Ontario Hansard — 15 June 1982 (32nd Parliament, 2nd Session)
1982-06-15
Ontario — Debates (Hansard)
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June 15, 1982
32nd Parliament, 2nd Session
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Hansard Transcripts
STATEMENT BY THE MINISTRY
ONTARIO HUMAN RIGHTS CODE
MEMBERS' EXPENDITURES
ORAL QUESTIONS
ABSENCE OF TREASURER
HIGHWAY TRAFFIC AMENDMENT BILL
GO TRANSIT SERVICES
MCKELLAR GENERAL HOSPITAL
RETAIL SALES TAX
BUDGETARY PROCESS
APPLICATION OF TAX
MCKELLAR GENERAL HOSPITAL
PETITIONS
TAX ON CLOTHING REPAIRS
TAX ON MEALS
UNIVERSAL MEDICAL CARE
INTRODUCTION OF BILLS
BRANTFORD-BRANT ANNEXATION AMENDMENT ACT
CITY OF THUNDER BAY AMENDMENT ACT
AGE OF RETIREMENT ACT
INSURED HEALTH SERVICES ACT
ANSWERS TO QUESTIONS ON NOTICE PAPER AND RESPONSE TO PETITION
MOTION TO SET ASIDE ORDINARY BUSINESS
ORDERS OF THE DAY
CITY OF LONDON ACT
UNIVERSITY OF WESTERN ONTARIO ACT
JAPANESE CANADIAN CULTURAL CENTRE OF TORONTO ACT
CITY OF HAMILTON ACT
CITY OF OTTAWA ACT
TOWNSHIP OF MOONBEAM ACT
THIRD READINGS
MOTION TO SUSPEND ORDINARY BUSINESS (CONTINUED)
EMPLOYMENT IN SUDBURY
The House met at 2 p.m.
Prayers
STATEMENT BY THE MINISTRY
ONTARIO HUMAN RIGHTS CODE
Hon. Mr. Welch: Mr. Speaker, on behalf of the Premier (Mr. Davis), I would like to draw to the attention of honourable members that 20 years ago today, the Ontario Human Rights Code became law. Ontario was the first Canadian jurisdiction to enact a comprehensive code of human rights and this became the model for similar statutory protection across the country.
As we mark this anniversary, I think it is appropriate to pay tribute to those who were responsible for the initial development of the code and for its subsequent progressive implementation. Their commitment has ensured that we remain in the forefront in the fight against discrimination. I think particularly of the contribution of the Honourable John Robarts, who took such a strong personal interest in this initiative in 1962.
But we have more to celebrate today than this auspicious anniversary. As members know, this is also the day on which our new Human Rights Code comes into effect. Its significantly expanded mandate, along with important new procedural and remedial provisions, underlines our continued commitment to be in the vanguard in protecting individuals against discrimination.
All of us can take pride today in this statute which will enable us to preserve and protect the kind of society we in Ontario wish to have. The openness of the process by which we arrived at the new code is in itself a reflection of this objective.
As a result of public hearings conducted by the Ontario Human Rights Commission in 1975 and 1976, and of the extensive legislative and public debate of the government's proposals, we have, I believe, achieved a code which addresses the major human rights concerns of the people of Ontario in 1982.
All participants in the process, and particularly the members of this House, can be justifiably proud of the contribution each has made. I would like to single out the efforts of the Minister of Consumer and Commercial Relations (Mr. Elgie), whose vision and personal commitment to human rights are so clearly manifested in our new code.
As we mark this important milestone in the evolution of human rights in Ontario, I know that the House joins me in expressing our best wishes, and our keen and continuing interest, to the new chairman, Canon Borden Purcell, and his fellow commissioners and the staff, as they move to meet the challenge of their new mandate.
Hon. Mr. Gregory: Mr. Speaker, I wonder if I might ask the House to give me a minute to get the minister.
Interjections.
Mr. Speaker: Order.
Mr. Peterson: A brief hiatus.
Ms. Copps: They do not even show up for question period now.
Mr. Peterson: Mr. Speaker, since there is a brief hiatus in the proceedings of the House as the government whip goes to get some minister or other, would you kindly search out the Treasurer (Mr. F. S. Miller) who has missed something like eight out of the last 18 question periods since his budget and has not been here to account? We will sit here and wait for him too.
MEMBERS' EXPENDITURES
Mr. Speaker: Just while we are waiting, I would like to inform the House that I have today laid upon the table the individual members' expenditures for the fiscal year 1981-82. I would advise all honourable members that these documents will be deposited in the individual post office boxes and may be picked up at their convenience.
Hon. Mr. Gregory: Mr. Speaker, the Minister of Government Services (Mr. Wiseman) is not here to give his statement. He will give it tomorrow.
ORAL QUESTIONS
ABSENCE OF TREASURER
Mr. Peterson: Where is the minister?
Would you be so kind, Mr. Speaker, to tell me if the Treasurer is coming or, perhaps, the acting government House leader would know the answer to that question? The Treasurer has been conspicuously absent since his budget. Perhaps I could just wait until he comes.
Mr. Speaker: I do not have any way of knowing that, of course. Having called oral questions, I would suggest that we get on.
Mr. Foulds: Mr. Speaker, I move the adjournment of the House until the responsible ministers are here.
Mr. Speaker: I am afraid that motion is out of order because we have not reached the orders of the day at this point.
Mr. Foulds: We could have a recess.
Mr. Speaker: The standing orders are quite clear, the House proceeds at 2 p.m. and routine proceedings carry on. I have called oral questions; we will proceed.
Mr. Peterson: On a point of order, Mr. Speaker: Since you have just established a precedent, sir, at the request of the government House leader --
Mr. Speaker: Order. I have not established any precedent at the request of anybody. The standing orders are very clear and, frankly, I object strongly to that insinuation.
Mr. Peterson: Kindly hear me out; just to recall the chronology --
Mr. Speaker: I would ask you to withdraw that statement, please.
Mr. Peterson: Hear me out, Mr. Speaker. Withdraw what?
Mr. Speaker: I would ask you to withdraw that insinuation: acting under the instructions of somebody else.
Mr. Peterson: At the request of.
Mr. Speaker: No, sir.
Mr. Peterson: If you would be good enough to hear me out, Mr. Speaker --
Mr. Speaker: I would ask you, please, to withdraw that remark.
Mr. Peterson: I will withdraw whatever is offensive to you, Mr. Speaker. I am not sure I understand it but then I would like to proceed with my point.
Mr. Speaker: Yes, you may.
Mr. Peterson: The point as I understand it, sir, is that about five minutes ago the acting government House leader stood up and said, "We cannot find the minister, who is supposed to give a statement" -- who has now shown up. He asked you for a moment or two while he went to search out that minister; he then left the chamber to find the minister.
2:10 p.m.
In the meantime you decided, in your judgement, to occupy the time of the House telling us that you had just tabled the members' expenses for the year instead of proceeding with either ministerial statements or oral questions from the opposition. When the government whip came back he said to you that he could not find the minister, and then you proceeded with oral questions.
I would suggest to you that somehow or other you agreed to follow his request to you, at least in some measure. Therefore, I would suggest that there is some precedent, that you have the power you have just established to hold up the proceedings of the House or do something else; or perhaps you would like to make another statement of some type or other as we await the presence of the Treasurer (Mr. F. S. Miller), who has vacated not only his responsibilities but also this House.
I am extremely upset about the lack of respect on the part of the government, particularly the Treasurer, who has presented us with a most controversial budget, who is not prepared to discuss it in committee, is not prepared to bring forward the budget bills and now is not prepared to sit in the House and answer for his budget.
You ruled, in your wisdom, Mr. Speaker, that my colleague the deputy leader of the New Democratic Party was out of order when he moved for adjournment. I would ask you, sir, to exercise the great powers you do have in presiding over this chamber to make sure that opposition members are treated fairly and that the Treasurer will in fact come to answer for his budget.
If you are not prepared to do that, sir, I would ask to stand down until the Treasurer does come into this chamber today. Or perhaps the acting House leader can shed some light on this mysterious chap.
Mr. Speaker: I would suggest that what I have done in the proceedings to date is quite clearly written under the standing orders; I have not departed in any way, shape or form. The House leader did inform the House that the minister who was going to make a statement was apparently not prepared to make that statement. I moved on to the next order of business, which is clearly established under standing orders.
It is not my responsibility -- I want to say this again very clearly to all honourable members -- to assure the attendance of anyone in this House, whether he be on the government side or on the opposition side.
Mr. Nixon: On the point of order, Mr. Speaker: I think perhaps you might recall that the leader of my party did bring to your attention that during the hiatus, to use his very word, you did proceed with some other business of the House. It seems to me that under those circumstances the government ought to either produce the Treasurer or give some reasonable explanation for his continued absence day after day.
Mr. McClellan: If I may speak briefly to the same point, Mr. Speaker: It would surely be a matter of common courtesy for the government to advise the opposition whether or not the Treasurer intends to be present today. If he is going to be delayed, I would suggest that you put it to the House, for unanimous consent, that we recess until the Treasurer deigns to appear among us.
Mr. Speaker: The acting government House leader has that information, quite obviously, and is going to share it with us now.
Hon. Mr. Gregory: Mr. Speaker, going back to the remarks of the Leader of the Opposition (Mr. Peterson), I specifically asked if the House would give me a few moments, not the Speaker. I would like to point out that at the present time, the Treasurer -- and, as members know, he has many responsibilities -- is meeting with the Ontario Caterers Association. Yesterday, the member chastised him for not meeting with that very association.
Interjections.
Mr. Sweeney: Why at two o'clock in the afternoon? Why not in the morning?
Mr. Speaker: Order. The acting government House leader had the floor. Were you finished with your statement'?
Hon. Mr. Gregory: I wanted to add only that he expects to be here shortly.
Interjections.
Mr. Speaker: Order.
Mr. Foulds: Mr. Speaker, I think the question before us is a fundamental one. Traditionally in parliament the opposition members of the Legislature have had the authority, the privilege and the responsibility of examining tax measures and budgetary matters.
When the government has taken the action it has now taken of withdrawing those specific bills from discussion in the Legislature, and when the Treasurer has absented himself from the House so the opposition is unable to put questions to him on the single, most important issue in the public domain in Ontario at the present time, the tax measures, surely it is within the Speaker's responsibility, privileges and rights to protect our rights by calling for a recess of the House until the Treasurer has finished meeting with the caterers and we can question him in this Legislature.
Mr. Peterson: Mr. Speaker, I think the deputy leader of the New Democratic Party put the point very well given the extraordinary nature of the circumstances here. I would share his request to you to ask for the unanimous consent of this House either to recess until the Treasurer shows up today, to stand down, or else we and the members of the New Democratic Party can sit here in silence and wait for the Treasurer to come.
Hon. Mr. Gregory: Mr. Speaker, as I mentioned earlier, the Treasurer is expected shortly. He has an important engagement. Rather than waste the question period and the time of the leaders of the opposition parties, may I ask for unanimous agreement of the House to revert to statements?
Mr. Martel: Mr. Speaker, shortly after the budget came in several weeks ago, the Treasurer decided to go to Sault Ste. Marie and the following week he decided to go to Japan. Almost daily, the Premier (Mr. Davis) has asked us to ask him the questions and he would get the answers. I am still waiting to hear some of those answers that were long since promised.
I do not see how we can discuss anything pertaining to the budget when the Treasurer refuses to come to the Legislature. He was not here yesterday and he is not here today. When does he come around to answer for his budget, particularly in view of the fact he is not here to answer and the government will not send any of the bills to committee where people from the outside could make presentations?
We are in a bind. The Treasurer will not answer, he will not show up and the government will not send the bills to committee so there is no way of dealing with budgetary matters. What are we supposed to do? Are we supposed to just stand around and ask the Premier who might get us an answer or do we adjourn the House and wait for them to come back? We should recess for a while.
Mr. Speaker: May I point out to the member for Sudbury East (Mr. Martel) there is nothing in the standing orders that provides for the questioning of the Speaker.
Mr. Martel: Well, Mr. Speaker, that is so.
Mr. Speaker: Order. I am on my feet.
Mr. Martel: All right, don't panic.
Mr. Speaker: I am not, so the member should not. As I said before, I have no prior knowledge of who is going to be here and who is not going to be here. It is not my responsibility to ensure the attendance of anyone in this chamber. We all know the time this chamber convenes. We all know what the order of proceedings is and I have called oral questions. I would suggest we get on with oral questions by questioning other ministers.
Hon. Mr. Gregory: Mr. Speaker, I had asked for unanimous agreement of the House to revert to statements. Perhaps that might give us the time we need.
Mr. Speaker: Do we have the unanimous consent of the House to revert to ministerial statements?
Mr. Di Santo: No, no.
Mr. Speaker: Okay. I have no alternative but to go on with oral questions.
2:20 p.m.
Mr. Peterson: Mr. Speaker, in view of the circumstances and these unfulfilled promises, I have no questions until the Treasurer shows up to answer. It is about time he showed up in this House. We will leave the House until he returns.
Mr. Foulds: Mr. Speaker, on a point of order: Can you inform me if, when the opposition absents itself, you will run the clock for question period?
Mr. Speaker: Yes, the clock is running. That was the very point I was trying to make. I have called oral questions and the clock is running. That is the order of business that has been called.
Mr. Foulds: Could we have unanimous consent of the House to revert to questions when the ministers appear?
Mr. Speaker: I do not understand your request because we do not have to revert; we are now in the oral question period.
Mr. Foulds: In those circumstances, we do not feel that we can proceed with question period. However, we will sit in our places and remain silent in protest.
HIGHWAY TRAFFIC AMENDMENT BILL
Mr. Robinson: Mr. Speaker, I have a question for the Minister of Transportation and Communications. In light of the swift and speedy passage through second reading last night of a number of amendments to the Highway Traffic Act, including one which will provide for mandatory child restraints in vehicles in Ontario, can he tell this House when he anticipates that third reading may be called and at what point thereafter implementation of the program will begin?
Hon. Mr. Snow: Mr. Speaker, the amendments to the Highway Traffic Act were referred to the committee of the whole House. We had intended to proceed with that last evening but we ran out of time. I will now have to wait until the House leader schedules time for the committee discussion, which I believe will be brief.
I have two minor amendments to introduce, after which time the bill will receive third reading and, I hope, royal assent. I expect that the implementation date will be some time in late summer or early fall.
Mr. Robinson: In the light of the minister's answer, will the minister be encouraging an educational program designed to have parents make use of child restraint devices even now, in the period before the passage of the legislation in the House and its formal implementation?
Hon. Mr. Grossman: These are the best questions we have had in a long time.
Mr. Speaker: Order.
Hon. Mr. Snow: If the Minister of Health would refrain: Yes, we will be proceeding with an educational program within the limits of the money we will have available. As I mentioned last night during the debate, we do not have a budget that is sufficient to carry on an intensified public relations or educational program.
However, I will be asking members of this House to do everything possible, through their newsletters to constituents and other means they have within their ridings -- press releases, speeches and what not -- to advise the public of these new regulations which will be forthcoming and to encourage people to start using child restraint devices as soon as possible, even before the regulations are in force, for their own personal safety and that of their children.
Mr. Speaker: New Democratic Party? That was the final supplementary.
Mr. Cooke: They want to treat this place like it's a one-party system. A one-party state is exactly how you treat it. You've got no respect for democracy. You don't even know what it means.
Mr. Speaker: Order, order. I have recognized the member for Durham East.
GO TRANSIT SERVICES
Mr. Cureatz: Mr. Speaker, a question to the Minister of Transportation and Communications. I know the member for Oshawa (Mr. Breaugh) would also like to ask this question but at the moment he is unavailable.
Could the minister inform the House whether he has made any progress in determining whether the GO train will be expanded to Oshawa? Has the 90-day report been tabled as yet? Has the report on the expansion of the GO train to Oshawa been tabled?
Hon. Mr. Snow: No, Mr. Speaker. As I announced in the House a few weeks ago, I anticipated that it would be 90 days before my staff could fully review all the options which we wished to look at. That is in progress now. At a meeting I had with GO Transit officials as recently as this morning, I was told that the work is on
schedule and I hope to have the report on my desk by July 30.
Mr. Cureatz: Can the minister foresee any extension of his 90-day format which he indicated to the House about a month ago?
Hon. Mr. Snow: I cannot add any more to what I have said. My staff tell me they will have their work completed and will have their report to me by July 30, which I believe will be within the 90 days I asked for.
Mr. R. F. Johnston: On a point of order, Mr. Speaker: Standing order 27(
a) says, "The oral question period shall be limited to 60 minutes, including supplementary questions..."
Inasmuch as you have not had any real questions as yet, Mr. Speaker, it is within your power to call an end to question period, if you would like to.
Mr. Speaker: Order. I have called oral questions. I have given everybody in the House the opportunity to ask those questions. The people who stand up are being recognized during this period.
I would like to point out to honourable members, going a little further into standing order 27(a), "The oral question period shall be limited to 60 minutes, including supplementary questions and points of order."
It is my understanding that if questions are depleted before 60 minutes are used up, then we move on to the next order of business.
Mr. Hennessy: Mr. Speaker, I wish this would happen more often. I never get a chance to speak with the opposition talking all the time.
Mr. Speaker: Now for the question.
MCKELLAR GENERAL HOSPITAL
Mr. Hennessy: Mr. Speaker, my question is to the Minister of Health. Yesterday, at a news conference, the McKellar General Hospital nurses urged immediate action. The news release says:
"Evidence continues to mount that the nursing care at McKellar General Hospital is not proper or even safe, but the nurses are unable to get any concrete commitment from either the hospital's administration, the board of governors or the provincial Health ministry for immediate action to remedy the critical situation.
"The hospital administration says they do not have the budget and the board of governors and Health minister Larry Grossman have declined to meet with the nurses."
I would like to ask the minister about that request.
Hon. Mr. Grossman: Mr. Speaker, that is an excellent question and I am delighted the member for Fort William raised the concerns on behalf of the people in all of Thunder Bay, including the people in the riding of Port Arthur who are so often forgotten, particularly today when their member has chosen not to speak on this very important and pressing matter in the Thunder Bay area.
Mr. Speaker: Now to answer the question, please.
2:30 p.m.
Mr. R. F. Johnston: On a point of order, Mr. Speaker: The minister is imputing motives to the member for Port Arthur (Mr. Foulds). He knows very well that we are protesting the absence of the Treasurer in this House. It has nothing to do with a lack of interest by the member in this particular issue and the minister knows that. Now that the Treasurer is here, maybe we can get back to dealing with this House in a proper fashion, not as a one-party state.
Mr. Speaker: The minister will answer the question, please.
Interjections.
Hon. Mr. Grossman: The Liberals are trooping back from the Science Council of Canada.
Interjections.
Hon. Mr. Grossman: You will get your turn. David has only a few years to go.
Mr. Speaker: On to the question, please.
Interjection.
Hon. Mr. Grossman: Yes. Look how well you did when Stuart was here.
Mr. Speaker: Never mind the interjections.
Hon. Mr. Grossman: In any case, I want to address this --
Interjections.
Mr. Speaker: The Minister of Health has the floor, answering a question of the member for Fort William.
Hon. Mr. Grossman: For those members who are interested in the situation at McKellar General Hospital in Thunder Bay, I would like to indicate that we have reviewed the situation at the hospital. The nursing staff should be aware that just last week the hospital was in, on Thursday or Friday, forwarding a request to the ministry for some more funding and we will be looking at that as time goes on. We are dealing with that at the present time and hope to have some further answers for the hospital shortly.
I think it is important to remember that there was an independent nursing assessment committee established one year ago. Since that time, there has been extensive action taken by the McKellar hospital. The intensive care unit staff has been increased to approximately 35 full-time employees from the previous 23. There has been a total restructuring of the in-house education programs for nurses in recent months in accordance with the assessment committee recommendations. They have upgraded their in-house orientation program for nurses in recent months, also as recommended by the assessment committee.
Finally, the executive director of McKellar indicates that hospital complement has been increased by 30 additional full-time positions within the nursing department since the assessment committee review occurred in the spring of 1981.
Just to round the picture out entirely, Dr. Peter Neelands, the president of the Thunder Bay Medical Association, confirms our view of the hospital as a safe and proper facility. Dr. Neelands thinks McKellar is "a very good hospital and very safe. If you want to get respiratory care, if you have a head injury in this area, McKellar is still the place to go and you get damned fine care."
In response to the suggestion that I have not agreed to meet with the nursing staff at the hospital, may I say very simply that at the appropriate time when hospitals draw these kinds of situations to our attention, obviously we will be willing to meet with the hospital and anyone else who has interest in the hospital day-to-day management. At the present time, when it comes to questions of the day-to-day operation of the hospital, which is what this is all about, it remains quite properly in the hands of the hospital administration. We are satisfied that McKellar remains a safe and reasonable hospital.
Mr. Hennessy: Can the minister assure me that the nurses from McKellar hospital will receive consideration, not just that the hospital will come down here and meet and the nurses will be forgotten? I think the main problem is maybe the lack of nurses. I would like the minister and his staff to give them every consideration.
Hon. Mr. Grossman: I can assure the honourable member that we are reviewing the situation very carefully, as he can tell from the detail of this answer. We will be monitoring the situation with regard to McKellar's response to the various issues raised. If it appears appropriate to have the hospital or the nursing group or both in to see me, then with his assistance we can arrange that.
Mr. Speaker: We will revert to the regular order of oral questions as provided for in standing order 27(b). The Leader of the Opposition (Mr. Peterson).
Order, order. The Solicitor General.
Hon. G. W. Taylor: On a point of order, Mr. Speaker: I believe you did start the question period. The rule calls for the normal procedure to start where the two leaders can put their questions. They were not here. At other times we have done it on consent when they have wanted to rotate the order. You started with the order for question period, Mr. Speaker; this side started, and they refused to participate in question period. Now you should go to that side with the rotation, but there should be no leaders' questions unless you obtain the consent of the House.
Mr. Laughren: Is this government policy?
Interjections.
Mr. Speaker: Order. The standing orders are quite clear as to the rotation; they are quite clear as to the provision for questions by the leaders of the two opposition parties.
Mr. Laughren: We can now debate your rulings; is that it?
Mr. Speaker: I beg your pardon?
Mr. Laughren: Can we debate your rulings from now on?
Mr. Speaker: No, you cannot. I am not debating; I am giving an explanation, if you would open your ears.
We will revert to oral questions as provided by standing order 27(b). The Leader of the Opposition will put his first question.
RETAIL SALES TAX
Mr. Peterson: Thank you, Mr. Speaker. I want to welcome the Treasurer back to the House, and I want to say this --
Mr. Watson: Welcome back, David.
Interjections.
Mr. Speaker: Order.
Mr. Elston: He's just being nice about it. He welcomed him.
Mr. Speaker: Order. Having regard for the mood of the House, I request the co-operation of all honourable members by not prefacing their questions with any provocative statements or remarks.
Mr. Peterson: I was being as generous in spirit as I possibly could be in welcoming our lost brother back to the House.
In view of the fact that the Treasurer has missed eight out of the last 18 question periods; in view of the fact that he meets only reluctantly with people and frequently as a result of pressure from the opposition, witness his meeting at 1:30 today with the Ontario Caterers Association; and in view of the fact that he is not prepared to introduce his budget bills so we can have a discussion in this House, surely it is not unreasonable to ask the Treasurer to use his influence to send the Retail Sales Tax Act to committee so we can have an open hearing where we can hear witnesses expressing their point of view on this most controversial tax measure which he has introduced.
Mr. J. M. Johnson: Is that the same question you asked last week?
Interjections.
Mr. Peterson: Is that not true?
Hon. F. S. Miller: Mr. Speaker, it is nice to see that the Leader of the Opposition recognized he did not have a question until that point.
If he checks the last 10 question periods, I think he will find I have been here for nine of them. During one of them, I was consulting with the municipalities of this province about some of their problems, as the Leader of the Opposition quickly tells me I should do. I was a little late today because I spent almost an hour with the mobile caterers, as he suggested I should do.
Interjections.
Mr. Speaker: Order.
Hon. F. S. Miller: I know the Leader of the Opposition works very hard, but I spend as many hours per day seeing as many groups as I can whilst balancing that with my obligations to be here and to be other places. Once in a while, like the Leader of the Opposition, who also has been away the odd day, I have other pressing problems that take me away from the House.
I had a very good discussion with the mobile caterers. Members may question me about it later if they wish.
To get back to the question that was asked: Under standing order 56(c), the Leader of the Opposition and his party have the right to direct that bill to any committee they wish. Why do they not let it pass and do that?
Mr. Peterson: Why does the Treasurer not bring it up for second reading? That is the whole point.
Hon. F. S. Miller: Mr. Speaker, is that a question?
Mr. Peterson: No. Let me --
Interjections.
Mr. Speaker: Order. I did not recognize the Treasurer. I would again ask the co-operation of people asking questions to be very careful in the wording they choose in prefacing the question.
2:40 p.m.
Mr. Peterson: Since the Treasurer has now decided to consult me with respect to his schedule, would he not agree it was rather unfair to leave this House the day after the budget to go to Sault Ste. Marie? Was it not rather unfair to the other members of this House and the people of this province to leave for Japan for a week in the week after his budget and then to miss other question periods because he was travelling about?
Would he not agree it was particularly unfair for him not to be here yesterday, Black Monday as it is called by so many people across this province, to answer for his tax increases? If the Treasurer wants to hear a discussion on this, why does he not instruct his House leader to bring in the Retail Sales Tax Act so we can have a discussion on the budget bills here in this House?
Hon. F. S. Miller: First, let us get our facts straight. He said I was not here for question period after the budget and that I was in Sault Ste. Marie. That is false. I was here the day after the budget. I was also here the Monday after the budget when he left the bells ringing for four days, wasting the time of this House.
Mr. Bradley: One question period.
Interjections.
Mr. Speaker: Order.
Hon. F. S. Miller: I was here on the Tuesday --
Mr. Wrye: One. Interjections.
Mr. Speaker: Order.
Mr. Wrye: We were not sitting on Saturday.
Hon. Mr. Ashe: Friday, Saturday, Sunday, Monday -- four days.
Ms. Copps: You can't count either.
Hon. Mr. Ashe: The bells rang four days.
Mr. Breithaupt: One question period.
Hon. F. S. Miller: I have also been here through 7½ hours of the reading of public accounts when Bill 111 could have been discussed. Does the member call that anything but a filibuster? I would just ask him to request an unvarnished, unbiased opinion of anyone in the gallery as to whether we stuck to the facts and progressed through the business of this House in an orderly, expeditious way. The answer is no. He could have done it if he had wanted to.
Mr. Cooke: Mr. Speaker, the Treasurer can try to fudge the issue, but when the sales tax bill is referred out to committee, which this party has indicated it will do by 20 members standing, will his party block or will it not block public hearings? Secondly, what does he have against public hearings on the sales tax bill? I understand from earlier today in question period that he does believe in a one-party system, but what is wrong with bringing the other 55 members who represent the majority of the voters in this province into debate and testimony in front of the committee so we too can have proper input in making a decision on this bill?
Hon. F. S. Miller: Standing 20 members in their places is somewhat difficult for his party these days.
Interjections.
Mr. Speaker: Order. I asked the co-operation of those people who were asking questions not to be provocative. I am asking the co-operation of all those answering questions not to be provocative.
Hon. F. S. Miller: As Treasurer, I am charged with adding --
Mr. Cooke: Why don't you take this place seriously for once?
Mr. Speaker: Order. The member for Windsor-Riverside has asked a supplementary.
Mr. Cooke: Tell that joker over there to take this place seriously.
Mr. Speaker: Let the Treasurer respond.
Hon. F. S. Miller: Mr. Speaker, what happens in any committee of this House is a function of the opinion of my Premier, the House leader and the committee. I have great confidence in the democratic process, which has lived well for many years with most governments having a majority in most parts of the world. If the third party has suddenly lost confidence in a system of government that is, finally, responsible to the people, then it should not be here.
Interjections.
Mr. Peterson: What possible reason can the Treasurer have for not letting this bill go to committee, for not instructing his supporters to allow outside witnesses so that we can hear people affected by this bill? If that undertaking is given by him and his House leader, we can easily arrange for speedy passage of the Retail Sales Tax Act through second reading of this House and get into a full discussion, this summer, of some of the details that we think are wrong. Surely it is not an unfair request on our part that the Treasurer ask his supporters to bring in outside witnesses'? He has that power and should not deny it. Why do we not all work along those lines?
Hon. F. S. Miller: The Leader of the Opposition has lots of power too, and he is showing it, which is only fair. That is the democratic process. The opposition takes certain risks and we take certain risks. They are using up a lot of time in what they may or may not call a filibuster, but the risk is that the public will either see us as being wrong, or the opposition as wasting their time. Each of us has to assess the situation.
Mr. Riddell: Go to the people.
Hon. F. S. Miller: My friend, elections are every four years. We will stand on our record when we go to the people and you will still be on that side of the House.
Interjections.
BUDGETARY PROCESS
Mr. Peterson: Mr. Speaker, does the Treasurer not think his attitude as just expressed speaks very poorly about the budgetary process in this province -- and, indeed, at the national level -- when his political ego is on the line, when he can not admit he has made a mistake, especially since he has backed off in three instances already? We believe that if he understood all the effects of what he is doing he would back off in other areas. It is not going to cost him his political career. Other Treasurers have backed off.
Surely it should be part of our commitment to make the budgetary process more open, so that we understand fully how it affects people and thus avoid running into the kinds of problems experienced by the federal government with its budget. Even now the Treasurer is experiencing problems personally because of the many mistakes he has made in his budget.
Why do we in this House not show our commitment to a new budgetary process by working on the budget together this summer to do our best to make it more fair? Is that not a fair request?
Hon. F. S. Miller: Mr. Speaker, it sounds very reasonable. The fact is the job of the Leader of the Opposition is to tell us we are wrong all the time. It is not his job to co-operate with us in running the province. He has stuck very much to that principle. He holds us accountable -- and so do the people -- for the final policies of this province. We have very carefully assessed the needs of this country. I had easy --
Mr. Bradley: Let the people speak.
Interjections.
Hon. F. S. Miller: Please be quiet.
I had very easy ways to take money-raising steps which would not have given the Leader of the Opposition as much chance to sound like a hero. I suggest they were not in the interests of the economy.
We took a much more politically difficult step, including the refund of a quarter billion dollars to Ontario's small businessmen, starting as soon as the opposition allows us to. I understand the Minister of Revenue (Mr. Ashe) is all ready to send the cheques, but they are being held up by the opposition party, through their obstructive --
Ms. Copps: You are collecting the tax already.
Mr. Speaker: Order. Ignore the interjection and answer the question, please.
Hon. F. S. Miller: We should let that member go to work for us in Hamilton. The more she is in that riding, the more chance we have of winning.
Interjections.
Mr. Peterson: Let me remind the Treasurer that some of the finest work done by this Legislature is through the committee process. Committees frequently assume a nonpartisan attitude. I would also remind him that he would have a majority on a committee and ultimately would be able to get his way.
Let me remind him, too, that a number of his back-benchers are as unhappy as we are about what has been done. Would it not be fair to ask the Treasurer to subject his budget to that sort of process? Ultimately he will still have control, but I and a lot of our members believe we could have a much better budget if he subjected himself to that kind of process. Why can he not give instructions to start that now?
2:50 p.m.
Hon. F. S. Miller: I then recommend to the Leader of the Opposition that he pass as expeditiously as possible Bill 111, the tax bills and interim supply -- and trust the system.
Mr. Foulds: Mr. Speaker, could I get a clarification from the Treasurer? Did he say he cannot give the small businessmen a rebate because the legislation is not passed, and yet he can collect the sales tax even though that legislation is not passed? How does he explain that inconsistency?
Hon. F. S. Miller: Mr. Speaker, since it sounds inconsistent, I will find out.
Mr. Roy: Mr. Speaker --
Interjections.
Mr. Speaker: Order.
Mr. Roy: Mr. Speaker, the minister believes in the democratic process and he talks about the introduction of certain steps. Can the minister advise us whether, in the process of collecting a tax for which he has passed no legislation, he has asked for a legal opinion from the Attorney General (Mr. McMurtry) -- and I could see some reluctance in view of his record before the Supreme Court of Canada -- or from the Provincial Secretary for Justice (Mr. Sterling) to determine whether his taxation, retroactive as it is, is constitutional in view of the new Charter of Rights in existence since April of this year?
Has he sought a legal opinion, and can he undertake to tell this House that if this law is challenged, and there is a strong chance that it will be, he will not collect the tax while the bill is pending before the courts?
Hon. F. S. Miller: Mr. Speaker, it is funny he should ask. Yes.
APPLICATION OF TAX
Mr. Foulds: Mr. Speaker, I have a new question for seven per cent Miller. It is a shopping-bag question once again. Can the Treasurer tell me why this set of goods bought at a Dominion store, which includes milk, an apple, orange, yoghurt and a muffin, should be tax free while this set of goods, which is exactly parallel, milk, yoghurt, an orange -- I think the oranges are the same size -- an apple and a muffin, should be taxed because they were purchased from one of the truck vending machines on the streets of Metropolitan Toronto?
Hon. F. S. Miller: Mr. Speaker, I do not think those are the same articles just presented to me in my office by the Ontario Caterers Association because they did not have an orange or an apple, but they had most of those things and a couple of others besides.
The idea that one can go and purchase at normal retail any products that may also be sold through a commercial outlet and that they should therefore be treated exactly the same way is rather naive.
Mr. Wrye: It certainly has been since May 14.
Hon. F. S. Miller: Just a second. The price of that apple, the price of that orange, the price of that milk, of the muffin and of the yoghurt are quite different in the store where the member goes to get it and in the convenience location where it is retailed as a food.
I want to go one step further. If the member goes to a normal restaurant -- let us assume our downstairs restaurant -- and orders a lunch that is $6.50 à la carte and orders one pint of milk for 50 cents, he would have paid, until Sunday, June 13, 10 per cent tax on that milk. There is no change. If one purchases a commodity through a restaurant, through a vending location, it has been subject to the taxes applying to that type of location. That is still the same principle.
Mr. Foulds: I will not give the Treasurer the Coke or the Pepsi challenge because they are taxed wherever one buys them, but I would like to send to the Treasurer these two muffins, ask him to taste them and tell me why one should be taxable and the other not. I assure the Treasurer that they have not been buttered, tampered with or poisoned in any way.
Hon. F. S. Miller: Mr. Speaker, I got so carried away with the gift -- by the way, does the member mind having the first bite? -- that I did not hear his question.
Mr. Speaker: I should not wonder. Briefly, will the member state his question again.
Mr. Martel: I want to know which one was taxed.
Mr. Speaker: Ask your leader to ask the question.
Mr. Martel: He asked that; he was never answered.
Mr. Foulds: Is this my final supplementary, Mr. Speaker, or am I just repeating the other one?
Mr. Speaker: You are just repeating the former one.
Mr. Foulds: I want the Treasurer to taste them and tell me why one of those muffins should be taxed and not the other.
Hon. F. S. Miller: A person with my taste should not be given such a challenge.
Mr. Peterson: Mr. Speaker, speaking of contradictions in the Treasurer's budget -- that is what we are talking about; how he is punishing one and giving to the other and it all nets out -- I want to draw to his attention a letter from L. G. Bell Recycling in Welland. It is a small plant which recycles paper, metal and so on with a waste removal process. They are now saying his two-year tax holiday to small business will be totally offset by the expansion of retail sales tax applied to their particular process.
They are also saying they will lose business as a result of that, as a lot of other businesses are, because consumers will not pay the extra, making those businesses far less competitive. Any tax holiday they may have had under the Treasurer's tax forgiveness program will not be necessary anyway because they are not going to be making any money because of decreased volume. How does the Treasurer explain that contradiction?
Hon. F. S. Miller: Mr. Speaker, I would have to see the details of that company's tax problems. I think the member is just choosing two taxes that are unrelated and saying one contradicts the other. When I add a sales tax, an income tax, whatever I add, it generally applies to a great range of people in society. Whether it applies to municipalities on the one hand or companies on the other hand, we recognize that in mid-year one very often makes changes that were not predicted by that company at the beginning of its fiscal period, be it a municipality or be it a private money-making company.
I would that there were some way to say on a given day of the year we will all present our fiscal plans and we can therefore start ours the morning after, but the world is not ordered that way. Companies have rotating fiscal year-ends. Municipalities have one and the province has another. So it is not so simple as to say some master planner can do everything so that no one has any disruption of his plans. I have disruption of my plans; they have disruption of their plans. The fact is that we get along reasonably well in this province.
Mr. Breaugh: Mr. Speaker, the Treasurer is aware that around Ontario at this time of year there are a number of cultural events happening. In Windsor it is Carousel, in Oshawa it is Fiesta Week, in Toronto it is Caravan. I am trying to get some clear line as to who will collect and pay tax and who will not.
Will he tell us now how he justifies, in the case of large cultural organizations and celebrations like that, where it is now obvious his regulations will make some of those pavilions collect the retail sales tax and others will not? How is that fair or rational? Can he at least give us a consistent line as to whether they will be collecting his retail sales tax?
3 p.m.
Hon. F. S. Miller: Mr. Speaker, we have been dealing with that problem at length and trying to review the old regulations, which gave a $50,000 limit, and the new regulations, which give a $75,000 limit. I would be on somewhat thin ice if I said I knew whether Carousel, which I understand took place last weekend and will be on next weekend, was in a nontaxable state for both. My belief is that Carousel will be nontaxable this coming weekend. I will ask the minister for the definition.
In the case of Caravan, it is my understanding that none of the booths of Caravan will attract tax. I believe that has been cleared by the ministry at this point. The minister responsible is out of the House at present; he was here a few moments ago. He is in a better position to say whether they do or not, but it is my understanding they are clear. We have looked at the event, its purpose, the type of organization running it, the frequency with which it is run and whether it is in the commercial field. We accept the fact that the cultural activities of, say, the Caravan group are just that and should be tax-exempt. That is my understanding.
MCKELLAR GENERAL HOSPITAL
Mr. Foulds: Mr. Speaker, I would like, if I might, to return to the Minister of Health with a question about McKellar General Hospital.
Can the Minister of Health reconcile the statement he made in response to the question asked earlier by the member for Fort William (Mr. Hennessy) and the statement made so clearly and unequivocally by the Ontario Nurses' Association yesterday, that "evidence continues to mount that the nursing care in McKellar Hospital is not proper or even safe"?
After the documented reports in November 1980 about the situation in the intensive care unit, the nursing assessment committee report in May 1981, I believe it was, and the minister's own inspectors' report of December 1981, can the minister tell us why the nurses still felt that neither the ministry nor the hospital had responded specifically to the concerns they raised? Can he also tell us why he waited until today to respond in the House after they went public yesterday?
Mr. Grossman: Mr. Speaker, the honourable member will have to ask the nurses that question. He is asking me to explain why the nurses are still saying these kinds of things and how I reconcile the difference in views. The fact is that the nurses are taking one position. The president of the Thunder Bay medical society appears to give a vote of confidence to the hospital. The people who are responsible for the hospital are satisfied with the state of the hospital. And the ministry, through its area team, is relatively satisfied with the status of the hospital at present.
Some specific steps, which I have indicated, have been taken by the hospital since the initial report, which the member has indicated came to the attention of the public. Therefore, there have been a variety of responses in the Thunder Bay area now. Nothing I can do will ensure that the nurses, any more than the doctors in other situations, will find themselves in agreement with that situation.
If we had to line up the people involved, the member would have to note that the president of the medical society, the administration of the hospital, the board of the hospital and the ministry, all those groups as opposed to the nurses, seem to be satisfied that the hospital is in pretty good shape. We will continue to monitor that and make sure the concerns of the nurses are reviewed by us. We looked at the steps that have been taken and are reasonably satisfied at present.
Mr. Foulds: Can the minister tell us what he means by certain bodies being satisfied that the hospital is relatively safe? Why, in his letter of April 8, 1982, did he make no specific mention of the things he is now mentioning, and why did he say he declined their request for a meeting? In their letter, they outlined quite specifically what their concerns were, and the minister failed to respond to those in any detail in his letter.
What is it that makes a professional group that has an enormous sense of responsibility and an enormous commitment to that hospital but that has had a burnout rate in the past year of one third of their staff, go public and say, "We are not getting an adequate response from either the minister or the hospital"? In fact, there is a bureaucratic shuffle and a pointing of the finger of responsibility between the board of governors and the Ministry of Health.
Hon. Mr. Grossman: First, if the Minister of Health were to meet with all the professional health groups that have some disagreement from time to time with regard to what is happening in various units in the 230 hospitals in Ontario, then quite literally the Minister of Health would have absolutely no time to do any other part of his job.
Obviously it requires a difficult judgement call on behalf of the minister and the ministry to decide which groups should see the minister because the status of their complaints and the status of the local problems appear to be such that they are irreconcilable outside of the minister's office.
It was our judgement in this case, having consulted with all the people whom we contact in the area, that it had not reached that stage. While we were at a point at which the hospital and Ontario Nurses' Association were having a disagreement or a difference of opinion, none the less there were certain steps taken, and they are fairly important steps, which left us satisfied the situation was not one that warranted ministerial intervention at that time.
There are 230 hospitals throughout this province that would like to see the percentage increase in nursing staff that McKellar has seen over the past year. Those are fairly substantial figures; I am sure the member acknowledges that those are fairly substantial figures. A lot of my colleagues and the member's colleagues have been in to see me asking for increases in ministry budgets to allow that sort of increase in staffing complement and they have not succeeded; McKellar has.
Taking that kind of scenario together, I think our decision was right that at that particular time the situation remained one for the hospital to manage and that it was handling it relatively well. If that situation should deteriorate, or because of new facts we become convinced that ministerial intervention is warranted, we will consider it at that time.
Mr. Foulds: Is the minister aware of the verdict of a coroner's jury into the death of Miles Sanders, which occurred at McKellar General Hospital on March 15, 1981? The jury's report, which was published in May 1982, reiterated as its recommendations a number of the recommendations that had been made both by the ministry's inspector and by the nursing assistant committee. May I read the following recommendations to the minister and ask him why the jury felt in May 1982 that it could still make these recommendations, which presumably had not yet been implemented?
"1. Make it standard procedure to have two registered nurses on duty whenever there are infants in intensive care unit.
"2. Proper training program be established for all nurses, registered nursing assistants and doctors who use the overhead warmer in the use of and dangers involved with this unit; testing to be followed up.
"3. Limit use to one baby in the unit at one time."
In other words, a lot of the very important new technical equipment that is available in the various wards, including the intensive care unit, cannot be properly used simply because the nurses, who are registered nurses and competent, have not yet been trained in the specific use of that specialized equipment. If they had been, perhaps the death of Miles Sanders could have been avoided.
Hon. Mr. Grossman: One of the important functions of coroners' inquests is to arm the administration of hospitals, boards of hospitals and professional staff of the hospitals with the kind of advice the member is reading into the record today. I do not think the member would anticipate that the Ministry of Health should be the ones going in and trying to run 230 hospitals, including ones in Thunder Bay, from the Hepburn Block or Overlea Boulevard here in Toronto.
In point of fact, those recommendations are in the hands of the administration, the board and the staff of the hospital. We look to those people to meet their responsibilities under the Public Hospitals Act to run their hospitals.
3:10 p.m.
If the member is perhaps expressing a vote of no confidence in the board of governors of the hospital or its administration, then he ought to make that quite clear. At present, my area team reports that it is satisfied, as is the chief of the medical association in the area, that the McKellar General Hospital remains a good and safe operation. However, in the light of the questions my colleague the member for Fort William (Mr. Hennessy) and the member opposite have raised, we will certainly have a further look at the situation.
Mr. Speaker: The time for oral questions has expired.
Mr. Wrye: I rise on a point of privilege, Mr. Speaker: Before the Treasurer escapes again, I want to seek some clarification to an answer he gave in question period, because it is very important to the people of Carousel --
Mr. Speaker: Order. I suggest that the honourable member speak to the Treasurer privately or wait until the next question period.
Ms. Copps: Mr. Speaker, earlier in this question period the Treasurer made some reference to the fact that I was perhaps a liability in the riding of Hamilton West. I wonder whether the Treasurer is aware of the fact that his candidate has said the Treasurer's budget is one of the biggest liabilities --
Mr. Speaker: Order. That is neither a point of order nor a point of privilege.
PETITIONS
TAX ON CLOTHING REPAIRS
Mr. McClellan: Mr. Speaker, I am pleased to submit the following petition signed by 252 citizens:
"We, the undersigned customers, support the protest of the June 14 expansion of the Ontario provincial sales tax that imposes this tax on charges for repairs and alterations to clothing by dry cleaners and launderers. We urge the Honourable Frank S. Miller, Treasurer of Ontario, to withdraw this application of his May 13, 1982, budget since it is unfair, inequitable, inflationary and an added hardship, especially on the elderly, the unemployed and the working poor."
TAX ON MEALS
Mr. Elston: Mr. Speaker, I have a petition addressed to His Honour the Lieutenant Governor in the Legislative Assembly and signed by 73 residents of Ontario. It reads:
"May 27, 1982, Port Elgin, Ontario.
"We, the undersigned, strongly protest against the clause in the new Ontario budget pertaining to the charging of seven per cent provincial tax on baking and meals provided by churches, and the United Church Women of the Port Elgin charge in particular.
"We feel that the raising of funds by means of baking and meals to help support this church, its work in the community, in Canada and overseas falls into the category of charitable donations and should continue to be so designated.
"We respectfully request that you reconsider your decision in this matter."
UNIVERSAL MEDICAL CARE
Ms. Copps: Mr. Speaker, I have a petition from the people of the riding of Simcoe, the people of Orillia, containing 1,100 names, addressed to the Minister of Health (Mr. Grossman). Unfortunately, the petition is addressed to Allan Grossman, but I trust that was simply a slip. I will read it into the record:
"In support of the principle of universal medical care, we wish to submit to you a petition signed by 1,100 residents of Orillia and district.
"Circulation of the petition was prompted by the fact that during recent fee negotiations between the government of Ontario and the Ontario Medical Association, a group of 16 Orillia doctors announced publicly that they were withdrawing from the Ontario health insurance plan.
"This brings to 35 the number of Orillia physicians who have opted out of OHIP. There remain only about six opted-in doctors in this small city. As a result" -- and this is something that the Minister of Health has requested in the past" -- universal medical care regardless of income is no longer a reality for most Orillia residents."
Hon. Miss Stephenson: That's not true.
Ms. Copps: How would the minister know? She is not opted in.
Mr. Speaker: Order.
Hon. Miss Stephenson: How would the member know? She has never practised medicine or anything else --
Mr. Speaker: Order, please.
Ms. Copps: To continue: "We consider this to be a shocking and disgraceful state of affairs and would request that you and your government act soon before Orillia's predicament becomes the norm across the province. We look forward to your reply."
That is signed by 1,100 residents of a city that is represented by the Solicitor General (Mr. G. W. Taylor). I will pass this over to the Minister of Health.
Hon. Miss Stephenson: The Solicitor General does not represent Orillia.
Hon. Mr. Grossman: Mr. Speaker, on a point of privilege: We should draw to the attention of the House that this petition or a similar one was presented to me earlier this week by the excellent member for Simcoe East (Mr. McLean), who has drawn that situation to my attention. He delivered the same signatures, the same letter, to me several days ago.
Mr. Nixon: He didn't want anybody to know.
Mr. Speaker: Order.
Mr. Martel: Mr. Speaker, on a point of order: When are you going to call them to order? The minister had no point of order. That was a petition that was presented. He did not have the right to get up and make a statement. What are you doing with the rules? What is he getting up on? If he wants to answer, he has two weeks. You asked for a petition in the appropriate manner --
Mr. Speaker: Order.
Mr. Martel: If he wants to make a ministerial statement, he can do so.
Mr. Speaker: Order. I draw to all honourable members' attention that I seem to be criticized for not hearing points of privilege or points of order.
Mr. Martel: He didn't have a point of privilege.
Mr. Speaker: I cannot determine that until I have heard it. I suggest, with all respect --
Ms. Copps: I will correct the record --
Mr. Speaker: Order. I suggest that indeed the member for Sudbury East himself was out of order.
Mr. Martel: No. Mr. Speaker, on a point of order --
Mr. Speaker: Order. I am not going to debate it and neither are you.
Ms. Copps: To correct the record, Mr. Speaker: I extend my sincere apologies to George Taylor. The member for Simcoe East is Allan McLean.
Mr. Speaker: Once again, I draw to all honourable members' attention that it is out of order for them to refer to any other honourable member by name.
INTRODUCTION OF BILLS
BRANTFORD-BRANT ANNEXATION AMENDMENT ACT
Hon. Mr. Bennett moved, seconded by Hon. Mr. Gregory, first reading of Bill 145,
An Act to amend the Brantford-Brant Annexation Act.
Motion agreed to.
CITY OF THUNDER BAY AMENDMENT ACT
Hon. Mr. Bennett moved, seconded by Hon. Mr. Gregory, first reading of Bill 146,
An Act to amend the City of Thunder Bay Act.
Motion agreed to.
3:20 p.m.
AGE OF RETIREMENT ACT
Mr. Kolyn moved, seconded by Mr. MacQuarrie, first reading of Bill 147,
An Act respecting the Age of Mandatory Retirement.
Motion agreed to.
Mr. Kolyn: Mr. Speaker, the bill raises the age of mandatory retirement to 70 years but provides that an employee who is not able to perform his duties adequately may be required to retire after attaining the age of 65.
Mr. Martel: Oh, Nick Leluk the Second. Do you think that's going to get to cabinet?
Mr. Laughren: Are you flogging that?
Mr. Martel: Nick used that to get to cabinet. Maybe you'll vote against old age pensions as the Tories did originally.
Mr. Speaker: Is the member for Sudbury East quite through?
Mr. Di Santo: May I speak on the bill, Mr. Speaker?
Mr. Speaker: No.
INSURED HEALTH SERVICES ACT
Mr. Philip moved, seconded by Mr. McClellan, first reading of Bill 148,
An Act respecting Insured Services under the Ontario Health Insurance Plan.
Motion agreed to.
Mr. Philip: Mr. Speaker, I am pleased to see that, unlike the last time I introduced this bill, the government has not voted against it on first reading.
This bill provides that prostheses may be prescribed as insured services.
ANSWERS TO QUESTIONS ON NOTICE PAPER AND RESPONSE TO PETITION
Hon. Mr. Gregory: Mr. Speaker, before the orders of the day, I wish to table the answers to questions 147, 186, 187, 193, 196, 197, 199, 201, 202 and 210, and the interim answers to questions 183, 192 and 198 standing on the Notice Paper, and a response to the petition presented to the House as sessional paper 122 [see Hansard for Friday, June 18].
MOTION TO SET ASIDE ORDINARY BUSINESS
Mr. Laughren moved, seconded by Mr. Martel, pursuant to standing order 34(a), that the ordinary business of the House be set aside to discuss a matter of urgent public importance, namely, the massive unemployment that will be created by the corporate irresponsibility of Inco and Falconbridge in the Sudbury area which not only will have a devastating effect on Sudbury families and local businesses but also will have a devastating impact on the economy of the entire province.
Mr. Speaker: I would like to advise all honourable members that the motion was received in time. I will be pleased to listen for up to five minutes as to why the honourable member thinks the business of the House should be set aside.
Mr. Laughren: Mr. Speaker, this debate is necessary. It is an emergency because of the devastating effects of the actions of both Falconbridge and Inco in the Sudbury area. Falconbridge has announced a major layoff of 25 per cent of its work force; that means about 1,000 jobs. Inco had already announced and implemented a job reduction of 850. That represents a total of 1,850 job losses in the Sudbury community in just one year. The spinoffs of that reduction will be serious.
I am pleased the Minister of Industry and Trade (Mr. Walker) is here today, because last Friday, June 11, when that minister was announcing a new Sanyo Machine Works plant in Elmira, he indicated, "My ministry estimates that each job in a new plant subcontracting in this manner supports 15 other people in the community." I question the minister's ratio of 15 to one. Nevertheless, those are his figures and his government must live with them.
The job loss in Sudbury represented by the Inco and Falconbridge job reduction of 1,850, even if we use a more traditional ratio of two to one, indicates a job loss of 5,500. That is very serious. If we were to use the minister's 15-to-one ratio, it would be a job loss of 29,600, which is a staggering number. I hasten to add that I do not subscribe to those numbers, but they are the ones the minister used.
As a province, we must begin to cope with the economic problems we are facing. It is not good enough to blame the federal government, which in turn blames the United States. We need to debate in this chamber how we should deal with the problems of layoffs, unemployment, shutdowns, one-industry towns and indeed the whole nonrenewable mineral resource sector. This situation is an emergency, and this government cannot continue to ad hoc its way from one emergency to another.
We have some specific suggestions to make if this debate continues this afternoon. We believe the nickel industry should be put under public trusteeship while we sort out the problems of collective bargaining and while we do an independent geological assessment to see what nickel resources we have in Sudbury and elsewhere in the province. The long-run goal is to bring that industry into the public sector.
We believe a committee of the Legislature should be established to look at a proper diversification of the Sudbury community and to establish a mechanism so that, if the layoffs are necessary, the workers are properly relocated.
I stress that this is simply the tip of the iceberg. The long-range plans of the mining companies in Sudbury are to reduce the work force to about half the present level. Both Inco and Falconbridge have been extremely well served by the community and the province, and we think their actions should be debated.
I remind the members that Inco has responded to all the largess we have given it by investing its profits elsewhere with a magnificent and ostentatious incompetence. The first four letters of incompetence spell Inco, and Inco spells bad medicine for the future of the Sudbury community. It is time the community debated that matter.
Falconbridge is no better. Despite the concessions it has been given on refining and pollution abatement, it has announced a major layoff in the middle of collective bargaining with its own workers. Given those facts, I hope the members will agree that this is an appropriate debate that should take place this afternoon.
Mr. Sweeney: Mr. Speaker, I want to go on record as saying that our party supports the need to debate this afternoon the issue that has been raised by the member for Nickel Belt. I am sure the honourable member would not be surprised if I were to point out that we do not necessarily agree with all his party's solutions to this problem. However, there is no doubt whatsoever in the minds of the members of this party that we have a serious human and economic situation in the Sudbury basin.
I have had an opportunity to be in Sudbury on two occasions in the past couple of weeks and will be there again this weekend. I have talked to people who are unemployed, to business people and to many of the social agencies in the Sudbury basin area about the impact of unemployment there. Compared to many other parts of the province, it is in most serious difficulty.
One of the reasons my party and I stand in support of this is that we participated a few years ago in an all-party committee of this Legislature looking into the Inco layoffs at that time. There are a number of members in this House who participated in those investigations.
At that time we drew to the attention of this government, and of the Sudbury community and of the companies of both Inco and Falconbridge, that some fundamental changes had to be made. Here we are, several years later, facing almost the same problem.
3:30 p.m.
I hope to have the opportunity to refer back to some of the recommendations that were made a few years ago by that subcommittee, to show that the same situation still exists and that the government has not taken the kinds of action we believe it should take. The impact of unemployment on any community in this province is serious. The impact of unemployment in Sudbury is doubly serious because, as has been pointed out by so many members of this House, under other circumstances and other issues, it can be called in many ways a one-industry town.
In my last few visits to Sudbury, I was very delighted to notice there is an attempt in that community to begin its diversification program, but that is not going to happen quickly enough to offset the very negative impact of the layoffs of Inco and Falconbridge. Therefore, we, as members of this Legislature, responsible not just to the constituents in our own ridings but to constituents and Ontarians all across this province, have to be concerned about those kinds of impacts. For these reasons, we support the need to debate this measure this afternoon and we will most certainly participate in that debate.
Hon. Mr. Gregory: Mr. Speaker, I have discussed this motion with the Minister of Labour (Mr. Ramsay) and it is his opinion and, of course, mine that the lives of the citizens of Sudbury cannot be ignored in this emergency. While we do not necessarily agree with the wording or the substance of the motion, we are in agreement with the intent. If, Mr. Speaker, in your wisdom, you decide that the matter warrants an emergency debate, we will certainly abide by your ruling.
I have already discussed this with the two House leaders, and I would ask that consideration be given to the arrangements for the Lieutenant Governor to be here for royal assent in this chamber. He has flown in from some distance away to be here. So I would ask the House if we can have unanimous agreement to deal with the third readings and the second and third readings on some private bills.
Agreed to.
ORDERS OF THE DAY
CITY OF LONDON ACT
Mr. Van Horne moved second reading of Bill Pr1,
An Act respecting the City of London.
Motion agreed to.
Third reading also agreed to on motion.
UNIVERSITY OF WESTERN ONTARIO ACT
Mr. Van Horne moved second reading of Bill Pr14,
An Act respecting the University of Western Ontario.
Motion agreed to.
Third reading also agreed to on motion.
JAPANESE CANADIAN CULTURAL CENTRE OF TORONTO ACT
Mr. Runciman, on behalf of Mr. Cousens, moved second reading of Bill Pr 18,
An Act respecting the Japanese Canadian Cultural Centre of Toronto.
Motion agreed to.
Third reading also agreed to on motion.
CITY OF HAMILTON ACT
Mr. R. F. Johnston, on behalf of Mr. Charlton, moved second reading of Bill Pr22,
An Act respecting the City of Hamilton.
Motion agreed to.
Third reading also agreed to on motion.
CITY OF OTTAWA ACT
Mr. Roy moved second reading of Bill Pr24,
An Act respecting the City of Ottawa.
Motion agreed to.
Third reading also agreed to on motion.
TOWNSHIP OF MOONBEAM ACT
Mr. Piché moved second reading of Bill Pr32,
An Act to continue the Corporation of the township of Fauquier under the name of the Corporation of the township of Moonbeam.
Motion agreed to.
Third reading also agreed to on motion.
THIRD READINGS
The following bills were given third reading on motion:
Bill 1,
An Act to revise the Reciprocal Enforcement of Maintenance Orders Act;
Bill 2,
An Act to amend the Surrogate Courts Act;
Bill 3,
An Act to amend the Charities Accounting Act;
Bill 4,
An Act to repeal the Mortmain and Charitable Uses Act;
Bill 27,
An Act to amend the Motorized Snow Vehicles Act.
Hon. Mr. Gregory: Mr. Speaker, we will not be moving ahead with the sixth order at this point.
MOTION TO SUSPEND ORDINARY BUSINESS (CONTINUED)
Mr. Speaker: Pursuant to standing order 34, I have listened to the honourable members of the three parties with a great deal of interest and quite obviously the three parties are in accord that the emergency debate is in order. I find it in order, pursuant to standing order 34. I do rule in favour of the motion.
Therefore, the question before the House is: Shall the debate proceed?
Motion agreed to.
3:40 p.m.
EMPLOYMENT IN SUDBURY
Mr. Speaker: Just before the member for Nickel Belt starts, I would like to point out that he has up to 10 minutes.
Mr. Laughren: Mr. Speaker, I rise for the second time in three years to engage in an emergency debate on the problems of the Sudbury community, which should say something to the government members here.
I view the emergency debate as swirling about the problems of Sudbury as a community. That community has provided services in the form of sewer and water, health services, education services and social services, all at public expense. That has been of enormous assistance to Falconbridge Nickel Mines, in view of the fact they have been able to have a very stable work force, a work force living in a community where those amenities were available. Consequently, the community has a real stake in what is going on given the Inco and Falconbridge actions within the last couple of months.
Commitments have always been made in the Sudbury community based on the assumption that we were a community and the components in that community had common goals. Obviously, that has been a mistake because the goals of some of the leading components in the community, namely the private sector, have seldom coincided with the goals of the people in that community or the goals of the municipal leaders in the regional municipality of Sudbury.
Over the years, both Inco and Falconbridge have had profitable operations in the Sudbury community. Both Inco and Falconbridge have taken their profits elsewhere, particularly Inco, which has invested in Guatemala. They have now closed that operation completely. They are in Indonesia where they are operating at one-third capacity. They had a disastrous investment in ESB, the battery company in the United States. They are now attempting to divest themselves of that corporation.
When arguing for this debate, I said that the Inco management has been incompetent and I said that the first four letters of the word "incompetent" spell Inco. The incompetence of Inco is being paid for by the community of Sudbury. It is not the ore body in Sudbury, it is not the work force in Sudbury, it is not even the management in Sudbury that has led to the problems we are facing. It is the senior management based in Toronto, previously in New York, that has caused what have become community problems.
Falconbridge is part of a huge empire, including McIntyre Mines and Superior Oil of Houston, Texas. They have no refinery in Sudbury despite having been there for almost 50 years.
The public sector has been very good to Inco and Falconbridge. We have given them pollution abatement postponements. We have given them exemptions to the processing requirements under
section 113 of the Mining Act. We allow Falconbridge -- and Inco for that matter, but primarily Falconbridge -- to ship its ores to Norway and to write off those processing costs against the profits they would normally pay in Ontario. Tell me how that makes any sense.
The provincial government has responded to the needs to diversify the economy in the Sudbury area with its resources machinery development centre. That is going to be located in 10,000 square feet, probably in a building next to the science centre, a tourist attraction. It is not going to be what we had dreamed it would be, namely a major centre for the production and distribution of mining machinery, not just for northern Ontario but for Canada, and for export markets as well.
The public sector is moving, as is the private sector, in very faltering steps to diversify the Sudbury community. It is time that we put an end to that. We, in Sudbury, are not doormats for the private sector. The workers are no longer pack-sack miners, as the former member for Sudbury, Mr. Germa, said in the debate three or four years ago. The community leaders are simply not pawns to provide services for the work force and for Inco and Falconbridge. We are an important community in this province. We work hard. We pay plenty of taxes. Quite frankly, we deserve much better than we have been getting from the private sector and from this government.
The problem has never ever been in Sudbury. The profit figures of Inco's earnings over the last 10 years were: $112 million in 1972; $225 million in 1973; $296,700,000 in 1974; $179 million in 1975; $178 million in 1976; $87 million in 1977; $61 million in 1978; $135 million in 1979; $249 million in 1980; and $20 million in 1981. That is profit on their operations, not on their sale of assets or the writing down of assets which were bad investments.
Whenever the companies get into trouble they want us to look at their problem in a time frame of one year. I look at that 10-year period and I see $1,547,900,000 in net earnings by Inco alone. Now they tell us they have financial problems this year and have to take these drastic actions. We are saying to members of the government, that is not good enough; that is not the way one builds a community and makes it a decent place in which to live.
The last time we had these debates was in a select committee which made recommendations to the government. I think the government ignored every one of those recommendations. My colleague the member for Sudbury East (Mr. Martel) will have more to say about that later.
We are not dealing with a community that is way up in the Arctic Circle. We are dealing with what is truly the resource capital of Ontario, if not Canada. It is known around the world for its riches. Yet, here we are going on this resource development roller-coaster ride once again.
The ramifications of what is going on will be felt elsewhere in Ontario as well. This Legislature can do a number of things. It can establish a legislative committee. The committee could put the nickel industry under what I would call provincial trusteeship while it looks after the problems of the bargaining and makes a geological assessment of the minerals in the Sudbury area.
Our view, of course, has always been that the nonrenewable resources belong to the public sector. For the $650 million that the government spent on Suncor and for which it got no control, we could buy Inco. As a matter of fact, majority control of Inco would cost $470 million.
I suggest that a legislative committee could do those things. It could look into the diversification problem, speed up the diversification process and look into the whole impact on the community of these announced layoffs; and if nothing can be done about the layoffs, then at least it could arrange that aid be given to the municipality and to the workers in this transition period of reduced work force.
It is the consensus around Sudbury, and as a matter of fact, a federal regional economist said it recently, that the work force in Sudbury is going to be down to around 7,000 before the end of the decade. When I moved to Sudbury in 1969, the work force in the mining industry was pushing 25,000. That is a massive reduction which has been brought about by technological changes. Workers have been pushed aside while machines, purchased elsewhere, do the work of the miners.
If those machines were produced here we could applaud the reduction in the work force, because producing the machinery to do the work they used to do would probably be a better kind of work for the workers. But that is not what has happened.
We know that the nickel market is depressed. We know that at least 90 per cent of the nickel is exported and we know the importance of the auto sector to nickel sales. We also know that not all the economic problems of Canada are the fault of this government or of Inco and Falconbridge, but we do know there are things that can be done by this government.
We believe the first step is to establish a committee of this Legislature to look into those problems and take some action before the impact of those layoffs is felt in the Sudbury community.
Mr. Sweeney: Mr. Speaker, I recall a comment made by a member of the New Democratic Party when we were debating this subject in 1978. If I remember correctly, it had to do with the sense of déjà vu. I cannot remember who said it, but it was one of the Sudbury members. Now, here we are again four years later.
I believe it was January 1978 when we formed an all-party committee of this Legislature and held hearings in this building and in Sudbury.
3:50 p.m.
I can remember the Sudbury hearings vividly because one of the worst snowstorms Ontario had had in a number of years occurred during that time. I remember that after spending about three days there we finally had to get some trucks from Ontario Hydro to get us out of our motel and down to the railway station where we picked up the transcontinental. That experience remains firm in my mind.
I suspect many of the things we are going to discuss this afternoon will be repeats of what we did four years ago. That is the part which makes it so sad in one sense and so frustrating in another. I agree with the member for Nickel Belt that this Legislature simply has to do something for the nickel industry in the Sudbury basin in particular. However, I must admit I am less enthusiastic than he, and perhaps some of his colleagues, to constitute another select committee or whatever kind of committee of this Legislature he would recommend, in the hope that three or four years down the road we would not be in the same boat. I do not have much confidence it would make much difference.
Let me refer to a point in that select committee report. It indicated a report that was filed with the cabinet of this province from the mineral research branch of the Ontario Ministry of Natural Resources in February 1977. That report was filed with cabinet about one year prior to the setting up of the all-party committee. I want to read one little section. The title of the report was The Ontario Metal Mining Industry, Present and Future.
It says: "The Ontario nickel industry is the world's largest nickel production complex and Ontario's largest mineral producer. It is suffering from a massive accumulation of inventory of finished metal as a result of the recent recession and of lower than anticipated rates of growth and consumption in major markets." This is the key sentence, "Unless the markets improve rapidly in the near future, it is difficult to see how cuts in Sudbury mine output can be avoided."
Those last three or four words were italicized in this report. The document was released to the public by the Ontario cabinet but apparently little or no weight was attached to this forecast by anyone. That was February 1977.
In February 1978, only a year later, we were holding hearings in this Legislature and in Sudbury. We came up with a series of recommendations and I will touch on some of them briefly in a few minutes.
Quite frankly, nothing really has changed all that much. We were told clearly during that period of time that Inco, for example, had invested something like $1 billion in the Sudbury basin during the 1960s and 1970s and that was a clear indication it intended to stay there, mine the ore there, smelt the ore there and keep on generating jobs. I have no doubt that was its intent.
There are other figures for Falconbridge. We were told, for example, Falconbridge had spent $62 million upgrading the Lockerby mine. We were told Falconbridge had spent something like $85 million cleaning up its smelter environmental problems. Once again, the Falconbridge officials indicated to us this was clear evidence they intended to stay, that this was the centre of their operations and that we should have nothing to worry about.
Here we are, four years later in 1982, once again seeing rather massive layoffs of people in the Sudbury basin. I mentioned earlier that in the last couple of weeks I had been to Sudbury on two occasions to speak to people who were unemployed in that community and to talk to them about the devastation taking place because of that unemployment. Primarily, our task force was concerned with young people who were unemployed, young people between the ages of 16 and 24 who have not even been able to get a start in their economic lives and on being able to stand on their own two feet.
It became quickly apparent the unemployment problem had spread to all age groups in the Sudbury area and it was not just those who work for Falconbridge, or who work directly for Inco. It was throughout the entire community; all the small machine shops, some of the smaller retail outlets in that area and all the various service industries that depend so much on Inco and Falconbridge.
It was clearly pointed out to us, and it is something we have to recognize, that the people and community of Sudbury have begun to make a valiant effort to diversify. The federal government, for example, has set up a rather impressive tax office there, which I understand is going to employ somewhere between 1,000 and 3,000 people. Sure, that is going to help and other industries like that are going to help, but we have to keep in mind that the major employers in that area today are Inco and Falconbridge and the various related industries, and they will continue to be so for quite a number of years.
When we talked about this issue four years ago, we made the observation at that time, just as the 1977 report had made, that the governments of Ontario and Canada were going to have to move into that community and begin to set up different kinds of training programs for the people who were then laid off and who were not likely to be going back into those industries. It was clear at that time that the dominance in the world markets of the nickel producers in the Sudbury basin was no longer there.
If I remember correctly the figures quoted to us, Inco alone had had control of something like 60 or 70 per cent of the entire world market for nickel, but at that time that was down to about 30 or 35 per cent. We were told of the operations all over the world in Australia, Indonesia, Guatemala and South Africa, some operated by Inco and Falconbridge and some operated by those countries themselves. In other words, we have a much more competitive world with respect to the production and marketing of nickel.
Therefore, we made it clear that Sudbury could not continue over the long haul to depend for its employment, both direct and indirect, on those two companies, and some changes had to be made, there had to be some input by both the federal and provincial governments into retraining. That is one of the points we clearly made. To the best of my knowledge, little has been done with that.
The second point we clearly made was that the two levels of government were going to have to assist in the marketing of nickel throughout the world, that we were going to have to sit down with these companies and look at the Japanese market, for example, because a contract had been lost in that area back in the 1977-78 era. We had to look at what could be done in those areas. We had to look at how we were going to compete with South Africa and Australia. All those things had to be taken into consideration. Once again, to the best of my understanding, none of those things has been seriously looked at.
We were also asked at that time to re-examine the relationship of Falconbridge to its operation in Norway. We had some experts come before us. It was drawn to our attention -- I think pretty clearly -- that there was no good reason why there could not be some sort of co-operative effort arranged between Falconbridge and Inco for Falconbridge to transport its hot matte over to Inco and have it processed there.
When it first came to our attention, one of the things said was: "Oh well, they have different processes. They use different temperatures." But the experts who came before us made it clear that with some minor changes that could be done and we would not have to continue to send that hot matte over to Norway. To the best of my knowledge, nothing has been done in the investigation of that matter either.
Whether it would have been feasible, I honestly do not know. I do not pretend to be an expert in this technological area. But we did have experts come before us to show that something could be done, and that those two companies would have to sit down and in some cases co-ordinate their efforts. This was one case that seemed to me to make a lot of sense.
All I am trying to suggest is there were a number of recommendations that made a lot of sense. They have not been acted on and we are right back to square one.
Hon. Mr. Ramsay: Mr. Speaker, I want to say as clearly as possible at the outset that I regard the existing and anticipated unemployment in the Sudbury area as a matter of grave concern. I welcome this debate today as a most worthwhile exercise.
The Sudbury basin is world renowned for its rich natural and human resources. It has in a real sense been the focus of economic activity of northern Ontario over the years.
4 p.m.
There is no doubt that current prospects for the nickel market and, indeed, for copper and precious metals produced in the Sudbury basin are grim. I had the opportunity last Friday to be present during a three-hour information exchange involving senior officials of Inco and the United Steelworkers in relation to the current contract dispute at Sudbury and Port Colborne. During that session the company placed before the meeting facts that I think had a sobering effect on everyone present.
I will not repeat the details other than to say that we are clearly talking about a worldwide phenomenon reflecting a recession of major proportions in the western world. Various figures were reviewed for the period 1979 through the first quarter of 1982. On the basis of all of the usual economic indicators -- prices, deliveries, costs, expenses, demand and capacity utilization -- the outlook is bleak.
Comparisons were made with other jurisdictions and, so far as I can determine, the situation in northern Ontario is no different in any material aspect from that in other ore-producing and refining jurisdictions. I saw no indication that these difficulties were self-induced by the enterprise affected. It was conceded by all around the table that the ore bodies in the Sudbury basin are of a high quality. It was also conceded that there is a work force second to none in skill and ability.
These positive facts make the current situation even more regrettable. We have the ore, we have the human resources, we have the technical knowhow, we have the managerial skills, we have the capacity for redevelopment and improvement; and yet, to put it bluntly, the market is in a tailspin.
These companies, Inco and Falconbridge, have been around for a long time. They have a proven capacity to make their way in the world markets; they have, to my knowledge, no suicidal instincts. Yet they and their employees are the victims of economic forces beyond their control.
Therefore, I want everyone in this House to know that I am as worried and anxious about the prospects of our northern mining communities as anyone in this House. I happen to represent a riding that is in close physical proximity to Sudbury and has many of the same characteristics with regard to its dependence on a major industry.
Mr. Laughren: That's no excuse.
Hon. Mr. Ramsay: I know the devastating effect that unemployment can have, and within my powers I intend to continue to do everything possible to minimize its effect.
Mr. Laughren: It's all the more shameful, as a matter of fact.
Hon. Mr. Ramsay: However, I think no one should be --
Mr. Laughren: Boy! Crocodile tears.
Hon. Mr. Ramsay: Mr. Speaker, I sat quietly, and I always sit quietly when the member opposite is speaking.
Mr. Laughren: Well, they are. You never do anything about it. You stand up, you say you are concerned and you do nothing.
The Deputy Speaker: Order. The minister has the floor.
Mr. Laughren: They are crocodile tears.
The Deputy Speaker: Let him continue.
Mr. Laughren: I am sure the Speaker would agree with me in a different setting.
Hon. Mr. Ramsay: We are going through difficult times, and it would be overly optimistic, on the basis of any material I have seen or conversations I have had, to say that there is light at the end of the tunnel in the short or medium term.
With regard to price alone, the nickel selling price for the first quarter of this year was lower than at any time since the beginning of 1980. Early indications are that the second quarter will be even worse, and some analysts are saying the copper price may be the lowest in many years. I am told copper is being sold at a price below production cost.
The member for Nickel Belt (Mr. Laughren) -- and I want to say that he made an excellent presentation earlier today, and I listened with interest and respect -- refers to corporate irresponsibility; and I heard him in the House the other day when he suggested that this corporate irresponsibility, in his view, is manifested when collective agreements come up for negotiation. He argues, or at least implies, that there is more than coincidence in the fact that these companies are faced with maximum economic pressure in the year their collective agreements expire.
The member is a product of the Sudbury basin and he knows the mining industry much better than I do. I ask him in all fairness whether he is in possession of facts that support the assertion that the pressures now facing these industries are artificial or artificially induced. Although I am sure he has seen it, I am quite prepared to share with him the recent analysis of Walwyn Stodgell Cochrane Murray, which shows that the plight of the industry is indeed genuine.
Let me deal with the Inco situation. I am naturally depressed when I see masses of employees out of work as a result of a labour dispute at a time when so many workers across the province are involuntarily out of work as a result of the reduction in business activity brought about by recession. That is why I have become personally involved in an effort to see what can be done to bring about an end to this labour dispute.
I do not wish to prejudice any efforts now under way or contemplated by talking about the particular matters in dispute, however, I think it is germane to this debate to say I honestly believe that, against a dismal economic background, honest efforts are being made to resolve the dispute; I personally have seen no sign of corporate irresponsibility.
That is not to say we are on the brink of a breakthrough, far from it, but I do not think it assists the delicate process of mediation to accuse either side of irresponsibility unless there is very clear and unequivocal evidence to support that charge. I ask my friend, if he has such evidence, to bring it forward. He should not inflame an already difficult situation by making unsubstantiated, generalized accusations. It makes my task and that of my officials all the more difficult.
If he honestly believes there has been a failure to bargain in good faith on the part of either company, he knows as well as I do there is a very adequate procedure in this province for having that matter adjudicated. The Ontario Labour Relations Board has been alert, as I think he will agree, to identify bad-faith bargaining situations and to provide effective remedies for these situations.
Before I leave the Inco situation, I will simply refer briefly to the way in which that company handled the layoff situation earlier this year. My friend is aware of that program, and I do not think it would be fair to characterize it as the program of an employer who is insensitive to his employees or otherwise irresponsible. Without going into all the details, the fact of the matter is that by virtue of an attractive early retirement offer, the offering of transfer rights and the implementation of special employment programs, financed in part by funds under
section 38 of the Employment Insurance Act and funds authorized by the Board of Industrial Leadership and Development committee of cabinet, an anticipated layoff of 850 was reduced to under 200. I have the latest figure here. Of the original 850 Inco workers to be laid off, as of May 11, the number is now 156.
Mr. Laughren: It is still a loss of jobs.
Hon. Mr. Ramsay: I agree.
As I said the other day in the Legislature, I share the distress of all members about the Falconbridge announcement. The extension of the period of layoff to 13 weeks will mean all employees of the company will be without jobs this summer, although some will qualify for their vacation pay. I very much hope the notice of indefinite layoff to be given to 1,000 Falconbridge employees in September turns out to be overly pessimistic and that at least some of these employees will be recalled as market conditions improve. We must, however, make our plans in accordance with the company's projections.
I have already had discussions with my officials, including Bob Joyce, my special adviser in matters of this sort, and will be making every effort to offer, in collaboration with the federal government, whatever employee adjustment programs can be made available. The Inco experience shows that by collaborative endeavours one can cushion the impact of large layoffs. As I have said, my officials and I intend to extend every effort to minimize the effect of the Falconbridge layoff; which in size, incidentally, is roughly equivalent to the numbers contained in the Inco layoff announcement last winter.
As members know, Falconbridge, like Inco, has an early retirement plan and it is hoped that a substantial number of employees will take advantage of this opportunity.
In difficult times such as these, we can expend our efforts more productively by collaboration -- labour and management, federal, provincial and municipal governments, members of this Legislature and all interested citizens -- in devising practical solutions to carry us over these difficult times. I do not wish to use this occasion to engage in fed-bashing or to argue, as one is tempted to do, that with more enlightened economic policies from Ottawa we might have avoided some of these difficult problems. I happen to believe that to be true, but I do not engage in this debate in that spirit.
The theme with which I would like to close is simply this: in the months ahead we must do everything within our power to assist the casualties of this regrettable downturn in our economic fortunes and to advance programs and policies that will assist our mining industry to become, once again, the envy of the free world. I believe we have that capability and the future will again belong to the Sudbury basin. However, it will take patience and fortitude and a co-operative spirit to reach that goal.
4:10 p.m.
Mr. R. F. Johnston: Mr. Speaker, after the last speech, I seem to have lost track of just what this motion is. I thought I would read it, if I might. It was moved by the member for Nickel Belt and seconded by the member for Sudbury East (Mr. Martel) that our ordinary business be set aside because of the urgent need to discuss the massive unemployment which will be created by the corporate irresponsibility of Inco and Falconbridge in the Sudbury area which will have a devastating effect not only on Sudbury families and local businesses but on the economy of the entire province.
That is what we are debating and there was general accord from the three parties that it is worthy of debate. The corporate irresponsibility of Inco and Falconbridge has brought about this calamitous situation in Sudbury. There seemed to be tacit agreement about that in the House, but then all of a sudden we get the Minister of Labour (Mr. Ramsay) jumping up and becoming the corporate apologist again, saying there is no bargaining in bad faith going on at the moment, and that section, which is the key
section of this resolution, is not applicable and these are good corporate citizens who have been corporately responsible over the last 10 years.
What the minister did not address was that if these are corporately responsible citizens of Sudbury and Canada, how is it after they made $1.5 billion in profits, as the member for Nickel Belt showed, when times get tough in one year they take it out on the workers and on the community? As the member said, this is not the first time this has occurred. He has been up in the House before during an emergency debate talking about the situation in the Sudbury basin.
We talked earlier about the early retirement plans that were brought in when Inco had the initial layoffs. I would remind members of the incredible public pressure put on Inco to respond in a generous fashion. I would also note that in his speech he showed that the major costs for picking that up are not coming out of Inco's coffers at all, they are out of public coffers. He listed the areas where the expense is being picked up and it is primarily the public purse that is paying for that. It is not the great corporate citizen of Inco that is doing it.
I would just juxtapose the early retirement solution for the Falconbridge workers with the bill the member for Lakeshore (Mr. Kolyn) introduced today, which suggested we should arbitrarily raise the retirement age to 70. These two things do not seem to fit very closely together. On the one hand, we are looking for early retirement solutions to assist the unemployment difficulties that a place like Sudbury is going to face and on the other hand we have the member for Lakeshore suggesting we should raise the retirement age to 70. That is a wonderful juxtaposition.
Mr. Kolyn: We are all getting older, Richard.
Mr. R. F. Johnston: If the member wants to argue on a logical basis for getting rid of the retirement age, that is one thing, but changing it to 70 is a totally arbitrary and stupid thing to suggest to this House.
The situation I want to discuss is what specified in the motion you have just raised in your hand, Mr. Speaker, the matter of the layoffs and the impact of them on this community of Sudbury. If we take the two-to-one ratio for the impact of layoffs, as the member for Nickel Belt has said, that is 5,500 workers and their families who are affected. The Minister of Industry and Trade (Mr. Walker) comes up with the most phenomenal statistics from time to time. An expansion of nine --
Mr. Mackenzie: To support his position.
Mr. R. F. Johnston: His statistics say a major expansion of nine employees in Elmira will create 15 extra jobs each. If one took that and extrapolated it, that would mean 29,000 families in Sudbury are going to be affected by the layoffs.
I want to speak to the effect of layoffs on families in the Sudbury basin and why it is crucial that we do not just debate this in the House today, because this kind of problem is going to reoccur, but that we do strike a select committee again and look towards a diversification of the economy of the Sudbury basin. If we do not, this is going to be a continuing drama that occurs here every couple of years. It is not going to be resolved, as the member for Kitchener-Wilmot (Mr. Sweeney) has said. I believe we really have to look for solutions.
There have not been many studies done on the impact of major layoffs on families. In the Sudbury area, there are a couple of reports that were done on families affected by the strike during 1978-79 and a follow-up was done by Mr. Henry Radecki. That situation is slightly different from the combination of layoff and strike which we are facing at the moment.
The study of SKF -- the company that left my riding -- is now in the early stages of following up on the impact of layoffs on families; and there is also Windsor's experience, the mayor's task force there is looking at the impact on families. We really do not understand how devastating it is to families to have major layoffs in their community and to have their economy totally disrupted, as is the case in the Sudbury basin. While we do not know the extent of the severity, we do know it is severe. There are many indicators.
The Radecki study on the 1978-79 problems in Sudbury showed that 35 per cent of the people living in that community were worried about never getting a job there again -- and no doubt the people recently laid off by Falconbridge and Inco feel the same way -- and considered pulling up their roots and moving from the area. That decision was made by a very large percentage of the laid-off employees.
However, they found they could not leave for a variety of reasons, not the least of which is where does a miner go today to find work? The reality is that if the rich ore body of Sudbury is not functioning, they are not going to find other jobs in northern Ontario or even in other parts of the country. So the situation is very severe.
Only now are we gaining some idea about the whole question of stress on families. The studies in 1978-79 of the families and their reaction to what they were experiencing during the troubles in those years showed there was a 70 per cent increase in stress symptoms.
I am more familiar with the study on the SKF situation in my riding. Those who were laid off from SKF may have more options, perhaps not for equivalent jobs but at least for other jobs within the Metropolitan Toronto area. Nevertheless, the study indicates that 41 per cent of them responded in a questionnaire that they considered the stress they were suffering from the layoff to be the equivalent of the stress they would experience if a loved one, a spouse or a child in the family, died, which is severe stress indeed.
About 23 per cent of them said they had lost their desire to live because they had no hope for the future. Of course, these are workers in their late forties and fifties, which could be a factor. None the less, the stress on those families is enormous. We are only just learning how hard it is on families.
Sudbury is hit in a cyclical way with this kind of stress and pressure on families and on the community as a whole. The effects include such things as alcoholism, poor mental health and marriage breakup; and probably vandalism as result of unemployment among young people. I am not saying that off the top of my head. The mayor's committee on services for the unemployed in Windsor discovered that is exactly what happened there as the downturn hit its nadir in that area. That is on page 8 of their report.
Mr. Mackenzie: That is a fancy word.
Mr. R. F. Johnston: One fancy word every speech is not bad.
The Acting Speaker (Mr. Cousens): One minute.
Mr. R. F. Johnston: The reports talk about mental health and family problems in the community. Agency representatives say there is an increase in family related problems such as poor mental health and alcoholism being brought to the social service agencies, and we found the same thing in Sault Ste. Marie yesterday when we talked to the social services people.
In Sault Ste. Marie they are just starting to feel the impact of the recession but they are already seeing a major change in the kind of people who are coming to them, people who have never been on welfare before and are ashamed to be obliged to apply for it. They are beginning to suffer all sorts of family pressures. Last month they had the largest number of people on welfare in that city's history. The impact on the family is now being felt.
The city then has increased costs -- increased welfare costs, additional kinds of auxiliary social services costs -- and it is going to have less revenue because of less income in the community to deal with those things. It strikes me --
The Acting Speaker: The member has exhausted the time allotted to him.
4:20 p.m.
Mr. R. F. Johnston: If I can just finish --
The Acting Speaker: I thank the honourable member. It depends on how long that sentence is.
Mr. R. F. Johnston: It is a very short sentence. We need to strike a committee, we need to look at solutions for major one-industry towns like Sudbury and to start looking at those solutions because we cannot have families punished like this on a continuing basis in northern Ontario.
Mr. Haggerty: Mr. Speaker, I want to address myself to the resolution. I may find some difficulty with the wording of it but it concerns "the massive unemployment which will be created by the corporate irresponsibility of Inco and Falconbridge in the Sudbury area" and due to the layoff and the strike at Inco operations in Sudbury and Port Colborne. I, like the member for Nickel Belt, know of some of the difficulties that many of the communities and employees of Inco have faced over the years.
Inco has not had the best of labour relations with its employees and maybe that is where much of the difficulty lies. Perhaps there should be some changes in the Labour Relations Act or in the bargaining process to improve that.
I suggested to the minister the other day in a supplementary question that maybe he should be moving to having a 60-day cooling-off period that would allow unions and management time to reassess their positions and look for new directions for a settlement.
I say honestly to the minister that if he had taken my suggestion a week or so ago perhaps he would never have had the strike in Port Colborne and maybe not in the Sudbury basin. I think many of the employees in this particular area did not clearly understand what they were voting for. I have been informed there was a large vote in favour of turning down the agreement, but not necessarily a strike vote. I suggest that when there is a strike vote taken in any labour dispute or impasse that may occur, it should be the responsibility of this minister to carry out the balloting of that vote to make sure that everyone understands the issues involved.
I suggest that to the minister because Canada has not a good record in employment as it relates to strikes and man-days lost. We are suffering in this area now through the man-days lost and the nonproductivity that occurs during a strike period. In some cases, particularly in the nickel industry during the last couple of years, it has been a benefit to the industry itself because they have been able to lower the huge inventory.
I was a member of that select committee back in 1977 and 1978 when we reviewed the mass layoffs in Port Colborne and the Sudbury basin. At that time there were about 1,800 or 2,000 in the Sudbury area and about 300 at the refinery in Port Colborne. It is the only refinery in Canada. In Port Colborne, there was a program applied with regard to retirement for those who met the criterion of 35 years' service plus age. It was an exceptionally good package and it encouraged a number of them to take early retirement.
Some of them were happy and some of them received a $27,000 or $35,000 payment followed by their long-term pension. I think if the same program had been applied in the Sudbury area in 1977 we would not have had the repercussions that took place at that time.
I think Inco has led in this particular area; although we can be critical of them, they have led in this area. Inco had one of the best pension plans in Canada. I am not here to defend them but I think we have to give credit where credit is due and they tried to give their employees a better package deal in the last layoff. Inco set the precedent and I understand Falconbridge is moving to follow that good bargaining process.
I suggest in that particular area much of the fault lies with this government, as my colleague from Kitchener-Wilmot suggested. The study report in 1977 from the Ministry of Natural Resources -- and I think it is worth while repeating because it is a good message for the Minister of Natural Resources (Mr. Pope) to understand clearly -- a paper entitled The Ontario Metal Mining Industry, warned:
"Unless the markets improve rapidly in the near future it is difficult to see how cuts in the Sudbury mine output can be avoided. Despite this warning the government did nothing to prepare for the disastrous events which have hit the Sudbury area." That report was right on.
I think again of the huge inventory that is now sitting in Inco's stockpile in Ajax and other places. Inco is out on strike now, but with the huge inventory this will be money in the company's pockets. There should be a profit this year for Inco, even though they are in financial difficulty, like many other industries here in Canada and Ontario that got caught in the huge expansion program back in the 1960s and 1970s through poor forecasting and, like Hydro, overexpanded.
Regardless, they went into Indonesia, they went into Guatemala and so on. That is a thing of the past. I think we should be looking to the future. We can be critical of them; I think they criticized them in that report for having gone into that particular area, and I suggest this has caused them some financial difficulties.
Falconbridge is not operating now in the Dominican Republic; it closed that operation. Inco is hard hit. They are even laying off heavily in England and in all their operations throughout the world. They are in financial difficulty. They are selling some of their assets to pay their liabilities. They are covering up so they can salvage the industry, and it is a tough period for them.
I am really concerned that the government must be more involved in the mining sector to keep tabs on the industry; to ascertain what they are doing and where the profit is going. Are they putting it back into mining operations here in Canada or offshore? I am sure the minister is well aware of the boom that has taken place in the past 10 or 15 years. Some of the huge profits from mining industries here in Ontario have been taken out of Canada and have gone into oil and gas exploration in the southern United States. I think they have an obligation to look after long-term employment here in Ontario and in Canada.
It is a responsibility and an obligation of the industry and of government to guarantee that there is going to be long-term employment in Ontario.
Government, management and employees are going to have to take a harder look at what they can do in a co-operative effort to sit down and make this program work through a tripartite group of people in the industry, labour and so on to come up with a sound program for continued long-term employment in Ontario.
The boom days are over, and all of us in this House have to give that consideration. We are not going to see the peaks or the valleys any more. It is a levelling-off period, a transition period now, and it is going to be most difficult. We are facing it now. Experts in the area are predicting it will take six or seven years before this works through the system, and it is going to be a trying time for industry, for employees and for employment in Ontario.
Sometimes I look upon the unemployment insurance program as an evil.
Mr. Wildman: An evil?
Mr. Haggerty: An evil, that's right. It gives industry the right to lay off employees without any obligation at all. They are saying: "I have no moral responsibility. We will let unemployment insurance look after you." I know very well that years ago in Port Colborne Inco would never lay anybody off -- many industries would not -- because they felt they had a community obligation to continue employment.
Mr. Wildman: Even in the 1930s?
Mr. Haggerty: Not in the 1930s, either, that was back in your heyday, I guess.
4:30 p.m.
The Acting Speaker: One minute.
Mr. Haggerty: I think the minister and the government are going to have to take a good look and come forward with new policies and programs to encourage management and labour to work together for long-term employment.
It is a difficult period, and we should have another committee appointed to review it. We have had one on foreign investment, foreign companies and foreign control. That is another problem we are running into. As soon as we shake foreign control in Canada and set our own guidelines for employment and the economic climate, perhaps we will do a lot better.
If the members can recall, back in the 1900s we complained about British money in Canada. Now we are complaining about the Americans. This government is going over now to Japan, asking them to come and invest here. The government is going around in a circle.
Mr. Wildman: Mr. Speaker, it is with a feeling of déjà vu that I rise to speak in this debate. A few years ago --
The Acting Speaker: Will the member for Algoma allow me to correct my oversight and recognize the fact that we were going around this way? I did not even look to the right.
Mr. Wildman: We do not often look to the right either.
The Acting Speaker: I accept that, however, the Minister of Natural Resources is next.
Hon. Mr. Pope: Mr. Speaker, it is my pleasure to participate in the debate. My friend the member for Erie (Mr. Haggerty) expressed some concern about investment by the resource sector offshore. Since he was quite concerned about it, he probably would be happy with a recent update contained in Northern Ontario Business for April 1982 with respect to the capital reinvestment going on in the resource sector in northern Ontario, because it totalled between $5 billion and $6 billion in the private sector. Some of the projects have had the support of the federal and provincial governments; some are direct expenditures of the companies themselves.
One can through the whole list: Abitibi-Price, $107 million; Algoma Central Railway, $77 million; Algoma Steel, $300 million; American Can, $53.5 million; Bell Canada, $82.8 million; Boise Cascade, $290 million; CP Rail, $45 million; the Canadian government, through the Canadian Forces base in North Bay, $80 million; Denison Mines Ltd., $300 million; Detour Lake, $143 million; Dome Mines, $91.7 million; Domtar Inc., $48 million; E. B.
Eddy Forest Products Ltd., $200 million; Eldorado Nuclear Ltd., $150 million; Falcon bridge, $60 million; Noranda's Geco mine, $1.35 million; Great Lakes Forest Products Ltd., $430 million; Great Lakes Power Corp., $105 million; Inco, $70 million to $80 million; Kidd Creek Mines, $10 million; Kimberly-Clark of Canada Ltd., $10 million; Mattabi Mines, $42.9 million; Long Lac Minerals, $25 million; MacMillan Bloedel, $3 million; Northern and Central Gas, $32 million; Northern Telephone, $8.5 million; Spruce Falls Power and Paper Co.
Ltd., $100 million; Pamour Porcupine Mines, $14.7 million; Rio Algom Mines, $300 million; and on and on.
The projects that are going on are reinvestments by these resource companies in northern Ontario. This is an indication that there is some feeling the resource sector in northern Ontario provides a good avenue for private sector investment and a good, fertile sector of the economy in which the government and the private sector can participate together. I just wanted to correct the misapprehension of the member for Erie.
As I said in Sudbury when I was there approximately six weeks ago, and it was stated by Dr. Anders of our ministry at the 84th annual general meeting of the Canadian Institute of Mining and Metallurgy when we were discussing the structure,
interpretation and implications of Ontario's mineral market forecasting model, the situation with respect to nickel is not hopeful in the long term; and by the long term I mean five to six years. This was based on simulator models that have now been recognized as being among the most accurate in the world with respect to metal prices.
The Ministry of Natural Resources report that was quoted in 1977 was used in the legislative com