Newfoundland and Labrador Hansard — Oral Questions — 17 November 1995 (42nd General Assembly, 3rd Session, Vol. XLII No. 57)

1995-11-17

Newfoundland and Labrador — Debates (Hansard)

Newfoundland and Labrador Hansard — Oral Questions — 17 November 1995 (42nd General Assembly, 3rd Session, Vol. XLII No. 57)

1995-11-17

Newfoundland and Labrador — Debates (Hansard)

November

17, 1995 HOUSE OF ASSEMBLY

PROCEEDINGS Vol. XLII

No. 57

The House met at 9:00 a.m.

MR. SPEAKER (L. Snow): Order, please!

Oral Questions

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

MS VERGE: Thank you, Mr. Speaker.

I have questions about the Budget for the Premier or the

Minister of Finance and Treasury Board. Neither of them is in his seat. I wonder

if the Government House Leader can tell me if the Premier is going to be here

this morning.

MR. ROBERTS: Mr. Speaker, my understanding is that the

Premier is at a conference at the University with respect to -

AN HON. MEMBER: (Inaudible).

MR. ROBERTS: I beg your pardon?

AN. HON. MEMBER: The news said 10:30.

MR. ROBERTS: My understanding is the Premier is at the

meeting now, but my understanding may be incorrect. The Minister of Finance and

Treasury Board I understand will be here but, as we all know, the minister does

tend to operate on Corner Brook time which is fifteen minutes behind St. John's.

AN HON. MEMBER: (Inaudible).

MR. ROBERTS: I will ask one of my colleagues to check. I

don't know where the Minister of Finance and Treasury Board is. I understand he

will be here this morning.

MR. SPEAKER: The hon. the Leader of the Opposition, on a

supplementary.

MS VERGE: Thank you, Mr. Speaker.

This is the second day this week that I have had questions

about the Budget, a subject that is very much in the minds of Newfoundlanders

and Labradorians because of the alarming signals coming from the government, the

panic signals, and the Minister of Finance and Treasury Board has not been in

his seat to answer questions. Can the Government House Leader tell us if the

Minister of Finance and Treasury Board is going to be here for Question Period

this morning?

MR. SPEAKER: The hon. the Government House Leader.

MR. ROBERTS: Mr. Speaker, I just did say to the hon.

lady, but I'm happy to repeat it, my understanding -

AN HON. MEMBER: Here he is.

SOME HON. MEMBERS: Hear, hear!

MR. ROBERTS: Mr. Speaker, may I introduce to the House of

Assembly the Minister of Finance and Treasury Board?

MR. SPEAKER: The hon. the Leader of the Opposition, on a

supplementary.

MS VERGE: Thank you, Mr. Speaker.

Now that the Minister of Finance and Treasury Board is in his

seat, I would like to ask him about his government's approach to budgeting.

The government has been in office for seven budget years now,

and it is clear to Newfoundlanders and Labradorians that the government's

approach to budgeting has been a dismal failure. Seven budget years and repeated

mistakes; spring budgets that are incomplete and misleading; and late fall,

pre-Christmas panic roll backs, cuts and taxes. A pattern has developed. I ask

the Minister of Finance and Treasury Board: Why don't you try a revolutionary

new approach? Why don't you leave well enough alone for this Budget year, for

the four remaining months, and use the next four months to consult, plan - a

revolutionary new concept, plan - and bring in a realistic budget next March for

the next budget year?

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Finance and

Treasury Board.

MR. DICKS: Thank you, Mr. Speaker.

Perhaps we plan to bring in a revolutionary budget plan as of

the end of this month.

The government's record on budget reductions and financial

controls has been exemplary. Since 1979, the government has reduced the fiscal

demands in the Province substantially, it has streamlined services. I am proud

of the record of this government and frankly, we intend to continue it. I expect

that the Province will be very pleased with the direction that the government

will take at mid-year and at the beginning of the new fiscal year. I think there

will be some very important changes made that will be very beneficial to the

financial future of the Province.

MR. SPEAKER: The hon. the Leader of the Opposition, on a

supplementary.

MS VERGE: Thank you, Mr. Speaker.

I ask the Minister of Finance and Treasury Board, how can

good Budget decisions be made about critical areas of public policy,

panic-fashion?

The Minister of Municipal and Provincial Affairs admitted the

other day that, as of a week or two ago, he had no inkling that the Cabinet was

about to make drastic cuts in Municipal Operating Grants. Those cuts were

obviously made rashly, there was no consultation with municipal leaders and the

consequences are just becoming clear.

Now, I ask the Minister of Finance and Treasury Board: Is

this any way to run a Province?

MR. W. MATTHEWS: Yes, get up and answer that, now.

MR. SPEAKER: The hon. the Minister of Finance and

Treasury Board.

MR. DICKS: Thank you, Mr. Speaker.

I don't know where the hon. member gets the impression that

there is any panic. What we are doing is, proceeding very methodically to

examine all areas of government expenditure. What we said in a very

straightforward fashion to the people of the Province, is, we have no interest

in raising taxes because we think, by-and-large, we have reached the edge of

where people find taxes acceptable.

Secondly, we don't believe there many alternatives except to

look at our expenditure program; and, in doing that, we believe that a certain

amount of restructuring will be necessary. Those decisions are being made in a

very methodical fashion; all government programs are being examined and the hon.

Minister of Municipal and Provincial Affairs I think - and I will say to

compliment him - I heard him on CBC television last night, he did an excellent

job and a very straightforward job explaining the difficulties he had; and the

municipal leaders with whom he spoke and who were there, both of whom I know,

were quite understanding, and by-and-large, I believe that municipalities are

supportive, although they will find it difficult. But they know that the problem

is one of the general lesson of economic strength in the country, the fact that

previous governments have added incredibly to the deficit and the fiscal demands

to service interest in this country and internationally. So we are left with no

alternative but to try to make ends meet, but at the end of the day, I can say

frankly that I think we will be a better government for it, it will be more

streamlined and we will deliver services more effectively to the public.

Thank you, Mr. Speaker.

MR. SPEAKER: The hon. the Leader of the Opposition, on a

supplementary.

MS VERGE: Thank you, Mr. Speaker.

To the Minister of Finance and Treasury Board: Can the

minister give any assurance or comfort to taxpayers in this Province? The

taxpayers in Corner Brook who are paying a residential mil rate of 13, taxpayers

throughout who are paying a provincial sales tax of 13 per cent, since the 12

per cent is on top of the GST, that their municipal taxes will not go up. Is the

minister not being inconsistent saying that we have taxed people to the limit,

yet he and his government are cutting municipal operating grants by 22 per cent?

Isn't there necessarily going to be an increase in municipal taxes?

MR. SPEAKER: The hon. the Minister of Finance and

Treasury Board.

MR. DICKS: No, Mr. Speaker. The municipalities face the

same difficulty that we do. What I have said is that as a Province I believe

there is very little acceptance on the government side. Perhaps the Opposition

is more in favour of it, but we do not like the idea of raising taxes. Maybe the

Leader of the Opposition thinks that is an acceptable thing to do in this day

and age but people I speak with, my constituents, her constituents in Corner

Brook, and the people I meet around this Island do not want tax increases. So,

what should we do? Should we increase taxes to pay more civil servants on a

structural basis?

MR. SPEAKER: Order, please!

I believe I heard the hon. the Member for St. John's East

Extern say `cowards.' That is certainly unparliamentary and I ask the hon.

member to withdraw it.

MR. J. BYRNE: Mr. Speaker, I apologize and I withdraw the

remark.

MR. SPEAKER: The hon. the Minister of Finance and

Treasury Board.

MR. DICKS: Thank you, Mr. Speaker.

In answer to the second part of her question I say frankly

that there is no need for municipalities to raise taxes any more than it is for

this government. What we all have to do is look at our fiscal requirements and

if we are not going to meet them with the revenue at hand we can diminish

services, we can look at the structure and the number of people we need, or that

we think we need to deliver the services. Frankly, l think there is room both at

the municipal and the provincial level for a more streamlined delivery of the

services we have.

Thank you, Mr. Speaker.

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

supplementary.

MS VERGE: Mr. Speaker, the Minister of Finance says he

does not like the provincial government raising taxes. Is that why they are

making volunteer municipal councillors do the dirty work and raise taxes?

MR. SPEAKER: The hon. the Minister of Finance and

Treasury Board.

MR. DICKS: I do not know if the hon. member does not

understand the nature of separate jurisdictions. The federal government has cut

back on provincial programs. The federal government is not making us raise

taxes. In looking at our overall spending program we feel it is necessary, and

believe it is fair, to reduce the level of assistance we have been giving to

municipalities. That has been cut substantially at our end and in a lot of cases

it does not amount to more than 2 or 3 per cent of some municipal budgets in

this Province. I think it behooves the municipalities to look closely at their

expenditures and to streamline them.

What I hear from taxpayers all around this Province is that

they do not want taxes raised, federally, municipally, or provincially. They

want them reduced and they are prepared to look at less people working for

government, both at the municipal, federal, and provincial level, in order to

achieve that social good.

Thank you, Mr. Speaker.

MR. SPEAKER: The hon. the Member for Green Bay.

MR. HEWLETT: Thank you, Mr. Speaker.

In Question Period the other day I questioned the Minister of

Natural Resources with regard to Voisey's Bay and the timing of a tax reduction

for the mineral industry versus the finding of that particular mineral find. The

minister assured us there is nothing untoward there and that certain adjustments

would be made in the tax regime because Voisey's Bay was rich beyond their

dreams. I ask the minister, when are we going to get this dream adjustment? If

we compare it to the previous tax level will this dream adjustment bring in less

revenue than before, equal to the previous tax revenues or greater than what we

could have had before?

MR. SPEAKER: Order, please!

The hon. the Minister of Natural Resources.

DR. GIBBONS: Mr. Speaker, we've said it numerous times, I

guess I can say it again. The same old question, yes, same old answer. We have

said that we plan to make the appropriate adjustments in this session, we plan

to do that. We are not going to be rushed into doing something until we are

satisfied that we have thoroughly analyzed it and that what we are doing is

right and appropriate for this Province. We will do it when it is right and

appropriate, when we have analyzed it properly. That is when it will happen.

MR. SPEAKER: The hon. the Member for Green Bay.

MR. HEWLETT: Again, Mr. Speaker, the minister refuses to

be definitive, even to lay out the groundwork as to whether or not the money

gotten will be equal to what we would have gotten before or even better, it

could well be less obviously.

Mr. Speaker, in the paper yesterday a spokesman for Inco

talked about his involvement with Voisey's Bay and how that would make Inco

stronger and help drag Sudbury along and so on, so forth. I attended a luncheon

at the mining conference where a gentleman from Inco spoke and he basically put

down the Voisey's Bay thing and put it in the overall context of his world

developments. I would ask the minister, who is running the show here? Is it the

Government of Newfoundland and Labrador or is Inco, in its capacity as a

minority shareholder in this development, really the tail that wags the dog?

MR. SPEAKER: The hon. the Minister of Natural Resources.

DR. GIBBONS: There is no question about who runs the

show, Mr. Speaker. This is our resource. It is a resource in the Province of

Newfoundland and Labrador and we run this show and we are going to ensure that

it is done in the best interest of the people of this Province.

MR. SPEAKER: The hon. the Member for Menihek.

MR. A. SNOW: Mr. Speaker, my question is to the Minister

of Social Services. I am sure she is aware of the confidential nature of the

information that her department has on file with regard to the -

MR. SPEAKER: Order, please!

MR. A. SNOW: This information is very confidential,

financial information, psychological assessments and that type of thing. I

wonder if the minister can tell the House and the people of this Province what

safeguard she has put in place to protect this very confidential information?

Can she tell us what safeguard she has put in place to protect the

confidentially of this?

MR. SPEAKER: The hon. the Minister of Social Services.

MS YOUNG: Thank you, Mr. Speaker.

We take every precaution that we can to ensure that the

information that flows back and forth from head office to the district offices,

regional offices, and the same way back and forth between the offices; however,

there are incidents where a number - and I think I am aware of what the member

is referring to. Any time that there is a mistake made in transferring

information via fax there could be a mistake in punching in the numbers, and I

am certainly aware of any concerns that the member might have.

MR. SPEAKER: The hon. the Member for Menihek on a

supplementary.

MR. A. SNOW: Mr. Speaker, I will not say that the

minister is deliberately misleading the House, but would she want to reconsider

what she just stated, that there were people punching in wrong numbers, and that

type of thing is the only breech of confidentiality that has occurred? Can she

confirm that, indeed, information has been sent to a construction company

several times in the last several weeks - several times sent to a construction

company - and officials in her department have been informed of it, and yet this

information continues to arrive at this construction company rather than a

social services office in Wabush?

MR. SPEAKER: The hon. the Minister of Social Services.

MS YOUNG: Yes, Mr. Speaker, thank you.

I am aware of it. It came to my attention yesterday, and

every precaution has now been taken to rectify that situation. It is very

unfortunate, and when I became aware of it I put measures in place to deal with

it.

MR. SPEAKER: The hon. the Member for Menihek on a

supplementary.

MR. A. SNOW: Mr. Speaker, the minister mentioned that she

did every possible thing to correct this. Will she confirm that officials in her

department published a booklet in June of this year with a fax number for the

Department of Social Services office in Wabush, the incorrect number, that

officials in her department were informed of this months ago and they did

absolutely nothing about it. Because of budgetary restraints they refuse to

reprint a page or correct the mistake in this booklet, and that is why this

travesty of justice has occurred, and that is why this personal, confidential

information has been released to people who should not have it, and that she is

responsible for it because of the budgetary cuts.

MR. SPEAKER: Order, please!

SOME HON. MEMBERS: Hear, hear!

MR. SPEAKER: The hon. the Minister of Social Services.

MS YOUNG: Thank you, Mr. Speaker.

As I said, the number has now been corrected and, of course,

I would not be able to go through the directory and make sure that every number

is correct. It was brought to my attention, Mr. Speaker, yesterday and it is

certainly being dealt with.

MR. SPEAKER: A final supplementary, the hon. the Member

for Menihek.

MR. A. SNOW: Will the minister confirm - I will ask again

- that officials in her department were informed of this mistake months ago?

They were informed of it months ago and did absolutely nothing about correcting

this mistake, and that is why, because of budgetary restraints -

MR. SPEAKER: Order, please! Order, please!

The hon. member is on a supplementary.

The hon. the Minister of Social Services.

MS YOUNG: It was brought to my attention yesterday and it

is being dealt with. It has nothing to do with budgetary cuts.

MR. SPEAKER: A final supplementary, the hon. the Member

for Menihek.

MR. A. SNOW: Mr. Speaker, it has come to my attention

that the reason for not correcting the mistake was because of the cost of

inserting an extra page rather than just sending out a telephone call to

offices. Is that correct?

MR. SPEAKER: The hon. the Minister of Social Services.

MS YOUNG: Mr. Speaker, that is utter nonsense.

MR. SPEAKER: The hon. the Member for St. Mary's - The

Capes.

MR. MANNING: Thank you, Mr. Speaker. My questions are

also for the Minister of Social Services. They concern the Vera Perlin Society.

As the minister is fully aware, over the past number of weeks we've made

representation on behalf of the Vera Perlin Society as it tries to find funding

to access another centre. I would like to ask the minister, over the past couple

of hours we have learned that after meetings with the Premier and meetings with

the minister that two directors from her department informed the Vera Perlin

Society that it will receive no funding. I ask the minister: Is this proper for

a minister of the Crown to instruct her directors to pass on the bad news to

this very important society?

MR. SPEAKER: The hon. the Minister of Social Services.

MS YOUNG: Thank you, Mr. Speaker. I would like to respond

to the question by saying that we have met with the Vera Perlin Society. I'm

very pleased with the work that the Vera Perlin Society has done for the

developmentally delayed people of this Province. However, at this time I have to

confirm that we do not have the dollars to provide the funding to the Vera

Perlin Society to commence work on another facility, a training centre as they

have now.

MR. SPEAKER: A supplementary, the hon. the Member for St.

Mary's - The Capes.

MR. MANNING: Mr. Speaker, over the past number of weeks

we have listened to ministers opposite talk about restraint, talk about fiscal

problems that they have had. I would like to ask the minister: Doesn't she

realize that sending these people home - because basically that is what is going

to happen to these people at the end of December - and not allowing people who

are on the waiting list to partake in training is going to cost this government

much more dollars than what it has cost to put them in the centre for training?

MR. SPEAKER: The hon. the Minister of Social Services.

MS YOUNG: Thank you, Mr. Speaker. I guess the hon. member

didn't hear the president of the Vera Perlin Society on the radio this morning.

I listened to him with great interest and he said that the Vera Perlin Society

will work on different, I guess, solutions to the problem. One of the solutions

that they talked about was the shift system for the current members of the Vera

Perlin Society. Unfortunately, they do have a waiting list, as do a lot of other

organizations in this Province and, at this point in time, at a time when I have

been asked to look at cuts to my budget, I regret that I am unable to supply the

funds they need.

MR. SPEAKER: The hon. the Member for St. Mary's - The

Capes, on a supplementary.

MR. MANNING: Thank you, Mr. Speaker.

I say to the minister, the Vera Perlin Society has no choice

- when you are thrown over the wharf, you either swim or drown.

I say, Mr. Speaker, that you are going to throw these people

out on the street, a cold, callous act by this minister to these people who need

this training.

I ask the minister: Would she, once again, once again, try to

find the funding that is needed to put these people in the proper training that

they need to live normal lives in this Province?

MR. SPEAKER: The hon. the Minister of Social Services.

MS YOUNG: I take exception to that, Mr. Speaker. We

didn't throw anybody over the wharf - that is utterly ridiculous!

AN HON. MEMBER: (Inaudible) thrown over the wharf, is

him.

MS YOUNG: Yes, I agree with you.

Unfortunately, the Vera Perlin Society find themselves in a

position that they are unable to provide the space to the people they serve, and

I can certainly understand the dilemma they are faced with, but we also have a

dilemma that we have to deal with. Even today, we are looking at ways that we

can deal with all of the problems that we have out there around training for the

developmentally disabled. We will do a review of all the dollars that we are

putting into that area and hopefully, the right solutions will be found to deal

with all of the people out there who require the services of our department.

Again, I want to say, that we are very, very, appreciative of the service that

the Vera Perlin Society have provided to the people they serve.

Thank you.

MR. SPEAKER: The hon. the Member for St. John's East

Extern.

MR. J. BYRNE: Thank you, Mr. Speaker.

I have a question for the Minister of Employment and Labour

Relations; then, I was planning to go to the Premier but he is not in his seat,

either, Mr. Speaker, so I will go to the Government House Leader.

Could the minister confirm that hundreds of workers at the

Hibernia site are working under permit, which means that they are union members

while employed at the site, and once finished, they are not part of the union

anymore, thus not eligible for financial benefits associated with being part of

the union, even though they have contributed significantly to the union?

MR. SPEAKER: The hon. the Minister of Environment.

MR. AYLWARD: Thank you, Mr. Speaker.

As the alternate minister, Mr. Speaker, I will take it under

advisement -

SOME HON. MEMBERS: Hear, hear!

MR. ROBERTS: Byrne primus reads the question, you will

read the answer.

MR. AYLWARD: That's right. I mean, that was a detailed

question. We will undertake to get the answer very quickly and get back to him

this morning.

MR. SPEAKER: The hon. the Member for St. John's East

Extern, on a supplementary.

MR. J. BYRNE: Thank you, Mr. Speaker.

Does the minister find it acceptable that hundreds of permit

workers, who contributed hundreds of thousands, possibly millions of dollars to

the international union pension fund, which is controlled outside this Province,

will not get their money back or receive benefits that their hard-earned money

should have earned them?

MR. SPEAKER: The hon. the Minister of Environment.

MR. AYLWARD: Mr. Speaker, I won't comment any further

until we get the details so that we can respond with the facts to deal with his

question and I undertake to do that. We will do it as quickly as we can and get

back to the House of Assembly to provide the information.

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

MR. W. MATTHEWS: Thank you very much, Mr. Speaker.

I have a question for the Minister of Education and Training

and I want to emphasize to the minister, it is a question, not a suggestion, so

he doesn't put a twist on it as he did the last time I stood in my place.

I want to ask the minister: The teaching profession is

rampant with rumour that the government is seriously considering - we call it an

early retirement program for teachers - those with a minimum of twenty-five

years service would be offered a package to retire so that would give the

minister some flexibility to -

SOME HON. MEMBERS: Oh, oh!

MR. W. MATTHEWS: Members can laugh all they like but, I

mean, it is a matter that is taken very seriously by the teachers of the

Province.

MR. TOBIN: It is not like `Roger' with his teacher

pension (inaudible).

MR. W. MATTHEWS: He doesn't care anymore; but, Mr.

Speaker, is the minister considering this to give his department flexibility to

implement his teacher certification program? Because, unless they get new blood

in the profession, I can't understand how the minister is really going to

implement the new teacher certification program.

MR. SPEAKER: The hon. the Minister of Education.

MR. DECKER: Mr. Speaker, I am sad it is not a suggestion.

The hon. member will know that the pension funds in this

Province are in a terrible mess today, and whoever would even dream that

government is considering pensioning teachers after twenty-five years, I would

have to tell the hon. member, they are dreaming in Technicolor. There is

absolutely no basis for it whatsoever.

MR. SPEAKER: The hon. the Opposition House Leader on a

supplementary.

MR. W. MATTHEWS: Thank you very much, Mr. Speaker.

It seems as if there is a lot of dreaming on the other side,

I say to the Minister of Education.

AN HON. MEMBER: There is a lot of dreaming over there.

MR. W. MATTHEWS: Yes, but they are good dreams, I say to

the minister; they are not the nightmares the minister is going through now on a

daily basis.

SOME HON. MEMBERS: Hear, hear!

MR. W. MATTHEWS: Mr. Speaker, let me ask the minister

this: Right now there is a provision for teachers to take a `thirty and out'

option. Is government considering doing away with that `thirty and out' clause

for the teaching profession, in light of budgetary problems? Or is the minister

hoping to address this in the upcoming negotiations with the NLTA?

MR. SPEAKER: The hon. the Minister of Education.

MR. DECKER: Mr. Speaker, that question would probably be

better answered by the Minister of Finance, but I am not aware of any deliberate

attempt by government to abolish `thirty and out' or not to abolish it, but I

would suggest, and I think the President of Treasury Board could correct me if I

am wrong, that in the upcoming negotiations everything will be on the table, and

after the negotiating period - but I can tell the hon. member, I can reassert,

that, as the hon. member knows, our pension funds are in a terrible mess, and I

think it is more important to deal with it when you are forty-five or fifty

years old than to deal with it when you are seventy years old and then the thing

goes `busted'. That would not be a good thing to do.

MR. SPEAKER: The hon. the Member for - the hon. the

Leader of the Opposition - the hon. the Opposition House Leader, on a

supplementary.

MR. W. MATTHEWS: Thank you very much, Mr. Speaker.

MR. SPEAKER: I will get it right after awhile.

MR. W. MATTHEWS: Thank you very much for your vote of

confidence.

It seems the minister, really, has indirectly answered my

question. It seems to me that the `thirty and out' option for teachers in this

Province is certainly on the blocks, I say to the minister. but I want to ask a

final supplementary of the minister, something I asked a few weeks ago about an

alleged situation with the Central Regional College, at the time involving two

people who were supposedly using college vehicles for private use. The minister,

at that time, said it was under investigation. Can the minister report to the

House whether there has been a conclusion to the investigation, and what the

results are?

MR. SPEAKER: The hon. the Minister of Education.

MR. DECKER: Yes, Mr. Speaker, we received an anonymous

letter telling us that two people working at the college had used a government

vehicle in an improper manner. We did follow up with an investigation, and in

the case of one person there was absolutely no basis whatsoever. The person did

leave the Province, but he was accused of taking his son or daughter to

university. There was no truth to it whatsoever; his son or daughter did not

attend, but went to the university, I think, two or three weeks before that

event.

In the case of the other person, it seems that indeed the

person did attend some functions on behalf of the college and take his son or

daughter to the university at the time. We did advise the person in charge, the

person who did this -

AN HON. MEMBER: (Inaudible).

MR. DECKER: Mr. Speaker, the hon. member has asked me a

question. If they want to hear the answer I will answer. If they don't,

(inaudible) outside the House.

In the case of the other person, it was probably poor

judgement as opposed to deliberately doing anything improper. He indeed did

attend some functions on the Mainland, and went in a government vehicle, which

was quite proper to do - it didn't cost any more by doing it that way; it

probably cost less - but it is one of these things which did not look proper, so

I think it was a case of poor judgement as opposed to doing anything which was

illegal or maliciously wrong. The person has since apologized for his action,

and assured that it won't happen again.

MR. SPEAKER: The hon. the Opposition House Leader, on a

supplementary.

MR. W. MATTHEWS: Thank you very much, Mr. Speaker.

The minister was a little forthcoming in his answer, but let

me ask him this: The person who used bad judgement, poor judgement, two things:

Was it the president or the director, or the principal or the director? And will

the person who used the vehicle for private use be reimbursing the college?

MR. SPEAKER: The hon. the Minister of Education and

Training.

MR. DECKER: Mr. Speaker, I didn't say the vehicle was

used for private use. I don't think the hon. member heard me say that.

AN HON. MEMBER: Yes you did.

MR. DECKER: I said - well, if I said that I will withdraw

it, it was wrong. It was not used for private use. The person I am talking about

is the principal of the college for Central Newfoundland. He attended some

functions on the mainland which were quite legitimate functions in his job as

principal of that college. During that visit, he took his son along with him to

attend the university. I just forget the details.

If he had not taken his son along, he still would have made

the visit, still would have done the same thing. So I suppose there is nothing

illegal or wrong about that. However, some people were offended by this and read

some motives into it, of which, certainly on the surface of it, we cannot

substantiate these accusations. But it was a case of poor judgement as opposed

to doing anything deliberate. If I said that he used it for personal use, I

withdraw that. I didn't intend to say that. I think Hansard will show that I did

not say that, Mr. Speaker. He made a legitimate business trip on behalf of the

college and took his son along at the same time.

AN HON. MEMBER: Not so.

MR. DECKER: If the hon. member says that is not so, and

has some proof of that, put it on the table and I will deal with it. But if the

hon. member is making an accusation he had better be prepared to substantiate

it.

MR. SPEAKER: The hon. the Member for Ferryland.

MR. SULLIVAN: Thank you, Mr. Speaker.

I have a question for the Minister of Health. The Health Care

Corporation of St. John's experienced a budget shortfall of $1.4 million in the

first quarter. With the second quarter well beyond its point by a

month-and-a-half, I ask the minister if this shortfall has been recovered, and

could he now tell us the fiscal position of the Health Care Corporation after

the semi-annual update?

MR. SPEAKER: The hon. the Minister of Health.

MR. L. MATTHEWS: Thank you, Mr. Speaker.

The Health Care Corporation, like any other hospital board,

is given a yearly budget. The fact that they may have had a shortfall of $1.4

million the first quarter does not indicate that that will follow through the

year and that it has to be that situation at the end of the year. Any

difficulties that any health hospital board, including the Health Care

Corporation, have in budgets, they work it out through the year. They are

addressing any budgetary problems they might have. They have not come to me and

said: We need more money. They have said: We are dealing with any problems we

have in a responsible way.

I am confident that the Health Care Corporation will come

within budget, if at all possible. If not, there will be a more than adequate

explanation given by them, and certainly by us, to the people of the Province on

that account.

MR. SPEAKER: Order, please!

Question Period has elapsed.

Orders of the Day

MR. SPEAKER: On a point of order, the hon. the Member for

Mount Pearl.

MR. WINDSOR: Mr. Speaker, more or less by way of a point

of clarification and let me be very clear in the beginning, not to challenge

Your Honour's ruling a few moments ago in relation to my friend from St. John's

East Extern. Beauchesne is very clear that no words are deemed to be

unparliamentary in every sense of the word nor are they deemed to be not

parliamentary in every sense. Every circumstance is different, it depends on the

timing, the circumstances, the tenure of the House at the time, how it is said,

whom it is said by and to whom it is said. So there are no hard and fast rules.

Beauchesne is very clear,

Section 486, page 143 of the sixth

edition, it reads here; "There are few words that have been judged to be

unparliamentary consistently, and any list of unparliamentary words is only a

compilation of words that at some time have been found to cause disorder in the

House." I am sure Your Honour would want to say that the reverse is also true.

Words that are deemed to be parliamentary some times may well be judged by Your

Honour to be unparliamentary at other times. I am not questioning the fact that

the ultimate authority is Your Honour and that you may judge at one time that a

word is parliamentary and rule it in order and another time you may rule it to

be unparliamentary and out of order. I just want to, for the record, Mr.

Speaker, so that we know where we sit on this refer to Beauchesne,

Section 489,

it says: Since 1958, it has been ruled unparliamentary to use certain words. In

Section 490, it says: Since 1958, it has been ruled parliamentary to use certain

words.

In the list of words that have been ruled as parliamentary

`coward' appears here in debates of April 1, 1976, pages 12386, 12409 and 12410.

So clearly the word, `coward' is listed in the words that have been ruled to be

parliamentary. Now I don't question the fact that there may well be

circumstances where Your Honour may rule that word or any word to be out of

order,

whereas in general terms, Your Honour may choose to rule it as being in

order. I simply want to say that the practice in this House - we have accepted

many, many occasions Your Honour, the word coward being thrown back and forth

across the room. I don't want to set a precedent by your ruling that would in

time have every word that we use in this House because we could carry this to

the extreme, that every word that we use in this House from time to time might

be ruled unparliamentary and there may be precedents set by Your Honours ruling

that we would be bound with in the future. The rules of this House are, as Your

Honour knows well, that our own precedent governs our Standing Orders -

precedent in this House and subject secondary to that of course, Beauchesne and

the rules and precedence used in parliament in Ottawa, Mr. Speaker.

So I simply want to say, Mr. Speaker, that we have to be very

clear. The context in which a word is said, in this case the word, `coward'. Now

if my friend was referring to, for example, the Minister of Social Services

having her directors advise the Vera Perlin Society that funding was not

available. My minister might say, `that is a cowardly thing to do.' Hardly, Mr.

Speaker, a terrible slur.

MR. SPEAKER: Order, please!

I ask the hon. member to get to his point.

MR. WINDSOR: I am just about finished, Your Honour.

However, if an hon. member had returned for more and my

friend had said, `you are a coward because you did not go over the wall to

defend your country.' Now that would be a very serious offense and no doubt the

member would have the right to take offense to it. So what I am saying, Mr.

Speaker, is that the context is important.

MR. SPEAKER: Order, please!

I ask the hon. member -

MR. WINDSOR: Thank you.

MR. SPEAKER: On a point of order, the hon. the Government

House Leader.

MR. ROBERTS: Mr. Speaker, I would like to respond to the

pompous prattle we have just heard.

SOME HON. MEMBERS: Hear, hear!

MR. ROBERTS: Mr. Speaker, the rules are very clear, it is

for Your Honour to decide whether an expression is unparliamentary or not. The

rule is very clear. What we had was pompous prattle from the hon. gentleman from

Mount Pearl lecturing Your Honour, which I suggest with respect, is offensive.

Not only that, Mr. Speaker, I suggest with respect -

MR. SPEAKER: Order, please!

MR. ROBERTS: Mr. Speaker, I am speaking to a Point of

Order.

AN HON. MEMBER: Sit down, Neil.

MR. ROBERTS: I suggest, Mr. Speaker - you don't know any

ruling, sit down.

MR. SPEAKER: Order, please!

The Chair would first of all like to rule on the Point of

Order raised by the hon. member. Let me say that there are occasions when

certain words are acceptable and when they are unacceptable. The hon. member

when speaking was responding to what the hon. Minister of Finance was saying and

clearly he said `coward.' I understand that to be referring to the hon. Minister

of Finance and certainly it is unparliamentary to call anybody in this House a

coward.

MR. WINDSOR: I thank you for your ruling, Mr. Speaker,

and I refer to Beauchesne again.

MR. SPEAKER: Order, please!

I also want to inform the hon. members that in our own

Standing Orders, before you get to the point of order, Standing Order 31 says

that the Speaker's rulings relating to oral questions are not debatable or

subject to appeal.

MR. WINDSOR: Is it proper to ask a member to shut up? May

I ask Your Honour that question?

MR. SPEAKER: Order, please!

I did not hear any hon. member say it.

MR. WINDSOR: Thank you, Mr. Speaker.

SOME HON. MEMBERS: Oh, oh!

MR. WINDSOR: This is a new point of order, and let me

simply say that I think I made it clear in my submission that Your Honour is the

final arbitrator and I in no way would challenge, or wanted to challenge Your

Honour's right, an absolute right at any time to interpret any word as he might

see fit. I would refer however to Page 147 of Beauchesne and the list of words

that have been deemed unparliamentary. Clearly the word `pompous' is listed as

being unparliamentary and I ask Your Honour to direct the buffoon over there to

withdraw that immediately?

MR. SPEAKER: The hon. the Government House Leader to the

point of order.

MR. ROBERTS: If I used an unparliamentary phrase, of

course, I withdraw it without hesitation. It is also unparliamentary to call the

hon. gentleman a bag of wind, and I did not use that phrase either, Mr. Speaker.

Mr. Speaker, the whole point of this is that the hon. member

was challenging your ruling by the subterfuge of raising a point of order which

is specious and I resent that Sir. It is an abuse of the privileges of every

member of this House.

MR. SPEAKER: Order, please!

I understand that the hon. member has withdrawn the

statements he made. Answers to Questions for which Notice has been Given. Oh, I

am sorry; we are at Orders of the Day.

The hon. the Government House Leader.

MR. ROBERTS: John Carter, I say to my friend for Burin -

Placentia West once called an hon. member a quagga, q-u-a-g-g-a. I commend it to

my hon. friend to find out what it is. I would never call my hon. friend a

quagga. It is a word found in the dictionary.

Your Honour, before we get into the orders may I take a

moment to discuss the business of the House because members will be distressed

to know that I will not be here at noon. I have to go at 11:00 o'clock because I

have an encounter with the dentist. The Chair of the Standing Committee on

Government Services sent me a notice and I think it is appropriate to inform the

House that the committee wish to use the power conferred on them by Standing

Order 54.2 sub (1) and that is they wish to consider the Credit Union bill which

was given second reading here in the House the other day, so that process will

take place. I believe several members wish to go into details of the bill and

also, I believe, several members perhaps wish to ask witnesses to come forward,

so that will be dealt with in the appropriate way.

Secondly, may I advise the House that given what I understand

to be the desire of every member on the other side to speak at length on the

Electoral Boundaries bill and given our desire to accommodate them, we will

suggest that the House be prepared to sit late on Monday and Tuesday nights.

MR. TOBIN: We will sit a lot of nights.

MR. ROBERTS: It may well be. What the hon. Member for

Burin - Placentia West is doing is confirming the wisdom of the decision of

those of us on this side to provide him with whatever time he is entitled to

under the rules to give us his comments on that bill, and we shall gladly do

that. What I am doing is advising members of the fact that we shall be asking

the House to sit through the 5:00 o'clock until not later than 10:00 Monday

night and Tuesday night to deal with the bill. We want to give members the

chance to express their thoughts.

MR. WINDSOR: (Inaudible).

MR. ROBERTS: The hon. gentleman - I cannot call him

pompous so I won't - the hon. gentleman who is not pompous is once again

interrupting rudely and, you know -

AN HON. MEMBER: (Inaudible).

MR. ROBERTS: Neil, don't get me into a discussion with

you. Getting into a discussion doesn't help anything.

Now Your Honour, with that said let us go on to the -

MR. WINDSOR: Afraid to debate it openly, aren't you?

(Inaudible).

MR. ROBERTS: Mr. Speaker, my hon. friend says I'm afraid

to debate it openly. I would ask him, when he was Minister of Finance, why he

didn't come to this House and ask the House of Assembly to approve the $24

million they had lashed out on Sprung? He was party -

SOME HON. MEMBERS: (Inaudible)!

MR. SPEAKER: Order, please!

SOME HON. MEMBERS: (Inaudible)!

MR. SPEAKER: Order, please!

The Chair has called Orders of the Day. We are now getting

into a debate. I ask the hon. member to get to the orders.

MR. ROBERTS: I regret, Mr. Speaker, that I allowed the

gentleman for Mount Pearl to lead me astray.

Your Honour, would we please call Motion No. 5, which is a

first reading, and then that bill is ready for distribution. I understand it

will be here before the House rises. That done, could we go into Committee, Sir,

and we will deal with the resumed debate on Motion No. 2. If we finish that then

we will go on to Motion Nos. 1 and 4 in that order, but I'm not presuming we

will get beyond Motion No. 2. That is a matter for the Committee and for the

House to decide.

Your Honour, would you first please call Motion No. 5?

Motion, the hon. the Minister of Justice to introduce a bill,

"An Act Respecting The Investigation of Fatalities," carried. (Bill No. 36)

On motion, Bill No. 36 read a first time, ordered read a

second time on tomorrow.

On motion, that the House resolve itself into Committee of

the Whole, Mr. Speaker left the Chair.

Committee of the Whole

MR. CHAIRMAN (Penney): Order, please!

Motion No. 2.

The hon. the Member for St. John's East Extern.

MR. J. BYRNE: Thank you, Mr. Chairman. I would like to

say a few words on Bill No. 14,

An Act To Amend The Local Authority Guarantee

Act, 1957.

Bill No. 14 basically gives the towns, the municipalities or

the community councils within the Province the right to borrow funds to run

their communities. Basically since this government was elected in 1989 it has

been down loading on the municipalities in this Province, and it is basically

forcing these towns to borrow and to go further in debt. The towns too, now they

are in a position where they find it very difficult to borrow any more money and

so they are looking at, now, cutting services such as street lights within the

municipalities and the towns. Some of the municipalities in this Province today

are basically turning off their street lights. Garbage collection, I would say,

is the next one to be hit. Some towns and cities are collecting garbage,

household refuse, two times a week. That probably will be cut back to once a

week, and possibly once every two weeks.

Snow clearing in the Province, in the municipalities around

this Province, in the towns, last year the funding for the road maintenance and

the snow clearing in the Province was cut. The Department of Works, Services and

Transportation basically told the communities that it would not be responsible

for snow clearing and paying for snow clearing in the Province and the

municipalities, within the towns and community councils, and it cut funding to

the municipalities. So the municipalities are finding it very hard.

Basically, this government has been down loading, as I said,

since it was elected in 1989. Last year the government talked about a balanced

budget and it basically balanced the Budget, or the so-called balanced Budget,

on the backs of the health care in this Province. This year it is looking at the

municipalities for some help in balancing its Budget. The Minister of Finance

and Treasury Board was asked a question this morning with respect to the

municipalities. He said they are not raising taxes in the Province, that there

are three different levels of government in this Province, the municipal,

provincial and federal, and the municipal governments themselves are raising the

taxes, but in actual fact it is a direct result of the down loading and the

cutbacks that this government is forcing upon the municipalities in this

Province.

The towns in this Province that have water and sewer over the

past number of years has seen their debt retirement to the Province doubled.

They have seen their municipal grants cut by as much as 50 per cent and 60 per

cent, so in actual fact they are upwards of 100 per cent since this government

was elected in '89.

This government has also, since '89, this past year, looked

at education reform, and is looking at saving dollars within the education

reform. They had the referendum on that, wasted basically $2 million. The bill

has gone through the House, or the resolution has gone through this House, to be

sent to Ottawa. I remember the Premier saying on a number of occasions that that

would go through the House of Commons before this Christmas, and it is not

likely to go through the House of Commons this spring, and maybe not the winter,

so that is another $2 million that this government could have had to help

balance their budget - $2 million of the $4 million they are looking for from

the municipalities.

The municipal operating grants have been restructured since

this government has come in, which has a negative impact on a lot of the towns,

and somewhat a positive effect on a few of the smaller municipalities - I will

give them that - but this year, with the 22 per cent cut that this government is

putting on the towns within this Province, it is a very hard, a very harsh, move

and the Minister of Municipal and Provincial Affairs has actually stated that

the grants to the municipalities may end in the near future, maybe in the time

of the mandate of this government.

When this government was elected they campaigned on a number

of issues, and I think one of those issues was the support of the municipalities

in this Province, but since they have been elected they have been cut, cut -

every year they have been cut - and now they are getting to the point where the

towns are going to have to become completely self-sufficient, so that brings up

another question. If the towns do become completely self-sufficient, and they

are getting no grants from the provincial government at all, or the Department

of Municipal and Provincial Affairs, then what autonomy will be given to these

towns? What autonomy that the Department of Municipal and Provincial Affairs

have at this point in time, what autonomy will be passed on to the towns

themselves? If they are getting no revenues from the provincial government,

should they be required to follow the regulations that are brought in by the

Department of Municipal and Provincial Affairs?

Another down loading that the municipalities have had since

this government was elected is the roads component of the grants. When this

government took over in 1989 the towns themselves were getting as much as $2,200

per kilometre per year. Now that has been cut down to as little as $60 per

kilometre per year, which has had a very, very negative impact upon the

municipalities within this Province.

When I ran for council back in '86, I ran to become a

councillor and ended up as mayor of a small town, and I was quite proud to be

elected as mayor of a small town in this Province. I basically contributed

thousands of hours, volunteered thousands of hours, to the municipality that I

lived in, and was pleased to do that. Actually, I was the first mayor and we

ended up with a nice town, a town that was in the black, that did not have any

debt. When I was running to become elected to council, I ran on the campaign

that we should stay away from water and sewer, and some of the people in the

town, and some of the people in the neighbouring towns, thought I was crazy not

to be going after water and sewer funding, but my point at the time was that it

was too heavy a burden, too heavy a debt, and the cost per unit to install water

and sewer in this Province was just outrageous, and it did not make any sense to

me whatsoever. Now, I ended up getting elected and there was no one near me with

respect to the number of votes that I got in that small town. It proved out in

the end that it was a wise decision that we would stay away from water and

sewer. Some of the towns in this Province now are cursing the day that they went

after grants to get water and sewer - not grants, but loans.

Down in my district, in Flatrock, for example, that town

borrowed between $400,000 and $500,000 to put water and sewer in their town.

They put in basically a kilometre or two kilometres of pipe in the ground to

service the town. Not one house is serviced at this point in time, and they are

paying back a debt retirement of somewhere around $35,000 a year, and they are

not servicing one house, so you can see the foolhardiness of installing water

and sewer in these municipalities when they didn't have the tax base to support

it. Now, Mr. Chairman, with the cuts to the municipalities this year, I had

basically made up my mind, before I was elected to the House of Assembly back in

'93, that I was not running for council again in the upcoming elections for the

municipalities, and the reason why I made that decision, was the fact, that I

thought that the down loading on the municipalities in this Province was too

drastic, too hard and I could see the effects that was having on the

municipalities.

Now I say, that the Minister of Municipal and Provincial

Affairs basically, has the attitude that the towns are not paying enough for the

services, that their mil rate is not high enough and are not collecting enough

taxes, Mr. Chairman, but you know, if you go across this Province today, and

look at the people in these towns and you look at the unemployment rate, some

people say 20 per cent, 30 per cent, 50 per cent maybe, Mr. Chairman, the money

is just not there and there is no point in raising taxes if you have a mil rate

of five mils, seven mils or eight mils, whatever the case may be or ten, and

raise it by two or three mils, if a town now, is collecting basically 70 per

cent of their taxes, if a town is collecting 80 per cent or 60 per cent, if you

increase the mil rate, all that is going to happen is that you will have some

people who can afford to pay their taxes but you will end up, in the long run,

losing more money than you are actually collecting at this point in time because

the money is not there to be collected and increasing the taxes is not going to

help any of them in any way, shape or form, so I would say to the Minister of

Municipal and Provincial Affairs, that he should take a serious look at what he

is imposing upon the municipalities in this Province.

Tomorrow I believe, in St. John's there is a meeting of the

Federation of Municipalities where we will see a number of councillors coming in

from across the Province to discuss this very drastic step by the provincial

government and I would suspect from what I am hearing there will be a number of

resignations put to the Minister of Municipal and Provincial Affairs tomorrow.

You will see many councils, maybe not tomorrow, you will see some, but in due

course before the next general municipal elections in this Province, Mr.

Chairman, you will see a number of the provincial municipal councils resigning

and not running again because they find it too hard. These people now,

basically, having to take the brunt for the provincial government. This morning

I sang out across the House the word, cowards, actually it wasn't the word

coward and a word that I should not have used according to the Speaker, and I

accept that, but, Mr. Speaker, the towns in this Province are finding it very

hard by the imposition of the down loading of responsibilities of this

government to the municipalities.

Just to get off the topic of the municipalities, Mr.

Chairman, this government also has hit the health care services in this Province

very hard over the past number of years. Now, I understand that they are trying

to balance their Budget and they have a very serious problem on their hands and

I believe that a lot of these problems have been created by the mismanagement of

this government. This government is in a situation now where they are in a

crisis management situation; they go from crisis to crisis and try to solve that

because of their poor planning.

The hospital care cuts in this Province have been very

drastic and whenever the Minister of Health is questioned on this topic, he

basically responds by saying: Health care in this Province is improving. Now,

Mr. Chairman, if there were any words that have ever been spoken in this

Province that are not accurate or basically tell the actual situation, those are

the words; that health care in this Province is improving, and I mean, I have

personal experience of this, Mr. Chairman.

In January of '90, I was in the Health Sciences Centre for

very serious surgery. I was again in there in February of '94 for the same

surgery and I could see a major, major difference in the health care services in

the hospital now. Personally, I have no complaints with respect to the service

that I had from the doctors or from the nurses who treated me in the hospital,

but I can tell you that the nurses themselves were overloaded. They were

overburdened with what they had to do, they were certainly understaffed and at

times now, Mr. Chairman, if you go to the Health Sciences Centre, you will see a

nurse, from what I can gather and my information has told me, one nurse for as

many as twenty patients.

Now that is just impossible for an individual to handle. I

mean just for the -

AN HON. MEMBER: (Inaudible).

MR. J. BYRNE: Pardon?

MR. SULLIVAN: There are some with thirty patients.

MR. J. BYRNE: The Member for Ferryland says a nurse in

there has to take care of thirty patients. Now, this is just physically -

MR. SULLIVAN: (Inaudible) sick leave.

MR. J. BYRNE: Oh, I know - that's just physically

impossible, Mr. Chairman and now, they are getting to the point, that if there

is a nurse who phones in sick or takes the day off they do not even replace that

individual. Again, complicating the problems. Even just in general cleanliness

of the hospitals themselves, you can walk through the hospitals and see that

they are not as clean as they once were. In actual fact, now we have patients in

hospitals who have to make their own beds, Mr. Chairman. So the down loading of

the health care in this Province is becoming very drastic. The Minister of

Health can say what he wants but the health care in this Province is not

improving by any stretch of the imagination.

Now when we are talking about down loading, Mr. Chairman,

again the government is trying to save money. Well it is getting to the point

now where they are gone beyond down loading to the municipalities but they are

actually down loading to the families in this Province. Now, Mr. Chairman, I

know - again I have personal experience where there have been people in my

family or associated family who have been sick, they have gone to the hospital

and they have been sent home much too early. Very much too early and it is

basically left to the families to take care of them. Now the families want to do

their best and they do do their best in most situations. Most people care about

their own but there is a point in time where these people cannot do what needs

to be done. So again, the government is looking at home care in this Province

and it may be a good idea. There are some people who will question that. It

depends on what you would put in home care but the health care cuts in this

Province are very serious. I believe that the government should really take

another look.

There are two areas, as far as I am concerned that should not

be cut as drastically as other areas - I can see areas being cut of course but

the health of our population and the education of our population is all

important in my mind, Mr. Chairman. The education of our young people is all

important because that will tell the future of what is going to happen to the

people in this Province.

Mr. Chairman, I have had people say to me that this

government has no heart. That seems to be the general trend that is going around

now, that this government has no heart and I would have to agree with that. I

have made the comment to people, when they tell me that, that this government is

like the tin man in the Wizard of Oz. Now I believe the tin man in the Wizard of

Oz was looking for a heart. He had enough sense to know that he needed a heart

but this government, Mr. Chairman, does not have enough sense to know that they

need a heart. We have to have compassion in government and this is abruptly

pulled out of government in this Province. It was pulled out and not very

delicately either, Mr. Chairman, there was no scalpel used. When this government

was elected in '89 all compassion for the people in this Province has left

government.

This is a finance bill basically so I know we have a latitude

on what we can speak about but basically in the Emergency Employment Program

that was brought in last year, we hounded, we begged and we fought and we

finally got an Emergency Employment Program brought in by the Minister of

Employment and Labour Relations. He opposed us tooth and nail. He opposed the

government, he opposed the Opposition, he opposed the public who were begging

for an emergency employment program. They brought in an employment program of $5

million and they set the criteria to qualify for that - it was almost

impossible, Mr. Chairman. I know there were communities in my district that

actually sent back money because they could not get people to qualify because of

the strict qualifications for the Emergency Employment Program.

Now we have people out there this year and we asked for it

again and the Minister of Employment and Labour Relations stood on his feet and

point blankly said no. There was a resolution brought to this House to bring in

an Emergency Employment Program, members on this side of the House voted for the

resolution but I believe everybody on the opposite side, the government side of

the House, voted no to the resolution to bring in an Emergency Employment

Program into this Province. Now again, I find that to be a very heartless move.

There are people out there, Mr. Chairman, in this Province today, and I

mentioned this before, who do not know where their next loaf of bread is coming

from or their next pound of butter and that is a very, very serious situation. I

believe that this government is largely responsible for that very drastic, very

serious, very hard situation in this Province today.

For some reason or other, I really don't understand why this

government and members opposite do not comprehend the situation out there today.

Members opposite have to be getting the same calls that I am getting. They have

to be getting the same calls that the members on this side of the House are

getting, Mr. Chairman, but they don't seem to understand. If they do understand

they certainly are not prepared to do anything about it, and they should.

If you drive around this Province today you have to wonder

what is going to happen to the rural communities. If you take a drive through a

number of the communities you have to wonder, you have to see, that the

out-migration is certainly visible at this day and age. Last year I believe

there was somewhere around 12,000 people who left. In the past three years, from

what I can gather, there have been 16,000 people leave this Province. Over and

above what has come into this Province.

MR. EFFORD: We know that. What do you suggest we do?

MR. J. BYRNE: I have all kinds of suggestions to the

Minister of Works, Services and Transportation.

MR. EFFORD: We know all that.

MR. J. BYRNE: Yes, you know all that stuff. Why don't you

do something about it? I would suggest to the Minister of Works, Services and

Transportation that that government over there is elected to do something about

it, to come up with the ideas. You people are the people who are getting paid to

come up with the ideas to solve the problems in this Province. What the problem

is here now is that they are like a vacuum. They are sadly lacking in any

creative idea to create jobs in this Province, to keep people in this Province.

I believe that there is actually a plan afoot to help reduce the population of

this Province.

Since 1989, Mr. Chairman, this government has brought in a

number of policies that would certainly lend a hand to, or help, the outflow of

people out of this Province. I can get into a number of them. We don't know what

the results are going to be for this year with respect to out-migration. We

don't know what will be next year or the year after. I think that basically the

government has a plan afoot to balance its budget by maybe, in a number of

years, getting 100,000 or 200,000 people to leave this Province and it would

have less people to be responsible for.

I think that the plan with respect to basically the nineteen

economic zones, again, will end up being maybe nineteen counties. They are

forcing the municipalities to cut the services in their towns. What will end up

happening is you will have many of the councils, as I said earlier, resigning,

many of the councils not running for re-election. Then the amalgamation issue or

the regional government issue will be much easier for this government to put in

place because it won't have people who are too opposed then. It won't have

people in place to oppose its moves, its cold-hearted moves.

By doing that, by reducing the number of towns in this

Province, of course the government will save money. That gets back to their

balanced Budget again. The balanced Budget, the so-called smoke and mirrors

budget of this government. The Minister of Finance and Treasury Board himself

said that it was a smoke and mirrors Budget last year. So were the government

being honest with the people? That question begs to be answered and asked.

MR. EFFORD: What's your suggestion? You haven't given one

suggestion (inaudible)!

MR. J. BYRNE: My suggestion to the Minister of Works,

Services and Transportation is that when he was in Opposition he wasn't shy in

pointing out the faults of the government of that day, and he didn't have any

suggestions. The Minister of Works, Services and Transportation stood on his

feet yesterday, Mr. Chairman, and whenever he gets on his feet he talks about -

I hate to bring up the word - cucumbers and pickles. That is all he seems to

harp on. What he didn't mention, and I was planning on getting into that, was

the Trans City situation which the Member for Kilbride stood on his feet

yesterday, said, what was it, $42 million? The Hydro, $10 million.

MR. EFFORD: (Inaudible).

MR. J. BYRNE: Same thing, what has spring got to do with

it? Ten years ago, Sprung. Then we have $50 million, $60 million, $70 million

spent by this government at this point in time. I should stay away from the

remarks of the Minister of Works, Services and Transportation because he is only

trying to distract me, and he is doing a good job, Mr. Chairman. He is doing a

good job with distracting; that is all he is good for.

Back to the balanced Budget and the smoke and mirrors Budget.

This government at this point in time - and the minister is quite aware of this,

but I don't know if the back benchers over there are as well aware as the

minister - but it is struggling now to balance its Budget again with its $60

million so far. It is looking at cuts and more cuts.

AN HON. MEMBER: (Inaudible).

MR. J. BYRNE: Again I'm going to be distracted. I say to

the Minister of Works, Services and Transportation that the government - half

the people on this side of the House were not in that government, they had

nothing to do with it. The Minister of Works, Services and Transportation is

part of a government over there that has been in place for six, going on seven,

years now, and all they can do is blame the previous government. It is a tired

line and he doesn't realize it.

He has been in government for six or seven years - in

government itself, I don't know how long he was in Opposition. It was the

previous government, I believe the Liberal government, defeated back in the

early 1970s, in power from 1949, for twenty-one or twenty-two years, who created

the problem we have today.

Now, I know the Minister of Works, Services and

Transportation would love to have $800 million a year into the coffers of this

Province, and if the previous, previous administration, the Liberal government,

had not signed the Lower Churchill deal, we would have $800 million flowing into

our coffers at this point in time - that would be $800 million per year - and

they talk about $22 million over seventeen years, no comparison at all.

This government has said it is in crisis management. And the

morale of the employees in this Province, and it goes through every

section of

government, every government department - the employees are becoming completely

demoralized. I was hoping the Minister of Municipal and Provincial Affairs would

be here this morning, because I know of people in his department - and it is

happening in other departments but I can name people in his department - who are

sitting at their desks crying because they don't know what is going to happen to

them in this Province.

MR. EFFORD: Who? Who is crying?

MR. J. BYRNE: Employees of the Department of Municipal

and Provincial Affairs are actually crying at their desks because they don't

know what is going to happen to them. That is the type of situation that this

government has brought the people of this Province to. It is actually completely

demoralizing.

The Minister of Works, Services and Transportation said he

would like to have some recommendations. Well, the biggest one I would like to

pass on is to the Premier himself, and that is this: They should not be so

negative. I have yet to see the man stand in his place in this House of

Assembly, or in public, and say something positive about Newfoundlanders. I have

yet to hear him say anything positive about the economy. There are always

qualifications with respect to anything he says.

Also with respect to recommendations, this government is not

standing up for the people of this Province. Everything that comes down from

Ottawa is, `Yes, Prime Minister; yes, Prime Minister; yes, Prime Minister'. We

have the transfer payments that are being cut cold-heartedly. It must be the

former government that is in Ottawa also. Liberal times must really be hard

times. We have the Premier and the ministers of this government taking

everything sent down from Ottawa, `Yes, Prime Minister; yes, Prime Minister;

yes, Prime Minister', and then we have everything that is going on in this

Province, we have the ministers on that side of the House, everything that the

Premier says, it is, `Yes, Premier; yes, Premier; yes, Premier'. What they

remind me of - I think back in the 1960s and 1970s the cars used to have a

little dog in the back window, and the head used to be constantly moving up and

down, up and down; it used to be going up and down all the time. This government

reminds me of that little dog: `Yes, Premier; yes, Premier; yes, Premier' - they

will not take him on - to everything he says. And we saw an example of it

yesterday when we met to discuss the cuts that are coming in this Province.

We know that cuts are coming to the UI. Some major changes to

the UI system are coming in this Province, and we have asked the Minister of

Employment and Labour Relations to speak up on behalf of the people of the

Province, but he squeaks up, he whispers, and he says nothing to Axworthy, the

Minister of Employment and Labour in Ottawa, HRD, whatever the case may be. He

is not saying anything. He is just accepting, accepting, accepting. We need

somebody to stand up and pound his fists and say, `We are not going to take it

anymore'.

We had jobs leave this Province, towed out of Marystown. We

heard the Premier say: Well, that's all we can do; we have to accept it. We saw

the situation in the dockyard with Marine Atlantic; now, we have to accept it -

we have to accept everything. I say we don't have to accept it.

We have cuts coming to TAGS. We have people being laid off

right, left and center from TAGS, let go, and what do we have over here? We have

the Minister of Fisheries, Food and Agriculture, who doesn't even know that

fisheries is a part of his district, a part of his responsibilities. I ask him a

question and the answer I get is: It is under review and we are going to check

into that.

As a matter of fact, there shouldn't be a Department of

Fisheries, Food and Agriculture; there should be a Department of Fisheries in

itself. I have to say that I am not a fisherman and I have never fished in my

life. The most I know about fishing is from when I grew up in Torbay, going over

to Tapper's Cove, getting a fish from the fishermen and bringing it home.

Now, the Minister of Works, Services and Transportation was a

real spokesman for the fishermen in this Province when he was in Opposition, and

I didn't hear any constructive comments made by the minister at that time - all

he did was complain, complain, complain. I think I am going to get him on his

feet this morning. I do believe he will be on his feet this morning.

Now, as I said, the Minister of Works, Services and

Transportation stood yesterday and talked about the $7 billion of debt that was

left by the previous Administration, and he talked about the cucumbers, $22

million, Mr. Chairman, but he didn't mention anything about the government

before that bringing in rubber boot factories. Where are they today? How many

millions did that cost us? Chocolate bar factories - he didn't get on his feet

and preach about the chocolate bar factories that were brought in. Where are

they today and how many millions did that cost the government and the taxpayers

of this Province? I believe there were also orange juice factories brought in,

or they tried implementing them in this Province. When he was on his feet the

other day, I didn't hear him say anything about that. He talks about a debt of

$22 million compared to billions of dollars yearly by the previous

administration.

It is a farce. He didn't mention the $10 million that they

wasted on Hydro when they were advised against it, Mr. Speaker. He didn't

mention the $2 million on the referendum. He didn't mention the Cabot

Corporation. He didn't mention the patronage appointments of this government,

which have gone into hundreds and hundreds, Mr. Chairman. That is costing the

Province millions and millions of dollars. He didn't mention the patronage with

respect to the rental of office space throughout this Province. In less than a

year after they were elected they were putting people in buildings in this city

that were owned by known Liberals, taking them out of other buildings and

putting them in those. He didn't mention that. I can name them. He knows, Mr.

Chairman.

MR. SPEAKER: The hon. member's time has elapsed.

MR. J. BYRNE: By leave.

MR. CHAIRMAN: Does the hon. member have leave?

The hon. member doesn't have leave.

MR. EFFORD: (Inaudible).

MR. J. BYRNE: He spoke on this, Mr. Chairman. He spoke

yesterday on this.

MR. CHAIRMAN: I remind hon. members that, in Committee

stage, a member can speak more than one time to the motion.

The hon. the Minister of Works, Services and Transportation.

MR. EFFORD: Thank you, Mr. Chairman.

Before I begin my speech I just want clarification on the

time because I understood that in Committee you go ten and ten back and forth.

And do I have ten minutes or thirty minutes?

MR. CHAIRMAN: It has been the custom of this hon. House

for the last number of years that by agreement members have spoken ten minutes

back and forth, but such agreement was not arrived at, at this time, so we are

reverting to the Standing Orders which allow hon. members thirty minutes. If it

is the wish of the House to limit it to ten minutes, then the Chair will

entertain that.

The hon. the Opposition House Leader.

MR. W. MATTHEWS: I understand, Mr. Chairman, that most

members who have spoken have utilized their thirty minutes. The hon. minister

has spoken before, so I don't know if he used his thirty minutes or not. If he

has, then I don't think the minister can speak, but if he has used less than

thirty minutes, then I have no problem with him using what is remaining. You are

right, we did not make an agreement. Usually in Committee on finance bills we

agree to ten and ten but we didn't do that this time.

So, I have no problem with the minister using up whatever

time he has left from his thirty minutes, if that is the case.

MR. DECKER: You can't go thirty, thirty, thirty!

MR. W. MATTHEWS: Oh, no, you can't go thirty minutes,

thirty minutes, thirty minutes, I say to the Minister of Education, I mean, we

would be here forever. Do you want to get the House closed for Christmas?

MR. CHAIRMAN: I remind the hon. minister that when he

last spoke to this he spoke for a total of six minutes, so if he wishes to use

up the other twenty-four minutes, he may do so.

For the benefit of hon. members, the Chair was reminding

members that previously there had been an agreement by members that at Committee

stage, hon. members would speak for ten minutes, but that arrangement was not

made here at this sitting, so members were allowed to speak for thirty minutes.

The hon. the Minister of Works, Services and Transportation

has spoken in this debate, on one occasion, for a total of six minutes. The

Chair has recognized the Minister of Works, Services and Transportation.

MR. EFFORD: They can try to delay, Mr. Chairman, but they

are not going to stifle this minister. I have things to say and I am going to

say them - provoked again by the hon. the Member for St. John's East Extern, who

is now going to leave the Chamber because he is afraid he might get some

knowledge passed along, some good information.

Mr. Chairman, I take exception to some of the comments coming

from -

MR. TOBIN: `John', I have to leave now (inaudible).

AN HON. MEMBER: On a point of order, Mr. Chairman.

MR. CHAIRMAN: The hon. the Member for St. John's East, on

a point of order.

MR. HARRIS: Mr. Chairman, the Minister of Works, Services

and Transportation unfairly commented on the presence or absence of a member in

the Chamber. He accused the Member for St. John's East Extern of leaving the

Chamber because he was speaking. That's unparliamentary, Mr. Chairman, and he is

not allowed to say it. He is not allowed to comment on the absence of a member

from the Chamber and he should withdraw those comments.

SOME HON. MEMBERS: Hear, hear!

MR. CHAIRMAN: The hon. the Minister of Works, Services

and Transportation, to that point of order.

MR. EFFORD: It's too bad, Mr. Chairman, that the hon. the

Member for St. John's East wasn't listening. What I said, very clearly was, that

the hon. the Member for St. John's East Extern was now leaving the Chamber

because he didn't want to get some good information for his next speech.

MR. CHAIRMAN: The Chair will rule on that.

SOME HON. MEMBERS: Oh, oh!

MR. CHAIRMAN: Order, please! Order, please!

MR. TOBIN: As usual (inaudible).

MR. CHAIRMAN: Order, please!

The Chair has noticed that recently there are a number of

hon. members in this Chamber making reference to the fact that members are not

in their places, and I remind all hon. members that it is unparliamentary to do

so.

If in fact, the minister, as he has stated, made reference to

a particular issue, that the member was leaving because he didn't want to hear

something, that is not unparliamentary.

MR. EFFORD: Thank you, Mr. Chairman.

I want to say to the hon. the Member for St. John's East, it

is too bad that he doesn't obey all the rules of the House. He tried to have me

obey one that I didn't break.

Mr. Chairman, the Member for St. John's East Extern stood for

thirty minutes and talked about the position of the Province today. He talked

about this government not doing anything. I say to the hon. member that he

hasn't been listening. He has been sitting in this House of Assembly for the

last couple of years, but he hasn't been listening very clearly.

AN HON. MEMBER: He will never be back again.

MR. EFFORD: I don't think he will get back again because

I believe now, that the people of St. John's East Extern see the error of their

ways. We have major financial problems in this Province; we have -

AN HON. MEMBER: Obey a rule you didn't break.

MR. EFFORD: Typical lawyer, a typical lawyer, trying to

get me to obey a rule I didn't break.

SOME HON. MEMBERS: Hear, hear!

MR. CHAIRMAN: Order, please!

MR. EFFORD: All I hope, Mr. Chairman, is that the hon.

member doesn't send me a bill for that.

Mr. Chairman, we have some serious problems in this Province

and you could stand, whether it is ten minutes in Committee or whether it is

twenty minutes or thirty minutes, is not the issue, but if you stand, day after

day, in speeches on all the bills and you are saying the same thing over and

over and over again, pointing out that we have problems. We know we have

problems. We know what the massive debt in this Province is, we know that it has

to be dealt with, we have been making some major, major decisions to deal with

that, very unpopular with the electorate, very unpopular with people who are

affected by them, very unpopular with those who have to give up something, but

the decisions that are in the best interest of this Province have to be made.

AN HON. MEMBER: (Inaudible) same speech (inaudible).

MR. EFFORD: Well, I have to give the same speech that I

gave yesterday, because the hon. members keep repeating the same speech that

someone in their office writes over and over again. I mean, it is nothing new,

but if they keep giving the same speech, then I have to keep going back telling

them what they did for seventeen years and what we have to do to correct the

situation, it is as simple as that. It is just as simple A, B, C, D, E, F, G, no

different. Just as simple as the alphabet that you have to keep repeating it

over and over so they will understand that we have a problem.

Now, what do you do with a $7 billion debt? Do you let it go?

Do you keep expanding it? Do you let it grow and grow and grow? I would not mind

if one member opposite stood up, if one hon. member opposite stood to his feet

and took five minutes and made some good suggestions about what you should do to

straighten the books out, to balance the books. What is the right thing to do?

We are making those decisions. We are making the decisions that are necessary to

balance the books and government has to get its House in order. We have been

getting our House in order for the last two or three years. It is very difficult

with what we took over. It is very, very difficult and it is very, very

difficult when you start taking things away from people.

Now one of the reasons why I wanted to get up for a few

minutes and talk about it is that the hon. member spoke about Trans City because

I brought up about the cucumber farm yesterday. The hon. Member for St. John's

East Extern is more familiar - even though he was not in government with the

cucumber farm - then probably a lot of members are today because he lives out in

the east extern where Robin Bay dump is located, where the cucumbers were grown

and trucked out there and dumped that which was not given out for cattle feed.

They were dumped out there. So he said, `Well what about the Trans City?' Well

the difference is that the cucumber farm, the $27 million was spent and it just

disappeared, except the memory but the Trans City contractors built hospitals.

The hospitals are there. They were not dumped in Robin Hood Bay, they were not

destroyed, they were not burned, they were not closed up, they are the buildings

and the facilities are there. It is two different things altogether.

If you want to get into contracts about who got contracts on

a partisan decision then I can tell the hon. member about the former Minister of

Finance, who at the time, while he was in Cabinet, while he was in Cabinet had

rented accommodations to the government of the day to the tune of $500,000 a

year, which is still being rented, $500,000 a year income while he was a

minister in Cabinet. We want to get talking about who got what. You see? So, Mr.

Chairman, it is very simple, you cannot compare what happened with the cucumber

and the pickle factory to contracts of building hospitals. It is two different

scenarios altogether but the fact remains we do have a major financial problem;

we do have to deal with it and in order to deal with a massive debt in this

Province we have to make some hard decisions. It is going to impact very

clearly, Mr. Chairman, it is going to impact on the lives - I guess I may as

well go to the full extent and say every Newfoundlander and Labradorian, it is

going to impact on everybody's lives.

People's expectations will have to change, people's way of

life will have to change, people will have to seek alternative employment, job

opportunities, be more creative, more businesses will have to be started up by

individuals and yes, some people will have to leave the Province. I don't think

that has been a great change over the last - before Confederation, long before

Confederation people left, always ever did.

I can remember hearing my father tell me the story of when he

was eleven years old his father went to Boston to work, took him on the boat and

went to Boston. People always had to do that. There will never be enough work -

I should not say never, never is a long time - traditionally there has not been

enough work in this Province for all the people. That is the natural way. We

have all, perhaps most of us here in this House of Assembly, at one time or

another had to go out of the Province for work but there is nothing wrong about

that. There is nothing that people find: well this was something that was

started in the last few years. It is wrong. It has always been there. We would

like to have the perfect situation and everybody living in the Province, not so.

So the fact remains that we do have people leaving the

Province. They keep referring to the outward migration and that has caused, the

increase in that has caused, very simply, the closure of the fishery. Now there

is nobody in this House of Assembly and nobody in this Province who would like

to see the fishery come back any more than I would. The district that I

represent, the mainstay of the economy is the fishery. We have $18 million worth

of boats tied up in Port de Grave, most of the year, $18 million worth of long

liners. That is besides the small boats, beside the small thirty-five foot boats

and under. Luckily most of those boats are still fishing part-time of the year.

Not as much as they would like to, but the species that they are allowed to

catch do give them a reasonable standard of living. Big investment, $1 million,

$1.5 million in the boat, hundreds of thousands of dollars in equipment, in the

diversifying in the new type of fishery, but at least they are willing to try,

to make an attempt.

Now the hon. Minister of Municipal and Provincial Affairs is

being blamed by the Opposition for down loading on the municipalities. I talked

about it yesterday. I gave an example of communities in my own district which

have obtained monies from the government to put services in, water and sewerage,

which are paying less than $150 a year per household. It is quite clear that you

can't get a multi-million dollar service from the taxpayers of this Province,

from the government of this Province, and not have the responsibility of paying

a reasonable fair charge for those services.

For the most part most people of this Province believe that,

are willing to do their share, once the system is put in place and they can do

it. So when you tell a small council out in the area that you are not paying

enough taxes, that you have to get your house in order, that is the

responsibility of the Minister of Municipal and Provincial Affairs to do that.

It is not a matter of down loading. It is making sure that everybody gets their

house in order and everybody pays their fair share; then collectively in the

Province, we all work together for the common goal of trying to get the

financial order of all of this Province in order.

I don't see anything wrong with that. There is an attempt

being made to do it. Standing to your feet and saying that this government is

not doing anything couldn't be farther from the truth. We are doing what we have

to do to get our financial house in order.

MR. HEWLETT: Why didn't you do it at Budget time?

MR. EFFORD: Pardon?

MR. HEWLETT: Why didn't you do it at Budget time? Why did

you come in with that big false Budget?

MR. EFFORD: It has always been done. There were major

steps taken the last Budget, there were major steps taken the Budget before,

there were major steps taken the Budget before that. But now, due to the drop in

the revenue, the economy of this Province, the job opportunities, due to the

transfer payments of Ottawa, due to the reorganization of the whole national

agenda, the financial agenda of the federal government of this country, which

is, the numbers I am hearing, three-quarters of a trillion dollars owed by the

taxpayer of this country. People are looking at us that we are the sole

proprietors of this Province. We are only elected by the people of this Province

to administrate their affairs. We don't owe the debt. Every man, woman and child

in this Province owes that money, that $7 billion. Every man, woman and child in

this country owes that three-quarters of a trillion dollars. It is common sense.

The hon. Member for Waterford - Kenmount knows that he is

only playing a political game when he gets up and asks the question as a critic.

It is an Opposition's responsibility to do that, I guess, that is the way he is

looking at it. But he knows full well if you have a massive debt you have to

deal with it. If a council out there is not imposing enough taxes and the

organization needs to be changed, the restructuring needs to be put in place, it

has to be done. You can't keep borrowing the money. People's expectations can't

keep growing. We can't keep handing out monies we don't have.

It is like your own son and daughter. They ask you for a car.

I can't afford to buy you a car. Change your expectations. They ask you for a

bike. I can't afford to buy you a bike, I don't have the money. You change your

expectations. You tell them no, the money is not there to do it. You don't have

to be a genius, you don't have to be a rocket scientist, all you have to do is

use some good, Liberal common sense. That the Tories for seventeen years never

had the ability to use.

The hon. Member for St. John's East Extern made another

reference about the former governments and chocolate factories. When the

governments changed in 1972 the total provincial debt was less than $1 billion.

Think about it. At the end of that term the total provincial debt was in excess

of $7 billion. That is a major problem.

AN HON. MEMBER: (Inaudible).

MR. EFFORD: Yes, I point it out in debating here in the

House of Assembly, because they keep standing up and saying we are not doing

anything to deal with the problems in this Province. We have to keep telling

them: Yes, we are dealing with it, but you caused it and we have to take the

responsibility of correcting it.

AN HON. MEMBER: (Inaudible).

MR. EFFORD: Yes, that is what is going to be said, and as

long as you keep saying it, we will keep saying it back. That is the point we

are trying to make. You caused it; we will correct it - $7 billion. Seven

billion dollars is a lot of money.

MR. ROBERTS: Look what they did to the pension funds.

MR. EFFORD: There is another example. What happened to

all of the pension funds? The money is not there now; it is not invested. There

is not enough money in most of the pension funds to be sustainable in the

future.

MR. ROBERTS: Peckford's bad decisions will be like the

albatross in the years to come.

MR. EFFORD: And who has to take the responsibility? The

people of this Province. Unless this government makes the right decisions, the

suffering in this Province, by every citizen of this Province, has not yet been

realized. Unless we can do something to correct the financial situation, unless

we can make the right decisions to correct the pension fund...

Let's talk about the teachers' pension fund. What about it?

The member this morning asked: Would we consider dropping back the age of

retirement twenty-five years? In the present teachers' fund, if the rules that

are in place now continue, by the year 2005 it will be bankrupt - by the year

AN HON. MEMBER: 2003.

MR. EFFORD: Well, is it 2005? The Minister of Finance is

not here. It may be 2003; that is even worse. Who has to correct it? The problem

is there; it has to be corrected. Are you saying we should turn our back on it,

and we should go out and borrow more money and forget about it? How silly. That

is the way you would do it. That is the way they would do it. That is the way

they did it in the past, and that is the way they would continue to do it. That

is the reason why you are sitting over there on the Opposition side with your

arms folded, because the people of the Province woke up. The people of the

Province came to realize that this cannot continue on.

I will tell you, I talked about it to a couple of my

colleagues this morning. For the most part, as hard as the decisions are that we

have to make, for the most part most people in this Province accept it. I am

serious; they accept the fact. They talk, and realize, and understand, as hard

as it is, that we know we cannot continue spending the way we spent in the past.

Two wrongs do not make a right. Going on into bankruptcy will solve nothing for

anybody. They understand that there are some hard decisions that have to be

made. They understand it. It is no good turning back and going over and

repeating what we did in the past. There is only one alternative.

AN HON. MEMBER: What is it?

MR. EFFORD: Get your financial house in order for the

future.

AN HON. MEMBER: How do you do that?

MR. EFFORD: Very simple; reorganize the whole system.

Change people's expectations, for one thing.

AN HON. MEMBER: Oh!

MR. EFFORD: Be honest with people. Tell people what you

can do for them. Tell people how much money they can expect to receive next

year. Do not keep misleading and blindfolding people with the wrong information.

It is a simple fact of getting your financial house in order, being directly

responsible for what you have to do, and telling the people the true facts.

I tell you, the majority that this government got in the last

election will be minute to what we get in the next election. Now I realize that

my margin of victory can only go up a very few percentage points and I will have

it all, but I have no doubt in my district, in the next election, even my margin

will increase, and that is because the people in my district, like all the rest

of the people in the Province, realize that we are working and the decisions we

are making are for their best interest, for the future of this Province, for the

children of this Province, for the generations to come, that the best interests

SOME HON. MEMBERS: Oh, oh!

MR. EFFORD: (Inaudible).

MR. CHAIRMAN: The hon. the Member for Humber Valley.

MR. WOODFORD: By leave, Mr. Chairman. Does the member

want to finish his speech?

MR. CHAIRMAN: The Chairman has recognized the Member for

Humber Valley.

MR. WOODFORD: Thank you, Mr. Chairman. When everybody was

here saying `how great thou art' I thought they were talking about the Minister

of Municipal and Provincial Affairs, but it must have something to do with the

Member for Port de Grave.

I would like to make a few short comments on this Bill 14. I

might make it half-an-hour. After listening to a number of speakers now on both

sides of the House concerning this piece of legislation, this particular bill,

there are all kinds of insinuations being made, accusations, I suppose, being

flung back and forth across the House.

AN HON. MEMBER: Even (inaudible) a statement or two, as

well as insinuations.

MR. WOODFORD: A few statements of which probably some

were false, some were true.

AN HON. MEMBER: (Inaudible) paralegals (inaudible) Lynn

Verge here this morning.

MR. WOODFORD: It could be they are referred to as

para-leaders.

SOME HON. MEMBERS: Hear, hear!

AN HON. MEMBER: (Inaudible).

MR. WOODFORD: Mr. Chairman, the bill comes to the House

every year because it is an annual thing. The Department of Municipal and

Provincial Affairs gives permission to municipalities around the Province, or

guarantees loans for them at a number of banks, or whatever banks they deal with

around the Province, to do specific projects in their municipalities.

But, Mr. Chairman, I would say, the underlying problem with

all municipalities, with anything today that has anything to do with the economy

in this Province, any occupation, whether it be a construction company,

agriculture, the fishery - well, the fishery is a little different, I suppose,

because of the quota system and because of what happened in the groundfish

industry. But the bottom line is that people are just not working. If you have

nobody working, you have nobody paying taxes. You have no revenues - you have

nobody spending money at stores, you have nobody buying cars, nobody buying

fridges -

AN HON. MEMBER: And government gets no (inaudible).

MR. WOODFORD: - and government gets no revenue. There is

no RST, no GST, no income tax. In order for government, any government, to get

revenue there has to be - more specifically, the Federal and Provincial

Governments, because the municipalities are more limited on what they can

collect in the form of taxes. But federally and provincially they can collect

income tax, RST, they can put all kinds of fiscal regimes in place to collect

revenues. Municipalities are limited to some extent by the municipalities act in

what they can and cannot do.

As I said, the bottom line is that people are not working,

and when people are not working they can't spend. They can spend for the

necessities of life if they are drawing UI for a certain period of time, or

social services. They can live from day-to-day, week-to-week. But for the extras

they need, in order to stimulate an economy or to bring extra revenue into a

province or into a country, in order for government departments to put monies

back into the municipalities, the money is just not there.

Whose fault is that, Mr. Chairman? We have heard references

this morning going back to 1971 when the debt in this Province was $1 billion. I

don't have to tell any member of this House what the inflation rate was in 1971.

I don't have to tell anybody in this House what the interest rates were back in

1971. I can just come ahead to 1981, ten years later, and ask what the interest

rates were in this Province and in this country. They jumped from 8 per cent or

9 per cent overnight to 23 per cent and 24 per cent.

Now, Mr. Chairman, you put that alone, that one specific year

or two years, on to that $1 billion and start extrapolating as you go along.

There is no trouble to find out where at least half of that particular debt, the

total debt, came from, no trouble at all. Anybody who knows anything about

finance, about business, about running a fiscal regime, regardless of what it

is, there is no trouble to tell where a large amount of those funds came from.

Mr. Chairman, time and time again, I have stood in this

Chamber and said that the people of this Province will suffer forever and ever

and a day if we get up, day-after-day, blaming governments, blaming each other

for the mistakes of the past or whatever. You can't talk about a government in

this Province or a government in this country that haven't made mistakes, that

haven't made bad decisions, whether it is leadership, whether it is by a certain

minister in a government department or whatever; there have been bad decisions

made throughout our history, and it is always the person who stands today who

has to pay the price for those mistakes. And it's the way it is today. We have

had seven years since 1989. I can point back just a few months ago to bad

mistakes by the government opposite, and I am sure if government changes next

year, or in eighteen months, which it will, I will be able to stand on that side

of the House and say the same thing.

AN HON. MEMBER: No you won't.

MR. WOODFORD: I will be able to say: Well, the minister

had the opportunity to do that, the minister had the opportunity to do this, and

he didn't do it, he didn't avail of the opportunities.

We stood in this Chamber up in the old House of Assembly, I

think it was in 1989 or 1990, when the legislation was brought in dealing with

Enterprise Newfoundland and the Economic Recovery Commission, and we said at

that time that it was a waste of money. We had the old Rural Development

Authority there that looked after loans for small businesses in the Province,

looked after it well. The repayment schedules and the delinquent repayment

schedules of people in the Province weren't as high as they are today.

Enterprise Newfoundland today is something, someone said, like 40 per cent, but

I would say the 40 per cent only has to do with people who are probably not

paying at all. I would say it is closer to 70 per cent, because some people are

making a payment here and a payment there, and most banks and institutions today

don't include that with a so-called delinquent account. Because if you are

paying anything at all, they will usually put the principal on the end of it,

and just pay your interest as you go, just extend your time for payments. So I

would say, Enterprise Newfoundland and Labrador today is between 60 per cent and

70 per cent delinquent payments in this Province. That, in itself, doesn't have

all to do - that is not saying that the people who got the money shouldn't have

gotten the money, and it is not saying that the people who got the money didn't

run their businesses right - that is not necessarily true - but it probably will

come down to the way the economy is, the general feeling and the general working

of the economy in this Province today, and the attitude. There is a terrible,

terrible attitude out there today.

When people saw the Premier of the Province come on a couple

of months ago, speaking to the Board of Trade, and saying that we have a tough

two years ahead of us, whether it is true or not, that doesn't augur well for

anybody who is about to invest in this Province. It does nothing to help a

business in this Province try to extend or hire an extra man or woman, or

whatever, in municipalities throughout this Province.

We can go on, like I said, and blame and cast aspersions on

other people and on other governments, but we have to take the bull by the horns

and do something about the attitude in this Province today, and that comes from

leadership; that comes from the government of the day; that comes from the

Premier of the day. And leadership doesn't always mean that we have to cut, cut,

cut, cut, cut. Most people in this Province today would not survive if they

weren't allowed to make a payment on a car, a payment on a mortgage adjusted to

the amount of income they have, a payment for a holiday, a payment for children

going off to university or whatever. They couldn't survive, for instance, on

$1,000 or $2,000 a month if they had to go out and pay for those things

overnight. That's the way the economy works; that's the way the nation works;

that's the way people survive, because they get loans, they mortgage, they

amortize. That is how people survive, how communities survive, and how

governments survive.

As for municipalities in this Province, as far as I am

concerned today, the die is cast. The die is cast for municipalities in this

Province, whether we like it or not. This weekend, you will see mayors

resigning. It is not going to solve the problem. It won't solve the problem at

all. The minister will go out as he did in the past, with councillors, and so

on, and he will appoint people in those communities to do what has to be done

under the Municipalities Act.

Well, then, I say to the minister, that one of the things

that will have to be done within the next twelve months in this Province is,

amendments will have to be made to the Municipalities Act to accommodate a lot

of municipalities in this Province, that just cannot operate under the

restrictions of the Municipalities Act today. They can't move, there are only

certain things they can tax; they have an equalization component, a local

revenue component, they have a per capita component, they have a formula for

repayment on capital debt that they have to live with under the Municipalities

Act, period. They have to have their budgets in by December 31st, period. They

can't go to the bank and get a loan unless it is guaranteed by government. They

are restricted.

They are restricted in what they can do with regard to a

business coming into their community. They are restricted under the municipal

plans in their communities. If they need an amendment, they have to go to the

minister and it takes months and months and months by the time the bureaucracy

in this Province gets it through the system. One of the first things the

minister had to do, and it started last year, but I don't see it working, was to

arrange for offices, putting the work of different government departments in the

one office, sort of a central station whereby they can put out some of the fires

rather early so people can survive in this Province.

It is not happening, Mr. Chairman, and it is not going to

happen if we have people in those departments who want to justify their

existence. People in those departments who don't want - some of those, the

Department of Health, treading on their turf in the Department of Environment;

someone in Environment doesn't want development control telling them what to do.

Someone in highways doesn't want development coming in and telling them: That's

not right. We have to get clear of the system we have, if not, I can assure you

that businesses in this Province and municipalities in this Province, Mr.

Chairman, are out the door. They are finished, they are going to throw up their

arms in frustration and say: `Enough is enough', we just can't take any more.

And it is true - members opposite may not admit it, but it is true.

Back in the early 1970s when I was a mayor in the community

of Cormack, and for five years on the Federation of Municipalities representing

small towns in this Province, both in the Province and outside the Province,

when I sit around the table in another jurisdiction in this country and hear

mayors, like one who just quit yesterday, Mr. Harcourt, the Leader of the NDP, I

sat around the table with him many times as a small town representative from

this Province, the hon. minister was there and several other people who had been

federal Cabinet ministers over the years, and I heard some of the things that

were said at that time and I stand, representing a community of 760 people, and

those people were from the hundreds of thousands, they didn't have a clue, not a

clue as to what was happening even in their own offices.

I will never forget the time in Ottawa when I questioned a

certain mayor who went on to become a federal Cabinet minister in this country,

on some of the things that were supposed to be happening in her office and she

could not answer the question, and you know why? not because she wasn't capable

of absorbing the information, not because she wasn't capable if she had absorbed

it or knew it to be able to deliver it, but because the councils in those

jurisdictions were run by bureaucrats. They had their engineers, they had their

town managers, they had their city managers, they had their legal experts, but

in the small municipalities in this Province, what did we have to do? You had to

be the engineer, you had to be the tax collector, you had to be the dog catcher

- everything under the sun, under the Municipalities Act, you had to do it. You

had to deal with your staff, you had to deal with everything in those small

communities and they didn't have a clue what was in under the act, whether it be

a city act, whether it be a municipalities act governing smaller towns or what

have you. The same thing is happening in this Province today but the only thing

about it is that the mayors and councillors in larger municipalities in this

Province today are starting to see what is happening. They are starting to see

that they need the smaller municipalities. They are starting to see that they

need to be on top of what is happening in their departments, the same thing as a

minister. The minister got a job to control everything that is going on in his

or her department but if they lay down the law and say that I am firm, this is

what I need, this is what I want, this is what I expect from their staff, then

nine chances out of ten, 90 per cent or probably 95 per cent of the cases the

staff who work under the minister will make sure that that particular work is

done and will make sure that they won't so called 'screw-up' and they will make

sure that their minister or their mayor or whatever is protected.

Mr. Speaker, the municipal operating grants in this Province

since 1989 have been gutted. They have gone from $2,000 per kilometre for road

components down to as low as sixty-nine, now back up to $500. The other grants,

the whole structure of municipal operating grants has been changed, changed

completely. I had a mayor I was talking to this morning from a small community

in this Province who, all of a sudden last winter, because of the $3,000 the

Department of Works, Services and Transportation was charging for snow clearing,

they took it upon themselves to do it. It cost $12,000 last winter.

AN HON. MEMBER: To do what?

MR. WOODFORD: To do their snow clearing themselves. This

year they tendered it. They tendered the same thing this year for their snow

clearing this winter. The lowest tender they got was $48,000. They just cannot

afford to do it. They have been just told by the minister that they are cut 22

per cent which is equivalent to $25,000 from this municipality who has to do up

a budget before December 31. They are owed $108,000 in the community itself.

They cannot collect because there is nothing to collect, nobody working in the

community. A handful of people working in the community. A few people on the

TAGS program, a handful on UI, the rest on social services and they cannot

collect. What can they do? Just put yourself in some of those people's shoes and

just put yourself in a position that some of those people have when they sit

around the table after a hard days work, a bunch of volunteers trying to look

after municipalities in the Province and they just throw up their arms and say,

what can we do? It is alright to say that municipalities must take more

responsibility for the running of their towns and cities of this Province. Yes,

no question, they have been doing it for years, taking responsibility, but when

they got a certain amount of funds - they are told at the beginning of one year

that they have a certain figure to work with all throughout the next and then

all of a sudden someone tells them that they do not have it, what do you do?

An analogy I would like to draw here, Mr. Chairman, is this,

if most members in this Chamber - I don't know about most but probably a fairly

high percentage I suppose - got mortgages, cars or payments somewhere to some

financial institution in the Province - there are not to many here in this House

who can afford to go out and buy a car, write a cheque for $20,000 or buy a

house for $100,000. There are not too many, there are a handful. If you got

$2,000 a month coming in, your payments are $1,500, you got $500 for groceries

and a few dollars to pay the light bill. All of a sudden the bank manager calls

you and says: I want $1,700 this month or I want $1,800 this month. What do they

do? Now if they have a choice to come in and extend their mortgages or extend

their car an extra year they may be able to pick up enough dollars to cover it

but if they do not have any choice whatsoever, their income is stable, it does

not fluctuate at all up or down and they got no room to move and the bank puts

the squeeze on him, what happens next? They lose their homes, they lose their

cars or they lose whatever the payment was supposed to be made for they have no

room to move. Municipalities in this Province today have no room to move.

The larger centres, I will say, there is no question, if they

put their mil rate up because of the high value of their appraisals, their

properties, after the appraisals are done their properties are appraised at a

fairly high market value and then when they put up the mil rate half a

percentage point, or a percentage point, they usually collect a fairly

substantial amount of dollars, but in a smaller municipality in rural

Newfoundland the property values are set. Most of them are $25,000 or $30,000

and there are very few in those municipalities that go beyond $75,000, $80,000,

$90,000, or $100,000.

They can put the mil rate up to fifty if they like but they

cannot collect any more unless they put up the minimums for poll tax or the

basic minimums for a property in the community, and how can you justify that

when you have probably 80 or 90 per cent of the community on UI, social

services, or something? There is no infrastructure. They have no businesses

where they can attach an extra mil or half mil on a commercial rate. They have

absolutely nothing to fall back on only the people and the residential

properties in that particular community. There is absolutely no where to go.

Now, the example I just gave about this one particular

community this year in a squeeze and what they are going to do about it, I will

say the minister will have resignations passed to him tomorrow. I know of three

that will be passed to him tomorrow. I just pity someone in those particular

communities if they accept an appointment by the minister to take control of

those communities. I would not want to be the one walking into a store or post

office, or walking into a general meeting in those municipalities, after seeing

an elected person quit out of frustration, go in and say: boys, I am sorry the

mil rate has gone up an extra one or two, and you are paying an extra this on

garbage collection, an extra this for street lights, and so on when they could

not get the funds before. I pity those people.

Now, if they are foolish enough to accept it, I suppose, you

should not have any pity because there will be no pity from the people in those

municipalities. There is no compassion by the Department of Municipal Affairs,

absolutely no sympathy, no sympathy at all from anybody in government today for

the municipalities in this Province. The only thing they could hang their hat on

were the municipal operating grants. Because of the gutting of the other system

over the years this one at least, they thought, might be stabilized but now it

has gone down some $11 million. The minister has already stated that he not

finished.

People said it was because of monies that were spent in the

past. Sure, it is because of monies spent in the past. People asked for services

and in most cases they got them. People should be afforded the right to at least

good, clean, healthy drinking water in this Province. It is like the fishery,

year after year, after year, fishermen and politicians, some of them sitting

across the House today, screeched and bawled for more quotas, extra quota. I

remember in the election campaign of 1989 when John Crosbie was going to cut the

total allowable catch for northern cod, groundfish, and so on in this Province.

There was an outcry from some members opposite that it should not be done and

that it should not be touched, but at the same time today we hear people

opposite say, well you should not have done this a few years ago, or you should

have done it this way.

Hindsight is 20/20, Mr. Chairman. If we all had it there

would be no need for elections in this Province, absolutely none. The minister,

his officials, and his Cabinet colleagues are going to have to take heed or else

they are going to have, I would say, a bad, bad mess on their hands in the next

year to eighteen months. Because it is not only the smaller communities that are

hurting. The larger communities and the cities now are starting to hurt more.

For a mayor, Mr. Chairman, in this Province - and I will say

this publicly - to come on a television or publish in a paper, or anywhere else

in this Province, any of the news media, to sit down and accept a cut of 22 per

cent for the municipality should not be allowed to serve in that capacity. He or

she should not be allowed to serve in it. If there is one mayor in this Province

today to stand up in the media and say that he or she will accept the 22 per

cent to the municipalities, he or she should be booted out! He or she doesn't

deserve the position. I don't care who he or she is, if he or she is a Liberal

or PC or what he or she is. Get the hell out. He or she should be standing up

for the people. The same as today in this Province today, the Premier in this

Province today.

The federal government is gutting Newfoundland systematically

day after day. UI, health care, education. You could go on. Municipalities, CN

Marine, the ferry service. Newfoundland today is gutted and there is not a word

said about it. Absolutely nothing. Airports in the Province going to close,

nothing done, no responsibility. Who were we elected to represent? We were

elected in this Province to represent the people of this Province, and

regardless of who is in power in Ottawa you should take them on. We should take

them on. But we are not doing it.

I remember a few short years ago previous to the fall of

1993, it was the spring of 1993, when the federal government said there would be

a shortfall of $32 million to $33 million in equalization payments to this

Province. There was all kinds of criticism. There were ministers going off to

Ottawa, the Premier was off to Ottawa. Today? We've been gutted, we've been

almost left on our own down here, and there is not a word. There is absolutely

nothing said.

Members have to remember that within the next year, eighteen

months, I say to members opposite that they will have to face the electorate in

this Province. I can assure you that the concerns and grievances and everything

else that is going on in this Province today are not going to be forgotten.

People today remember. People today will be asking questions. They are more

tuned into what is going on. They are asking questions they didn't ever before

in this Province. Students today who are being told: Yes, get an education, get

your Grade XII, get out and go to some post-secondary institution, keep on going

- what do they do it with? The parents only have x number of dollars for income.

They go for a loan and they are told that: The parent is on the threshold. You

are making $40,000, $50,000 a year. Although you have a mortgage, although you

are paying for a car, although you are paying for this or paying for that, every

dollar you have coming in is going out, but the student is not allowed to get a

loan. Just because of that.

What do they do? The banks today have some programs out where

they are offering $5,000 for an undergraduate student. Big deal! All you have to

do is pay the interest on it. Sort of a line of credit. Come on in, sit right

down. What else do they do? The parent has to sign. For a graduate student it

might go up to a maximum of $20,000. Come in. The banks in this country today

have every individual in this country right by the tail. I could say something

else. Because they are squeezing them. Every time they squeeze them they are

hurting.

When I look in The Globe and Mail and I see 29 per

cent in corporate profits for last year, when I see banks going down to St.

Helena and setting up a bank where there are 5,000 people, when I see big

corporate buddies in this Province going off to (inaudible) are writing off a

$300 million loan in Mexico, when I see them writing off $200 million to Russia,

and when I look around this Province and every time you go in and get your bank

statement: $4 for this, $6 for that, $8 for that. If you haven't got any money,

if you are on social services or UI, don't come in, don't talk to me. The banks

in this country, Mr. Chairman, have a lobbyist in Ottawa who does nothing else

only lobby the federal government so it won't make any changes to the bank act

that will be detrim

Document details

CollectionNewfoundland and Labrador — Debates (Hansard)
Citation1995-11-17
Typehansard
Volume / chapter1995-11-17
Languageen
Formathtm
SourcePROVINCIAL
Identifier7a392df2f438247d3f9ff2edcfb286a681034b48

Source file is stored in the law ingest library (htm).