Manitoba Hansard — 16 September 1969 (Sitting 34, 29th Legislature, 1st Session)

29-1-34

Manitoba — Debates (Hansard)

Legislative Assembly of Manitoba DEBATES and PROCEEDINGS Speaker The Honourable Ben Hanuschak Vol. XVI No. 34 2:30 p.m., Tuesday, September 16th, 1969. First Session, 29th Legislature. Printed by R. S. Evans - Queen's Printer for Province of Manitoba

MEMBERS OF THE EXECUTIVE COUNCIL Premier, President of the Council, Minister of Industry and Commerce Minister of Finance Minister of Labour . . . . . . . . . . . . . . . . . . . . . Attorney-General Minister of Health and Social Services, Commissioner of Northern Affairs Minister of Agriculture . . . . . . . . Minister of Consumer and Corporate Affairs Minister without Portfolio, Cultural Affairs Minister of Mines and Natural Resources Minister of Tourism and Recreation Minister of Youth and Education . . .

Minister of Transportation Minister of Municipal Affairs, Minister of Government Services STANDING COMMITTEES PRIVILEGES AND ELECTIONS: Hon. Edward Richard Schreyer Hon. Saul M. Cherniack, Q.C. . . . . Hon. A. R. Paulley . Hon. Alvin Henry Mackling . Hon. Sidney Green . . Hon. Samuel Uskiw . . Hon. Rene Toupin . Hon. Phillip Petursson Hon. Leonard Evans Hon. Peter Burtniak . Hon. Saul A. Miller . Hon. Joseph P. Borowski . . Hon. Howard Pawley Hon. Messrs: Green, Mackling, Paulley. Messrs: Allard, Bilton, Boyce, Doern, Einarson, Gonick, Gottfried, Johnston (Portage), McBryde, McGill, McKellar, McKenzie, Weir.

PUBLIC ACCOUNTS: Hon. Messrs: Borowski, Cherniack, Evans, Miller, Paulley, Pawley. Messrs: Barrow, Craik, Desjardins, Doern, Ferguson, Froese, Gonick, Gottfried, Hardy, Henderson, Jenkins, Jorgenson, Malinowski, McGregor, McKenzie, Molgat, Patrick, Shafransky, Sherman, Spivak, Turnbull, Uruski, Weir. PUBLIC UTILITIES AND NATURAL RESOURCES: Hon. Messrs: Burtniak, Cherniack, Evans, Green, Toupin. Messrs: Barrow, Beard, Bilton, Boyce, Craik, Desjardins, Doern, Enns, Fox, Froese, Gonick, Graham, Jenkins, Johannson, Johnston (Portage), Johnston (Sturgeon Creek), McGill, Molgat, Shafransky, Spivak, Turnbull, Watt.

AGRICULTURE: Hon. Messrs: Borowski, Burtniak, Pawley, Petursson, Uskiw. Messrs: Allard, Barkman, Barrow, Boyce, Einarson, Enns, Ferguson, Graham, Gonick, Gottfried, Henderson, Johannson, Johnston (Portage), Jorgenson, McBryde, McGill, McGregor, McKellar, Malinowski, Turnbull, Uruski, Watt. MUNICIPAL AFFAIRS: Hon. Messrs: Burtniak, Cherniack, Green, Mackling, Miller, Paulley. Messrs: Allard, Barkman, Boyce, Claydon, Ferguson, Fox, Girard, Hardy, Henderson, Jenkins, Johannson, Johnston (Sturgeon Creek), Malinowski, McBryde, McGill, Moug, Patrick, Shafransky, Sherman, Mrs. Trueman, Messrs. Turnbull, Uruski.

LAW AMENDMENTS: Hon. Messrs: Borowski, Burtniak, Cherniack, Evans, Green, Mackling, Miller, Petursson, Paulley, Pawley, Toupin, Uskiw. Messrs: Allard, Barrow, Beard, Bilton, Boyce, Claydon, Craik, Desjardins, Doern, Einarson, Enns, Fox, Froese, Girard, Gonick, Gottfried, Graham, Hardy, Jenkins, Johannson, Johnston (Portage), Johnston (Sturgeon Creek), Jorgenson, McBryde, McKellar, McKenzie, Molgat, Moug, Patrick, Shafransky, Sherman, Spivak, Mrs. Trueman, Messrs. Turnbull, Uruski, Watt, Weir. PRIVATE BILLS, STANDING ORDERS, PRINTING AND LIBRARY: Hon. Messrs: Evans, Mackling, Paulley, Toupin, Uskiw.

Messrs: Barkman, Barrow, Claydon, Craik, Desjardins, Doern, Einarson, Enns, Gottfried, Jorgenson, Malinowski, McBryde, McKellar, Molgat, Mrs. Trueman, Mr. Uruski. INDUSTRIAL RELATIONS: Hon. Messrs: Green, Paulley, Petursson. Messrs: Beard, Boyce, Claydon, Fox, Girard, Hardy, Jenkins, Johannson, Johnston (Portage), Malinowski, McGregor, McKenzie, Moug, Patrick, Shafransky, Sherman, Turn bull. STATUTORY REGULATIONS AND ORDERS: Hon. Messrs: Mackling, Miller, Toupin, Uskiw. Messrs: Allard, Barkman, Bilton, Desjardins, Fox, Gonick, Graham, Johannson, Spivak, Mrs. Trueman, Mr. Weir.

THE LEGISLATIVE ASSEMBLY OF MANITOBA 2:30 o'clock, Tuesday, September 16, 1969 Opening Prayer by Mr. Speaker. 747 MR. SPEAKER: Presenting Petitions; Reading and Receiving Petitions; Presenting Re ports by Standing and Special Committees; Notices of Motion; Introduction of Bills. INTRODUCTION OF GUESTS MR . SPEAKER: I should like to direct the attention of the honourable members to the gal lery on my left where we have 65 students of Grade 11 standing of the Miles Macdonnell School. These students are under the direction of Mr. Bugera and Miss Lindsay.

This school is located in the constituency of the Honourable Member for Kildonan. On behalf of all the member_s of the Legislative Assembly, I welcome you here today. Orders of the Day. ORAL QUESTION PERIOD MR . SPEAKER: The Honourable Member for Lakeside. MR. HARRY ENNS (Lakeside): Mr. Speaker, I direct aq uestion to the Honourable the House Leader. Is the House Leader at this time prepared to indicate to members of the House at which time the Pu blic Utilities meeting will be called? HON. RUSSELL PAULLEY (Minister of Labour)(Transcona): As I indicated previously, Mr.

Speaker, I'll announce in due course whether or not the committee will meet. MR . SPEAKER: The Honourable the House Leader of the Liberal Party. MR. GORDON E. JOHNSTON (Leader of the Liberal Party)(Portage la Prairie): Mr. Speaker, my question is addressed to the Honourable Minister of Youth and Education. In view of the statements made by a professor at the University of Winnipeg with respect to teaching political science, would it be the intention of his department to insist upon a certain percentage of Canadian content in the textbooks ? HON. SA UL A. MILLER (Minister of Youth and Education)(Seven Oaks): Mr.

Speaker, I'm not aware of the statement that the honourable member refers to. I would like to see it if he has a copy of it. I might say that the Department of Education does not involve itself in cur riculum at the university level. That's pretty well left to the university to do themselves. MR . SPEAKER: The Honourable Member for Lakeside. MR . ENNS: A question, Mr. Speaker, to the First Minister. Early on it was indicated that in the matter of the South Indian Lake investigation a Mr. Cass-Beggs, and I believe a Mr. Durnin, were both involved in these findings.

Could the First Minister indicate whether or no the other partner to this investigation, namely Mr. Durnin concurred with the findings that were tabled in the House yesterday by the First Minister. HON. ED. SCHREYER (Premier) (Rossmere): Well, Mr. Speaker, I couldn't really say although my understanding is that Mr. Cass-Beggs was retained by this government to give us his professional views and opinion, and Mr. Durnin was in turn hired by Mr. Cass-Beggs. MR . ENNS: My question still is, Mr. Speaker, my supplementary question, has the gov ernment any knowledge of whether the final position taken by Mr.

Cass-Beggs was concurred in by Mr. Durnin. MR. SCHREYER: Mr. ·speaker, this government did not give any terms of reference to Mr. Durnin nor did it ask him for a report. As I said, my understanding is that Mr. Cass-Beggs, once he was retained by this government, in turn retained the services of Mr. Durnin to assist him. MR. ENNS: A final supplementary question, Mr. Speaker. Would the government con sider the advisability of having Mr. Durnin available to the members of the House at the public utilities meetings ? MR . SCHREYER: Mr.

Speaker, if this government were asking this Legislative Assembly to make a decision or to vote on any bill or subject matter, perhaps the honourable member would have a point; but since this government is not asking this Assembly to vote on the matter it doesn't seem necessary to call any meeting of the committee. MR . SPEAKER: The Honourable Member for Assiniboia. MR. STEVE PATRICK (Assiniboia): Mr. Speaker, I wish to direct my question to the Honourable Minister of Youth and Education. Is the Minister considering removing the five percent sales tax on school supplies, on purchases made by school divisions?

748 September 16, 1969 MR . MILLER: Mr. Speaker, I don't think this falls really within the Department of Educa tion. The five percent sales tax is not earmarked for education purposes and I think the Minister of Finance is in a better position to answer than I might. MR . PATRICK: I direct my question to the Honourable Minister of Finance. Is the govern ment considering at the present time to remove the five percent sales tax on supplies or pur chases made by the school divisions? HON. SAUL CHERNIACK, Q. C. (Minister of Finance)(St. Johns): The purchase of what? MR.

PATRICK: The purchases made by school divisions, such as desks and fuel and soon. MR. CHERNIACK: The government is looking at the entire sales tax picture at this time. MR . SPEAKER: The Honourable Member for Fort Garry. MR . BUD SHERMAN (Fort Garry): Mr. Speaker, I'd like to direct a question to the First Minister with reference to the South Indian Lake situation. Can the First Minister tell the House how much the report prepared by Professor David Cass-Beggs cost the province? MR . SCHREYER: I can take that ques tion as notice, Mr. Speaker. STATEMENT MR . SPEAKER: The Honourable Minister of Cultural Affairs.

HON. PIDLIP PETURSSON (Minister of Cultural Affairs) (Wellington): Mr. Speaker, I would wish to draw the attention of the members to the cards and other matters with them that have been distributed to the various desks. These are copies of invitations that are being sent out by the Centennial Corporation to all former Manitobans, who no longer live in Manitoba, to return home to Manitoba during Centennial year. I thought I might take advantage of the opportunity, Mr. Speaker, to inform the House of some of the things that the Centennial Corporation has in mind and what it is planning for centen nial year.

No announcement has been made in the House as far as I know and I would wish to keep the members informed to some degree about what is being done and what is being planned. The mood and the spirit of 1970 will be caught in a one hour light-up and sing festivities on December 31st between the hours of 5 and 6 o'clock, and through the media of radio and tele vision and telephone the voices of thousands of Manitobans singing alone or in groups will be heard and recorded during that hour, extending from Churchill to the International Peace Gardens.

The joint committee of the province and the Federal Government is working to ensure that both parties to the union will celebrate the occasion in a suitable manner. The feeling of national unity is very strong in this province and the year 1970 will provide an excellent opportunity to show this feeling to the rest of the country. A program of student exchange in a form that is called twinning of classrooms within the province is being worked on and will be announced to a greater degree within a reasonable time.

It is planned to declare May 12th as a school holiday and July 15th of course will be a provincial holiday. Presently under way are 207 projects under the provincial grants program that vary in size from an enclosed swimming pool in the north end of Winnipeg to a playground for the Bird tail Sioux Indian Band. In between these hvo extremes are a great variety of provincial grants programs. The centennial citizens campaign under the eo-Chairmanship of Mr. Samuel Cohen, Mr. George Heffelfinger and Mr.

George Sellers, passed its quota of $4 1/2 million, and the com mittee has embarked on a new campaign in the amount of $2, lOO, 000 and is almost half way - has almost reached the half-way mark towards that goal. The Museum of Man and Nature now under construction will be officially opened and dedicated during the year HJ70. School children will receive commemorative medallions and will participate in historical pageants and provincial-wide sports and fitness tests. In 1967 Manitoba will lead all provinces by having 78 percent of all school children participate and be awarded centennial fitness crests.

Of interest to those sports minded is the world hockey tournament which will be held in Winnipeg from July 1st to the lOth, and that will be followed by the Macdonald Brier Canadian Curling Championships. There are 27 major Canadian or international athletic championships being held in Manitoba during the coming year. Special financial assistance will be given to the annual sporting events such as the Canoe Derby, the Flin Flon Trout Festival, the Dog Derby, The Pas Trappers Festival, the Morris Rodeo and many others. An up-to-date and popular type of history of Man itoba will be commissioned and other books

September 16, 1969 749 (MR. PETURSSON cont•d.) •..• of historic nature will be published. These invitations that were distributed here have already been sent out to 30, 000 former Manitobans and the mailing of them will continue as long as there are any Manitobans whose names have not been listed, and it is hoped that the members of the House will participate in this mailing campaign and send in names or mail to their friends. An interesting program is being planned for pioneers and senior citizens and every area in the province will have a special pioneer day- pioneer banquets and pioneer awards.

Invitations have been sent out and replies have been received from every province and 37 of the states of the United States, and as far away as Italy, to Japan and Israel from former Manitobans who have been receiving these invitations. All 13 of the area municipalities of Metropolitan Winnipeg have active and enthusiastic centennial committees as well as having at least one major centennial project. The committees are eagerly planning a year round program for their citizens. The Centennial Corporation has taken the story of the centennial of the province to Cran berry Portage, La Broquerie, Ste.

Rose, Clear Lake, the International Peace Gardens and Teulon, and will continue to hold these area meetings twice a month until the province has been criss-crossed at least twice. The Premier's invitation to businesses, associations, clubs and so on to hold meetings, conventions and board meetings, and to groups to have school and class reunions, has been well received, and there are now 46 major conventions and 24 board meetings of national companies planned to meet in Manitoba during the coming year.

It is planned to hold a major celebration for July 1st in Manitoba and a festival of fun, sports and arts will continue from July 1st through to July 15th. And finally in this brief statement, Mr. Speaker, I would extend an invitation to all mem bers of the House to participate in the first Canadian National Horseshoe Pitching Contest to be held in Manitoba in the City of Dauphin early in July next year. If you can't accept that invita tion, make sure that the car you are driving displays the centennial license plate and heads for Dauphin at the time that this great international event takes place. Thank you.

ORAL QUESTION PERIOD (CONTINUED) MR. SPEAKER: The Honourable Member for Riel. MR. DONALD W, CRAIK (Riel): Mr. Speaker, can the Honourable House Leader indicate to the House how many more government bills will be presented at this session and when we might receive them? MR. PAULLEY: I can only give my honourable friend, Mr. Speaker, an approximation. I indicated the other day that there would be about four. I think that's just about it. MR. CRAIK: When can we expect them? MR. PAULLEY: Well, some of the bills, Mr.

Speaker, as my honourable friend should know, may have something to do with the address that my colleague the Minister of Finance will be speaking on the budget, and the supply bills. They will be here just as quickly as possible. My honourable friend knows that we're a very aggressive group on this side and there's been no delay caused by us. MR. SPEAKER: The Honourable Member for La Verendrye. MR. LEONARD A. BARKMAN (La Verendrye): Mr. Speaker, I shall direct my question to the Minister of Municipal Affairs. I take for granted that a committee on a revised Municipal Act will be proceeded with.

In view of the concern of the many municipalities that they be com pleted as soon as possible, can the Minister indicate how soon this committee will meet? MR. PAULLEY: Mr. Speaker, in answer to my honourable colleague, notice has been given of the introduction of the establishment of such a committee in Votes and Proceedings - yesterday I believe. MR . J. DOUGLAS WATT (Arthur): I'd like to direct a further question to the First Minister, Mr. Speaker, in regards to the Public Utilities Committee.

My question is: Does the First Minister not consider that it would be in the best interests of the people of the Province of Manitoba to call that committee in order that members of the Legislature and other people in terested might have an opportunity to question and get the views from Mr. Cass-Beggs, from the hydro officials, and any others that might have been involved in the government's very important decision yesterday that affects not only the 600 people up at the South Indian Lake but a million other Manitobans.

750 September 16, 1969 MR . SCHREYER: Mr. Speaker, of course there will be intensive study and study in depth on all of the implications that derived from the change in policy relative to the diversion of the Churchill Ri ver by means of a high-level diversion. That's precisely why in the course of the next three months it will in fact be necessary to have these very intensive studies, and some of these studies may take the form of hearings so that the public such as are interested will have a chance to make their views known. MR . WATT: A subsequent question, Mr. Speaker.

When do you expect these hearings to be held? MR . SCHREYER: These studies, Mr. Speaker, will have to take place in the course of the next three months, and possibly even beyond that. MR . SPEAKER: The Honourable Member for Brandon West. MR . EDWARD McGILL (Brandon West): Mr. Speaker, on a point of privilege, I wish to correct an error in Hansard, Volume 16, No. 24, Page 557. I was quoted as saying that Mr. John Diefenbaker was a graduate of Brandon College. I believe I said Mrs. John Diefenbaker. MR . SPEAKER: The Honourable Member for Roblin. MR. J. WALLY McKENZIE (Roblin): Thank you, Mr, Speaker.

Now that the First Minister has indicated there will be change in policy of government as related to Southern Indian Lake and the House Leader ofthis free democratic party has indicated that we may get hearings, · or it will be announced in due course, my question is to the Minister of Mines and Natural Re sources. Is he prepared to answer the questions that my constituents are asking at this time? HON. LEONARD s. EVANS (Minister of Mines and Natural Resources)(Brandon East): What are the questions? Would you like to .. ... MR . McKENZIE: .. . . relating to Southern Indian Lake. MR.

EVANS: Well, as the First Minister has indicated, there will be ample opportunity at public hearings for representations to be made by all members of the community, but if you have some specific questions, Sir, I'd be delighted to receive a letter from you and attempt to answer it. MR. SCHREYER: Mr. Speaker, the other day the House Leader of the Liberal Party asked a question in this House having to do with the number of trucks that were hired for work at Churchill Forest Industries at The Pas; the number of trucks in Manitoba and the number from Saskatchewan, etc.

I can tell the honourable member that my information is that there are approximately 55 trucks working on the project at The Pas which are trucks with Manitoba license, Manitoba licensed and owned presumably, and approximately 23 or 24 trucks hired which come from Saskatchewan points. I am advised further that the project manager at Churchill Forest Industries, The Pas, is standing ready to hire quite a number of additional trucks from Manitoba should any truck owner be interested. MR. SPEAKER: The Honourable Member for St. Boniface. MR. LAURENT L. DESJARDINS (St. Boniface): Mr.

Speaker, I rise on a point of order, and I would like to draw to your attention today on Page 3 of the Orders of the Day, Resolution 9. I believe that I presented an amendment to the resolution on the monarchy introduced by the Leader of the Opposition and that you accepted it. Now my reason for bringing this to your at tention at this time, Sir, is I think that provision should be made to get this amendment in case somebody wants to take

part in the debate. Of course it appeared, the amendment appeared in yesterday's Votes and Proceedings. MR. SPEAKER: The Honourable House Leader of the Liberal Party. MR . G. JOHNSTON: My question is to the Honourable Minister of Finance. Can he in form the House when he intends to introduce the budget speech? MR . CHERNIACK: Mr. Speaker, I had not settled, made a firm decision, but I am aim ing at Thursday at 8:00 o'clock. I had undertaken to give a day's notice and I was planning to make the firm decision by tomorrow. Now I'll reverse myself.

If for some reason I can't go on on Thursday, I will notify the House in advance. MR. SPEAKER: The Honourable Member for River Heights. MR . SIDNEY SPIVAK, Q.C. (River Heights): Mr. Speaker, my question is directed to the Minister of Transportation and the First Minister. A few days ago they took as notice the ques tion as to whether the province would be represented before the Interstate Commerce Commis sion about the discontinuance of the service between Winnipeg and St. Paul and Minneapolis by Great Northern. I wonder if they have an answer in connection with that now. MR . SCHREYER: Mr.

Speaker, we'll take that question as notice.

September 16, 1969 751 MR . SPEAKER: A supplementary question? MR . SPIVAK: No, another question to the First Minister. He took as notice a question and indicated that there would be an answer Monday as to whether the Department of Industry and Commerce were successful in negotiating with the North West Orient Airlines for an air tunnel for the International Airport. MR. SCHREYER: Yes. Well, Mr. Speaker, that question was taken as notice and remains as such, and an answer will be forthcoming shortly. MR. SPEAKER: The Honourable Member from Fort Garry. MR. SHERMAN: Mr.

Speaker, I'd like to direct a question to the Minister of Mines and Natural Resources. In view of the CBC television report of serious. and lethal danger to certain game birds and humans in the Province of Alberta resulting from mercury contained in an agri cultural seed-washing solution, can the Minister reassure the House that no similar danger exists in the Province of Manitoba? MR. EVANS: Mr. Speaker, I thank the honourable member for bringing this question up at this time because it was my intention to issue a statement at this time.

With regard to the mercury residues in game birds, you're correct, there's been reports of such being found in the Alberta upland game birds. Mercury residues at levels suspected to be potentially harmful to human beings in some circumstances have been detected in the flesh of a sample of pheasants and Hungarian partridges from Alberta. Tests on grouse and waterfowl were negative, as were those made on a sample of Saskatchewan Hungarian partridges. Tests will be conducted on --c Manitoba game birds over the next few days, but at this time we have no knowledge of any cause for concern.

Pheasants are not legal game in Manitoba and our earliest hunting season on Hungarian partridges opens on September 19th across central Manitoba south of The Pas where this species is extremely sparse. Too few birds will be shot by hunters in this zone to create a problem in the opinion of the officials of my department. If birds have high levels of mercury in their flesh a person would still have to consume, I'm informed, several over a short period before his health might be affected. This number of birds is not present in the areas that open to hunting on September 19th or on September 26th.

Our better Hungarian partridge hunting zones are in southwestern Manitoba where the season opens on October lOth. Test results for birds from this area will be known in time to take precautionary measures in case such action is considered advisable. In other words, we are concerned about the problem. We have made some preliminary examination of it and there does not appear to be any cause for concern, but in connection with the Hungarian partridge hunting zones, further tests will be conducted. MR . SPEAKER: The Honourable Member for Fort Garry. MR. SHERMAN: A supplementary question, Mr.

Speaker, and I thank the Minister for the information given. Could I ask the Minister, can we assume in the Province of Manitoba that there is no similar danger where the duck population is concerned. MR . EVANS: Well, I think it depends on the type of food that the birds in concern con sume. I think I would have to consult with the people in my department. I would hope not, but I will take the question as notice and answer you in due course. MR. SPEAKER: The Honourable Member for Roblin. MR . McKENZIE: Mr.

Speaker, a question to the Minister of Mines and Natural Re sources, who I think said he would answer the questions regarding the change of policy at Southern Indian Lake. With regard to the Canada Atomic Energy Manitoba agreement with respect to the power and transmission lines , I have several in my constituency working on that project. Will there be any change of policy there? MR . EVANS: Mr. Speaker, there is no intention to discontinue construction of that trans mission line. You're talking about the DC transmission line from the north? No, this is going ahead as planned. MR.

SPEAKER: The Honourable Member for Churchill. MR. GORDON W. BEARD (Churchill): Thank you, Mr. Speaker. I'd like to direct my question to the Minister of Agriculture, or possibly to the Minister of Industry and Co=erce. Are they aware of the fact that there has not been a ship in Churchill since the 13th of September and there isn't one due in until the 22nd. That's almost 12 days of shipping cut off in a very short season now. HON. SAMUEL USKIW (Minister of Agriculture)(Lac du Bonnet): Mr. Speaker, I 'm not

752 September 16, 1969 (MR. USKIW cont'd. ). ,,, aware of the facts as stated, although I don't know whether there were reasons to have a ship at that particular time. I don't know whether we have for example grain sales which would make it necessary to load ships at this particular time, so there may be a legitimate reason for it. MR. SPEAKER: The Honourable Member for Souris-Killarney. MR, EARL McKELLAR (Souris-Killarney): Mr. Speaker, I'd like to direct a question to the Minister of Agriculture.

In today's paper there's a statement to the effect that the Economic Council of Canada foresees a discouraging future for Canada's wheat exports. Do you agree with this statement? MR. USKIW: Mr. Speaker, I don't know what the question is really. MR. SPEAKER: The Honourable Member for River Heights. MR. SPIVAK: Mr. Speaker, I'd like to direct a question if I may to the Honourable Min ister of Transportation. Can he tell me whether the province will be represented before the Spring Court on the appeal of the Railway Costing Order 6313. HON, JOSEPH P, BOROWSKI (Minister of Transportation)(Thompson): Mr.

Speaker, I'll take that question as notice. While . I'm on my feet, I'd like to announce that the Mauro report will be for sale at the end of the week at $2. 00 , which is half the cost of production. The reason for selling it at what you might call a cut-rate price is to get wide distribution. We think it's a good report and we'd like to see as many people as possible get their hands on it. Also, I'd like to distribute a copy of a highway project that was requested by the member for Morris.

At the risk of embarrassing him, I had 57 copies printed and it indicates all the -, projects that haven't gone ahead and I think it's about half of the original order. MR, SPEAKER: The Honourable Minister of Municipal Affairs.

HON, HOWARD R, P A WLEY (Minister of Municipal Affairs)(Selkirk): ... question ad dressed to myself by the Honourable Member for Churchill on Page 335 of Hansard, dealing with whether or not the province has money set aside for grants in lieu of taxes from the Feder al Government with respect to the townsite of Churchill, the answer is that the government has no money set aside in a reserve fund. However, the Local Government District has a reserve fund set aside, which fund has been accumulated from the revenues of the Local Government District, including grants in lieu of taxes. It has been necessary, Mr.

Speaker, from year to year to borrow from the fund for the current financing of Local Government District due to the fact that Federal Government grants in lieu of taxes are usually paid quite late. It is from this fund that the Local Government District will hopefully be able to advance funds for the purpose of assisting local residents in the financing of sewer and water connections in cases where the costs are so high that they cannot be met on a cash basis.

The general purpose of the fund is to provide a source from which funds can be borrowed to finance extraordinary costs with which the Local Government District may be confronted, so that those costs can be immediately met and the money paid back to the fund in an orderly manner. HON. AL. MACKLING (Attorney-General)(St. James): Mr. Speaker, I would like to answer the Honourable Member for River Heights .. .. upon my department and steps have been taken to resist the appeal that he refers to. MR, SPIV AK: A subsequent question, Mr. Speaker, to the Attorney-General.

My con cern was not that there be representation in terms of the province. Will the province be making a presentation itself? MR. MACKLING: I don't understand your question. An appeal has been taken to the costing order, an appeal has been taken by the railroad, and your question is whether the prov ince will make representation. Well certainly we will make representation to the Supreme Court against the appeal. MR. SPEAKER: The Honourable Member for Churchill. MR. BEARD: Mr. Speaker, I'd like to ask a subsequent question of the Minister of Municipal Affairs in respect to his announcement.

How much is in this fund now and is it at the disposal of the Advisory Council? MR. PAWLEY: Mr. Speaker, I feel that I must take that question as notice. MR. SPEAKER: The Honourable Member for Rhineland. MR, JACOB M, FROESE (Rhineland): Mr. Speaker, I'd like to address a question to the Honourable the Minister of Finance. How did the government end up in their fiscal year ending March 31, '69 ? Did we end up with a surplus account, and if so, how is that surplus going to be applied?

September 16, 1969 753 MR. CHERNIACK: Mr. Speaker, I'm not sufficiently versed on that matter to answer precisely and I don't think that the full statement has been completed. I'm under the impression that there may have been a slight surplus and that it would form part of the assets of the prov ince in whatever method was used by the prior government. There has been no change in what the use of it would be. MR . SPEAKER: The Honourable Member for Rhineland. MR. FROESE: Has it not been the practice that if surpluses accrued that these are ap plied on debt reduction? MR .

CHERNIACK: The practice is one that I would assume will have been done at that time. MR. SPEAKER: The Honourable Member for Roblin. MR . McKENZIE: Mr. Speaker, I'd like to direct a question to the Honourable Member for Rhineland. MR . SPEAKER: .... questions of that type are not allowed under Orders of the Day. MR . McKENZIE: I beg your pardon? MR . SPEAKER: Questions of that type are not allowed under Orders of the Day -- or before Orders of the Day. · A MEMBER: Not unless there is leave. MR. McKENZIE: By leave, Mr. Speaker? MR . SPEAKER: You appear to have leave of the House. MR.

McKENZIE: In reply to the policy statement of the First Minister yesterday, the Honourable Member for Rhineland in Hansard said: "After having received advice from outside people, I'm happy." I'm wondering if his Party has done a study on Southern Indian Lake. MR. FROESE: Mr. Speaker, I am not just aware of what the statement is implied to, but if I recollect correctly it had to do with the hearings that we had in the utility Committee. I had private discussions with some of these people that appeared before that committee and I think that is the reference I made at that time. MR .

SPEAKER: The Honourable Member for Lakeside. MR. ENNS: Mr. Speaker, I understand to a question put to the Minister of Finance earlier, he indicated that prior to reaching the decision the government had discussed the mat ter with the investment people involved in the financing of the Hydro Electric projects.. Could the Minister or the First Minister indicate whether or no the government met with the Manitoba Hydro Board prior to the statement being released yesterday. MR. CHERNIACK: There have been meetings and I have not participated in all of them.

I participated in one particular meeting with the manager who is the chairman of the board, Mr. Fallis, and several of the people that work with him. MR . ENNS: A subsequent question, Mr. Speaker. I would of course assume that the Minister responsible for the Public Utilities would be meeting with Hydro from time to time, but specifically did the government meet with the Manitoba Hydro Board to discuss the contents of the statements issued by the First Minister yesterday? MR. CHERNIACK: There was not a formal meeting held with the board -- I mean a board meeting held with whom this was discussed. MR.

SPEAKER: The Honourable Minister of Mines and Natural Resources. MR. EVANS: Mr. Speaker, the Honourable Member from Lakeside asked a number of questions on flooding conditions on Lake Winnipeg and I have since asked the appropriate of ficials in the department to look into it. i am informed that there have been no rash of com plaints; there have been a few minor complaints this year. Most of the complaints however re late to private property damage which therefore is the responsibility of the private cottage owner, or the complaints relate to areas of municipal jurisdiction.

There are one or two items where the department has had to take action and such action has been taken. In short, the situa tion on the lake at the present time at least is not considered to be an emergency situation and hence any minor protection for private properties is being left with the local municipal author ities. Hence, we feel that the situation is well in hand. MR. SPEAKER: The Honourable Member from Fort Rouge. MRS. INEZ TRUEMAN (Fort Rouge): Mr.

Speaker, I'd like to ask the Honourable Min ister of Mines and Natural Resources whether he also has the answer to the question I asked yesterday concerning the present level of Lake Winnipeg and the proposed level at which it will be controlled.

754 September 16, 1969 MR . EVANS: Mr. Speaker, I will obtain the information on the present level of Lake Winnipeg. The question of the control of the lake is one of the main concerns of the feasibility study. In other words, the study has to be conducted in order to find out what are the proper parameters for the lake to meet all interests - Hydro, agriculture, navigation, fishing, recrea tion and so on. This is a very key question and this will be subject to much study, I can assure you.

But on the specific question of the lake level at the very present time, I can obtain that information and will do so shortly. MR . SPEAKER: The Honourable Minister of Agriculture. MR . USKIW: Mr. Speaker, because of my proximity to the lake, I've been keeping a very close eye on the levels of Lake Winnipeg and I may inform the honourable member that it has been somewhere in the area of 713 to 715 in the last month. It varies between those figures. ORDERS OF THE DAY - PRIVATE MEMBERS' RESOLUTIONS MR. SPEAKER: The adjourned debate on the proposed resolution of the Honourable Member for Assiniboia.

The Honourable Member for Winnipeg Centre. MR . BUD BOYCE (Winnipeg Centre): Mr. Speaker, I adjourned this debate for the Min ister of Labour, to whom I yield. MR. PAULLEY: Mr. Speaker, I appreciate .... my honourable friend, but I beg to move, seconded by the Honourable Minister of Finance, that debate be adjourned. MR . SPEAKER presented the motion and after a voice vote declared the motion carried. MR., SPEAKER: The proposed resolution of the Honourable Member for Assiniboia. � The Honourable Member for Kildonan. MR .

BOYCE: In the absence of the honourable member, if no one else wishes to speak, I would adjourn the debate, Mr. Speaker. I would move, seconded by the Honourable Member from Flin Flon, that debate be adjourned. MR. PAULLEY: ..... Mr. Speaker, that my colleague can take the adjournment. The Honourable Member for Kildonan is not here. He loses his right to speak, so then the debate is open and my colleague is moving the adjournment. But may I suggest that if any other mem ber wishes to speak, I'm sure that my colleague from Winnipeg Centre would be prepared to listen to them as the rest of us would be. MR.

BOYCE: If no one else wishes to speak, I would move the adjournment. MR. PAULLEY: That's correct. MR. SPEAKER presented the motion and after a voice vote declared the motion carried. MR . SPEAKER: The adjourned debate on the proposed resolution of the Honourable Member for Ste. Rose. The Honourable Member for River Heights. MR . SPIV AK: Mr. Speaker, may I have the indulgence of the House to have this matter stand, but if anyone wants to speak on this, I certainly will allow it. MR. SPEAKER: (Agreed.) The adjourned debate on the proposed resolution of the Hon ourable the House Leader of the Liberal Party.

The Honourable Minister of Youth and Education. MR . MILLER: Mr. Speaker, perhaps to speed things up I should also ask the indulgence of the House to let the matter stand, but perhaps we should deal with this resolution; it's been on the Order Paper for a few days. Two members, both the mover and the Member for Eme rson spoke on it and I want to thank them both, particularly the Member for Emerson for his com ments and his understanding of the problem. I'm sure the Member for Portage was quite sincere in bringing in this resolution.

I know it's a resolution that's been brought in the past in this House and been thoroughly discussed. I know I've had certain views on this subject as well and I haven't changed them all that much. In my opinion, the resolution as it stands now is an attempt to deal with a pretty complex problem in a somewhat patchwork manner. I don •t think that by complying or accepting this

schedule of reductions as laid out as it has been on a 10 percent per year basis is necessarily going to resolve the problem for us. I don't think that in itself is going to meet the problem which is facing the municipalities, the local taxpayer and the Department of Education in finding a method of financing education in a more equitable manner than has been done in the past.

I think we need a proper review, an over-all review of financing education, and it must take into account not just the percentage of the Foundation Grant, which is just a formula really, but it's got to take in the whole question of the Foundation Program itself. Is it realistic in the light of today's costs? Is the Foundation Program, which was I think conceived about '66, is it

September 16, 1969 755 (MR. MILLER cont'd.) .... in fact meaningful and realistic, as I say, in the light of today's program and today's input into education by the various school divisions and of the known costs that they have to fact?

As I say, the Foundation Program is basically unchanged since 19 67 when it was introduced, and I don't doubt in the winter of '67 it was probably based on statistics which were compiled in 19 66 because there's alway s a one year gap between the figures that we have to work with because it takes about 12 months to get them out of the various departments and the annual audited statements from the various school boards across the province.

So what is re.:. quired, I feel, is an examination of the total problem, of the entire structure; the input on the part of the Provincial Government, the input required after that by the municipalities, whether through a foundation levy or through a special levy, and the Member for Em er son pointed out very clearly that this is one of the major concerns, the extent of the special levy that the mu nicipalities or the local ratepayers then have to face. I can assure the members opposite that there is a study going on at this time.

It's an in ternal study to examine the Foundation Program in the light of today's requirements, in the light of today's costs, in the light of the uncontrollable costs which both the department faces and the school boards. face, and discover whether there is a means whereby the program can be made more flexible. I'm thinking of one area in particular.

I believe the MAST made the sug gestion last year - I think it was last year, perhaps it was two years ago - the suggestion that the grant formula, which today makes grants to six designated areas, and that rather than make it on the basis of six designated areas that there should be perhaps a bulking together of these areas to give the school boards a little more flexibility than they have now, because I don't doubt that if you're locked in in an area by a grant, the tendency is that since you can't use that money for any other purpose but that particular area, for instance administration or maintenance, then the tendency is probably to spend whatever money is available whether you really need it or not.

Whereas if the school boards had some flexibility perhaps they might decide that within their particular school division this particular year, given this flexibility in how they handle this money, they might decide to emphasize some other part of the program and feel free, and there fore feel free to spend money not on maintenance, perhaps it doesn't need it, or cut down per haps on administration and spend it in some other area where they feel it could be put to the best use for the school division and for the educational program they are providing.

I think this is one area that has to be looked at, and as I said, the department is presently studying it. Generally, I think you have to marshall all the facts that come into it in order to assure that the changes are the most effective, whatever changes we come up with are the most effective for the money spent, because I know that all honourable members recognize that the costs are high, that the input is very high, and I don't think they're questioning the expenditure itself as the assurance, the feeling they want to be assured that we are getting full value for the dollars spent and that is their concern.

I can assure them that this government is equally con cerned, and in the final analysis this is really in the best public interest to make sure that the dollar input is the most effective and is used in the most effective way for the program which we're going to derive from that dollar input. But in these matters I think you have to act very prudently. I think to act in a very pre cipitate manner, to say that it shall be done by the increasing of a percentage or the lowering of some other part of a formula, I don't think is going to achieve the desired end.

I think we have to certainly look at the total problem and then see where and in which way the matter can be most efficiently handled to try to achieve a goal which I'm sure everyone will agree with, and that is a more equitable method of paying for the costs of education and deriving the best pos sible program for the dollars spent. One of the things I personally am concerned with, and I hope there's no disagreement, is the whole question of federal participation in the field of education. We all recognize, and I think it was pointed out by the Member for Ste.

Rose earlier during the estimates, that the en tire nation benefits from the educational programs operated let's say in Manitoba, or any province for that matter but we're dealing with Manitoba, the entire country benefits from the educational input in Manitoba but unfortunately we cannot retain all of the people who are educated here; we lose them to other provinces. So when we're thinking in terms of education, I think frankly that there has to be a recognition on the national level of the expenditures within a province like Manitoba towards education.

The fact that we are benefitting not just Manitoba as such, we're benefitting the nation as a whole, we're enriching the nation as a whole, there has to be a recognition of this

756 September 16, 1969 (MR. MILLER cont•d. ) .. .. on the part of the national government, and hopefully that we can make the Federal Government, the national government realize this so that they enter into pro grams more than they have up to now, so that we in this province won't be handicapped and we won't be forced to perhaps pull back and reduce our input into education which would then put us at a disadvantage with the richer provinces such as B. c., Alberta or Ontario.

I think this is a matter of serious concern, because unless the province has the resources or has the as sistance from outside the province then there's no question, we have to compete with and make available to our people a standard of education equal to that of the richer provinces, and if we have to do that from within our own resources only, we can be faced with a very serious obstacle. So for this reason, Mr. Speaker, I feel that the resolution as it stands is not really the simple answer that ·may be suggested.

It goes beyond that and there has to be far more thought put into it than what has been done here, and it isn't a matter of just juggling figures around. but being part of a total study.

So I would move that the resolution proposed by the House Leader of the Liberal Party be amended as follows: By deleting the word "provincial" in the second line of the fourth paragraph; by deleting all the words after the word "Manitoba" in the first line of the fifth paragraph and insert the following: "continue its study of education costs with a view to evolving a more equitable system of financing education." -- seconded by the Minister of Agriculture, MR. SPEAKER presented the motion. MR. SPEAKER: The Honourable House Leader of the Liberal Party. MR . G. JOHNSTON: Will the speaker permit a question?

He stated in his speech that a study was being conducted. Could he tell us when the study was first instituted and when the re sults will be known and who is conducting the study? MR . MILLER: .•• was requested within about a week after I took office. The results of the study I hope will be made known to the House when we introduce our 197 0-71 budget. MR . G. JOHNSTON: Who is conducting the study? MR . MILLER: It is an inter-departmental study. MR . SPEAKER: The Honourable Member for Riel. MR . CRAIK: Mr.

Speaker, if I might comment on this resolution, it's very disappointing to see this sort of an amendment brought in to a resolution, this particular resolution that was brought in by the Member for Portage la Prairie, because the resolution as it stood prior to the amendment was actually not a resolution that could have been adopted with any difficulty and still have fit into the over-all program which the government may have wished to bring in.

Ce rtain ly it doesn't go anywhere near as far as previous resolutions brought in by the present Minister of Education, who at the last sitting of this House was going to have the government adopt 100 percent of the cost of the foundation or subterranean program. He was going to upgrade it into some other sort of program and go far beyond this. Now we find out that he wants time to study it and he's going to have to have a complete review.

In the face of this, the present government has cancelled out the plans of the provincial municipal Finance Structure Committee which was composed of school board members, mu nicipal people, government people. They've cancelled all this out and they've appointed an in ternal committee to look at it, and now he comes up with an amendment to this resolution that they look at it a little further. MR. MILLER: On a point of order, Mr. Speaker, the gentleman is jumping to a conclu sion when he said we've cancelled out. He doesn't know what we've cancelled out. This has nothing to do with any internal study.

He has no idea whether we've cancelled anything or not. MR . CRAIK: Well, perhaps the Minister of Education wasn't aware that the First Min ister, a month or two ago, gave indication that that particular committee, which was to look specifically at this, was not being carried forward, and now he informs us that he has an in ternal committee that are going to come up with the answers on this sort of thing. Surely what we don't need is another internal committee because the answers that he's looking for are so readily available he can find them in five minutes.

He knows what categories of grants can be combined together. He doesn't have to, if he wants to find out this information, go into a mas sive internal study to find it out. He can find it out immediately. In fact he knew before. He advised this House last spring what grants would be combined together so that school boards weren't attempting to spend every cent they could get in the four or five categories that existed in the present grant structure. Now he's suggesting that maybe these should be combined to gether so that they have more flexibility. It's easy to do. You can take two of them and put

September 16, 1969 757 (MR. CRAIK cont•d.) ... . them together and you've got your answer, but that's not the problem and he knows it's not the problem. The problem, pure. and simple, he knows the answer and he gave it to us here before. It just gives more money to the public school system. That's all there is to it.

Now as a matter of fact, the resolution of the Honourable Member for Portage would take three years to reduce the Foundation Program which is now 10. 8 mills to 0 mills, which means it's going to be reduced at roughly 3 1/2 mills per year on a residential qualification of taxation, of property taxation. And the costs of education are rising. The special levy we know has been rising at a rate which is greater than this. The average increase of mill rates last year was roughly five or six mills across the province.

So even the proposal made by the Honourable Member for Portage la Prairie is very modest and would in fact not hold the mill rate if changes weren't made on the second part of the resolution which upgraded the Foundation Program. We know that from experience, but the Minister is going to do an internal study. Well what we don't need now is an internal study; what we need is some of the forthright thinking that the Honour able Minister of Education exhibited when he was on the opposite side of the House, and all we get is an amendment to the resolution that sends it to the graveyard.

A very modest resolution that would have simply given a little bit of support to the public school system. It wouldn't have given the incentive to spend more; all it did was attempt to help them out and give the Minister the time that he would need to formulate his program. But rather than accept it he sends it to the graveyard, just like the other resolutions are being sent to the graveyard. A MEMBER: Just like you used to do. MR. CRAIK: No, Sir, we didn't. I'm glad you brought up that point.

When the Honour able Member for Inkster came in here with a resolution last year to change the qualifications for going on the school board for people living on Indian reserves, this matter had been under consideration and we immediately said: That's a good resolution, let's go for it; we're of like minds. We did it. Now the Minister can't say he's not of like mind because it's only a matter of months since he sat over here and he proposed resolutio ns that went far beyond what this is. As a matter of fact, the member then had the right answer. Nobody really disagreed with. him.

All you had to do was give them more money. Now he's got the money, why doesn't he vote for this resolution? What's he trying to send it, you know, out of the House for, which is exactly what he's trying to do. Now with respect to the resolution, the second part of the resolution is actually more im portant than the first part of it in terms of its benefits to the school system.

As a matter of fact, the first portion has a certain liability to it and that is that the Foundation Program did achieve a very very major aim and objective as far as education.was concerned. -- (Inter jection) -- I'm speaking on the amendment because it's very important that you have this in� formation in your future internal studies. Internal studies. Internal studies. This is what we call open government. You lock out the school boards; you lock out the municipalities and you do an internal study to give you an answer you can get in 10 minutes from any one of your staff.

But the Foundation Program did do a very valuable thing and it is important when you look at it. It's brought a very much higher degree of equity in mill rates, albeit the mill rates· may in fact still have been higher than most people wish them to be, higher than anybody in this House would like to see them. Despite that, it brought a high degree of equity to the mill rates across the province, and with the residential non-residential differential of 24 mills, what it effectively did was spread the product of property taxation across the province.

As a result of this, he's talking about six designated areas now, bringing in six designated areas. I don't know whether by this he's inferring that we're going to end up with six major school divisions in Manitoba or if he's going to -- but at any rate, exactly what the Foundation Pro gram did was to bring a degree of equity to all of these designated areas because it meant that in some areas the provincial government, through central revenue and through the Foundation levy, were paying 80 percent of the cost of school system and in others they were paying 30.

If you were living in the 30 area you certainly were in a position to say that the central govern ment wasn't paying enough; if you were living in one of the outlying areas where the assess ment base is low, very low, then you were in the position of realizing that the government had created a degree of equity in the school system, and the way it is done is through the Founda tion levy. There is one danger in the resolution as it was, that the Foundation levy, if it is abolished through a three year program to reduce it to zero, you lose the fruits of the differential levy

758 September 16, 1969 (MR. CRAIK cont'd. ) .... which you now have between res idential and co=ercial property. So for that reason, certainly the seco nd part of the res olution was more important, that is to upgrade the Foundation Program, to keep it within shooting distance of the actual costs of the sc hool division. But I repeat , Mr. Speaker, there is absolutely no reason for introducing this amendment to this particular resolution, and I would hope that the government on something as innocuous as some of these res olutions that they are amending, that they suddenly realize what they're doing.

They're going back to a practice which they accused previous governments of doing it, but the previous governments didn't even think of doing it on res olutions that were that innocuous. MR. SPEAKER: The Honourable Member for St. Boniface. MR. DESJARDINS: Mr. Speaker , the last speaker, the former Minister of Education- and he made quite sure that we all realized that he was the former Minister of Education - rose and said that he was ·very disappointed, very disappointed that the Minister would not grant some thing that waS so minor.

Well , I don't know why he should be so disappointed when he had a chance to do exactly this, because this motion was pres ented to him and his government not too many months ago. -- (Interjection) -- Oh no, you didn't do it. No , you didn't do it or it wouldn't be here now if it was the same motion, would it? The motion was made. Now, Mr. Speaker, why is the member so unfair . Why is he trying to misrepresent?

He 's complaining now, and the members of his party are complaining that this government is not going fast enough and they're not doing something, that this former government could not do in 11 years, they're not doing it in two months. Now it's quite clear what the Minister said. It's quite clear. Government made it quite clear that they consider this a special session to clean up the mess left by the former government - this is all - and then they m.ade it quite clear that they want to get down to business to bring in their own plans, their own programs .

I don't know why so many members from the other side insist on standing up and misrepres enting this. Those same members would be the first ones to cry, to cry and complain if the new government would act too fast. They would say look, they are not even in office , they haven't been in office m:ore than two months and there they go, they want to change anything. Is that responsible or are they giving us responsible government? I would commend the Minister of Education and the members of the governmen t for taking their time and not being driven in, not being forced to act too fast.

There is such a thing as looking at the question of priorities . Their Party is very clear on their intentions on this. They want to establish certain priority. The Minister has said that he doesn't want to be put in a box. The former Minister said himself that there would be something about the first part of the res olution that they would lose some benefit. And when the Minister is talking about an interdepartmental review and so on they are going to take everything into consideration to be able to pres ent their own program at their own next session.

This session is just cleaning up after the mess of the former government, or government that was afraid to act and that left 62 bills on the table. Mr. Speaker, I think that the Minister is doing the right thing, and again I think that the people of Manitoba are very pleased to see that this government will take their time; know where they're going; get the list of priorities and then bring in a program at their next session which will be the government's session.

This is just covering up, this sess ion here, for the unfinished business in order that Manitoba could go on until the next ses sion anyway because of the mess that the former government made. MR. SPEAKER: Are you ready for the question? MR. CRAIK: Mr. Speaker , on a point of order , the Honourable Member for St. Boniface suggested that this policy was not adhered to by the previous government. I want to assure him that it was, that the change the first .... MR. SPEAKER: May we hear the honourable member 's point of order ? MR.

CRAIK: Well, the point of order is that he said that it wasn't followed by the pre- vious government and it was. There was $10 million put into the local level. MR. DESJ ARDINS: .... everything he said. MR. CRAIK: Well, he made this statement. MR. SPEAKER: Ord er. Are you ready for the question? The Honourable Member for Emerson. MR. GABRIEL GIRARD (Emer son) : Mr . Speaker, I rise, not in defence of my former Minister of Education nor do I rise to make a speech that would be able to be called political; I

September 16, 1969 759 (MR. GffiARD cont •d. ) . . .. rise because I'm a little disappointed at the amendment to the resolu tion on behalf of the Minister of Education. I can understand his statement saying that this does require a lot of study, and I know that this res olution is really a far-reaching one. However, I think that we also should bear in mind that many municipalities in rural Manitoba were consider ing this res olution no doubt as a forthcoming bit of relief to a very aggravating problem that they are facing now.

There's little doubt in my mind that there are many farmers in Manitoba with some large plots of land that would welcome this resolution and they feel that the quicker the better. Now I understand, Mr . Speak er , that an internal study is being made, and really if that is so I cannot understand why the res olution would be changed, because in fact it was saying that it was simply urging the government to consider the advisability of making this study. I'm a little disappointed that the amendment was brought in. I would have preferred to have it the other way. MR. SPEAKER: Are you ready for the question?

The Honourable Member for La Verendrye . MR. BARKMAN: Mr. Speaker, I beg to move , seco nded by the Honourable Member for Assiniboia, that the debate be adjourned. MR. SPEAKER presented the motion. MR. BARKMAN: On a point, I guess of privilege , I have no objection if the honourable · member wished to speak. I'm sorry if. ... MR. SPEAKER: Are you ready for the question? MR. SPEAKER put the question and after a voice vote declared the motion carried. MR. SPEAKER: The proposed res olution of the Honourable Leader of the Official Opposi tion and the proposed motion of the Honourable Member for St.

Boniface in amendment thereto. The Honourable Member for St. Matthews. MR. WALLY JO HANNSON (St. Matthews) : Mr . Speaker , I ask leave of the House to let this matter stand. MR. SPEAKER: (Agreed. ) The proposed motion of the Honourable the House Leader of the Liberal Party. The Honourable the First Minister. A MEMBER: Mr . Speaker , that's the wrong motion you have. MR. SPEAKER: I'm sorry , I have the -- thank you very much for corre cting me. The proposed res olution of the Honourable Member for Churchill. The Honourable Minister of Parks and Recreation. HON.

PET ER BURTNIAK (Minister of Tourism and Recreation)(Dauphin): Mr . Speaker , I rise at this time to say a few words in respect of this resolution because of the fact that I notice that there are certain things in this res olution that I definitely agree with. One , that it. concerns parks and recr eation, tourism and so on, and also it deals with agriculture, which I know some thing about because I happen to repres ent the constituency which is predominantly an agricultural area, and as one who has been in the farming field for a number of years .

I understand from the remarks of the mover of the res olution under consideration, the Honourable Member for Churchill, that at least some of the proposals contained in this res olu tion have been considered by this House in the past years, but the results of such proposals have not been overly satisfactory. I have the privilege to represent, as I said before, basically a farming constituency, and if for no other reason than my farming background interest, I would find it very easy to say that the Port of Churchill could be utilized to a greater extent if for nothing more than the movement of additional grain.

There rec ently has been a general increase in the awareness of the importance and the potential of the north. This awareness has been focused on such past mining developments as the International Nickel Company and the Sherritt Gordon Mines at Thompson and Lynn Lake , and also by the current mineral and petroleum resource , exploratory and development work that has gone on in the Arctic region.

There is also the oil drilling exploration work being undertaken in the offshore area of Hudson Bay, and the Port of Churchill can surely grow with the north, I feel, as it is uniquely situated to serve as a supply and centre point for northern development. If the shipping season can be extended, and at least some experts feel that this is feasible, then there seems to be no good reason why the Port of Churchill should not gain a proportionate greater share of western Canada's export and im port shipping trade.

The availability of insurance on shipping, except for a very short season, has been a major reason why the shipping season has not been extended. The Premier has already

760 September 16, 1969 (MR. BURTNIAK cont'd. ). , . . in dicated his intention of making every effort to do something positive to correct these restrictions to greater use of the Port of Churchill facilities. I would say that the world is watching the progress of the super tanker Manhattan through the Arctic ice, and if this shipping venture is succes sful it should serve to open a few eyes to the possibilities of Churchill's shipping potential.

I rec all rec ently in a debate a few days ago on the Ombudsman Bill that the Honourable Member for Churchill said that opposing the bill would be like opposing motherhood, I believe is the words that he used, and I think he thought-- it was the Honourable Member for Churchill who said this: "I suppose the support of the development of Churchill is also somewhat similar to the support of motherhood, in that everyone is for the deve lopment of that port. The major point has been made in that nothing seems to be done about it. " Well, Mr.

Speaker , I would suggest that this government has already taken some positive steps to get the ball rolling on this matter , and I'm sure that if given the will and the support of the people of this province and the co-operation of the federal agencies and authorities who are involved, the stagnation that has surrounded Churchill for the past few years will give way to some positive development.

The rece nt "Operation Manitoba" tour of the north by prominent members of the business community was organized and undertaken to acquaint industry with the ec onomic advantages and the potential of the Port of Churchill, the increased use of which could result in ec onomic advantage both to the port co=unity itself and the industry in the province in general.

I'm sure that even the Honourable Member for Ch urchill does not visualize this community becoming the tourist area of this province in the near future, but I can agree with him that there is a tourist potential in Churchill that can be developed to very good advantage. Ev en before my honourable friend from Churchill brought in this res olution, this department was participating in an interdepartmental task force which was formed to examine development opportunities at Churchill.

The purpose of this department's participation in this effort was to assess the recre ational and tourist potential of the community of Churchill and ultimately to assist the community in the development of this potential. As a result of this study this department plans to undertake the construction and operation of a Tourist Visitor and Information Centre in that area. The Premier announced this in a rec ent speech at Churchill during Operation Manitoba. I wish to expand briefly on the type of facility that is being considered.

The resolution that has been tabled calls for, among other things, the establishment of a Tourist Information Centre. We plan to establish such an office, but our thoughts on the pos sibilities of this facility run a little wider than the usual type tourist informationcentre.

I be lieve it is unrealistic to expect that with only air and rail access and without many of the natural attractions of urban developments that lure the average tourist, that large numbers of what we might call average tourists will wish to visit Churchill; but there is high interest, I might say, from a select group of visitors who come north with an interest or curiosity about the geography and the natural human history of the tundra and the arctic, those with the urge to see North America's only real ocean port not located on either the Atlantic or the Pacific .

Because of the foregoing considerations the department is studying the possibility of at tempting a somewhat different type of Tourist Reception Office to cater to the somewhat different type tourist that visits the Port of Churchill. We are looking at the possibility of constructing, in conjunction with the Tourist Reception Information Centre, an interpretive centre which would provide a focal point for interpreting the Churchill region to the visitors.

Displays, exhibits, including graphic and audio-visual material could serve to explain in depth the natural history of that particular region , which after all provided the earliest access from the Old World to western Canada. Guided tours could be organized using local people as well as university students having a basic understanding of biology. These tours would include both hiking and photographic tours , possibly including water excursions to photograph the Beluga whales in the Churchill River estuary.

Tours would also include visits to the old Fort Prince of Wales in the lower peninsula area which has been so significant in the history of Hudson Bay discovery and settlement. For those most interested in the human history of the region an excursion may also be organized to include a trip to York Factory at the mouth of the Hays to the south. This then very briefly, Mr . Speaker , is what we are already planning to undertake with regard to the development of the tourist potential at Churchill.

I cannot promise at this time, as I am sure you will understand , that all of what I've outlined will materialize, because after all at this point they are only ideas which naturally require a lot of study, planning and costing

September 16, 1969 761 (MR. BURTNIAK con t'd. ) .... in order to assess the feasibility . Such facilities as we have in mind will also take some time to develop , so even if feasible, I would sugge st, I would not wish to leave the impression that such a centre would appear in Churchill overnight. However , de pending on the results of our study, we will proceed with the physical development with what our studies recommend to us .

As an initial step, it is my intention to place in the 19 70-1971 esti mates of this department, sufficient funds to undertake background research of the natural, historic and economic aspects of Churchill area as related to tourism and preparation for the possible development of an interpretive centre as well as a reception and information office. MR. SPEAKER: Are you ready for the question ? The question's been called. The Honour able Member for Rhineland. MR. FROESE: Mr . Speaker , I think I should add a few words to the resolution that is be fore us .

I think the resolution is important in that we should try and do more than what we are doing in Manitoba to build the Port of Churchill and develop it and to encourage more shipping. We know that the eastern interests play a large

part in not having it developed because there's not sufficient moneys coming forward from Ottawa to develop it and also to extend the season. As has been pointed out by the Member for Churchill there are a number of deterrents at the pres ent time that should be removed before the shipping season can be extended. Matters of insuranc e were raised. Then too, I feel that we should take an example from what B.

C. has done because they were in, I should probably not say a similar situation, but nevertheless they were in a situation where their ports were not rece iving the attention, facilities were deteriorat ing and they were not modernized as they should be because of the large amount of coal that is now going to their ports and being shipped to other countries, other raw products are being shipped and so they are modernizing their facilities .

The provincial government had to take action in the first place in building Roberts Banks and this is going to be a modern port so that they will have up-to-date facilities and I think we should take a lesson and do likewise. I think we should, as a province, take the matter in hand and make something out of Churchill . We as members .have nowvisited Churchill two or three times . And what do we see when we go down there ? Every succeeding time we go, there seems to be no improvement whatever .

In fact, I think the situation is going downward instead of improving and this being our only port I think we should be more enthusiastic about it and be prepared to spend some moneys on this very port on the Hudson's Bay. I feel we should take the initiative here in Manitoba as a government and then request the Federal Government to come and help or step in as well , because this was the case in B. C. - after the provincial government went into action then the Fe deral Government started moving, but only after the B. C. government did something on their own.

I feel that this is what we'll have to do in Manitoba, otherwise we will see no action. MR. SPEAKER: The Honourable Member for Churchill. MR. BEARD : If nobody else wants to enter into the debate, I'd like to close it with a few words. First of all, I certainly would like to thank the Honourable Minister for his encourage ment in respect to a new look at the tourist part of this resolution. I did feel assured in my own mind, Mr.

Speaker, that with the Fi rst Minister's speech, that there would be something forth coming and I thank him for that assurance; Certainly it gives the people some hope that they may build around this trade. In fact I can assure the First Minister that already there has been anticipated approval of this growth by the private industry in Churchill itself in that both hotels there have expanded their room service, so they at least are optimistic along with government that these new things will come about.

But I would like to spend a minute and go on from where the Member of Rhineland left off because I believe he hit at the real nuts and bolts of the problem of Port Churchill itself; and inasmuch as it is important to the people of Churchill in respect to the tourism part, it certainly is from the industrial development area that we must look for the real impact to this area.

As I pointed out this afternoon, with 12 days blackout at Port Churchill out of 80- some-odd days' shipping, is something that brings concern to all people -- and granted somebody inj ected and said "Well, don't you know the problem in Canada, we can't sell wheat, et c. " -- and I know, I know just as well as the past Minister of Agriculture that this is a problem and I said that I think there should be some ways and means of overcoming this, and one of them of course is additional storage overseas to the markets where we feel that grain shouldbe made available for use later on in the season.

But I think that also this 12 days without ships in the harbour points out the fact that the other part of the resolution should have been given some consideration in that it was asking for

762 September 16, 1969 (MR. BEARD cont'd. ) ...• a centre to supply information to sec ure large volumes of industrial trade and assure Port Churchill of services now used by competitive harbours in Eastern Canada. And that is the poin t that I was trying to get across to this Hous e, that apparently we can no longer depend in Churchill on the grain trade.

It has never proven to be a success in the past and with the development of the north I think that we should have a complementary program in Churchill to see to it that the services at least are there to provide information to industrial companies and to indust ries throughout the whole of the world, to say, Here is a port available to you to ship whatever it may be that will be used in the industrial development of northern Canada.

It is the logical place for this equipment to end up at and this is the logical place in which we should be promoting, and of course since Port Churchill is still in Manit oba, then the Manitoba Government are the logical people to provide a service such as an Information Centre at Port Churchill to develop the expertise, right at Port Churchill , not here in Winnipeg but at Port Churchill , to provide information to industry throughout the world, whether it be shipping or whether it be manufacturing or what it may be; but they can give them the prices , they can tell them the advantages of using that port and they can promote that port from there and they have a Hudson Bay Route Asso ciation which is available to give them not only their sugg estions , ass istance in promoting that area.

The Hudson Bay Route Associa tion is behind this type of a service centre at the Port and while I congratulate and thank the government for their picking up the first part or one part of the resolution , I hope that they wouldn't forget the importance of a centre where they can offer industry competitive service to that that is offered in other areas in Canada in respect to use of port. And with those few words , I thank you very much, Mr. Speaker, for the time. MR. SPEAKER presented the motion and after a voice vote declared the motion carried. . . . . . continued on next page

September 16, 1969 763 MR. SPEAKER: The proposed res olution of the Honourable House Leader of the Liberal Party. The Honourable First Minister. MR. SCHREYER: Mr. Speaker , I am grateful for the opportunity to speak to this resolu tion that is moved by the Honourable Member for Portage la Prairie. I'm grateful because it gives me an opportunity to clarify a matter which has bee n much talked about in recent weeks, in which there is also considerable misunderstanding.

And the resolution that has been moved by the Honourable Member is proof that there has been misunderstanding as to what I said or what I meant to say when I was at this press conference in Vancouver and which was then quoted with great flourish and great relish by the newspapers in British Columbia and here.

I believe that I can help to put this whole matter in its proper context, which is not a very sensational one, unfortunately, for those who like sensation, but I can help to put this in its full context by quoting certain statements made by other Canadians in recent weeks and in the past couple of years on this same subject of political party financing and elec tion campaign expense funding. I believe that it would be useful to first of all make reference to an

article that appeared in the Winnipeg Free Press written by Bruce Hutchison who is a well-known journalist in our country. The

article appeared in the Winnipeg Free Press on the 5th of September, just a couple of weeks ago, under the title "What Price Democracy?" And I want to quote it all to put it on the re cord -- a corr ection Mr. Speaker , I want to quote a number of paragraphs of it, and I quote: Bruce Hutchison: "A humble friend of mine, a fellow British Columbian, holds a few shares in a giant Canadian business corporation.

My friend, an innocent sort of person, believes that the money invested in the corporation shares is his own and should be used to his ad vantage, but at election time he tells me , some of the money is not used to the advantage as he judges it to be. The corporation gives campaign funds to one political party, but not to the other. It spends his money where he does not want it spent and in his opinion against the broad interests of society. " And I might pau.se to digress, Mr.

Speaker , that this shareholder has presumably no opportunity to opt out, he has no opportunity to indicate to his corporation, the corporation in which he holds shares, that ne does not agree with the approach of the party to which the corporation is giving campaign moneys, that he would like his part of it deducted or not for warded; he doesn't have that opportunity such as exists for those who are members of a trade union. However , Mr. Speaker, I desis t from any further digression and return to the

article written by Mr. Hutchison, and I continue: "Whether he is right or wrong about the interests of society need not concern us here. He is right, howe ver , in thinking that we have a queer way of conducting ele ctions when share holders are forced indirectly and invisibly to finance political parties that they oppose. Under the pres ent system there is no escape for the shareholder so long as he remains a Shareholde r, his own money is spent as he may not want it spent for what he may consider evil purposes.

Of course, he can es cape the moral dilemma by selling his shares perhaps at a loss, but there is no es cape for society as a whole.

It is locked into a secret arrangement, and I pause to empha size it is locked into a secret arrangement by which corporations are regularly Shaken down, " -- those aren't my words, those are the words of a journalist who has watched the political scene in Canada for a quarter century and more -- "it is locked into a secret arrangement by which corporations are regularly shaken down against their will and the political party is then beholden to its benefactors or victims whichever you would choose to call them.

Both sides to the transaction re sent it, but what are they to do when the public refuses to face the cost of elec tions openly and honestly? That cost as we have seen it in British Columbia of late is high, and like most costs getting higher. For some odd reason nevertheless the public seems to imagine that political parties unlike any other living organism shouldn't need nourishment at all, or at least not much. Apparently the political parties can live on air or in the case of Marie Antoinette , French peasants, they can eat cake.

The party is in fact widely regarded as a kind of necessary evil to be tolerated but not re spected and assuredly not financed by the self respec ting voter. Secure in his own private morality the voter seldom gives any party a dollar and yet he wonders why it must get its money through the corporations' back door. " "Our rece nt British Columbia election was a classic example of the system. As everyone knows the Social Credit Party had all the campaign funds it could possibly spend and they did not come from any fairy godmother.

In add ition, the Bennett government spent public rev enue to buy vast advertising space and ostensibly explain various official regulations to the ignorant citizenry, who everyone knew that it was merely praising its own achievements in asking for votes; it was brainwashing the voter with his own tax money. No one can say that the system

764 September 16, 1969 (MR. SCHR EYER cont'd) ... .. is fair or democratic when one party has unlimited sinews of war, that is to say finances, and others are denied them. No one can doubt that the party receiv ing these lavish gifts is obligated to the givers or that the givers will hand on their cost to the public by one means or another. Do not ask for whom the cash register rings; it rings for you and me; " Mr. Speaker , I think that requires -- it's so important that it requires repetition, becau se I certainly concur with this opinion expressed here so well by Mr.

Hutchison; I certainly concur with this sentence that "no one can doubt that the party receiving these lavish gifts is obligated to the givers. " And I carry on quoting this article: "Now I happen to think that Ca nadian politicans are honest above the average of most nations , far more honest than they were in my youth. They are, however , equall y hypocritical in trying to pretend that the democratic process can be financed by anyone but the people themselves and that the corporations actually financing it now expect nothing in return beyond the spiritual reward of sheer patriotism.

If these repulsive customs -- " and if it sounds like a harsh adjective I repeat it isn't mine, but I agree with its use. "If these repulsive customs, that is to say the custom we have been following with respect to party financing, are to be changed we must agree among ourselves that political cam paigns , the final right to choose, are the very core and essence of democracy , that political parties are a necessary part of this process and that they cannot operate in the age of mass communi cation without money.

Certainly they do not require all the money that a ruling party can get from its business friends by blandishment, promise or threat. " It's interesting, if I may digress for a moment, Mr. Speaker , it's interesting to note that this long-time journalist and observer of the Canadian political scene should write that kind of sentence, "that parties do not require all of the money that a ruling party can get from its business friends by blandishment, promise or threat. " And "threat" is pretty harsh language.

I go on -- "If democracy is worth its price then its first charge surely should be levied by a known and authorized formula on its beneficiaries, the people as a whole. Ca mpaign expenses for legitimate parties of all stripe should be paid out of taxes and taken from no other source. Those who break the law and get money from other sources should be put in jail. This may sound like a radical notion but it was proposed more than 50 years ago by no one less than Sir Cl ifford Sifton, the most practical Canadian politician of his time." .While pausing to let those words sink in, Mr.

Speaker , I do say that I endorse the spirit in which they were written and I endorse and I accept the logic of the argument , and it is precisely that kind of context that I was speaking in when I was being interviewed at this press conference in Vancouver. I did not use words like "threat" , but I did use the word "kicked back" meaning that I was satisfied as Mr. Hutchison obviously is, that there are kinds of arrangements possible by which ruling parties obtain funds. But I want to make it clear, Mr.

Speaker , that at no time did I put my remarks in the context that what had been going on was illegal; in fact I said so the first day I was in the House after that particular episode or incident when I sa id that I did not regard the kind of fund rais ing activity -- Mr . Hutchi son calls it "repuslive ," I would choose to call it "undesira ble" -- I did not say it was illegal, I said it was undesira ble.

The Honourable Member for Portage la Prairie was moving this motion calling for emergency debate or investigation, he was talking about illegal practice s, and I said -- and this can be checked in Hansard -- that I regarded the tradition or cus tom or practice with respect to fund rais ing as undesirable, unethical even in many instances -- I did not suggest there was anything illegal. Therefore it follows, Mr. Speaker, that I could not have been referring to any pre vious administration in this province as hav ing recei ved monies by illegal fund raising practices.

What became ludicrous is that there seemed to be so much concentra tion on the word "kic kback" that complete sight. was lost of the whole context of this discussi on we had, this press conference , about the phenomena, about the way in which political parties in our time go about rais ing money. In case it needs repetition, I've already said in this House that I did not have it in mind to accuse my predec essor of some kind of illegal practice; far from it. Nor by extension did I hav e it in mind to apply to his predec essor, Duff Roblin, nor to Mr. Ca mpbell, nor to Mr. Garso n , nor to Mr.

Bracken , nor to Mr. Norris, nor to Mr. Roblin - Sir Rodmond Roblin. I didn' t have him in mind either. Nor to Mr. Hugh John McD onald or Mr. Greenway, or anyone in particular. That does not mean, Mr. Speaker, that we can afford to be satisfied with some of the practices and customs that prevail from decades long ago as to how parties go about

September 16, 1969 765 (MR. SCHR EYER cont'd) .. ... raisi ng funds. Bruce Hutchison I think has summarized the problem very well. But in ca se you're tempted to say that thi s is the view of just one man, even though he be a long time on the scene watching political parties and politics, I want to quote from an editorial in the Montreal Star of Friday , September 5th, happening to be the same day that Mr. Hutchiso n's

article appeared in the Free Press, and I quote from the Montreal Star: "Mr. Schreyer did serve, however, to focus attention on the threat to democracy which is posed by our present method of financing political parties. No one pretends that the liberals and conservatives pay for their acti vities by pass ing the hat at public meetings. Most of their funds come in the form of substantial contributions from business firms. Some of these contributions may represent nothing more than an enlightened sense of civic duty on the pa rt of the contributors. " And I don't deny that, Mr. Speaker.

I'm sure a good deal of money is ra ised in this well-meaning , enlightened way. "But there are few businesses nowadays which could not benefit from the kindly attentions of government and the bagmen" -- Who are those, Mr. Speaker, these bagmen that we hear about ? If there are bagmen it follows that bag men must be doing something; and what are they doing? They're going around picking up party funds . And what is the way in which they operate.

Well not having been on the executive of either of the liberal or conservative pa rties I cannot say that I'm in a good position to describe in any detail just what these bagmen do; but I venture to say, and I think it would be a pretty good guess, Mr. Speaker; that these bagmen , they have a certain style of operation, very subtle, no threats. Mr. Hutchison said that there may be threats. I wouldn't say that there are threats but I would say that there are blandish ments; I would say that there are promises; I would say there are subtle hints dropped. All to what end ?

To let the bodies corporate, to let the corporations and companies know, to let their vice presidents or trea surers know that if they don't come across with a dollar for the party well then they know that they're not really their friends . And what does that mean ? Obviously many people, not just I, are concerned about the very existence of bagmen and the way in which they go about rai sing money for the old parties.

"There are few businesses nowadays which could not benefit from the kindly attention of government and the bagmen who solicit the contributions would be less than human if they did not at times hint that the gift should represent thanks for favours received. " Now I wouldn't dare to say that, but the Montreal Star , a paper which has been in publication for perhaps 200 years, certainly 10 0, respectable paper of the ea stern establishment, it says this. So I think we'll just lea v.e that on the record, Mr. Speaker.

And I go on: "The whole busine ss of party financing is going to remain a source of suspicion as long as the parties persist in treating fund rais ing as a dirty secret. Since neither of the old parties is likely to risk frightening off contributors by opening its books, the only way to expose the busin ess to public gaze is to pass a law requiring it. " That's exactly what I think could be done, Mr. Speaker , and that is exactly what I ventured to say at this press con- ference.

But that was ignored in all of the newspaper coverage and all that was referred to was the use of the word "kickbacks" when in fact I didn't use the word kickbacks as such , but anyway ... To quote the Montreal Star further: "Just such a step was urged by the non-pa rtisan committee which was appointed by the Pear son government to study election expenses, " -- and I have one of the two volumes here, Mr.

Speaker, the so-called Barbeau report, and it makes for very interesting reading , because acc ording to the findings of the gentlemen who made up this study committee, it would seem that there are quite a number of abuses existing in the way in which parties go about rais ing funds -- nationwide. This is another point which I made during this press conference which somehow did not receive any coverage.

I did not suggest that it was the Government of Manitoba, my predecessors' government that had been guilty of these undesirable practices, In fact, I would go so far as to say that I have no reason to think that the previous two administrations, or three or four or five in Manitoba have not been above the national avera ge in terms of scrupulousne ss and fairness in campaign fund ra ising. In this particular press conference I did not make mention of the Prov ince of Manitoba in this connection at all. I was talking about a general practice that was of long standing in my view and apparently in the view of Mr.

Hutchison and the Montreal Star , a practice undesirable of long standing across the whole country, IJ.ot here in Manitoba alone. In fact here perhaps, less than another jurisdiction. That doesn't mea n that we should not want to take corrective steps here, beca use I believe that abuse can creep up here and probably

766 September 16, 1969 (MR . SCHR EYER cont'd) ...•. has, very likely has, not so much because of the deliberate efforts of previous administrations to resort to these undesirable practices but because these undesirable practices have existed for so long, they were there when administrations came to office; and it is in that kind of situa tion that we found ourselves when we came to office here. We did not go out looking for new ways of raising funds; we almost tripped across it; in fact we did stumble across it.

I did not deduce from that particular incident, this telephone call, that this was a widespread practice here, that the whole body politic here was rotten with it. I didn't suggest that at all. But I did and I do believe that that particular incident was. the manifestation of a wider practice; no wider .here I might say than what I believe in any other province. In fact I do believe that Manitoba has not had for the past 50 years any particularly worse a record, in fact I would say a better record in this connection than many other provinces. However - I go on.

"This federal non-partisan committee appointed by the Federal Government in 1964 , v!hlch reported in 196 6 , called for full and precise disclosure of the sources of party funds , govern ment grants to help electioD candidates meet some of their costs , a limit on election advertising and tax policies to encourage parties to rely on a lot of small contributions rather than a few big ones. And, Mr. Speaker, that is the whole heart of the matter.

Are political parties going to be financed by means of raising money from a whole lot of people each giving a small amount, or are they going to be financed by sending bagmen around to a few select places to pick up a few hundred or a few thousand or tens of thousands of dollars at a crack? If we make reforms, this is the key part. No political party can afford to take contributions in large amounts from few sour ces, because if it does, it is not a democratica lly-oriented party but is rather very likely to be in the pocket of those few who give a lot. · Now this report I'm referring to, Mr.

Speaker, that was three years ago, and the com mittee's report has been ignored ever since. There were signs of action last June , that is to say June of ' 68, when Do nald McD onald, President of the Privy Council in Otta wa, announced that the government Committee on Privileges and Elections would embark on a general study of election law. At that time he promised that within a week a special committee would be established to deal specifically with election financing.

Parliament adjourned for the summer holiday without establishing that committee and it appears now that the government is not in any rush to get into action. I do think that if there's not going to be any action at the federal level there is not likely to be any action at all, unless perhaps here in the Province of Manitoba, and that is why I sincerely hope that my colleagues and those on the other side of the House , who share with some of their counterparts in Otta wa a desire to get moving finally, to get moving with more tangible reform of political party campaign funds , to get some reform on that.

Only here in Manitoba is there any hope now unle ss the Federal Go vernment gets mo ving. A year ago Prime Minister Trudeau promised that election expenses would be a top priority is sue in the new Parliament. "We hope Mr. Tru deau is not simply the latest in a long line of politicians whose devotion to reform in this area never gets beyond lip service.

" Well, that is an editorial comment from the Montreal Star , and again I think it is an accurate enough analysis of the kind of problem that Canadian political parties face, an analysis of the kind of undesirable attitudes and practices that have been going on, and also it is accurate , in my opinion, in its proposing of what can be done to clean it up. These two editorials, plus the Barbeau Report, make reference to the existence of abuses.

In fact the word "abuses" appears a number of times in the Barbeau Report whenever it makes reference to the way in which the parties go about raising funds and us ing certain people to go around raising funds for them.

And the Barbeau Report - unfortunately I can't find the page reference now but I can paraphrase it , in fact I can attempt to quote it word for word that one of the recommendations says that "the process of auditing and inspection, if it is to be legislated into law with respect to political party fund-raising, the process of auditing and inspection can have a cleansing effect on the abuses which exist. " Sa in other words , Mr. Speaker, in the opinion of the Commission, there are abuses. Mr.

Hut chison, the Montreal Star , have given some examples of the kinds of abuses they think exist and so have I, and we're not very far apart in our analysis as to what kind of abuses these might be. I just want to give some indication to honourable members who were the members of this Barbeau Commis sion on election expenses and party financing. Mr. Barbeau , the Chairman; Mr. Gordon Dr yden; Mr. Arthur R. Smith, I believe the one that was M. P. for Calgary south at one time; M. J. Coldwell and Professor Norman Ward; and I think that these men all are

September 16, 1969 767 (MR. SCHREYER cont'd) .. .• . the kind who would make a very thorough and dispassi onate study of the problem. Lest you think that there have never been any examples come to light of these abuses that we all have been referring to, I want to quote , put on the record an

article which appeared in the Winnipeg Tribune of January 17th, and its headlines, although headlines I find to my great sorrow can be greatly misle ading - perhaps I won't even rea d the hea dline but I'l l rea d the article. Well, in fairness, it must be sa id that headlines can give men in politics hea rtburn. "The case" - and this is a Canadian Press story - "The case of the Montreal construction firm that admitted giving $30 0, 000 to political parties •to obtain contracts' surfaced in the Commons Monday.

Re venue Minister Benson said that the details of the political contributions 'a re of no concern' to his department since they were not cla imed as income tax deductions. " He wasn't concerned about the ethics of it. Perhaps it wasn't a direct viola tion of the Income Tax Act so his attitude was let sleeping dogs lie. And I must sa y that after my experience of the past two months I might be more inclined now than I was then to let sleeping dogs lie. Anyway, I will ha ve to rea d parts that perhaps aren't that rele vant in order to keep it in context. "Mr.

Benson added that the amount was not paid to 'a person lia ble to pay tax. ' In reply to a series of written questions by Andrew Brewin, Member of Parl iament for Toronto Greenwood, the Minister said he 'does not have the details requested concerning federal con tracts awarded to H. J. O'Co nnell Limited. ' Mr. Brewin's questions arose from a November 2nd judgment by the Ta x Appeal Boa rd involving the 01Co nnell firm.

The judgment mentioned in pass ing that" - and this must re ally be emphas ized, that this information comes out of a court judgment - "the judgment mentioned in pas sing that an official of the company tes tified that an amount of $30 0 ,.824. 00 was deducted from the firm's statement of surplus under the heading 'Pro motion'. Asked what this promotion involved in cross- examination, the official replied that the expense had been incurred 'for solicited contributions made to both political

part ies, either provincial or federal in order to obtain contracts '. " Both parties at both levels. "Mea nwhile, the Canadian Consumer Protest Associa tion, in a brief today to Pa rl iament's Consumer Prices Committee" - and then the art icle goes on to refer to another subjec t matter - Consumer Prices. I could add, Mr. Spea ker, that if consum ers are worried about rising prices, perhaps one reason has to do with the way in which corporations use surplus cas h to lard the trea sury of certain political parties in this country. Mr.

Speaker , I don't want to be vindictive about this whole matter , except I do re ally believ e that at this point in time it should be possible to obtain the co-opera tion of all political parti es to want to do something tangible , to want to do something concrete to rid our political party system of some of these abuses in fund-raising that have persis ted over the years. Pa rties should want to co-operate to bring in reforming legisla tion that will not make it pas :.. sible for bagmen to commit parties and to blandish individuals to contribute to

part ies, espe cially when they are in power beca use it might be in their corporate interest to donate to parties when they're in power. I have here , Mr. Speaker , a transcript, word for word, of exactly that which I did say at this press conference ·in Victoria and I think that it merits rea ding just a couple of para graphs.

The reporter asked me and I quote: "Tal king of ca mpaign funds though, have you taken a position on campaign funds, because we don't rea lly know in this province what comes from where and to whom ?" To which I replied: "Well, I would very much like to introduce legisla tion at the next ses sion of the House in Manitoba to bring this business of ca mpaign contributions out in the open for once and for all. " Am I making a statement here which cannot be supported by other Canadians? I mean, am I saying something that Bruce Hutchison or the Montreal Star would not want to concur with?

Obviously they hav e said words to the very same effect. And I carry on: "You know, it is ironic that those who complain about 15 or 18 people coming in to help from another province probably are fighting el ections ba sed on ca mpaign slush funds running into hundreds of thousands and they won't tell people where this money comes from.

" And I carry on: "I might add that I really do believe that citizens should want now to bring press ure to bear on government to reveal, to hav e mandatory legisla tion that will require complete revela tion of campaign funds , how much and who' s paying what , because after two short months in office I am convinced that parties who happen to be in power at the federal level or the prov incial level" - you notice I'm not mentioning Manitoba, not singling Manitoba out because if I have to say it a third time, I repeat that Manitoba' s record in this respect is, if anything, better than most other provinces in this country.

"I am convinced

768 September 16, 1969 (MR. SCHREYER cont'd) ....• that parties who happen to be in power at the fed eral level or the provincial level are getting an awful lot in the way of campaign contributions sub rosa, clandestinely and oftentimes not in the public interest, " I mean an architect who calls up and says "Where do I-s end thefi ve percent?" And you say, "What five perc ent?" "Well, the five percent.

" Apparently the practice has been fol lowed, and I'm surprised that anyone should have the audacity to say, "Well, what• s this ?" Men who have lived with a system for years and years all of a sudden behave like vestal virgins. Never heard of it. Never heard of it! Well, perhaps they haven't. But obviously Bruce Hutchison knows of it; obviously editorial people on the Montreal Star know about it; obviously Professors Ward and M. J. Coldwell and Art Smith, ·Pr ofessor Barbeau, they know about abuses. But here , shock and surprise that I had charged - and what did I charge ?

That some thing illegal had taken place ? I said nothing of the kind. But I do believe , Mr. Speaker , that while what I was referring to was not illegal - I never said it was � nevertheless, we have had sufficient indication to believe that it has been persis tent enough over time and undesirable to the extent that we should want to do something about it, to inform ourselv es fully first of all , to inform ourselv es fully as to the facts, and then if ·we come to the same conclusions as the Barbeau Commission, to start drafting legislation.

So to that end we should want to appoint a committee, a committee of honourable members of this House , to look into this entire matter in much the same way as the Federal Government saw fit to appoint a committee. Only in this case we shall follow up the recommendations of the com mittee for action with actual legislation. Therefore, Mr .

Speaker , I move , seconded by the Honourable Minister of Finance, that the resolution of the Honourable Member for Portage la Prairie be amended by deleting all of the words after the word "whereas" in the first sentence and substituting the following: the cost of ele ctions for political parties and their candidates for public office is increasing;

Whereas it is es sential under our democratic system of government that there should be full and plain disc losure about the sources of the funds by which election expenses are defrayed and about the practices followed in raising such funds by groups such as corporations and trade unions;

Whereas it is ess enti al and logical that the financial affairs of public parties should be public knowledge; Be It Therefore Resol ved that the Standing Committee on Privileges and Elections , keep ing in mind provis ions in the Act, being

Chapter 68 of the Revi sed Statutes of Manitoba, enquire into and rep ort upon desirable and practical measures to limit and control provincial election expenditures in the light of our Manitoba requirements and of the experience in other jurisdic tions, and that the report of the Committee on Election Expenses, Canada 1966, be referred to the above named committee for study; and Be It Further Re solved that the co mmittee enquire into and report on all matters pertain ing to the conduct of elections in Manitoba as pres ently contained in The Manitoba Elections Act. MR. G.

JOHNSTON: The amendment to that resol ution m:ikes it similar if not exact to the re solution on Page 11 standing in the name of the First Minister, and I believe that this is not customary to have two res olutions on the same subject on the Order Paper. MR. SCHREYER: We drafted a res olution to stand on its own because we understood , I suppose incorrectly, that the Honourable Member for Portage la Prairie would not be proceed ing with any resolution until the government had moved its resol ution.

But then when the Member for Portage la Prairie decided to proceed with his resolution and not wait, then we felt that that being the case we would jus t as soon deal with the matter by amendment to his res olution and had really no intention then in that case , if it's in order , to proceed with our original res olution. MR. SPEAKER: I wish to thank the honourable member for the comment on the admis sibility of the amendment and I would like to take it under advisement and give my decision thereon when this matter next appears on the Order Paper.

The adjourned debate on the proposed res olution of the Honourable Member for Sturgeon Creek. The Honourable Member for Kildonan. MR. PE TER FOX (Kildonan): With the indulgence of the House , Mr. Speaker, may we have this matter stand? MR. SPEA KER: (A greed. ) The proposed resolution of the Honourable Member for Riel. The Honourable Member for Logan.

September 16, 1969 769 :MR . WILLIAM JENKINS (Logan): Mr. Speaker, may I have leave of the House to let this matter stand. However, I have no objection if any other member wishes to speak. :MR. SPEAKER: The Honourable Member for Elmwood. :MR. RUSSELL DOERN (E lmwood): Thank you , Mr. Speaker. I listened with some interest to the comments last Friday from members of the Oppos ition in regard to this resolu tion which purports to, in effect, admonish unions for the practice they have taken in regard to political fund-raising and to in effect restrict them to a certain kind of donation.

I think there's quite a difference between the practises followed by trade unions in terms of making political contributions and in the kind of practices that are carried on by corporations. Some of us have tried to get the opposition to either clarify the distinction or recognize the distinction, because certain members opposite apparently feel that the practices followed in one arena are acc ept able and the practices in another are not.

I'm not sure whether members who spoke or participated in the debate last day are aware of the general practice, but I have had it explained a number of times and I think that it strikes me as being unque stionably democratic ; namely, that if members of a union wish to contribute to a political party a procedure is adopted as follows. First and foremost the local makes the deci sion as to whether or not the union will affiliate in terms of major contributions to a politi cal party, and it seems that there are no exceptions that I know of that the political party in question is the New De mocratic Party.

So the first decision taken by the local , which is the basic unit of the large union, is to whether or not they should in fact contribute. Then if the answer is positive, the second step is to question whether or not members should opt-in or opt-out. So a decisi on is made. In some cases it is an opt-in item; namely that all those who wish to jo in may join but they must in fact opt-in. In the. seco nd instance all members are des ignated as contributing and only those who wish to opt-out have to go through a certain procedure, otherwise they are automatically in.

Of course when we talk about this particular item we're talking in terms of very nominal contributions , and members opposite of course got into a long detailed argument about rights. Well my first point is that members of unions have a right in free and open discuss ion to dec ide whether or not in fact they will affiliate. They also have a say in the question of whether or not in fact they will adopt a certain proc edure. That strikes me as being democra tic and open.

It certainly is not a financial burden and nobody raised that point, because the general contribu tion of members who are affiliated is five cents a month, 60 cents a year. So we didn't hear about the financial hardship because of course there are no financial hardships. The difference with the shareholders was not very clearly distinguished. I recall asking a question to the Honourable Mewoe1 for Fort Garry, and the question is what is the compari son with the corporation ?

It seems to me that the comparison is rather striking, namely that a person who is a shareholder in a corporation in effect does not know whether or not his corporation is donating money to a political party; doesn't know whether it's the , for example, Liberal or Conser vative Party since it apparently hardly ever if never is the New De mocratic Party; doesn't know the amount; and doesn't have a say into whether or not he feels a donation should be made to which party or anything else. He's simply kept in the dark.

I don't see any statements coming out from corporations informing their members that they have donated so much money to such and such a political party. I think the average shareholder simply has no knowledge whatsoever of whether his corporation, if he's fortunate enough to own a share, is giving money or not. :rvrn. BUD SHERMAN (Fort Garry): On a point of privilege, Mr. Speaker, perhaps I can be permitted to clarify my position on that question for the edifi cation of the honourable mem ber for Elm wood. :MR. DOE RN: Mr. Speaker, what is his point of privilege ? :rvrn.

SHERMAN: The privilege is that the point that I was attempting to make earlier in the debate has been referred to by the Member from Elm wood and the point that I was attempt ing to make is not clearly identified. :MR. DOERN: ... went on to talk about shareholders, I might read a sentence or two from his remarks of last Friday in which he attempted to deal with this.

He said , and I quote: "The First Minister has raised the question of shareholders and the fact that some of their financial contributions may perhaps go in directions over which they have no specific control , but at the same time it can be argued that as private citizens these shareholders can make contributions to any party or any organization of their choic e", and so on. And pres umably in

770 September 16, 19 69 (MR . DOERN cont'd) ..... a great many cases there are shareholders of enterprises in which they are particularly interested, they have some knowledge of the role that those partic ular corporations play in the community and of the directions of the influences that those corporations may bring to bear. So they're not altogether unaware of the position they're in or what they're doing when they invest in certain corporations. MR . SHER MAN: What's that got to do with the challenge to that statement? MR. DO ERN: This is what I'm attempting to explain.

I really don't understand the member's point because the question thrown to him by myself last day was that shareholders don't have any say in political contributions. And the honourable member gave us this answer, which is all I could determine from his remarks, that people know the direction, they have some knowledge of the role of the corporations and the directions of influence that these corpor ations take. I don't know how they know this.

I mean, I don't know whether that means that one can assume that these corporations will back one of the old-line political parties or whether that means that they know somehow by their friends in the corporation that this corporation X. which they own one share in, or a couple of thousand, that that corporation in fact backs for example the Conservatives , or it -backs the Liberals or how much it backs. I don't know how anybody ever found that out because 1' ve never heard that. It seems to me this is kept very quiet, and I defy the honourable member to give me an illustra tion.

I would appreciate , in fact, someone on the side opposite to bolster this point by taking a well-known corporation and telling us which political party they back and to what extent, because it seems to me that is the only way in which the member could plug in his point. Otherwise, he's simply saying, well people they have an impression that they're backing a party; they have an impression as to how much it contributes to the party. I don't see how anyone could possi bly deduce that.

Intui tively you might guess, but I have never heard of anyone determining to any exact exten t how their corporation donates funds, unless they're on the Board of Di re ctors or unless they have some inside dope. They certainly don't do it by buying a block of a hundred shares and then somehow or other the message filters down to them. And if that is so, they certainly don't have any influence on that decision. They may be a party to the fact that their corporation donates money to a certain political party but they sure don't have any influence in that regard. MR. SHER MAN: ..• the honourable member, Mr.

Speaker, defying me to answer the question, because I take it the Honourable Attorney-General doesn't wish me to answer the question. MR. SPEAKER: Order. I do not believe that an irresistible urge to enter into debate is a point of privilege. Would the honourable member please continue. MR. DO ERN: So I think that's the fundamental distinction between the two si des, so to speak; on one hand, trade unions that contribute to political parties and shareholders that con tribute in a sense of corporations. The member of a trade union can participate in the decision of whether or not to join a political party.

The member of a corporation, an ordinary share holder of a large corporation, has no say whatsoever; is not informed as to how that corpora tion is operating in regard to political parties. He has no say whatsoever.

That, to me, is a very fundamental distinction and of -- (Interjection) -- Well, I would be interested to have one of the members opposite explain how that is so. -- (Interjection) -- Well perhaps the member could speak later on again, I'd appreciate that. -- (Interjection) -- Well perhaps you could put the word in somebody's ear. -- (Interjection) -- Well perhaps you can do that later on in a disguised form, in the same disguised manner in which corporations donate to political parties. Mr.

Speaker, the only value that I could see of the speeches and the resolution made by members opposite is that in effect it told us something about them because I don't feel there was any particular value in this resolution, and I myself can only describe it and can only describe the attitude taken by members opposite as being an anti-labour attitude. MR. CRAIK: Would the honourable member permit two questions ? MR. DO ERN: When I'm finished I will, yes. As far as I'm concerned, Mr.

Speaker, that is the only value, that it shows the attitude of certain people towards trade unions , not in a direct attack but in an attack on what they consider to be an injustice as a method of perhaps attacking the rights and the privileges whi ch were won over a long period of time by the move ment and democratically administered. The approach of the members opposite , and in particular the member who introduced the resoluti on, is identical, or at least strikes me as being identical to that taken by the Social Credit Government in Briti sh Columbia in its attitude

September 16, 1969 771 (MR . DOERN cont'd) ..... towards trade unions. --(Interje ction) --The Social Credit Party won the election and that is of no comfort to any member of this Chamber other than my friend from Rhineland.

The other poi.'lt that I would like to deal with is this question of opting-out because this is the key to this resolution, namely that the Member for Riel tells us that his prime concern is the fact that members who are involved in a union which decides to join a party and decides to follow the everybody in except those who opt-out procedure, he tells us this is what basic ally concerns him -that one particular point. And I say to that member, I say to that member that let us look at some of the illustrations. I say that this is an example that is followed by numerous organ izations.

The member calls this I suppose coercion , and I would say that the reason it is followed is that certain organizations find it advantageous to follow this practice. Let me illustrate that. Didn't your government, when it put in a medicare plan, have all the doctors in to begin with and then allowed those who wished to opt-out to opt-out. In other words , the procedure was exactly the same, everybody's in unle ss you opt-out. Take, for example , an organization that many of us I suppose belong to, the Book of the Month Club. If you belong to that club you get your book every month unless you send in your slip.

In other words, unless you opt-out for that particular month. And

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Collection	Manitoba — Debates (Hansard)
Citation	29-1-34
Type	hansard
Volume / chapter	29th 1st hansardpdf 34.pdf
Language	en
Format	pdf
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Identifier	81b71e148ad2364d7981be5a0516d88f316c35bf

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