in the fishing boats, the ocean-going ships and many _other areas where I have great doubts that he would have even survived, that is the physical aspects. If he had, I know many of us who have been in situations time and tim~ again where he would have probably died of fright. He refers to his "Brothers at the Bar". I am doubtful if he is going to supplant Perry Mason, for a while at least, and I do not think his friends at the Bar would be drinking screech either.

Sir, it is possible the Liberals may form another Government in this Province by the year ~000 and I do not think that many of the present members would be interested by that time. I have even heard, Sir, that the electorate of White Bay North have asked the member to move farther north in the next election, presumably to the Greenland Ice Cap. Mr. Speaker, we have heard so much the last few days by the member from Hermitage in regard to the Rural Development policy. According to him only P.C. 'scan qualify for loans.

Has he realized that if his collea~es and himself keep this up, stressing this point, everyone will be P.C. in the next election? As to the people in my district not receiving grants, there have been very few applications. My people were so disheartened under the Liberal administration,when for so many years they got nothing,that they still cannot believe that you can get some­ thing out of government. They was not even a long-liner, a decent long-liner, on my coast, 2250

March 21, 1974. Tape 720 RH - 3 They are getting them now though and I am sure that if the member from Hermitage is interested, be can get all the necessary facts about rural development from the minister. I can ~sure him now that the prime requisite is not in being a cry baby. In fact, I would even wager that if be insisted. the minister might even take him around the Province in a type of kangaroo sack. I am sure it would not iftconvenience the minister too much and would prove to be the beginning of an education for the member. I am delighted, Sir, that he singled me out for attention recently on open line.

It shows I have not lost the common touch. As a matter of fact, I do not believe I have ever attracted that type of attention before. It makes me wonder,if I were in Ireland in the old country, I might even bring out the leprechauns. Sir, I would submit that we have enough real problems in this Province, we do not have to rack our brains to look for imaginary ones.

The cost of living, the increased cost of services, which will surely delay installation of many of them,for a while at least, the drug problem which is a menace to the youth of our Province, along with the every day problems affecting our districts and our constituents should he enough to occupy our time. Why waste our time criticizing .1u_st for the sake of criticism or obstruction,whatever we wish to call it?

Sir, it amuses me when some program is mentioned which included federal funding in this Province, the first thing we hear from that side is, "Oh, that is the !!reat Liberal Government in Ottawa." Do they realize where Ottawa gets the money that comes back here? My taxes go to Ottawa. Probably they 2251

March 21, 1974, Tape 721, Page 1 -- apb think theirs go to Cuba or some other place like that. I wonde: do they realize that there are only three provinces in Canada which pay more into the Federal Treasury than they take out? Ontario,with generations of P.C.Government, thete is Alberta with generations of Social Credit and now a great P.C.Government and British Columbia with generations of Social Credit Government and now has gone N.D.P. Then they say it comes from a great Liberal GoverrunneJ!lt. What a joke! Mr.

Speaker, I took over a district that in regard to services was about in the same condition that John Cabot found it, in spite of the fa~t that it paid more revenue to this province and to the federal government than any other part of the province, even paying for Russwood, and, oh yes, Clearwater too. Now they are getting the services themselves,and they have confidence in this government that they will go on to greater and greater things. Nr. Speaker, I would submit that the oppositio_n is· tackling its role of providing opposition as ineptly as a Chinese baby trying to eat jelly with chopsticks.

Their miserable attempts of uncierstanding goveniment policy are only surpassed by the nastiness of the }!ember from White Bay North and some of his colleagues. Some of their tactics · are beneath the dignity of a skunk. Sir, instead of bringing a motion of non-confidence against the govennnent, in my estimation, if they had any interest in our province they would thank God for the privilege of living under a government that has done and w_ill do mote in the future than they had ever dreemed of, AN HON. MEMBER: .Hear! Hear! MR.

EVANS: Sir, it is a constant source of amusement to me to hear the prattling and gurgling from over there. Of course, we do not hear tO?_mu~I cooing from junior of White Bay North. Some of the ill-mannered bunch over here are always interrupting him and bringing on that familiar pout and the habitual gl~ce to the Chair which being interpreted or translated means, "Daddy, they will not let me 2252

H.arch 21, 1974, Tape 721, Page 2 - apb be nasty to them!" 'I hope he has no illusions of becoming a politician when he grows up. Then, between gulps (he says he eats poor little girls like the rest of the kids . eat Easter bunnies) the Member from Labrador North entertains us with subjects ranging from the Northern Lights down to such a simple matter as the price of Woodward oils. And the Member from Bonavista North rushil'lg in from his highway patrol to pick up another booster shot of blueberry wine (pardon me, juice), makes a few more entertaining comments ere departing.

It is too bad there were no volunteers,leaving him the whole Trans Canada to Port-aux-Basques. I guess most people heard of our new Minil'num Wage Act. Sir, I have no doubt that 1 in spite of the poor arguments presented, we shall survive the non-confidence motion and some day may even get on .with the regular business of this honourable House. Thank you. MR. SPEAKER: The honourable Member for Bonavista North: MR. PAUL S.THOMS: Mr. Speaker, I assure you I will not be as entertaining as the previous speaker.

In mentioning that I congratulate him because he is the only member of the government side who while speaking can hold a quorum on the government side. Everyone else seems to lose the attention of not only the government benches but also the opposition benches. Hr. Speaker, I rise in support of the amendment so ably placed before this honourable House by my colleague the Member for the District of Fogo. In his amendment, Mr. Speaker, he speaks of the absence of action on the part of the government to introduce adequate programmes to lessen the severe impact on our people of the rapidly rising cost of living.

He also mentions, Mr. Spea~er, the failure of this administration to introduce adequate programmes to reduce the extremely high number of unemployed in our province and also the failure of the administration to introduce adequate progr!lllllles to eeing public services up to an acceptable level throughout all parts of our province. Mr. Speaker, these are three specific statements of fact, 2253.

March 21, 1974, Tape 721, Page 3 - apb three specific charges · agains ·t the present administration of this province, three true statements of fact, Mr. Speaker, because the present administration is guilty en all three counts. They have not lessened the severe impact on our people of the rapidly rising cost of living. They have not introduced programmes to reduce the extremely high number of people who are unemployed in our province today. They have not introduced adequate programmes to bring public services up to acceptable levels in all parts of our prov;l.nce. Mr.

Speaker, if they were only to introduce p.rogrammes to. bring public services up to acceptable levels in some parts of our province, I am sure the Member for Fogo would not introduce this

section of this motion, The present administration, Mr. Speaker, have been very lackadaisical these last two years, very lackadaisical in their duties in carrying out the administration and governing of this province. They seem to be on some kind 2254

MaTch 21, 1974 Tape No. 722 NM _- 1 of a holiday. They failed to bring in progra111Des or they failed to meet the needs of our peoule day by day. The cost of living in Newfoundland at the present time is going far beyond the reach of approximately eighty per cent of our people, far beyond their reach, Mr. Speaker. We have unemployment in the province at the present time, the greatest number since Confederation, the greatest number, something almost close to 37,000 people unemployed in the month of February in Newfoundland. Still we hear the Premier speakin, about the 38,000 jobs that his government created.

If he created 38,000 jobs the people of Newfoundland are still searching for them. They are certainly not within reaching distance of the unemployed people of Newfoundland today. We have people in all walks of life across our Province of Newfoundland and Labrador, of all trades,bar none, all trades, who are looking for employment. ·Mr. Speaker, the jobs are just not there and the reason the jobs are not there is because of the lack of programmes by this present administration. We, in this honourable House, Mr.

Speaker, have been here for something like seven weeks sitting and only today, after seven weeks sitting,did we get some bills through committee stage. These bills, Mr. Speaker, did not eveTI warrant comment from members of the opposition because they are unimportant, insignificant bills, nothing concrete, no proposals, nothing to take care of the 37,000 people unemployed, nothing, not a thing, Mr. Speaker.

Still this administration, the Premier will go on radio and other ministers and they will state about all the wonderful things the Tory Government have done for the people of Newfoundland, all the wonderful things and the people of Newfoundland are still today searching for the wonderful things that they have done. No one can come up with one positive thing that this administration have done in two years, not a thing that could be considered for the benefit of Newfoundland. 2255

March 21, 1974 Tape No. 722 NM - 2 Oh yes, we tore the steel mill out of Donovans. We shipped that off to Toronto somewhere. AN HON. MEMBER: Blueberry wine. MR. THOMS: You took away the mothers~ allowance. MR. F. ROWE: Who reduced the students' aid? MR. THOMS: Who reduced the students' aid? Who tried to camouflage .a welfare programme with federal.family allowance, who tried to do it? Who set up the rules and regulations to take thousands out of welfare and let them starve to death? Who did that? The Tory Government and continuing to do so.

We have more people in Newfoundland today hungry and without sufficient clothes and without sufficient housing than ever before we had in our history, ever before. Every day welfare officers are told to, "Cut back on your welfare payments," the only way they can do it is to take people off of welfare. There are no jobs for them. They do not qualify for unemployment, so what happens? I have them in my district and you have them in yours who today cannot find a bite to eat. It only happened back in Tory time in 1932 to 1934 and it has happened again today. But, Mr.

Speaker, do not worry, the people of Newfoundland will take care of this in due course. It will be another forty or eighty years before a Tory Government will ever see the government benches of this House of Assembly again, once the people get fair play. Yes, Mr. Speaker, it is a disgraceful thing when you consider the problems of our people today, 37,000 people unemployed, no jobs, -no income.

Then you find the government turn!~ over approximately $700 million a year, more money than ever this province turned over annually before. we find that the present government this last two years have borrowed astronomical amounts, larger amounts than ever the province borrowed before. The fiscal year 1972-1973 was 2256

March 21, 1974 Tape No. 722 NM - 3 our greatest borrowing year - $188 million and I believe this present fiscal year 1973-1974 we sre up somewhere in the vicinity of $125 million. Now, Mr. Speaker, with astronomical amounts of funds at hand such as this I am sure any government could come up with some kind of programe to help out the unemployed people of our province, In my speech here just three weeks ago I placed a proposal before government and I called upon the Premier at that time to introduce a work progra11111e in Newfoundland, a winter works programme, something similiar to the Federal LIP Programme. Mr.

Speaker, to that proposal I got a dead silence, not a word Mr. Speaker, not a word, nothing done, 36,000 people at that time unemployed in Newfoundland a~d no one on the govermaent benches willing to do a thing, nobody. They have a very careless, carefree attitude. They seem careless about the welfare of our people, All they seem to care for,as long aa they are getting a bite to eat, a bit of clothes to wear and a shelter over our heads, let John Joe do for himself. This, Mr. Speaker, is a disgraceful s_ituation. A government who could not care less about the welfare of the people of Newfoundland, 2257

March 21, 1974. Tape 723 RH - 1 a government that seems to be bent on doing nothing during its term of office because nothing in two years they have done, absolutely nothing. Mr.

Speaker, the unemployed people of our Pi:ovince will not forget the careless attitude cf this present Government and I am sure not only the unemployed but alsc the employed because if the present trend con­ tinues and there is every indication that it may, then we can look for­ ward to in the winter cf 1974-75 to approximately 40,000 people unemploy­ ed during the winter months and with no programme. from Government to offset this drastic unemployment situation. Mr.

Speaker, in Newfoundland there are many projects that can be brought forward, mar.y projects, that is by a sensible and a same government, a governmer.t that is willing to do something for the people, a government that cares for the people, that cares for the welfare of the people. Any government, Mr. Speaker, in this category, can ~ring forth programmes that will drastically reduce the numbers of unemployed in Newfoundland. Mr. Speaker, I again call upon the Premier_ to introduce a programme, something similar to the LIP pro.iects of the Federal Govern­ ment, to put people to work. Mr.

Speaker, if you look throughout the towns of the Pr.evince of Newfoundland, you can find ample excuse to place many thousands of our people to work in the ~inter months. There are many thini;i:s that have to be done in almost every town, every municipality and our municipalities are crying for help from government to have various jobs done within their boundary. Mr. Speaker, I believe that this government should immediately launch into an overnight project, overnight programme to bring many of these unemployed persons away from the unemployment office to be gainfully employed • . Mr.

Speaker, the Province of Newfoundland, the people of Newfound­ land all down through the years have been considered a backward. race as far as public services are concerned. We in Newfoundland, even today, do not have a standard of public services which we should have in the 2258

March 21, 1974. Tape 723 RH - 2 year 1974. Neither do we have a standard that can be compared with other provinces of Canada or states of the United States and Mr. Speaker, this is regretful. The previous administration was on a proper and righteous path when it undertook to improve the standards of our people, when they undertook to improve the standards of public services. Mr. Speaker, for example,in municipal affairs: In 1973, there were four new water and sewerage projects started throughtout the whole Island of Newfoundland by this Governments, just four, Mr. Speaker, just four. Mr.

Speaker, this to me is astounding, how any minister can only justify starting four water and sewerage projects in this Province when literally, Mr. Speaker, we must need possibly six or seven hundred. How, in the name of heaven! are we ever going to keep up .with . the rest of Canada or any other people unless we introduce a massive programme of supplyinR our towns with proper water and sewer facilities? Almost every council in this Province, Mr. Speaker, is after help from Govern­ ment to have water and sewer projects in his town implemented. Mr.

Speaker, delegation after delegation have made a number of trips to St. John's,to the minister's office, to the deputy minister's office,and all with the same reaults - they have not any funds. Then, Mr. Speaker, we look at the budget and we see almost $7nn mi]lion being spent by the Provincial Government and we wonder why, what is happening. Is that department falling apart? It is certainly falling down on the job. It is certainly not doing the job it was set up to do. It is certainly not helping out the municipalities of our province in overcoming the situation and 2259

March 21, 1974 Tape 724 PK - 1 things that we have today in the province. Mr. Speaker, I have submitted to this House time and time again petitions and petitions and more petitions from different municipalities in my own district. Mr. Speaker, there has been no concrete evidence that the government intends to act on any of these. Most of these projects, Mr. Speaker, are urgently needed, urgently needed. I have one town at the pres~nt time, at this very moment, which does not have one drop of water to drink, not a drop of water for human consumption . Still, Mr.

Speaker, when you come to the minister the only answer that you seem to get is that no funds are available. This, Mr. Speaker, is a very good sign of a very incompetent administration when it fails to supply funds for the basic necessarv needs for the towns of our province. Mr. Speaker, from observing t:he number qf petitions presented to this honourable House from all over the Province of Newfoundland and Labrador,apparently the same condition applies. I have known many other delegations from various districts who travelled to the minister's office here in Confederation Building and seem to get the same reply.

The reply is,"There are no funds availab-le.• Well, Mr. Speaker, the present government always seems to have funds available for ether things that are not necessary, other than the basic essentials of life today, A proper water and sewer system in every town of Newfoundland is essential today, most essential. Mr. Speaker, it is of the utmost importance that this administration introduced some massive nrogranmes to supply our towns with these basic essentials. Water and sewer, Mr. Speaker, today is a must. It is no longer a luxury. It is a must. Mr.

Speaker, many of our people are becoming very distrubed, very distrubed indeed that this government are not paying proper attention to t·he needs of its people, especially to the needs of its people concerning water and sewer services. No government, Mr. Speaker, in history have paid so little attention to the demands of our people than this present administration. This, Mr. Speaker, is why I wholeheartedly support the amendment to the Address in Reply. The time is overdue, long past and this government should wake up 2260

March 21, 1974 Tape 724 PK - 2 to reality, wake up because it has a job to do -it is not suppose to go to sleep down in the office there in Confederation Building, it is not suppose to slumber during its term of office, it is suppose to show some life, to be alive, to listen to the people and to do all in its power to supply the needs of the people. That, Mr. Speaker, is not doing today, it is definitely not. Mr. Speaker, not only are the government not supplying our various towns with adequate water and sewer systems but I believe, Mr.

Speaker, the present government have almost condemned the programme of the previous administration which went on a massive road programme in Newfoundland. Under the previous administration, Mr. Speaker, in my district we got a certain amount of road reconstructioned every year. We did not - get pavement every year, we normally got it every second year. The recon­ struction was carried out every year at least some and we could look forward to the end, to the day when all of the roads would be reconstructed and paved, t~eend was in sight, Mr.

Speaker, the end was in sight 1 until the dark Tory clouds rose on_·the horizon. Then, Mr. Speaker, all construction stopped for two years, -two long years, not one cent of reconstruction in my district, not one cent, Mr. Speaker. Mr. Speaker, the only pavement we received was the $600, 000 grant from the federal government under its DREE programme last year. With that exception,there will be no road work. Maybe, Mr.

Speaker, the Department of Highways ~ or Highways and Communications,should be transferred to Ottawa because it is quite obvious that this administration are not willing to undertake the duties of carry out the proper reconstruction and paving of our highways. This administration is very lackadaisical, very lazy in its duties as far as highway construction is concerned in Newfoundland. It fails, Mr. Speaker, badly, it fails to have - it seems to have no highway programme whatsoever. Mr. Speaker, our people 2261

March 21, 1974 Tape 725 IB-1 have sat idly by for two years. They were willing to give this adm1.nistration a chance, willing to give it a chance to set up its plans and its priorities, !.et it reconstruct its government, let it study all of the various reports but, Mr. Speaker, the time is now past for all the planning and setting up of priorities. If they have not got all of their planning done now, they will never have it done. If they have not got their priorities set, they will never have any and it is quite obvious they do not have any. Mr.

Speaker, in the past we have seen small pockets of our population who have been very hostile when they did not acquire the services that they needed. Mr. Speaker, the present attitude of this administration is really only nourishing such a hostile attitude among the rest of our population. Our people are not going to wait. The time is now. The time has come. We want action now. We want highways now, not ten years from now. Twenty-five or thirty per cent of us will be dead then. We want it now. We need action now. This was the administration who were going to have all the action when it obtained power.

They were going to build .roads here, there and everywhere. I can remember the helicopter dropping down in Hare Bay in the 1971 election, They were going to pave roads left, right and center. Mr. Speaker, today we have not seen one cent of their pavement or one cent of their reconstruction, Nothing, a complete blank for two years, Mr. Speaker. That is why this motion of nonconfidence is before the House. They is why it is a good motion and a just motion and that is why, Mr. Speaker, every member of this assembly should support it. I am positively sure, Mr.

Speaker, that if this amendment went before the people of this province that you would have ninety per cent of our p~ople who would suppor~ it today because they fail to see anY, positive steps that this administration have taken in two years. Nciw, Mr. Speaker, the government at this present time is preparing 2262

March 21, 1974 Tape 725 IB-2 its budget. It was supposed to have been brought down last Friday but I believe a little thing like BRINCO got in the way. Mr. Speaker, we are expecting that budget very soon and I trust that as far as highways are concerned and water and sewer are concerned that it will be a very liberal budget because our people will not be satisfied unless it is a very liberal budget, supposing it is brought in by a Tory Administration. Mr. Speaker, unless their is in that budget an adequate highways progra11D11e for this province, then, Mr.

Speaker, we are going to be into it for a rough session during the summer months of this year because our people will not stand idly by and watch govemment spend money wastefully when they have to go over dirt roads continuously.

In the winter, in my speech over a year ago I asked the Minister of Highways if he would at least pave the roads through the settlements in my district, just pave the roads through the settlement so that a poor lady when she hangs out her clothes, she will not have to take it in a half hour after and wash it again, so that you can get some decent air in our communities to breath where right now your have to breath in dust all summer long. To that request, Mr. Speaker, I got a dead silence, not even a smile came on the minister's face. He was like someone in a trance. He never even noticed me.

No response whatsoever, Mr. Speaker, none. This, Mr. Speaker, is one of the reasons why this amendment is before the House, because the Minister of Highways, Mr. Speaker, is failing in his duty in that portfolio by not introducing a proper roads programme in Newfoundland, by not listening to the needs of our people and supplying our people with the proper roads through their communities. Mr. Speaker, while this motion may be introduced by a member from a particular district, it indeed represents the feelings of the vast majority of the people of Newfoundland. If the people of Newfoundland, Mr.

Speaker, could only have their way today, I can assure you that this amendment would be definitely carried in this 2263

March 21, 1974 Tape 725 honourable House. Mr. Speaker. some two years ago the people of Newfoundland were bein.g rapidly drawn into a position where almost every wage earner in Newfoundland fo1111d himself in a position where he was IB-3 capable of bringing enough dollars into his hOUII! so he could adequately supply his family with the basic needs and necessities of today's family life. Our people were earning 2264 .•

March 21, 1974 Tape no. 726 Page 1 - MW enough money and for the first time in many years, they were beginning to enjoy this life of ours. Then men were earning good dollars. The dollar was worth something then, Mr. Speak.er. The dollar at that time just two years ago could buy much more than it can today. Mr. Speaker, since this Tory Administration have taken office the cost of living has gone out of the reach of approximately seventy-five per cent of our people. Seventy-five per cent of our people today, Mr. Speaker, are finding the pinch of the cost of living. The dollar today no longer buys as much as it did.

Mr. Speaker, as a matter of fact on many items, the cost of these items has doubled and tripled in two years. Hr. Speaker, if the present trend continues, instead of a wallet in a couple of year's time, Mr. Speaker, every person here will need a wheelbarrow to take enough money down to the grocery store to get a day's groceries. Now, Hr. Speaker, what have this government done to offset the cost of living? They have done nothing._ They have done not a thing. No person in Newfoundland today can point to one solid thing that this government have done to aid our Newfoundland people in the cost of living.

Prices all along the line, Mr. Speaker, have gone sky high, out of all proportions. Just let me quote for you, Mr. Speaker, S(Jlle of the prices in our grocery stores in Central Newfoundland as they were in January of this year. The world famed Newfoundland steak, bologna, two years ago was forty-seven cents a pound. In January, it was ninety-eight CEnts a pound and today it is one dollar and ten cents. It is ridiculous, Mr. Speaker. It is over a hundred per cent increase.

Even the famous salt meat, which is only sold in Newfoundland or predominantly sold in Newfoundland and in Canada, two years ago was sixty-two cents but today it is one dollar and twenty cents. Canned corned beef is- the same thing, the same price. Sardines, Mr. Speaker, just imagine little sardines, we have millions of them around the Island 6f Newfoundland, which were fifteen cents two years ago, Mr. Speaker, are sixty cents todav. That is a three hundred per cent increase. It is ridiculous! 2265

March 21, 1974 Tape no. 726 Page 2 Mr. Speaker, the basic easentials for every family are -milk, flour and sagar. Sugar, Mr. Speaker, two years ago was something like twenty cents a pound but today it has gone out of all proportions, it is something like fifty cents a pound. Today in St, John's for a five p.ound bag of sugar you pay two dollars and thirty cents I. believe it is at t.he present time. Mr. Speaker, you cm go right down the line. item after item. The price has risen out of all proportions. Even the basic essentials today, Mr.

Speaker, have gone out of the range of the ordu,.ary wage earner of o\lr province. Still, Mr. Speaker, our government se• quite happy to heave to and to do nothing, you would almost think.

}!arch 21, 1974, Tape 727, Pagel -- apb The only way that I can describe the present government is to compare them with the schooner of my grandfather when he used to tie her up for the fall. This government, Mr. Speaker, is tied up for the rest of time. They are going to have an idle winter, an idle term of office. Mr. Speaker, while they are playing around doing nothing our people are on the receiving end of a bad thing. Our people are suffering. Hr. Speaker, the time will come and when it comes this present government will surely know its arrival. Mr.

Speaker, the cost of milk at the present time in Central Newfoundland is fifty-two cents a quart. Fifty-two cents for a quart of milk. Mr. Speaker, what is the present government doing about it? Mr. Speaker, two years ago, for example, we had forty dairy farmers. Forty dairy farmers, Nr. Speaker, who were supporting Central Dairies, supplying them with milk. Today we have only twenty-eight. The reason for this is that eleven farmers have given up farming altogether. Why have they given it up? Because the cost of operating a farm today, Mr.

Speaker, is gone out of all proportions • They are _failing to make it pay, they are failing to make a dollar, they are failing to make a decent wage for their families. Hr. Speaker, what is the Minister of Forestry and Agriculture doing about it? Nothing. Not a thing. The dairy producers have been trying to get the attention of the Minister now for over a year, trying to persuade him to introduce a proper progra111111e for the province so that our dairy producers can operate economically and within reason. No, Mr. Speaker, this government have ignored them, ignored them completely.

They failed to come to grips with the pr?blem. Mr. Speaker, at the present time in Newfoundland we are importing forty per cent of the fresh milk consumed. Forty per cent. Of course we are importing one hundred per cent of condensed milk, but we are importing forty per cent of the fresh milk consumed by our people. Mr. Speaker, if.this trend continues 2267

March 21, 1974, Tape 727~ Page 2 - apb our dairy farmers can only bold out another two years. If the present trend continues we will end up in Newfoundland with not one dairy farmer. Mr. Speaker, that is quite an accomplishment for this goverru11ent, quite an accomplishment . indeed. Hr. Speake r , in Newfoundland we need a good feed progral!IIDe especially for ouc dairy farmers but not only for our dairy farmers. for our hog producers, for our chicken industry and for the broiler industry. ?lo. Mr. Speaker, the presen t government seems to °:>every lackadaisical in their duties.

They could not care less ~hether every farme r in the province leaves and closes yp shop or not. We need a grains feed progra!lll!\e in 2268 .•

March 21, 1974. Tape 728 RH - 1 Newfoundland, Mr. Speaker, and we can do it. In Newfoundland you cannot grow all the grains that are necessary for our agricultural production but you can grow some of them. If this Government, Mr. Speaker, would introduce such a programme to grow at least some of the grains, this would drastically reduce the cost of feed to our dairy producers, to our hog producers and to our broiler producers and any other branch of agriculture. Only in this way, Mr. Speaker, can we come to grips with the problem of supplying our farmers with adequate feed for their catt l e.

In turn they suoply our people with adequate milk for consumption and at the same time, Mr. Speaker, this can, if not decrease the price, it would certainly place our farmers in a oosition where it would not in­ crease the price of their produce. This I believe, Mr. Speaker, is very very important to our people today . At the present time our farmers are receiving $12.50 a hundred­ weight for milk and the big problem with our dairy producer today. Mr. Speaker, is the problem of expansion.

They cannot and I repeat, they cannot get the Provincial Government interested enough to give them any . substantial heed as far as expansion in the dairy farming is concerned. We need, Mr. Speaker, in Newfoundland more people in dairy pro­ duction. We need a crash prograllD!le to persuade more of our young people to enter the agricultural field. We need a programme whereby our present farmers can expand and in order to keep up with demand, they must expand rapidly. Unless, Mr. Speaker, our present Government is willing to take on themselves this job, the dairy industry in Newfoundland looks verv ~rim indeed.

As a matter of fact, another two or three years we will not have a dairy industry. This, Mr. Speaker, is one of the reasons why the honourable member for Fog~ brought in this amendment. This is why we have no con- fidence in this Government. Because every day, Mr, Speaker, in the op- position office we are get-ting various p;roups coming to us by letter, by phone and by person and expressing their concern b~cause various ministers of this Government are not taking an adequate interest in the various aspects of agriculture and industry in this Province. Unless this Government, Mr.

Speaker, wake up to the realization that it is responsible for 2269

March 21, 1974 Tape 729 PK - 1 most of these people that it is responsible for the production of food to our people then, Mr. Speaker, I would say we had a very 1ncompetent administration, a very incompetent administration, one, Mr. Speaker, that should not hold office today, most definitely. Mr. Speaker, you can go down the line not only in the dairy industry, the hog industry- the previous Liberal Administration started a huge project on the West Coast, Mr. Speaker - AN HON. MEMBER: Inaudible. MR. THOMS: A big one at Donovans also, They destroyed that one, millions of dollars vent down the drain for nothing.

If that is what you call planning and priorities, Mr. Speaker, destroy what you have, tear down your bridge before you cross it, that is the policy of the present ministers, Mr. Speaker. Mr. Speaker, the llroject on the West Coast was halted just because it was a Liberal project. That is all. No other reason. The ministers cannot come up with any other reason other than it was started by the previous Liberal Administration and they looked at it and they hemmed at it and they hawed at it for months and months and months. Finally after a long while I believe they are working at it again. Maybe, Mr.

Speaker, maybe one of these days they will have the official opening. Maybe this will give the farmers of the West Coast a chance to earn a decent living again. Mr. Speaker, a good project that was started by the Liberal Administration was hung up for over one year and no reason whatsoever given, no reason, Mr. Speaker, but then when they took a second look at it and they brought in all of their advisory committees and sub-conmittees it was proven beyond a doubt that it was