Ontario Hansard — 15 November 1977 (31st Parliament, 1st Session)
1977-11-15
Ontario — Debates (Hansard)
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November 15, 1977
31st Parliament, 1st Session
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Hansard Transcripts
Hansard Transcripts
L050 - Tue 15 Nov 1977 / Mar 15 nov 1977
NEWSPAPER REPORT
STATEMENTS BY THE MINISTRY
RECREATIONAL TRAILS
ORAL QUESTIONS
REED PAPER
HYDRO CONTRACTS
OHIP OFFICE CLOSURE
PROPERTY TAXATION
BAR ADMISSION COURSE
DAY CARE
HARTT COMMISSION
CORRECTIONAL OFFICERS
HOSPITAL CUTBACKS
LANDLORD-TENANT DISPUTE
THUNDER BAY COURTHOUSE
NON-PROFIT HOUSING
TOW TRUCK LICENSING
RECOVERY OF HYDRO MONEY
HOSPITAL CUTBACKS
VISITORS
OHIP OFFICE CLOSURE
REPORTS
STANDING GENERAL GOVERNMENT COMMITITEE
STANDING SOCIAL DEVELOPMENT COMMITTEE
STANDING PROCEDURAL AFFAIRS COMMITTEE
MOTION
INTRODUCTION OF BILLS
FARM PRODUCTS MARKETING AMENDMENT ACT
MILK AMENDMENT ACT
PUBLIC HOSPITALS AMENDMENT ACT
ONTARIO COMMISSION ON WASTE MANAGEMENT AND RESOURCE RECOVERY SYSTEMS ACT
CITY OF CHATHAM ACT
ORDERS OF THE DAY
TOWNSHIP OF TAY ACT
CIRCLE R BOYS RANCH ACT
FULLER-AUSTIN OF CANADA LIMITED ACT
BOROUGH OF ETOBICOKE ACT
MATOL HOLDING LIMITED ACT
NIAGARA INSTITUTE FOR INTERNATIONAL STUDIES ACT
GARNET HOLDINGS LIMITED ACT
STANLEY STARR LIMITED ACT
KEDNA ENTERPRISES LIMITED ACT
INCOME TAX DISCOUNTERS ACT
HERITAGE LANGUAGE PROGRAM
INCOME TAX DISCOUNTERS ACT (CONTINUED)
MUNICIPAL ELECTIONS ACT
The House met at 2 p.m.
Prayers.
NEWSPAPER REPORT
Hon. W. Newman: Mr. Speaker, I wish to rise on a point of personal privilege regarding an
article that appeared in the York-Durham
section of the Toronto Star yesterday wherein a member of this Legislature misled the press.
The
article contained remarks attributed to a member of this Legislature, and I spoke with the reporter yesterday who confirmed that the statement contained in the
article was, in fact, made by the member for York Centre (Mr. Stong). I am sorry he is not in his seat today. He was notified by my office that I would be rising on this point of privilege.
The
article reads in part: “Al Stong, MPP York Centre, who sits on the Justice committee, said in an interview that the private bill regarding Georgina is being sponsored by Bill Hodgson, MPP York North. Stong said that he is concerned about whether or not the bill should proceed when a court action is pending and said that the MPP for the area, Bill Newman, MPP Durham-York, should be called by the committee. Stong said ‘Newman is not presenting the bill because I suspect he wanted to stay away from it because it is so controversial. Although Newman is the Agriculture minister, he could still present a private member’s bill like any other MPP’, Stong said.”
Mr. Speaker, I further checked again with the Clerk’s office and, as members of this House know, as a cabinet minister I am not permitted to introduce a private bill. The member for York Centre, who is also a member of the bar and a member of the Justice committee, might have checked his facts before providing the reporter with misleading and incorrect information. Not only did he provide incorrect information, he took it upon himself to present what he thought was my position. In doing so, he has cast aspersions on my character.
Mr. Deans: Oh, sit down for heaven’s sake.
Mr. Martel: You will go up in the eyes of everyone, Bill.
Mr. Deans: This is an abuse of our time. Boy, are you getting thin-skinned in your old age.
Hon. W. Newman: Mr. Speaker, I have been inundated by calls from my constituents and the press requesting a clarification, and I have tried to set the record straight. Unfortunately, this
article has already appeared and it would be virtually impossible to have it corrected before the private member’s bill is heard this Thursday, as the weekly papers have already gone to press.
I would ask that the member for York Centre produce an apology for saying what he said in the York-Durham
section of the Toronto Star, which was incorrect.
Mr. Nixon: Are you supporting the bill or not? What is your position?
STATEMENTS BY THE MINISTRY
RECREATIONAL TRAILS
Hon. F. S. Miller: Mr. Speaker, today I’m tabling the final report of the Ontario Trails Council. Earlier today I arranged for the Leader of the Opposition (Mr. Smith) and the leader of the New Democratic Party (Mr. Lewis) to receive copies shortly after the report was presented to me.
The Ontario Trails Council report is the result of an order in council two years ago which created a citizens’ advisory committee to look into the issues surrounding recreational trails and to make recommendations to my ministry for an Ontario trails program, including research requirements for the program, legislative changes required, a policy framework and an implementation program which would describe the roles of all levels of government, conservation authorities, trail clubs and other interested groups.
The report presents 90 recommendations which call for some form of government action. The public responded very well to the efforts of this council. Over 300 written briefs were presented by interested groups and individuals at the 13 public meetings of the Trails Council. I understand that more than 2,000 requests have been received for a copy of this report.
I want to compliment the members of the Ontario Trails Council and the council chairman, Mr. William Coates of Guelph, who is present in our gallery this afternoon, for a job well done. Their report has not only posed some interesting questions for the government, but provides a wealth of knowledge on the issues of trail use and trail users within the province.
My ministry will be reviewing the report and co-ordinating the government’s response.
ORAL QUESTIONS
REED PAPER
Mr. S. Smith: A question to the Minister of Natural Resources, Mr. Speaker. Can the minister confirm reports that the Reed Paper proposal is now a dead issue, that the Reed company has decided not to go ahead with the building of its proposed plant, irrespective of the findings of the Hartt inquiry? Can he, in commenting on this, tell us, if that is a fact, whether he has any proposal for some other plant, or whether he will make the timber available in that area for other existing plants? Exactly what are his proposals with regard to that 19,000 square miles or so of timber?
Hon. F. S. Miller: Mr. Speaker, I have not been told by the Reed corporation that it does not intend to proceed. I have read, as I’m sure others have, a copy of a statement made yesterday by its senior vice-president before the Hartt commission. I have no inside information. I have talked to the president of the company and I have not been told by the president of the company that it does not intend to go ahead.
Mr. Lewis: Which president?
Hon. F. S. Miller: Mr. MacIver. I want to tell the member I am allowed, as anyone else here is allowed, to read a statement of that kind and come to my own conclusions. That statement said it did not think the project was economically viable today. I assume that means the company may not wish to proceed.
Mr. Martel: Sounds like blackmail.
Hon. F. S. Miller: Since we had at least two or three years of hearings under the Hartt commission, we had the Environmental Assessment Act, if applicable, to consider, and most certainly we had environmental matters to consider, design and a whole series of things, I would say that even if that company were proceeding today with its intent, as it was originally supposed to do, it would be several years before anything would actually be started. Markets change dramatically. We are going to do our homework in this ministry as agreed.
Mr. Lewis: Good.
Hon. F. S. Miller: We will do the forest inventory. We will have the information available. Mr. Hartt will be proceeding with his study. When all those things terminate, if there is a willing person or company and the conditions are right, I certainly will be looking for a person to do it.
Mr. Lewis: Pity we didn’t start that way from the outset, isn’t it?
Mr. S. Smith: By way of supplementary: While the minister is looking at this proposal afresh, given these developments, will he be talking to the owners of existing mills and those who might be interested in smaller-sized, more manageable contracts, rather than one contract for the entire area of timber? Will he be able to report to the House at some point on the feasibility of developing that resource, but doing so with great care for proper management, as might be maximized in having smaller areas rather than the whole 19,000-square-mile site?
Mr. Lewis: That is what the Hartt commission is doing.
Hon. F. S. Miller: Mr. Speaker, I spent a good part of this morning talking to the mill operators of this province. My immediate problem is to keep them in business with their existing mills. Let us not lose track of the fact that the world is overproducing pulp and paper at this present time. We have lumber mills in Ontario closing down in some places today simply because they can’t dispose of the chips that are being produced as pulp production is down. So we have an immediate short-term problem very similar to that in the metals business. In the long run, I can only tell the hon. member that it is unlikely any new pulp mill could survive on less than the product of the entire range.
Mr. Foulds: Supplementary, Mr. Speaker: Did it cross the minister’s mind in any way, shape or form, that the statement by Reed and the campaign that seems to be escalating in the newspapers with regard to the tough times the pulp and paper industry is facing is part of a pressure game to persuade the ministry to cut back on proper forest management?
Hon. F. S. Miller: Mr. Speaker, luckily I don’t have a Machiavellian mind like my colleague opposite. I honestly do believe the pulp and paper industries are in trouble today because of world oversupply.
Mr. S. Smith: Of course they are.
Hon. F. S. Miller: I honestly do realize that Reed Paper is losing $20 million this year.
Mr. Foulds: How much did they make in 1973?
Hon. F. S. Miller: It’s always “What did they make before?”
Mr. S. Smith: Socialist paranoia.
Hon. F. S. Miller: I do not believe that this is a negotiating move by the company to force our hand.
HYDRO CONTRACTS
Mr. S. Smith: Mr. Speaker, a question for the Minister of Energy, if I might: Can the minister explain how it was that Ontario Hydro authorized commencement of work for Bruce heavy water plant D on January 16, 1974, and work was carried on since January 1974. In view of the fact that the then Minister of Energy’s (Mr.
McKeough) policy statement of July 1974, some six months after work began, stated, and I quote, “The government has deferred decisions regarding the Bruce heavy water plant D pending further recommendations of the Ontario Energy Board expected later this year,” and in view of a statement in the Legislature in April 1975 by the previous minister (Mr. Timbrell) stating that the government was “committing construction on the plant now” -- there was an announcement of construction at that time, how do things get started and how are they approved between Hydro and the Energy ministry?
Hon. J. A. Taylor: Mr. Speaker, the Leader of the Opposition asked a series of questions. The chairman of Hydro has now responded to those questions in writing and they have been delivered to the Leader of the Opposition.
Mr. S. Smith: Yes, that’s a fact. It’s because of the fact that I have these that I’m asking a supplementary question: Since I am told by the chairman of Hydro very clearly that Bruce heavy water plant D was authorized for commencement of work on January 16, 1974, and yet the former Minister of Energy (Mr. McKeough) announced deferring of that decision five or six months later and then the previous minister (Mr. Timbrell) issued an announcement in 1975 of the beginning of that plant, how come all these announcements are being made afterwards when work started in January 1974?
Hon. J. A. Taylor: I think that’s a matter that the Leader of the Opposition discussed with the chairman of Ontario Hydro.
Mr. Nixon: You are supposed to be in charge of policy.
Mr. Kerrio: Why don’t you say you can’t answer the question?
Hon. J. A. Taylor: If there is further detail or explanation that he requires in addition to those conversations and in addition to the very lengthy response to the -- I believe it was 12 questions --
Mr. Deans: Why don’t you just say you don’t know?
Hon. J. A. Taylor: -- then I’m sure that he’d be happy to supply that. If the hon. member wishes me to pursue that or if the Leader of the Opposition wants higher profile in connection with this matter and wishes to take it up with the select committee, I’m sure he can do that as well.
Mr. Deans: But you should know.
Mr. Roy: It is obvious that you don’t want to answer.
Mr. Lewis: Supplementary: Who has the senior political status in this province around matters dealing with energy? Is it the chairman of Hydro or is it the minister?
[2:15]
Mr. Warner: Hydro runs the show.
Hon. J. A. Taylor: Mr. Speaker I think that the leader of the third party should not confuse energy matters with --
Mr. Lewis: With Hydro, I know that.
Hon. J. A. Taylor: -- a specific corporation dealing only with the area --
Mr. Sargent: Answer the question.
Hon. J. A. Taylor: -- of electrical energy which has its powers and its duties --
Mr. Warner: Why don’t you do us all a favour? You don’t know what you’re doing -- you should resign.
Hon. J. A. Taylor: -- explicitly expressed in
an Act of this Legislature.
Mr. Lewis: To whom does the chairman of Hydro report?
Mr. Foulds: The minister doesn’t seem to know.
Hon. J. A. Taylor: The member should know that. Of course he reports to the Minister of Energy in this House as always, absolutely.
Mr. Lewis: He reports to the minister?
Mr. Speaker: Order, please. The supplementary has been asked and answered.
Mr. Reed: Supplementary: Does the minister not feel that the people of Ontario deserve an answer? That’s why this question was asked in this House.
Mr. Warner: The chairman of Hydro isn’t here.
Hon. J. A. Taylor: If the member is suggesting that his curiosity manifests the curiosity of the people of Ontario then --
Mr. Reed: If you don’t know, then say you don’t know.
Hon. J. A. Taylor: What do you mean?
Mr. Speaker: Does the member want an answer to the question?
Hon. J. A. Taylor: I wish the member would get together with his leader. If he got together with his leader and reviewed all of that material, including the two contracts and the answers to the questions, he wouldn’t be asking these questions today in the Legislature. He has all of that information.
Mr. Lewis: I have a question related to this. Does the minister not realize that in the succession of questions and answers, what is emerging is not so much what happened at site B or at site D but who has the final authority to determine energy policy in this province? Does he not realize that by his answers he seems to be surrendering to the chairman of Hydro an authority which vests in the Legislature and in the minister himself?
Mr. Warner: Right on, he runs the show.
Hon. J. A. Taylor: Mr. Speaker, the leader of the third party is obviously confusing the overall energy policy of this province --
Mr. Lewis: No, I’m not.
Hon. J. A. Taylor: -- with the matter of two contracts at Bruce.
Mr. Makarchuk: Are you taking mind-diminishing drugs?
Mr. Warner: We are going to buy the minister an electric chair.
Hon. J. A. Taylor: There’s no question about that. It’s not a question of surrendering energy policy and the member knows it.
Mr. S. Smith: I have a final supplementary. Regarding this contract for heavy water plant D, can the minister explain why it took until November 3 of this year to sign that contract, when in point of fact it differs in almost no way -- only in the fee and the
schedule -- from the actual contract signed over two years ago for B? Why the delay? What has been the resistance in getting this contract signed? Why has it taken over a year and a half to actually get this contract for D signed when, in fact, it differs in no detail at all from B?
Mr. Deans: Bette, you’d better start helping him again. He is getting in trouble.
Hon. B. Stephenson: Oh, I doubt that.
Mr. Lewis: You weren’t told.
Hon. J. A. Taylor: Again, Mr. Speaker, this is precisely the question that the Leader of the Opposition asked the chairman of Hydro.
Mr. Deans: You don’t know.
Mrs. Campbell: Why don’t you get the chairman of Hydro in and ask him?
Hon. J. A. Taylor: He explained the process. As a matter of fact, he explained the history --
Mr. S. Smith: I asked that question of the chairman.
Hon. J. A. Taylor: -- the commercial practice in terms of going from A, which the same company built, to B, which is precisely the same type of plant, and then on to D.
Mr. S. Smith: I know the answer to that.
Hon. J. A. Taylor: If the member is looking for publicity and high profile why doesn’t he --
Mrs. Campbell: Don’t you start.
Mr. Speaker: Order, please. This line of questioning is getting us nowhere.
Mr. S. Smith: That’s for sure.
Mr. Deans: The line of answering is getting us nowhere.
OHIP OFFICE CLOSURE
Mr. Lewis: May I ask a question of the Minister of Health? In view of the quite remarkable response within the Windsor community of disappointment, frustration and anger to the precipitate closing of the OHIP office, will he reconsider his decision?
Hon. Mr. Timbrell: Mr. Speaker, it is not a total closing and, no, I’m afraid I will not reconsider.
Mr. Bounsall: Supplementary: How can he possibly, in the name of saving dollars, close down that Windsor OHIP office and shift the claims processing to London when in the year 1976-77 the Windsor office processed 40,000 claims per employee and the London office processed only 27,000 claims per employee, and particularly inasmuch as the field services for both Lambton and Kent were done out of the Windsor office in addition?
Mr. Peterson: Stop picking on London, right now.
Mr. Speaker: The question has been asked.
Hon. Mr. Timbrell: Mr. Speaker, perhaps I could set the record straight: In 1976-77 the Windsor office processed two million claims with a staff of 51. The London office processed 4,800,000 claims with a staff of 128. That does not work out to be a difference of 27,000 to 40,000. The Windsor office has a slight edge but it is just that -- a slight edge.
Mr. Ruston: It is more efficient.
Hon. Mr. Timbrell: Given the savings of $500,000 that will accrue in the move to London, the staff in London will be able to handle the volume very well for that entire part of southwestern Ontario.
Mr. B. Newman: If the minister is going to use such an argument, why doesn’t he close up other offices in the province, concentrate all of his facilities, all of his claims here in the Toronto area, and save a lot more money?
Mr. Deans: Don’t suggest that. He will.
Hon. Mr. Timbrell: I will be pleased to take that suggestion from the official opposition as notice.
Mr. Deans: That wasn’t very clever.
Hon. Mr. Timbrell: We don’t think that it would work, though. As you know, we are trying to decentralize out of Toronto.
Mr. S. Smith: It’s a logical extension of what you are doing in Windsor.
Hon. Mr. Timbrell: Consistency and inconsistency, from the member’s point of view, depends upon what he wants to do with it.
Mr. Speaker: Just ignore the interjections and answer the supplementary.
Hon. Mr. Timbrell: I would be pleased to, Mr. Speaker. Thank you. We are going to move the head office of OHIP out of Toronto. This is not a centralization. It will still be decentralized away from Toronto but, for southwestern Ontario, effecting some savings. As I recall, during debates that were going on during the month of May leading up to the election on June 9, the points coming from the Liberal Party were that we should be looking at every aspect of government for possible economies. This we are doing and this is one of them.
Mr. Cooke: Mr. Speaker, now that the Minister of Health has closed Riverview hospital in Windsor and now the OHIP office, does he have any plans to close anything else down in Windsor?
An hon. member: What have you got against Windsor?
Hon. B. Stephenson: How about Windsor itself?
Mr. Lewis: Did you hear that? “How about Windsor itself,” said the Minister of Labour while the Minister of Housing (Mr. Rhodes) nodded.
Hon. Mr. Rhodes: You have been broadcasting too long.
Hon. Mr. Timbrell: I have a suggestion that we close about four riding offices there.
An hon. member: Call Tory headquarters.
An hon. member: Don’t tempt us.
Interjections.
Hon. Mr. Timbrell: I reiterate that it is not a total closing of the OHIP office. It will still be maintained for inquiries from the public and from practitioners. The background to the Riverview unit of the Windsor Western Hospital -- and Riverview is not a hospital -- is a matter we have discussed many times.
Mr. Bounsall: Has the minister any idea --
An hon. member: No, he hasn’t.
Mr. Bounsall: I must wait until he finishes his reading, Mr. Speaker. Has the minister any idea of the number of claims that come from Windsor area residents for treatment in Detroit because of the specialized treatment and facilities in that city, claims which they personally bring in to that Windsor office for processing? It’s a situation which does not arise in the London office and a situation that’s very important to the delivery of the OHIP services and doctors’ payments in the city of Windsor. Finally, is he aware --
Mr. Speaker: The question has been asked.
Mr. Bounsall: -- that there is now, with the planned consolidation of his OHIP office space in London, a shortage of space for those employees already there, let alone those he plans to offer to shift from Windsor?
Hon. Mr. Timbrell: Mr. Speaker, just to answer the last point first: The indications from my staff in OHIP are that there is sufficient space and sufficient machinery and so forth in London to pick up the extra load.
As regards the first point -- no, I am not aware of the volume but I am sure that of the two million claims processed by that office, I doubt if that kind of claim would account for more than a small fraction of one per cent. You certainly wouldn’t use that as the basis of a decision not to go to London, and because of that not save $500,000 a year. I understand there is a postal system in Windsor which also connects with London, and those claims can be mailed to London.
PROPERTY TAXATION
Mr. Lewis: A question of the Treasurer: Do I take it the Treasurer noticed that the single largest component, I believe, of the announced increase today in the consumer price index was property taxes for the first time in a very long time? In the circumstances would the Treasurer reconsider altering his present position on the Edmonton commitment, which he appeared to repudiate?
Hon. Mr. McKeough: Mr. Speaker, the answer to the second part of the question is no. The answer to the first part of the question is that I had noticed that. I don’t quite understand, since these are Canadian figures, why property taxes come into the Statistics Canada figures at this point in time. Tax bills in Ontario generally had been known, and many of them would have been paid, much earlier in the year. Whether this increase is the influence of other parts of Canada or whether they bring them all in during this month, I simply don’t know.
Mr. Lewis: By way of supplementary, surely the Treasurer recognizes that this is an accelerating problem in Ontario as the municipalities bear the burden of the provincial financing. And since it is now hitting the home owners so dramatically that it figures in the cost of living, is there not some way in which the Treasurer can cushion the burden by way of supplementary estimates or supplementary contributions to the municipalities?
Hon. Mr. McKeough: Mr. Speaker, I am delighted to find out that the leader of the third party recognizes that taxes are part of the cost of living --
Mr. Lewis: Oh, terrific!
Mr. Warner: The Treasurer is causing them to rise.
Mr. Lewis: They are now identified.
Hon. Mr. McKeough: -- that whether they are personal income taxes, whether they are sales taxes, or whether they are property taxes, they are a part of the cost of living. That’s a tremendous leap forward on his part.
Mr. Lewis: Thanks so much. By way of supplementary, has it occurred to the Treasurer that if he had saved some of the money he squandered on Haldimand-Norfolk, Edwardsburgh and Minaki, he would be able to give the municipalities of Ontario what he originally committed himself to?
Hon. Mr. McKeough: Mr. Speaker, when I go to bed at night, I sometimes worry about some of the things that the member has mentioned --
Mr. Sargent: I’ll bet you do.
Mr. Warner: You should.
Hon. Mr. McKeough: -- but inevitably I get down on my knees and thank God that the people of Ontario haven’t listened to all his hare-brained schemes.
Mr. Lewis: I am glad the Treasurer gets down on his knees to someone -- anyone.
Mr. Speaker: Order. A supplementary by the Leader of the Opposition.
Mr. Lewis: Let the Treasurer name one.
Hon. Mr. McKeough: Nationalizing Inco.
Mr. Lewis: Oh, don’t be so silly. You’ve destroyed the province of Ontario and now we’re paying for it.
Mr. Foulds: The Tories nationalized Minaki Lodge.
Mr. Martel: Look at Hydro.
Mr. S. Smith: By way of supplementary, does the Treasurer not accept that by putting the burden of growth on to the property tax --
Mr. Speaker: Will the member for Sudbury East and the member for Port Arthur just try to restrain themselves?
Mr. Lewis: Have you seen what the member for Sudbury East is wearing?
Mr. Speaker: He looks like a chairman of the board; I wish he would act like one.
Mr. Lewis: He is a Deans supporter, Mr. Speaker.
Mr. Foulds: And he is going to Winston’s tonight.
Mr. S. Smith: Does the Treasurer not accept that municipal finance at this time in Ontario is in serious difficulty, and that by putting the burden of additional expenditures largely on to property tax, we are actually getting to the point where we are beginning to interfere with some of the fundamental social aims of the province -- some that I know he shares; such as home ownership and allowing some of the elderly people to stay in their own homes.
Would the Treasurer not undertake to give a commitment that means something, rather than the Edmonton commitment, to the municipalities of Ontario so that he can put some firm lid on the property tax increases and give them a share of other revenues in a way that they can count on from year to year and so that we don’t lose track of some of the fundamental social policies which I suspect that even he in his heart shares with the rest of us on this side?
[2:30]
Hon. Mr. McKeough: Mr. Speaker, I don’t accept the premise on which the question was asked and if the member would consult with any number of tables, he would find that property taxes as a percentage of household disposable income in this province have been dropping rather dramatically over the last 10 years, and that the facts as the member would have us believe them are simply not so.
Mr. Cassidy: They were, but they’re going up now.
Hon. Mr. Rhodes: Not the percentage.
BAR ADMISSION COURSE
Mrs. Campbell: My question is addressed to the Attorney General. Having in mind that the chief law officer of this province is concerned about the intellectual quality of legal education, has the Attorney General read the report in the Globe and Mail of this morning? Has he any comment on the awful scene at the bar admission course? What does he propose to do about it?
Hon. Mr. McMurtry: I’m sorry, Mr. Speaker; I have no knowledge of the
article to which the hon. member has referred.
Hon. Mr. McKeough: Haven’t you read the Globe this morning?
Mrs. Campbell: Then, Mr. Speaker, I would invite the Attorney General, who I think is probably the only one who hasn’t read it, to read it and perhaps comment as to whether or not he would like to see intellectual excellence rather than a sexist bias on behalf of the instructors in the bar admission course.
Hon. Mr. McMurtry: Without reading the article, I can agree to that, Mr. Speaker.
Mrs. Campbell: The Attorney General agrees there shouldn’t be hockey violence. What does he agree should be done about this kind of sexist education? What is he going to do about it? Or does he care?
Hon. W. Newman: They would take you off the ice.
Mr. Warner: Supplementary: I wonder, while the Attorney General is taking this serious matter under consideration, if he would give us a report on the admission course, the kinds of instructors that are there, the types of textbooks that are being used. I wonder if he has some comments on the particular textbooks that are being used, that were called by the paper “sexist oriented.” Perhaps he could tell us what he intends to do after having investigated those textbooks and the instructors who are used at the course.
Hon. Mr. McMurtry: I have not agreed to investigate, as the member for Scarborough-Ellesmere states, the bar admission course. If he has any specific concerns in relation to textbooks that he really feels should concern the Attorney General of this province, then I’ll be happy if he brings them to my attention.
DAY CARE
Mr. Breaugh: I’d like to ask a question of the Minister of Community and Social Services. There have been a number of reports in the media lately concerning day care provided in private home situations with, in some instances, rather large numbers of children in a private apartment. Is the ministry aware of that and is the minister considering any steps that might regulate that?
Hon. Mr. Norton: The present legislation already provides for the regulation of day-care services where more than four unrelated children are present on the premises.
It has been brought to my attention through the media that there have been reports of incidents where apparently there has been service provided in breach of the legislation. I have instructed members of my staff to investigate. In fact, in one case they have been in contact with the person from whom the story originated, but were unable to get substantiating information. That does not mean the matter has been placed to rest. We have laid charges against persons operating an illegal day nursery and that matter is now proceeding.
Especially if these operations exist in a setting such as an apartment building, it’s sometimes difficult to detect that. But wherever we hear any indication of it, we follow up on it immediately.
Ms. Gigantes: Supplementary: I would like to ask a question of the Minister of Community and Social Services. I know he wouldn’t agree to this last week, Mr. Speaker, but I wonder if he would agree this week, that as long as he is going to restrain the growth in a necessary service like day care he is going to have bootleg operations.
Hon. Mr. Norton: I wouldn’t necessarily agree with that, even this week. I would point out to the hon. member that within the province of Ontario at the present time, and I think our ratio is probably better than elsewhere in the country, we provide daycare service --
Ms. Gigantes: On what grounds do you say that?
Mr. Warner: Ridiculous.
Hon. Mr. Norton: -- to about 15 per cent of the children of working parents. But the bulk of the service provided in day care, care for children in this province, is provided by the parents making private arrangements with friends, neighbours or family.
Ms. Gigantes: Totally inadequate.
Hon. Mr. Norton: You may think that it is inadequate. I happen to believe there is still room for parents to make certain decisions with respect to the care of their children.
Hon. B. Stephenson: It is not inadequate. I used it for years and it is not.
Mr. McClellan: Spoken like a true bachelor.
Hon. Mr. Norton: I would think it presumptuous of me as the minister in this portfolio to assume that I could make the kind of rash statements that the hon. member has made, that children whose parents may be working are necessarily at risk. I disagree with that. I think parents in most cases are quite competent to make decisions with respect to the care of their children.
Mr. Foulds: Why not give them an option?
Hon. Mr. Norton: I would point out that in many instances there is a choice available.
Hon. Mr. Rhodes: You take care of your own kids.
Hon. Mr. Norton: Although we are not in a position to provide publicly supported day care services for all of the children of working parents, I would go so far as to say I don’t even think that is a desirable objective. Our first priority is to help those people who are in need.
Ms. Gigantes: Two hundred and fifteen spaces this year.
Hon. Mr. Norton: Look at the total number available in the province.
HARTT COMMISSION
Mr. Hennessy: I would like to ask the Minister of Natural Resources about a statement that was made yesterday by Mr. Justice Patrick Hartt. He said he intends to move the inquiry down to the southern part of Ontario; it was a northern inquiry as far as I am concerned. The statement made was that there is more political influence in the south, and that the south should take care of the problems that exist in the north. This I disagree with very strongly, being a member from the north.
I would like to know why Mr. Hartt is moving his inquiry down to the southern part of Ontario when the whole inquiry concerns the northern part of Ontario. I don’t think any inquiries from the south are moved up to the north.
Mr. Speaker: The question has been asked.
Hon. F. S. Miller: Let me assure the member that Mr. Justice Patrick Hartt is not taking any direction from me, nor should he.
Mr. Roy: You are not going to call him up?
Hon. F. S. Miller: I can only say that if, in his wisdom, he feels he needs to talk to people in southern Ontario who may wish to express opinions about the north, he is certainly free to do so.
Mr. Foulds: Supplementary: Can the minister tell us how the royal commission is being funded, as we found out last night it was not being funded through the Attorney General’s department?
Hon. F. S. Miller: I think I need to have somebody in the legal department of government, or the Chairman of Management Board answer that question rather than me.
Mr. Sargent: Only $2 million? Let it go.
Mr. Foulds: Can I redirect the question?
Mr. Speaker: If there is a minister prepared to answer.
Mr. Foulds: The Chairman of Management Board?
Hon. Mr. Auld: The question that was asked a moment ago?
Mr. Lewis: Who pays for the Hartt commission?
Mr. Foulds: Yes, funding for the Hartt commission.
Hon. Mr. Auld: The amount will be shown in the estimates of the Ministry of the Environment.
CORRECTIONAL OFFICERS
Mr. Reed: Mr. Speaker, to the Minister of Correctional Services: This is a three-part question. Is the minister employing female guards in all-male prisons, and is he employing male guards in all-female prisons? If the answer to either is yes would he not consider that some of the duties these guards are asked to perform are not an infringement of the personal privacy of the inmates?
Mr. Roy: It is tailor-made for you, Frank.
Hon. Mr. Drea: Mr. Speaker, firstly, I am very proud of the fact that we have more than 125 female correctional officers dealing in what I think would reasonably be regarded as all-male institutions, and doing a remarkable job. We have a unisex ministry.
Secondly, for many years, ever since the opening of the Vanier Institute for Women, there have been male staff there. There is a difference between what generally would be regarded as an all-male and an all-female institution --
Mr. Roy: You are right again, Frank.
Hon. Mr. Drea: -- in that a female correctional officer can work three shifts in an all-male institution,
whereas a male officer is not allowed to work the third shift, or the sleeping shift, in a female institution.
An hon. member: That’s sexist.
Hon. Mr. Drea: To the second part of the question, Mr. Speaker, the only comment I would make is that the same deterrent that the hon. member is trying to put in front of female correctional officers in male institutions applied when Florence Nightingale tried to bring nursing into the twentieth century.
Mr. Lewis: You are not doing too badly, fellow. Not badly at all.
Mr. Reed: Supplementary, Mr. Speaker: While appreciating the minister’s quest for equality, first of all does he not recognize that the differences in functions in male and female prisons are an obvious recognition of discrimination? Would he not consider that some of the functions that these female officers are asked to perform are not an infringement of the personal privacy of the inmates?
Mr. Foulds: Like what?
Hon. Mr. Drea: Such as?
Mr. Reed: Such as guarding them while they are performing their personal ablutions?
Hon. Mr. Drea: Mr. Speaker, obviously there is a difference between males and females.
Mr. Martel: Right on Frank, right on.
Mr. Philip: When did you find out, Frank?
Mr. Lewis: Thank God the school children are here.
Hon. Mr. Drea: Mr. Speaker, I regard females who are specifically trained for an occupation in the year 1977 to be professional people. I regard them in exactly the same capacity as I would female doctors. We don’t preclude female doctors from administering to male patients. We do not preclude the vast majority of our nursing staff, which traditionally over the years are female, from ministering to male patients. As a matter of fact, most of the male patients are profoundly grateful that they are there.
Mr. S. Smith: Why don’t males work the third shift? They are professionals.
Hon. Mr. Drea: Certainly in no way, shape or form am I going to turn back the clock and say that we are not going to employ females as on-line correctional officers. We are the only ones in Canada who do so. We are going to employ more. I will tell the House in terms of guarding the inmates’ privacy, there are certain functions that are not performed by female guards, such as the original skin search when a person is admitted.
But in terms of being on line -- and they are on line, even on the midnight shift in places as tough as Millbrook -- there is no difference between the functions they perform and the professional manner they carry them out, and in what a psychiatric nurse in Penetang does.
Mr. Lewis: Well done.
Mr. Conway: There really is a future leader over there.
Mr. Lewis: Now, if the Attorney General handled the bar admission course question the way the Minister of Correctional Services handles institutions.
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Mr. Davidson: Supplementary: Would the minister not agree that the present system as it is practised today is far more beneficial than detrimental to the system? And will he tell us when he plans to hire more female guards in order to look after the needs of the institutions that exist in the province -- be they male or female?
Hon. Mr. Drea: Mr. Speaker, if I could just appeal to you for a moment, for about the fourth time, I would appreciate it if correctional officers were referred to here as correctional officers rather than guards, which is a very outdated title.
Two things have happened upon the introduction in the past year of female on-line correctional officers. The reason I say “on-line” is that I want to differentiate between the female correctional officer and the female person who is watching over a female inmate. The first thing that happened was that the language has improved enormously inside. Two, the personal hygiene among males has improved enormously with the introduction of female correctional officers. Three, in general the rowdiness in the cell corridors has diminished remarkably.
As a matter of fact if you want to go back in history in this province, Mr. Speaker, they have had the same impact upon the jail system as the integration of the beverage room -- they cleaned up the act.
Mr. Foulds: Let’s not carry that parallel too far.
Mr. Roy: How would you know that, Frank?
Mr. Reed: Being an expert on both.
Hon. Mr. Drea: I never drank beer.
Mr. Martel: Tonic water, Frank?
Hon. Mr. Drea: The hiring practices in a ministry are a matter of talent, a matter of experience, a matter of qualifications, and we have unisex hiring as we have unisex work performance.
Mr. Reed: With all of this equality that is now before us, why are male correctional officers not allowed to work the third shift?
Hon. Mr. Drea: Mr. Speaker, I believe it has been traditional. It probably came when the Vanier Institution was opened some years ago. The mere presence of males in a female institution was regarded as somewhat radical. I think falsely, but necessarily, there is a concern that during the third shift, at which time the inmates would be asleep, there might be some attempt at a violation of their personal integrity. I regard that as absolutely no threat, but the public and a great many people who are associated with female institutions do.
The present system at Vanier is no hardship. Most of the male officers are in administrative capacities anyway and they just simply don’t work the third shift. The female staff who are in the preponderance there do work the third shift. I think it’s something that has to be looked at in the future, but I personally see no harm in it. I think that males in that atmosphere can be just as professional as females when they are on the line between midnight and the dawn rising hour.
HOSPITAL CUTBACKS
Mr. Cassidy: Mr. Speaker, a question for the Minister of Health -- is he not still there?
Mr. Roy: Sure he is.
Mr. Cassidy: He’s hiding.
In view of the reports that are now circulating --
Mr. Roy: You’re not going to make much of a leader if you can’t see.
Mr. Breaugh: You should know, Albert.
Mr. Cassidy: He’s a retiring type.
In view of the reports which are now circulating in Brockville and in Kingston, is the government considering a closure of the Brockville Psychiatric Hospital? Is it also considering giving the OHIP headquarters to the Chairman of the Management Board’s riding rather than the Minister of Community and Social Services’ when this headquarters is transferred to eastern Ontario?
Hon. Mr. Timbrell: Neither rumour is in any way founded in fact.
Hon. Mr. Norton: He knew that when he said it on the radio in Kingston.
Mr. Lewis: Until it happens.
Mr. Cassidy: Since 16 casual employees have been laid off in Brockville and since 27 more are being given on-call notice after January 7, can the minister say what is the fate of 200 further employees who it is said will be laid off at the end of the fiscal year?
Hon. Mr. Timbrell: I don’t know by whom it is said, but I don’t have any such plans. The member knows last week we did terminate the employment of a number of contract staff in five or six of the psychiatric hospitals. But I repeat, and I suspect the member knew this -- it’s certainly been made very clear by the local member for Leeds (Mr. Auld) -- there are no plans to close the Brockville Psychiatric Hospital. The plans to move OHIP to Kingston are going ahead.
LANDLORD-TENANT DISPUTE
Mr. Gaunt: Mr. Speaker, I have a question of the Attorney General: Would he advise why his ministry, through the director of public prosecutions, overruled a decision of a local Crown attorney and laid a criminal charge against an individual for what is basically a civil dispute?
Mr. Roy: Good question.
Hon. Mr. Rhodes: Wait till you hear the answer. Here is a good answer.
Hon. Mr. McMurtry: I assume that the question relates to a matter that the hon. member spoke to me about recently. I requested that he forward me a copy of the summons so that I could identify the matter about which he was concerned. Today he has delivered me a copy of the summons and, Mr. Speaker, through you, I wish to assure him that I will attempt to obtain particulars of the matter about which he is concerned.
Mr. Roy: Could I ask a supplementary?
Hon. Mr. Rhodes: Sure.
Mr. Roy: Oh, does the hon. member for Huron-Bruce want to go first? I don’t want to cut off my friend.
Mr. Speaker: That’s awfully decent of the member for Ottawa East.
Mr. Foulds: That’s why you didn’t make it as a leader, Albert.
An hon. member: Alphonse and Gaston.
Mr. Gaunt: May I ask the Attorney General if he would consider that a landlord who cuts off the hydro and water because the rent isn’t paid is deserving of a criminal charge?
Mr. Roy: Yes, as a matter of policy, let’s have it.
Hon. Mr. McMurtry: I think I should be more acquainted with more of the facts before I respond to that question.
Mr. Breaugh: That’s never stopped you before.
THUNDER BAY COURTHOUSE
Mr. Foulds: Mr. Speaker, a question of the Minister of Government Services: What steps is his ministry taking to rectify the disaster of a provincial courthouse that he got lumbered with in Thunder Bay which has, after three years, a leaking roof, an artesian stream running through the nine cell blocks in the basement, and three inches of water as usual condition in that courthouse?
Hon. B. Stephenson: Good, a built-in swimming pool.
Hon. Mr. Rhodes: Is that fresh water?
Mr. Roy: Move it to Ottawa. It would be an improvement there.
Hon. Mr. McCague: Mr. Speaker, I believe that we are making improvements to the building and charging them against the lease.
Mr. Deans: What do you do about the stream?
Hon. B. Stephenson: Swim in it.
Mr. Foulds: Supplementary: Could the minister find out whether the building is salvageable, or whether it might not be better to terminate the lease --
Hon. B. Stephenson: You have no imagination. That is what is that matter with you.
Mr. Foulds: -- with John H. McCormick and Group Building Systems Limited, inasmuch as the company has never lived up to the terms of the contract, and has never paid the subcontractors, and has delivered a shoddy piece of workmanship that is just not usable?
Hon. Mr. McCague: Yes.
Mr. Foulds: A final supplementary: Can we find out how much the ministry is currently paying per month?
Hon. Mr. McCague: Yes.
Mr. Deans: The inquiry is already on stream.
NON-PROFIT HOUSING
Mr. Roy: I have a question of the Minister of Housing, having to do with the long-standing dispute between his ministry and the city of Ottawa over the city of Ottawa non-profit housing: Can the minister advise the House whether he intends in the very near future to bring this dispute to a conclusion and subsidize to some measure the city of Ottawa non-profit housing, which is this year, as the minister knows, facing a deficit of half a million dollars?
If the minister will not subsidize it, does he realize that some of the rents for some of these tenants, mostly senior citizens, are increasing to the tune of between 100, 150 and 170 per cent and, in fact, some of these people will be paying 30 per cent of their revenue for rent?
Hon. Mr. Rhodes: Mr. Speaker, I have already communicated with the mayor of Ottawa. We’ve had ongoing discussions and an exchange of correspondence concerning this matter. I think, as the hon. member is aware, the particular problem is shared with Central Mortgage and Housing Corporation and we have discussed with it how we could go about being of extra assistance to the non-profit housing units in Ottawa.
I have communicated with the mayor of Ottawa as to what the formula would be. That has been agreed to by Central Mortgage and Housing Corporation in order to be of assistance. Quite frankly, I was under the impression that what we had submitted was acceptable and that it would be worked out to handle most of the problem that the member has just mentioned.
Mr. Roy: I have a supplementary. In view of the fact that this matter, at least according to the city of Ottawa, has been a long-standing dispute with his ministry over three, four or five years, when does the minister plan to make an announcement that there has been a solution?
Secondly, how much money are we talking about? What solution has the minister proposed to help subsidize this deficit faced by the city of Ottawa?
Hon. Mr. Rhodes: Mr. Speaker, I don’t believe that I should discuss the contents of the proposal I have made to the mayor until such time as he has responded and has accepted that as a solution to his problem.
I think the hon. member is well aware that the situation we’re facing in Ottawa is one where, quite frankly -- and I’m not attempting to be difficult about this at all -- part of that problem, if not all of it, has been created by the inability of the management of the units in Ottawa to keep up with the times.
What we are trying to do now is to make sure that these units do not become totally subsidized as public housing but that the tenants in them will receive the assistance they need according to their incomes. I believe it was at the recommendation of the city of Ottawa -- I’m sorry; not the city of Ottawa, but the housing management company --
Mr. Roy: The city of Ottawa non-profit housing authority.
Hon. Mr. Rhodes: I wanted to draw the distinction between city council as opposed to this group. They themselves were looking very seriously at increasing the percentage of income in those units to 30 per cent. When the mayor responds to the proposal we’ve made and, I emphasize again, it has been agreed to by Central Mortgage and Housing Corporation, we’ll get on with the arrangements and make the announcement.
Mr. Roy: Could I ask one final supplementary?
Mr. Speaker: The final supplementary.
Mr. Roy: Would the minister undertake to press this matter with the mayor and with Central Mortgage and Housing Corporation since some of these tenants are facing this increase as of January 1, 1978?
Hon. Mr. Rhodes: The hon. member is quite correct. I’m aware of that and I think that since this matter has come to my attention -- and I’m not aware that it’s gone on for four or five years --
Mr. Roy: It has.
Hon. Mr. Rhodes: -- but since it’s come to my attention, I think we’ve made considerable progress. Understandably the mayor of Ottawa, quite properly on behalf of his community, grabbed for the whole ring. I must say to you, sir, with all respect to the mayor, he didn’t get the whole ring. But I think we’ve worked out something that is satisfactory and will be settled, I hope, well before that deadline.
Mr. Cassidy: Supplementary?
Mr. Speaker: No, that’s enough supplementaries.
TOW TRUCK LICENSING
Mr. Philip: I have a question of the Minister of Transportation and Communications. Is the minister aware that the licensing and legislation committee of Metro Toronto council is meeting today to deal with the proposal to license tow trucks? If so, would the minister care to make known his initiatives at the provincial level in this area?
Hon. Mr. Snow: Mr. Speaker, I wasn’t aware of that particular meeting of the Metropolitan Toronto Licensing Commission to consider the licensing of tow trucks within Metropolitan Toronto. I would have to say that is a position I would support and I’m very pleased to hear they are taking this initiative. I hope they follow through with it because I’ve given serious consideration to the possible provincial licensing of tow trucks.
The needs vary so greatly within the province of Ontario that it is my opinion, and I believe the opinion of the government, that the licensing of tow trucks should be carried out at the municipal level where it is deemed by that municipality to be necessary.
Mr. Philip: By way of a supplementary, is the minister aware that the two associations of tow truck operators, namely the Automobile Trades Association and the new Association of Independent Tow Truck Operators, favour provincial rather than municipal licensing? In the light of the possible Metro initiatives, would the minister care to tell us which of the seven recommendations regarding tow truck licensing found in
chapter six of the report of the select committee on the highway transportation of goods, he is prepared to implement, and when?
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Hon. Mr. Snow: Mr. Speaker, with regard to the select committee on transportation of goods, there are some 300 recommendations -- or some very large number of recommendations. Since we received the committee report, the ministry has been actively reviewing and preparing information with regard to the implementation of many of the recommendations in that particular report. I will be bringing forward amendments, changes and implementation procedures for many of those recommendations in due course, but I am not prepared to say at this moment exactly what our response is going to be to those seven specific recommendations.
Mr. Cunningham: Supplementary: Would the minister not agree, given that the tow trucks in question leave the various regions and travel quite freely throughout the province, that it would be more appropriate to consider provincial control rather than municipal control in this matter?
Hon. Mr. Snow: No, that is not my opinion certainly at this time. I realize there is some degree of long-distance tow truck service, but I hesitate to suggest that tow trucks should be licensed by the Highway Transport Board and that there should be the necessary proven public need and necessity. In most cases a tow truck gives a local service. In larger municipalities, I think the tow truck industry should be regulated municipally as are taxis and there should be some minimum licensing requirements in the licensing, but not just a case of licensing for the sake of licensing.
I have asked my ministry to do some work on preparing a sample bylaw that would be available to municipalities as a guide if they wish to regulate tow trucks in their municipality.
Mr. Philip: In coming to these conclusions, has the minister met with the two trade associations involved and has he sought their opinions beforehand?
Hon. Mr. Snow: I have certainly met with one of the associations the hon. member mentions. At that meeting, I found those in attendance were very much not necessarily of the same opinion. I believe there is some difference of opinion in the industry.
RECOVERY OF HYDRO MONEY
Mr. Sargent: I have a question of the Minister of Energy. Is the minister aware of a very concerted effort on the part of Hydro to recover a large sum of money, in the area of $240 million, from the Ministry of Government Services?
Mr. Worton: It’s not much if you say it quickly.
Hon. J. A. Taylor: No.
Mr. Sargent: Could I ask a supplementary then to the Treasurer? Is he aware of the fact that there is $240 million between Government Services and Hydro and that there is a very concerted effort to recover this money? Is the Government borrowing money from Hydro?
Hon. Mr. McKeough: No.
Mr. Sargent: As the Treasurer, the minister then says he doesn’t know about a $240 million advance from Hydro to Government Services?
Hon. Mr. McKeough: No.
Mr. Sargent: Supplementary to the Minister of Government Services: Is he aware that his ministry owes Hydro $240 million?
Mr. Makarchuk: Try the Minister of Correctional Services. He’ll give you an answer.
Hon. Mr. McCague: Mr. Speaker, could I have the member repeat the question, please?
Mr. Sargent: Is the minister aware of Hydro’s effort to recover $240 million from his ministry?
Hon. Mr. McCague: No.
HOSPITAL CUTBACKS
Mr. Deans: I have a question of the Minister of Health. Can the Minister of Health produce the analysis and the studies which his ministry must obviously have done into the efficiency and the patient-staff ratio and also the staff functions at the Hamilton Psychiatric Hospital, which brought the ministry to the conclusion that it could afford to have a drastically reduced number of staff available in order to meet the needs of the patient population, both now and in the future?
Hon. Mr. Timbrell: Mr. Speaker, as I hope the hon. member knows, the reductions which were recently announced in the psychiatric hospitals are all in the contract area, and basically all in services.
Mr. Deans: It doesn’t matter.
Hon. Mr. Timbrell: The direction that was given to staff in reviewing the program was that direct patient care was not to be affected and this is certainly the case.
Mr. Deans: A supplementary question: How can the minister claim that when, in the case of the Hamilton Psychiatric Hospital at least, there will be two doctors who will not be continued on staff or on a consultancy basis and --
Mr. Speaker: The oral question period has expired.
Mr. Deans: Oh, has it? Well that does pose a problem. Can the minister produce the analysis and the studies that brought him to the realization that he could do without these people?
Hon. Mr. Timbrell: As the hon. member knows, the estimates of my ministry are presently before the social development committee. If he would like to appear there, I would be glad to discuss it with him and involve the staff who are doing the analysis for me.
Mr. Speaker: The time for oral questions has expired.
Before we get to the orders, I think the hon. House leader would like to make an announcement.
VISITORS
Hon. Mr. Welch: Mr. Speaker, I thought I might take advantage of the attendance at the moment to draw the House’s attention to the visit on Thursday afternoon to the Legislature of His Excellency Guilio Andreotti, President of the Council of Ministers of the Italian Republic.
The President will be here and a guest in the Speaker’s gallery at about 3 p.m. Thursday, following which the Premier (Mr. Davis) is having a reception for the President in the Lieutenant Governor’s music room to which all members of the Legislature will be invited, in order to meet with the President.
I thought that since the House will not be in session tomorrow, we should draw attention to the fact that His Excellency will be here at about 3 p.m., near the end of the question period. I hope most members of the House will be here to greet him.
Mr. Nixon: I would also want to draw to your attention, sir, that an old friend of ours is in the gallery this afternoon, the former member for Sault Ste. Marie and Attorney General, Arthur Wishart. I often think how desperately he tried to keep Green Stamps from Ontario, and as soon as he left we had Wintario which is now paying us $80 million a year.
OHIP OFFICE CLOSURE
Mr. Bounsall: Mr. Speaker, I wish to give notice under
section 27(
g) of the standing orders that I am not satisfied with the response of the Minister of Health (Mr. Timbrell) to my questions asked today and intend to raise the subject matter on the adjournment of the House tonight.
Mr. Cooke: Mr. Speaker, I would also like to give notice under standing order 27(
g) that I am dissatisfied with the answer the Minister of Health gave to my supplementary question, and I would like to discuss it this evening.
REPORTS
STANDING GENERAL GOVERNMENT COMMITITEE
Mr. Gaunt from the standing general government committee reported the following resolution:
Resolved: That supply in the following amounts and to defray the expenses of the Ministry of Revenue be granted to Her Majesty for the fiscal year during March 31, 1978:
Ministry of Revenue:
Ministry administration program.........$ 4,974,000
Administration of taxes program..........23,736,000
Guaranteed income and tax credit program..............121,152,000
Municipal assessment program........51,712,000
STANDING SOCIAL DEVELOPMENT COMMITTEE
Mr. Villeneuve from the standing social development committee reported the following resolution:
Resolved: That supply in the following amounts and to defray the expenses of the Ministry of Community and Social Services be granted to Her Majesty for the fiscal year ending March 31, 1978:
Ministry of Community and Social Services:
Ministry administration program.....$ 14,517,000
Social resources program.....853,278,000
Developmental resources program.....209,403,000
And that supply in the following supplementary amount and to defray the expenses of the Ministry of Community and Social Services be granted to Her Majesty for the fiscal year ending March 31, 1978:
Ministry of Community and Social Services;
Children’s services program......$3,665,500
Also, that there be granted to Her Majesty, for the services of the fiscal year ending March 31, 1978, the following sums:
Ministry of the Attorney General:
Vote
Item
$ 2,722,000
Ministry of Correctional Services:
$ 115,100
243,800
67,300
134,300
165,700
50,900
345,900
35,500
26,600
699,600
33,734,400
Ministry of Health
33,000
43,500
45,800
14,000
25,000
237,900
52,803,400
7,869,700
1,000,000
13,500
STANDING PROCEDURAL AFFAIRS COMMITTEE
Mr. Breaugh from the standing procedural affairs committee presented the committee’s report which was read as follows and adopted:
Your committee has carefully examined the following application for a private Act and finds the notices, as published, sufficient:
City of Chatham.
Mr. Breaugh also presented the committee’s resolution which was read as follows and adopted:
That since the present session has been so brief, it has not afforded the House sufficient opportunity to assess provisional standing orders. The committee therefore recommends that the experimental period be extended for another whole session.
On motion by Mr. Breaugh the debate was adjourned.
MOTION
Hon. Mr. Welch moved that on the standing social development committee Mr. Van Horne be substituted for Mrs. Campbell.
Motion agreed to.
INTRODUCTION OF BILLS
FARM PRODUCTS MARKETING AMENDMENT ACT
Hon. W. Newman moved first reading of Bill 102,
An Act to amend the Farm Products Marketing Act.
Motion agreed to.
Hon. W. Newman: The purpose and intent of this bill, of course, is to make amendments to the Farm Products Marketing Act as a result of certain problems that arose out of recent court decisions that were handed down.
MILK AMENDMENT ACT
Hon. W. Neman moved first reading of Bill 103,
An Act to amend the Milk Act.
Motion agreed to.
Hon. W. Newman: Mr. Speaker, the reason for introducing this bill is exactly the same reason for introducing the Farm Products Marketing Amendment Act.
PUBLIC HOSPITALS AMENDMENT ACT
Mr. Williams moved first reading of Bill 104,
An Act to amend the Public Hospitals Act.
Motion agreed to.
Mr. Williams: Mr. Speaker, the bill establishes several requirements relating to the composition of the boards of public hospitals. The bill further provides that the number of appointed directors who have a vote shall not exceed one quarter of the elected directors.
In addition, the bill establishes certain criteria for membership in a hospital corporation and guarantees a member’s right to vote in the hospital corporation.
[3:15]
ONTARIO COMMISSION ON WASTE MANAGEMENT AND RESOURCE RECOVERY SYSTEMS ACT
Mr. Cunningham moved first reading of Bill 105,
An Act to establish the Ontario Commission on Waste Management and Resource Recovery Systems.
Motion agreed to.
Mr. Cunningham: Mr. Speaker, the bill establishes the Ontario Commission on Waste Management and Resource Recovery Systems to have the authority in matters concerning disposal, reclamation and recycling of waste materials and to provide aid to local governments that desire to develop waste disposal systems on their own.
CITY OF CHATHAM ACT
Mr. Bradley, on behalf of Mr. McGuigan, moved first reading of Bill Pr30,
An Act respecting the City of Chatham.
Motion agreed to.
ORDERS OF THE DAY
TOWNSHIP OF TAY ACT
Mr. G. E. Smith moved second reading of Bill Pr1,
An Act respecting the Township of Tay.
Motion agreed to.
Third reading also agreed to on motion.
CIRCLE R BOYS RANCH ACT
Mr. G. E. Smith, on behalf of Mr. G. Taylor, moved second reading of Bill Pr19,
An Act respecting Circle R Boys Ranch
Motion agreed to.
Third reading also agreed to on motion.
FULLER-AUSTIN OF CANADA LIMITED ACT
Mr. Maeck, on behalf of Mr. McCaffrey, moved second reading of Bill Pr21,
An Act respecting Fuller-Austin of Canada Limited.
Motion agreed to.
Third reading also agreed to on motion.
BOROUGH OF ETOBICOKE ACT
Mr. Maeck, on behalf of Mr. Leluk, moved second reading of Bill Pr22,
An Act respecting the Borough of Etobicoke.
Motion agreed to.
Third reading also agreed to on motion.
MATOL HOLDING LIMITED ACT
Mr. Maeck, on behalf of Mr. McCaffrey, moved second reading of Bill Pr23,
An Act respecting Matol Holdings Limited.
Motion agreed to.
Third reading also agreed to on motion.
NIAGARA INSTITUTE FOR INTERNATIONAL STUDIES ACT
Mr. Ruston, on behalf of Mr. Kerrio, moved second reading of Bill Pr24,
An Act respecting Niagara Institute for International Studies.
Motion agreed to.
Third reading also agreed to on motion.
GARNET HOLDINGS LIMITED ACT
Mr. Maeck, on behalf of Mr. Johnson, moved second reading of Bill Pr31,
An Act respecting Garnet Holdings Limited.
Motion agreed to.
Third reading also agreed to on motion.
STANLEY STARR LIMITED ACT
Mr. Cureatz moved second reading of Bill Pr32,
An Act respecting Stanley Starr Limited.
Motion agreed to.
Third reading also agreed to on motion.
KEDNA ENTERPRISES LIMITED ACT
Mr. Mackenzie moved second reading of Bill Pr33,
An Act respecting Kedna Enterprises Limited.
Motion agreed to.
Third reading also agreed to on motion.
INCOME TAX DISCOUNTERS ACT
Hon. Mr. Grossman moved second reading of Bill 99,
An Act to regulate the Discounting of Income Tax Refunds.
Mr. Nixon: There’s been considerable concern for the last five years that a number of these discounters in Ontario have been charging inordinately high rates of interest and frankly I am very glad indeed the minister has decided to take action to bring these under control.
I suppose it might have been at least a consideration that the practice simply be outlawed. But the provision of this bill requiring the discounter to pay 95 per cent of the value of the income tax rebate to the applicant means there would be an interest rate of five per cent on the amount, which certainly is not inordinate. I would also think it would effectively drive the discounters out of that business, which is something I believe is to be desired.
I suppose there are some individuals who might not find it convenient or even possible to get loans on the basis of an expected income tax rebate from normal sources. But it’s difficult really to think of the circumstances where, if they had a receipt or a statement based on their income tax return indicating a payment was coming, they could not get a loan based on that from some legitimate source. So for that reason we intend to support the bill.
Mr. Davison: I intend to deal with second reading of Bill 99 at some greater length than my colleague from Brant-Oxford-Norfolk, although I also rise on behalf of my party to say we will support the bill.
Bill 99 represents very badly needed legislation to protect consumers in Ontario. If I didn’t know better I’d wonder why someone hadn’t thought of introducing this bill before. Knowing better though, I must say I’m very impressed, if not with the current minister’s position, and if not with the details and specifics of the bill itself then by the very speed with which the bill has been brought before the House: first reading last Tuesday; second reading; committee; probably third reading today.
It took the current minister’s predecessor several months to say, “No, it’s impossible.” It's taken this minister only a week to bring the bill into the House and probably get it through. It now appears that what was last winter and last spring impossible, unconstitutional -- what have you -- was in fact merely inconvenient for the government at the time. For our friends opposite, politics remains the art of the minimum. Not until they’re pressed into the corner will we get legislation to protect consumers.
I first had this matter brought to my attention last February when a number of constituents came to my constituency office to complain about these practices. After looking into the matter, talking to people from municipal, federal and provincial levels, I was rather surprised to find out there wasn’t any legislation. I think perhaps it would be a useful exercise if members of the House understood exactly what these rather sophisticated loan sharks are doing.
It’s not a very nice activity they’re involved in. These businesses take an individual’s income tax information and then provide a hasty and at times, inaccurate, estimate of what the client’s rebate will be. The client may then sell the full return for a portion of the refund. That portion is usually received in immediate cash, although there are cases where that isn’t true. Power of attorney is then signed over to the service and the individual never sees the actual amount reimbursed by the government. Any error, unintentional or otherwise, could add a substantial windfall profit to the discounter without the knowledge of the client.
There’s no standard fee taken by these firms. It most often, though, is in excess of 40 per cent of the refund, depending on the amount of money involved and depending on the degree of risk as determined by the service. If we would choose to look at those fees as interest rates, compounded annually, then it’s quite possible to conclude some of these fees amount to interest rates as high as 2,000 per cent. Indeed, the government should be congratulated for moving to stop this practice.
When I brought the matter to the current minister’s predecessor’s attention in February 1977 I pointed all of this out. I also pointed out to him that the people most vulnerable to these services are those in such dire financial straits that immediate cash is necessary. I felt what these businesses were doing was an inexcusable exploitation of a rather desperate and economically desperate segment of our community.
The minister replied to me that month, saying he was aware of the problem and, wholly unsolicited by me, then launched into some rather bizarre comments about Quebec and about the whole question of federal-provincial jurisdictions. The response of the minister does not form part of the record of this House, Mr. Speaker. I would like, with your indulgence, to make it a part of the record of this House. I think it reflects the real attitude of this government and should be on the record. I’m quoting from a letter dated February 21, 1977, over the signature of the former minister, the member for Carleton (Mr. Handleman):
“You may not be aware that the whole field of interest is exclusively a federal jurisdiction. It is in fact so exclusively federal that not even the province of Quebec challenges the clear jurisdiction of the federal government to regulate interest rates. Because of that situation, the provinces have for the past two years been urging the federal government to enact legislation to control this kind of abuse as well as loan sharking and government cheque discounting.
[3:30]
“In response to the province’s urging and as a result of their own research, the federal government has introduced the Borrowers’ and Depositors’ Protection Act which is currently being studied by a parliamentary committee in Ottawa. The measures contained in that Act may very well completely curtail the activities of these companies which concern you and us.
“We did try, about a year ago, to claim jurisdiction but we were told in no uncertain terms by our legal advisers that we could not because of our limited jurisdictional capacity.
“We have examined the transactions in terms of the Business Practices Act and have concluded that we have no authority under that legislation to proceed against these companies.”
He goes on, at some length, to consider the possibility of actions being taken under that most famous of Acts, that modem Act, the Unconscionable Transactions Act. If hon. members will recall, this was his initial solution to the problem of rent control.
I don’t intend to raise it further, but I might make a footnote with the current minister that while he’s on this current crusade, he might also consider the question of those people who discount government cheques. I think perhaps the minister can make a note of that and perhaps next week introduce legislation that we can pass the week after, to prevent that kind of practice.
I was not totally satisfied with the minister’s response at that time but, in all good faith, I accepted it. It wasn’t until I did some further research in the matter that I found out that several provinces in Canada had enacted legislation to prevent this same kind of abuse. I wrote back to the minister in March a very strongly-worded letter in which I wanted to know from him exactly why he had put that forward in such a fashion to me. I just couldn’t believe that it had been a deliberate attempt on his part, or his staff’s part, to mislead me. I wondered about the competence of some of his senior staff in not keeping themselves abreast of what was happening across the country.
The minister penned another of his odd responses to me, this one on April 5, in which he pointed out that he was deeply disturbed. At the time I agreed with him. However, he then was able to find another argument why the provincial government shouldn’t move into this field, and that was again by going back to the Borrowers’ and Depositors’ Protection Act. At this time, I was pressing him very strongly because I was concerned that we get legislation in Ontario before the April 30 deadline so we could have stopped the needless suffering that went on during the last tax period. The minister replied to me and I quote from his April 5 letter:
“We are all aware that there is now far too much legislative and administrative overlap between the two senior levels of government. Federal-provincial roles must be re-examined and rationalized. The case of the discounters is as clearcut a starting point as we will find. We have asked for, and the federal government is enacting, a law that will deal with them. It flies in the face of all reason for the province to take concurrent, constitutionally questionable, prohibitory action just as the federal legislation is coming into place.”
As the minister knows, as I know and as many members of the House know, you can very well wait a long time for legislation of any kind to come from the federal government so that it wasn’t a very reasonable argument at that time.
I raised the question of the constitutionality on other occasions with the minister. On March 31 I raised it in the House along with my colleague from Scarborough West (Mr. Lewis) and my colleague from Riverdale (Mr. Renwick). Again, the minister insisted that it was totally unconstitutional, that his staff assured him it was totally unconstitutional.
I hope that the minister will allay our fears by telling us in the debate today that he’s talked with the Attorney General, or he’s got another opinion from his staff or an outside legal opinion. Because we wouldn’t, of course, want to do anything that was unconstitutional.
There are a couple of aspects that aren’t really dealt with in this bill that I would like to draw to the minister’s attention. One is that the experience in Manitoba has shown us that bringing forth this kind of legislation should force about 80 per cent of the discounters out of business, leaving around 20 per cent. However, it’s quite conceivable that in Ontario, as has happened in other provinces, we will force them all out of business.
These discounters, shady and shoddy as they may be, do in fact provide a service that some people demand, some people require. I think it’s incumbent upon us, as legislators in Ontario, to understand that. While what I am about to suggest doesn’t require legislation, I hope the minister will pay some attention to it. I have talked to him privately about it before. What I suggest is the possibility of Ontario following the example of the Hon.
Saul Miller, the former minister in charge of this matter in Manitoba, when he established, within his ministry and within the regional offices of the ministry, an individual who was identified as being available for counselling in this matter and who could sit down with a person in need -- in desperate need of this money immediately -- and recommend an approach whereby that person could, with the government, go to the credit unions of Manitoba and apply for a loan.
While we are also on the figure of five per cent; five per cent is, of course, in fact 20 per cent when you consider that the average length of time for a return is three months. At 20 per cent these discounters will be making considerably more than a credit union or a bank, or God forbid even Avco and other finance companies. So I think there would be room in Ontario for the ministry to actively encourage a counselling system that would put the needy person in contact, through the auspices of the ministry, with a credit union or another financial institution from which -- I beg your pardon?
Hon. Mr. Grossman: Five per cent isn’t the interest rate.
Mr. Davison: Okay, I will explain it again for the benefit of my colleague.
Hon. Mr. Grossman: It is a discount, it isn’t an interest rate.
Mr. Davison: Five per cent is to be considered as five per cent of the refund. If the company only lends you that money over the average period, which is three months, you then have to multiply by four to find the interest rate. It’s the principle of short-term borrowing, so in most cases you can consider the five per cent fee to be a 20 per cent interest rate.
I hope the minister will take that suggestion seriously and do something to be of assistance to those in our province who aren’t in as good a financial position as the minister or I or his fellow members may be in.
Another matter I would like to raise with the minister, to which the bill doesn’t address itself but for which there is certainly a need, is the question of the way in which these companies operate in terms of business practices. I think there are some areas that perhaps don’t properly belong in this Bill 99 that have to be looked at.
One that has concerned me is the question of the power of attorney agreements the discounters extract from their victims. I have before me a copy of an agreement with Shield Tax Services Limited, which is another name for Instant Tax Services, and it’s on the prescribed government form for power of attorney. The particular constituent who brought this to my attention was, I admit, not the most sophisticated of people. He told me, after he saw a copy of it, it was a different agreement to the one he signed. There was in fact no date on the agreement.
Be that as it may, if the date was put on by the company later or if the date was on when the person signed it, the point of concern is that this individual signed the agreement on February 28, 1977. We would assume that under normal circumstances the information would go off to the tax department and National Revenue and that within three months or so the refund would appear and everything would be settled.
There was really no need for the power of attorney to extend from February to past June or July. This document I have -- and if the minister is interested I could give him a copy as long as he would keep the name confidential -- had a date of December 31, 1978. The spectre that raises is that having once signed that, not really understanding it and not being fully aware of what it meant, you may never see your income tax again for another two years. I hope the minister will take that into consideration.
There are a number of other points I want to raise. Specifically I want to talk about the provisions in the bill found in sections 4 and 11. Although I will deal with them at some length, I think perhaps it would be most appropriate if I dealt with them during the committee stage.
Let me say in conclusion it is very nice to see this bill because I know if we pass it we will at least in some way give the consumers of Ontario the kind of protection they need. It just would have been a great deal nicer if we could have seen this bill several months ago.
HERITAGE LANGUAGE PROGRAM
Mr. Deputy Speaker: Before recognizing another member en this particular legislation, I want to inform the members that, pursuant to standing order 28, the members for Downsview (Mr. di Santo) and Oakwood (Mr. Grande) have filed the required notice of their dissatisfaction with the answers to questions posed to the Minister of Education (Mr. Wells) on November 10 concerning the heritage language program. The member for Downsview will be called at 10:30 and the member for Oakwood will be called at 10:40. Further to this, the member for Windsor-Sandwich (Mr. Bounsall) will debate his question with the Minister of Health (Mr. Timbrell).
INCOME TAX DISCOUNTERS ACT (CONTINUED)
Mr. Blundy: I have read over this bill and I am prepared to speak in support of it.
I would like to mention a rather interesting happening. On November 8 I was going to ask the Minister of Consumer and Commercial Relations what he was going to do about this injustice that was happening in the province of Ontario. On that very day the minister stood up and said he was going to introduce legislation to correct these injustices. At that time, obviously the minister and I were thinking along the same lines as far as this particular matter is concerned.
I want to say that I think the situation should have been corrected some time ago. I know it is a custom that has been going on for some time in the province, particularly in the Metro Toronto area, I am informed. Even though it is a little late, it is good legislation, I believe. Many of the people who have used the services of one of these discounting firms are people who are most in need of protection in the province of Ontario. This bill is going to provide them that protection, at least to some extent.
Most people who have an income tax refund coming to them and receive notice of it can go through the conventional borrowing institutions and get money if they wish. Many of the people who perhaps are not as aware of this or who are not as prepared to go to the conventional lending institutions have gone to these discounters and have been really ripped off as far as interest rates and service charges are concerned.
So I believe the bill is going to correct this situation and I will support the bill in all three readings.
Ms. Bryden: I also welcome this legislation but wonder why it took so long. I think I can see three reasons for the delay which is typical of the kind of activity we get in the consumer protection field from this government.
The first reason for the delay was an attempt at the usual Tory response of buck-passing to Ottawa -- “Let’s see what they’ll do” -- even though people continue to be ripped off during the period while the long negotiations go on, rather than putting a stop to it and later on seeing if negotiations could bring in a federal Act on this problem.
The second event that appeared to push the legislation along was the explosion of activity this year in the field of instant tax refunds. A great many of the operators in the western provinces moved east when the western provinces put a stop to their exploiting activities. So in Ontario we had, I understand according to some newspaper stories, about 40 of these instant tax offices open. There were an estimated 62 across the country and last year the Department of National Revenue estimated $8 million of refunds were cycled through the instant tax offices and about 50 per cent of this was sheer profit.
So that when you get a situation as glaring as that, the government appears to listen a bit more to the requests for some regulation of this particular abuse.
The third thing that happened was we had a change of minister and I think there must be some significance to that, perhaps, because the previous one --
Mr. Grande: Slightly, slightly.
Ms. Bryden: -- was convinced such legislation was unconstitutional, even though none of the Acts in the other provinces have been challenged.
Mr. Foulds: He is just a short, thin Sidney Handleman, that’s all.
Ms. Bryden: It seems to me if you always retreat behind the constitutional argument you seldom get any action. But anyway, after these three events occurred, we finally have got some legislation. I welcome it at this late date.
I don’t think there’s any doubt about the need. There have been stories in the paper of the kind of people who apply for such refunds. Generally, they are people who either have difficulty obtaining credit or are uninformed of other places where they could get credit. They are often in very dire financial circumstances, are desperate for instant cash and so are very vulnerable to this kind of exploitation. For that reason they need protection and they need protection fast, because last year, according to a survey done by the Toronto Star, there was an average of 300 per cent charged on these refunds.
The Star reporter went to six shops. He had a $500 refund coming to him; they offered him figures varying from $250 to $350, but the average was about $300, which was 60 per cent of the refund coming to him. But that is just an average. Certainly across Canada there have been instances where a much higher percentage was taken.
There is no doubt of the need for protection for the rather vulnerable group that needs instant cash and tends to go to these kind of loan sharks who are posing as tax-return preparers.
As was stated by my colleague, the member for Hamilton Centre, we do need more counselling services from the Ministry of Consumer and Commercial Relations to let people know about alternative credit sources. We also need more community banks of the kind that the Royal Bank is operating in the east end of Toronto. There is one community bank there that is attempting to provide credit for people of modest income. We need more of that kind of credit service and that kind of information available to people.
Generally we need a regulation of the whole tax-return preparing service industry. I notice the minister in his bill is attempting to plug a possible loophole which these services might resort to; that is, instead of taking a large discount on the refund, they will put in a large fee on the service. He says no “unreasonable charge” may be made by the service. The bill is rather indefinite as to what is a reasonable or unreasonable charge, and I find the legislation a little murky in this field.
I would like the minister to clarify what happens if a person thinks there is an unreasonable charge. For instance, can he complain to the minister? Or does he have to institute a prosecution and the judge will decide whether the charge is unreasonable? Also, if he complains to the minister, can the minister order a reduction in the charge and a refund to the taxpayer? Or does that have to be done through a court order, with a judge making the order for a refund of the amount charged?
I notice that
section 10(2) allows a judge to order a refund of any amount owing to the taxpayer, but it is not clear whether that is just the amount of the refund that comes in after the event when the refund was more than was anticipated, or whether that would also allow a judge to order payment of what he considered the unreasonable part of the charge.
Another area that is a little murky is the question of how the taxpayer collects the excess when the refund is larger than was anticipated. The legislation provides that excess, of course, must go to the taxpayer, but it is not clear whether the taxpayer has to go through small claims court to get it. In many instances it could involve fairly small amounts and probably would not be worth going through small claims court.
I wonder if the minister should not consider licensing tax return services so that in the event they do not pay these small amounts to the taxpayer, their licence could be cancelled or suspended until such payments are made.
The same licensing could also be used to enforce the question of what is reasonable and unreasonable if that is to be decided at the discretion of the minister.
Those are two areas that I would like the minister to clarify and possibly to consider whether the Act should be amended to make them clearer.
Those are the only points I wanted to raise. I only add that I hope this piece of legislation is not a single swallow that makes a spring but that we will see more consumer protection legislation of this sort.
Mr. B. Newman: I would like to make a few comments concerning Bill 99,
An Act to regulate the Discounting of Income Tax Refunds. In my humble opinion, the bill’s title is misleading because it does not solely cover income tax refunds. When we look under
section 1, we see that in addition to income tax refunds, there are unemployment insurance refunds available, Canada Pension refunds, and refunds under any Act of Canada, Ontario or any other province. An individual may not realize that he has the opportunity of using this piece of legislation in an attempt to get refunds, whether it is solely income tax or not.
I would appreciate a reply from the minister to my comments concerning the title of the bill. I also think that in view of the fact that the services did mushroom in the previous year, as a result of limiting the amount that the individual could collect to five per cent of the overpayment, the numbers that may go into this type of a business will be extremely limited. I think that even though they may be limited, there are so many other areas of refunds that an individual could be entitled to that a good approach might be the licensing, as has been mentioned by the previous speaker, of the persons who are going to engage in this type of business.
There are other comments I could make, but many of them have been made by previous speakers. I would like to bring to the minister’s attention that the constitutionality of this type of legislation was a great concern to his predecessor. One of the reasons why he refused to act was that he claimed we had no authority on the provincial level to act or to pass legislation.
The local newspaper was so concerned that they even editorialized; they would like to know who is actually correct. Is the minister correct? Or was his predecessor correct? They mention on -- I think it’s November 9, 1977; “Sidney Handleman, the Consumer Relations minister at that time, agreed that discounters’ activities were” -- and I am quoting -- “almost a criminal offence, but rejected any steps to curb them on the grounds that any regulatory Act would have been completely unconstitutional.”
So it is kind of strange now that the minister’s predecessor thought it was unconstitutional and yet the minister maintains it is not unconstitutional. We certainly think and hope he is correct in his assumption, because we would like to see this legislation passed and become effective quite quickly.
Mr. Grande: I rise to support this legislation and, as many other speakers prior to my standing up have said, certainly it is long overdue. It has been, as a matter of fact, for two or three years. The Minister of Consumer and Commercial Relations has had ample evidence in his hands sent by me and many other members of this Legislature saying to him: You need legislation to curb these fly-by-night type of outfits that really take unsuspecting people and make them pay a tremendous amount of interest for a service that will perhaps only cost, at the highest, about $5.
I really don’t understand why ministers of the Crown, when they have all this evidence at their disposal, keep on stalling, and do nothing in terms of alleviating the problem. I want to say to the minister that perhaps the reason why he finally did bring in this legislation is because, well, he fumbled the coffee prices. Clearly the minister says in his own words, on radio, on television, all over the place, that he’s the minister who is going to come down like a ton of bricks to protect the consumers. In terms of coffee prices, the bricks have fallen and certainly have crumbled.
[4:00]
Mr. Warner: A ton of feathers.
Mr. Grande: Let me say to the minister through you, Mr. Speaker, that I’m willing to put one little tiny piece of Humpty Dumpty together again, in terms of this legislation. If he will continue to bring in legislation which addresses itself to a need that has been evident for years, then I will certainly do my part to glue another piece of Humpty Dumpty.
Hon. Mr. Grossman: You’re a good guy.
Mr. Grande: I want to read some communications between myself and the previous Minister of Consumer and Commercial Relations regarding this particular problem. The first communication was on May 7, 1976.
Some of my constituents approached me and said, “We’re paying a tremendous amount of money to get our income tax filled out and they’re asking us for 30, 40 and 50 per cent on our returns.” At that time I sent a very nice letter to the Minister of Consumer and Commercial Relations and I said, in essence, “This has been brought to my attention; look into it; investigate it” -- it was a particular company on Yonge Street, Instantax, I think it was. I said, “Investigate it.” As a matter of fact, I ended very nicely by saying, “I would appreciate it if your ministry could look into this matter at your convenience.”
Certainly, he did -- at his convenience. He did answer the letter though, perhaps rather quickly, on March 31. I want to read that letter in totality because the different reasons why the minister stalled in this particular legislation are certainly outlined in that letter.
It says: “The ministry is aware of this and similar operations. Officials visited the 592 Yonge Street location prior to its opening and have been observing it since that time. Although certain aspects of the company’s activities are morally distasteful, investigators have found no evidence that any legislation has been contravened.
“The organization previously operated in Vancouver where it was studied by the British Columbia department of consumer services and ministry officials have been in contact with our BC counterparts as an aid to our investigation. As you may be aware, federal and provincial authorities are currently discussing a new bill tentatively called the borrowers’ protection Act. Our experience with companies such as Instantax will provide additional input with regard to controls on lending.
“I trust this sheds some light on the situation. If I can be of any further assistance please do not hesitate to call on me.”
I did call on him again because the letter he wrote was totally unacceptable to me. If a minister of the Crown tells me that certain activities are morally distasteful and is not willing to bring in any kind of legislation to rectify that situation then I say to that minister, “What on earth are you doing in the government?”
This letter did get me a little angered, so I wrote back to the minister saying: “Your answer has raised many questions in my mind”. This letter was written June 15. “You say that your ministry officials have visited the outfit and have been making observations since prior to its opening. I wonder, Mr. Minister, if you could provide me with a report of the observations your officials have made?” By the way, I never received any report of that. “You say in your letter that you find certain aspects of a company’s activities morally distasteful, but no legislation is being contravened. Then clearly this situation calls for some type of new legislation to stop this legal loan sharking.”
I continued with explaining my constituent’s problem, and said “to his credit my constituent did not make use of the services of Instantax. But how many people did make use of Instantax? How many people have been exploited by this fly-by-night outfit?”
I ended the letter by saying, “Mr. Minister, I urge you to look more seriously into the problem, do a thorough investigation and bring in legislation as soon as possible in order to prevent the exploitation of poor working people in this province by this and any other outfit that might crop up next year at income tax time.”
Nothing took place other than the minister being interviewed by, I guess, the Toronto Star. The story read: “Sidney Handleman, Ontario Minister of Consumer and Commercial Relations, has been pressing the federal government to make such operations illegal.” He was quoted as saying, “They’ll give you 80 per cent of your refund,’ he said in an interview, but if you figure it out, it comes to 500 or 600 per cent interest per annum’.” Now, he had all this information. He had all the information before him, but clearly he did not act.
Mr. Lewis: It takes the young Grossman to act.
Mr. Grande: Suddenly, the last letter --
Hon. Mr. Grossman: The older one might have too.
Mr. Lewis: Must be nice to be your father’s son. I’ve never had that experience myself.
Hon. Mr. Grossman: How do you like it? It’s better to start over here though.
Mr. Grande: The last communication I had with the minister was on June 28, when he said -- and he injected his own opinion, I suppose, rather than that of his officials: “It must be borne in mind legislation cannot be introduced to control every aspect of human life.” I never asked him to introduce legislation to control every aspect of human life, Mr. Speaker. All I was asking him to do was address himself to a real problem that exists, and the minister continued to refuse.
Now comes the new Minister of Consumer and Commercial Relations -- and I use the analogy of Humpty Dumpty who, once he had fallen, in order to set himself upright, introduces this kind of legislation and good for him. I hope, with the fears expressed on this side of the House that this legislation is legal, the minister has looked into it and he has assurances from the Attorney General the legislation is indeed legal.
Mr. Samis: Don’t use him as a source.
Mr. Foulds: His record is not too good.
Mr. Deputy Speaker: The hon. member for Ottawa East.
Hon. Mr. Grossman: If he agrees with me, I’m in trouble.
Mr. Samis: That’s right.
Mr. Roy: Thank you, Mr. Speaker. I rise to make a few comments about this Bill 99, in support of the bill and in support of my colleague, the member for Sarnia, who made certain comments. I was interested as well in the comments made by the member for Beaches-Woodbine.
I’ve got to tell you, Mr. Speaker, as I see all this legislation coming in at this level and at the federal level, both the federal ministry and this ministry in charge of the protection of the consumer, there is a prime example of sometimes how the constitution, the Confederation, of this country doesn’t work, the conflicts that exist and the total and absolute confusion for the poor citizen down there who can’t understand the difference in jurisdiction from one level to another.
First of all, the minister’s predecessor was probably right on the constitutionality of this type of legislation.
Hon. Mr. Grossman: I am okay then.
Mr. Roy: And of course, for political reasons, a minister comes in and says, “I’m going to bring on new vim and vigour to the ministry. I’m going to bring something forward.”
Mr. Lewis: Just trying to resuscitate the family name, that’s all.
Mr. Roy: Yes. “We’re going to bring something in and the way we’re going to get around the constitutionality, because matters concerning interest are federal jurisdiction, we’re not going to mention the word ‘interest’ in this bill and we’re going to talk about” -- as the minister does in this bill -- “95 per cent of the amount without the word ‘interest’.” I may be wrong, but I don’t see the word interest mentioned at all in this legislation.
Hon. Mr. Grossman: Clever, eh? Clever.
Mr. Roy: I see some of the minister’s officials there smiling and shaking their heads in agreement.
It’s unfortunate we have to bring forward legislation in this fashion because there’s no doubt in my mind this type of legislation dealing with this subject matter, especially when the whole sphere of activity we’re trying to control is basically within the income tax field, is in federal jurisdiction. There’s no doubt in my mind the legislation, which is necessary, and I think all of us can agree on this, should have emanated from the federal level. I really don’t think there is any doubt about that.
Hon. Mr. Grossman: As always.
Mr. Roy: It’s unfortunate the initiative was not taken at the federal level because then we would have a uniform law right across the country setting out and dealing directly and specifically with the problem instead of proceeding in the fashion we are. I don’t want to be unduly critical of the people who were involved in the drafting of the legislation. They’re trying to do their best basically in a bad situation. They’re trying to draft a piece of legislation which will serve the purpose the minister has in mind without looking down the road and seeing their legislation challenged in the courts. That’s basically what they’re trying to do.
Often in the process we are coming forward with legislation which is more or less not acceptable. I shouldn’t say not acceptable -- confusing to the public. I suppose it can’t be helped because, especially during the late 1960s and early 1970s, there was great competition on the part of various levels of government to move into the field. The municipal government was involved in this as well. In municipal elections promises were made to do certain things and municipalities brought forward bylaws. Then provincial government pressures were brought on, especially in the consumer field.
This ministry was created in 1967 and the federal ministry was created some time earlier. We have competing fields of jurisdiction moving in trying to solve a particular problem. Unfortunately, because of political pressures or because pressures are being felt more at one level than at the other, one level of jurisdiction moves in and sometimes or very often it’s not the right level. We have confusion in that field.
I have no reservations in saying it would have been a lot better if we’d had federal legislation right across the country dealing with the question of interest, which is the federal field and dealing with the question of income tax, which is basically the problem and which again is in the federal field.
I can only suggest that the new Minister of Consumer and Commercial Relations seems like a very adaptable individual. He’s one who is very flexible.
Mr. Samis: And ambitious.
Mr. Roy: The new federal Minister of Consumer and Corporate Affairs, as they call it -- heck, one has to be a lawyer just to be able to understand the right names in the ministries -- Warren Allmand, should be a fellow with whom this minister can get along.
Mr. Samis: Let’s see how long he lasts.
Mr. Roy: Get the act together to deal with the problem so that there are no conflicting jurisdictions. I can mention others. For instance, consumer protection legislation is questionable as well. There is also the question of the Combines Act dealing with advertising and trying to control the professions to some degree.
Another problem is that the consumer field is relatively high profile. Unfortunately, what has happened -- and I can say this again without reservation -- is at the federal level many promises have been made about specific legislation which was supposed to come forward to deal with a particular problem. They’ve had such a switch of ministries at the federal level and at the provincial level as well. This minister is probably the fourth or fifth since 1967 in that ministry.
Hon. Mr. Grossman: Number eight.
Mr. Roy: He says he’s number eight. One can see it’s tough to get the act together, if during that same period of time at the federal level there were probably eight as well. It’s very difficult to co-ordinate matters when we have changes in ministries.
[4:15]
I can understand to some degree why the minister has to move in with this as other provinces have with their own legislation. I don’t know of any cases where, in fact, their legislation has been challenged. I don’t know if this legislation was patterned after that of any other province. For the consumer, and I am trying to speak here for the consumer, all levels of government should attempt to have something that is neat and cohesive, and represents their jurisdiction within their field. I hope in the future this will happen.
I understand the problems. I sit here in the opposition and I ask “Why don’t you get your act together?” That’s my job. I am here to point out these matters. I do so with a certain amount of frustration when I see competing fields of jurisdiction moving into one area and not moving into another area. The whole process is extremely confusing to the consumer.
Heck, if the members think it’s confusing to the consumer, it’s confusing even for the courts. It’s confusing for the courts. The courts are saying they are overburdened with different cases and different pieces of legislation. I think some day the whole system will topple over. All those law books, all those statutes, all are going to fail on and hurt somebody. You know, the system is all going to come down. We are legislating ourselves into wild abandon. I just feel, unfortunately, it is because various levels of government are not prepared to accept their responsibility.
In the process of drafting this legislation, as has been pointed out by the member for Beaches-Woodbine, your
section 4 is a
section that leaves a lot to be desired. I say respectfully, and I don’t want to be unduly critical again of the people who helped draft this legislation, it goes on to talk about what is an unreasonable charge. I would just like to ask the minister and possibly he could respond, how does one get any satisfaction if there has been an unreasonable charge? Is one charged under this
section if their charge has been unreasonable? Is one charged under the
section when he in fact charges more than 95 per cent? It is far from being clear how one proceeds.
I thought possibly the minister was going to correct this by way of regulation, but then again, let’s not have too many regulations. That’s the other field, Mr. Speaker, where we are being somewhat overburdened. Just all those big blue books we see in the province, all those regulations which we never hear about but which exist and which confuse the issue overburden us. I am not sure the minister can even go ahead with his regulations to say how one complains. Does he complain to the minister? Is that how he gets back what he considers to be an unreasonable charge?
I don’t know whether it was open to the minister and whether his advisers told him maybe it might have been open for him to set out what a reasonable charge is. When you are talking about “consideration shall be given to the time spent” and “the complexity of the return” and all of this, I suppose we could have talked about a fee for service on the basis of hours, so much per hour. I don’t know whether it was open to the minister.
What I am trying to say is if we are passing legislation we should attempt to try to make the role of the courts, or the people and the judge who is going to try to interpret this, as simple as possible. In other words, we shouldn’t try to hide our intention behind certain words or ideas which aren’t all that clear. I say to you,
section 4 is not clear, first of all, as to how you apply it and how the taxpayer under that
section is able to get any remedy.
The other
section which I find helpful is the fact that every discounter must give notice. I say, okay, it’s important that you put up a notice but frankly, I hope with this type of legislation there won’t be any discounters around to put up any notices. If any of them can operate under this section, he’s going to back off once he reads
section 10, subsection 4, where the minister shifts the onus of proof. I could make a very emotional speech about the rights of the individual and the fact that under this
section we are saying to a person, “It is going to be up to you to prove that you did not authorize, permit or acquiesce to this contravention.” That is quite a heavy burden we are placing on an individual.
I don’t have any particular sympathy for the people who are in that field. In fact, I can say with great satisfaction that because of the June 9 election I had the opportunity of moving one of these people out of his premises; I took it over for a headquarters, which is great.
Mr. Samis: Better than a body rub parlour in Vanier, Albert.
Mr. Foulds: They couldn’t tell the difference, before and after.
Mr. Roy: That’s right. Any time you want to be critical, just look at the percentages in Ottawa East. There was a change for the better in the riding of Ottawa East once their sign came down and mine went up.
Having made these few comments -- and I do so with a certain amount of reservation about the process that I am observing -- I think back to the comments of certain of our newly appointed chief judges in this province, who are saying to the Legislatures and to the federal Parliament and to the municipalities, “Please, you are sending enough legislation our way.” Their job is tough enough, not in the sense that we don’t have the right to do what we are doing, but somehow in this country if we could get all our acts together and have something that was more cohesive and within the respective field of jurisdiction, I think the person who would really benefit would be the consumer, who, in fact, we are trying to protect.
Mr. Samis: Mr. Speaker, I would like to make a few remarks on this bill. First of all, I must say I was interested and somewhat amused by the comments of my colleague from Ottawa East on the bill. He says we should place reliance on the federal authority for legislation of this sort. That is an authority, I think as we have just discussed, that has gone through umpteen consumer ministers -- it’s a cabinet post that has been relegated to the political limbo, I think, of Science and Technology, and is for recent washouts in the cabinet.
It’s a cabinet portfolio that can’t even bring in a competition bill in this country. They have been trying for six years or so to bring in a competition bill, supposedly to regulate or at least control monopolies, cartels, and provide some degree of healthy competition in the economy. They can’t do it. So there is no sense placing any reliance on them, because they obviously can’t come across.
Mr. Roy: I didn’t place reliance on them; I said they should have done it.
Mr. Samis: I wouldn’t look to them either, whether it is reliance or looking to them.
Secondly, I must say I don’t share the ambivalence or the legalese concern, I would classify it as, that the minister has for intervening in this area of the marketplace. There are certain times when the minister must intervene to protect the consumer, period, because the inherent nature of the operation is unacceptable, and this is one. I wholeheartedly support the intervention, not with the idea of having total control over the marketplace, not with the idea of wanting to regulate or strangulate every small entrepreneur, but to protect the rights of the consumer from unconscionable profits and exploitation.
I welcome the bill and I will support the bill wholeheartedly. I have mixed feelings about the timing of the bill. In my deeper, darker moments I would ascribe to the minister the anguish that he probably had to overcome from his coffee fiasco, the political credibility he had to restore brought this bill at a very opportune time for his ministry and, obviously, to suit his ambitions. Regardless of that, I am glad to support it and I hope this is an indication of things to come from the minister.
I recall reading his speech to the Better Business Bureau where I think he volunteered to summarize in one word his philosophy towards the ministry; he used the word “activist,” which I would wholeheartedly welcome in contrast to his predecessor. Although I hope he doesn’t conceive of activist as merely being a referee as he is described in a football game. I don’t consider that to be very activist, but that’s beyond the scope of this bill.
I welcome this bill because it represents such a drastic contrast to his predecessor who was an absolute laissez-faire Neanderthal when it came to the question of consumer rights. In fact, my colleague from Hamilton Centre gave me a copy of a letter that outlined some of the views of the former minister, and I will just read into the record one paragraph in reply to a query from my colleague.
He says, and I quote: “Despite the low volume of complaints, the unconscionably high discount and related ‘tricks of the trade’ are unacceptable to us.” This sentence I would really emphasize: “In our view they ought to be prohibited and not merely regulated, even though some other provinces are attempting the regulatory approach. We doubt that the regulatory legislation will be of any practical value in Ontario’s metropolitan areas.” That is obviously the political epitaph of one Sidney Handleman, and one that we can do without, and one that none of us lament on this side.
I want to pay particular praise to the member for Hamilton East for his efforts in raising this in the Legislature. I would think that if he didn’t make a public issue of it and if he didn’t help to build up public pressure and focus on the injustice and the exploitation in this field, that we may never have had this bill in the first place. So I want to put on record my degree of recognition for the work done by the member for Hamilton East on behalf of the consumers, not only of his riding, but of the whole province.
It’s the member for Hamilton Centre, I’m sorry. It’s such a large party now, we have trouble remembering.
Hon. Mr. Grossman: They can both send it out to their constituents.
Mr. Samis: My own personal attitude towards the actual business being affected by this legislation is that for a couple of years this was, I suspect, a problem essentially in the metropolitan areas of Toronto, Hamilton and some of the other larger cities.
But I noticed for example, in my own riding last year that we had the active burgeoning of one of these operations and I suspect if you went around Ontario to smaller, medium-sized, communities, these tax discounters have now wormed their way into virtually every community where they figure there is a profit.
My attitude is that these people are essentially exploiting the misery and weakness of some of our citizens and that frequently their profits are unconscionable. I hope when this bill is passed -- and I would support speedy passage of the bill without any major delays -- the consumers of Ontario will be informed of their rights.
I’ll tell the minister one piece of legislation I thought was a fairly progressive piece of legislation by one of his many predecessors -- the Business Practices Act, which did a lot to improve consumer affairs in this province. I dare say if you went outside this Legislature and stopped 100 people, Mr. Speaker, you would be lucky if you found two at the very most who had ever heard of it and one who even knew what his rights were under such legislation. And I would say that for this government, for this political party -- that it is an extremely progressive piece of legislation. But what good is it if nobody knows what their rights are in the first place?
This is obviously not
an Act that affects nearly as many people, but I would hope that the minister would take some initiative to publicize, for anyone who wants to continue dealing with the remaining discounters, what their rights are as a result of this bill. Because we can pass all the bills and all the laws we want, but if people don’t know and realize and understand what their rights are, they will frequently be exploited and taken advantage of regardless.
So the tougher the minister gets with these birds the better it will be for all of society, and I would fully support the principle of the bill and its speedy passage and implementation.
Hon. Mr. Grossman: I don’t think it would be very useful for the House -- although it may be instructive for some of you -- if I engaged in a long dissertation explaining and defending my predecessor. However, I think the remarks of the last speaker, the member for Cornwall, make a good point in referring to the very progressive Business Practices Act we have in this province, which, he neglected to say, was brought in and passed by my predecessor, the member for Carleton. That speaks volumes, it seems to me, about his contribution in the field of consumerism in Ontario.
Mr. Samis: It was the then member for Niagara Falls. It was John Clement.
Mr. Foulds: John Clement. Come on, get your ministers straight, Larry.
Hon. Mr. Grossman: With regard to the particulars of the Act before us, I think we should look at the circumstances surrounding last year’s discussion. Of course, the Legislature didn’t sit for very long last year -- sorry, this current year, but the last tax year.
Mr. Samis: I wonder why.
Hon. Mr. Grossman: I think we came back at the end of March and we sat for a week or two, didn’t we?
Mr. Foulds: You’re the government.
Hon. Mr. Grossman: This was the same period of time during which the letters were being exchanged between the members of the opposition and my predecessor. My predecessor was making some very good points at that time, points made by the member for Ottawa East this afternoon.
One of the differences, of course, is the fact that we have had some more time this year, since that exchange, to look at some different approaches which may alleviate or eliminate the constitutional difficulties that were foreseen last year.
[4:30]
We have, we think, come up with something that we didn’t have last spring, and that was a bill which we believe will stand up constitutionally. That is a major difference. This government doesn’t believe in passing pieces of legislation which can be clearly and willy-nilly overthrown by the courts. Legislation of that sort is legislation which does nothing but clutter up the law hooks.
Now we have something we think will work. That is a big difference, and that opened the door for us to bring forward today’s legislation. As well, much talk has gone on today about the Borrowers’ and Depositors’ Protection Act, the long promised Act by the federal government. I do want to say that it has become very clear, just in the middle of this year, what with the change in ministers and the obvious shift of that bill to the back burners at the federal level, that indeed we can’t wait any longer, that indeed the Act isn’t going to be coming forward.
So when we find ourselves at the stage at which we have a bill we think will work and is constitutional, and where we see the federal government is still not moving into the field, the conclusion was arrived at that the government must bring in the legislation. I should point out it is substantially the same government as was in office last year, when a different conclusion was reached on the basis of the constitutional difficulties we faced at that time.
A lot of the points raised by some of the speakers today will more properly be dealt with in committee. I understand the mem